In Search Of Excellence by Peters and Waterman

Peters and Waterman – Excellence

Who are Peters and Waterman?

Thomas J. Peters and Robert H. Waterman were two consultants, who in

1982 published a book called ‘In Search Of Excellence,’ advising

companies to embrace what they called ‘the eight attributes of

excellence.’

How did their research start?

The authors research started in 1977 when two groups of people at

McKinsey & Co. were asked to research a general concern with the

problems of management effectiveness and a particular concern with the

nature of the relationship between strategy, structure, and management

effectiveness. One of these groups was asked to review thinking on

strategy, the other was asked to review thinking on organisational

effectiveness. Peters and Waterman were the leaders of the project on

organisational effectiveness. They were basically told to travel

around the world and speak to as many interesting business people as

they could about the subject of Organisation, Structure and People.

They set out to discover the real secrets of management. They examined

43 successful American companies including IBM, Procter & Gamble,

Boeing, Delta Airlines and McDonald’s. In their research they looked

for key attributes that most of these companies shared and that made

them successful. They were asked to do a 700 slide, two-day

presentation and then condense it down. When condensed their research

provided us with the ‘eight attributes of excellence’ that I spoke of

a minute ago.

What are the ‘eight attributes of excellence?’

They are the following:

1. A Bias for Action: This is about getting things done. There must be

a free flow of information and open communication. The open and

informal organisation is more flexible and is able to take quicker

action to changes needed to keep up in today’s business world.

Successful companies who want to get things done are not afraid to try

new things and experiment.

2. Close to the Customer: Customer satisfaction is very important

throughout all the roles that the business plays. Many companies

forget about their customers, whereas successful companies have an

obsession with their customers. Excellent product quality and

reliability will make a satisfied customer. Great service will keep

the customer coming back.

3. Autonomy and Entrepreneurship: This is about encouraging risk

taking and innovation.

4. Productivity Through People: This means that everyone is respectful

and enthusiastic towards each other. This creates an atmosphere that

enables good work.

5. Hands-on, Value-Driven: This is about company philosophy and values

being discussed openly. The right values, clearly expressed, will help

define an organisation. Leaders in the organisation are also positive

role models.

6. Stick to the Knitting: This is about the company focusing on doing

what it does best.

7. Simple Form, Lean Staff: This can be hard particularly in large