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Some of our favorite management improvement books are: The Leader’s Handbook by Peter Scholtes, The Improvement Guide, The Art of Problem Solving by Russ Ackoff, Fourth Generation Management by Brian Joiner and Lean Solutions by James Womack and Daniel Jones.
Find many more books at the Curious Cat Management Improvement Bookstore.


Maslow on Dealing with Authoritarians

Maslow’s hierarchy of needs is well known as a fundamental principle of human psychology. Maslow also said: “It is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail.” Maslow on Management is a great book I was referred to by Kelly Allan. The following quote, from page 92, is quite dramatic and showed an understanding that some people (many CEOs) will just take what isn’t theirs, if others don’t stand up to them.

The correct thing to do with authoritarians is to take them realistically for the bastards that they are and then behave toward them as if they are bastards. That is the only realistic way to treat bastards. If one smiles and assumes that trusting them and giving them the key to the pantry is going to reform them suddenly, then all that will happen is the silver will get stolen, and, also, they will become contemptuous of the “weak” Americans whom they see as spineless, stupid, unmasculine sheep to be taken advantage of… only then… could I teach them… that it is possible for a boss, a strong man, a man with a fist, to be kind, gentle, permissive, trusting, and so on.

Strong language, but what those authoritarians do when they rip apart companies and people lives to serve their own vanity deserves strong words. And unfortunately we have far too few people willing to stand up to the bullies ripping apart our companies. Respect for people, doesn’t mean letting people get away with bad behavior.

Related: How Private Equity Strangled MervynsExecutives Again Treating Corporate Treasuries as Their Money (it isn’t)Five Managerial Fallacies Concerning LayoffsPreaching False Ideas to Men Known to be Idiots

Best Selling Books In the Curious Cat Bookstore

The most popular books in July at Curious Cat Books were, Statistics for Experiments (1st edition), followed by Statistics for Experiments (2nd edition) and the Leader’s Handbook by Peter Scholtes. These books are great, I am happy others have been finding them and reading them. Statistics for Experimenters is co-authored by my father.

Top sellers so far this year (adding together all editions, including Kindle):
1) The Leader’s Handbook
2) Statistics for Experimenters
3) New Economics
4) Abolishing Performance Appraisals
5) The Team Handbook
6) Out of the Crisis

The Leader’s Handbook is far away in the lead. The order of popularity on Amazon overall: 1) Out of the Crisis, 2) New Economics, 3) The Team Handbook, 4) Abolishing Performance Appraisals, 5) Statistics for Experimenters and 6) The Leader’s Handbook. The only thing that surprises me with the overall numbers is the Leader’s Handbook. The Amazon rankings are hugely biased by recent activity (it isn’t close to a ranking of sales this year). Still I expected the Leader’s Handbook would rank very well. It is the first book I recommend for almost any situation (the only exceptions are if there is a very specific need – for example Statistics for Experimenters for multi-factorial designed experiments or The Improvement Guide for working on the process of improvement.

My guess is Curious Cat site users (and I am sure a fair number of people sent by search engines) are much more likely to buy those books I recommend over and over. Still many books I don’t promote are bought and some books I recommend consistently don’t rack up many sales through Curious Cat.

I started this as a simple Google+ update but then found it interesting enough to expand to a full post. Hopefully others find it interesting also.

Related: Using Books to Ignite ImprovementWorkplace Management by Taiichi OhnoProblems with Management and Business BooksManagement Improvement Books (2005)

The aim of leadership is not merely to find and record failures of men

The aim of leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to bring pride of workmanship to people. Put in a negative way, the aim of leadership is not merely to find and record failures of men, but to remove the causes of failure: to help people to do a better job with less effort.

W. Edwards Deming, page 248, Out of the Crisis

This is a great quote, from Deming’s classic Out of the Crisis. He continues with the following lines:

Actually, most of this book is involved with leadership. Nearly every page heretofore and hereafter states a principles of good leadership of man and machine or shows an example of good or bad leadership.

