Currently browsing the Deming Category

Analysis Must be Implemented by People to Provide Value

Guest Post by Bill Scherkenbach

photo of W. Edwards Deming with a cat

Every time I look at this picture, I think of Dr. Deming’s words to drive out fear and take joy in your work. We were talking in my home office when Sylvester saw a good lap and took it. Our conversation immediately shifted when both Dr. Deming and Sylvester started purring.

The greatest statistical analysis is nothing if it can’t be implemented by people. But people learn in different ways. Some like good stories, others like pictures. Only a few like equations. Dr. Deming always liked a good laugh; and a good purr.

By what method do you get your analyses implemented?

Bill Scherkenbach taught with Dr. Deming at the Deming 2 day seminars and received the Deming Medal and the author of several books on Deming management principles.

Related: How to Get a New Management Strategy, Tool or Concept Adopted part 1 and part 2Getting Known Good Ideas AdoptedRespect People by Creating a Climate for Joy in WorkPlaying Dice and Children’s Numeracy

Deming and Software Development

I am sometimes asked about how use Deming’s ideas on management in a software development context. My belief is Deming’s ideas work extremely well in a software development context. The main issue is often unlearning some assumptions that people might have about what the Deming management system is.

It really is surprising to me how many “knowledge workers” respect Deming ideas but then say his attempts to treat factory workers as thoughtful people who should be respected and involved in improving their processes doesn’t make sense for them because they are “knowledge workers.”

There are many good things being done to improving the software development process. I think many of them are very Deming-like in their approaches (but to me miss out on aspects of the Deming management system that would be helpful). I think Dr. Deming’s approach to software development would focuses on the system of profound knowledge (the 4 inter-related areas below):

  • Understanding variation – software development has quite a bit of variation, some probably innate [unique work] and some due to not having good procedures, batching work, not fixing problems right when they are seen, quick fixes that leave the system venerable in the long term (when you make one simple change to the code it has an unanticipated consequence due to poor practices that could have been eliminated), etc.. Many good coding practices are effective strategies to deal with this issue. And building an understanding of variation for managers (and business process owners/product owners) is very helpful to the software development process. The ideas in agile and kanban of focusing on smaller delivery units of work (one piece flow, just in time, cycle time…), customer value, maintainable code, sustainable work conditions, etc. are directly found in a Deming management system.
  • Appreciation for the system of software development. Don’t just complain about bugs. Examine the process of development and then put in place mistake proofing efforts (don’t duplicate code, use integrated regression tests, don’t put artificial constraints on that result in system distortions – unrealistic targets…). Use things like kanban, limited work in progress, delivering value to customers quickly, think of success in terms of getting working software to customers (not meeting internal delivery goals), etc. that take into account our experience with systemic software development problems over the decades.
  • Theory of knowledge – how do we know what we know? Are estimates reliable? Lets look at what users do, not just what they say (A/B testing…). Software developers often appreciate the value of usability testing, even though they rarely work for organizations willing to invest in usability testing. In my experience when software developers object to usability testing it is normally really an objection to overwork, and the usability testing is just going to give them more work or criticize things they were not allowed to spend the time they needed to do great work. That won’t always be the reason but it is the main one in my experience (I suppose their is also fear and just the psychology of not wanting to hear anything negative about what has been created – even if the usability testing shows tons of great results people will often focus on the negative).
  • psychology and respect for people – This pretty much seems like it is the same for software development as everywhere else.

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Poor Results Should be Addressed by Improving the System Not Blaming Individuals

My response to: Where is the Deming study that asserts most errors are in organization or process?

There is no such study, it is based on Dr. Deming’s experience as I discuss in 94% Belongs to the System (improve the system, don’t blame the people in the system).

“I should estimate that in my experience most troubles and most possibilities for improvement add up to the proportions something like this: 94% belongs to the system (responsibility of management), 6% special.”

Page 315 of Out of the Crisis by W. Edwards Deming

Getting hung up on the figure 94% is a mistake. His point was that you improve performance going forward by improving the system not blaming people. His two books provide background and the thought process involved behind why we are failing to manage better. Changing the people, while leaving the system in place, most often doesn’t help.

