For years now, I have been observing organizations just to see what makes their operations rise above the rest and make them what I call “excellent organizations.” What I discovered is more common sense than it is groundbreaking.

My entire career has been focused on the development of management tools that companies and organizations use to produce substantial and sustainable change to their management and general quality processes throughout the organization. Sometimes, that effort involves highly technical and statistical models. Sometimes organizations deploy very detailed programs that require extensive training. In most instances where the effort to change is sustained, substantial change in terms of quality output and the resilience of the organization is evident. But sometimes it isn’t.

In cases where improvement was not sustained, I examined the process more closely. I compared the organizations that had long-term improvement with those that did not. In both cases, there was continual training and management was engaged and dedicated to the improvement goals.what makes their operations rise above the rest and make them what I call “excellent organizations.” Then I found an important point where the comparisons differed.

Organizations that produced sustainable improvement added another layer to their activity—something so vital that once you see it, it is impossible to ignore. In the organizations that revolutionized their quality processes, everyone in the organization was completely engaged.

From the executive suite to every last worker, every single person was involved. People were encouraged to participate in conversations, interact with each other about the particulars of the organizational mission and operation, and rewarded when they implemented changes that were productive. People throughout organization became energized and mobilized.

It was at this point that I realized that the reach of “process power” is limited. Without “people power” to back it up, the quality process can only go so far. After all, we are highly social creatures that love to communicate and interact with each other. And more important, we grow both individually and collectively when we implement what we learn from each other.

It was clear to me that among these excellent and successful organizations, there was a focused effort to encourage communication, interaction, and implementation – basic human skills that are intrinsic to each of us. It is within this framework that I developed LEO – Listen, Enrich, and Optimize – which has proven to be a flexible and transformative program that draws attention on the strengths of human interaction.

The underlying strength of “people power” is the fact that it relies on basic human skills. Encouraged and utilized systematically, these skills may also serve as the triggering mechanism that can cause every member in the organization to think deeply about the decisions they make and the actions they take.

An executive once emailed me a quote that reads: perfection is unknowable. I’m sure his source was Confucius or Zen teaching, but I also find this thought noted in Western cultures as well.

So, maybe perfection is unattainable all things, but perfection is what we seek in all aspects of our lives. And it is interesting how we rationalize the contradiction between what we realize is possible and what we expect from our efforts. But is the goal really perfection?

In an optimized organization, all processes move toward perfection. That’s how we can expect the greatest result from the smallest action. When nothing misses our attention; when every nuance snaps into our view, then we begin to work for continuous improvement toward perfection.

There is nothing really revolutionary about the idea of continuous improvement. It has been espoused by philosophers, coaches and great leaders. I believe that this is the underlying philosophy for every slogan that asks us to look deep within ourselves to reach for greater goals than we might otherwise achieve. That’s why the word “perfection” embellishes hundreds if not thousands of corporate mission statements. Those of us who aim for perfection come the rewards that are denied to those who – from lack of will or lack of awareness – give up the effort or never try.

That is why successful organizations seek to improve their quality process – to achieve the highest level of optimization possible. They know that if a company wants to turn out high-quality products or services, the kind that will truly delight existing customers and attract new ones, you need to keep raising the bar on quality.

From the perspective of your deliverables – the products and services that you offer to your customers – things work and fail for all sorts of reasons. When you optimize, you analyze every design and solution down to every detail. Not only are you aware of strengths, but have full knowledge of every weakness. And a plan for optimization is always at your fingertips.

I see Optimization as a three-part process.

• First, you must accept perfection as your goal. Not just for the organization, but for yourself as well. When you raise the quality level of your products or processes, set the bar high and keep raising it. A better average is not the goal; you want perfection.
• Second, worry about the details. Make your optimization process the means of knowing every detail about your product or service. Filter good news and bad news through your own protective paranoia and keep asking yourself: “Did we do everything possible? What may go wrong? Will our design and solutions really work?”
• Third, prepare your team for the pursuit of perfection. Some may not have the passion that you have, but here’s where you must make them understand why ‘good enough’ has to be treated as merely a starting point, not the finish. Show them why the extra effort toward greater quality is a benefit to customers and employees alike.

I know that the optimization process may puzzle and seem counterintuitive to many Westerners. I also agree that if ‘good enough’ is profitable, then that’s a good place to be. But then the next question should be is ‘good enough’ sustainable? What happens if a competitor shows up with a similar product that is better? What then?

