Saturday, June 20, 2009

Tolerance for variance

'Variance' is the difference between desired and actual. If you know the customer's tolerance for variance, you can fine tune your offering to provide it in a cost effective manner.

To get the product or service out to the customer, internal processes and handoffs have to occur. The people who work on these internal processes and handoffs have their own tolerance requirements. This is a function of company and personal values and more often, a reflection of their personal preferences. (We'll debate the difference between 'value' and 'preference' elsewhere!)

Internal conflicts are caused when these tolerances are not met. Hence the need to negotiate and agree on rules of engagement.

In your chosen field of Strategy Execution, what is the tolerance for variance? How much of that has to be re-caliberated?

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