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Harvard Business School 's Michael E. Porter's Theories of Competitive Advantage: It is hard to believe that prior to Porter's 1980 book, Competitive Strategy: Techniques for Analyzing Industries and Competitors,
very few organizations had a formal strategic planning department.
Today, they are commonplace. Conglomerates that encompass many diverse
businesses were becoming numerous in the 1960s when Porter introduced
his "four forces" approach for individual businesses to assess their
strengths and opportunities. His basic message was that strategy is
about making tough choices.
Total Quality Management from W. Edwards Deming, Joseph Juran and Phil Crosby: The
total quality management (TQM) and continuous quality improvement (CQI)
programs of the 1970s were a response to Japanese manufacturers
grabbing market share as they went from being viewed as makers of cheap
products to makers of high-quality ones. During the same time period,
Shigeo Shingo and Taiichi Ohno of Toyota Motors introduced "pull-based"
just in time (JIT) production systems that were counter to the
traditional, large batch-and-queue production management economic lot
size thinking. JIT provided faster throughput with less inventory. In
the 1990s, Mikel Harry of Motorola introduced a TQM refinement called
Six Sigma, which has merged recently with lean management techniques.
Michael Hammer's Business Process Reengineering: In
the early 1990s, Michael Hammer recognized the importance of focusing
on and satisfying customers. He observed that stovepiped, self-serving
organizational departments could not serve customers efficiently and
that the best way to improve service - particularly given the rapid
adoption of computers - was not to just modestly improve business
processes, but rather to radically reengineer processes through
redesign, as if starting with a clean sheet of paper.
Peppers and Rogers' Customer Relationship Management: In 1994, Martha Rogers and Don Peppers co-authored the book Customer Relationship Management - One-to-One Marketing,
which foreshadowed the eventual death of mass selling and faith-based,
spray-and-pray marketing. It described how computers could track the
characteristics and preferences of individual customers.
Peter Senghe and Organizational Learning: In the
1980s, professor Peter Senghe of MIT recognized that many industries
were becoming increasingly dependent on educated knowledge workers. His
subsequent research concluded that going forward, the rate of
organizational learning - not the amount but the rate - would be a
differentiator between successful and unsuccessful organizations.
Kaplan and Norton's Strategy Maps and Balanced Scorecard: In 1996, professors Robert S. Kaplan and David Norton published the first of four related books, The Balanced Scorecard.
They recognized that what caused executives to fail, and consequently
lose their jobs, was not poor strategy formulation, but rather the
inability to successfully implement strategy. They advocated for
executives to communicate their strategy to employees using visual maps
and to shift performance measures from month-end financial results to
nonfinancial operational measures that align work and priorities with
the strategy.
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