Agile Software Development and Deming
Posted on October 2, 2014 Comments (1)
Part two of three of an interview of me with Bill Fox has been published. See part one: John Hunter on PDSA, Deming and Strategy. From part two, Lean, Agile, Deming, Leadership and Management Systems:
So it seems to me many of the leading agile and lean folks have tracked it back to Deming and then incorporated some Deming’s thinking. Now, the majority of people that are doing agile stuff have no idea that so many of the ideas track back to Deming so well. But I think that agile stuff is largely very consistent with Deming.
And it’s even largely very consistent with Deming when the words don’t match up correctly. So, one of the agile tenets is people over process. That’s not at all what Deming would say. But, in my opinion (from when I read a bunch of the agile stuff and was trying to figure out how to fit things together), what they really said was that the work that people are doing should not be prescribed from on high by processes that prohibit them from doing the work effectively.
In the software development world, they were used to processes being driven by heavy handed business ideas that don’t fit very well with how software development should be done. So that they see the word â€˜process’ as tied to heavily prescriptive ideas from people that don’t understand software development imposing process on software development.
Read the full interview with more on how the Deming management system fits with other management strategies.
Strategy Based on Capability and Integrated with Execution
Posted on September 23, 2014 Comments (1)
If you read about management and organizational strategy you will read a lot about planning and alignment and the process of creating a strategy. I believe too little focus is given to building the capability of the organization to execute on the strategy (and continual management improvement). Lofty ideas without capability are not of much use.
“Strategy” without a thorough understanding of the organization as a system or an understanding of the capabilities of the organization is little more than dreams. Planning and strategy without the capability in the organization or a process to turn strategy into action are not much use.
I find strategy without involving the whole organization is fragile and likely to amount to not much good; and often lots of wasted effort. In order to involve the whole organization in strategy use ideas like Hoshin Kanri (policy deployment) and catchball.
The integrated nature of hoshin kanri is critical to success. It is integrated both by including the whole organization (not just a few executives) and has integration between planning and execution. Both of those are critical.
In practice hoshin kanri is also based on continual improvement. The effectiveness the first year is better than the normal way of defining strategy and then maybe doing something about it. But the large differences are seen years into the effort as the process is improved each year and the capability of the organization to plan effectively and then execute on that plan are increased.
As you have success with small attempts at hoshin kanri you can build on the growing capability of the organization to try more ambitious strategies.
Related: Interview of John Hunter on PDSA, Deming, Strategy and More – Innovation Strategy – How to Get a New Management Strategy, Tool or Concept Adopted – Be Careful What You Measure – Building the Capability for Management Improvement in Your Organization – Out of Touch Executives Damage Companies: Go to the Gemba
Take Advantage of the Strengths Each Person Brings to Work
Posted on September 17, 2014 Comments (4)
Darrell Bevell, offensive coordinator of the world champion Seattle Seahawks and former quarterback of the Wisconsin Badgers provides a good guide for managers. “Russell” in the quote is Seattle’s quarterback Russel Wilson; also a UW-Madison alumni.
Managers should be setting up the organization to take maximum advantage of the strengths of the people in the organization while minimizing the impact of weaknesses.
“Refusing to fail” by saying you refuse and yelling and stomping around if you fail doesn’t work. But if you commit to improve, not just the exciting stuff but every important detail you can create a climate of success. You create a system that works and builds on the skills, ability and desire to do great work that your employees bring to work.
Sure you fix what is broken. But you also improve what is working well. You figure out where the system isn’t optimized for the abilities of the people and you address that by changing the system to take advantage of everyone’s capabilities while limiting the impact of people’s weaknesses.
Peter Drucker Discussing The Work of Juran, Deming and Himself
Posted on September 10, 2014 Comments (2)
In this clip Peter Drucker talks about Japan and his work there as well as the work of W. Edwards Deming and Joseph Juran.
