Projects and Processes for Sustainable Organizational Growth

摘要

IntroductionrnUnder pressure to improve productivity, quality, and speed, managers across many industries have embraced tools such as TQM, lean manufacturing, Six Sigma, benchmarking, and reen-gineering. Dramatic operational improvements have resulted, but rarely have these gains translated into sustainable profitability and growth. Gradually, these tools have taken the place of strategy at the firm level leaving behind significant gaps in seeding for the future survival of the firm. For example, at 3M under the tutelage of CEO James McNerney, an unrelenting emphasis on process improvements and cost reductions has resulted in a loss of its traditional edge in innovation. Before joining 3M, McNerney worked at GE, where Six Sigma thinking pervades the organization as the strategic mantra for profit generation. An excessive focus on processes can lead to destructive competitive battles and an erosion of firm profitability. As managers push to improve on all fronts, they move further away from viable competitive positions and future business opportunities. We argue that operational effectiveness as reflected in efficient business processes, although necessary to superior performance, is not sufficient for sustainable growth of the firm. The processes realm is only half the story that must be told to understand sustainable, profitable growth. The other half lies in the projects realm.