This question is for the gurus.What are the characteristics of a world class company? How does a company go about achieving this?

Interesting question.

You often see folks putting lofty statements in their Quality Policies saying something like “…to strive to be world class producers/hotels/manufacturers/etc. …” I wonder how many think about the question you are putting to this group before considering whether it belongs in ones statement or not?

I think the term is loosely used and thrown around too much. What makes one a world class sprinter or a world class automaker? Is this defined anywhere? What are the criteria? Or, is it a culmination of general opinion that decides whether Carl Johnson or Toyota are in fact world class?

Group?

Kevin

Our school district adopted a "mission statement" that says we will provide a "world class" education. When it was presented to the board, I asked what that was.....

Hi all,

Laura has a point... What is world class?

...and do we mean overall world class, or world class within a specific set of characteristics? (I can hardly imagine anyone being top dog in every field).

Besides, I don't think the term means that you have to be the best of the best. Being up there among the best should certainly be interpreted as world class.

/Claes

More random thoughts on world class:

I also agree -- world class is not necessarily the one best -- but among the best. If the fastest sprinter in the world runs a 4.12 second time, is the guy (or 4 guys) who runs 4.13 not also "world class"?

Who decides? It depends. Peers, fellow competitors, the marketplace/customers, independent monitoring organizations.

You have to carefully define the classification. The sprinter who is WC in the 50 meter dash is not necessarily WC in the 200 meter high hurdles.

Anyone feel free to shoot holes...

Have you tried benchmarking against baldrige and the like?

Ah ha - now you have it. Benchmark. But the only benchmark we seem to care about is within NY state. If we can't benchmark against "the world" then we shouldn't have it as an objective, right?

World class "sounds good" and I suppose in industry benchmarks may be easier to come by than what I'm talking about, but I still say you have to know if you've made it.

FYI - I'm not as negative about it as I sound. I'm trying to use my quality education on my unpaid School Board role to help educate, and make sure that when we say we are "data driven" that we actually are. We are embarking on the most formalized strategic planning process the district has ever had, and my push is the measurements so we measure ourselves and our strategic plan to self-imposed criteria that doesn't lose site of the State imposed criteria. "Say what you do, do what you say, and provide the records and results to prove it."

Laura said:
"Ah ha - now you have it. Benchmark. But the only benchmark we seem to care about is within NY state. "


What are you on about?

To be world class places a business in the same league as the Walmarts, Boeings, Virgin companies, ABB Vetco Grey's, Bank of Tokyo's, Toyota's, Microsoft's, and other institutions like them.

Andrews said:

This question is for the gurus.What are the characteristics of a world class company? How does a company go about achieving this?

Not much time to chat, but let’s see how I do. In my unadulterated, crass, but common sense opinion (sorry I had to throw that in again), World Class is simply another ersatz buzz-word that looks great on letterhead and on banners throughout the plant, but is absolutely, positively incongruous. If anything, it is a contributing factor to poor quality, for, like top mgmt, it’s only lip service. Poof! Where’s the Quality? The banner has it. Yet, with the rapidly accelerating decline in Quality, due to an Earth full of these ill fated, dim-witted and coy managers, if one were to actually define World Class objectives based upon today’s “standards”, it wouldn’t be too grueling to achieve. Remember, I have a certificate in my lobby that says I am good. Fore !!!! Buh, bye now.
:thedeal:

noboxwine said:

Not much time to chat, but let’s see how I do. In my unadulterated, crass, but common sense opinion (sorry I had to throw that in again), World Class is simply another ersatz buzz-word that looks great on letterhead and on banners throughout the plant, but is absolutely, positively incongruous. If anything, it is a contributing factor to poor quality, for, like top mgmt, it’s only lip service. Poof! Where’s the Quality? The banner has it. Yet, with the rapidly accelerating decline in Quality, due to an Earth full of these ill fated, dim-witted and coy managers, if one were to actually define World Class objectives based upon today’s “standards”, it wouldn’t be too grueling to achieve. Remember, I have a certificate in my lobby that says I am good. Fore !!!! Buh, bye now.
:thedeal:

I'm with you!:bigwave: We can call ourselves anything we want. Prove otherwise. :rolleyes: :ko: :smokin:

A company that provides VALUE to all stakeholders.

Randy said:

To be world class places a business in the same league as the Walmarts, Boeings, Virgin companies, ABB Vetco Grey's, Bank of Tokyo's, Toyota's, Microsoft's, and other institutions like them.