I recommend Out of the Crisis for those that are serious about improving management. The book isn’t as easy to read as some management books, but the value within its covers is enormous. Deming’s 14 points for management are meant to help tie together various ideas (they not meant to be complete as a stand alone list). The 14 points were included in Out of the Crisis. He evolved to explaining his management ideas using the system of profound knowledge as a better way to capture the systemic nature of the management system. Dr. Deming’s point number 7 (in his 14 points) was to “Adopt and institute leadership for the management of people, recognizing their different abilities, capabilities, and aspiration.” His quote above explains that leadership was not some idea of being charismatic or commanding or the like but leading a system of people using all the ideas laid out in Out of the Crisis (many of which people don’t usually think of when thinking of leadership – such as using control charts).

Far too many leaders think their role is to hold people accountable. Such thinking shows much that is wrong with those that seek simple answers instead of improvement.

Related: Management and Leadership quotes by Dr. Deming The Best Leadership Is Good ManagementProblems with Management and Business BooksLeadership is the act of making others effective in achieving an aim.The Leader’s Handbook

Problems with Management and Business Books

We really need to change how we improve the practice of management. Far too often management strategies are just the latest fad from some new book that successfully marketed an idea. The marketing effectiveness of a book, or consultant, has very limited correlation to their ability to improve management, in my experience. It is often true that they make very good keynote speakers, however. So if you want an entertaining keynote speaker looking at the authors of the best selling business books may make sense. But if you want to improve management, I don’t see much value in doing so.

Year after year we have the same basic business books repackaged and marketed. They present a magic bullet to solve all your problems. Except their bullet is far from magic. Usually it does more harm than good.

They amazingly oversimplify things to make their bullet seem magic. This also fails miserably in practice. There are usually not good management options that are simple and easy. Usually the answers for what should be done is a lot of “it depends,” which people don’t seem to like.

Authors fail to place their book (or their trademarked strategy they hope turns into a movement/fad) in the appropriate context. Most books just take a few good ideas from decades old practices add a new name and leave off all references to the deep meaning that originally was there. I guess quite often the authors don’t even know enough about management history to know this is the case; I guess they really think their minor tweak to a portion of business process re-engineering is actually new. This also would make it hard for them to place their ideas within a management philosophy.

On a related note, I find it interesting how different the lean manufacturing and six sigma communities are online (and this has been going on for more than a decade). One of the problems with six sigma is there is so little open, building on the practices of six sigma. Everyone is so concerned with their marketing gimmick for six sigma that that don’t move forward a common body of work. This is a serious problem for six sigma. Lean manufacturing benefits hugely from the huge community of those building openly on the body of knowledge and practice of lean. You can find 10 great lean manufacturing blogs without trouble. You will have difficulty finding 3 good six sigma blogs (and even those spend most of the time on other areas – often lean thinking).
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The Achilles’ Heel of Agile

Guest post by Jurgen Appelo

When I wrote this, I was working in a big open office space in the Van Nelle Factory in Rotterdam (see photo). About 100 people work in an office that was the first of its kind in Europe, when it was built in 1929. And more than 80 years later, architecture lovers from all over the world still come to admire it, take pictures, and make drawings. I sometimes waved at them.

photo of open office style at Van Nelle Office
Van Nelle office, reprinted by permission of Stephan Meijer

A big open office space has advantages and disadvantages. Advantages are flexibility and easy communication. The main disadvantage is that it is a shared resource for all who work there. Climate, sound, and light are hard to manage in a space like that, and the optimal configuration for the whole is never optimal for all. But our office manager did the best she could in trying to maximize pleasant working conditions, while maintaining tight rules to keep things under control. A shared open office is not the ideal environment to give people full responsibility over their own working space.

Self-organization is usually promoted in agile software development. But when shared resources are not managed by a central authority, self-organization often results in the Tragedy of the Commons. The name refers to a situation in which multiple self-organizing systems, all acting in their own self-interest, overexploit a shared limited resource, even when they all know it is not in anyone’s interest for this to happen. The impact that humanity has on CO2 levels in the air, trees in the forests, and fish in the sea, is right now the most debated and intensively researched case of the Tragedy of the Commons. Organizations also have shared resources, like budgets, office space, and system administrators. We could see them as the business-equivalent of the air we breathe, the landscape we change, and the fish we eat.

Research indicates that four ingredients (called the four I’s) are needed for sustainability of shared resources [Van Vugt 2009:42]:

  • Institutions [managers] who work on building trusting relationships between competing systems [teams] in order to increase acceptance of common rules;
  • Information that increases understanding of the physical and social environment, in order to reduce uncertainty (because uncertainty results in bias towards self-interest);
  • Identity, or a need for a social “belonging” that encompasses all participants, to improve and broaden one’s sense of community and reduce competition between teams;
  • Incentives that address the need to improve oneself, while punishing overuse and rewarding responsible use.

