Category Archives: Deming

Lead by Building Organizational Capability

The result of a recent interview with me has been posted: How to Lead From Any Level In the Organization

2. Help people solve their problems.

Similar to helping other people grow their careers is the idea of helping other people to solve their problems. Again, this starts with a clear understanding of your sphere of influence. “It determines what strategies you can pursue, and building your sphere of influence should be part of your decision making process.”

What it comes down to is proving yourself in this way—and doing so consistently. “It isn’t some secret sauce. Prove yourself to be valuable and you will gain influence. Help people solve their problems. They will be inclined to listen to your ideas.” And helping people to solve their problems doesn’t mean you are giving them the answer. It may mean you asking empowering questions.

John says if you focus on building the capability in the organization to understand variation and to appreciate how to use data—then you are on the right path, and can increase your influence in addition.

“You need to build into the organization things like a focus on pleasing the customer instead of pleasing your boss.” When combining all of these methods, that is when your leadership is going to be most effective.

Hopefully you will find the entire post worthwhile.

More links related to interviews with me about improving management: Leadership While Viewing the Organization as a System, Business 901 Podcast Deming’s Management Ideas Today, Meet-up: Management Improvement Leader John Hunter.

Culture Change Requires That Leaders Change Their Behavior

This month The ASQ Influential Voices are reacting to Luciana Paulise’s post:
Facing Cultural Barriers by Leaders to Strengthen a Culture of Quality.

As Luciana stated:

leaders need to change their behavior first if they want to change the entire company culture

W. Edwards Deming wrote in The New Economics:

The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge.

The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people. Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to.

I believe for significant changes to culture transformation of the individual is required. And I have seen this take place many times. Real gains can be made by applying a few tools and concepts effectively; without transformation. But changes to the culture come from significant changes in how people think.

In a previous post I wrote about What to Do To Create a Continual Improvement Culture

In order to create a culture that enhances your effort to continually improve you must crate systems that move things in that direction. Part of that system will be the continual assessment of how your organization is falling short of your desired culture. This requires honest assessment of the current state. And it requires those in leadership to design systems to get a clear picture on what is really happening in their organization.

Related: Create a Culture Seeking Continual Improvement or Use Band-Aids?Transforming a Management System – A Case Study From the Madison Wisconsin Police DepartmentChange is not Necessarily Improvement

Change Management: Create a Culture Seeking Continual Improvement or Use Band-Aids?

Successfully shepherding change within an organization is often a challenge. Often change management strategies are mainly about how to cope with a toxic culture but exclude the option of fixing the toxic culture. Why not address the root causes instead of trying band-aids?

The most effective strategy is to build an organizational culture into one that promotes continual improvement. A continual improvement culture is one that is constantly changing to improve (grounded in long term principles: respect for people, experiment, iterate quickly, etc.).

You can try to push change in an ad hoc basis by adopting some strategies to create a similar feeling about the individual change effort. But that isn’t as effective as establishing them in the culture are. Strategies such as: going the gemba, pdsa, build trust via respect for people…

These tools and concepts build trust within the organization. The do that by showing people are respected and that the change effort isn’t just another in the long line of wasted effort for ineffectual change. The first part can be addressed, normally the second part can’t be addressed effectively. Often that is at the core of the issue with why the change effort isn’t working. It is a bad solutions. It hasn’t been tested on a small scale. It hasn’t been iterated numerous times to take a seed of an idea and grow it into a proven and effective change that will be successful. If it had been, many people would be clamoring for the improvement (not everyone, true, but enough people).

But still you can use strategies to cope with lack of trust in your intentions with the change and lack of trust in the effectiveness and fear of change. Some of those are included in the links below. But mainly my strategy is based on focusing on building the proper culture for long term excellence and the change management strategies are just short term coping mechanisms to help deal with the initial challenges. Using those strategies as a long term solution for dealing with change in a toxic culture isn’t a very sensible way to manage.

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Transforming a Management System – A Case Study From the Madison Wisconsin Police Department

This post in an excerpt from The Quality Leadership Workbook for Police by Chief David Couper and Captain Sabine Lobitz (buy via Amazon).

cover image of the New Quality Leadership Workbook for Police

The New Quality Leadership Workbook for Police

Transformational Steps
A Case Study Madison, Wisconsin (1981-1993)

Step 1: Educate and inform everyone in the organization about the vision, the goals, and Quality Leadership. This step must be passionately led by the top leader.

  • Begin discussion with top management team and train them.
  • Discuss and ask employees; get feedback from them.
  • Share feedback with the chief and his management team.
  • Get buy-in from top department managers.
  • Survey external customers—citizens; those who live and work in the community.
  • Create an employee’s advisory council; ask, listen, inform, and keep them up to date on what’s going on.
  • The chief keeps on message; tells, sells, and persuades, newsletters, meetings and all available media.

