Turning theory into reality: Holistic business approach

The term holistic has been used a lot in the business context. Maybe even too much. As well as comprehensive, all-encompassing, extensive, integrated approach. Sounds serious and professional. But what does it actually mean, and is it really so helpful?

From my experience so far, a lot of the customers don't understand its meaning with regards to their company and its benefits.

Defining the term in the business context

Cambridge dictionary defines holistic as:

relating to the whole of something or to the total system instead of just to its parts

Imagine a business like a big puzzle with many pieces. The holistic approach is similar to looking at the whole puzzle, not just the individual pieces. If one piece of the puzzle isn't working well, it affects the other pieces. None of them can fit well.

In simple words, the holistic approach helps businesses do better by making sure everything works well together, just like when all the pieces of a puzzle fit perfectly.

It's like seeing the forest, not just the trees.

Every department, function, and process contributes to the overall success and effectiveness of the organization. A holistic perspective makes it possible to identify areas of improvement, streamline operations, and align strategies to ensure that all elements work together.

Organizations are interconnected and interdependent systems, so rather than focusing on isolated components or departments, it's wiser to take into account the broader perspective, i.e. how different aspects of a company work together to achieve a common goal.

What does it mean in practical terms?

As management often doesn't have the time or the critical distance to see their organization objectively, the smartest solution is hiring consultants specialized in this approach.

In practical terms, consultants use a holistic approach by examining all aspects of a business. They consider how different parts of the company, like its processes, people, and strategies, are connected and influence each other. For example, they don't just focus on one department which may obviously need improvement; they think about how that department works with others and fits into the company's bigger goals.

Just like in medicine where doctors use a holistic approach when treating patients, it's about finding the root causes and not just alleviating the symptoms.

For a holistic approach to succeed, both management and employees must align their efforts.

• Management must provide leadership, resources, and objectives. They should monitor progress, foster collaboration, and support change.
• Employees need to embrace change, understand their role in the bigger picture, collaborate, provide feedback, and keep the customer in mind.

There are many examples from big companies using the holistic approach in their business, so let's name a few:

Apple's design philosophy

Apple's design philosophy is characterized by its holistic approach to product development. They focus not only on individual devices but on how these devices fit into a larger ecosystem. This means creating seamless and user-friendly interactions between hardware, software, and services. Apple's holistic design philosophy has not only resulted in iconic, visually appealing products but has also cultivated a loyal customer base who appreciates the interconnected nature of their devices.

Amazon's customer-centric model

Amazon's success is grounded in its comprehensive customer-centric approach. The company prioritizes the customer experience above all else. This approach is evident in their user-friendly website, personalized recommendations, and efficient logistics and delivery services. By optimizing each aspect of their business, from the online marketplace to warehousing and delivery, Amazon consistently provides a seamless and satisfying shopping experience. The data-driven approach ensures continuous improvement and personalization.

Toyota's production system

Toyota's renowned production system is rooted in a holistic view of manufacturing. It aims to eliminate waste, enhance efficiency, and improve product quality. This perspective covers not only the factory floor but also the entire supply chain. Toyota's pioneering "just-in-time" approach ensures parts and materials arrive precisely when needed, reducing inventory costs and inefficiencies. This has made Toyota a highly efficient and competitive manufacturer, with a strong emphasis on continuous improvement and employee involvement.

Catering to the cautious clients as a consultant

A lot of the clients are still sceptical about utilizing a different approach in their business. It seems like a lot of work and they are still picturing the term holistic as some abstract concept.

But, holistic perspective offers numerous advantages to companies. It enables them to identify which segments of the organization are underperforming or weaker compared to others, because it may not be as obvious as it sometimes seems.

For instance, when evaluating individual departments, it might appear that several are struggling or falling behind. However, when taking a wider perspective, it may become evident that only one department is actually lagging, which subsequently affects the following department. There are numerous examples like this.

While this approach considers the company as a unified entity, it doesn't necessarily imply the merger of departments. It means aligning the company to perceive and analyse the overall organizational objective. This approach grants equal significance and a common purpose to every department, ensuring the company operates at its maximum potential.

So, how to convince sceptical management?

To persuade them to embrace this kind of approach, it's essential to demonstrate its real-world benefits. Data and methodology driven examples should show how to enhance efficiency, reduce costs, and elevate customer satisfaction.

It's equally important to emphasize that the approach aligns with the company's strategic objectives and that small-scale pilot programs can validate its effectiveness.

If nothing else works, sharing competitor's success stories should influence management's perspective, or at least make them think.

By considering the entire puzzle, rather than just individual pieces, businesses can create a stronger, more resilient, and ultimately more successful enterprise.

To paraphrase Aristotle:

The whole is greater than the sum of the parts.

The phrase is often used to explain the importance of synergy and the foundations of Gestalt theory in psychology.

But, the point in this context is that it should be the goal all companies strive for.

This approach, while sometimes met with scepticism from the management, has consistently demonstrated its worth. By aligning all aspects of a company towards a common goal, it simply makes businesses run more efficiently, save money, and serve their customers better.