Variation does confuse people sometimes. The same mistake as say yelling at someone any time results are really bad. Most likely results will get better. Not because yelling helps but essentially regression to the mean. So you can move people out after really bad results and things get better. Of course, most of the time they would have gotten better if you left the people there (and did nothing or yelled).

Even when the person did totally mess up, why did the system allow that? Why did the system put that person in a place where they were not qualified? Answering and fixing these types of questions would help improve the system and the results going forward.

Yes, occasionally the answer might be that Joel was hired sensibly, managed and coached sensibly but he just became a complete jerk and won’t respond to coaching and this is only his fault. But normally that won’t be the case, even when the person seems nearly totally to blame (and that isn’t even a very common situation – normally there are obvious weaknesses in the system that put them in the place to fail and will likely put anyone else in the same place in the future).

Related: Firing Workers Isn’t Fixing ProblemsPeople: Team Members or CostsCreate a System That Lets People Take Pride in Their WorkFind the Root Cause Instead of the Person to Blame

Resources for Using the PDSA Cycle to Improve Results

graphic image showing the PDSA cycle

PDSA Improvement cycle graphic from my book – Management Matters

Using the PDSA cycle (plan-do-study-act) well is critical to building a effective management system. This post provides some resources to help use the improvement cycle well.

I have several posts on this blog about using the PDSA cycle to improve results including:

The authors and consultants with Associates for Process Improvement have the greatest collection of useful writing on the topic. They wrote two indispensable books on the process improvement through experimentation: The Improvement Guide and Quality Improvement Through Planned Experimentation. And they have written numerous excellent articles, including:

Related: Good Process Improvement PracticesThe Art of Discovery (George Box)Planning requires prediction. Prediction requires a theory. (Ron Moen)

You are a Fool if You Do What I Say

Guest post from Mark Graban

There’s an interesting quote from Taiichi Ohno in “Taiichi Ohno’s Workplace Management,” which I was re-reading today…

“You are a fool if you do what I say. You are a greater fool if you don’t do as I say. You should think for yourself and come up with better ideas than mine.”

The best examples of Lean in healthcare are examples where leaders and organizations learned, but did not blindly copy. Sami Bahri DDS (the “lean dentist”) read Deming, Shingo, Ohno, etc. and had to figure this out himself, rather than copying some other dentist.

ThedaCare is the first to say “don’t directly copy what we do.”

We can learn from others, run our own experiments to see what works, and keep improving to make it better than even Ohno or Shingo would have imagined.

Related: Two resources, largely untapped in American organizations, are potential information and employee creativityRespect People by Creating a Climate for Joy in Work

Experience Teaches Nothing Without Theory

“Experience teaches nothing. In fact there is no experience to record without theory… Without theory there is no learning… And that is their downfall. People copy examples and then they wonder what is the trouble. They look at examples and without theory they learn nothing.”

W. Edwards Deming in The Deming of America




Our brains are good at creating theories, from our experiences, so that our brain can learn. However when this is done only subconsciously we can be led astray. And in complex situations where it is not easy to see the causal relationships (managing human systems for example) it easier for us to be led astray when we are not consciously thinking about the theory driving our thoughts and decisions.

When we are learning (as little kids) we don’t understand that are brain is creating theories to help us learn. But our brain is creating theories and testing them out. What happens when we push the spoon off our high chair? Lets try it 500 times and see. After repeated experiments, we learn a good deal about how gravity will affect objects no matter where you are, no matter if you are in a highchair, or a stroller or a slide or your mother’s lap… We also learn about how people will react (psychology).

Our brains are great at creating theories and testing them even without us understanding that is what is going on. But managers need to push past this subconscious learning to understand the theories behind their actions or they will spend lots of time on activities that are wasteful, similar to the bird in this webcast:

Worm charming is a behavior birds use to encourage worms to go to the surface so the birds can then eat them. The methods used vary, however tapping earth with feet to generate vibrations is widespread. One theory for why the worms go to the surface is the vibrations are similar to those produced by digging moles, which prey on earthworms.

