THE PERILS OF EXCELLENCE: BARRIERS TO EFFECTIVE PROCESS IMPROVEMENT IN PRODUCT-DRIVEN FIRMS

Several authors have suggested that a focus on manufacturing capability and on continued process improvement may be a powerful source of competitive advantage, yet many firms appear to have encountered great difficulties in taking advantage of this insight. This paper reports on the results of five these conducted under the auspices of the MIT Leaders for Manufacturing program at the Microwave Technology Division of the Hewlett-Packard Company. We found considerable evidence that the marginal returns to process development within the division were probably considerably higher than the division's cost of capital, suggesting that process improvement probably was underfunded despite the fact that improving manufacturing capability had been identified as a key strategic priority. We found no evidence that this “underfunding” reflected either a failure to recognize the problem or an overly hierarchical or rigid organization. Rather it appeared to flow from the historical strengths of the division. A devotion to leading-edge technical solutions and to immediate customer service at almost any price had created barriers to the effective funding of process improvement that were deeply rooted in the organizational structures, information systems, and formal and informal incentive structures that had evolved to support the division's historical emphasis on excellence on product design. Our results highlight the problems that very successful product-driven companies may encounter in attempting to make continual process improvement central to their strategic mission.     

The Power of Demonstrations

People take to the streets for several reasons. Advancing their demands to the authorities is an obvious one. Establishing communication channels among participants and thus helping to buttress a collective identity is another, latent one. Both combined express the power of protest. In what follows, I focus on the group-integrative function of protest. First, I conceptualize the notion of ritual and import it to the field of collective action. Then, I illustrate my argument by analyzing the extraordinary level of protest in the Basque Country. Mass protest rituals performed by a radical nationalist actor allow its participants to visualize themselves in movement and thus create and reinforce enduring bonds of solidarity. Occasionally, the argument about the relevance of a ritualized physical gathering might be extended to other revolutionary movements which push and threaten to transcend the limits of the system, be it because they substantially alter its morphology, because they challenge its foundational values, or both. Owing to the generalized disapproval these groups engender in wider society, revolutionary movements are in greater need of preserving group boundaries. Protest rituals are an important, sometimes essential, way of accomplishing such a task.