Research shows that it is imperative that there is some form of management (or governance) to protect these shared resources by working on these four I’s. (I realize that most modern day governments are not setting a good example of how to do that.) In the case of shared resources, whether it concerns money, space, or system administrators, someone outside of the development teams must keep an eye on long-term sustainability instead of short-term gains by individual teams.

The Tragedy of the Commons is the Achilles’ heel of Agile. It takes management to protect that heel, in order to prevent teams from depleting resources, and crippling the organization.

This article is an adaptation from Management 3.0: Leading Agile Developers, Developing Agile Leaders, by Jurgen Appelo. The book will be published by Addison-Wesley, in Mike Cohn’s Signature Series.

Related: Embrace Diversity, Erase Uniformitymanagement 3.0agile software development booksVW Phaeton assembly plant

Get Rid of the Performance Review

How Much Do You Hate Performance Reviews? by Bob Sutton

Deming emphasized that forced rankings and other merit ratings that breed internal competition are bad management because they undermine motivation and breed contempt for management among people who, at least at first, were doing good work.

If you want to read the most compelling and complete case against the traditional performance evaluation, however,I suggest that you pre-order UCLA Professor Sam Culbert’s new book Get Rid of the Performance Review. He first made this argument in the Wall Street Journal, but the book digs into this argument in far more detail and offers solutions for managers and companies who want to replace the traditional review — or at least reduce the damage that they do. To help spread the word about the book, and to find out if as many people despise the performance review as Sam (and I) believe, he has — a bit like the ARSE — designed a ten-item test called How Much Do You Hate Performance Reviews? I just took it and scored a 36, which means I really hate them.

Related: The Trouble with Performance Reviews by Jeffrey PfefferDeming and Performance AppraisalPerformance Appraisals, Good Execution is not the Solution?

Mihaly Csikszentmihalyi: Creativity, Fulfillment and Flow

“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 Creativityposts on psychology Interviews with InnovatorsInnovation StrategyThe Purpose of an OrganizationFlow

Bogus Theories, Bad for Business

The Wall Street Journal has a book review of The Management Myth by Matthew Stewart. The book flushes out the ideas Matthew Stewert explored in a previous article in the Atlantic about the failure of management to mature as a discipline.

Mr. Stewart quotes Bruce Henderson, the founder of the ­Boston Consulting Group, who describes consulting as “the most improbable business on earth” and who goes on to ask: “Can you think of anything less ­improbable [sic] than taking the world’s most ­successful firms, leaders in their businesses, and ­hiring people just fresh out of school and telling them how to run their ­businesses, and they are willing to pay ­millions of dollars for their ­advice?”

I’m not sure about the book, I have not read it but that is a great statement. And I firmly believe managers need to become experts at managing and by and large they have quite a long way to go. Dr. Deming talked about how we “know” what we know in the aspect of his management called the theory of knowledge (which is not included in any other management philosophy I have seen). That area (with interactions in other areas) explores why people often believe what is not so. And management seems to have a surplus of beliefs that are not based on sound theories.

Read this good article I have mentioned before on this topic by Carlie and Christensen: The Cycles of Theory Building in Management Research.

Related: Righter IncentivizationAnother Quota Failure ExampleManagement Advice FailuresWhy Extrinsic Motivation FailsInnovation StrategyDoes the Data Deluge Make the Scientific Method Obsolete?Data Based BlatheringDoing the Wrong Things RighterHarvard’s Masters of the Apocalypse
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In-N-Out Burger’s Six Secrets for Success

image of In-N-Out Burger book cover

In-N-Out Burger’s six secrets for out-and-out success

Listen to Your Customers — One of the company’s mottos is “Our customer is everything.” Applying that belief led to the company policy of preparing burgers just the way customers asked for them. Some of the customer favorites became popular and were eventually adopted as the restaurant chain’s “secret menu.” By listening to their customers, In-N-Out created menu choices other stores couldn’t duplicate.

Treat Employees Well — The Snyders always held their employees in high esteem, paying them higher wages than competitors and calling them associates to make them feel more connected to the franchise.