Interesting that they are all so large.... Does a take a multinational to attain world class? Or do they become biggies because they are..? Doh. Better stop there...:bonk:

/Claes

David Mullins said:

Laura said:
"Ah ha - now you have it. Benchmark. But the only benchmark we seem to care about is within NY state. "


What are you on about?
:bonk:

Back to my prior post about my school district saying 'we provide a "world class" education' - but here in NY the only benchmarks we use are NY state comparisons. My point was if we are measuring ourselves against other NY state districts, then we shouldn't call our selves "world class." Like I mentioned later - in business it may be easier to benchmark against the world - and a business may actually be able to claim that they are "world class."

In reply to the list Randy gave. They are all good companies and have a good bottom line but are they really world class? I would venture to say not. Take for example Wal-Mart, see how they treat their suppliers and people. Toyota, another example, we have a plant in our area and many go other places to work because of the way they treat people. I think that the smaller companies are a lot closer to world class than the larger. Many times the true test of a world class company comes with hard times. What do you think?

I don't think size is really relevent...look at the UK. The UK doesn't really amount to much when it comes to population, square miles, or or maybe even GNP, but it is most definitely a "World Class" nation. I think world class is a standard applied to/by entities to compare themselves on a global scale with other comparable entities.

Randy said:

I don't think size is really relevent...

The UK doesn't really amount to much when it comes to population, square miles, or or maybe even GNP, but it is most definitely a "World Class" nation.

Randy,
Firstly, is this a line you use often?

Secondly, the UK world class? You haven't seen them play cricket, have you!


Jim,
The adoption, or not, of any model for running an organisation, doesn't weigh into the world class debate, but I haven't seen a company yet that can't still improve.

Skullsike,
30 years ago Toyota was 3rd world class.
15 Years ago Korea was 3rd world class, now we're driving their cars.
Today's 3rd world class countries may well lead the way 15 years from now. WHY?

Probably because they had a sound strategic plan that was regularly revisited, measured their results, evbaluated the results against others, modified/created new strategies, used innovation, created learning work environments, learned from the best and made it better or cheaper, stole IP, co-erced other companies employees, paid off politicians, tricked auditors.....

Jim

I would suggest that world class companies do not comply with standards or models, they create them !

Ah ha - now you have it. Benchmark. But the only benchmark we seem to care about is within NY state
My guess is then you are only 'state class', at best! :biglaugh:

To me 'world class' means you are the one the world looks up to. You do not benchmark, you are benchmarked. The Toyota Production System is the model that lean manufacturing is based on. This, I think makes Toyota ‘world class’ in lean manufacturing. When we look to ‘world class’ organizations, they usually stand out in one or two areas. Toyota may be best is class in lean, but may be a cellar dweller in the area of lapsoidal differentiation (words I made up as to not offend anyone). Rarely do I see ‘world class’ organizations being world class in all areas.

I think db found the phrasing I was searching for. Being world class has to have some defined parameters. In retailing Walmart is at the top, in beer drinking the Aussies set the standard:vfunny:

Toyota, another example, we have a plant in our area and many go other places to work because of the way they treat people.
I find this interesting. Were these salary personnel or hourly? I know Toyota will interview 3000 people and hire only 150 because they are looking for the best. If it was salary people it is easier to understand, they expect a lot from you. Overall surveys score Toyota among the top in employee satisfaction. It is different working for a company owned by a different culture, but I have never heard of Toyota treating their employees bad.

I recently went to a conference with Ford where one of the speakers was an ex-Toyota employee. When asked why he left the company he stated that working for Ford was a holiday compared to the work standard required of him at Toyota.

I can't see how you can have a "World Class" company without "World Class" employees.

I also found it interesting too since in the Georgetown plant they supposedly have a sign that says something to the effect our employees are number1 and customers are number 2. The supposed reason behind this is if the employees are not 1st the customers will never be first. Makes sense to me. They were hourly. From my understanding they had a big turn over when they first started and have abandoned some of their reqirements. They had all kinds of tests,imterviews, days of work,etc. We had a guy from my old plant that was hired salary and went to Japan for training. His comment was that if they try to work people the way they do in Japan they will have a hard time keeping people. Also know another salaried individual that is salary that took a pay cut to go there and said that if not for the training they provide he would go back to his old job. I guess the grass may be greener, but you still have to mow it and more often.

Knowing you Jim, you've known this information for some time. You have probably been fully enjoying us struggling with the issue while you had the answer! Shame on you!

