Attention Fortune 1000 C-Level executives:

 

*                Are you struggling to generate predictable, organic profit growth?

 

*                Are you losing market share to competitors?

 

*                Are you finding it harder to execute Strategy and drive your company forward?

 

One day you’re at the top of your game, at the head of your field, the next you have massive problems

 

In the 1990s America’s “big three” automotive companies seemed to have made a comeback from the Japanese onslaught.  Now they hemorrhage money as Toyota and Honda roll along offering a steady stream of new products that customers love.

 

Home Depot brings in a top executive from GE who brings along his team from GE, GE systems and a Six Sigma quality initiative and yet they still lose substantial ground to their nearest competitor. 

 

Perhaps you recently installed a new, expensive ERP system that provides you all the information you could possibly want—Yet you still cannot drive your organization forward

 

In business there are no permanent victors!

 

As Nietzsche said, “that which doesn’t kill you makes you stronger.”  Companies that suffer set backs and learn from their mistakes can come back stronger than ever and overtake their “stronger” rivals.

 

Many executives today think that quality no longer matters, it’s passť; it is a given in today’s world and consumers don’t care.

 

Yet while Ford, GM and Chrysler put quality on the back seat and instead talked about strategy and buying hot brands like Hummer and Volvo; Toyota steadily focused on quality, just as W. Edwards Deming taught it to do over 50 years ago.

 

And the end result is that while Toyota earned more than the whole rest of the car industry, Ford, GM and Chrysler each lost billions of dollars.  

 

Do you think that ISO 9000 will give you quality?

Do you think Six-Sigma guarantees loyal customers?

 

 

Well think again... While each of these has their value, and has helped many firms, neither by themselves will give you world class quality.  In the GE Fieldbook author Robert Slater, a friend of Jack Welch, documents that in 1998 GE senior executives became, “aware of a very important problem related to the Six Sigma initiative: the company was saving a great deal of money… but somehow customers did not feel that GE had done anything that represented a substantial improvement for them.”

 

If Six Sigma is so powerful why did Motorola, the company who first developed it, give away its market leadership and most of its market share in cell phones to Nokia?

 

Why did Ford—which at one time seriously pursued quality, and was the most profitably automobile company in the world—tumble to the brink of bankruptcy, when it went to ISO 9000 instead of real quality?

 

 

Six Sigma and ISO 9000 are partial solutions at best.  At worst they are misleading and prevent companies from moving forward

 

If you were sick and taking a pill that didn’t work—or worse yet, had partial results misleading you to believe it was working—you might keep taking that pill instead of seeking bona fide solutions.

 

Only when your condition took a turn for the worse would you realize something more powerful and more effective was needed…

 

And by then, it might be too late!

 

What you don’t know can hurt you, but what you know that isn’t so can destroy you!

 

So what is missing?  As my mentor W. Edwards Deming said, “There is no substitute for knowledge!”  You may have thought information was the answer, but it is not.  The answer is knowledge, but not just any knowledge, a particular kind of knowledge matched with great skill.

 

But that knowledge is not generally available so it is unlikely that you would have had access to it.  In fact, most management gurus and the overwhelming majority of management teachers and experts espouse very different, even contradictory, ideas.  For instance:

 

*      The Press touts the Supremacy of American industry with stories of super results.  The emphasis is on strategy, mergers, economies of scale, cost cutting, none of which lead to excellence.  After all WorldCom and Enron met many of these criteria and recall the adulation they were given.

*      If you take a course on Quality Management, assuming you can find one, you’re most likely to get a mishmash of conventional and untested ideas that can lead you in the wrong direction – you’re literally at the mercy of your instructors and who knows who trained them.

*      Mergers and Acquisitions are proceeding apace and executives are getting big payouts from these.  These are distractions and have nothing to do with results and improvements.  In fact, 80% of Mergers have been shown to add no value to shareholders.

 

 

So what needs to be done?

 

Consider this:  A company can rise no higher than the core beliefs of its CEO and other key leaders.  If a CEO doesn’t fully understand and embrace profound knowledge and true quality the company cannot excel.

 

*     Great leaders ask their people to do incredible things.

 

*     Great leaders have ultimate confidence in their people, their processes and their beliefs.

 

*     Great leaders do not ask their people to do anything they themselves would not do.

