8.2. Organizationwide Performance Improvement

Our critique of the four attempted performance improvement programs underscores our belief that any effort that does not address all Three Levels of Performance is liable to produce only piecemeal results. If the president of ABC Electronics were to follow the Three Levels approach, he would take nine steps, which mirror the Nine Performance Variables discussed in Chapters Three through Six:

Organization Level

  1. Goals: Develop a set of companywide customer-driven performance improvement goals linked to the competitive advantages and/or gaps outlined in the company strategy.

  2. Design: Design an organization in which functional customer-supplier relationships support the strategy.

  3. Management: Allocate resources ...

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