Kleptocrat CEOs and Their Apologists

Posted on March 10, 2014  Comments (2)

I am disgusted by the lack of ethical and moral fiber of CEO’s (along with their cronies and apologists) in the USA. This lack comes out in many ways (see all the scandals at the too-big-to-fail banks etc.) but the problem I am upset about now is the increasingly commonplace kleptocrat behavior.

CEOs, and their cronies, were well paid decades ago. As their greed about their pay got to be unethical Peter Drucker started to speak out against their ethical failures. As those abuses became more extreme he increased his objections.

What Peter Drucker railed against was minor compared to the ethical meltdowns we allow in those serving in executive positions today.

Bloomberg study on What CEOs are Taking From Corporate Treasuries

Across the Standard & Poor’s 500 Index of companies, the average multiple of CEO compensation to that of rank-and-file workers is 204, up 20 percent since 2009

The average ratio for the S&P 500 companies is up from 170 in 2009, when the financial crisis reduced many compensation packages. Estimates by academics and trade-union groups put the number at 20-to-1 in the 1950s, rising to 42-to-1 in 1980 and 120-to-1 by 2000.

These CEOs act like kleptocrat dictators, taking what they can and challenging anyone to do anything about it. As with the kleptocrats they surround themselves with apologists and spread around the looting (from corporate treasuries for the CEO and the countries for the dictators) to those that support their kleptocrat ways.

Extremely Excessive Executive pay is so critical I classify it as a New Deadly Disease. I have discussed the problems created by allowing such morally and ethically bankrupt people in leadership positions: CEO’s Taking What They Don’t Deserve (2011)CEOs Plundering Corporate Coffers (2008)Tilting at Ludicrous CEO Pay (2007). In 2005 I spelled out some of the problems we face when we have kleptocrats running our companies:

The excesses are so great now they will either force companies to:

  1. take huge risks to justify such pay and then go bankrupt when such risks fail (and some will succeed making it appear, to some, that the pay was deserved rather than just the random chance of taking a large risk and getting lucky)
  2. make it impossible to compete with companies that don’t allow such excesses and slowly go out of business to those companies that don’t act so irresponsibly
  3. hope that competitors adopt your bad practice of excessive pay (this does have potential as most people are corrupted by power, even across cultural boundaries). However, my expectation is the competitive forces of capitalism going forward are going to make such a hope unrealistic. People will see the opportunity provided by such poor management and compete with them.

As long as the pay packages were merely large, and didn’t effect the ability of a company to prosper that could continue (slicing up the benefits between the stakeholders is not an exact science). The excesses recently have become so obscene as to become unsustainable.

Read more

Manufacturing Outlook and History In the USA and Globally

Posted on February 27, 2014  Comments (1)

I write primarily about management improvement on this blog – which makes sense given the title. In the very early days I had more on investing, economic data, science, engineering and travel. Then I created three new blogs (Curious Cat Investment and Economics Blog, Curious Cat Science and Engineering Blog, Curious Cat Travel Photos blog) and that made this blog more focused.

Even so the lines of what fits where can be a bit fuzzy and I continue to write about manufacturing, and health care, with a focus on economic data, occasionally. And that is what I am doing today while touching on management related to manufacturing a bit.

As I have written before the story of manufacturing in the USA, and globally, is greatly increased quality of processes and output as well as greatly improved productivity over the last few decades. Manufacturing output also increased, including in the USA, as I have written consistently for a decade now. For example: (Top 10 Countries for Manufacturing Production from 1980 to 2010.

Still many people have the notion that USA manufacturing has been declining, which hasn’t been true, and certainly isn’t true now (the last couple of years have been especially strong and even the general public seems to realize the idea of the USA losing manufacturing is a myth).

Chart of Manufacturing Output fro 1992 to 2012 - USA, China, Japan and Germany

Based on data from the UN. See my blog post on my economics for more details on the data (to be posted next week).

The chart is impressive and illustrates the point I have been hammering home for years. The USA manufacturing base is growing and far from crumbling (job losses are deceiving as they are global and not an indication of a USA manufacturing decline). China’s manufacturing growth is incredible. China and the USA are far away the top 2 manufacturing countries. Japan and Germany make out the top 4 before a large gap which then is followed by a group of countries that are very close (Korea is 5th with less than half the production of Germany).

