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Management improvement (lean thinking, Deming, six sigma, customer focus, innovation...) career and job related posts.
Also see the Curious Cat: Management Improvement Job Board and conferences and seminars.
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Cutting Hours Instead of People

When financial and economic realities reach the point that labor costs must be cut I believe a good option to consider is cutting hours (and pay) instead of people. Some people will have extreme hardship if the cut in hours and pay is significant, but once you get is a bad situation no answers are likely to be without problems. I would try to offer the cuts to those that want them first. I would likely take an unpaid sabbatical, if offered, and the organization was in financial trouble.

Another way of doing something similar is profit sharing (where costs go down when profits go down). You should be careful how such sharing is designed, it can create bad incentives if done incorrectly. Also by paying a portion of wages as bonuses that expense can be reduced when times are bad without layoffs.


The Rise of the Four-Day Work Week

Like many companies, Pella is looking to cut expenses because of the economic downturn. But instead of laying off more workers, the Iowa manufacturer of windows and doors is instituting a four-day workweek for about a third of its 3,900 employees. Chris Simpson, a senior vice-president at the company, acknowledges it’s an unconventional move… it doesn’t want to be caught short of experienced workers.

According to the U.S. Bureau of Labor Statistics, the number of employees who normally work full-time but now clock fewer than 35 hours a week because of poor business conditions has climbed 72%, to 2.57 million in November 2008, from 1.49 million in November 2007.

Related: Bad Management Results in LayoffsSome Firms Cut Costs Without Resorting to LayoffsOperational Excellenceposts on respect for employees

Eric Schmidt on Management at Google

   
Eric Schmidt speaks at the Management Lab Summit on May 29, 2008 in Half Moon Bay, California. Conversation with Professor Gary Hamel.

  • “The culture can be thought of as a ship and iterate culture with transparency for what people are doing. And that model scales pretty well.”
  • “I have two jobs, two roles. The first is to make sure every issue that is important is really debated to find, not the common outcome, but the best decision… second thing is to put pressure to make it happen quick.”
  • “it [managing better] starts with listening, it has to do with curiosity
  • “everything has to be based on some fact”
  • “It’s only about the people.” [respect for people is critical, Google really acts as though the people are their most important asset - John].
  • “What is the number 1 goal of the company? It is end user happiness with search. What is the number 2 goal? It’s end user happiness with advertising. What is the number 3 goal? The construction of the Google network of partners to effectuate the first two. What is the number 4 goal? To grow and scale the business… You will eventually get extraordinary returns for your shareholders and maximize advertiser happiness if all those things happen… There are a lot of business executives that get confused on what the goal is and they think that shareholder value is the goal. Shareholder value is a consequence of the goal.”

Related: Eric Schmidt Podcast on Google Innovation and EntrepreneurshipInterview with Google CEO Eric SchmidtInnovation at GoogleGoogle: Experiment Quickly and OftenMarissa Mayer Webcast on Google InnovationGoogle Management by Gary HamelLarry Page and Sergey Brin Interview Webcast

Best Places to Work for Six Sigma Professionals

iSixSigma has created a list of the Best Places to Work for Six Sigma Professionals. To be eligible to participate, companies must have been actively engaged in using Six Sigma for at least two years and must employ a minimum of 30 full-time Six Sigma practitioners in either Black Belt, Master Black Belt or Deployment Leader roles.

Sixteen companies met all the entry requirements and completed a two-part online survey. The senior Six Sigma leader submitted answers to an employer survey, and the full-time Six Sigma personnel at each company submitted answers to an employee survey.

Companies were ranked 1 through 10 by totaling the scores from the two surveys. The greatest weight was given to the employee survey, which asked questions in five main categories: job satisfaction, culture, compensation/rewards and recognition, training and career development, and net promoter score (NPS). Of these categories, the most weight was given to job satisfaction, as that is what employees said was the most important factor to them when it comes to a working environment. The companies, in alphabetical order:

  • Chevron
  • EMC
  • Masco Builder Cabinet Group
  • McKesson
  • NewPage
  • Rio Tinto Alcan
  • Textron
  • Volt Information Sciences
  • Vought Aircraft Industries
  • Xerox

The rankings will be revealed later. The details are from from convincing to me that these are indeed the top 10 organization for six sigma professionals. However, it does seem a good list for someone looking for a new job working with six sigma to consult.

