When complex choices are narrowed down to just two, the consequences may be catastrophic.

Such is the case in many businesses right now.

"Process is everything", say the process people. And it is in to do Poke Yoke mistake proofing (Japanese), lean manufacturing, six sigma and Kaizen.

"Output is the only thing!", say the output/input people, the throughput people, the sales people, the supply chain people.

It is, of course, neither. Business is NOT about process and output. Business is about satisfying human needs.

My own profession, economics, tries to deal with BOTH output and input at the same time, dividing output by input. But as we shall see, that is not good enough either.

But if focusing on process and output is not enough, what should be the focus of business? Business is always operating in a larger CONTEXT. This context accords a place, and a role, to each player. Context is defined by the anchor companies - established, admired and frequented by millions of customers. Context also allows predator companies to enter and play. For them, it is not enough to survive - others must fail.

It is the law of the jungle - predator and prey - and survival of the fittest is the only rule. Then there are the niche players - companies that do something better or cheaper than anyone else. Where you are in the corporate food chain determines everything. And this is not a static place - competition energizes everyone, and keeps everyone on their toes [1] .

Then there is CONTENT - and content is about technology, a trained work force, good leadership, experience, insight, vision, and much more. If crucial content is lacking, you are disabled, just as surely as an ignorant student will fail an important exam. Content used to double every generation; now it doubles every 5 years, and soon it will be every 3 years. In the knowledge economy, content is everything, and ignoring it may be fatal.

Then we finally arrive at PROCESS! Process is how inputs of knowledge, experience, machinery, raw materials, technology and other production factors are combined to produce output. It takes the experience of engineers, the wisdom of a trained work force, the management skills of a high performance leader, and much more, to make all the pieces fit together. The result is OUTPUT.

These intersections, argues Jan Carlzon in Moments of Truth [2] , are the testing ground for the mission and vision of a company, and for how well it meets the needs of its clients. But clients are not just looking for output - clients are looking for OUTCOMES!

What happens to the roof that has just been repaired, over time? How long did the new TV last? Was the service delivered appropriately for the customer? To pick the right output, the strategic and most challenging decision for any company, is to look forward and pick the right outcome for a buyer: A roof that won't leak, a car that doesn't spend most of its time in the shop, advice that won't land you in jail.

But there is a larger picture still. That picture is BENEFIT. What good was it? Did it truly create satisfaction and acceptance for the customer? Satisfaction is a feeling. Isn't it interesting that for all the preoccupation with technology and machinery, it is often an intangible feeling that makes a customer remain loyal to a company or product?

The feeling that will make that customer tell other people about his/her experience (and that is one step up from satisfaction - that is delight!), and the product or service that will truly make the customer, maybe even this world, better off?

So it is not process or output. It is whatever blocks us in our pursuit of delighting our customers. Those obstacles may be found everywhere - in CONTEXT, in CONTENT, in PROCESS, in OUTPUT, in OUTCOME, and in BENEFIT. That which blocks our goal IS our goal. If that blockage is beyond process or output, process and output improvement won't help us. In fact, the drain on our resources by NOT focusing on what may kill us, may kill us.

We're back to diagnosing what is in the way of delighting our customers, and for acting on what we shall find. And we are back to Adam Smith, and David Riccardo, and Alfred Marshall - those wise and thoughtful early economists of the British Isles, who made it their business focus to maximize satisfaction. And that is the root cause of good business.

A good business is always the realization of someone's dream. When that dream is shared by their customers, life does not get much better.

During the summer months, Minnesotans trek "up North". They go for the long, blue evenings, for the intimate communication with nature, for the crackling fire near a calm lake.

We all see the superior context in all of this and the lasting benefit to body and soul. For one blessed week, process and output takes second place to what is truly essential in the lives of Minnesotans: A satisfaction so deep and lasting that we seek it, without fail, as soon as summer bursts upon our state.



[1] "The Information work Productivity Primer", produced by
the Information Work Productivity Council, 2003 Research Compendium

[2] Moments of Truth , Carlzon, Jan, Perennial Currents;
Reprint edition (February 15, 1989)