Optimization vs. Local Suboptimization

Helmut Jilling

Auditor / Consultant
In the meantime, Japanese competitors are eating their lunch by producing better products and providing better service. I worked with the auto industry and Dr. Deming in the early to mid 1980s and watched them improve from 3 sigma to 4 in a very short time, which returned them to profitability. Then they declared victory and progress slowed to a crawl, then stopped completely. Very frustrating! What is it that creates such blind spots as bean-counter management? I suspect it's our business schools, but I have no data to support this suspicion.

Lack of Leadership.

Unwillingness to take risks.

Trying to blame everyone else, no themselves.

Trying to save their way out of this morass.

Taking 25 years too long before they began to actually listen to their customers...
 
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