Does the Data Deluge Make the Scientific Method Obsolete?

Posted on September 29, 2008  Comments (6)

The End of Theory: The Data Deluge Makes the Scientific Method Obsolete by Chris Anderson

“All models are wrong, but some are useful.”

So proclaimed statistician George Box 30 years ago, and he was right. But what choice did we have? Only models, from cosmological equations to theories of human behavior, seemed to be able to consistently, if imperfectly, explain the world around us. Until now. Today companies like Google, which have grown up in an era of massively abundant data, don’t have to settle for wrong models. Indeed, they don’t have to settle for models at all.

Speaking at the O’Reilly Emerging Technology Conference this past March, Peter Norvig, Google’s research director, offered an update to George Box’s maxim: “All models are wrong, and increasingly you can succeed without them.”

There is now a better way. Petabytes allow us to say: “Correlation is enough.” We can stop looking for models. We can analyze the data without hypotheses about what it might show. We can throw the numbers into the biggest computing clusters the world has ever seen and let statistical algorithms find patterns where science cannot.

see update, below. Norvig was misquoted, he agrees with Box’s maxim

I must say I am not at all convinced that a new method without theory ready to supplant the existing scientific method. Now I can’t find peter Norvig’s exact words online (come on Google – organize all the world’s information for me please). If he said that using massive stores of data to make discoveries in new ways radically changing how we can learn and create useful systems, that I believe. I do enjoy the idea of trying radical new ways of viewing what is possible.

Practice Makes Perfect: How Billions of Examples Lead to Better Models (summary of his talk on the conference web site):

In this talk we will see that a computer might not learn in the same way that a person does, but it can use massive amounts of data to perform selected tasks very well. We will see that a computer can correct spelling mistakes, translate from Arabic to English, and recognize celebrity faces about as well as an average human—and can do it all by learning from examples rather than by relying on programming.

Related: Will the Data Deluge Makes the Scientific Method Obsolete?Pragmatism and Management KnowledgeData Based Decision Making at GoogleSeeing Patterns Where None ExistsManage what you can’t measureData Based BlatheringUnderstanding DataWebcast on Google Innovation
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Making Life Difficult for Customers

Posted on September 27, 2008  Comments (5)

Companies seem to think technology is an excuse to provide bad service. Or maybe they don’t need any excuse at all to do so, based on how often they provide bad service. My latest experience with lame pointy haired boss technology came while looking to watch a football game online. Years ago you could listen to any Wisconsin Badger game over the internet – very simple, no special software (just the simple free Real Audio plugin). In subsequent years (just to play a simple audio stream that had worked in previous years they kept requiring upgrades and their ever more complex required software would fail very often). Then the option of listen to online radio broadcasts disappeared altogether (for schools that chose to prevent this anyway).

Now sites that provide video seem incapable of making it a simple process. They chose not to use standard open software solutions. Instead they require you follow their desires to use this or that and then the whole operation fails quite often. Google, no surprise, is an exception (yes it worked prior to Google, they were just smart enough to buy it and not break it). YouTube just works. Can others copy this, idea? Some can, but many phbs decide that really everyone that uses their web sites should be happy to try and download special software and make configuration changes… to get their site working on their personal computers.

The idea that playing video online is solved problem and just making it more and more complex is not a good idea for users no matter if they want to add some bullet points to their boss on why they should get a larger raise this year because they got the engineers to add on some additional new feature that no-one actually wants. Granted This solved problem is a bit lame now, so I am all for improving it. But this should be a process that goes for simpler solutions, not more complex ones. And certainly any timed to the operating system of the end user is too idiotic to consider.
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Management Blog Posts From September 2005

Posted on September 25, 2008  Comments (0)

photo of North Cascades National Park

Here are some posts from the blog 3 years ago, this month. I took the photo on my visit to North Cascades National Park.

I have added a page to my personal web site with links to my pages on social web sites: LinkedIn, Reddit, Kiva…).

Dr. Deming’s 15th Point

Posted on September 24, 2008  Comments (0)

Guest post from John McConnell, Wysowl Pty Ltd

Dr. Deming opened his first Australian seminar in 1986 with the question, “What are we here to do”? After some discussion he answered his own question with, “To learn”, and “To have a good time”.