This bird doesn’t understand the theory behind their instinct. Therefore the bird can’t understand that a worm is not likely to burst through the pavement. Too often managers are applying behaviors without understanding the theory (or without evidence showing that the practice based on the theory is effective – failing to practice evidence based management). And so the managers don’t understand that the behavior will not be successful given the conditions they find themselves in.

Related: We are Being Ruined by the Best Efforts of People Who are Doing the Wrong ThingHow We Know What We KnowThe Illusion of Knowledge

Executive Leadership

Senior executives must lead management improvement efforts. When senior executives only give lip service to management efforts the result is normally the same: little happens.

When Dr. Deming was working with companies after the 1980′s NBC white paper, If Japan Can Why Can’t We, he wouldn’t work with companies if the CEO wasn’t attending the meetings and learning how to manage the organization better. Dr. Deming had seen far too many CEOs want improvement but wanted to delegate the effort of getting there. Dr. Deming saw when senior executives delegated improving the management system it didn’t work.

There are a number of problems with senior executives not taking improvement seriously. First, and most common, they don’t really believe it and have no interest in improving practices – they just want to magically get better results without improving how things are done.

Second many senior executives don’t understand what management improvement is about. They think it is something those other people do on the factor floor or in the call center or somewhere. The most important changes will be in the c-suite for organizations that make substantial improvements. But when executives are out of touch (as so many are) in both management practice and how their organization actually works (at the gemba) then improvement efforts are extremely difficult.

If those senior executives are taking part in the improving the management system they will learn and then will be able to help improve the management system. If they are not engaged in actively working PDSA (on their workload) learning about variation, looking at their organization as a system, making changes to the organization given an understanding of respect for people the potential gains are severely limited.

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Lean Blog Podcast with John Hunter

Mark Graban interviewed me for the Lean Blog podcast series: Podcast #174 – John Hunter, “Management Matters” (listen using this link). Links to more information on what we discussed in the podcast.

More podcasts with me: Software Process and Measurement Podcast With John HunterBusiness 901 Podcast: Deming’s Management Ideas TodayProcess Excellence Network Podcast with John Hunter

94% Belongs to the System

I should estimate that in my experience most troubles and most possibilities for improvement add up to the proportions something like this: 94% belongs to the system (responsibility of management), 6% special.

Page 315 of Out of the Crisis by Dr. W. Edwards Deming.

the system that people work in and the interaction with people may account for 90 or 95 percent of performance.

Dr. Deming’s quote from the introduction to the Team Handbook

I think, in looking at the total of Deming’s work, that the point he is trying to make is that looking to blame people is not a good strategy for improvement. The impact due solely to a person’s direct action (not including their interaction with the system and with others) is small in comparison to that of the system within which they work. So, Deming (and I) want people to focus on improving the system; which will achieve better results than searching for what people did wrong.

What did Deming want people to take from his statements?

Did he want us just to accept bad results? No. He was not saying it is the system there is nothing we can do just accept that this is how things are. He wanted us to focus on the most effective improvement strategies. He saw huge waste directed at blaming people for bad results. He wanted to focus the improvement on the area with the greatest possibility for results.

Did he want to say people are just cogs in the machine? No. Read or listen to most anything he said at any significant length (a full chapter of this book, a full article he wrote on management, an hour from one of his videos) and it is hard to maintain such a thought.

photo of forest trail

Pinetree Trail, Frasers Hill, Malaysia by John Hunter

Did he believe that people were not important? No. He was trying to direct the focus of improvement efforts to look not at the fault with one person but to look at the system. I believe strongly he was correct. If you blame a person as the root cause of a problem, my first, second and third reactions are why? why? why? It is possible the person is to blame and there is no benefit to exploring system improvement instead of settling for blaming the person. But that is rare.

I have written about the importance of developing people to build the capability of the organization. My father wrote about it previously, “American organizations could compete much better at home and abroad if they would learn to tap the potential information inherent in all processes and the creativity inherent in all employees.”

I wrote about the importance of the ideas behind Deming’s quotes here, back in 2006 – Find the Root Cause Instead of the Person to Blame

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George Box

I would most likely not exist if it were not for George Box. My father took a course from George while my father was a student at Princeton. George agreed to start the Statistics Department at the University of Wisconsin – Madison, and my father followed him to Madison, to be the first PhD student. Dad graduated, and the next year was a professor there, where he and George remained for the rest of their careers.