Read more

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

Posted on February 6, 2014  Comments (2)

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

6th Annual Curious Cat Management Blog Review

Posted on January 30, 2014  Comments (1)

Each of the participants post reviews of several blogs on their blog. Links to all the 2013 Management Blog Review posts are listed below, ordered by the number of years each author has participated in the annual review.

2013 Hosts Years
Blog reviews

Evolving Excellence 6 Timeback, Matthew May, HBR: Brad Power
Lean Reflections 5 Deming Institute blog, MIX
TimeBack Management 5 Michel Baudin, Manufacturing Leadership Center, The Lean Thinker
QAspire 4 Squawk Point, Jesse Lyn Stoner, Jamie Flinchbaugh
A Lean Journey 3 Beyond Lean, Lean Pathways, Old Lean Dude
Beyond Lean 3 Lean Blitz, Personal Kanban
Lessons in Lean 2 Gemba Panta Rei, The Drucker Exchange
encob blog 2 Lean Post, Gemba Coach
Michel Baudin 2 The Lean Edge
Lean Blitz 1 Lean Blog, Karen Martin, Quality and Innovation, Let’s Talk About Quality



Only 3 blogs have been reviewed in all 6 years: Evolving Excellence, Gemba Panta Rei and Timeback Management.

Related: 2012 Management Blog Review2011 Management Blog Review2008 Management Blog Review

Bad Weather is Part of the Transportation System

Posted on January 6, 2014  Comments (4)

The job of managers is to create a robust system that delivers value to customers. A system that fails constantly (fails during the continual variation the system faces) is a failed system. Bad weather is part of the variation airlines face. Any management system has to cope with the variation that it faces. The management system must be designed and managed so that the organization successfully delivers value to customers under the conditions the organization will face.

The air travel system in the USA is a disgrace for so many reasons it is hard to catalogue them all. One, of many, is how fragile the system is; causing massive (nation-wide) customer harm multiple times a year due to weather. Weather is sometimes bad. If your organization fails when there is bad weather, fix that problem (make your system robust in the face of bad weather), because you are not going to be able to fix the weather to let your un-robust system be effective as it is.

Instead airlines only response seems to be to get their friends in government to approve anti-competitive mergers to eliminate competition and allow failed organizations to become even larger and harm even more people. Airlines should design robust systems that work in the environment they will face (which they don’t do now).

Their planes don’t fall out the sky when they face bad weather. The engineers behind designing planes have made them very robust. Pilots have been trained to handle variation they will face. And yes, the system has been designed with adjustments to avoid flying into conditions that are risky.

The safety of the air transportation system is very good. The management of airlines in most every other aspect is pitiful, and has been for decades.

The managers running the airlines have done amazingly bad job of creating robust organizations capable of delivering given the variation they know they will face (weather, mechanical problems, IT problems, etc.) for decades. Poor management is the cause of these failures that result in harm to customers. Weather is not the cause. Poor management, over decades, resulting in incredible fragile systems that constantly punish customers is the responsibility of the airlines. And they have done an incredibly bad job at creating a robust system to deliver value to customers.

Read more

Curious Cat Management Improvement Carnival #202

Posted on December 1, 2013  Comments (1)

The Curious Cat management blog carnival has been published since 2006. New posts are published once or twice a month. I also publish a collection management improvement articles on the Curious Cat management improvement articles site.

Taking Risks Based on Evidence

Posted on November 14, 2013  Comments (1)

My opinion has long been that football teams are too scared to take an action that is smart but opens the coach to criticism. So instead of attempting to make it on 4th down (if you don’t understand American football, just skip this post) they punt because that is the decision that is accepted as reasonable.

So instead of doing what is wise they do what avoids criticism. Fear drives them to take the less advantageous action. Now I have never looked hard at the numbers, but my impression is that it is well worth the risk to go for it on 4th down often. In a quick search I don’t see a paper by a Harvard professor (this article refers to it also – Fourth down: To punt or to go?) on going for it on 4th down but I found on by a University of California, Berkeley economist (David Romer wrote called “Do Firms Maximize? Evidence from Professional Football.”).

On the 1,604 fourth downs in the sample for which the analysis implies that teams are on average better off kicking, they went for it only nine times. But on the 1,068 fourth downs for which the analysis implies that teams are on average better off going for it, they kicked 959 times.