He repeated this opening at subsequent seminars.

The Fifteenth Point
Mr. Murray Mansfield of Melbourne has what I believe to be the only completely up to date version of Dr. Deming’s famous Obligations for Top Management. After a long discussion with Murray during his last Australian seminar, Dr. Deming agreed that there ought to be a fifteenth point. He took Murray’s notes turned to the page containing the fourteen points and at the foot of the page wrote:

15.     Have a good time!

Related: I Don’t KnowFind Joy and Success in Businessposts on respect for peopleDestroyed by Best EffortsLets Play WorkSeven (plus 2) Deadly Diseases of Western Management

Conference Calls with Scholtes and Joiner

Posted on September 23, 2008  Comments (1)

Pratt & Whitney Rocketdyne’s Enterprise Thinking Network Ongoing Discussion series this month features conference calls with Peter Scholtes (Thursday, September 25th, Noon to 2pm Pacific Time – USA) and Brian Joiner (Friday the 26th, Noon to 2pm Pacific Time – USA). See more details and register online.

Peter’s books (The Team Handbook and The Leader’s Handbook) are thought pieces for Thursday’s conversation with Peter. As a place to begin the conversation with Peter, we might consider the possibility that teamwork and leadership are perhaps even more in our awareness today than when Peter wrote these books. And if you’d like to explore more of Peter’s thinking and writing, see also a variety of articles and letters by and about Peter at his website.

Brian has offered us several Thought Pieces related to his current work. According to Brian, “The thing I am most excited about now is the Transition Towns movement which started in the UK a few years ago. It’s what I will be focusing on once the First Unitarian Society green building is effectively launched.” In addition, the following site gives a brief intro to the Transition Town approach, with much more detail on the Transition approach available in their Primer. Says Brian, “I hope this will be enough to start conversations.”

Both Brian and Peter are from Madison, Wisconsin (where I grew up) and both worked with my father: Bill Hunter. Brian Joiner also wrote Fourth Generation Management and co-authored the Team Handbook with Peter.

Related: Curious Cat Essential Management BooksBrain Joiner on Dr. DemingTotal Quality Leadership vs. Management by Control by Brian L. Joiner and Peter R. Scholtes

The Ergonomics of Innovation

Posted on September 22, 2008  Comments (0)

The Ergonomics of Innovation by Hayagreeva Rao and Robert Sutton

the IHI case teaches us that innovations spread quickly when organizations focus relentlessly on selecting and spreading ideas in ways that ease the burden of thought and action for everyone involved. This mind-set differs from the one that burdens most organizations, where innovation
is seen as difficult, expensive, and protracted. The IHI staff’s ergonomics-of-innovation mind-set focused on making things easier and cheaper for everyone, including the staff itself.

IHI focused on small things that had a big impact without placing a big load on hospital staffs (reducing the number of infections, for example, hinged on frequent and thorough hand washing). In this way, the organization adopted what Karl Weick calls a “small wins” strategy.

Berwick and his team believed that simply asking hospital staffs to “try harder” to save lives wasn’t enough; people need concrete, easily learned and implemented tools.

Related: Saving Lives: US Health Care Improvement5 Million Lives CampaignPBS Documentary: Improving HospitalsHospital Reform – IHI on CBSArticles on Improving Health Care PerformanceDrug Prices in the USAposts on innovation

Guess What? Manufacturing in the USA is a Good Idea

Posted on September 20, 2008  Comments (0)

More people learning about manufacturing truths lean thinkers have known for a long time. Made (again) in America

Thomasville Furniture and Exxel Outdoors, a maker of camping gear, have both said they now are making products in the U.S. that they once outsourced to China; both have attributed the move to the soaring cost of transporting goods.

But other longtime outsourcers, such as Regal Ware Inc., a 500-employee maker of high-end cookware (sets go for as much as $4,000), have discovered that manufacturing abroad has another drawback: it isn’t nearly as efficient as they had hoped.

“We either had too much inventory, or not enough” of the products Regal Ware outsourced to China, says Jeffrey Reigle, CEO of the Kewaskum, Wisc.-based company. “We figured there had to be a better way.”

