Tag Archives: culture

Looking in the Mirror at Customer Focus

Most organizations say they are focused on meeting and exceeding customer needs. But, as a customer, this often isn’t what I experience.

Delighting customers is critical to long term business success. Satisfied customers will remain your customers until they see the opportunity for something that might be better or is cheaper. Delighted customers are loyal and much more likely to remain customers.

Delighting customers is often about paying attention to the small details. Paying close attention to customer’s jobs to be done is a powerful tool. Then apply creative thinking and a knowledge of your industry, technical possibilities and business realities to provide solutions that delight customers.

Mirror in bathroom that is usable after a shower

Photo by a colleague of mine at Hexawise in his Japanese hotel room.

This photo shows a respect for customer’s jobs to be done. In many hotels the mirrors in the bathroom are obstructed after a shower. This mirror has been designed (with a heating element behind the mirror – applying technical engineering and scientific knowledge) to allow customers to be able to use the mirror effectively in the very common use case (after they shower). It is a small detail. It is also the kind of detail that an organization focused on customer delight will get right. Matt shared this photo on Reddit and it received over 80,000 upvotes (there is an appreciation for this improvement).

FYI Hexawise is hiring a senior software testing consultant, in case you want to go see this mirror for yourself and also to work with me and Hexawise to improve customer delight with the software that impacts our lives so much these days.

Solutions must be something that is free (improving processes often reduces costs so it is not always a matter of extra cost) or something customers will pay for (business/market realities). It isn’t useful to create a solution that your customers would like enough to pay 1% extra for if it adds 15% to your costs.

As with so many management improvement strategies how a desire to delight customers is expressed is dependant on many aspects of the existing organization. You can’t wake up on day to the wisdom of delighting customers and announce this new strategy and expect anything to really change. It is dependant on viewing your organization as a system and making the appropriate adjustments to allow the organization to be optimized to delight customers (see creating a customer of customer focus and How To Create a Continual Improvement Culture).

It is critical to design the organization to maximize the potential information generated at the point where customers interact with the organization. That is not a simple thing to do in isolation (based on the current culture of most organizations today). It requires a deep commitment to continual improvement, respect for people and all the rest of the management improvement practices I have been writing about in this blog for over 10 years now.

Related: Aligning Marketing Vision and ManagementDelighting CustomersCustomers, “Internal Customers” and End UsersWhat Job Does Your Product Do? (2007)Stated Versus Revealed PreferenceInnovation Strategy

The Importance of Critical Thinking and Challenging Assumptions

There are many factors that are important to effectively practice the management improvement ideas I have discussed in this blog for over a decade. One of the most important is a culture that encourages critical thinking as well as challenging claims, decisions and assumptions.

I discussed this idea some in: Customers Are Often Irrational. There is a difference between saying people wish to have their desires met and people act in the manner to maximize the benefits they wish to receive.

It is important to study customer’s choice and learn from them. But being deceived by what their choice mean is easier than is usually appreciated. Often the decision made is contrary to the ideal choice based on their beliefs. It is often poor decision making not an indication that really they want a different result than they express (as revealed versus stated preference can show). People that ignore the evidence behind climate change and condemn coastal areas to severe consequences don’t necessarily prefer the consequences that their decision leads to. It may well be that decision to ignore the evidence is not based on a desire to suffer long term consequences in order to get short term benefits. It may well be just an inability to evaluate evidence in an effective way (fear of challenging ourselves to learn about matters we find difficult often provides a strong incentive to avoid doing so).

Knowing the difference between choosing short term benefits over long term consequences and a failure to comprehend the long term consequences is important. Just as in this example, many business decisions have at the root a desire to pretend we can ignore the consequences of our decisions and a desire to accept falsehoods that let us avoid trying to cope with the difficult problems.

photo of me with a blackboard in my father's office

Photo of me and my artwork in my father’s office by Bill Hunter

It is important to clearly articulate the details of the decision making process. We need to note the actual criticism (faulty logic, incorrect beliefs/assumptions…) that results in what some feel is a poor conclusion. But we seem to find shy away from questioning faulty claims (beliefs that are factually incorrect – that vaccines don’t save people from harm, for example) or lack of evidence (no data) or poor reasoning (drawing unsupported conclusions from a well defined set of facts).

Critical thinking is important to applying management improvement methods effectively. It is important to know when decisions are based on evidence and when decisions are not based on evidence. It can be fine to base some decisions on principles that are not subject to rational criticism. But it is important to understand the thought process that is taken to make each decision. If we are not clear on the basis (evidence or opinion regardless of evidence) we cannot be as effective in targeting our efforts to evaluate the results and continually improve the processes in our organizations.

