Head: (5 of 5)
Heart: (2 of 5)
Leadership Applicability: (4 of 5)

This article is worth the 15 minutes it takes to read as it puts to rest the question of whether to jump on the next "new management practice" bandwagon. If your company is not already addressing all 4 areas mentioned in the article, then you need to do something...anything. This ground breaking 5-year study focuses on delivering the management practices that work and have produced superior results. We have all heard about different management practices from TQM to Six Sigma that are designed to optimize a company's operational execution. This study reveals that it does not matter which one of the techniques you use as long as you implement something as part of your focus on operational execution.

Successful companies use what the authors call the "4+2 formula." That is, they excel in all of the following 4 primary areas: 1) clear and focused strategy, 2) maintain flawless operational execution, 3) develop and maintain a high-performance oriented culture, and 4) build and maintain a fast, flexible, and flat organizational structure. They also excel in 2 of the 4 secondary areas: hold onto and develop talent, committed leadership, make industry-transforming innovation, and/or grow through mergers and partnerships. Interestingly, focusing on more than 2 of the 4 secondary areas did not necessarily yield stronger returns.

In the earlier example about TQM vs. Six Sigma, it is clear from the study that TQM will work better for some companies, while other companies will find that Six Sigma works for them. Similarly, it will work for some companies to focus their strategy on delivering the lowest prices, while for others it is strictly the high-end market; but not necessarily both if they are competing with one another. In many cases companies have failed in their attempts to expand on a growing market that is not consistent with the company's strategy. The bottom line is that there needs to be a clear focus on all 4 primary and 2 secondary areas in order to be successful. Buy it.