The better way, it turns out, proved to be right under his nose, at two Wisconsin plants where Regal Ware has produced stainless steel pots and pans for more than 50 years.

Learn more about lean manufacturing.

Related: Lean Manufacturing Saving Jobs AgainMade in the USA (2006)Workplace Management by Taiichi OhnoNew Look American ManufacturingWisconsin Manufacturing

Webcast on the Toyota Development Process

Posted on September 18, 2008  Comments (0)

Kenji Hiranabe talks about Toyota’s development process (webcast). Kenji shares a presentation he attended earlier this year by Nobuaki Katayama, a former Chief Engineer at Toyota, and the lessons he learned from him.

The webcast takes awhile to get going. If you are impatient you might want to start at the 6 minute mark. Some thoughts from the talk:

  • Voice of the Customer is diffuse. A strong concept (for a project – new car for example) is very important to focus thought, listening to voice of the customer is important but must use strong concept to avoid losing focus (due to diffuse customer feedback).
  • Honest face to face communication is important. Bad news first – present bad news first [don't try to hide bad news - my thoughts in brackets, John Hunter].
  • Everyone must think about cost reduction, many efforts add up to big impact [the importance of reducing waste everywhere].
  • benchmark, not to copy others, but to learn from what others do well.

The webcast includes a nice (though short) discussion of agile management in software development and lean manufacturing (the different situation of manufacturing versus software development). Kenji Hiranabe has also translated several agile and lean books into Japanese including Implementing Lean Software Development.

Related: Kenji Hiranabe’s blogMarissa Mayer Webcast on Google InnovationArticles and webcasts by Mary PoppendieckFuture Directions for Agile ManagementInterview with Toyota President

Agile PDSA

Posted on September 16, 2008  Comments (0)

Dr. Deming encouraged the use of the Plan-Do-Study-Act cycle to improve. Agile Management encourages a similar mindset – to test out ideas in practice and adapt quickly. A key to both strategies is to quickly iterate over possible solutions. Tesco provides an example of this strategy:

This was our first opening since we took our 12 week pause, after we had opened 61 stores at breakneck speed. We used that time to reflect on what customers had told us they liked, and what they’d like to see improved – and then to improve the shopping trip for them.

For example, customers told us that they really liked our prepared meals, made fresh daily in our purpose-built kitchen, but they wanted a wider selection to choose from. So we’ve developed and introduced a number of new products for them.

Of course, you could argue that this is all a sign of weakness, that we had got things wrong. But that would be to misunderstand the way we do business.

Listening, and then acting on it, is in our view the way to build long-term relationships with customers. It means our shopping trip is always improving, and staying in tune with changing needs. It’s a simple win-win. Customers get a better and better shopping trip, and we become more successful.

At the time Tesco paused the expansion I mentioned it seemed to me they should have allowed more time for PDSA.

To me, it is enormously important to design management systems that support and encourage continual improvement. That is much more important than superior results today. Results today are also, important, but a choice between an inflexible system that produce good results today and a flexible system with results not quite as good is not a close choice. Good management improvement requires continual improvement and therefore systems must be designed to support and encourage continual improvement.

Related: Experiment Quickly and OftenI own Tesco stockmanagement improvement tipsTesco: Lean Provision

Management Improvement Carnival #43

Posted on September 15, 2008  Comments (0)

Read the previous management carnivals. I posted on a new tool for finding management resources online, I will monitor the management Reddit for popular new blog posts to include in future carnivals.

