What Are The 3 P’s?
In the world of Six Sigma and Total Quality Management (TQM), there’s a valuable tool called the “3 P’s.” It stands for People, Process, and Product and is a great way to pinpoint three key areas that can enhance quality within a business.
When we examine any business using this framework, we can identify areas that may benefit from improvements and changes. It’s all about striking the right balance among these three crucial elements.
People
Among the three “P’s,” “People” take the top spot in importance. Even the best processes and products can get you far without the right people.
But, having the right individuals in your team is crucial, as the wrong ones can harm a business. It’s important to note that what’s considered the “right” fit for one business might not be the same for another.
It’s not just about looking at someone’s resume or academic records; true effectiveness often becomes apparent during in-person interviews when you see how they interact.
Example: During Steve Jobs’ time at Apple and Elon Musk’s leadership at Tesla, both companies had distinct approaches to decision-making and organisational structure.
At Apple under Steve Jobs, things were notably different. The company was renowned for its unconventional management style, so it didn’t have a traditional organisational chart. What truly mattered within the company was your proximity to Steve Jobs and how he perceived your contributions, which could change at any moment.
Steve and those in his inner circle held the authority to make critical decisions, while everyone else essentially followed their lead or chose to depart from the company.
Process
The second key element for success is how well a business develops and executes its operational processes carefully, assuming the right people are on board. Having well-thought-out and logical processes is vital.
These processes should avoid unnecessary complexity. For instance, although the end product is a book in the publishing industry, the efficiency and effectiveness of the processes involved in transforming ideas into drafts, manuscripts, and final copies significantly impact the business.
In most industries, processes must evolve with the changing times; otherwise, a business risks falling behind its competitors in a casual or haphazard manner.
Example: Amazon’s approach is to “have a backbone, disagree and commit.” This implies that employees are encouraged to stand their ground and express their objections if they believe a decision is incorrect.
However, it also implies that if someone cannot adhere to this process, they might not be a good fit for the company.
Amazon Web Services (AWS), despite Jeff Bezos’ initial reputation for making quick and unpredictable decisions, is fundamentally a process-oriented company.
Over time, Bezos recognised the importance of having mechanisms or processes to ensure consistency and effectiveness, regardless of the individuals involved.
Product
A company’s product is often tangible, like a tool, software package, clothing item, or food product. However, sometimes the product is a service, such as tax accounting, legal counsel, or cleaning services.
While a great product is not the sole determinant of business success, it is essential because customers won’t buy irrelevant or subpar products (or services).
When you combine exceptional product strategies with effective processes, people and well-designed processes for delivering those products or services, and the proper market customer feedback, along with customer trends and a commitment to customer satisfaction, a great product line can turn a struggling business into a thriving one, this synergy leads businesses to success in the business world.
Example: Take Apple under Steve Jobs as a prime example. Steve had a somewhat unconventional approach regarding his customers’ opinions.
He often expressed a rather strong disregard for his current customers” thoughts, believing in a philosophy like “I’ll create what I believe is right, and my customers will eventually come to appreciate it.” This is an extreme form of prioritising the finished product above all else, where design takes precedence over functionality.
However, it’s important to note that not every company should adopt this extreme stance. Most of us aren’t Steve Jobs, and even Apple, in its current form, can’t quite follow that approach anymore.
However, many companies have achieved remarkable success by staying ahead of their customers’ needs and actively shaping them rather than simply reacting.