His discussion highlights how he remembers the Japanese were so willing to take new ideas and implement them immediately. There was not a reluctance to try things that “were not invested here.” They were also ready to abandon ideas if they were tried and didn’t work.
Drucker talked about the shared importance he, Deming and Juran put on the importance of valuing all employees and creating management systems that capture all the value they can offer. He spoke of all 3 of them tilted against those that believed in command and control business organizations. Sadly the lack of respect for all workers is still common today; but it is much better than is was due to the work of these 3 management experts.
In this clip Drucker mentions Just-In-Time works well for Toyota but companies trying to copy it find it doesn’t work for them because they are trying to install it on top of a system that doesn’t support it. The exact same point was made in a clip I posted in my post on Monday to the Deming Institute blog.
Peter Drucker speaking of Juran’s ideas on quality
In the clip, from the early 1990’s, Drucker says
Magnetic White-Board Kanban Card Options
Posted on September 2, 2014 Comments (0)
Just some quick ideas for Kanban whiteboard magnetic card options from a question I answered on Reddit.
Here is the best lean solution: Trying Out My Agile Kanban Board from Jon Miller.
Ok, welcome back. In addition to thinking his blog is great the solution from his blog is very flexible and easy – though it isn’t quite a packaged solution (as asked for on Reddit). Also that post provides some good insight into the thinking behind the board (as well as how to create your own).
More links with kanban board options: Magnetic whiteboard cards (50-pack) – Physical Taskboards – I think just magnetic symbols (not magnetic white board card) but could use magnet with icon to stick paper to the board
Another silly site, that sells some sort of solution, blocked my access because they don’t sell in the country my computer reported being located in. So I didn’t give them a free plug (assuming their product was decent which it might be?). Very dumb design if you ask me; well even though you didn’t ask, I told you anyway.
Localization that impedes users rather than helping them seems far far too common in my experience. Mapping (and related – find closest…) uses are about the only localization stuff I find useful – country based localization I nearly always find annoying or crippling. And showing my location on a map is totally awesome (especially as I travel around as a tourist – or really in whatever capacity). Such bad design and poor usability decisions cost companies money.
Revolutionary Management Improvement May Be Needed But Most Management Change is Evolutionary
Posted on August 26, 2014 Comments (1)
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.
Out of Touch Executives Damage Companies: Go to the Gemba
Posted on August 20, 2014 Comments (0)
When your customer service organization is universally recognized as horrible adding sales requirements to customer service representatives jobs is a really bad practice. Sadly it isn’t at all surprising to learn of management doing just that at our largest companies. Within a system where cash and corruption buys freedom from market forces (see below for more details) such practices can continue.
Such customer hostile practices shouldn’t continue. They shouldn’t be allowed to continue. And even though the company’s cash has bought politically corrupt parties to allow such a system to survive it isn’t even in the selfish interest of the business. They could use the cover provided by bought-and-paid-for-politicians-and-parties to maintain monopolistic pricing (which is wrong ethically and economically but could be seen as in the self interest of a business). But still provide good service (even while you take monopolistic profits allowed with corrupt, though legal, cash payments).
Of course, Adam Smith knew the likely path to corruption of markets made up of people; and he specifically cautioned that a capitalist economic system has to prevent powerful entities efforts to distort markets for individual gain (perfect competition = capitalism, non-competitive markets = what business want, as Adam Smith well knew, but this is precisely not capitalism). Sadly few people taking about the free-market or capitalism understand that their support of cronyist policies are not capitalist (I suppose some people mouthing those words are just preaching false ideas to people known to be idiots, but really most don’t seem to understand capitalism).
Anyway, this class of protected businesses supported by a corrupt political and government (regulators in government) sector is a significant part of the system that allows the customer hostility of those politically connected large businesses to get away with a business model based on customer hostility, but wasn’t really what I meant to write about here.
Comcast executives have to know they are running a company either rated the worst company in the country or close to it year after year. They, along with several others in their industry, as well as the cell phone service providers and too-big-to-fail-banks routinely are the leaders of companies most reviled by customers. Airlines are also up their for treating customer horribly but they are a bit different than the others (political corruption is much less of the reason for their ability to abuse customers for decades than is for the others listed above).
