Posted on February 25, 2010  Comments (3)

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?

Posted on February 24, 2010  Comments (0)

“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

Posted on February 22, 2010  Comments (1)

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.

• Three Surprises About Change by Chip and Dan Health (this is actually the full text of the first chapter of their new book, Switch, they wrote the great Made to Stick previously) – “we don’t promise that we’re going to make change easy, but at least we can make it easier. Our goal is to teach you a framework, based on decades of scientific research, that is simple enough to remember and flexible enough to use in many different situations—family, work, community, and otherwise.”
• The Switch to Kanban – “By limiting the work in progress rather than limiting the work per time Kanban presented a viable alternative we felt better reflected how we actually work, while preserving the discipline necessary to deliver working software multiple times a week.”
• Not Going Away by Lee Fried – “changes in behavior throughout management, discipline to not stray far from the principles for too long and most importantly each and every employee needs to have meaningful and direct involvement in improving their own work.”
• Obvious and Underutilized by Kevin Meyer – “How often do we look for a complex solution to what is really a simple problem? Spend a few million on nightmarish ERP software instead of mapping and improving a process to remove complex flows and massive WIP, which will usually show how simple good manufacturing really is”
• How do you check that you are engaging people? by Bruce Baker – “I take suggestions that recommend fairly specific countermeasures as a sign of higher engagement. When small groups or individuals work really thorough ‘plan phases’ autonomously I take it a sign that they are ‘in the game.’”
• Designing a kanban board – not as simple as you might think by Adam Shone – “Needless to say, this all came out during our first sprint retrospective and our kanban boards have evolved since that first attempt. But it taught me something – you might think that you can draw out your workflow with your eyes closed, but how closely does your theory match reality?”

Read more

Posted on February 17, 2010  Comments (2)

Buffett’s New CEO Shows Analysts, Hedge-Fund Managers to Door

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

Posted on February 15, 2010  Comments (3)

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…

• Putting the Checklist Manifesto to Work by Wally Bock – “Checklists are simple but powerful tools that can help you improve performance without improving either skill or abilities. Use them to take a load off your memory, assure consistent process performance, and remain calm in a crisis.”
• The Role of Purpose and Your Role by Mark Graban – “Are you just laying bricks or are you building a cathedral? You want people to understand their purpose, not just their job description or the tasks that are assigned to them. This is very similar to Jim Womack’s ‘Purpose, Process, People’ model. Your ‘role’ (what you are responsible for) is more than your task assignments” [great post - John]
• Stretch, Don’t Break – 5 ways to grow your people by Mark Hamel – “Make people think. Don’t give people the answers. Help guide and challenge them to apply PDCA thinking – to become experimentalists. This means that people will often fail. Lean leaders must see these failures as learning opportunities.”
• Measurement Misnomers, and Toyota Dealership Problems by Jamie Flinchbaugh – “Any time a measurement is tied to an incentive, then it is likely to be manipulated at some level… Metrics are abstractions, by definition. That means they never truly represent reality… Don’t throw out your measurements. Just know that they don’t give you the whole story. Take the time to understand the current state as it actually happens, through direct observation.”
• Suddenly, Deming is Relevant Again by Art Petty – “I’m also critically concerned about learning from the past and understanding the wisdom of those that came before us. We’ve not yet moved beyond the flaws and failings that Deming saw clearly in the management practices of the industrial revolution. ” [I agree, John - ]
• It’s not a promise, it’s a guess by David Heinemeier Hansson – “Software development is inherently unpredictable… That’s the true value of estimates. That it sets up conversational constraints that can be used as boundaries for trading concessions.”

Read more

Posted on February 11, 2010  Comments (1)

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

Posted on February 9, 2010  Comments (1)

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

Posted on February 6, 2010  Comments (2)

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

Posted on February 3, 2010  Comments (2)

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

Posted on February 1, 2010  Comments (0)

The Curious Cat Management Improvement Carnival provides links to recent articles to help managers improve the performance organization.

• Lean in Sweden: Tools < Thinking by Mark Graban – “Tools have some value, but only in context of lean thinking and the lean management philosophy. Tools aren’t value-less, but thinking is better.”
• Manufacturing starts to come home by Dan Markovitz – “NCR sees domestic manufacturing as key to increasing sales as well. It enables them to make higher value-added products that their customers want.”
• Correlation or Causation? Interceptions and the Playoffs by Jeff Hajek – “this is a classic case of confusing correlation with causation. If this data truly was a cause and effect relationship, meaning interceptions caused losses, fixing the problem would be simple… If you never threw the ball, you could win nearly four out of five times.”
• Learning from Toyota’s Stumble by Steven Spear – “But as we are now sadly seeing, the capacity for developing people can be overstretched. It was not recognizing this and succumbing to the temptation to make growth its first priority that led to Toyota’s current problems.”
• When in doubt, timebox it by Mark Imbriaco – “If we can solve the compatibility problems in those 30 minutes, it will be a nice win and we can make use of the plugin that we want to. On the flip side, we already have a known solution to the problem.”
• Be Proactive – Prevent your problems! by Sonja Hughes – “Monitoring process performance through statistical process control or other performance measures allows us to detect changes or trends so we can take appropriate action before problems occur.”

Read more