“They believed in sharing their success with their employees,” says Perman, noting that In-N-Out associates make $10 an hour working part-time and starting store managers make $100,000, plus bonuses tied to store performance. The company benefits package is also generous. Such treatment engenders loyalty from workers.

“They have the lowest turnover rate in the fast food industry, which is notorious for turnover,” says Perman. “They say that the average manager’s tenure is 14 years, but they have managers who have been there 30 or 40 years.”

Keep Things Simple and Consistent

The fundamental idea of respecting people is something most executives seem to have no interest in. Treating employees as the critical partners in organizational success is just something that doesn’t leap out at you based on the actions of most managers, unfortunately. And that poor management damages the performance of the organization.

Read more about In-N-Out Burger management practices in Stacy Perman’s new book In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules.

Related: Respect for Workers at In-N-Out Burger (Nov 2006)Building a Great WorkforceAnother Year of CEO’s Taking Hugely Excessive PayRespect for People, Understanding PsychologyPeople are Our Most Important Asset

Jeff Bezos Spends a Week Working in Amazon’s Kentucky Distribution Center

Photo of Jeff Bezos, Amazon CEOPhoto of Jeff Bezos during the 2005 O’Reilly Emerging Technology Conference by James Duncan.

Jeff Bezos, Amazon CEO, is working for a week in Amazon’s Kentucky distribution center. I hope, and based on his past, I believe, that he is going to the gemba (Genchi Genbutsu) to learn more about how Amazon operates. That would be great.

He worked on wall street and understands the fake constraints they attempt to put companies (you must focus on short term profits, you must focus on pleasing wall street analysts not customers…). He understood the importance of managing cash flow and the unimportance of short term profits. And he understands the importance of customer focus. He understands lean thinking. We need more CEO’s like him.

Amazon CEO comes to Lexington

“Thanks so much for your interest in speaking with our CEO Jeff Bezos,” said spokeswoman Patty Smith. “Unfortunately, I’m not going to be able to arrange any interviews or photos this week while he is in Lexington.

“He is there to work,” Smith said, “and, unfortunately, we are just not scheduling any interviews while he is in town.”

Local Amazon employees say Bezos is working in the warehouse with the company’s hourly employees to see what they do and hear their comments about their work. Most CEOs would benefit from spending a few days on the shop floor.

Once again his actions indicate he is the type of CEO I want to invest in.

via: Jeff Bezos Works In Kentucky Distribution Center For A Week

Related: Jeff Bezos and Root Cause AnalysisManagement by Walking AroundAmazon InnovationAmazon’s Amazing AchievementLouisville Slugger, Deming PracticesManagement Excellence

Knowledge, Imagination, Innovation and Risk

A consumer can seldom say today what new product or new service would be desirable and useful to him three years from now, or a decade from now. New product and new types of service are generated, not by asking the consumer, but by knowledge, imagination, innovation, risk, trial and error on the part of the producer, backed by enough capital to develop the product or service and to stay in business during the lean months of introduction.

W. Edwards Deming
Page 182, Out of the Crisis
More of Deming on Innovation

Related: Innovation Thinking with Clayton ChristensenEngineering InnovationManaging InnovationGary Hamel on Management Innovation

Statistics for Experimenters in Spanish

book cover of EstadĂ­stica para Investigadores

Statistics for Experimenters, second edition, by George E. P. Box, J. Stuart Hunter and William G. Hunter (my father) is now available in Spanish.

Read a bit more can find a bit more on the Spanish edition, in Spanish. Estadística para Investigadores Diseño, innovación y descubrimiento Segunda edición.

Statistics for Experimenters – Second Edition:

Catalyzing innovation, problem solving, and discovery, the Second Edition provides experimenters with the scientific and statistical tools needed to maximize the knowledge gained from research data, illustrating how these tools may best be utilized during all stages of the investigative process. The authors’ practical approach starts with a problem that needs to be solved and then examines the appropriate statistical methods of design and analysis.

* Graphical Analysis of Variance
* Computer Analysis of Complex Designs
* Simplification by transformation
* Hands-on experimentation using Response Service Methods
* Further development of robust product and process design using split plot arrangements and minimization of error transmission
* Introduction to Process Control, Forecasting and Time Series

Book available via Editorial Reverte

Related: Statistics for Experimenters ReviewCorrelation is Not CausationStatistics for Experimenters Dataposts on design of experiments

Appropriate Management

Low-Tech, High Impact Innovation

Adopting the perspective of “appropriate technology” is an excellent way to promote and increase innovation. Your solutions don’t have to be high tech, they just have to provide wide benefits – and taking this sometimes counterintuitive approach can be enlightening.