My guess is that the advantages to going for it on 4th down are greater for high school than college which is greater than the advantage for the pros (but I may be wrong). My guess is this difference is greater the more yardage is needed. Basically my feeling is the variation in high school is very high in high school and decreases with greater skill, experience and preparation. Also the kicking ability (punting and field goals) impacts the choices of going for it on 4th down and that dramatically increases in college. So if I am correct, I think pro coaches should be more aggressive on 4th down, but likely less aggressive than high school coaches should be.

But in any event the data should be explored and strategies should be tested.

Read more

Jiro Dreams of Sushi

Posted on November 5, 2013  Comments (3)

Jiro Dreams of Sushi is a documentary on a Japanese sushi restaurant, Sukiyabashi Jiro, that is full of great quotes for those interested in continual improvement. Throughout the film people discuss a never ending focus on doing better and better – never becoming complacent.

Quotes from Jiro Dreams of Sushi:

Jiro: “Once you decide on your occupation you must immerse yourself in your work. You have to fall in love with what you do… You must dedicate your life to mastering your skill. That is the secret of success and the key to being regarded honorably.”

Jiro: “There is always room for improvement.”

Jiro: “I do the same thing over and over, improving bit by bit.”

Jiro: “I feel ecstasy every day. I love making sushi.”

Fish seller: “When you think you know it all, you then realize you are just fooling yourself.”

Food critic ~ “when you work for Jiro he teaches you for free. But you have to endure years of training.

​Apprentice: “But there is only so much you can learn from words. I have to keep practicing.”​

Jiro: ~ (paraphrased and changed a bit) “When the fish gets to me the sushi is 95% complete. I prepare it in front of the customer so get the credit but the truth is the person doing the least work gets most of the credit”

Jiro’s eldest son, Yoshikazu: “Always strive to elevate your craft.”

The focus is on the dining experience in total. The meal is composed of elements that are designed to work together with the focus on quality of the individual dishes but also on the interaction between the individual items and the complete experience.

The respect for suppliers is also seen in the film. Jiro’s eldest son says (approximately) “we are experts at sushi and we know a great deal but the tuna vendor we use knows more about tuna, the shrimp vendor knows more about shrimp… we trust them.” Later Jiro says (again from my memory), “we buy our rice from our vendor because Mr. ___ (I can’t remember the name) knows more about rice than anyone else, I trust him to provide what is best for us.”

They even touch on the bigger picture. Jiro’s son: “overfishing is the problem. Finding good fish is getting harder and harder… There should be regulations enforced on only catching bigger fish. Business should balance profit with preserving natural resources.”

As with any example there are particulars that you can learn from and specifics that don’t apply well to your situation. I know next to nothing about kitchens of world class restaurants but what I do know is they seem extremely dedicated to their work (much more so than many other organizations are interested in striving for). They also seem to be more autocratic than most other modern organizations. They also seem much more focused on perfecting the process to achieve the best result even if that requires a great deal more work than some alternative that produces very good results.

Related: You’ve Got to Find What You Love (Steve Jobs Stanford address)Respect People by Creating a Climate for Joy in WorkPositivity and Joy in WorkThe Customer is the Purpose of Our Work

Management Improvement Carnival #201

Posted on November 1, 2013  Comments (1)

The Curious Cat Management Improvement Carnival has been published since 2006. The carnival, has been published twice a month – but will now be published once or twice a month depending on how things work out. I hope you find the post included in this edition interesting and find some new blogs to add to your blog/RSS reader. Follow John Hunter online: Twitter and elsewhere.

  • Where do “Value Stream Maps” come from? by Michel Baudin – “Toyota alumni confirmed that you rarely see a Materials and Information Flow diagram (VSM) within Toyota, and explained that the tool was developed at Toyota’s Operations Management Consulting Division, for selective use with suppliers”
  • Management is a role. Leadership is an act. by Jamie Flinchbaugh – “The point is, stop worrying about whether you’re a ‘leader’ or a ‘manager’ and just focus on doing whatever you do better.”
  • photo of a floating football pitch

    Football (soccer) pitch at floating village in Thailand, by John Hunter.

  • How You Measure = How You Manage by Christian Buckley – “Each method of calculation has implications and limits, as does the source of the data. To be relevant, the measures have to be understood by those using them.”
  • Improvement is a Learning Process by John Hunter – Dr. Deming: “Improvement of Quality and Productivity, to be successful in any company, must be a learning process, year by year, top management leading the whole company.”
  • Read more

Resources for Using the PDSA Cycle to Improve Results

Posted on October 28, 2013  Comments (2)

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)

Managers Are Not Non-Leaders: Managers Need to Practice Things We Classify as Leadership Traits

Posted on October 14, 2013  Comments (3)

Saying “Managers care about efficiency and leaders care about effectiveness” is like saying “Doctors care about theory and nurses care about patients.”

