We are watching many companies resort to cost cutting in an attempt to hang on to their old business models. But no matter how much an organization tries to resolve its perceived problems by cost cutting, it makes no real impact. The competition is still moving ahead and the customer experience is still poor.
Cost cutting may have sufficed in the 20th Century, when efficiency and repeating the mass model seemed to be universal business goals. But in many industries on today’s more crowded planet conditions are more complex, dynamic and unpredictable.
Russell Ackoff was a pioneer in operations research, systems thinking and management science. This video — an excerpt from Ackoff’s presentation at a 1994 event — illustrates why the Improvement Kata is more effective than the 20th Century Management approach for today’s conditions.