April 10, 2007

An Error Rate of Only 1 in 6 Million

Management, Productivity

0  comments

200,000 deliveries a day. 5,000 employees (many barely literate) and an enviable error rate without depending on electronic technology. And such dedication that when Royalty visits, Prince Charles (yes, THAT Prince Charles) adjusts his schedule to fit theirs, because they won’t deviate.
What’s your error rate?

Your dedication level?

Read about the Dabbawala and see if you can think of reasons for their success.

My Reasons:

  1. The job description is very clear. The difference between success and failure is obvious, and indisputable.
  2. The job description doesn’t change.
  3. Everyone is treated as an equal and is paid the same.
  4. Just three levels of management. (I think this is possible because of #2 and #3)
  5. Each worker has to contribute some of their own capital. Different from an ESOP where capital is usually given to the employees, these workers provide their own, (And I suspect they keep ownership of it.)
  6. UPDATE – I agree with Seth Godin that it works because they know their customers which engenders trust and hence responsibility. But I don’t think that’s the only reason it works.

Post your reasons in the comments.

Takeaway:

  • When would such a low error rate be a bad thing?

[tags] small business, entrepreneur, error rate, management, productivity, Dabbawala [/tags]

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About the author 

John Seiffer

I've been an entrepreneur since we were called Business Owners. I opened my first company in 1979 - the only one that ever lost money. In 1994 I started coaching other business owners dealing with the struggles of growth. In 1998 I became the third President of the International Coach Federation. (That's a story for another day.) Coaching just the owners wasn't enough for some. So I began to do organizational coaching as well. Now I don't have time to work with as many companies as I'd like, so I've packaged my techniques into this Virtual CEO Boot Camp.

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