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Overcoming the improvement paradox

Author

Listed:
  • Keating, Elizabeth
  • Oliva, Rogelio
  • Repenning, Nelson
  • Rockart, Scott
  • Sterman, John

Abstract

Despite the demonstrated benefits of improvement programs such as total quality management and reengineering, most improvement programs end in failure. Companies have found it extremely difficult to sustain even initially successful process improvement programs. Even more puzzling, successful improvement programs sometimes worsen business performance, triggering layoffs, low morale, and the collapse of commitment to continuous improvement. We term this phenomenon the `Improvement Paradox.' For the last four years, we have worked with a variety of firms to understand the paradox and design policies to overcome it. Our findings suggest that the inability to manage an improvement program as a dynamic process is the main determinant of program failure. Improvement programs are tightly coupled to other functions and processes in the firm, and to the firm's customers, suppliers, competitors and capital markets. Failure to account for the feedbacks among these tightly coupled activities leads to unanticipated and often harmful side effects. We describe these dynamics and offer some guidance for managers seeking to design sustainable process improvement programs.

Suggested Citation

  • Keating, Elizabeth & Oliva, Rogelio & Repenning, Nelson & Rockart, Scott & Sterman, John, 1999. "Overcoming the improvement paradox," European Management Journal, Elsevier, vol. 17(2), pages 120-134, April.
  • Handle: RePEc:eee:eurman:v:17:y:1999:i:2:p:120-134
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    Cited by:

    1. Glover, Wiljeana J. & Farris, Jennifer A. & Van Aken, Eileen M. & Doolen, Toni L., 2011. "Critical success factors for the sustainability of Kaizen event human resource outcomes: An empirical study," International Journal of Production Economics, Elsevier, vol. 132(2), pages 197-213, August.
    2. Scott F. Rockart & Nilanjana Dutt, 2015. "The rate and potential of capability development trajectories," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 53-75, January.
    3. Armenia Androniceanu & Ioana-Catalina Enache & Elena-Narcisa Valter & Florin-Felix Raduica, 2023. "Increasing Energy Efficiency Based on the Kaizen Approach," Energies, MDPI, vol. 16(4), pages 1-24, February.
    4. Farris, Jennifer A. & Van Aken, Eileen M. & Doolen, Toni L. & Worley, June, 2009. "Critical success factors for human resource outcomes in Kaizen events: An empirical study," International Journal of Production Economics, Elsevier, vol. 117(1), pages 42-65, January.
    5. Ingrid M. Nembhard & Anita L. Tucker, 2011. "Deliberate Learning to Improve Performance in Dynamic Service Settings: Evidence from Hospital Intensive Care Units," Organization Science, INFORMS, vol. 22(4), pages 907-922, August.
    6. Gary, Linnéusson & Amos, Ng H.C. & Tehseen, Aslam, 2018. "Towards strategic development of maintenance and its effects on production performance by using system dynamics in the automotive industry," International Journal of Production Economics, Elsevier, vol. 200(C), pages 151-169.
    7. Besiou, Maria & Georgiadis, Patroklos & Van Wassenhove, Luk N., 2012. "Official recycling and scavengers: Symbiotic or conflicting?," European Journal of Operational Research, Elsevier, vol. 218(2), pages 563-576.

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