Related: Deming and Six SigmaSix Sigma SuccessAgility vs. Six Sigmaposts on management careersSeduce Them With Six Sigma Success

Keeping Good Employees

Understanding Why Good Workers Quit

“What do you need to want to stay?” Most managers, she acknowledges, are afraid to ask this question and that is a reason why their companies have to do plenty of exit interviews. When stay interviews are part of the culture—and this is a practice in very few companies—attrition of the people you don’t want to lose plummets.

“Ask them directly: What can we do to keep you?,” urges Kaye. And don’t be shy or dishonest. If the employee asks for things you cannot deliver, be direct in acknowledging it but also indicate what you can do. Know, too, that just by talking to employees in this way you are scoring points because it’s something that just does not happen in most companies.

More concretely, Karen Fink, vice president of human resources for Edmunds.com, said that the glue her company uses to keep top IT workers is as simple as interesting work. “Technical workers tend to remain with an organization where they have the opportunity to contribute to interesting projects that stretch their skill sets and where they have the opportunity to be educated on the latest technologies.”

Good advice. I like direct, simple, questions. What can we do to keep you? What do you enjoy about your job? What do you dislike? What can I do to increase your joy in work? What one thing would you most like to see changed? What do you want to see continue? Would you like help in some aspect of your career development? What can I do better? Am I providing too much oversight, not enough?

Give honest straight forward answers to questions. If someone wants to move ahead and needs to work harder to advance their career tell them that. If they need to be more cooperative, develop certain skills… tell them. The idea is not just to make the person happy in that meeting. If they need to work on certain things to get where they want then help them do that. Give your best advice and say what they can do to improve.

Related: People are Our Most Important AssetWhat 1 Thing Can We Improve?IT Talent Shortage, or Management Failure?Silicon Valley Style HiringHow to ImproveRespect for People, Understanding PsychologyThe Joy of Work

Rhode Island Manufacturing

Manufacturing has new look in R.I.

She used the auto industry as an example, pointing out that in the early years of the last century Henry Ford manufactured Model-T’s that were all the same. The consumer today demands a choice in models, colors and a host of other features when buying a car. “Manufacturers must be able to change processes very easily and very quickly,” she said, to meet constantly changing consumer demands.

The closing of an old-fashioned assembly-line, low-wage factory always makes headlines, contributing to the image of the industry as one with a bleak future, Taito noted, while advanced manufacturers who steadily grow and add three or four jobs a year win no notice. “But that’s real growth, sustained growth,” she said of the latter.

Grove said RIMES has promoted the advantages of the lean initiative to Rhode Island manufacturers for about 10 years. “When you adopt lean manufacturing, it becomes the process of the whole shop and, by necessity, employees have to be more of a team than in the past,” he said. On-the-job training is routine at Pilgrim, according to Grove.

Still, the industry’s transition has not been painless. The number of manufacturing jobs in the state has declined steadily. In 2002, there were 64,796 people employed in manufacturing in Rhode Island and, 30 years ago in 1978, there were 134,654, according to figures from the R.I. Department of Labor and Training.

Yet another illustration of what I have been saying for years. USA manufacturing continues to grow and USA manufacturing jobs continue to shrink (as do worldwide manufacturing jobs). And as I have been saying for years, China manufacturing output continues to grow very quickly and China manufacturing jobs continue to shrink (China lost 7 times as many manufacturing jobs as the USA from 1995-2002).

Related: Manufacturing and the Economy (2005 post)Creating JobsTop 10 Manufacturing Countries 2006America’s Manufacturing FutureWisconsin ManufacturingManufacturing Employee Shortage in Utah

Mississippi Plans Manufacturing Management Center

Ole Miss plans manufacturing center

Ole Miss plans to build a center to teach manufacturing management skills. Gov. Haley Barbour, Ole Miss officials and Toyota executives announced the $22 million Center for Manufacturing Excellence on Monday in Jackson. Construction of the 47,000- square-foot center could start this fall.