George died today, he was born in 1919. He recently completed An Accidental Statistician: The Life and Memories of George E. P. Box which is an excellent book that captures his great ability to tell stories. It is a wonderful read for anyone interested in statistics and management improvement or just great stories of an interesting life.

photo of George EP Box

George Box by Brent Nicastro.

George Box was a fantastic statistician. I am not the person to judge, but from what I have read one of the handful of most important applied statisticians of the last 100 years. His contributions are enormous. Several well know statistical methods are known by his name, including:

George was elected a member of the American Academy of Arts and Sciences in 1974 and a Fellow of the Royal Society in 1979. He also served as president of the American Statistics Association in 1978. George is also an honorary member of ASQ.

George was a very kind, caring and fun person. He was a gifted storyteller and writer. He had the ability to present ideas so they were easy to comprehend and appreciate. While his writing was great, seeing him in person added so much more. Growing up I was able to enjoy his stories often, at our house or his. The last time I was in Madison, my brother and I visited with him and again listened to his marvelous stories about Carl Pearson, Ronald Fisher and so much more. He was one those special people that made you very happy whenever you were near him.

George Box, Stuart Hunter and Bill Hunter (my father) wrote what has become a classic text for experimenters in scientific and business circles, Statistics for Experimenters. I am biased but I think this is acknowledged as one of (if not the) most important books on design of experiments.

George also wrote other classic books: Time series analysis: Forecasting and control (1979, with Gwilym Jenkins) and Bayesian inference in statistical analysis. (1973, with George C. Tiao).

George Box and Bill Hunter co-founded the Center for Quality and Productivity Improvement at the University of Wisconsin-Madison in 1984. The Center develops, advances and communicates quality improvement methods and ideas.

The Box Medal for Outstanding Contributions to Industrial Statistics recognizes development and the application of statistical methods in European business and industry in his honor.

All models are wrong but some are useful” is likely his most famous quote. More quotes By George Box

A few selected articles and reports by George Box

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Software Process and Measurement Podcast With John Hunter

In my podcast with Tom Cagley, Software Process and Measurement Cast: John Hunter on Management Matters, as you might expect there was a bit of a focus on software development and agile software development as related to the ideas I expressed in Management Matters: Building Enterprise Capability.

photo of John Hunter at the Borobudur Temple

John Hunter at the Borobudur Buddhist Temple in Indonesia.


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Podcast Discussion on Management Matters

I continue to record podcasts as I promote my new book – Management Matters: Building Enterprise Capability. This the second part, of 2, of my podcast with Joe Dager, Business 901: Management Matters to a Curious Cat. The first part featured a discussion of 2 new deadly diseases facing companies.

image of the cover of Managmenet Matters by John Hunter

Management Matters by John Hunter

Download this podcast.

Links to more information on some of the topics I mention in the podcast:

More podcasts: Process Excellence Network Podcast with John HunterBusiness 901 Podcast with John Hunter: Deming’s Management Ideas Today (2012)Leanpub Podcast on Management Matters: Building Enterprise Capability

Process Excellence Network Podcast with John Hunter

image of the cover of Managmenet Matters by John Hunter

Management Matters by John Hunter

Diana Davis with the Process Excellence Network interviewed me for their podcast series, process perspective – Management Matters: Interview with author John Hunter (listen to podcast). Additional details on some of the ideas we discussed:

Related: podcasts and interviews on Management MattersBusiness 901 podcast: Two New Deadly Diseases for BusinessDeming’s Management Ideas Today (podcast with John Hunter)

Business 901 Podcast: Two New Deadly Diseases for Business

I continue to record podcasts as I promote my new book – Management Matters: Building Enterprise Capability. In this podcast I discuss the 2 new deadly diseases facing companies. The second part of the Business 901 podcast will be posted soon.

Links to more information on items discussed in the podcast: Dr. Deming’s 7 Deadly Diseases + 2

Executive pay:

Copyright and Patents

I have created a new subreddit for posting links to interesting items about the new deadly diseases for business.