Leaked Comcast employee metrics show what we figured: Sell or perish [Updated]
Training materials explicitly require a “sell” phase, even in support calls.
The company’s choice to transform what is traditionally a non-revenue-generating area—customer service—into a revenue-generating one is playing out with almost hilariously Kafkaesque consequences. It is the nature of large corporations like Comcast to have dozens of layers of management through which leadership instructions and directives are filtered. The bigger the company, the more likely that members of senior leadership (like Tom Karinshak) typically make broad policy and leave specific implementations to lower levels.
Here, what was likely praised in the boardroom as an “innovative” strategy to raise revenue is instead doing much to alienate customers and employees alike. Karinshak’s assurances that he doesn’t want employees to feel pressured to sell in spite of hard evidence that Comcast demands just that are hard to square with the content of the document.
So what is going on here? Most people can easily see this is likely a horrible practice. It is a practice that a well run company theoretically could pull off without harming customers too much. But for a company like Comcast to do this it is obviously going to be horrible for customers (same for all those too-big to fail banks, cell phone service providers and other ISPs and cable TV providers).
Lets just pretend Comcast’s current leadership executives were all replaced with readers of the Curious Cat Management Improvement blog. And lets say that for now you are suppose to focus on improving the policies in place (while thinking about policy changes for later but not making them yet).
Use Urls – Don’t Use Click x, Then Click y, Then Click z Instructions
Posted on August 14, 2014 Comments (1)
In the 1980s software applications had to use click x, then click y, then click z type instructions to get you to a specific location in a software application (or at least they had a decent excuse to do that). Too many web application development organizations forget that they now have urls to direct people exactly where to go: and that they shouldn’t rely on ancient “click here, then there, then in that other place” type instructions.
Here is an example I wrote up on my recent experience with iTunes and their failure to do this properly: Bad iTunes Ux and How to Submit a Podcast to iTunes. I see it all the time, that is just one example.
It is so sad that Google can’t even offer mildly decent help for their own software nearly a couple decades after they started out with the goal to organize the world’s information. And lots of other software companies also point you to clicking around various gui (graphical user interface) click paths instead of just
- showing the url (say in a help email) – instead of the gui click path text
- a clickable link to the url in web documents
On top of the waste inherent in click path instructions they often fail because the interface has changed and no one bothered to change the click path or the click path depends on other things being a certain way and they are not so the click path breaks.
I really can’t comprehend how this usability failure is something I run across all the time. Urls are not some secret idea only PhD computer scientists have heard of. This is super basic stuff – click path instructions should never have been acceptable for any web application. It is pitiful they are still common among companies that see themselves as advanced software development organizations.
Using the proper urls also will help make sure you are using human readable urls. Another super basic usability concept that is ignored far too often by some web application developers.
Related: Usability, Customer Focus and Internet Travel Search – Making Life Difficult for Customers – Practicing Mistake-Promoting Instead of Mistake-Proofing at Apple – Password Gobbledygook Instruction (more bad usability) – What I Would Include in a Redesigned Twitter Profile (2014)
Vision can be a Powerful Driver but Most Often It is Just a Few Pretty Words
Posted on July 29, 2014 Comments (0)
An aim for the organization is extremely helpful when it allows everyone in the organization to be guided by the same vision. But nearly all the time, in my experience, the aim is printed in the annual report and posted on the web site an used in some speeches but has nothing to do with how the organization operates.
When the vision is merely a pretty collection of words that doesn’t drive decisions and behavior it is pointless. When it does drive behavior it is powerful. Sadly that is rarely the case.
As is so often the case, Russell Ackoff, has provided a good quote on the idea: If we are going to talk about values, we got to talk about what the values are in action, not in proclamation.