“We in Mississippi continue to have a larger percentage of our population employed in manufacturing than the country as a whole,” Barbour said. “One way to help our businesses innovate and stay successful is to give them world-class people to employ, whether it’s engineers or business majors or people who work on the line.”

By teaching principles of lean manufacturing, total quality management and just-in-time inventory delivery, the center will produce workers for many sectors including aerospace, electronics, technology and polymer sciences.

The center’s funding comes from the state’s $323.9 million incentive package for Toyota. The automaker is building a $1.3 billion plant in Blue Springs, about 50 miles from Oxford. Toyota reset the opening of the plant from early 2010 to May 2010 for economic and model-changeover reasons.

The center will offer four bachelor’s degree programs, two business-related and two engineering-related, all with a manufacturing emphasis. Barbour and Ole Miss Chancellor Robert Khayat will appoint a board to create a curriculum and oversee the center.

“We have completed the building drawings and expect to be receiving bids shortly. I would hope that construction would begin this fall,” Khayat said.

He said he expects 20 to 40 students the first year, with enrollment increasing dramatically in the following years. Most of the initial students likely will switch their majors from engineering or business. The interdisciplinary program will include cooperatives and externships.

“We’re going to see an interesting marriage between engineering and business. We think it will be a model for the future of manufacturing,” Khayat said.

Related: Engineering Innovation for Manufacturing and the EconomyManufacturing Employee Shortage in UtahGlobal Manufacturing Data by Country (Feb 2006 post)Trends in Manufacturing Jobs

Management Improvement Jobs

Curious Cat Management Improvement Career Connections provides a source of jobs targeted to those interested in this blog. Take a look at the jobs listed now including: Lean Manager at Erlanger in Kentucky; Senior Lean Six Sigma Specialist at Cooper Crouse-Hinds in New York and CEO of Jefferson State Forest Products in California.

At the recent Deming Seminar in Colorado Springs I met the CEO of upstream21, which owns Jefferson State Forest Products: Bryan Redd. He has a great understanding of how to put Deming and lean manufacturing ideas into practice. Having a boss that is knowledgeable and passionate about the management improvement is a huge plus. I think this is a great opportunity.

So if you are interested in looking at new career opportunities look at the jobs posted on the job board and good luck. And if you have a management improvement opening, go ahead an add the opportunity.

Related: Signs You Have a Great Job, or NotDeming CompaniesHiring the Right Employees

Internships Increasing

Hard to find a job, but not an internship

The bullish market for interns is good news for those in college, who find that internships are increasingly required for landing that first job. The summer posts allow students to bolster their resumes, learn more about their field of choice and meet executives who could hire them for full-time positions one day. And they often pay a good wage: on average, $16.33 an hour, or $7,850 over 12 weeks, Luckenbaugh said.

“Students are looking for internships even after their first year,” said Sheila Curran, executive director of Duke University’s career center, noting that 88% of Duke students graduate with at least one internship under their belts. “It’s become expected that you’d have at least one internship during college.”

Universities are also recognizing the increased importance of internships and are working harder to secure spots for their students, said Richard Bottner, founder of Intern Bridge, a college recruiting research and consulting firm. Some colleges are even requiring students to do at least one internship to graduate.

graphic of Deming Scholars internship cycle
The Deming Scholars MBA program at Fordham includes a heavy dose of internships (“Subject matter is delivered in five integrated learning cycles. Five eight-week sessions of classroom lectures, seminars and study are linked by seven-week internships at participating firms”). Integrating well planned internships can be very valuable to improving learning. By the way if your company would like to host these students you can contact the program to discuss the opportunity.

Curiouscat.com has a web site for locating internships. I would love to get some good management improvement based internships added – there is no charge to add internships. For actual jobs try the Curious Cat Management Improvement job board.

Related: Hiring the Right EmployeesIT Talent Shortage, or Management Failure?Young IT Workers DemandsJoel ManagementThe Joy of Work

Management Seminar in May

The Deming Institute is sponsoring, How to Create Unethical, Ineffective Organizations That Go Out of Business, 12-14 May, 2008 in Colorado Springs, Colorado. Kelly Allan and I will be presenting the seminar. Please let me know if you sign up.

