Businesses are Run With Knobs

Businesses are Run With Knobs


A way to analize business performance is to look at business as if businesses were run by knobs. This is a simplified business model that incorporates all aspects of the business.

Each business knob has a characteristic. It has a size and it has a range that you can turn it. The business knob size correlates to how important it is. An example could be corporate culture. That would be a pretty good size knob since it’s very important. The second feature of a business knob relates to your ability to affect it. You may not have much of an ability to affect the corporate culture knob so you wouldn’t be able to turn it very far.

Subsequently by implementing the tools of the Toyota Production System you would be turning up the Operational Excellence knob all the way. You would also turn up the corporate culture knob all the way.

Above all Lean Six Sigma and the Toyota Production System will create a competitive advantage by cranking the Operational Excellence knob all the way up. Your business culture will also improve.

View the video for a little more detail: