Achieve the Lowest Costs — Simplify Simplification

How can you reduce the time and effort it takes to create attractive simplifications? Creating a totally new process will usually work better than reforming an existing process.
This approach goes counter to today’s fascination with Six Sigma and other quality disciplines that wring errors out of existing processes. But if you fix an obsolete process to eliminate flaws, all you may have is a way to create error-free buggy whips. How else can you explain the paradox of Motorola’s long slide in market share for mobile communications equipment and telephones during the 1990s despite the company’s Six Sigma prowess?
Entrepreneurs have long understood this point. Those who have built billion-dollar businesses almost always began by creating fewer, simpler, and more effective processes for delivering high value at low cost to beneficiaries, customers, and users. This observation is equally true for those who start entrepreneurial nonprofit organizations.
Habitat for Humanity International is one of the world’s largest home builders, but the organization doesn’t operate like the for-profit home construction firms. Plans are simpler, offer less customization, and permit homes to be created at far less cost than for conventional construction of similar size.
In addition, the land, materials, and labor are […]

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