Managers that don’t care about effectiveness are lousy managers.
Leaders that don’t care about the gemba are lousy leaders.
Doctors that don’t care about patients are lousy doctors.
Nurses that don’t care about theory are lousy nurses.

Your role in the organization (and for the particular situation in question) and training and the situation will impact how you contribute. But the attitude that leaders are visionaries that think big thoughts, make decisions then tell everyone what to do (act as the brain for the organization) is outdated. Every list of what traits are for leaders that then contrasts them with managers that I have seen shows leadership traits managers need.

Seeking to separate leadership and management is a bad idea. If you want to have a few leadership traits that you want to focus on at various points (creating engagement, communicating a vision, building consensus, setting organizational direction) that is fine. But those things are traits managers need; they are not traits reserved for some separate leadership cadre.

And disconnected leaders that don’t understand the organization, the organizations customers etc. are not going to lead well (normally the contrast lists have the managers doing all the hands on stuff, at the gemba, with customers etc.). Nurses may not have as complete an understanding of the theories behind medical treatment decisions but they need to know a great deal of theory to do their jobs well. Everyone contributes and has different roles to play but I don’t see value in the contrast of leaders and managers mentality.

From what I have seen mainly the manager v. leader comparisons seem to be about belittling managers and elevating leaders; but leaders are this vague concept that isn’t well defined. Who are these leaders? Are they only senior executives? They can’t be managers because you are contrasting them with managers – by the contrasting model used they can’t be leaders and managers.

Read more

How to Sustain Long Term Enterprise Excellence

Posted on October 3, 2013  Comments (1)

This month Paul Borawski asked ASQ’s Influential Voices to explore sustaining excellence for the long term.

There are several keys to pulling sustained long term excellence. Unfortunately, experience shows that it is much easier to explain what is needed than to build a management system that delivers these practices over the long term. The forces pulling an organization off target often lead organization astray.

Each of these concepts have great deal more behind them than one post can explain. I provide some direct links below, and from those there are many more links to more valuable information on the topics. I also believe my book provides valuable additional material on the subject – Management Matters: Building Enterprise Capability. Sustained long term excellence is the focus of the book. A system that consistently provides excellent performance is a result of building enterprise capability over the long term.

Related: Distorting the System, Distorting the Data or Improving the SystemSustaining and Growing the Adoption of Enterprise Excellence Ideas in Your OrganizationManaging to Test Result Instead of Customer ValueGood Process Improvement PracticesChange is not ImprovementManaging Our Way to Economic Success Two Untapped Resources by William G. HunterSoftware Process and Measurement Podcast With John HunterCustomer Focus by Everyone

Management Improvement Carnival #200

Posted on October 1, 2013  Comments (2)

The Curious Cat Management Improvement Carnival has been published since 2006 and this is the 200th edition. The posts selected for the carnival focus on the areas of management improvement I have focused on in the Curious Cat Management Improvement Guide since 1996 (17 years now, which I find pretty amazing): Deming, lean thinking, leadership, innovation, respect for people, customer focus, etc..

  • Eiji Toyoda – the Master Innovator by Bill Waddell – “He was a master innovator in the days when innovation wasn’t cool, and his focus was not so much on the product as it was on the processes – on management.”
  • The Man Who Saved Kaizen by Jon Miller – “Eiji Toyoda led from the front. His message to leaders within Toyota: ‘I want you to use your own heads. And I want you actively to train your people on how to think for themselves.’”
  • photo of Bill and John Hunter balancing on a log on a beach in Malaysia

    Dad, Bill Hunter and me in Malaysia.

