||Insourcing Innovation -- Total Performance Excellence
The Grand Unification of Business
Shown in Figure 20-2, We propose an integrated performance excellence model that progresses in a lockstep, as the outputs of one piece become the inputs for the next, driven by change-oriented strategic and operational leadership. The model itself is really no more than a conceptual toolbox within which to organize the various management methods and initiatives. A tool’s a tool’s a tool, which is why the real value of any tool is in combining it with other tools to construct something of value. Like the human body, and like a product, no one part can work to its potential if the other parts aren’t working to theirs.
With all the elements of the TPE working in coordinated rhythm, an organization can advance its current and future products, processes, transactions, and services in a way that increases the probability of greater long-term profitability and financial growth.
||When you look at the Total Performance Excellence (TPE) model, it should be clear that an organization can populate the main buckets of its toolbox with any number of approaches and methodologies, as per the proliferation of choices, most commoditized, that we’ve already discussed. We prefer the ones we’ve shown in the model, because we consider those to have achieved world-class status after so many decades of validation. We also believe that the domains of Strategy and Innovation have a lot to learn from the domain of Improvement, particularly when it comes to making strategy and innovation more methodological, deployable, measurable, predictable, and controllable.
The big deal is in tying all the proven elements of performance success into a coherent system in which all resources and tools are brought to bear on the continuous lifecycle of business evolution.
Therefore, if performance excellence is a function of incremental improvement and breakthrough innovation guided by world-class strategic leadership, what conceptual framework enables us to make this claim? If the TPE model gives us the general progression of approaches and methodologies, what is the general progression of thought that underlies it? As we’ve been saying all along, in many ways the discipline with which we create and deliver products and services has something to say about the discipline with which we manage our organizations, and so, to answer this question, we turn to MIT professor Dr. Nam Suh, who developed the field of Axiomatic Design.
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