Value-Directed Management: Organizations, Customers, and Quality

Value-Directed Management: Organizations, Customers, and Quality

Value-Directed Management: Organizations, Customers, and Quality

Value-Directed Management: Organizations, Customers, and Quality

Synopsis

Arogyaswamy and Simmons combine the technique of value analysis and the concept of the value chain to build a perspective on value that is at once comprehensive and practical. They provide a methodology for formulating value-based strategy as well as a system for managing the value-directed organization. The management system proposed is based upon the high value Just-in-Time (JIT) and Total Quality Control (TQC) principles successfully deployed by numerous Japanese (and more recently American) firms. In a sense, this book brings together the American and Japanese streams of value creation. Essentially, the authors argue that accepting and, indeed, increasing inter-dependencies within activities (design, operations, marketing) is imperative in order not only to create value but also to build the value-creating organization. Effective integration among activities is the second key ingredient, while involvement by deemphasizing power-based relationships - by providing knowledge and information, as well as the,opportunity and the desire to use both - is the third requirement, and one that makes the process of value creation self-sustaining. The authors discuss the cultural traits most conducive to value enhancement and specifically tackle the ingraining process. The measurement of improvements both in value - as received and in the process of value delivery itself is extensively discussed. Numerous practical value indicators to assess progress in value creation are proposed. Being a judicious how-to, why-to amalgam, the book will appeal equally to executives and managers seeking to install value as a guide to action, as well as to graduate and advanced undergraduate students seeking therationale underlying value management.

Excerpt

If excellence, total quality, competitiveness, global strategy, and empowerment have been among the most popular buzz words of the eighties, what are the most likely buzz words of the nineties? We don't really care. What we do care about is the articulation of an approach for firms to achieve ever stronger market positions through an unquenchable thirst for improvement. Within these pages we present a management package tailored to do just that. All this probably sounds very familiar--as it should--since most firms obviously seek to be successful by stimulating high commitment among their employees. What may not sound very familiar is the route we employ to get there from here. the concept of value takes center stage in our presentation. It is the elixir that can bring a new vitality to the practice of management. Starting from Porter's concept of the value chain, we propose a simplified version of the chain to clearly illuminate the process of value creation in products and services. When coupled with our detailed analysis of important customer needs (the components of value, as we term them), what emerges is a potent technique for strategic management characterized by a constant striving to maximize value delivered to customers.

With continuous improvements in value as a launching pad, we shift gears to a how-to mode. We consider the concept of value in light of the actions and experiences of world-class business firms, particularly those of Japanese and American origin. Rather than provide our readers with a laboriously compiled list of practices successfully adopted by the giants of global competition, we have tried to distill the essence of value man-

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