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The Curious Cat Management blog carnival selects recent management blog posts 3 times each month. Also visit the Curious Cat Management Library for online management improvement articles.
Toyota’s journey from Waterfall to Lean software development by Henrik Kniberg
A modern car is pretty much a computer on wheels! In a hybrid car about half of the development cost is software, it contains millions of lines of code as all the different subsystems have to integrate with each other. He mentioned that a Lexus contains 14 million lines of code, comparable to banking and airplane software systems. Ishi-san concluded that “Therefore Toyota needs to become an IT company”.
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Most of Toyota’s ideas about how to do Lean software development resonated well with me. My feeling was that they are on the right track.
One thing bothered me though – the extreme focus on detailed metrics. I agree with the value of visualization, standardization, and data-driven process improvement – but only if used at a high level. My feeling was that Toyota was going to far. They say engineer motivation is critical, but how motivating is it to work in an organization that plans and measures everything you do – every line of code, every hour, every defect, how many minutes it takes to do an estimate, etc?
via: Justin Hunter
Related: Toyota IT Overview – Toyota Canada CIO on Genchi Genbutsu and Kaizen – Lean Software Development – My First Trip to Japan by Peter Scholtes – Toyota IT for Kaizen
Bill George is professor of management practice at the Harvard Business School and former chairman and CEO of Medtronic, the world’s leading medical technology company. Under his leadership, Medtronic’s market capitalization grew from $1.1 billion to $60 billion, averaging 35 percent a year. He is the author of the best-selling Authentic Leadership and a board member of Goldman Sachs, Target, and Novartis.
His board membership at Goldman Sachs certainly leaves him with something to answer for (which I don’t think he does in this webcast). With the damage that company has done to the USA economy you certainly can’t excuse a board member of responsibility for the actions that company has taken. You can listed to his first few minutes and don’t get the idea that he was a leader of the company most responsible for the credit crisis.
His words do sound nice but seem a bit short on much new. Lots of the “new leadership ideas” (like today you can’t have one leader that everyone follows – isn’t that at least 20 years old as a well know bad idea?). Also the idea that an organization exists to provide value to customers not to maximize shareholder value. I understand more people do not understand this point, so it is nice a Harvard MBA professor is pushing this idea (but again it isn’t new at all).
I guess I am a little disappointed in the video but others seem to like it and I do think he makes worthwhile points, just nothing really special (from where I sit). I did like how he discussed value tests come in real life.
I share what seemed to be his opinion that talking abstractly about values is less important than actions you take in the real world. I must admit I am getting more and more frustrated in the lack of moral and ethical values in those with power in our society (this is my feeling, not the speakers). And I do not have must patience for their ability to try to explain away their unethical behavior. I repeatedly see our lack of accountability of those with power (just look at how many people are in jail for all the hundreds of billions of financial fraud in the last few year (what maybe 5 people? 10?) and compare that to those in jail for much much less damaging crimes that have less power). His blog has some posts worth reading.
Related: Jeff Bezos Spends a Week Working in Amazons Kentucky Distribution Center – Harvards Masters of the Apocalypse – An Introduction to Demings Management Ideas by Peter Scholtes (webcast) – Eric Schmidt on Management at Google – Looting: Bankruptcy for Profit
The Curious Cat Management Blog Carnival provides links to recent articles to help managers improve the performance of their organization.
Automated software testing is a mistake proofing (poka-yoke) solution for software development.
The way automated testing works is that software code is written that tests the software code of the application. This automated testing code test that business rules are correctly being followed by the code in the application.
So for example, a user should not be able to create a new account without entering password. Then you create code that does not allow an account to be created without a password. And you write a test that passes if this is true and fails if it is false.
The best implementation will then not allow deploying code to your production environment until the code has passed all the automated tests. So if a software developer changes the code, the automated tests are all run and if there is an error noted by the automated testing the code cannot be deployed to the production environment. So, in the example above, if somehow the changes made to the application code somehow now let an account be created without a password the test would fail, and the developer would know to fix the problem before putting the code into production.
Thus automated testing mistake proofs the process. Now the mistake proofing is only as good as the test that are added. Software development is complex and if the code has an error (based on the business rules) that is not tested then the code can be deployed to production and affect customers. But it is a huge help in preventing many errors from affecting customers.
It seems pretty obvious but until the widespread adoption of agile software development techniques and frameworks that make it easy to adopt automated testing (like Ruby on Rails) this sensible process improvement tool was used far less often than you would think.