Twenty-seven faulty management and corporate governance practices create most of the problems in any organization. These practices will be identified, and better practices recommended. It will be shown that as better practices are introduced, quality of products and services increases, costs decline, and you create a globally competitive advantage for your organization.

Learn how governance practice leads to the heaviest losses, how inconsistencies between policy and strategy create sub-optimal outcomes, how mismanagement of people leads to unethical and ineffective behavior, and how to overcome these problems. Study the theory and practice of management. Not quality management, not good management, not excellent management, not knowledge management, not risk management, not process management, not performance management, not supply or asset management, not technology management, not time management, not emergency management, just plain management.

Related: Deming on ManagementCurious Cat Management Improvement CalendarDeming Seminar and ConferenceDeming Companies

A Programmers Take on Agile Software Development

A Case for Agile: Benefits for a Programmer’s Career by Theodore Nguyen-Cao

Through agile development, I’ve been able to deliver working software time and time again. I’ve been exposed to all different aspects of the business. I’ve learn what I like and don’t like to do. I’ve learn what pieces of business I’m interested in and the pieces I don’t care much for. I’ve developed some really good working relationships. I’ve tackled some hard problems. I’ve learned to respond and adapt to the change and turmoil of a startup.

Most importantly, I still feel I’m growing as a developer. I honestly believe the best thing a developer can do in their career is to always be learning. Everything else will follow.

I am also a strong proponent of agile software development. Information Technology projects have a poor success rate. The best method, I have found, to provide better software solutions is agile development (and I find a grounding in management improvement techniques is useful – customer focus, process improvement, systems thinking, understanding variation, data driven management…). My experience is with custom application development (rather than developing Commercial Off The Shelf software – COTS) for which I think agile is a great fit.

Related: Joy in Work for ProgrammersAgile Software Development PresentationMetrics and Software DevelopmentManagement Science for Software EngineeringProgrammers at WorkJoel Management

Manufacturing Employee Shortage in Utah

Utah scrambling to meet need for technical workers

The state faces challenges in generating necessary interest to fill available manufacturing jobs for what Utah’s governor has called the state’s “Aerospace Hub,” both immediately and in the future, the report said.

The situation continues to worsen, with jobs being created and unemployment remaining low in the state. And as the current work force ages, the supply of skilled workers is diminishing, forcing employers to recruit outside of Utah and sometimes leave Utah altogether, the report said.

The college’s Lean Manufacturing Center was built from an old warehouse with state funds and $30 million from rocket-booster manufacturer Williams International. Williams provides the college with equipment and mentors to train students with practical, real-world applications, said Lloyd McCaffrey, the Lean Center’s director.

Related: Engineering Innovation for Manufacturing and the EconomyApplied Quality Engineering EducationWisconsin ManufacturingTop 10 Manufacturing CountriesHelp Wanted: Lean Manufacturing ExpertsThe Lean MBACurious Cat Management Improvement Job Board

Learn from Russel Ackoff

The In Thinking network offers many great ways to learn. This week they have 4 hour long conference call discussions with Russ Ackoff. Thought Pieces (suggested links to review in preparation for the conference call)
Lecture on “Systems Practice” at Open University (audio file)
Transforming the Systems Movement
A Major Mistake that Managers Make
From Mechanistic to Social Systems Thinking

These four resources are great, even if you are not going to participate in the conference calls.

Related: articles by Russel AckoffCurious Cat Management Improvement CalendarWrite it DownTransformation and RedesignAckoff’s F-laws: Common Sins of Management
Continue reading

Creating Jobs

Do Lean Companies Create Fewer Jobs?

No, they create more. If you assume the lean company grows sales at the same rate as some poorly management company then it may well be that the lean company creates fewer jobs. However that is not a valid assumption. Deming provided the reason in his presentations to Japan in the 1950′s with his chain reaction. From page 3 of Out of the Crisis

  • Improve Quality —>
  • Costs decrease because of less rework, fewer mistakes, fewer delays, snags, better use of machine-time and materials —>
  • Productivity Improves —>
  • Capture the market with better quality and lower price —>
  • Stay in Business —>
  • Provide jobs and more jobs

For an example of this process at work see GM, Ford and Toyota. Toyota defines lean (Toyota’s management system is what was called lean manufacturing by Jim Womack and Dan Jones). Toyota continues to add employees while Ford and GM have been shedding jobs.

