Posts about leadership

20 Most Popular Posts on the Curious Cat Management Blog in 2016

These posts were the most popular posts on the Curious Cat Management Improvement Blog in 2016 (as measured by page views, as recorded by my analytics application).

photo of John Hunter

John Hunter, Frijoles Canyon, Bandelier National Monument, New Mexico, USA.

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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

Lead by Building Organizational Capability

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

2. Help people solve their problems.

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

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

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

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

Hopefully you will find the entire post worthwhile.

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

Giving Executives 40% of Revenue is Insane

I have previous written on my belief that excessive executive compensation had reached the level of a deadly disease of western management (building on the W. Edwards Deming’s list of 7 deadly diseases). I named excessive executive pay and a broken “intellectual property” system as new deadly diseases in 2007.

Here is a graphic from, It’s Twitter’s birthday, and its executives are getting huge stock-based gifts, showing the massive executive give-away at Twitter.

chart showing how much Twitter gave to executives as percent of total revenue

Twitter has given executives $2,000,000,000 in just stock based compensation from 2011 through 2015. Twitter’s revenue for those 4 years was only $4,709,000,000. So Twitter gave executives 42.5% of revenue. This is of revenue, not earnings, Twitter isn’t even profitable.

Granted this is an extremely bad case but this pattern of giving away hundreds of millions of dollars to executives is common. It is destructive. It is disrespectful. It is a stain on those participating in the looting of companies for the benefit of the executive bureaucrats – those that enable them to siphon off the returns generated by companies into their pockets.

Related: Toyota Post Record Profit: Splits $15 million in Pay and Bonus for top 21 Executives (2014)Business 901 Podcast: Two New Deadly Diseases for Business (2013)Massive Bonuses Encourage Executives to Take Massive Risks (leverage etc.)

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Transform the Management System by Experimenting, Iterating and Adopting Standard Work

In this short video, Dr. John Toussaint describes how ThedaCare applied leadership standard work to create a successful management transformation. The changes to the management system were tested by applying standard work for all positions in 2 parts of the organization (including all senior management positions) and learning and adapting and then spreading the new methods to the rest of the organization.

Changes to the management system require the same testing and piloting of changes on a small scale as other process changes. Experiment by going an inch wide and a mile deep, iterate over PDSA cycles, and once we have a solution that works adopt it widely (the A in PDSA).

Related: Systemic Workplace ExperimentsTransforming a Management System, A Case Study From the Madison Wisconsin Police DepartmentTransformation and Redesign at the White House Communications AgencyCulture Change Requires That Leaders Change Their BehaviorStandard Work InstructionsHow To Create a Continual Improvement Culture

Most Popular Management and Leadership Quotes on Our Site in 2015

These were the most popular quotes on the Curious Cat Management and Leadership Quotes web site in 2015 (based on page views). Follow the link on the quote text for the source and more information on the quote.

  1. Having no problems is the biggest problem of all.Taiichi Ohno
  2. Managers who don’t know how to measure what they want settle for wanting what they can measure.Russell Ackoff
  3. Don’t look with your eyes, look with your feet. Don’t think with you head, think with your hands.Taiichi Ohno
  4. The answer to the question managers so often ask of behavioral scientists “How do you motivate people?” is, “You don’t.”Douglas McGregor
  5. Performance appraisal is that occasion when once a year you find out who claims sovereignty over you.Peter Block
  6. A bad system will beat a good person every time.W. Edwards Deming
  7. People who can’t understand numbers are useless. The gemba where numbers are not visible is also bad. However, people who only look at the numbers are the worst of all.Taiichi Ohno
  8. We believe customer number one, employee number two, shareholder number three… Because you’ve take care of the customer, take care of the employees, shareholder will be taken care of.Jack Ma
  9. A leader is a coach, not a judge.W. Edwards Deming
  10. Real benefits come when managers begin to understand the profound difference between “cost cutting” and “eliminating the causes of costs.”Brian Joiner
  11. Standards should not be forced down from above but rather set by the production workers themselves.Taiichi Ohno
  12. A problem never exists in isolation; it is surrounded by other problems in space and time. The more of the context of a problem that a scientist can comprehend, the greater are his chances of finding a truly adequate solution.Russell Ackoff
  13. 95% of changes made by management today make no improvement.Peter Scholtes
  14. blame the process not the person. We need to ask, “how did the process allow this to happen?”Brian Joiner
  15. Good execution of performance appraisal is not the solution. More people are realizing that improving how performance appraisal are done is an attempt to do the wrong thing better. If you insist on doing the wrong thing, I suppose you might as well do it better but how about just not doing the wrong thing at all?John Hunter
  16. A system is more than the sum of its parts; it is an indivisible whole. It loses its essential properties when it is taken apart. The elements of a system may themselves be systems, and every system may be part of a larger system. – Russell Ackoff
  17. All Models Are Wrong But Some Are UsefulGeorge Box
  18. It is wrong to suppose that if you can’t measure it, you can’t manage it – a costly myth.W. Edwards Deming
  19. the aim of leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to bring pride of workmanship to people. Put in a negative way, the aim of leadership is not merely to find and record failures of men, but to remove the causes of failure: to help people to do a better job with less effort. – W. Edwards Deming
  20. There are three ways to get better figures… Improve the system… Distort the system… Distort the figuresBrian Joiner

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

Making Your Case to Senior Executives

This month Dr. Suresh Gettala writes about the Talking To the C-Suite About Quality in the monthly ASQ Influential Voices post.