But, now that you revealed the true answer, then I guess we all need to change our registrar!

noboxwine said:

Not much time to chat, but let’s see how I do. In my unadulterated, crass, but common sense opinion (sorry I had to throw that in again), World Class is simply another ersatz buzz-word that looks great on letterhead and on banners throughout the plant, but is absolutely, positively incongruous. If anything, it is a contributing factor to poor quality, for, like top mgmt, it’s only lip service. Poof! Where’s the Quality? The banner has it. Yet, with the rapidly accelerating decline in Quality, due to an Earth full of these ill fated, dim-witted and coy managers, if one were to actually define World Class objectives based upon today’s “standards”, it wouldn’t be too grueling to achieve. Remember, I have a certificate in my lobby that says I am good. Fore !!!! Buh, bye now.
:thedeal:

I thought I would regurgitate this previous post. I totally agree and say that you can call yourself anything you want. Disprove it!
:rolleyes: :ko: :smokin:

For me, there are two concepts:

there's "Best in class", which would apply to Walmart, Toyota, McDonald's, Microsoft, etc. -- namely, the company that others in their field (try to) emulate or surpass. We might not always agree with their strategy (or even appreciate their product), but somehow they always come out on top.

Then there's "World Class" which has the unspoken connotation of "some day we hope to be mentioned in the same paragraph as the best in class" or thereabouts. I have never met a true World Class company that had to put these words into their mission statement, only the wannabes.

Just my .02€ on a slow day.

Bruce

Good Day,

I have just queried 1035 engineers and quality people on the IPC TechNet regarding the "achievement" of "World Class" 'Anything.'

The term came across regarding some production output discussions. (very exciting stuff...) and I though I'd see what they had to say.

So, Maybe we'll get some insight from "The other side."

I'll keep you informed.


Steve

Attached is a great "pdf" file of WCM.

Wow.

That Pdf had me going. I saw the cover page, and then the next page was blank. I was LMAO. (Seemed strikingly appropriate--but then page 3 had an index, not as funny as blank pages) I'm reading it now, an its still mildly humerous, if not diligent.


As far as the Technical community I queried, they had nothing new to add to what you have all already surmised. Let me paraphrase.

"World Class is anything you want it to be. You can produce "World Class" good stuff as well as "World Class" garbage.

Having contributed nothing new (again) I will return to the comfort of my paperwork. (The CA's keep me worm in World Class Fashion.)

Good day.

Steve.

I'm reading, still.

Humorous is the wrong word. (That was actually rude, and I apologize.) It's a useful reference. I know some folks who will love to see this, thank you.


Steve

Probably because they had a sound strategic plan that was regularly revisited, measured their results, evaluated the results against others, modified/created new strategies, used innovation, created learning work environments, learned from the best and made it better or cheaper, .....


To me 'world class' means you are the one the world looks up to. You do not benchmark, you are benchmarked. .....

and -ve attributes

stole IP, co-erced other companies employees, paid off politicians, tricked auditors..... WHICH DO NOT MAKE WORLD CLASS?

But, the sure ingredients.....
PLANING, MONITORING & MEASUREMENT, CONTINUAL EVALUATION ( revisiting plans) INNOVATION, LEARNING ORGANISATION, CUSTOMER FOCUS. Is the recipe perfect?

Let's gather all the attributes!

pthareja

Blast from the Past - Current opinions?

What is a 'World Class Company'?
What is your definition of 'World Class Company'?

Was 'World Class Company' a 'Buzz Word'?
Is 'World Class Company' still a significant buzz word?

Blast from the Past - Current opinions?

What is a 'World Class Company'?
What is your definition of 'World Class Company'?

Was 'World Class Company' a 'Buzz Word'?
Is 'World Class Company' still a significant buzz word?


There are some companies, sports teams, individuals, who simply perform and execute in a consistently better manner than most of their peers. We call them "World Class." But, the bar keeps going higher, so even they have to continue to sharpen and improve their performance.

I think 'world class' is a term losely used by business or economics writers to describe or differentiate companies that 'score' well in magazines such as Forture's 500 list and other related surveys.

It is a 'buzz' word used during the Michael Porter era. Like all terms coined by famous thinkers or authors they will gradually be replaced by some other 'flavour of the month'. Globalization and 'seamless world' are two such words which itself are on the way out.

What is the current 'flavour' ???.

I think 'world class' is a term losely used by business or economics writers to describe or differentiate companies that 'score' well in magazines such as Forture's 500 list and other related surveys.

It is a 'buzz' word used during the Michael Porter era. Like all terms coined by famous thinkers or authors they will gradually be replaced by some other 'flavour of the month'. Globalization and 'seamless world' are two such words which itself are on the way out.

What is the current 'flavour' ???.