Related: Combinatorial Testing for Software – Metrics and Software Development – Checklists in Software Development – Google testing blog – Hexawise software testing blog
This interview with David Langford discusses how to improve education using ideas from Deming. Along with Alfie Kohn, David have long been the learning and management experts I find most valuable.
I have long remembered is his idea that he was the CEO of his classroom. On hearing Deming discuss how critical it was to have the CEO active in a management improvement effort to achieve success he tried to get those above him in the organization chart to change. Which didn’t work very well. Seeing that method was not successful he took a new look and decided to view the problem in a different way.
He looked for what he was in charge of and decided he could decide how to run his classroom. I think this is a very valuable idea for anyone looking to improve their organization. What is your sphere of control? Focus on how you can improve there. Don’t just try to change others. See how you can change and improve what you can.
The interview provides a good insight into the great ideas David has.
Anyone interested in improving education should listen to this interview and search out more ideas from David Langford and Alfie Kohn. I really like David’s capacity matrix.
Related: Orchestrating Learning With Quality by David P. Langford and Barbara A. Cleary – K-12 Educational Reform – Deming on being Destroyed by Best Efforts
The Curious Cat Management Improvement blog carnival provides links to recent blog posts for those interesting in improving management of organizations.
How Much Do You Hate Performance Reviews? by Bob Sutton
Related: The Trouble with Performance Reviews by Jeffrey Pfeffer – Deming and Performance Appraisal – Performance Appraisals, Good Execution is not the Solution?
“After a certain basic point, which translates, more or less, to just a few thousand dollars above the minimum poverty level, increases in material well being don’t see to affect how happy people are.”
The speech includes, the first purpose of incorporation at Sony:
To establish a place of work where engineers can feel the joy of technological innovation, be aware of their mission to society, and work to their heart’s content.
Excellent books by Mihaly Csikszentmihalyi:
Flow: The Psychology of Optimal Experience by Mihaly Csikszentmihalyi, 1991. People enter a flow state when they are fully absorbed in activity during which they lose their sense of time and have feelings of great satisfaction.
Good Business: Leadership, Flow, and the Making of Meaning.
Creativity: Flow and the Psychology of Discovery and Invention by Mihaly Csikszentmihalyi, 1997. Drawing on hundreds of interviews with exceptional people, from biologists and physicists to politicians and business leaders to poets and artists, the author uses his famous “flow” theory to explain the creative process.
Related: Extrinsic Incentives Kill Creativity – posts on psychology Interviews with Innovators – Innovation Strategy – The Purpose of an Organization – Flow
The Curious Cat Management blog carnival highlights management blog posts 3 times each month. Also visit the Curious Cat Management Library for online management improvement articles.
Buffett’s New CEO Shows Analysts, Hedge-Fund Managers to Door
“When I started as CEO 10 years ago, the typical investor had a time frame of three to five to seven years,” Rose said in an interview. “Year-by-year, that’s gotten shorter.”
The increased focus on short-term results, fueled by real- time media and quarterly analyst calls, can be a distraction for a railroad executive who needs to buy locomotives that run for 20 years and put down tracks that last for 40, Rose said. Burlington Northern said last month it would commit $2.4 billion this year to capital projects, including track, signal systems and locomotives, about $240 million less than in 2009.
“The money I spend this year really won’t pay off for three, four, five or seven years down the road,” said Rose, 50. “There’s the advent of the hedge fund which has changed the time horizon of what satisfies the institutional investor.”
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“The speed of the news today I think has harmed, quite frankly, investors looking at long-term assets,” Rose told reporters in a news conference this week. A long-term perspective is “one thing that our country has kind of lost sight of, not just for the railroad equity investor but for a lot of investors.”
Decades ago Dr. Deming said short term focus was one of the seven deadly diseases of western management. Unfortunately we have made very little progress on the deadly diseases. The failed, health care system with it’s focus on a few special interests fighting to keep the broken system that does great harm to society but benefits the special interests is another a disease that has definitely gotten much worse.