Describing the decision as “irrational” is so imprecise that it isn’t easy to evaluate how much merit the criticism has. If specific facts are called into question or logical fallacies within the decision making process are explained it is much more effective at providing specific items to explore to evaluate whether the criticism has merit.

When specific criticisms are made clear then those supporting such a decision can respond to the specific issues raised. And in cases where the merits of one course of action cannot be agreed to then such critical thought can often be used to create measures to be used to evaluate the effectiveness of the decision based on the results. Far too often the results are not examined to determine if they actually achieved what was intended. And even less often is care taken to examine the unintended consequences of the actions that were taken.

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Improving Management with Tools and Knowledge

Too often today I hear people disparaging management tools/concepts (PDSA cycle, mistake proofing, flowcharts, design of experiments, gemba…). The frequently voiced notion is that tools are being applied and not helping improve management in the organization.

But it seems to me using these tools re-enforce the best practices of management improvement. Yes, ignoring the underlying principles (while applying tools and concepts) drastically limits how successful an organization will be in improving management practices (and limits the results the organization will achieve). But using the tools is not the problem. Using the tools is a necessary but not sufficient part of the process to improve.

What is needed is to use the tools with engaged people that are continually learning and adjusting the management system based on their increase understanding of the organization as a system. Using management tools effectively (if you are unsure of what those tools are, read the posts on this blog discussing many management improvement tools) supports gaining insight into the underlying management improvement principles.

It is important to understand there are fundamental concepts that connect and reinforce each other. And those organizations that are successful are using management tools and continually building their understanding of the underlying principles.

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Podcast: Building Organizational Capability

The Software Process and Measurement Cast 420 features an interview with me, by Thomas Cagley, on Building Organizational Capability (download podcast).

John Hunter in the podcast:

Changing how organizations are managed makes a huge difference in people’s lives, not all the time and I understand most of the time it doesn’t. But when this is done well people can go from dreading going to work to enjoying going to work, not every single day – but most days, and it can change our lives so that most of the time we are doing things that we find valuable and we enjoy instead of just going to work to get a paycheck so we can enjoy the hours that we have away from work.

photo of John Hunter

John Hunter, Zion National Park, Utah, USA

Here are some links where I go into more detail on some of the topics I discuss in the podcast:

Thomas Cagley: If you have the power to change any 2 things that affect decision making what would they be and why?

John Hunter:

First that results are evaluated. Make decisions then evaluate what actually happens based upon what you do. Learn from that, improve how you make future decisions and keep iterating.

That idea of evaluating what actually happens is extremely powerful and will reinforce going in the right direction because if you evaluate most decisions many organizations make nothing got any better. And after doing that many times you can learn this isn’t working, we need to do something better.

And the second would be more prioritization. Make fewer decisions but take more time to make those decisions, implement those decisions, evaluate those decisions, learn from those results and iterate again.

I hope you enjoy the podcast.

Related: Software Process and Measurement Podcast With John Hunter on my book Management MattersDeming and Software Development

Applying Toyota Kata to Agile Retrospectives

HÃ¥kan Forss, King (interactive entertainment games), presentation at the GOTO Copenhagen 2015 conference.

I strongly recommend Mike Rother’s book: Toyota Kata.

Description from Workshop description “The Toyota Kata Experience”

Kata means pattern, routine, habits or way of doing things. Kata is about creating a fast “muscle memory” of how to take action instantaneously in a situation without having to go through a slower logical procedure. A Kata is something that you practice over and over striving for perfection. If the Kata itself is relative static, the content of the Kata, as we execute it is modified based on the situation and context in real-time as it happens. A Kata as different from a routine in that it contains a continuous self-renewal process.

I think the great number of worthwhile conference presentations we can all now get sitting wherever we are provides us a great opportunity (and lets us avoid missing out of good ideas because “How could they know“).

A point made in the presentation that is very simple but still constantly the source of failure is that the current system isn’t supporting improvement. Retrospectives are a good method to help improve but if there is no time to think about the issues raised and come up with experiments to improve and review of whether those experiments worked or not and why failure to improve is the expected result.

Creating a culture where it is expected that any improvement ideas are tested and evaluated is one of the most important changes on the path to a company that will be able to continually improve. If not, what happens is some changes are good, many are not and soon people lose faith that any effort is worth it because they see how poor the results are. By taking care to evaluate what is working and what isn’t we create a process in which we don’t allow ad hoc and unsuccessful changes to demoralize everyone.