Related: Interviews for Management Matters: Building Enterprise Capabilityprevious business 901 podcastLeanPub podcast on Management Matters

Leanpub Podcast on My Book – Management Matters: Building Enterprise Capability

image of the cover of Managmenet Matters by John Hunter

Management Matters by John Hunter

I recently was interviewed for a podcast by Len Epp with Leanpub: Leanpub Podcast Interview #9: John Hunter. I hope you enjoy the podcast (download the mp3 of the podcast).

In the podcast we cover quite a bit of ground quickly, so the details are limited (transcript of the interview). These links provide more details on items I mention in the podcast. They are listed below in the same order as they are raised in the podcast:

The last 15 minutes of the podcast I talk about some details of working with Leanpub; I used Leanpub to publish Management Matters. I recommend Leanpub for other authors. They don’t just have lean in their name, they actual apply lean principles (focusing on the value chain, eliminating complexity, customer focus, etc.) to operating Leanpub. It is extremely easy to get started and publish your book.

Leanpub also offers an excellent royalty plan: authors take home 90% of the revenue minus 50 cents per book. They publish without “digital rights management” crippling purchasers use of the books. Buyers have access to pdf, kindle (mobi) and epub (iPad, nook) format books and get access to all updates to the book. All purchases include a 45 day full money back guaranty.

Related: Business 901 Podcast with John Hunter: Deming’s Management Ideas TodayInterviews for Management Matters: Building Enterprise Capability

Management Blog Review 2012: Gemba Walkabout

This is my second, of two, 2012 management blog review posts. In this post I look back at the last year on Mike Stoecklein’s Gemba Walkabout blog. Mike is the Director of Network Operations at Thedacare Center for Healthcare Value.

photo of Mike Stoecklein
  • In a very long post, Some thoughts on guiding principles, values & behaviors, he provides a sensibly explanation for one the real difficulties organization have making progress beyond a certain point (project success but failure to succeed in transforming the management system). “I’m not saying this approach (focus on tools, teams, events) is wrong, but I do think it is incomplete. I think we also need to work from right to left – to help people understand the guiding principles, to think about the kinds of systems they want and to use tools to design and redesign those systems. Dr. Shigeo Shingo said, ‘people need to know more than how, they need to know why’.

    Most managers view their organization like an org chart, managed vertically. They assume that the organization can be divided into parts and the parts can be managed separately

    It’s what they believe, and what they don’t know is that is is wrong – especially for a complex organization.
    If their thinking was based on the guiding principles (for instance “think systemically”) they would manage their organization differently. They would see their organization as as set up interdependent components working together toward a common aim.”
  • Reflections on My (Brief) Time with Dr. Deming – “The executives thought he was pleased. When they were done with their ‘show’ he thanked them for their time, but he wanted to know what ‘top management’ was doing. He pointed out that they were talking about improvements on the shop floor, which accounted for only about 3 percent of what was important.” When executives start to radical change what they work on the organization is starting to practice what Dr. Deming taught. Mike recorded a podcast with Mark Graban on working with Dr. Deming.
  • Standard Work and PDSA – “What I have noticed is that sometimes people insert another wedge (shown as black) in the diagram below. So, progress gets stopped because some seem to believe that standard work doesn’t get adjusted as you make improvement.” This is a brilliant graphic including the text standard work misued. The 2 biggest problem with “standard work” in practice is ignoring the standards and treating them as barriers to improvement. Standard work should be practiced and if that is a problem the standard work guidance should be changed.
image showing how failure to adjust standard work can block progress

During the year stay current with great posts twice a month via the Curious Cat Management Improvement Carnival.

Related: Management Blog Review 2012: Not Running a Hospital2011 Management Blog Roundup: Stats Made EasyStandardized Work InstructionsAnnual Management Blog Review: Software, Manufacturing and Leadership

Customers

Customer focus is critical to succeed with management improvement efforts. Few argue with that point, though my experience as a customer provides plenty of examples of poor systems performance on providing customer value (usability, managing the value stream well, etc.).

At times people get into discussion about what counts as a customer. Are customers only those who pay you money for a product or service? What about internal customers? What about users that don’t pay you, but use your product (bought from an intermediary)? What about users that use a service you provide for free (in order to make money in another way, perhaps advertising)? What about “internal customers” those inside your organization without any payment involved in the process?