It is true, for lean (and un-lean) companies alike, productivity is improving (it just improves more at lean companies) which means that fewer people are needed to produce the same amount as we have in the past. We have posted previously about the mistaken belief that jobs are moving overseas.
Continue reading

IT Talent Shortage, or Management Failure?

IT talent shortage, or management failure?

Is there a talent shortage? Only because employers have created it. The real shortage is in good management. Without proper seeding, feeding and cultivating, the IT community withers like any other garden. Companies are madly trying to hire skills, not talent. They want to harvest fruit overnight. Give a smart IT worker some manuals, a workstation, an objective, and a little time, and they’ll come up to speed every time. That requires strong leadership.

But if you leave it to some personnel jockey who relies on buzzwords and resumes, you’ll never hire real talent — and it will always seem there is a talent shortage. What’s difficult to understand about that?

Great post. I agree: the main problem is poor management. Dr. Deming kept increasing the percentage of problems due to systemic issues (which are management responsibility to address), he was saying 97% of issues were commons cause problems (from the system) at the end of his life.

So what should managers do? Read the Curious Cat Management Blog and follow the advise in our previous posts, including: Stop Demotivating Employees (IT employees are especially disdainful of pointy haired boss actions that others tolerate more easily) – Signs You Have a Great Job … or NotJoy in Work for IThiring silicon valley styleBad Management Results in Layoffs

Dr. Deming 4 Day Seminar

The W. Edwards Deming Institute is sponsoring a 4 day seminar using videos of Dr. Deming’s seminars and facilitated by Ed Baker, Dave Nave, and Joyce Orsini: Quality, Productivity, and Competitive Position. Ed Baker was the person at Ford responsible for helping Ford apply Dr. Deming’s ideas.

Hear and watch Dr. W. Edwards Deming identify faulty management practices. He will describe how, as better practices are introduced, quality of products and services increases, costs decline, and you create a globally competitive advantage for your organization.

Built on archive videos of Dr. Deming, this seminar blends footage of Dr. Deming presenting his theories with live facilitation by Ed Baker, Dave Nave, and Joyce Orsini to create an interactive learning environment. Facilitated discussion following each film segment will provide opportunity to deepen your understanding of the concepts, and interpret what these ideas might mean for your organization.

This seminar explores simple and powerful principles for anyone who manages people, or holds an executive responsibility in an organization. For more details see: Quality, Productivity, and Competitive Position.

Related: Scoring a Whole in One by Dr. Ed Baker – Deming on ManagementCurious Cat Management CalendarDeming Institute Conference (2006)Deming Seminar UpdateInvestors Business Daily on DemingWhere to Start Improvement

The Importance of Management Improvement

John and Bill Hunter

If organizations just adopt management improvement practices I firmly believe customer service, financial performance and employee satisfaction could be improved. This was a big part of the reason I started to use the internet to share management improvement ideas back in 1996 (plus I find management improvement interesting).

On the note of making a difference in people’s lives. I have had far more people tell me how my father (Bill Hunter) made a huge difference in their lives (far more than ever tell me anything like that). Now there is the sensible explanation, that he actually had a big impact on people’s lives (but you also have to figure most of those people never saw me so the chance for them to say anything didn’t exist…). I believe far more people told me (after he died) than ever told him, which says something about psychology in the USA, I think. But I don’t really know what people told him – so I could be wrong about that.

Anyway the point of this is that many people have told me their life was significantly changed by working with him on management improvement initiatives (mechanics talking about how he changed the workplace they had been in for years, people who saw that they could contribute more and changed careers, managers that realized how much damage they had done but now were on the right track…). There was obviously a great deal of emotion for many people. And it was largely about applying concepts like Deming’s management system, Toyota Management practices, statistics (yes even that)… and his ability to talk to everyone and make them comfortable (tons of people mentioned this – that this university professor would ask me questions and talk to me like a person, not talk down to me and be interested in my answers and…). As I continue through life I realize that this management improvement stuff really can matter if done right.

I have grown to enjoy maintaining the management improvement resources and other Curious Cat web sites but this is the reason I started and continued these efforts over the years. Today there is a great amount of useful management information online – but for years the pickings were quite slim.