Marketers understand the value of creating a vision in customers minds about your organization. They often do this quite well. Sadly organizations often are not managed with that vision in mind. If you believe the vision of your marketing then make sure your organization has embraced those principles.
Related: The Customer is the Purpose of Our Work (beautiful quote on the wall, not what I experience as the customer though – We are ladies and gentlemen serving ladies and gentlemen – Hallmark Building Supplies – Purpose Drives Decisions (see 3rd video excerpt)
Children are Amazingly Creative At Solving Problems
Posted on July 8, 2014 Comments (2)
This story at NPR reminded my of Russell Ackoff talking about the creativity kids show in solving problems* – and how school often stifles that creativity.
This is flexible, fluid thinking — children exploring an unlikely hypothesis. Exploratory learning comes naturally to young children, says Gopnik. Adults, on the other hand, jump on the first, most obvious solution and doggedly stick to it, even if it’s not working. That’s inflexible, narrow thinking. “We think the moral of the study is that maybe children are better at solving problems when the solution is an unexpected one,” says Gopnik.
And that flexibility may disappear earlier than we think. Gopnik’s lab has also compared toddlers and kindergartners in doing these tests of abstract thinking, and found that the diaper set are actually better at focusing on the relationship between the objects, rather than on the things.
To those, like me, that use Deming’s ideas to help understand and improve management it is apparent these findings relate directly to two areas of Deming’s management system: psychology and theory of knowledge (how we know what we know).
Understanding how our psychology limits are effectiveness can be used to counter those tendencies.
And as Daniel Boorstin said:
“The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.”
Understanding the limits of our knowledge and our tendency to become rigid in our thinking can help us avoid blinding ourselves to options. Our brains overrule options without us consciously even knowing that is happening; it takes effort to overcome this tendency.
The Benefits of Blogging
Posted on July 3, 2014 Comments (0)
A couple of my quotes from the article:
One of the benefits I didn’t appreciate before I started was how blogging helps build your knowledge and understanding—in the same way teaching helps you learn the topic you are discussing in a deeper way.
I find myself more thoughtful and engaged with ideas because I think about how I can build on those ideas in a blog post. When I start writing, I sometimes realize I don’t actually understand the idea or topic as well as it seemed I did. So I must think about it more to be able to understand it well enough to write about it.
See the whole article to see the rest of my responses and thoughts from Mark Graban, Jennifer Stepniowski, Jimena Calfa and Daniel Zrymiak. The article is available for free, though you do have to register to view that article (registering will also let you view the other articles ASQ has made available to non-members).
Gerald Suarez on Creating the Future
Posted on June 25, 2014 Comments (3)
Without the proper foundation for planning for the future (contemplation and desire),
In talking to a senior executive at a Fortune 500 company about a promotion to VP that the executive doesn’t want to take because of all that accepting the VP position would require.
Gerald: But if you say yes it will ruin your life, which is worse?
I see similar situations and most of the time people “chose” career without much thought. They don’t think they have options. I am traveling around China now after presenting a seminar for The W. Edwards Deming Institute in Hong Kong.
I decided I didn’t want to spend my life working “9 to 5.” There are tradeoffs. It sure is nice having a nice paycheck every 2 weeks without much risk. But control of my life mattered more. My choice is more extreme than most. But I believe people need to consciously question what they want out of life and make those choices by considering their options. Too many people don’t take the time to realize they have many more choices than they ever consider.
Gerald quotes a very apt Turkish proverb
This is often hard, and gets harder the longer we are on the wrong road. Sunk costs often pull us in the direction of continuing on the path we invested so much in. It makes all the sense to turn back if it is the wrong path, but our psychology often makes it hard to act in that way.
Gerald’s book, Leader of One: Shaping Your Future through Imagination and Design, was just released.