I find it perfectly fine to think of all these as customers of slightly different flavors. What is important is providing what each needs. Calling those that actually use what you create users is fine, but I think it often just confuses people rather than adding clarity, but if it works in your organization fine.

To me the most important customer focus is on the end users: those that derive value from what your organization provides. If there is confusion between various customer groups it may be helpful to use terms like end user, but really using the term customer for a wide range or customers is fine (and modification such as internal customer to provide some clarity).

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Respect for Everyone

TL;DR – The two pillars of the Toyota Way are: respect for people and continuous improvement.

One of the big reasons my career followed the path it did (into management improvement) was due to the impact of respect for people. My father was a professor (in statistics, engineering and business) and consulted with organizations to help them achieve better results. To achieve results he took advantage of the gains possible when using statistical tools to manage with respect for people.

Managing Our Way to Economic Success: Two Untapped Resources, 1986: “American organizations could compete much better at home and abroad if they would learn to tap the potential information inherent in all processes and the creativity inherent in all employees.”

After he died, for years, people would talk to me about the difference he made in their lives (at conferences mainly). Other than those with PhD’s in statistics (of which there were many, but a very small number compared to all the others) the thing that made a difference was respect for people. Those who chose to talk to me are obviously a self selected group. But of those, the people that made the largest impact on me basically said he talked to me as though everything I said mattered. He didn’t talk down to me. He helped me see how I could help improve: the organization and my own skills and abilities.

This didn’t happen 5 times or 10 times of 20 times, it happened many more times than that. Year after year of this helped push me to stick with management improvement. These served as a great incentive to perserve as I ran into the typical difficulties actually improving management systems.

The senior executives he talked to were not very impressed that he spoke to them with respect. So none mentioned that with awe, but a few did notice that he was able to connect with everyone – the senior executives, nurses, people on the factory floor, secretaries, salespeople, front line staff, engineers, janitors, middle managers, doctors, union leaders. The senior executives were more likely to be impressed by the success and his technical ability and knowledge as well as communication skill. Doctors, statisticians and engineers were more impressed with knowledge, technical skill, skill as a teacher and advice.

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The W. Edwards Deming Institute Blog

The W. Edwards Deming Institute logo

I am authoring the new W. Edwards Deming Institute Blog. Make sure you subscribe to the Deming Institute blog’s RSS feed if you want to keep up with my posts there.

Some of the posts so far:

I will continue posting to this blog (the Curious Cat Management Improvement Blog): subscribe to the RSS feed for this blog.

Related: My New Book, Management MattersASQ Influential VoicesJohn Hunter online

Special Cause Signal Isn’t Proof A Special Cause Exists

One of my pet peeves is when people say that a point outside the control limits is a special cause. It is not. It is an indication that it likely a special cause exists, and that special cause thinking is the correct strategy to use to seek improvement. But that doesn’t mean there definitely was a special cause – it could be a false signal.

This post relies on an understand of control charts and common and special causes (review these links if you need some additional context).

Similarly, a result that doesn’t signal a special cause (inside the control limits without raising some other flag, say a run of continually increasing points) does not mean a special cause is not present.

The reason control charts are useful is to help us maximize our effectiveness. We are biased toward using special cause thinking when it is not the most effective approach. So the control chart is a good way to keep us focused on common cause thinking for improvement. It is also very useful in flagging when it is time to immediately start using special cause thinking (since timing is key to effective special cause thinking).

However, if there is result that is close to the control limit (but inside – so no special cause is indicated) and the person that works on the process everyday thinks, I noticed x (some special cause) earlier, they should not just ignore that. It very well could be a special cause that, because of other common cause variation, resulted in a data point that didn’t quite reach the special cause signal. Where the dot happened to land (just above or just below the control limit – does not determine if a special cause existed).

The signal is just to help us systemically make the best choice of common cause or special cause thinking. The signal does not define whether a special cause (an assignable cause) exists of not. The control chart tool helps guide us to use the correct type of improvement strategy (common cause or special cause). But it is just a signaling device, it isn’t some arbiter of whether a special cause actually exists.

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