When the term first started being used I believed it was the ability to compete with any world wide companies in terms of quality, cost and delivery.
The world wide market was achieveable because you had attained a level of excellance that allowed you to compete beyond the US markets.
Now I agree with Harry..what is the next buzz word? There have been a lot over the past 40 years and basically were rehashes of old, or rediscovered methods. Depends on how you spin the words.

My company is world class because we say so in our mission statement.

seriously though, I have used "World Class" to further my own agenda in a couple of places... "If you really want to be World Class, we should do this, and this, and this."
It's a great button to push with some executives.

but it all comes down to buzz phrase.

At a conference a several years back, I heard a speaker remark that a company is either "world-class" or "half-@ss". He also went on to state that the company needs to determine in which sandbox it wants to play.

Wayne

This question is for the gurus.What are the characteristics of a world class company? How does a company go about achieving this?


Malcom Baldrige award would be the place to start.


Coury Ferguson

Has it made the news on CNN or Fox?

Has any of the leadership been arrested?

Malcom Baldrige award would be the place to start.
Yeah - I know there are some 'basics' like the Malcom Baldrige award and the EFQM, to name two. But put into your own words, what is a World Class Company? What aspects would you cite?

When ever I hear 'World Class Company' I cringe because it seems so vague to me. I guess I'm one who sees World Class Company as a 'buzz word'.

Yeah - I know there are some 'basics' like the Malcom Baldrige award and the EFQM, to name two. But put into your own words, what is a World Class Company? What aspects would you cite?In my opinion, a "world class organization" perpetually drives dysfunction out of their processes.

Blast from the Past - Current opinions?

What is a 'World Class Company'?
What is your definition of 'World Class Company'?

Was 'World Class Company' a 'Buzz Word'?
Is 'World Class Company' still a significant buzz word?

Four years ago one of the big 4 (recreational industry) was demanding all its suppliers to become ISO certified within x amount of years. They came in a audited us about a month after they made the announcement; we had 7 minors and 2 majors :) . As we were working to correct these findings we had a visit from the president of one of our major suppliers (who is a giant in their industry) and was telling the him of our need to become ISO certified or else...... Heres what he said:

"You are the leader in your industry, you set the standards that everyone else follows". He went on to say "tell them your not going to get certified and see what they do, they won't go to your competitors because they know they can't deliver on time and their product is junk".

Love that story!

...we had a visit from the president of one of our major suppliers (who is a giant in their industry) and was telling the him of our need to become ISO certified or else...... Heres what he said:

"You are the leader in your industry, you set the standards that everyone else follows". He went on to say "tell them your not going to get certified and see what they do, they won't go to your competitors because they know they can't deliver on time and their product is junk".

Love that story!


Great story, and it is always nice when an outside expert says nice things about us. However, it is quite possible that a robust "world class" ISO system would have increased your lead in the industry.

Being the leader does not necessarily make you world class. At one time GM was the leader as well. But, because they did not strive to be excellent (world class) they lost their top position and now are running to catch up. It did not take many years either.

Another example was Maytag went from excellent to poor quality in about 10-15 years...

In my opinion, a "world class organization" perpetually drives dysfunction out of their processes.


nice way to put it!

I did some googling on ‘world class manufacturing’ and found 69.5 million threads. I found this:

Book Reviews: World Class Manufacturing Casebook: Implementing JIT and TQC by Richard Schonberger

Schonberger is often credited as originator of the phrase “World Class Manufacturing”. Since the early 1980’s he has been publicly beating the Just-In-Time drum. Although the popularity of JIT in general and Kanban systems in particular has waxed and waned over the years (remember Quality Circles?), the basic concepts are here to stay:

Inventory hides problems and increases costs.

Cutting inventory forces you to solve these problems.

A ruthless depletion of inventory logically leads to a manufacturing line with closely coupled stations, where each station begins work only when the downstream station requires it. Thus inventory is pulled through the line rather than pushed through it.....

Most of the sites were set up by various consultants and looking at their training calendars, it is apparent that training had been dwindling since 2004. I think this is the reason why we are hearing less of this term today.

In my opinion, a "world class organization" perpetually drives dysfunction out of their processes.

I appreciate Sidney to have defined in terms of dysfunction; though dysfunction if taken as a defect will never converge to world class Quality. If Dysfunction is taken as a process, the tenets of world class are likely to be present.

In my article published in FOUNDRY (July-Aug 2006), I defined aWorld class foundry as:

ATypical Definition
"A World Class Foundry (WCF) is one which integrates the latest-gen machinery with (process/ work) systems to facilitate business development governed around cast products only, duly based over a high accent on Product Substitution or New Product Development."
For I believe that the industry must pride in one's vocation, and support the processes to excellence in product development, Quality, Safety, Environment and productivity improvement, and cost reduction.