We need only look back to the so-called Japanese industrial invasion of the late 1960s to understand the implication of sustained quality and optimization. Now, all three major American car manufacturers practice some form of optimization – both with their products but also within their organizations.

Once the basic concept is understood, optimization makes complete sense. Perfection may not be knowable in all situations, but sustainable success is achieved only when we constantly work toward it.

While it is true that I am advancing a new way to think about quality, I am also reaching beyond common output metrics of a product or service. I believe that we need a fresh approach that can have a profound effect on not only the way we work, but the way we perceive our everyday life.

Think about this. In business, the present concept of quality has been fixture for the past 75 years. But the irony is that while the industry has developed an abundance of quality management tools, most organizations unfortunately still struggle to make sustainable, long term gains that can truly differentiate themselves in today’s global marketplace. That is where my thought process has taken me – to understand why the present concept does not serve us better.

In my analysis, I have found that the focus on the “process of quality” is in fact incorrect. I have discovered that it is the process of managing quality that is primarily to blame. I will say that the intent to manage the process is limiting because it focuses far too much attention on the “outcome of quality,” not the “act of delivering quality.”

Why is this important? Because, Quality touches everything that you do on a daily basis; from discussions you hold with your peers, subordinates and leaders and the interactions you have with suppliers, vendors, and other providers. In fact, Quality touches every aspect of your life – in your business as well as your personal family life.

We can say that a problem belongs to someone else or we can look at ourselves in the mirror and accept the responsibility of solving the problem ourselves. If each one of us starts with the mindset that the problem belongs to me, then all problems will disappear. When I say that Quality is a part of everything you do, I mean to say that you become aware of both the problem and your ability to fix any problem or deal with any issue whether at work, our personal life, or in our community.

This perspective of Quality also refuses to accept compromise. It also recognizes that lasting solutions require that we do more than “fix” a problem. I ask that you think about this honestly – when has a quick fix ever solved anything? That’s where I believe we have failed ourselves. While we have made some fantastic strides to improve quality, we have sunken into the false security that a “find-and-fix” process is somehow enough. But obviously it isn’t.

This all-encompassing vision of Quality offers a new mindset, a transformational way to think about the actions and decisions that we make. It draws together commitment from people to improve their performance and make Quality a lifestyle choice, a cultural attitude, and a personal belief that refocuses all attention on the “act of delivering quality.”

Change is everywhere. In nature, change is an undeniable force. Even mountains succumb to the ever present, never diminishing force of change.

Why in business should we expect any different?

The fact is, change is hardwired into human nature. Individuals and society as a whole enjoy change – like the changing seasons. And there are other changes – changes in taste, changes in lifestyle, changes in expectations and aspirations. Therefore, any effort to push away change and hold on to the present—to maintain the status quo indefinitely—is a waste of energy and resources, and ultimately leads to failure.

This is why companies that do not adapt to new trends and ideas will eventually see their markets dry up and wither away. This is the fate of organizations, large and small; from large multi-national corporations to mom-and-pop shops down the street.

And let’s be clear. When I say “change” what I mean is “future.” In business, change is opportunity. Therefore, we must embrace change as though our future depends upon it. Among forward-thinking and successful companies that I have examined, change in the marketplace is no more difficult, no more traumatic than changes in the season. And how does that happen? Because they have adopted change into their management process:

1. They have built flexibility into the organization. They possess a culture and mindset that can easily adapt to marketplace demand.
2. They actively look for ways to improve products and services. Since the shelf life of goods and ideas is so short, they always live in the future.

These are the lessons that the top executives at a particle board manufacturer learned one year. They received several complaints that desks and tables made from its boards were breaking under heavy loads.

When the complaints grew in number and urgency, the vice-president of the company – who also led the production unit – took his managers along on a fact-finding mission. Their original goal was to gather as much data as possible from furniture builders and customers and to solve what they believed to be an easily solved manufacturing problem.

Their first stop was a furniture builder and their largest customer. There they learned that people do not just write on their desks, they sit on them and place heavy objects on them. The president of a furniture company gave them a demonstration. The management team watched in horror as their client leaned on the edge of a newly completed conference table and the corner cracked and broke away. The team saw numerous other failures; more than they ever imagined; and returned to their offices charged with a sense of urgency.

Their first realization was that they never fully understood how their boards were being used. Their product was not flexible – both literally and figuratively. This was no longer a small problem; it threatened their position in the marketplace.

