Optimize the Whole

When we think in parts, we improve in parts. Most of the business improvement is the game of ‘sub-optimization’. You optimize pieces without looking at the whole.

When a customer reports problem with your software, you do an incidental root cause analysis and address the code quality problem. You deploy tools, introduce new processes, measure constantly and yet – a few months later, you encounter a similar problem.

But when you look at the whole system, you might figure out that the real root cause is in something which is immeasurable yet important – may be, collaboration with other teams or how you sell. May be, inefficiencies rooted in how you support your customers after product is delivered.

We optimize the silos and the whole misses our radar. If ‘customer centricity’ is one of your key values, you should consider optimizing the whole customer journey with your organization – not just your development processes.

Often, we also optimize that which is measured. If your metrics are narrow, you will never be able to focus on systemic metrics that may really help your business and the customer.

Here are a few important things to consider when you optimize the whole:

• Think Systems. As Peter Senge says in his book “The Fifth Discipline”

We need to cultivate “a discipline to see the wholes, a framework for seeing interrelationships rather than things, for seeing patterns of change rather than snapshots”

• Focus on Value Stream. Value for customer is created in a series of interactions between various processes that starts right from first contact with the customer. Value stream mapping is a lean tool to identify a series of events right from conception to delivery of product or service.

• Define what “complete” system means. Too often, we think of complete product as a set of completed features. For customers though, complete product is an experience they receive through each interaction with the organization. It helps to define what ‘complete’ means.

• Measure Right. When you have narrow functional metrics, people in each function will work  hard to achieve their goals and yet, organization will not realize benefits of having such metrics. However, if you have more systemic metrics (and rewards) where people win only when the system wins, it aligns everyone to the same set of goals to ensure that ultimately, customer wins too.

Sub-optimization in organizations is a thinking problem. When you fail to see the whole, you undermine your capabilities as an organization.

And this may be the precise thing that holds you back from delivering a superior performance to your customers.