Related: Transformation and Redesign at the White House Communications Agency (WHCA) Better Thinking About Leadership – Think Long Term, Act Daily – Build an Environment Where Intrinsic Motivation Flourishes – Dr. Russell Ackoff Webcast on Systems Thinking
Root Cause, Interactions, Robustness and Design of Experiments
Posted on June 18, 2014 Comments (1)
Eric Budd asked on The W. Edwards Deming Institute group on LinkedIn
If observed performance/behavior in a system is a result of the interactions between components–and variation exists in those components–the best root cause explanation we might hope for is a description of the interactions and variation at a moment in time. How can we make such an explanation useful?
A single root cause is rare. Normally you can look at the question a bit differently see the scope a bit differently and get a different “root cause.” In my opinion “root cause” is more a decision about what is an effective way to improve the system right now rather than finding a scientifically valid “root cause.”
Sometimes it might be obvious combination which is an issue so must be prevented. In such a case I don’t think interaction root cause is hard – just list out the conditions and then design something to prevent that in the future.
Often I think you may find that the results are not very robust and this time we caught the failure because of u = 11, x = 3, y = 4 and z =1. But those knowledge working on the process can tell the results are not reliable unless x = 5 or 6. And if z is under 3 things are likely to go wrong. and if u is above 8 and x is below 5 and y is below 5 things are in trouble…
To me this often amounts to designing systems to be robust and able to perform with the variation that is likely to happen. And for those areas where the system can’t be made robust for some variation then designing things so that variation doesn’t happen to the system (mistake proofing processes, for example).
In order to deal with interaction, learn about interaction and optimize results possible due to interactions I believe the best method is to use design of experiments (DoE) – factorial experiments.
George Box Webcast on Statistical Design in Quality Improvement
Posted on June 11, 2014 Comments (0)
George Box lecture on Statistical Design in Quality Improvement at the Second International Tampere Conference in Statistics, University of Tampere, Finland (1987).
Early on he shows a graph showing the problems with American cars steady over a 10 years period. Then he overlays the results for Japanese cars which show a steady and significant decline of the same period.
Those who didn’t get to see presentations before power point also get a chance to see old school, hand drawn, overhead slides.
He discusses how to improve the pace of improvement. To start with informative events (events we can learn from) have to be brought to the attention of informed observers. Otherwise only when those events happen to catch the attention of the right observer will we capture knowledge we can use to improve. This results in slow improvement.
A control chart is an example of highlighting that something worth studying happened. The chart will indicate when to pay attention. And we can then improve the pace of improvement.
Next we want to encourage directed experimentation. We intentionally induce informative events and pay close attention while doing so in order to learn.
Every process generates information that can be used to improve it.
He emphasis the point that this isn’t about only manufacturing but it true of any process (drafting, invoicing, computer service, checking into a hospital, booking an airline ticket etc.).
He then discussed an example from a class my father taught and where the students all when to a TV plant outside Chicago to visit. The plant had been run by Motorola. It was sold to a Japanese company that found there was a 146% defect rate (which meant most TVs were taken off the line to be fixed at least once and many twice) – this is just the defect rate before then even get off the line. After 5 years the same plant, with the same American workers but a Japanese management system had reduced the defect rate to 2%. Everyone, including managers, were from the USA they were just using quality improvement methods. We may forget now, but one of the many objections managers gave for why quality improvement wouldn’t work in their company was due to their bad workers (it might work in Japan but not here).
He references how Deming’s 14 points will get management to allow quality improvement to be done by the workforce. Because without management support quality improvement processes can’t be used.
With experimentation we are looking to find clues for what to experiment with next. Experimentation is an iterative process. This is very much the mindset of fast iteration and minimal viable product (say minimal viable experimentation as voiced in 1987).
There is great value in creating iterative processes with fast feedback to those attempting to design and improve. Box and Deming (with rapid turns of the PDSA cycle) and others promoted this 20, 30 and 40 years ago and now we get the same ideas tweaked for startups. The lean startup stuff is as closely related to Box’s ideas of experimentation as an iterative process as it is to anything else.
