Looking Below Generalization… into the World of Kaizen
In explaining “generalization,” Wikipedia says it is the formulation of general concepts from specific instances by abstracting common properties. A caution is appended: the process of verification is necessary to determine whether a generalization holds true for any given situation.
But how does this apply to business, you ask? Answer: in every way. We generalize, for example, that a boiler generates steam, that an MIS system facilitates management transactions, and that a gate is needed to manage incoming and exiting people and goods. I think you get the picture. I can add that stereotypes are also a kind of generalization, such as the belief that women nowadays are better workers than men, or that in programming, men outperform women.
The truth is that you cannot operate a business around generalizations. To extend the boiler example, the system includes the burner, the combustion chamber, plumbing, and the heat exchanger. There are pressure gauges, pressure release valves, a water drum, stays, an economizer head… the list goes on. For a boiler system to function properly, the details around the procurement, installation, and maintenance of each of its components must be attended to.
So my pitch this week for entrepreneurs is that you must continuously attend to the details that make up your business – with a focus on identifying and executing potential improvements. At commencement, a lot of focus will be required around the setup and installation. Much of what gets installed, be it software, a boiler, or recruits, will need “adjustments” or “improvements.” Keywords that feature during this phase include training, modifications, customization, and upgrades.
Once the business is running, as Japan taught the world, kaizen (continuous improvement) needs to set in. It has been reported that in the making of the now-famous Toyota luxury car, Lexus, an incredible 450 running prototypes were built (by 60 designers, 24 engineering teams, 1,400 engineers, and 2,300 technicians), each time benchmarking the model’s performance against the competition that Toyota wanted to beat: Mercedes, BMW, and other luxury vehicles.
Shoji Jimbo and Ichiro Suzuki (the project’s leaders) depended on scientific research, visits to channel partners, focus groups in the USA (the key target market), and reviews of the lifestyle patterns of potential customers. Detailed focus.
Now taught as a management concept, kaizen, as demonstrated in Toyota’s Lexus case, refers to continuous, detailed reviews resulting in action points for the improvement of each production function and employee in a given organization — from ordering to sales channels; from the CEO down to the messenger.
Thus, when you start examining the details around a generalization (Toyota manufactures the Lexus, a luxury car), you quickly discover that the “generalization” is just that — a high-level picture that very poorly glosses over a lot of critical detail.
Your business may not be in the Toyota league. It does not matter. To win in your market segment, you will still need to continuously pay detailed attention to the improvement of all the components of your small-league operation. Returning to the boiler example, the flow of your steam may be improved, a faulty gauge repaired, pressure extended, etc.
According to the U.S. Department of Energy (DOE), conducting a steam system assessment will result in an action list that, when implemented, can realize 10 to 15 percent cost savings per year. That list will comprise efficiency-facilitating tweaks, upgrades, retrofits, etc., with the end game having a substantial impact on your profit and loss statement.
Without this detailed focus and continuous improvement, you will end up with a business that truly fits the Kenyan description of jua kali (open-shed, informally managed setup).
Photo by Rob Lambert on Unsplash
Haron Wachira 