Cost Effectiveness

One reason (perhaps the main) executives will consider bringing community in their organization is cost effectiveness. In general so far executives are not preoccupied with the growth of the individual. Even though executives are often found to think that the people in their organizations work on a consensual decision making level, the truth is that most executives don’t even understand what consensus means.

Japanese businesses work on a much more communal level and it goes to show when looking at the cost effectiveness when comparing the automobile industry bottom line results. Thomas Sowell in his book, “Basic Economics” says while GM made $300 for every vehicle sold and Ford loss $240. Toyota on the other hand made $1800. Forbes magazine reported “It [Toyota] makes a net profit far bigger than the combined total for Detroit’s Big Three.”

Mary Walton in her book “The Deming Management Method” gives a model in “total quality management.” Not an easy model to follow and I’m suggesting that to revitalize leadership in organizations and for it to have a long term effect leaders will need to learn about consensus decision making. The best way to learn about consensus decision making is by learning how to communicate. Learning communication rules is accomplish by experiential learning.