The Profit-Ability Management Principles listed below are an enhanced version of traditional Quality Management Standards reflected in ISO certification requirements. MCTS has modified the traditional list to clarify the unique nature of our approach and what we see to be key constraints commonly overlooked by many other improvement strategies. Like Quality Management, Profit-Ability Management, in our view, is essential to providing visionary leadership and effective management in any organization.
Principle 1: Customer-Focused Organization
Organizations need customers and therefore should understand all current and future customer needs, customer perceptions, changing customer requirements, and strive to exceed customer expectations.
Principle 2: Authentic Leadership & Accountability
Leaders inspire a constancy and unity of purpose for the continual improvement of organizational Profit-Ability.
Principle 3: Integrated Management Systems
Identifying, understanding, and managing a system and sub-systems of interrelated processes for specific goals objectives improve organizational effectiveness, efficiency and profitability.
Principle 4: Involvement & Empowerment of People
People at every organizational level are change-agents who, when properly empowered, inspired and guided, come alive with vitality, intelligence, and exceptional profitability-potential that can make or break the future of your organization.
Principle 5: Strategic Planning & Results Measurement
Strategic Plans are only as valid as the accuracy and timeliness of the data and perceptions used to create them; knowing how you will measure the results of your plan before it is released, is fundamental to effective communication and accountability—it is the only way promises can be made and kept profitably.
Principle 6: Process Modeling for Systems Development/Improvement
The process approach leads to better understanding & involvement of stakeholders, better use of resources, shorter cycle times, lower costs and improves accountability to internal & external customers.
Principle 7: Continual Improvement & Performance Measurement
Continual improvement of interrelated processes, individual skill and associated systems is a permanent organizational objective that requires continual measurement and evaluation of results and satisfaction.
Principle 8: Factual Approach to Decision Making with Stakeholder Buy-In
Effective decisions and actions are based on the analysis of data, information and consensus perceptions.
Principle 9: Strategic Supplier Chain Partnerships
An organization and its suppliers are independent, and mutually beneficial relationships in supplier chains enhance profitability when both internal and external supplier chains are mutually beneficial within the organization as well.
(Also See: Applying The Principles)
(Reference: In-depth Article on Profit-Ability Management Principles )
ERP & Hoshin Kanri…
Profit-Ability Improvement... (¬Click here to see definitions)
Profit-Ability Management Principles... (¬Click here to see definitions)
People, Empowerment & Profit-Ability… (¬Click here to access articles)
Hoshin Kanri & Deming's Plan-Do-Check-Act... (PDCA) Cycle…