Excellence Approach

Introduction

Proposed by Thomas J. Peters, and R.H. Watermans Jr. in 1982 .

Book called In Search of Excellence ; Lessons from America’s

best -run companies.

Formulated Eight attributes of excellence post researching about

the most successful companies in USA.

Framework: The starting analysis model or framework used by Peters

and Waterman was McKINSEY’s 7-S.

The models comprised the following seven success criteria for excellence:

1. Structure

2. Strategy.

3. Systems

4. Shared Values

5. Skills

6. Staff

7. Style.

1. A bias for action

A preference for doing something or anything rather than

sending a question through cycles and cycles of analyses and

committee reports.

Company gets things done; increases knowledge, interest, and

commitments.

2. Staying close to the customer

Learning the customer’s preferences and catering to them.

Customer satisfaction is very important throughout the roles

that the business plays.

3. Autonomy and entrepreneurship

Allowed employees a high degree of autonomy by breaking the

corporation into small companies there by encouraging them to

think independently and competitively.

Fostered the Entrepreneurial Spirit in Employees.

4. Productivity through people

Creating in all employees the awareness that their best efforts

are essential and that they will share in the rewards of the

company’s success.

Everyone is respectful and enthusiastic towards each other.

This creates an atmosphere that enables good work.

5. Hands-on, Value-Driven

Company philosophy and values are discussed openly.

Leaders in the organization are also positive role models.

Managers actively involved in solving problems at all levels.

6. Stick to the knitting

Remaining with the business the company knows best.

Insisting that executives keep in touch with the firm’s essential

business.

7. Simple form, lean staff

Few administrative layers

Few people at the upper levels.

Minimal number of people in Staff Support activities.

8. Simultaneous Loose-Tight Properties:

A ideal blend of,

Tight and Centralized controls for protecting the Company’s

core values.

Loose control in other areas to encourage risk-taking and

innovation.

Several of the companies selected by Peters

and Waterman grew spectacularly

Some of them,

• Wal-Mart from 259 to 1

• Merck from 220 to 23

• McDonalds from 263 to 128

Conclusions:

The excellent companies were, above all, brilliant on the

basics.

Tools didn’t substitute for thinking…….Rather, these

companies worked hard to keep things simple in a complex

world.

They persisted and insisted on top quality.

They pleased their customers.

They listened to their employees and encouraged innovation.

Peters said in his 2001 interview that were he to write In

Search of Excellence today, he would not tamper with any of

the eight themes, but he would add to them: capabilities

concerning ideas, liberation, and speed

References: In search of Excellence :Lessons from America’s Best-

Run Companies : Thomas J. Peters, Robert H. Waterman

(1982)

Organization Theory : Structure Design and

Applications 3rd Edition (1990)

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