Our purpose is to improve the quality of service for customers.
Quite simply, our goal is to delight customers. But Goldratt said
'the goal of every company is to make money'. Making money is
mandatory but fixation on profit and obsession with costs is a sure
way to become detached from customers. Our goal is not do delight
shareholders. Delighted customers become loyal customers and loyal
customers provide repeat business. They even do marketing for us.
They tell their friends and family who then give us their business
and they’re delighted so they tell their friends and family.
Making money is a consequence of delighted customers!
There are lots of people who can be considered customers and they
have different needs so satisfying them all is difficult. Lets not
get hung up on the definition of the word customer. Just think of
these people as deriving some form of value from what we deliver.
So our deliveries must somehow balance their needs. This
isn’t easy but we have a chance when they share a vision,
have common goals and are able to provide consensus on priorities.
There aren't many delighted customers out there!
But we know this. And yet, change is all the rage. IT is awash
with improvements. It still doesn't feel like it's any easier to
get stuff done. Consider for a moment, all the things that, in your
experience, might be needed to get something out the door. There's
a lot of different things right?
Organizations are over-organized!
We get separated by specialty. These days it's common to have core
platforms and infrastructure with centralized teams providing
services like build, testing and release management. The problem
with centralization is that it comes at the cost of complexity
introducing dependencies, bottlenecks, waste, etc. It's difficult
to understand the big picture when all we see is part of the
product through a window in our silo. Living in a silo we just end
up chasing local targets creating local optimizations and not
really helping the product as a whole.
It's all too complicated!
Most changes we've observed organizations making attempt to tackle
symptoms. The underlying problems remain and consequently people go
back to how they were doing things before like zombies back to the
shopping mall. Dealing with complexity goes in the too hard box.
Complexity is not a setup for success.
The unspoken truth is that failing conventionally is the status
quo!
Thursday, 1 April 2010
Dealing with organizational complexity goes in the 'too hard' box
Posted by Simon Baker - Permalink