Step 2: Prepare for the transformation. Before police services to the community can be improved, it is essential to prepare the inside first — to cast a bold vision and to have leaders that would “walk the talk.”

  • Appoint a top-level, full-time coordinator to train, coach, and assist in the transformation.
  • Form another employee council to work through problems and barriers encountered during implementation of the transformation and Quality Leadership.
  • Require anyone who seeks to be a leader to have the knowledge and ability to practice Quality Leadership.

Step 3: Teach Quality Leadership. This begins at the top with the chief and the chief’s management team.

  • Train all organizational leaders in Quality Leadership.
  • Train all employees as to what Quality Leadership is, why the transformation is necessary, and what it means for them.

Step 4: Start practicing Quality Leadership. If top managers within the organization are not authentically practicing Quality Leadership neither will anyone else.

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A Strong Management System Handles the Transition of Leaders With Ease

Part three (of three) of an interview of me with Bill Fox has been published.

Leadership While Viewing the Organization as a System

…So if I see the weak management system as the problem, the solution is not nearly as easy as coming up with a new CIO. I don’t really think the problem is so much the CIO not being a good manager – because the system shouldn’t allow a new manager to come in and ruin a good management system. The management system is the problem. So we need to fix that and that’s a very long, hard thing to do well, but it’s the kind of thing that a company like Toyota does.

So, you have to try to build that strong organizational structure; one that isn’t so fragile that when one or two senior leaders change, things fall apart. But it’s very difficult and many organizations have weak management systems. It’s a lot easier to accomplish in smaller organizations, because individuals can have a bigger say. If you’re in an organization of a hundred people, and there’s been some real success with lean or Deming’s ideas, and some new person comes in and tries to get rid of it, people stand up and say “No”.

In big, huge organizations, it often can be very difficult because there’s all sorts of big internal politics and issues that get involved

It is a fragile management system that allows the change of one or two leaders, whether they are leaders as in a CFO sense or whether they are this great software developer that had the whole team doing lean software and as soon as they leave, it just falls apart because they were the personality that made the whole thing work. When the changes relied on that person, there wasn’t really a system improvement: as soon as they left, the apparent system improvements collapse.

Read the full interview with more on how to build a strong management system based on the understanding of the organization as a system.

Related: If a a company is dependent on one (or a few) people to perform then it is in dangerExecutive LeadershipA Good Management System is Robust and Continually Improving

Remembering Peter Scholtes

Guest Post by Fazel Hayati

Fall always reminds me of my friend Peter Scholtes. It was during 2008 annual Deming Institute fall conference in Madison, Wisconsin when Peter said farewell to his friends and colleagues. He gave a keynote titled Deming 101 (that full speech can be watched online). Although inactive for many years and managing numerous health challenges, he was sharp, witty and very happy to be talking about Dr. Deming, systems thinking, problems with performance appraisal, talking to his old friends and reminiscing. Anticipating this event had really energized him. He told me numerous times he was very grateful for the opportunity. He passed away in July 11, 2009.

Peter Scholtes, 2008

Peter Scholtes at Deming Conference in Madison, Wisconsin, 2008

Peter wrote two seminal books, both remain relevant years after their publication. The Team Handbook remains one of the best in developing teams and it has helped many organizations to improve quality and productivity through team building. The Leader’s Handbook is one of the best elaborations on Dr. Deming’s System of Profound Knowledge.

Peter articulated Dr. Deming’s teaching and incorporated his own experience in six competencies for leaders:

  1. The ability to think in terms of systems and knowing how to lead systems,
  2. the ability to understand the variability of work in planning and problem solving,
  3. understanding how we learn, develop, and improve; leading true learning and improvement,
  4. understanding people and why they behave as they do,
  5. understanding the interaction and interdependence between systems, variability, learning, and human behavior; knowing how each affects others (Figure 2-16, Page 44, Leader’s Handbook),
  6. giving vision, meaning, direction, and focus to the organization.

No one has done a better job of operationalizing Dr. Deming’s teachings.

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Revolutionary Management Improvement May Be Needed But Most Management Change is Evolutionary

This month the ASQ Influential Bloggers were asked to respond to the question – will the future of quality be evolutionary or revolutionary?

I think it has been and will continue to be both.

Revolutionary change is powerful but very difficult for entrenched people and organizations to actually pull off. It is much easy to dream about doing so.

Often even revolutionary ideas are adopted in a more evolutionary way: partial adoption of some practices based on the insight provided by the revolutionary idea. I think this is where the biggest impact of W. Edwards Deming’s ideas have been. I see him as the most revolutionary and worthwhile management thinker we have had. But even so, few organizations adopted the revolutionary ideas. Most organizations nibbled on the edges and still have a long way to go to finally get to a management system he was prompting 30,40 or more years ago.

A few organizations really did some revolutionary things based on Deming’s ideas, for example: Toyota. Toyota had some revolutionary moves and adopted many revolutionary ideas brought forward by numerous people including Taichii Ohno. But even so the largest impact has been all those that have followed after Toyota with the lean manufacturing strategies.