He also provided a bit of history that I was not aware of saying the first application of orthogonal arrays (fractional factorial designs) in industry was by Tippett in 1933. And he then mentioned work by Finney in 1945, Plackett and Burman in 1946 and Rao in 1947.
The Education System
Posted on June 8, 2014 Comments (1)
The current topic for ASQ Influential Voices to address is the importance of the education system and the impact on the capability of employees.
The education system is important and not very good in my opinion. As a kid I found it boring and constraining and a system designed more to extinguish my quest for knowledge than increase my desire to learn. As a kid I was told by adults that adults knew better and I shouldn’t complain.
I was told “don’t you realize you are in one of the best school systems in the USA?” With a bit of data I was convinced that seemed likely. To me this seemed like an even more ominous sign. If the best was this bad what was everything else like?
The argument that made the most sense to me (for why I should be happy with, or at least accept, the lousy system I was stuck in) was that as a kid I probably just didn’t understand why this environment that seemed to bore not just me, but most all the kids around me and this system that crushed our desire to learn must somehow be working otherwise the adults would certainly fix it.
As an adult what I find is my thoughts as a kid were essentially completely correct (except that last one that adults wouldn’t stick with some pitiful system without good reason) and plenty of education experts had been saying the same things. Adults seem perfectly fine not adopting proven better education practices just as they are fine not adopting proven better management practices.
When Dr. Deming was asked what to do instead of performance appraisal, when he railed against performance appraisal, he said do “whatever Peter Scholtes says.” To the question of what we should we do about the education system I say do whatever David Langford and Alife Kohn say.
I know more about the specifics of what educational systems following David Langford’s idea are like, and all I can say is they are wonderful. If I had kids I would definitely consider moving somewhere that had such a system (like Leander, Texas where they have been moving down that path for 20 years). They focus on helping student learn in a way that is so much more sensible than the one I had to sit through and most everyone reading this had to sit through.
The percentage of students that graduate with a desire to keep learning from an educational system like Leander is much greater than the traditional path. My high school had more National merit scholars than any public high school in the USA the year I graduated (some prep schools beat us, but only a few – partially because we were so large and they are often small). We had many students that were smart, dedicated and capable of succeeding at prestigious universities. Of course with tons of University of Wisconsin faculty as parents this is not a very surprising result.
Practicing Mistake-Promoting Instead of Mistake-Proofing at Apple
Posted on June 5, 2014 Comments (4)
Mistake proofing is a wonderful management concept. Design systems not just to be effective when everything goes right but designing them so mistakes are prevented.
I have had several bad customer experiences in the short time I have had my iPad mini. One of the most pitiful is caused by mistake-promoting process design. As the name implies that isn’t a good idea. Mistake-proofing processes is a good practice to strive for; processes that create extra opportunities for failure impacting customers negatively are a bad idea.
My experience below is but one mistake-promoting practice that has caught me in its grips in the short time I have owned my iPad mini. I want to view books on the mini but can’t find any book reader. So I decide, fine I’ll just install the Kindle reader app.
I go to do so (run into additional issues but get through them) and then Apple decides for this free app, on an iPad I just bought with my credit card a week ago, to block me from getting what I need and force me to revalidate my credit card. This is lame enough, but I am used to companies not caring about the customer experience, so fine, what hoops does Apple want to force me through?
But guess what, the unnecessary steps Apple decided to force me through are broken so I can’t just waste my time to make them happy. No. They have created a failure point where they never should have forced the customer in the first place.
So they not only didn’t mistake-proof the process they mistake-promoted the process by creating a unnecessary step that created an error that could have been avoided if they cared about mistake proofing. But instead they use a mistake-promoting process. As a consumer it is annoying enough to cope with the failures companies force me through due to bad management systems that don’t mistake proof processes.
Companies creating extra opportunities to foist mistakes onto customers is really something we shouldn’t have to put up with. And when they then provide lousy and then even incomprehensible “support” such the “change your name” vision Apple decided to provide me now it is time to move on.
