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"Good is the enemy of Great"

"Most businesses—like most of anything else in life—fall somewhere between mediocre and good. Few are great." Jim Collins, Good to Great: Why Some Companies Make the Leap and Others Don’t.

With the aim to help quality leaders sustain the commitment to continual improvement, I provided the following tables that incorporate the five-level capability concept for assessing and measuring the progress from mediocre to good and from good to great.

Capability Level

Level

Description

5

Great

4

Good

3

2

Mediocre

1

Poor

Level 5 Leader – Jim Collins

"Level 5 leaders channel their ego needs away from themselves and into the larger goal of building a great company. It’s not that Level 5 leaders have no ego or self-interest. Indeed, they are incredibly ambitious—but their ambition is first and foremost for the institution, not themselves." http://www.jimcollins.com/lab/level5/index.html

"Great leaders plot points" - tjc

Effective leaders have always pursued excellence and quality by applying their intuitive or unconscious knowledge of variation and its interrelationships with psychology (human behavior) and systems to influence and direct change.

While effective leaders have always had an intuitive understanding of variation, a conscious awareness and understanding provides the common understanding needed to expand application from the few to the many. The result will be more great leaders and organizations.

Capability -- Knowledge and Understanding of Variation

Level

Type of Capability

Description

5

Unconscious competence Knowledge continually applied in achieving and sustaining excellence.

4

Conscious competence New knowledge becomes a habit; routine way of thinking.

3

Conscious incompetence Making the transition from an intuitive awareness and understanding. Aware of the basics; have to work at it.

2

Unconscious incompetence. Unconscious (intuitive) awareness, understanding and application.

1

Don’t know, don’t care, ignorance is bliss Current knowledge and methods are good enough.

Self-Assessment – your knowledge and understanding of variation:
http://www.successthroughquality.com

Capability
Adult development stages in evolved societies

Orientation

Level 2

Individualist) (10%)

Level 3

Group Contributor (55%)

Level 4

Manager

(25%)

Level 5

Leader

(10%)

View of Others

Instruments of own need gratification Needed to contribute to own self image Collaborator, delegate, peer Contributors to own integrity and balance

Level of Self Insight

Low Moderate High Very High

Values

Law of Jungle Community Self-determined Humanity

Needs

Overriding all others’ needs Subordinate to community, work group Flowing from striving for integrity Viewed in connection with own obligations and limitations

Need to Control

Very High Moderate Low Very low

Communication

Unilateral Exchange 1:1 Dialogue True Communication

Organizational Orientation

Careerist Good Citizen Manager System’s Leader

Reference: http://www.interdevelopmentals.org/pubs/IDM-OLaske-Post-Bureaucratic.pdf
 

Capability -- Software, Lean, Project Management, People

Description

Levels

Software

Lean

Project Management

People

5

Optimizing

Transformer

Managing Excellence

Continuous Workforce Innovation

4

Managed

Continuous Improvement

Program Management

Mentoring

3

Defined

Systematic Approach

Project Management

Participatory Culture

2

Repeatable

General Awareness

Reactive Management

Compensation, Training, Development

1

Initial

Minimal Awareness

Crisis Management

Staffing

Reference: Capability Maturity Models:
-
Software:
http://en.wikipedia.org/wiki/Capability_Maturity_Model
-Project Management Institute: http://opm3online.pmi.org/
-People: http://www.sei.cmu.edu/cmm-p/version2/index.html
Lean Enterprise Maturity Model: http://portal.acm.org/citation.cfm?id=1234203.1234204&coll=GUIDE&dl=GUIDE-

 

Notional Comparison – Capability Level
Baldrige Criteria for Performance Excellence
Profit and Non-profit organizations

 

 

Description / Level

Baldrige Criteria for Performance Excellence

Point Range

 

Description

Optimizing

5

700-1,000

Organizational Analysis and Improvement

Managed

4

500-700

Learning a & Strategic Improvement

Defined

3

300-500

Systematic evaluation & improvement

Repeatable

2

50-300

General improvement orientation

Initial

1

0-50

Reacting to the problem

Reference: Criteria for Performance Excellence: http://www.quality.nist.gov/Criteria.htm
 

Notional Comparison– Capability, Sigma Level, Cost of Poor Quality

Capability

Six Sigma

Description

Level

Sigma

Level

Conformance to Customer Requirements as a Percent (Defect per Million Opportunities)

COPQ as a Percent of Total Sales or Budget*

Category

Optimizing

5

6

99.9997 % (3.4)

Less than 1%

 

World Class

(Great)

Managed

4

5

99.9770% (230)

5-15%

 

Industry Average

(Good)

Defined

3

4

99.3790% (6,210)

15-25%

Repeatable

2

3

93.3200%) (66,800)

25-40%

2

69.200% (308,000)

Don’t ask

Initial

1

1

31% (690,000)

Really, don’t ask

Non-Competitive

Cost of Poor Quality (COPQ). Financial costs the least significant. Most important costs (total effect of things gone wrong) unknown and unknowable.