Great post. My father, Dr. William Hunter, did a great deal of work with appropriate technology (he was a chemical engineering, industrial engineering and statistics professor) and in management improvement.

Often the failure to adopt appropriate technology solutions results from a combination of 3 things:

  • Failing to understand the conditions where the solution will be applied. Failing to “go and see” in lean manufacturing terms.
  • Short term thinking, the failure to see the challenges in maintenance, is how short term thinking manifests itself with the inappropriate technology solutions often applied by those siting in Washington DC or Paris. The failure to consider maintenance is also very related to the first point. Appropriate technology solutions are often very simple, less sensitive (less moving parts to break, able to deal with dust, rain…) and more easily repairable (with tools, expertise and spare parts available at the location of use).
  • A desire to use the cool new gadget and ideas.

Thinking about why appropriate technology is so effective, but underutilized can help anyone improve the solutions they adopt. Thankfully the adoption of appropriate technology solutions has been increasing over the last few decades.

I would especially encourage people to stop looking for the newest management book and actually read and adopt and then re-read and… the excellent management books from the last 50 years. Stop chasing some new shiny thing and adopt solutions that are effective – even if they seem boring.
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Conference Calls with Scholtes and Joiner

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

Quotas are Not the Answer

Rich Sharpe posted to his blog on his recent reading of Dr. Deming – The American Who Taught the Japanese About Quality by Rafael Aguayo in Lean Programming and Dr. Deming. And he posted a response he received from Rafael Aguayo with some good points including:

But in your case you have a company that demands quotas or targets. Maybe there is a belief within management that this will help the stock. It will not, but that is a different matter that would require a much lengthier explanation.

But the whole point of this is to bring back intrinsic motivation. People should be coming to work to because they love being there. They love the work, they love the respect and appreciation they get, they love the team environment, they love that the company is looking after them and it is a two way agreement. And in this environment people and teams perform miracles. The quotas and targets become meaningless, which is what they are anyway.

Related: Another Failure Due to QuotasTargets Distort the SystemGoodbye Quarterly TargetsBooks on Deming’s management ideasMaking Changes and Taking Risks

Using Books to Ignite Improvement

Leader's Handbook cover graphic

Recommended Reading From an Employee-Owned Company

Soon after, another Web Industries employee picked up “Kanban Made Simple,” a guide for adopting Kanban, Toyota Motor Corp.’s just-in-time manufacturing process by John M. Gross and Kenneth R. McInnis. Within weeks, other employees were reading it. A group of machine operators used the book’s ideas to slash chronic late deliveries and improve scheduling processes.

In the 18 months since Mr. Quarrey picked up “Ideas Are Free,” he’s gotten back into business books – largely because of his enthusiastic employees. Web Industries, a Hartford, Conn., manufacturer, is a 100% employee-owned company. “It’s a very weird experience to be in your factory and have people comparing business books they’ve read,” he says.

There are excellent books available that would help you improve your organization. I have mentioned some of my favorite management books before but here some are again: The Leader’s Handbook by Peter Scholtes, Toyota Talent by Jeffrey Liker and David Meier, Six Sigma Beyond the Factory Floor by Ron Snee and Roger Hoerl, Lean Solutions by James Womack and Daniel Jones and The New Economics for Industry, Government, and Education by W. Edwards Deming.

My main suggestion is to read excellent books regardless of when they were written. The Human Side of Enterprise by Douglas McGregor, Fourth Generation Management by Brian Joiner, and many others might not be new but they offer more than almost any new books you will find. There is nothing wrong with excellent new books, just don’t think that because a book is 10 or even 30 years old your organization has already adopted most of the good ideas. In my experience, if more than 20% of the books you read for management ideas in the last few years are less than 5 years old you are making a mistake and would benefit a great deal from reading books written earlier.