  • Where Does Bad Corporate Culture Come From, and Can It Be Corrected? by Tim Prosser – “while it is natural for bad organizational culture to develop, this tendency can be countered and a more positive and productive organizational culture can be produced, though it requires savvy and introspective management.”
  • Toyota’s Commitment to People by Mark Graban – “I’m sure keeping the workers on and training them (with real work, not just letting them sit in the cafeteria) is all about the long-term good of the company.”
  • Consulting is easy by Pascal Van Cauwenberghe – “Real Lean is making use of the collective wisdom of everybody in the organisation.”
  • Prioritizing and Planning for Market Risk by David Anderson – “Matts-Maassen tells us to push back decisions as far as possible and to gather information, create options and understand when they expire. This helps us to optimize decision making and minimum the risk of a decision being a bad one.”
  • An IT Guy Gets Lean by Kevin Meyer – “This isn’t to mean that all software is a problem, and we definitely believe that software tools, appropriately deployed, can create value. But more often than not they mask waste and reduce the ability to change by enforcing rigid processes”
  • 5 Things I am Still Learning about Lean Manufacturing by Jon Miller – “maybe I am only just learning that if you properly take care of the people issues first, the factory will fix itself.”
  • Congratulations. You’ve mapped out the future state. Now what? by Dan Markovitz – “Establishing standard work, understanding limits and leveling the workload so as not to overload people, allowing them to actually create the future state they’ve mapped out — this is a humane, rational, and far better way to work.”
  • The problem with single points of failure – “Companies can’t rely on people like me, or Dr. Hammer, to be their single point of failure. A great process or great ideas must be capable of going on without you.” – I wrote on a similar topic for the Curious Cat Management blog in May: Well Managed Companies
  • Lean Tutorial: Production Capacity Template by Ron Pereira – webcast walks through using a spreadsheet (template included in the post) to manage the production line.
  • Future Directions for Agile Management by John Hunter – “Deliver working systems quickly (with limited features, add features based on user needs)… Build systems that cope well with uncertainty and allow for constant continuous improvement of processes”

Top Blogs for Software Development Managers

Posted on September 14, 2008  Comments (0)

I am happy to say our blog has been included in the Top 100 Blogs for Development Managers. The list of blogs is quite impressive, including blogs referenced here previously: Joel on Software (ranked 1st), Coding Horror (2nd), Seth Godin’s Blog (3rd), Paul Graham’s essays (4), Signal vs. Noise (40), Agile Management Blog (43) and Lean Software Engineering (68). The Curious Cat Blog is ranked 41st.

You can read our software development category to get our posts specifically related to that topic. Some specific software development related posts that might give you a flavor for the blog: Software Supporting Processes Not the Other Way AroundFuture Directions for Agile ManagementMetrics and Software DevelopmentThe Defect Black Market. And hopefully many of our other posts will also help software development managers.

These, and similar, rankings don’t mean much, other than according to the criteria used this is now they ranked. Still it is nice to see the Curious Cat Management Improvement blog was nominated and according to the criteria used did so well.

Related: #2 Engineering BlogPerformance without AppraisalSearch Share Data, Checking the ACSIBest Research University Rankings (2008)

National Museum of the American Indian Photos

Posted on September 11, 2008  Comments (0)

photo of the National Museum of the American Indian, Washington DC photo of a Mayan Calendar

Photo of the National Museum of the American Indian in Washington DC by John Hunter. The museum is the newest addition to the collection of Smithsonian museums on the Mall. The second photo is of a Mayan calendar. Photos can be used with attribution.

Related: Botanical Garden, Washington DCMount Saint Helens National Volcanic MonumentThe Cloisters Museum, Manhattan

Our Failed Health-care System

Posted on September 10, 2008  Comments (0)

The bad idea behind our failed health-care system by Malcolm Gladwell

One of the great mysteries of political life in the United States is why Americans are so devoted to their health-care system.

Americans spend $5,267 per capita on health care every year, almost two and half times the industrialized world’s median of $2,193; the extra spending comes to hundreds of billions of dollars a year. What does that extra spending buy us? Americans have fewer doctors per capita than most Western countries. We go to the doctor less than people in other Western countries. We get admitted to the hospital less frequently than people in other Western countries. We are less satisfied with our health care than our counterparts in other countries. American life expectancy is lower than the Western average.

Health Savings Accounts represent the final, irrevocable step in the actuarial direction. If you are preoccupied with moral hazard, then you want people to pay for care with their own money, and, when you do that, the sick inevitably end up paying more than the healthy. And when you make people choose an insurance plan that fits their individual needs, those with significant medical problems will choose expensive health plans that cover lots of things, while those with few health problems will choose cheaper, bare-bones plans.