Related: Think Long Term Act Daily – posts related to Warren Buffett – Goodbye Quarterly Targets – A Great Day for Georgia-Pacific
Since 2006 the Curious Cat Management Improvement Carnival has provided links to interesting blog posts for those interesting in improving the practice of management especially focused on the ideas of Deming, Ohno, Ackoff, Scholtes, McGregor, Womack, Christensen…
Lay Off the Layoffs by Jeffrey Pfeffer
Related: Five Managerial Fallacies Concerning Layoffs – Honda has Never had Layoffs and has been Profitable Every Year – The Trouble with Performance Reviews by Jeffrey Pfeffer – Cutting Hours Instead of People – Firing Workers Isn’t Fixing Problems
In, The Seven Habits of Highly Effective People, Steven Covey discusses the circle of control, circle of influence and circle of concern. This provides a good framework from which to view issues as you look for improvement strategies.
Within your circle of control you have much more autonomy and have less need to win others over to your plan. However, in practice, even here, you benefit from winning over those who are involved (for example you are their boss).
Our circle of concern covers those things we worry about. Often, we believe because we worry we should find solutions. Problems that fall into this category (but outside our circle of influence) however often prove difficult to tackle. And often people don’t understand why they get frustrated in this case. You can save your energy for more productive activities by seeing some things are outside your influence and avoid wasting your energy on them.
A problem with this, I see in practice however, is that if you are creative many things that people think are beyond their influence are not. With some imagination you can find ways to have influence. Good ideas are powerful. And often that is all that is needed for influence is offering a good idea.
Understanding to what extent an issue is within your control or influence can help a great deal in determining good strategies. Where you have a good chance to influence the process you can focus on strategies that may require much more of your participation to be successfully adopted. As you have less influence such a strategy is likely a poor one.
You should remember, that there is a temporal component to your circle of influence. On some current issue, I may have a very low chance of success for getting the organization to adopt an improvement I think is best. But certain actions can build the understanding that will allow me later to have more influence. This can even be completely separate from how people normally think of circle of influence. By building an organization that moves toward data based decision making and therefore reduces HiPPO (Highest Paid Person’s Opinion) decision making I increase my ability to influence decision making in the future.
Long term thinking is a very powerful, and much under-practiced, strategy. Your influence within an organization is limited today but has great potential to expand, if you act wisely.
Thinking about the extent a current issue falls within your sphere of influence is important it determining the best strategies. But the most valuable insight is to understand how import your sphere of influence is. It determines what strategies you can pursue. And building your sphere of influence should be part of your decision making process.
By taking the long view you can put yourself in good positions to have influence on decisions. There are many ways to do this. My preferred method is fairly boring. Prove yourself to be valuable and you will gain influence. Help people solve their problems. They will be inclined to listen to your ideas. Provide people useful management tools and help them apply them successfully. Help get people, that you know are good, opportunities to succeed. Often this gains you two allies (the person you helped gain the opportunity for and the person that was looking for someone to step in). Work hard and deliver what is important. It isn’t some secret sauce for quick success but if you make those around you successful you grow your circle of influence.
Related: How to Improve – Helping Employees Improve – Operational Excellence – Management Advice Failures – Management Improvement
Some interesting thoughts from a new Google engineer, Things I’ve learned at Google so far
I think he overestimates the lack of central planning, still it is another interesting view of Google.
Related: Eric Schmidt on Management at Google – Google: Ten Golden Rules – The Myth of the Genius Programmer

Slogans mainly are bad. But like most things they can be used in ways that help or hurt. The main problem is when they substitute for a method to achieve the aim (most of the time). If the slogan serves like a mission statement to focus people on something useful to focus on and it is one minor part of a system to achieve a result it can be fine and even useful.
The issue, to me, is not so much that slogans are innately horrible. It is that, in practice, slogan are used in harmful ways most often (especially outside of sports). They tend to substitute for system improvement. The main work of shifting psychology (we do expect to win now, we do expect a focus on reducing bugs in our code…) after years of creating a different culture has to be in changing methods, priorities, values… Slogans, if done right, can be a way of focusing on the change. Or they can be a real reminder of values. But the slogan only provides value as part of a system confirming the aim they emphasis.
Unfortunately, they also to be used as a way to focus criticisms on individuals. Don’t you know/care that our slogan says zero defects? Can’t you read? Jeez, I even put up a huge poster with our slogan saying zero defects and you can’t even do what it says in this beautiful poster? Well, I will give you a bad performance review now, you can’t say you don’t have that coming after you failed to do what our slogan told you to do.
A slogan by itself has negative value. Take any wonderful slogan and move it somewhere else it will do more harm than good. As a minor part of a system though it can tap into how we people think and act (psychology) and provide value. Be careful though, it is much easier to do harm with slogans than to provide value.
