Leadership, Customers, Strategy, Knowledge Management, Workforce and Operations are the primary components of an organizational management system (The Baldridge Performance Framework). The approach, deployment and integration of these components vary greatly from business to business. Take a moment and think about what these components look like in your organization, and how (or if) they work together.
In Chinese philosophy, Yin and Yang describes how seemingly opposite forces may actually be complementary, interconnected, and interdependent. The components of the Yin and Yang represent perfect balance. If we apply the Yin and Yang approach to our management system, the components will be divided into two primary categories: People and Processes.
Processes (Yin)
• Strategy
• Knowledge Management
• Operations
People (Yang)
• Leadership
• Workforce
• Customers
But are both “sides” of the management system considered equally? As a Lean Six Sigma Black Belt, I was taught that processes should be the focus because they comprise around 80-85% of organizational problems. But if you don’t hire and train people correctly…or you don’t have the right leadership in place to guide those people…or if don’t know what makes your customers are happy, all your focus on process is for naught and the “balance” of your organization will be off. And, conversely, if you are only focusing on people and not integrating and improving your processes, the organization will not have structure and controls and, therefore, never be able to achieve its goals and objectives.
Many business cultures and leaders choose one side or the other of the Yin and Yang to focus on. They are either “touchy-feely” and focused on the “people” aspects, or they are extremely policy and procedure driven and focus on the “process” aspects. Some folks are more comfortable with structure and others are more comfortable with what I like to call “the feels”.
The Yin and Yang of Organizational Performance helps us visualize and remember that people and processes are interconnected and, therefore, both “sides” should be a priority. It’s a “50/50”, balanced proposition that will help improves organizational performance. Only when leaders focus on ALL six components of the system (Leadership, Customers, Strategy, Knowledge Management, Workforce and Operations) can they truly begin to improve. And the better these systems function and integrate with one another, the more high-performing an organization will become.