In the rest of the industrialized world, it is assumed that the more equally and widely the burdens of illness are shared, the better off the population as a whole is likely to be. The reason the United States has forty-five million people without coverage is that its health-care policy is in the hands of people who disagree, and who regard health insurance not as the solution but as the problem.

This is another article with an interesting take on the problems with the broken health care system in the USA. I don’t totally agree with the conclusion. I think the failure of the system and refusal to make substantial change have multiple causes including: smart lobbyists paying politicians lots of money to support their interest in keeping the current system, people being fearful about change, false perceptions about the system performance (thankfully an understanding of the poor performance is becoming more widespread recently), that the system works least poorly for the wealthy who have more influence than those without insurance, that the benefits of spending huge amounts today are going to specific companies and people and thus are available for buying political support (not just paying politicians but also funding marketing campaigns, experts to provide journalists the position of those in favor of the existing system…) while the benefits of changing are much more distributed. Luckily companies are increasingly – decades after Deming noted this health care costs are a huge problem for companies in the USA – focusing on the need for improving what is often one of the largest expenses for companies. The issue many fail to understand is how much the excessive costs of health care in the USA harm the ability of companies in the USA to compete – many even fail to appreciate the human cost of tens of millions of people without health insurance.

Related: Drug Prices in the USAMeasuring the Health of NationsOverview of 5 Nations Health Care SystemsFixing Health CareImproving the Health Care System

New Management Truths Sometimes Started as Heresies

Posted on September 7, 2008  Comments (0)

‘New’ management truths sometimes started as heresies by Cecil Johnson

“The most effective management ideas follow a life cycle — from heresy to outlier (championed by a small group of people) to ingrained practice to conventional wisdom,” Kleiner writes. “In the process, if they are genuinely powerful management ideas, they distinguish the organizations that adopt them.”

One of the management heresies focused upon by Kleiner that has morphed into accepted management wisdom of the highest order is the Toyota Production System, which embraces much of the thinking of heretical quality advocate W. Edwards Deming. That system, Kleiner reminds the reader, entrusts teams at each station in the assembly process to control their local operations. Performance is not evaluated on a predetermined numeral basis.

I agree with this idea except the implication that these ideas are accepted now. To the extent they are excepted it is only a surface understanding of a couple of tools and concepts. The true power of the new ideas are still adopted in a very small number of organizations. Thankfully small initial steps are being made but there is much more to be done, before we can think of these ideas as accepted.

Which of Dr. Deming’s seven deadly diseases of western management have been effectively addressed in several decades? My opinion? Zero. Granted 2 are probably closer to economic failures (political issues that management could have spent time trying to fix but not really in the control of a single company): excessive medical costs and excessive legal damage awards.

Excessive legal damage awards was the one disease most business school graduates would have agreed was a disease decades ago, and they still do. They have spent a great deal of effort to reform the legal system, but have not been effective. Many now agree the health care system is broken. But I would say less than 50% understand this, even decades later, even after the situation has deteriorated much further. And certainly little effective effort at improving the health care system has been made. At least in the last 5 years some real efforts are being made by senior executives as some companies.

And I strongly believe Dr. Deming would see the current unjustified taking of companies resources by CEOs for their own use, in ludicrous pay packages, as a new disease. If these “new” (the system of management ideas are at least 30 years old, as a system, and it has been 60 years since Dr. Deming present them in Japan after World War II) management ideas were common, such horrible behavior as we continue to see would not be tolerated.

Related: Deming CompaniesToyota Execution Not Close to Being CopiedManagement Advice FailuresPurpose of an OrganizationNew Rules for Management? No!

Management Articles, Posts…

Posted on September 4, 2008  Comments (1)

Reddit is a web site that ranks web pages by user votes. If you login and vote yourself they will develop a pattern of what you like and can show you a list of the pages you are likely to enjoy. I believe this is done by matching your likes and dislikes with others. When showing you a list of recommended links it gives some importance to up votes by anyone and more priority to up votes by those that have shown a tendency to like what you do.