Photo is of Dad and me a few years ago. Related: Quality in the Community: Madison, WIStatistics for ExperimentersDoing More With Less in the Public Sector: A Progress Report from Madison, WisconsinManaging Our Way to Economic Success: Two Untapped ResourcesInvest in new management methods not a failing company

Deming Institute Annual Conference: Oct 2007

Impage of W. Edwards Deming and the Purdue Campus

Learn how to do your work better, faster, and for less cost, plus find more time to plan your future and develop balance in your life – Attend The W. Edwards Deming Institute Fall Conference. Gain new insights to:
* Reduce product and service variation
* Enhance job satisfaction
* Redesign organizations as a system
* Appreciate the thinking behind the Toyota Production System
* Discover the role of psychology in continual improvement
* Understand trends in improving healthcare

Speakers include: Norm Bafunno (Senior Vice President – Manufacturing and Administration, Toyota Motor Manufacturing, Indiana, Inc.), Bill Bellows – Associate Technical Fellow, Pratt & Whitney Rocketdyne), Joyce Orsini (Fordham University, Deming Scholars MBA Program), John Pourdehnad – Ackoff Center for Advancement of Systems Approaches), Gipsie Ranney (Statistical Consultant) and Don Wheeler (Consulting Statistician and Author).

Related: Curious Cat Management Improvement CalendarThoughts on 2006 Deming Institute ConferenceImprovement at UTC (2005 Deming conference)Deming’s Ideas at Markey’s Audio VisualImproving Problem Solving by Ian Bradbury and Gipsie Ranney.

Hiring: Silicon Valley Style

Interviews on how to hire in Silicon Valley. I especially like Guy Kawasaki’s comment – “the key to getting great people to work for you is to have a great product. That is why Google does so well. That is why Apple does so well.” I agree with the concept that a huge part of hiring good people is offering them a place where they feel proud of what they are working on. This is even more true when you talk about great software developers that have more choice than most in how they choose to earn a living.

via: How Are Companies in Silicon Valley Hiring?

Related: Interviewing and Hiring ProgrammersGoogle’s Answer to Filling Jobs Is an AlgorithmGoogle Exceeded Planned Spending on Personnel

Help Wanted: Lean Manufacturing Experts

Is There A Lean Employee Deficit?:

Two recent articles in respected manufacturing publications highlighted a topic of interest for us at Ultriva: The difficulty of finding and retaining manufacturing talent.

The first was an article from the American Society for Quality published last week in Reliable Plant about the aggressive luring of Lean manufacturing experts to the services sector. The article quotes Jack Stiles, the president of an executive search firm, that experts are enjoying 20 to 30% pay raises to take their Lean thinking from manufacturing to service industries, like Healthcare or Banking. A Bain executive, Mark Gottfredson, adds “There is a whole industry luring away Toyota and General Electric people”.

Then today, Industry Week’s Traci Purdum published a piece online entitled “Help Wanted“. The article looks at the difficulty manufacturer’s are having in filling jobs from the plant to the management suite.

If you are looking a new job (or a company looking for skilled and knowledgeable people) the Curious Cat Management Improvement Job Board lists openings (and companies can post relevant vacancy announcements – 100% free). Current listings include: Quality Engineer, Director – Lean Manufacturing, TPS Consultant and
Director, Six Sigma Process Improvement. It is great there is a demand for skilled lean manufacturing experts; now we just need to make sure companies can get the right people in place so they can be successful and grow the adoption of lean management methods.

Related: Hiring the Right WorkersSigns You Have a Great Job … or Notmanagement improvement career related postsUSA Job Growth

The Joy of Work

Comic by Joe Sayers, Wanna play work?

Wanna play work - comic

A good laugh, but also a reminder of an important idea. We spend much of our life at work: we deserve to have pride in what we do and even enjoy it (shocking I know). Read the respect for people posts for some ideas on how to make your workplace better. If you think a new job might be the answer – find management improvement jobs via Curious Cat Career Connections.

People are entitled to joy in workDr. W. Edwards Deming

Related: What Business Can Learn from Open SourceStop Demotivating Employees

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