  • The consumer is the most important point on the production-line by John Hunter – “The continued view of the organization as a hierarchical pyramid of authority and responsibility hides the connection of the customer/user to the processes in our organizations.”
  • Lean IT at Toyota by Pierre Masai – “educate yourself on the subject, since so many stories of dramatic or step-by-step improvements do exist out there. Then, soon after, experiment yourself. This is the basis of TPS. Make sure you also get enthusiastic people on board, and take the support of experienced external coaches if you need this to get started. Create a culture within your company where the principles of lean become embedded in everything you do.”
  • Read more

Jeff Bezos: Innovation, Experiments and Long Term Thinking

Posted on September 4, 2013  Comments (2)

Jeff Bezos, bought the Washington Post. He has long showed a willingness to take a long term view at Amazon. He is taking that same thinking to the Washington Post:

In my experience, the way invention, innovation and change happen is [through] team effort. There’s no lone genius who figures it all out and sends down the magic formula. You study, you debate, you brainstorm and the answers start to emerge. It takes time. Nothing happens quickly in this mode. You develop theories and hypotheses, but you don’t know if readers will respond. You do as many experiments as rapidly as possible. ‘Quickly’ in my mind would be years.”

The newspaper business is certainly a tough one today – one that doesn’t seem to have a business model that is working well (for large, national papers). I figured the answer might be that a few (of the caliber of Washington Post, New York Times…) would be owed by foundations and supported largely by a few wealthy people that believed in the value of a strong free press and journalism. Maybe Bezos will find a business model that works. Or maybe he will just run it essentially as a foundation without needing a market return on his investment.

The Guardian (where the article with the quote was published) is an example of good journalism by a foundation. ProPublica is another (though I guess it is really a non-profit but most of the funding seems to be via foundations).

Related: Jeff Bezos and Root Cause Analysis (2009)Amazon Innovation (2006)Jeff Bezos on Lean Thinking (2005)Jeff Bezos Spends a Week Working in Amazon’s Kentucky Distribution Center (2009)

Management Improvement Carnival #199

Posted on September 1, 2013  Comments (1)

The Curious Cat management blog carnival has been published since 2006. New posts are published once or twice a month. I also publish a collection management improvement articles on the Curious Cat management improvement articles site.

photo of rice field with palm trees in the background, Ubud, Bali, Indonesia

Rice field outside Ubud, Bali, Indonesia by John Hunter. See more of my photos from Indonesia.

  • Engagement Leads to Results by Bill Waddell – “companies with high levels of worker engagement get better results – profitability, defect rates, growth, productivity…”
  • Flying Delta; Lessons in Unreliability by Sodzi-Tettey, Sodzi – “It also means designing procedures and building capabilities for fixing failures when they are identified or stopping the harm caused by failures when they are not detected and intercepted. In the experience of clients, the two organizations displayed very little of these; not predictive, not proactive and hardly anticipatory of client needs, but rather touting 50 dollar vouchers as if they would make all the difference!”
  • Read more

Stu Hunter Discussing Bill Hunter, Statistics for Experimenters and EVOP

Posted on August 27, 2013  Comments (1)

In this clip, Stu Hunter talks about Bill Hunter (my father, and no relation to Stu Hunter), Statistics for Experimenters and EVolutionary OPerations (EVOP).

Stu mentions Bill Hunter’s work with the City of Madison, which started with the First Street Garage (Out of the Crisis included a short write up on this effort by Dad, which, I believe, was the first application of Deming’s ideas in the public sector).

There was also a great deal of work done with the Police department, as the police chief, David Couper, saw great value in Deming’s ideas. The Police department did some great work and David’s blog shares wonderful ideas on improving policing. I don’t think Dad was that directly involved in what happened there, but it is one of the nice benefits of seeding new ideas: as they take root and grow wonderful things happen without any effort on your part.

As to why Dad got involved with the city, he returned from a summer teaching design of experiments and quality improvement methods in China (this is just before China was really open, a few outsiders were let in to teach). We had also lived overseas several other times, always returning to Madison. He decided he wanted to contribute to the city he loved, Madison, and so he talked to the Mayor about helping improve performance of the city.

The mayor listened and they started with a pilot project which Dad work on with Peter Scholtes. Dad talked to Peter, who he had know for years, and who worked for the city, before talking to the mayor. Read more about the efforts in Madison via the links at the end of this post.

Read more

You are a Fool if You Do What I Say

Posted on August 21, 2013  Comments (3)

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

Management Improvement Carnival #198

Posted on August 2, 2013  Comments (1)

The Curious Cat Management Improvement Carnival has been published since 2006. The carnival, has been published twice a month – but will now be published once or twice a month depending on how things work out. I hope you find the post included in this edition interesting and find some new blogs to add to your blog/RSS reader. Follow John Hunter online: Google+, Twitter and elsewhere.

