Suppose you operate a company with two lines of business—a
service business such as Six Sigma consulting, and a manufacturing business
such as precision instruments. They have different customers, growth prospects,
reinvestment needs, returns on capital and cash flow characteristics. They face
different types of risks.
In the 9th of his 14 points, W.E. Deming taught managers to
break down barriers among staff areas. In the example above, the units are
distinct divisions in a conglomerate. For organizational and practical
purposes, good management would separate them. |
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