When Organizations usually measure their performance, they focus on how much they as a whole can deliver within a given time. They call this efficiency or productivity. In order to move forward as an organization, this assumes, that the product or service is the correct service for the correct market.
However, in the 21st century, understanding the correct service for the correct market is not that obvious anymore. In order to improve the effectiveness, diverse teams working self-organized towards the delivery of the service is more important. Teams need to understand, what the customer value is and own the value. This is what we call "Effectiveness".
In hierarchical systems, where we measure the performance towards a goal instead of trying to be better in what we deliver, teams and individuals usually do show less ownership. Inclusion into key decisions as well as transparency over the whole deliver process end-to-end is important in order to improve delivering the value the customer needs. Toyota developed in their framework a way of continuous improvement, which includes even the factory worker. Not only did Toyota become known for an increasing quality of their delivery, but also for their speed in this delivery.
Doing the right thing from the beginning will have impact on the speed of doing that right thing. Therefore, ownership, inclusion and transparency in the decision of deciding the right value is important. If you want to be faster in your delivery, do not try to just become faster, but focus on understanding how you can become more effective. Speed of value delivery should not be a goal. Ensuring, that you build the right thing should be - speed will be the consequence.
Consulting Services for Value Delivery
- July 8, 2020
- February 19, 2020