One of the better business books written over the last few years was James Collins‘ “Built to Last (at Amazon.com).” In the book, Collins talks about how the “tyranny of the OR” pushes people to believe that things must be either A OR B, but not both. There’s an interesting parallel here for manufacturers.

Conventional wisdom was that you traded off operating results for customer satisfaction. How? Well, to achieve higher customer satisfaction through better on-time delivery and other metrics manufacturers would “eat” operating margin by carrying safety stock, expediting orders, carrying excess capacity, etc. These institutionalized approaches to increasing customer service ended up being a corporate margin sinkhole.

Collins goes on to say that highly visionary companies liberate themselves with the “genius of the AND” and no longer settle for either or. Visionary and leading companies find ways to increase customer service AND improve operating margins. And, in today’s cut throat market, there’s no more fat to eat so you had better perform.

As I talk to executives at our customers I hear them focused on the “genius of the AND” all the time (although not necessarily by those words). And, its gratifying to see how our Response Management software is one key enabler to help them achieve this goal and provides them with a competitive advantage in the market.

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