In this case, we are faced with a company that has been very successful with TQM and with lean. It has had some 18 years of success with these systems. Yet, top management has recognized that a change in the business model is needed, with the demands shifting from quality and cost (which have now become order qualifiers, whereas previously they were order winners) to innovation. With the changes in the customers and their requirements and in the value proposition, the capabilities of WTM have to change. The challenge facing you is that of bringing about this change.
Consequently, to deal with the issues laid out in this case, you must:
1. Understand the attraction of lean and its impact on the culture of the company. In other words, can you explain why the firm was successful in making the transition from the old system to the Lean/Six Sigma system?
2. Explain why the employees are so hesitant to embrace innovation over lean. What is it about the innovation strategy that has caused employees not to embrace this strategy so enthusiastically (it would be useful to compare the attractions of lean with the attractions of innovation)?
3. Assess whether the innovation strategy is necessary and important to the future of WTM?
4. Understand the challenges facing management as it shifts attention from lean to innovation (hint – this is an example of a radical shift in strategy)
5. Develop a plan that can help management successfully make the transition.
**One critical hint – the shift explored in this case is not trivial – superficial solutions will not cut it. A second hint – the analysis must cover issues 1-4; recommendations must focus on 5.