 

 

You need to lead any revolution and any improvement in your organization.  And the first place to look is your belief system.  Outmoded or inefficient beliefs need to be replaced by functional and effective ones.  The sooner you recognize those beliefs which hold both you and your company back, and the sooner you replace them, the sooner you can resume your upward trajectory. 

 

Three key beliefs that every Fortune 1000 C Level executive must know

 

  1. A company that delivers quality to the marketplace helps customers live a better life with a higher standard of living.  This creates loyal customers who are 6 to 10 times more profitable than just satisfied customers.  They keep coming back and often bring a friend or relative. 

 

  1. Quality has two distinct but interrelated axes, External Quality and Internal Quality.  By understanding this distinction you can understand that real internal quality allows you to lower your costs, improve productivity, shorten time to market and raise the morale of the workforce and of management.  With lower costs for each item, lower overhead, lower inventory guess what?  Your profits are higher.  Further you can use the tools of internal quality to improve any aspect of the business.  While internal and external quality are related, they are different and different tools are used to identify them and improve them.

 

  1. Real Quality achieved through profound knowledge allows you to create and sell much more with the same resources.  In other words it increases your capacity

 

These three components taken together create loyal repeat customers, an effective error free system that is quick to market, lowers costs, greatly improves profitability and makes shareholders (who, if you are a public firm, may very well also be your loyal customers) happy as well.  They also make a company more flexible, nimbler and quicker to market. 

 

All of these are genuine, observable benefits that have been experienced by companies such as Harley Davidson, Intel, and Toyota who adopted Deming’s principles – as well as my own clients.

 

 

To improve a company one must work on at least three levels or dimensions

 

 

I identify these as Beliefs of the organization, the People dimension and Processes (both soft and hard).  These define the capability of an organization.  If you want to be an Olympic athlete you must train, live and eat like one.  These are the basic dimensions but once they are functionally aligned two other important dimensions need attention.  These are Information technology and Strategy

 

For any change or significant improvement to be lasting it must take hold on at least the first three levels of beliefs, people and systems.  If your strategy is not taking hold or if it isn’t as effective as you believe it should be; if your ERP system is not helping you improve, it may mean you need to dig much deeper into yourself and your organization and make some fundamental shifts before you can drive forward. 

 

Each organization is different.  And where to begin depends on the company.  That is where mastery and years of experience comes in. 

 

But just where does a CEO go to be coached and mentored?  Where does a CEO go for Profound Knowledge?

 

This is where I come in.  I will mentor you just like Deming mentored me.  If Dr. Deming were still with us I would refer you to him, but he is not. I assiduously studied him and his ideas and then applied them in my own business over 25 years ago and later my clients’ businesses. Everything has been tried and tested—and it works.

 

 

I genuinely believe I can pass on to you much of Deming’s wisdom coupled with my own empirical verification of their veracity and subsequent improvements and thereby save you years and incalculable frustration in making your company a 21st century dynamo. 

 

Any change starts with you.  But if the ideas are not understood, accepted and taken up by the rest of the organization they go nowhere.  It is critical therefore, that the introduction of the knowledge and systems be done masterfully, with due respect to the existing culture and people.  If properly done they will be more readily understood, accepted and instituted in your organization.

 

Here’s a dirty little secret:

 

The most successful managers, CEOs, athletes and teams of any kind get the best people they can find to help, coach and mentor.  Name any really powerful executive and he has a core of people he relies on for advice, mentoring and coaching. 

 

And here’s another little secret.  Each coach has limited time.  The best only work with a few.  I limit myself to working with two companies at most at one time.  

 

 

Why choose to work with me?

 

If you want the best, if you want a state of the art, world class experience, why not rely on someone:

*     with Decades of Experience

*     a Legacy of Success

*     Respect in the Marketplace

*     a Heritage from Masters

*     a Disciplined Approach

*     Complete Confidentiality and Exclusivity

*     Depth of Knowledge

 

But don't just take my word for it, here's some more of what others had to say about their experience of working with me:

 

 

 

So what’s the next step?

 

E-mail me now at info@rafaelaguayo.com to set an appointment for a risk-free phone conversation to determine how we can work together.

 

 

Regards,

 

Rafael Aguayo


top of page[ top of page ]
 

©1999-2007 Rafael Aguayo - All Rights Reserved