I have recently setup a management sub-reddit (a distinct topic-focused-area on the management improvement topics covered in this blog). If you sign up you can not only vote on the links displayed but add new links (that then will be voted on by others). I think Reddit does a very good job of using social aspects of the internet to provide recommendations that are worthwhile (I have used the site for years). The success of this management subreddit depends on reaching a critical mass of users. So I encourage you to give it a try and vote on links you enjoy and add new articles, web sites, blog posts… The benefit of this subreddit will grow as we grow the number of participants.

I have also recently added a page to johnhunter.com with links to my online presence on various sites (such as: StumbleUpon, Kiva, LinkedIn…).

Related: Dell, Reddit and Customer FocusCurious Cat Management Improvement SearchCurious Cat Management Improvement Library

Seth Godin: Intern Program and the Internet

Posted on September 3, 2008  Comments (0)

Learning from a summer intern program:

I was overwhelmed by the quality of what I got back. (The quantity was expected… interesting internships are hard to find). I heard from students on most continents, with a huge variety of backgrounds and life experiences. And these people were smart.

Unable to just pick a PDF or two, I invited the applicants to join a Facebook group I had set up. Then I let them meet each other and hang out online. It was absolutely fascinating. Within a day, the group had divided into four camps:

* The leaders. A few started conversations, directed initiatives and got to work.

If you’re hiring for people to work online, I can’t imagine not screening people in this way. This is the work, and you can watch people do it for real before you hire them.

Excellent post and the advice echoes his advice on hiring: the End of the Job Interview. We have an internship directory, that helps people find opportunities (and those with internships to offer a way to market it) which includes a list of virtual internships.

Related: Seth Godin on Marketing and the InternetInternships IncreasingCurious Cat Management SubReddit

Hiring the Right Person

Posted on September 2, 2008  Comments (1)

Malcolm Gladwell presented at the New Yorker conference on the Challenge of Hiring in the Modern World. As usually, he provides some great thoughts. I wrote on Hiring the Right Workers

The job market is an inefficient market. There are many reasons for this including relying on specification (this job requires a BS in Computer Science – no Bill Gates you don’t meet the spec) instead of understanding the system. Insisting on managing by the numbers even when the most important figures are unknown and maybe unknowable. Using HR to find the right person to work in a process they don’t understand (which reinforces the desire to focus on specifications instead of a more nuanced approach). The inflexibility of companies: so if a great person wants to work 32 hours a week – too bad we can’t hire them. And on and on.

Malcolm Gladwell doesn’t use the same language but I think he says many of the same ideas: “Insisting on managing by the numbers even when the most important figures are unknown and maybe unknowable.” etc. This idea he frames as a mismatch problem.

Related: Hiring: Silicon Valley StylePeople are Our Most Important AssetMalcolm Gladwell SynchronicityHiring, Does College Matter?Interviewing and Hiring ProgrammersGladwell (and Drucker) on Pensions

Management Improvement Carnival #42

Posted on September 1, 2008  Comments (0)

Shaun Sayers is hosting the Management Improvement Carnival #42 on the Capable blog, highlights include:

  • How to change the way we think about customer service (by Maria Palma) “it is not that people don’t care about relationships and don’t consider Service Excellence their job … it is simply that they do not appreciate the significance that their interactions may have on the person or client they are serving”
  • 3 Steps to Statistical Thinking (by Rob Thompson) – “HG Wells: When you can measure what you are speaking about and express it in numbers, you know something about it. When you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind”
  • If Peter Piper Picked a Peck of Prioritized Projects… (by Sue Kozlowski) even if significant costs can be saved – even if reliability can be improved – even if staffing efficiencies can be realized – if the project or deployment champion isn’t engaged, you may end up with a beautiful project that won’t be sustained
  • Is long term goal driven planning a waste of time? (by Shaun Sayers) like the idea of an after-life, it’s nice to think that we can develop and execute long-term plans, because the alternative may be an uncomfortable thought
  • Operational excellence is not a substitute for effective leadership or a good strategy (by Peter Abilla) Deploying a Lean or Six Sigma culture within your firm … is not a panacea; by itself, a culture of Operational Excellence will find itself lacking in a hyper-competitive world

Please submit your favorite management posts to the carnival. Read the previous management carnivals.

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