After 5 years of buying every computing device from Apple, they have lost my entire good will in one week of mess ups one after the other. I knew the reason I moved to Apple, the exceptional Macbook Air, was no longer the unmatched hardware it once was; but I was satisfied and was willing to pay a huge iPad premium to avoid the typical junk most companies foist on you. But with Apple choosing to make the process as bad as everyone else there isn’t a decent reason to pay them a huge premium.
Toyota Post Record Profit: Splits $15 million in Pay and Bonus for top 21 Executives
Posted on June 2, 2014 Comments (1)
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 great aided results.
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 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.
Building a Great Software Development Team
Posted on May 29, 2014 Comments (1)
Adam Solove: Why do you think that happened? They hired for passion, rather than experience?
If I had to pick one thing, passion would likely be it but really it is a complex assortment of things. Passion for the right things, based on what we aimed to be, mattered a great deal. That took the form of being passionate about the user experience, being passionate about good software development practices, being passionate about good software itself, being passionate about treating each other with respect, being passionate about learning and improving.
I think there were several other important factors, such as: the skill to turn a passion for good software into actual good software. This required intelligence, interest and knowledge about software development but didn’t require specific experience (computer science degree, 2 years of Ruby on Rails development, certification or any such thing). Hiring based on experience is a big mistake. In my opinion hiring based on capability and potential (which is based partially on experience) is wise.
Another factor is that we had people (those first few hires were critical) that were really knowledgable about programing good software and that became a self reinforcing process. The gaps one person’s ability and knowledge could be filled by someone else helping them understand and get better.
The expectation was that we found great solutions. If we didn’t we kept looking and asked each other for help (another factor in creating a great team). We didn’t just accept that we were confident the solution wasn’t very good but couldn’t find any better options so I guess this is the best we can do.
We were interested enough in good results that we would push for better options instead of just accepting something that was kind of ok. This shouldn’t be such a big deal; but in practice it is huge. So many places just end up avoiding conflict to the extent that it is a huge detriment to results.
Without confidence, honest debate about ideas is suppressed as people are constantly taking things personally instead of trying to find the best ideas (and if doing so means my idea is criticized that is ok). Our group was great at this. It is something I find it a bit silly to say a workplace was “great” at but in most places I find the fear of someone being concerned stifles discussion to an unbelievable extent.
This is also one of many areas where the culture within the team was self reinforcing. As new people came on they understood this practice. They saw it in practice. They could see it was about finding good ideas and if their idea was attacked they didn’t take it nearly as personally as most people do in most places. I sought to understand if people we looked at hiring would be comfortable in such an environment.
Cognition: How Your Mind Can Amaze and Betray You
Posted on May 27, 2014 Comments (0)
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).
A Good Management System is Robust and Continually Improving
Posted on May 22, 2014 Comments (5)
This is a fairly good quote on a good management system. Some people might not like the mechanistic model – comparing an organization to a clock, and I agree that isn’t the right model, but even so it is a good quote.
The quote, from a story about the San Antonio Spurs captures what should happen with a good management system. Things just keep running well as inevitable changes take place (and keep getting better in the case of a management system).
A good management system doesn’t rely on heroic efforts to save the day. The organization is designed to success. It is robust. It will succeed with all the variation thrown at it by the outside world. A good management system takes advantage of the contributions people offer, but it is not perform poorly when others are relied on.
A well run organization has graceful degradation (when one component fails or one person is missing the performance doesn’t suffer, bad results are avoided).
An organization succeeds because of the efforts of many great people. But the management system has to be created for an organization to prosper as what we all know will happen, happens: people will leave and need to be replaced. And the people that stay will need to adjust to new conditions inside the organization and in response to external forces. A good management system is constantly improving performance, innovating, increasing the robustness of systems and increasing the capability of people.
Related: Bad Weather is Part of the Transportation System – How to Sustain Long Term Enterprise Excellence – Performance dependent on specific individuals is not robust and not capable of continuous high quality performance – European Blackout: Human Error-Not