Related: Curious Cat management article libraryCurious Cat Management Improvement booksWorkplace Management reviewAckoff’s New Book, Management f-Laws

How Curiosity Empowers Toyota

How Curiosity Empowers Toyota by Keith McFarland:

As I read Magee’s book one idea kept surfacing in my mind. Throughout its history, Toyota appears to have put an emphasis on an important but oft-overlooked characteristic: Curiosity. You can trace Toyota’s institutionalized curiosity back to its founder, Sakichi Toyoda (1867-1930), who became interested in improving the effectiveness of weaving looms, and who went on to revolutionize weaving technology in Japan and secure more than 100 patents on his ideas. You might say Toyota’s founder was “loopy” for looms. Not content just to build the best looms in Japan, Toyoda traveled to Europe, toured leading Western loom makers, and carried key ideas back to Japan. Son Kiichiro Toyoda carried on his father’s tradition of curiosity—and a visit to a Detroit auto plant in the 1920s inspired him to move a renamed Toyota into the car business.

For more than 70 years, Toyota’s curiosity has allowed it to build, brick by brick, a commercial fortress. It has scanned the globe for the best ideas—from styling to manufacturing to quality management—and imbued those ideas with a power that often surprises even the people who came up with them in the first place.

Curiosity seems like just what a cat (or company) needs to grow and learn and improve :-)

Related: Curious Cat management articlesposts on the Toyota Management Systemlean manufacturing portal

Data Visualization

Data is often displayed poorly, making it difficult to see what is important. When data is displayed well the important facts should leap off the page and into the viewers mind. Edward Tufte is an expert on this topic with great books. If you have not read them, you should: Beautiful Evidence, The Visual Display of Quantitative Information, Envisioning Information and Visual Explanations.

Smashing magazine has some nice examples of good display techniques in Data Visualization: Modern Approaches. I don’t like all the examples they show but it does provide some help by showing some creative ways to display data.

Related: Edward Tufte’s new book: Beautiful EvidenceGreat ChartsData Visualization Example

Workplace Management by Taiichi Ohno

images of cover of Workplace Management

Workplace Management by Taiichi Ohno is an excellent management book. Taiichi Ohno is known as the father of the Toyota Production System (TPS), also called lean manufacturing. He dictated the text to the Japan Management Association (in a series of interviews in 1982), which gives the book a sense of listening to him talk about the ideas. I found the conversational tone made it very easy to read and reminiscent of Dr. Deming’s tone in many places.

Ohno focused a great deal on the faulty perceptions derived from cost accounting thinking. He discussed the importance of not letting your understanding be clouded by thinking with the accounting mindset. “If you insist on blindly calculating individual costs and waste time insisting that this is profitable of that is not profitable, you will just increase the cost of your low volume products. For this reason there are many cases in this world where companies will discontinue car models that are actually profitable, but are money losers according to their calculations. Likewise, there are cases where companies sell a lot of model that they think is profitable but in fact are only increasing their loses.” page 32

Another area covered in the book is the whole concept of one piece flow (with quick changeovers of equipment, just in time, small lot production…). This is one of the true innovations within the Toyota Production System. I don’t think this book alone can convey how it works and why it is important but this book does a good job of giving another take on these ideas, from the person most responsible for making it work at Toyota.

The book is full of wonderful quotes including:

“There is a sequence for implementing automation that must be followed, even though it is hard. Automation just for its own sake is a problem.” page 81

“If you are observing every day you ought to be finding things you don’t like, and rewriting the standard immediately. Even if the document hanging here is from last month this is wrong.” page 125
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Out of the Crisis

Entrepreneur.com has named their 9 best classic business books of the past 30 years including Out of the Crisis by W. Edwards Deming:

Deming’s teachings challenged American business practice at almost every point. Among his most revolutionary ideas were the notions that poor management–not slacker workers–was responsible for most quality problems, and the way to boost quality was to carefully measure defects and the effects of changing processes.

The article includes a section on what to ignore from each book, including for Out of the Crisis – “he was strenuously opposed to incentive pay plans of all types.” Incentive pay plays havoc with teamwork, systems improvement (encouraging sub-optimization), long term thinking, sales volumes (commissions increase variation in sales creating problems for production), shedding light on problems… Ignoring that is not a good idea. Other books they mention include: Innovation and Entrepreneurship by Peter Drucker and The Seven Habits of Highly Effective People by Stephen Covey.

Related: Deming’s ideas on ManagementCurious Cat Management BooksDrum-buffer-rope

via: MIT Press Log

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