The paper also carried a nine point questionaire and I shall be glad to share a copy.

Thareja

Funny, this subject comes up quite a bit at the "mom&pop" shops during ISO assessments; sometimes the karma is positive and sometimes negative....

Positive: "Oh, wise auditor, you see much. Please enlighten us as to how we can improve and make our customers happier!"

Negative: "Did we pass? Good, send the NC's to the management rep and don't let the 'door hit ya where the dog bit ya! You've audited us, we make (1,000/10,000/1,000,000) (screws/parts/fasteners) a (day/month/year) and we've never had a (complaint/return/dissatisfied) customer!"

Generally I'm not a big time fan of referencing "Gurus," (Gees, Jack Welch and his girlfriend and their column in "Business Week:" GET A ROOM!!!), but I think "Good to Great" was great!

To me, in my 'not so humble opinion,' the GREAT companies I visit track down and kill every issue that leads to customer dissatisfaction. The good companies have a low rate of returns/PPM, but still accept it as a "cost of doing business."
"You know how it is, we can't be perfect!"

Well the GREAT companies know that too, but still want to get as close as possible!!

The Madfox
(Read Drucker...not the Quality Gurus!!!)

[QUOTE]
Funny, this subject comes up quite a bit...

To me, in my 'not so humble opinion,' the GREAT companies I visit track down and kill every issue that leads to customer dissatisfaction. The good companies have a low rate of returns/PPM, but still accept it as a "cost of doing business."
"You know how it is, we can't be perfect!"

Well the GREAT companies know that too, but still want to get as close as possible!!




Very well put!


(Read Drucker...not the Quality Gurus!!!)

Note: Drucker was a Quality Guru. Jack Welch, however, is not. A PR merchant, perhaps...

To me, in my 'not so humble opinion,' the GREAT companies I visit track down and kill every issue that leads to customer dissatisfaction. The good companies have a low rate of returns/PPM, but still accept it as a "cost of doing business."
"You know how it is, we can't be perfect!"

Well the GREAT companies know that too, but still want to get as close as possible!!

"World Class" is fuzzy and meaningless. It means "any company that I think is doing better than mine," but no one ever bothers with actually defining what "better" means, or providing any long-term data to support the idea. In reality, mistakes are inevitable, and always will be so long as humans are in control. To deny that fact isn't GREAT, it's delusional. You're proposing a false dilemma, namely that you can't simultaneously grant that mistakes are inevitable and do what you can to prevent them and make customers happy.

If you want to measure the "class" of a company, look at what happens when times are tough. Practically everyone will make money in a booming economy, but the best companies ride out the cyclical storms because they know that they're coming, sooner or later. How many Baldridge winners have gone belly-up, or have had serious problems staying afloat when the chips are down? How many have done mass fourth quarter layoffs in order to satisfy short-term expectations? How many of those have said, "Our people make the difference!"?


(Read Drucker...not the Quality Gurus!!!)

Leave us not forget that Drucker was the progenitor of MBO, and never disavowed it as far as I know. I think there's a lot to be learned from Drucker, but I also think that he set the tone for a lot of bad decisions, and much of what's wrong with American business may be traced back to his doorstep.

"World Class" is fuzzy and meaningless. It means "any company that I think is doing better than mine," but no one ever bothers with actually defining what "better" means, ....!
Fuzzy ? Yes but not meaning less. Infact imho "World Class" awaits to be defined properly. That is why this thread is alive since 9th Sept 2002: when Andrews raised “This question is for the gurus.What are the characteristics of a world class company? How does a company go about achieving this?

Over a popular saying we could extrapolate: 'a world class company is... who world class does..'. It is in the conduct and attitude of the organisation to conduct business in an ethical and society/ nature friendly manner such that no stakeholders are hurt, while the company churns out a product which is best in class, whom even the competitors envy (not jealously) Rightly so...


a “world class organization” perpetually drives dysfunction out of their processes.!
That is how a world class company draws the good will and blessings of society and the support of customers at large as Jim Wynne rightly says:
If you want to measure the "class" of a company, look at what happens when times are tough. the best companies ride out the cyclical storms... .

The proof of pudding is in the pie. Proof of a “world class organization” is in the sustainability. Sustain it will if the organisation remains at the forefront of technology to engage in Quality and class which is envied and benchmarked as a role model, while it continually superceedes operational efficiencies duly interfaced with strategic and tactical improvement actions.
Priyavrat Thareja