My take is a bit different than Dr. Gettala (and most others) in that I believe CEOs are so wedded to short term financial measures that if you are speaking to them you need to both appeal to this bias while also fighting to move the organization away from being led by such a bias. That task isn’t easy, the financial bounty heaped on CEOs makes it very difficult for them to think of the long term and about the normal customer experience.

In order to “make the sale” the advice is pretty simple, short term financial measures are what will work (most of the time). Clear data that shows cost savings or increased sales are what they want to see. Of course, we have all seen how easy it is to manipulate data to make a case for whatever you are arguing for. If you are making the case that other powerful people (in the room) want to be made and the CEO wants to hear those claims will be easily accepted most of the time.

If you are challenging the Highest Paid Person’s Opinion (HiPPO) (and/or their supporters) you will have great difficulty getting your data listened to no matter how compelling it is. Knowing this going into your meeting is critically important.

If you can’t find a very clear case to be made for your position, strongly supported by difficult to refute data you may well want to just go along with the desires of those with power. I tend to fight for what I think is right, no matter if my chances of success are low, but this isn’t really a wise strategy.

The Starry Night at the MET with a teacher standing and students sitting

The Starry Night at the Metropolitan Museum of Art in NYC. Photo by John Hunter; see more NYC photos.

I do try to focus on building the organization into one that will support my belief in a customer focused organization build on a foundation of respect for people striving to continually improve results through experimentation but this is a challenge. And trying to talk to the c-suite about quality when they are not ready to adopt that model of management doesn’t do much good.

Though admittedly I am not a good salesperson, I succeed by making things work better not by spinning good stories about how things could be better. Good salespeople will have more success with the challenge of getting a skeptical crowd to accept change, but senior executives normally are not easy to sell on new ideas. My strategy is to build my reputation by achieving results using good management practices. That builds the case for using the management ideas I believe in and listening to what I say (based on past results instead of my charisma or communication skill).

My advice is to grow your circle of influence and build the capability of the organization to adopt a customer focused continual improvement management system. Once that is done, speaking to the c-suite is easy. Before that is done, speaking to them is still easy, unless you want them to change their short term financial focus.

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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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All Data is Wrong, Some is Useful

From my first blog post on this blog – Dangers of Forgetting the Proxy Nature of Data

we often fail to explore whether changes in the numbers (which we call results) are representative of the “true results” of the system or if the data is misleading.

Data is meant to provide us insight into a more complex reality. We need to understand the limitations when we look at “results” and understand data isn’t really the results but a representation we hope is close to reality so we can successfully use the data to make decisions.

But we need to apply thought to how we use data. Lab results are not the same are what happens in the field. It is cheaper and faster to examine results in a lab. But relying on lab results involves risk. That doesn’t mean relying on lab results is bad, we have to balance the costs and benefits of getting more accurate data.

But relying on lab results and not understanding the risk is dangerous. This is the same idea of going to the gemba to get an accurate understanding instead of relying on your ability to imagine reality based upon some data and ideas of what it is probably like.

photo of a Modified Yellow VW Beetle

VW Beetle (in Bangkok, Thailand) has some sort of modification along the back bumper but I don’t know what it is meant to do. Any ideas? More of my photos from Bangkok.

Volkswagen Drops 23% After Admitting Diesel Emissions Cheat

Volkswagen AG lost almost a quarter of its market value after it admitted to cheating on U.S. air pollution tests for years

During normal driving, the cars with the software — known as a “defeat device” — would pollute 10 times to 40 times the legal limits, the EPA estimated. The discrepancy emerged after the International Council on Clean Transportation commissioned real-world emissions tests of diesel vehicles including a Jetta and Passat, then compared them to lab results.

Obviously VW was managing-to-test-result instead of real world value. It seems they were doing so intentionally to provide misleading data. Obviously one of the risks with lab test results (medical trials etc.) is that those with an interest in showing better results could manipulate the data and lab procedures (or systems) to have the data show their product in the most favorable light.

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

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

cover image of the New Quality Leadership Workbook for Police

The New Quality Leadership Workbook for Police

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

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

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

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

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

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

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

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

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Who Inspires Your Management Thinking and Action?

This month Bill Troy, ASQ CEO, asked ASQ Influential Voices bloggers: “who influenced or inspired your management thinking and in what ways?” He discussed Paul O’Neill’s influence on his thinking; I agree that Paul has done some very impressive work in health care.

