Value-Add

“So, what does all this mean to the organization?” I asked, finishing my conversation with Lawrence about structure. “What contribution comes from each strata?” The wheels were turning inside Lawrence’s head. He struggled.

“Take it strata by strata,” I said. “What is the role of Strata I?”

“They are the people who do the work,” replied Lawrence.

“And their contribution is quality. All of your quality initiatives must be driven down to Strata I. They alone, have the power to instill quality into your product or service.” Lawrence nodded.

“What is the role for Strata II?” I continued.

“Strata II makes sure the work gets done.” Lawrence snapped back.

“The value-add for Strata II is completeness, thoroughness, accuracy, timeliness. They make sure there are no gaps in service and that things happen on time.” I paused. “And the role at Strata III?”

Lawrence was ready, “Strata III works on the system, creates the system, makes the system better.”

“And the value-add for Strata III is predictability and consistency. Ever had a McDonald’s hamburger in Memphis? Ever had a McDonald’s hamburger in Seattle? How do they taste?”

Lawrence nodded. “They taste the same, because they have a system.”

“Lawrence, does your company have a price list for its goods?”

“Yes.”

“Your company has a price list because it can predict its costs. A price list is evidence of a predictable system. The value add of the manager is to maintain that predictability.” -TF

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