And most other companies have taken evolutionary steps from old management paradigms to adopt some new thinking when trying out lean thinking. And frankly most of those efforts are so misguided or incredible small they barely qualify. But for those that successfully improved their management system they were mainly evolutionary.

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Toyota Posts Record Profit: Splits $15 million in Pay and Bonus for top 21 Executives

After posting record profits of $17.9 billion Toyota proposes to increase the pay and bonus for the top 21 executives to $14.9 million. That is not as you might expect just the increase in the bonus to the CEO. That is the entire pay and bonus for the top 21 executives. That places all 21 together below the top 50 CEO paydays in the USA.

Toyota’s net income for the year surged 89.5%. While the profits are partially due to good management at Toyota the decline in value of the yen also greatly aided results.

Management Pockets A 19% Raise As Toyota Racks Up Records Profits

Toyota proposed 1.52 billion yen ($14.9 million) in combined compensation and bonuses to 21 directors, including President Akio Toyoda, in a notice to shareholders Tuesday. The Toyota City, Japan-based company paid 1.28 billion yen the previous fiscal year.

By comparison, total pay for union workers increased 8.2 percent [this was linked to an article as a source but the link was broken, so I removed it] on average from last fiscal year. The carmaker granted the union’s request for workers’ average bonus to rise to 2.44 million yen, the equivalent of 6.8 months of salary.

The company forecasts a 2% slip in net profit to $17.5 billion for 2015.

Toyota continues to generate cash flow extremely well and has over $20 billion in cash at the end of their 2014 FY. They are also increasing the dividend to stockholders and buying back more stock.

Less than a handful of USA CEOs that is took more from their companies treasuries than all 21 off the Toyota leaders take together led their company to greater earnings than Toyota (only a few companies earned more: Apple, Google, Exxon…). The thievery practiced by senior executives in the USA is immoral and incredibly disrespectful to the other workers at the company and the stockholders.

ExxonMobil did earn more and their CEO took $28.1 million. I think Chevron and Wells Fargo may have earned more than Toyota with a CEOs taking $20.2 and $19.3 million respectively.

Alan Mulally, Ford CEO, took $23.2 million while the company earned $7 billion. If you can ignore his massive and disrespectful taking what he doesn’t deserve he has been an acceptable CEO in other ways.

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Cognition: How Your Mind Can Amaze and Betray You

The webcast above is from the excellent folks at Crash Course. This webcast provides another view into the area of Deming’s management system on the theory of knowledge (the one most people forget), how we know what we know and how that belief isn’t always right.

Two of the four components of Dr. Deming’s management system were about our brains (psychology is the other) which makes a great deal of sense when you think about how focused he was on the human element in our organizations (and the others are viewed significantly by how they interact with our brains – how we view variation, how we often fail to look at the whole system when drawing conclusions, etc.).

I believe most people don’t give nearly enough attention to theory of knowledge especially and also psychology within the context of an organization. They are a bit messy and vague and dependent and not easy to create simple cut and paste instructions for how to manage. This webcast takes a different look at it without connections back to management but I think most people need to spend more time thinking about these ideas. This video can help you do that.

If you are constantly (multiple times a minute in this video) seeing the connections with Deming and how the points relates to management that is a good sign. If not, that probably means you should spend more time reading and thinking about the theory of knowledge and psychology (see managing people posts).

Related: Customers Are Often IrrationalRevealed preference versus stated preferenceHow We Know What We KnowThe Neuroscience of DemingIllusions: Optical and Other

George Box Articles Available for a Short Time

A collection of George Box articles have been selected for a virtual George Box issue by David M. Steinberg and made available online.

George E. P. Box died in March 2013. He was a remarkably creative scientist and his celebrated professional career in statistics was always at the interface of science and statistics. George Box, J. Stuart Hunter and Cuthbert Daniel were instrumental in launching Technometrics in 1959, with Stu Hunter as the initial editor. Many of his articles were published in the journal. Therefore we think it is especially fitting that Technometrics should host this on-line collection with some of his most memorable and influential articles.

They also include articles from Journal of the American Statistical Association and Quality Engineering. Taylor & Francis is offering these articles freely in honor of George Box until December 31st, 2014. It is very sad that closed science and engineering journals block access to the great work created by scientists and engineers and most often paid for by government (while working for state government universities and with grants organizations like the National Science Foundation[NSF]). At least they are making a minor exception to provide the public (that should be unlimited access to these works) a limited access to these articles this year. These scientists and engineers dedicated their careers to using knowledge to improve society not to hide knowledge from society.

Some of the excellent articles make available for a short time:

The “virtual issue” includes many more articles.

Related: Design of Experiments: The Process of Discovery is IterativeQuotes by George E.P. BoxThe Art of DiscoveryAn Accidental Statistician: The Life and Memories of George E. P. Box

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