I have written about my management influences in the past: Active Management Improvement Leaders (2006) and Who Influences Your Thinking? (2005).

John and Bill Hunter Bill Hunter and John Hunter

My largest influence by far is my father, William Hunter. Here is a good example of why: Managing Our Way to Economic Success, Two Untapped Resources: potential information and employee creativity. In another post I also wrote about my early influences related to quality management as I grew up in Madison, Wisconsin.

From an early age I learned to experiment, appreciate and understand data, respect people and continually improve. These lessons were a natural part of growing up in our family.

Another influence, and natural part of growing up in our family was George Box. He was Dad’s colleague and shared all the qualities listed above; we often saw him at our house or visited their family at George’s house.

They both shared the expectation that you continually seek to learn and improve. They both shared the scientist and engineering mindset that ideas should be tested and probed and new methods and ideas discovered. They also believed that making improvements in the real world was the goal. The aim was not merely to think up new ideas but to implement them to improve people’s lives. They shared a passion for freeing the minds of everyone to allow everyone to have joy in work and life.

Brian Joiner was also around as I grew up and to a lessor extent so was Peter Scholtes. After I graduated from college and started to work I actually worked with Peter actually more than the others (I created and still maintain Peter’s website) and he had a great influence on my management thinking. Again all that I said about George and Dad applies to Peter. Peter was less focused than the statisticians (the other 3 and Deming were statisticians) on data, but they were all cut from the same cloth.

And through all of them I was exposed to Dr. Deming’s ideas and those also have had a great influence on my thinking. As you can see from the characteristics listed above that it all fits together very well, which isn’t a surprise. The reason Dad, Brian, Peter, George and Deming worked with each other and shared ideas was that the ideas they all were pursuing fit together. Dad was writing back and forth with Deming all the way back in the 1960’s and continued until he died. In Out of the Crisis, Deming asked Dad to write a few pages on the work with the City of Madison applying the management improvement ideas.

Dad had decided he wanted to help the City after returning from a summer lecturing in China on design of experiments (mainly). He worked with Peter Scholtes (at that time a City employee) on the project with the City of Madison’s vehicle maintenance garage. The Mayor, Joe Sensenbrenner, wrote up those experiences in the Harvard Business Review (Quality Comes to City Hall). Peter then went to work for Joiner Associates and soon he and Brian were working with Deming, speaking at his 2 day seminars.

Brian had previously worked at the UW-Madison Statistics department that George established. Dad followed George from Princeton, where as a under-graduate student he took a graduate course George taught. Dad was the first PhD graduate of the department and became a professor the next year.

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The Importance of Leadership by Those Working to Improve Management

This month Bill Troy, ASQ CEO, asked ASQ Influential Voices bloggers to explore the importance of leadership for every quality management professional.

Leadership is important but also something that often is difficult to understand what exactly is meant by the person using the term. In Bill’s case he provides some guidance with: “Leadership encompasses… business savvy, people skills, and decisive action all are required to get results in the world.”

The ability to find solutions and move forward efforts in organizations does benefit from people skills. Working with people effectively is an important part of having success in improving organizations. What that means to different people is very different. Some people see charisma as key, others believe decisiveness is very important, others see winning over the hearts of people as what it takes to make a difference.

For me the key is managing with an understanding of respect for people and how that concept fits with the rest of Deming’s management system.

There are different paths to success but you need to have others respect for your knowledge on the topic, your ability to make solutions work and your trustworthiness. Different leaders lean on different areas. Some people win over the hearts others may offer a low charisma aura but others are confident they have the ability to deliver based on their knowledge. As Dr. Deming said you have 3 ways to influence others, your authority stems from: your position, your knowledge and your personality.

I do think business savvy is something that doesn’t get enough attention of lean/Deming/six-sigma/quality professionals. There is a need to communicate with executives in a language they understand in order to make big changes. That requires an understanding of business and an appreciation for the importance of actually delivering value over talking about good plans.

I think six sigma efforts are less useful that Deming and lean efforts. But I do think six sigma has 2 things that are given more weight (by organizations using it well, far too few of them using it, sadly) that help six sigma efforts. First is a focus on training about design of experiments. To some extent this is then acted on by organizations pursuing six sigma – but too often it isn’t. However others neglect even talking much about design of experiments. My father did a great deal of work in this area and I am biased, but for me it is an extremely powerful tool that is used far too little.

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A Strong Management System Handles the Transition of Leaders With Ease

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

Leadership While Viewing the Organization as a System

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

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

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

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

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

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

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

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

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

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

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

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

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

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Out of Touch Executives Damage Companies: Go to the Gemba

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).

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

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

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

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

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

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

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

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

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

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

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

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Bad Weather is Part of the Transportation System

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.

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Taking Risks Based on Evidence

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.

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

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.

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