That’s when the fault discovery process became an innovation process. They analyzed the strength of the boards in different situations and began a detailed research on the manufacturing process itself. Their goal was not to fix what they had but to make their product stronger than ever before. They tested composites, glues, wood chip sizes, and pressurization techniques. After about a year of work, they optimized their entire manufacturing process.

Not only did they improve board strength, they also decreased manufacturing cost. They ended up with a stronger product that was a higher quality and priced competitively.

Dealing with the rapid-fire changes in the marketplace requires that businesses possess a built-in survival process that allows them to be innovative and operationally flexible. Changes happen. If you are not prepared, you will meet a future – but it may not be the one that you expected.

I use word “quality” as a proper noun; quality with a capital “Q”; because the effect of quality should not be limited to a policy or a set of rules. When Quality becomes everyone’s business, we see the outline for a truly transformational experience that shakes the very foundation of our beliefs and behaviors.

My belief is that the pursuit of quality applies to “all the people, all the time.” Quality is not just the organization’s mission – it is a personal responsibility that must be reflected in every aspect of work and life. Again, I say that Quality is a Lifestyle.

Quality happens at all levels of your organization and at all places where vital relationships grow and take hold. Therefore, Quality is active in the way we LISTEN to everyone who has a point to make; when we probe and challenge ourselves and others for ways to ENRICH the deliverables and outputs of the organization; and as we actively OPTIMIZE the experience so and we not only meet, but find way to constantly exceed expectations for whatever client, customer co-workers boss or subordinate we’re interacting with at any given time.

In this way, Quality injects a proactive mindset throughout the organization; a self-motivated and independently driven attitude that the potential for success lays in the hands of the individual, not someone else.  If you treat a co-worker or your spouse like a child, don’t expect them to behave like an independently minded, responsibility seeking adult. However, if you empower people with confidence and support, and allow them to voice their ideas and behaviors, then you enhance their ability to uphold the belief that Quality is INDEED everybody’s business.

Even big and successful companies sometimes forget the importance of listening.

Let’s face it. Problems come and go, but it’s how we deal with the problems that make us stand out to our customer base.

Microsoft spent years combating the perception that it couldn’t deal with or didn’t care about stability problems in its Windows operating system.

Adobe let the prices of its high-level production software rise to incredible heights to the point now where many of their ‘loyal’ users are merely biding their time for a cheaper alternative.

Toyota has been beset with persistent rumors about their quality. First, it was acceleration problems and floor mats, and the headline grabbing recalls continue.

For the record, each of the companies I have mentioned has made constructive efforts to reach out to their customers and show that they are – in fact – LISTENING. But listening, as it pertains to your management process, not a rigid, step-by-step technique for finding out what customers want or need. In fact, there is no strict methodology that can be deployed to meet the infinite variations of individual experience.

Each organization is unique in terms of its products and processes, just as each interaction will be perceived differently. However, the failure to truly listen to customers is at the heart of why many organizations fail. No matter who it is – be it your customers, constituents, stakeholders, investors, membership – or even your family members – careful, intelligent listening is the first crucial step to success and for overcoming problems and achieving a Quality operation.

I have three specific rules that will help ensure that your listening skills are applied effectively and that your listening pattern is in fact ‘careful and intelligent’.

1. Get out from behind your desk. Go to where the action is. Go to the customers. Go to the factory. Go to the sales floor. Go to where the problems are. Go to where the facts are.
2. Stop talking. It’s hard to listen when you’re the one doing all the talking. Watch what goes on. Watch what your employees are doing. Watch what your customers are doing. Listen to what they say – listen to the types of words they use. Even if you’re confident that you’ve got it, watch and listen more.
3. Show empathy; look at the world through their eyes. Be in the moment where your employees and customers are speaking. Remember that it’s not about your expectations; it’s all about theirs. Learn from the people with whom you should be listening.

There are many powerful management tools can be deployed to increase the effectiveness of your listening process – this can help you on a personal level. However, the data collection process itself usually involves two phases – quantitative as well as qualitative research. For instance, you may need to deploy marketing surveys and other research to build a complete picture about your situation. Wherever possible, show the affected audience – your customers for instance – that you are actively engaged by including them in the data collection process.

As with all things, it is always important to keep matters as simple as possible. The more complex the process, the more effort a company must put into learning to use it properly. Put into another way: the more complex the process, the more likely that more things may go wrong. But you’ll never go wrong just by sitting down and listening.