Monday, October 5, 2009

cant copy everything

Found this example quite interesting.. Thats why a synergy between all aspects of a firm is important..

An example of those dangers is the adoption by the Detroit auto companies some years ago of the "quality circles" used by Japanese auto companies to increase productivity by encouraging their workers to suggest productivity-enhancing innovations. The quality circles failed in Detroit because the auto companies did not realize that what made the quality circles work in Japan was the practice of lifetime employment; our workers were reluctant to suggest productivity improvements because they knew it might well result in a smaller workforce and therefore in layoffs.

Many airlines tried to copy South Western and failed miserably. Its not only low price offering but making sure that operations including management are synchronised with low cost principle.. Ryan Airlines entrepreneur and CEO show a similar approach where he runs a tight ship for upper management too. Post-it notes and highlighters are banned. Executives bring in their own pen. The CEO himself travels Ryanair and doesnt use even the omnipresent blackberry for businessman. The concept and thinking is synchronised to create a concept and core competency. This is the most difficult to be copied since it is created from organizational interactions and an organizational thinking.

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