If the slogan emphasizes what is being practiced every day, it can be a helpful reinforcer. If it conflicts with what is done every day it breeds cynicism and shows disrespect for people. This which is a huge problem. And managers have to know it is very easy for people to see the lack of cloths on the emperor slogan. Dilbert does a great job showing the risks of using slogans. Those you are targeting the slogan to are more likely to think like Dilbert than the they are to think like the pointy haired boss (and if you are the one pushing the slogan that means you are well on your way to being the phb – so be careful).
Slogans clearly fall under Deming’s understanding psychology area of management. To use them effectively you need to make sure the value provided, exceeds the cost and risk. I see no better way to evaluate slogans than through the lens of Deming’s system of management, interdependent components of: psychology, systems thinking, understanding variation and theory of knowledge. If the slogan is not supported by they system of management in place it will do harm.
In response to: Are Slogans Always Bad or Can They Inspire?
Related: Deming on eliminating slogans and motivational posters – Eliminate Slogans – Toyota Targets 50% Reduction in Maintenance Waste – posts on psychology – How to Improve – Stop Demotivating Employees
The Curious Cat Management Improvement Carnival provides links to recent articles to help managers improve the performance organization.
Gipsie B. Ranney has a great new article – The Trouble with Incentives: They Work
Could it be that physicians, insurers, drug companies, and patients are simply acting rational to the system? The players are incentivized to behave as they do. The system delivers what it is designed to deliver.
She sums it up very well:
Find more articles on management improvement in the Curious Cat Management Improvement Library, including: An Interim Report on Motivation in the Workplace by Gipsie Ranney, Remembering NUMMI by Gipsie Ranney and Improving Problem Solving by Ian Bradbury and Gipsie Ranney.
When you can’t prevent arbitrary targets and rewards based on meeting them the strategy I attempt to put in place is figure out how the system will be distorted in order to meet those targets and then put in measures that will discourage such distortions. It isn’t perfect but can help prevent some of the worst distortions (and degradation of system-wide performance they cause).
Related: Righter Incentivization – The Defect Black Market – Dr. Deming on the problems with managing with targets (and incentives based on them) – Extrinsic Incentives Kill Creativity
The practice of stopping (either the machine automatically detecting a problem and stopping or a person stopping) the line when a problem is detected is part of Jidoka. Jidoka is also highlighting and making problems visible. Jidoka and Just in Time are the two pillars of the Toyota Production System. Today Toyota practiced Jidoka on a large scale: Toyota Halts Sales of Eight Models After Recall
Toyota said it would immediately stop selling the Camry, Corolla and Avalon sedans, Matrix wagon, RAV4 crossover, Tundra pickup, and Highlander and Sequoia sport utility vehicles. It will also stop building those models the week of Feb. 1. All of the vehicles are assembled in the United States or Canada, at a total of five plants.
The models affected accounted for more than a million sales in 2009, 57 percent of Toyota’s American total for the year.
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The most recent recalls follow what Toyota insisted was a companywide effort to improve quality that was started by Katsuaki Watanabe, who served as its president before he was replaced last year by Akio Toyoda, grandson of the companyâs founder.
My guess is there are quite a few people in Toyota that are getting a frustrated that they continue to have problems that they have been unable to successfully address. This strikes is as the kind of action initiated near the top of the organization chart to remind the organization that problems must be addressed immediately. It is not ok to continue business as usually when problems have not been addressed in the Toyota Production System. Toyota is capable of failing to live up to the principles of lean manufacturing. But they also seem to understand this risk and continue to strive to improve. To succeed though they need to improve results – intentions alone are not enough.
Related: Cease Mass Inspection for Quality – Recalls at Toyota and Sony – Reacting to Product Problems – Workplace Management by Taiichi Ohno
This is an interesting video on Deming and American management (by the BBC in 1992): Prophet Unheard. It includes some nice old footage of Deming in Japan. The importance of respect for people is clear and the video also touches on the idea the danger of relying on data (when you do not understand variation and that many important matters and unmeasurable). The video features many snippets of Dr. Deming speaking and includes Don Peterson, Ford CEO; Clare Crawford Mason, If Japan Can, Why Can’t We producer; and Myron Tribus.
Related: Dr. Deming Webcast on the 5 Deadly Diseases – Red Bead Experiment Webcast – Performance without Appraisal – management webcasts
Part two of the documentary explores the Deming Prize, understanding data and the PDSA cycle:
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