  • Observations From A Tipless Restaurant by Jay Porter – “Our ability to make sure team members in all parts of the house were taken care of, and to remove tip-related squabbling from our business, gave us a huge competitive advantage in the marketplace; this in turn allowed us to serve a much higher quality of food and take lower margins on it.”
  • An open letter to Jeff Bezos: A contract worker’s take on Amazon.com by Steve Barker – “As experienced temps left and new ones rolled in, the breakdown began. Temps who had not paid attention in training were now training new temps. Different temps were teaching different techniques and it wasn’t long before the quality of work suffered. As witness to the poor quality, I made a few attempts to express my concerns, but none of my suggestions were implemented. When one of the higher-ups checked our work and realized that mistakes were being overlooked, performance scorecards were implemented.”
  • Change has to Start from the Top – webcast, included here, with David Langford: “You are the top of your system. Change your thinking, change your process – you change your system. As soon as you start to modify your system you are going to have an effect on the larger system: the way you organize, the way you manage what you do everyday, how you process the work that you are doing [will impact the larger system].”
  • No filter: the meanest thing Paul Graham said to a startup – “the vast majority of teams have the opposite problem: people filter their thoughts too much. The psychological and social incentives to do so are quite strong: we don’t want to go against the team, or we’re worried about giving offense, or we don’t want to be ‘the bad guy’… And that has a corrosive effect on culture.” [I agree - "I wish more people objected to bad ideas instead of just letting them go because they were afraid of being seen as negative." - John]
  • Read more

Design of Experiments: The Process of Discovery is Iterative

Posted on July 30, 2013  Comments (2)

This video is another excerpt on the design of experiments videos by George Box, see previous posts: Introduction to Fractional Factorial Designed Experiments and The Art of Discovery. This video looks at learning about experimental design using paper helicopters (the paper linked there may be of interest to you also).

In this example a screening experiment was done first to find those factors that have the largest impact on results. Once the most important factors are determined more care can be put into studying those factors in greater detail.

The video was posted by Wiley (with the permission of George’s family), Wiley is the publisher of George’s recent autobiography, An Accidental Statistician, and many of his other books.

The importance of keeping the scope (in dollars and time) of initial experiments down was emphasized in the video.

George Box: “Always remember the process of discovery is iterative. The results of each stage of investigation generating new questions to answered during the next.”

Soren Bisgaard and Conrad Fung also appear in this except of the video.

The end of the video includes several suggested resources including: Statistics for Experimenters, Out of the Crisis and The Scientific Context of Quality Improvement.

Related: Introductory Videos on Using Design of Experiments to Improve Results (with Stu Hunter)Why Use Designed Factorial Experiments?brainstormingWhat Can You Find Out From 8 and 16 Experimental Runs?

Your Online Presence and Social Networks for Managers

Posted on July 17, 2013  Comments (1)

This month Paul Borawski asked ASQ’s Influential Voices which social networks do quality professionals use?

TL;DR My bottom line suggestion is to first start with blogs (get a feed reader and subscribe, read and comment on blogs). Next join Reddit and subscribe to the sub-reddits you are interested in, and participate. Next start your own blog. Then join Twitter, LinkedIn, Google+. Put your learning first; other measures are largely “fools gold” (such as number of followers).

photo of John Hunter at Zion National Park

John Hunter at Zion National Park, Utah, USA.

Blogs are the best way to use the internet to learn, network, share and grow. That includes reading blogs, commenting on blogs and writing your own blog. Thankfully there are tons of great management improvement blogs (especially on lean thinking) for managers to learn from. There is a great opportunity for six sigma blogs as the field is not crowded with high value blogs on that topic.

Writing your own blog is the very best online way to create a brand for yourself (and to learn and grow). Given the workplace today, and how the future seems likely to unfold, building your own brand is a valuable career tool. Writing your own blog also builds your understanding of the topic. As you put your thoughts into words you have to examine them and often build a more complete understanding yourself before you can write about it.

You also build a network as you read and comment on other’s blogs and as others read and comment on your blog. YouTube can be used in a similar way (though I would use a blog to add text to the webcast and encourage comments on the blog rather than YouTube). Using an RSS blog feed reader is the first social network tool you should use (way before you sign up for Twitter or Facebook or anything). Podcasts can also. I have done a few podcast, most discussing the ideas in my management book. Videos and audio connect more deeply to people so they are wonderful methods to reach people. I should get some webcast up on YouTube; it is one of my plans that I haven’t gotten to you yet.

Read more

  • Recent Trackbacks

  • Comments