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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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The Mission Statement Must Guide Action In Order To Matter

Does Mission Matter? That is the question raised this month by Pat La Londe for the ASQ Influential Voices.

I have discussed a similar topic in a previous post: Vision can be a Powerful Driver but Most Often It is Just a Few Pretty Words. I believe that post captures exactly how I feel about the question “does mission matter?”

It doesn’t matter if it is just words on paper that has no impact on how business is done. And sadly that is more common than having a mission that actually matters because it actually guides how decisions are made and how the business delivers products and services.

A phrase in your mission statement that your company values employees matters only to the extent the company manifests a respect for people. A phrase about the importance of customers matters only to the extent the company delivers customer delight.

From a post I wrote on The W. Edwards Deming Institute blog, Hallmark Building Supplies: Applying Deming as a Business Strategy:

[Hallmark Building Supplies] uses the purpose statement to make decisions on a regular basis. This is one of the keys to a good purpose statement. If the purpose statement doesn’t guide what is happening it is not providing much value.

The video above gives a good illustration about how companies operate when aim/purpose/mission etc. drive business decisions. When this happens mission matters a great deal. It provides focus to everyone as they do their work and prioritize how to continually improve the organization every day. The video also provides an illustration about how leaders behave when they understand the organization as a system.

Related: Aligning Marketing Vision and ManagementAckoff: Corporations Are Led By Those Seeking to Maximize Their Welfare not Shareholder ValueTrust Your Staff to Make Decisions (you can’t do this well unless there is a shared understanding of what the priorities are)

What to Do To Create a Continual Improvement Culture

This month the ASQ Influential Voices discussion explores what to do and avoid in order to create a performance culture? James Lawther shared his ideas on what not to do to get things started.

I have discussed steps to take in order to build a culture of continual improvement in numerous posts over the years (see related links below). What it boils down to is building a system that supports that culture. Your culture is the result not your aim.

David Heinemeier Hansson put it well recently in his essay, CEO’s are the last to know:

But the bottom line is that culture is what culture does. Culture isn’t what you intend it to be. It’s not what you hope or aspire for it to be. It’s what you do.

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.

As I said on Twitter in relation to that article leaders need to understand danger of “losing touch” and take steps to counter that risk. Often the explanation for why something happened (a process producing a failure, a leader not being aware of the real culture…) is an explanation of what the system needs to be designed to address.

wall mosaic with tree, animals and people

Mosaic on an outside wall of a temple at Wat Xieng Thong in Luang Prabang, Laos. By John Hunter.

In many organization CEOs are not aware of what is going on. This is a weakness that must be addressed systemically. Many of the better management methods proposed by W. Edwards Deming address this issue. CEOs are given a false picture when they focus on results instead of the management system. CEOs are given a false picture when they crate a climate of fear. CEOs are given a false picture in organizations focused on achieving bonuses instead of continual improvement.

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Publish Articles Promoting Better Management Using Open Journals

William Woodall shared this wonderful article he wrote with George E. P. Box with me, Innovation, Quality Engineering, and Statistics. My thoughts on being able to read it online:

Thanks Bill, it is a great article. And thanks for having it openly available. I really wish professors would stop allowing their work to be published by those seeking to close access to the ideas we are trying to promote. I realize there are pressures to publish in historically prestigious journals.

For professors that have “made it” you will do a great service to others (and help promote the ideas in your field that you have devoted your life to) by refusing to submit to closed science journals (or closed professional society journals etc.). For those trying to secure full professorships I wish they would too, but I realize the hard choices they face.

The maximum closed-ness we should tolerate, in my opinion, is closed access for 1 year after which it becomes open. Require this in writing in the agreement, don’t just accept that the current practice is to promote the sharing of ideas; if it isn’t in writing some person may have the publisher adopt closed science later and block access to the content you wanted to share.

It is especially distressing, to me, when government dollars fund the time the professor spends and then the end result is closed to the public. Thankfully some universities and some government agencies paying for the writing of these articles are demanding that the articles be published in an open access fashion.

On the other hand if you want to publish on rate and rank, the value of annual performance appraisals, bonuses for hitting targets etc. feel free to use closed science publishers.

Related: The Future of Scholarly Publication (2005)Fields Medalist Tim Gowers Takes Action To Stop Cooperating with Anti-Open Science CartelHarvard Steps Up Defense Against Abusive Journal Publishers25 provosts from top universities jointly released a letter supporting current legislation to require open publication of scientific research (2005)Problems with Management and Business Books