Tag Archives: Psychology

Stated Versus Revealed Preference

My father provided me a good example of the flawed thinking of relying on stated preference when I was growing up. Stated preference is, as you might deduce, the preferences voiced by customers when you ask. This is certainly useful but people’s stated preference often do not match there actions. And for a business, actions that lead to customers are more important than claims potential customers make about what will make them customers.

His example was that if you ask people if clean bathrooms in a restroom is required for a restaurant they will say yes. Potential customers will say this is non-negotiable, it is required. But if you eat at many “ethnic restaurants,” as we always did growing up, you would see many popular restaurants did not have clean restrooms. If the food at atmosphere was good enough clean restrooms were negotiable, even if customers stated they were not.

Now I think clean restrooms is a wise move for restaurants to make; it matters to people. Instead of creating a barrier to repeat customers that has to be overcome with much better food and atmosphere it is wiser to give yourself every advantage by giving the customers what they want. But I think the example is a simple example of stated versus revealed preferences.

McDonald’s gets a great deal of success by doing certain things well, including clean bathrooms, even if they miss on things some people think are important for a restaurant. McDonald’s really gets a fair amount of business for people driving a long distance that really want a clean bathroom and a quick stretch of their legs and quick food. This is a small percentage of McDonald’s customer visits but still a very large number of visits each day I am sure. Understanding, and catering to, the problem your customers are trying to solve is important.

The point to remember is what your potential customers say they will do is different than what they do. It is sensible to listen to stated preferences of customers just understand them for what they are.

We need to pay more attention to revealed preferences. Doing so can require putting in a bit more thinking than just asking customers to fill out a questionnaire. But it is worth the effort. A simple restaurant based example would be to have wait staff pay attention to what people leave on their plate. If you notice certain side dishes are not eaten more often, look into that and see what can be done (improving how it is prepared, substituting something else…).

Related: Voice of the CustomerThe Customer is the Purpose of Our WorkCustomers Are Often IrrationalPackaging Affects Our Perception of TasteBe Careful What You Measure

What is the Explanation Going to be if This Attempt Fails?

Occasionally during my career I have been surprised by new insights. One of the things I found remarkable was how quickly I thought up a new explanation for what could have caused a problem when the previously expressed explanation was proven wrong. After awhile I stopped finding it remarkable and found it remarkable how long it took me to figure out that this happened.

I discovered this as I programmed software applications. You constantly have code fail to run as you expect and so get plenty of instances to learn the behavior I described above. While I probably added to my opportunities to learn by being a less than stellar coder I also learned that even stellar coders constantly have to iterate through the process of creating code and seeing if it works, figuring out why it didn’t and trying again.

The remarkable thing is how easily I could come up with an new explanation. Often nearly immediately upon what I expected to work failing to do so. And one of the wonderful things about software code is often you can then make the change in 10 minutes and a few minutes later see if it worked (I am guessing my brain kept puzzling over the ideas involved and was ready with a new idea when I was surprised by failure).

When I struggled a bit to find an initial explanation I found myself thinking, “this has to be it” often because of two self reinforcing factors.

First, I couldn’t think of anything else that would explain it. Sometimes you will think right away of 4 possible issues that could cause this problem. But, when I struggled to find any and then finally came up with an idea it feels like if there was another possibility I should have thought of it while struggling to figure out what I finally settled on.

Second, the idea often seems to explain exactly what happened, and it often feels like “of course it didn’t work, what was I thinking I need to do x.” This often turns out to be true, doing x solves the problem and you move on. But a remarkable percentage of the time, say even just 10%, it doesn’t. And then I would find myself almost immediately thinking, of course I need to do y. Even when 10 seconds ago I was convinced there was no other possibility.

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Experience Teaches Nothing Without Theory

“Experience teaches nothing. In fact there is no experience to record without theory… Without theory there is no learning… And that is their downfall. People copy examples and then they wonder what is the trouble. They look at examples and without theory they learn nothing.”

W. Edwards Deming in The Deming of America

Our brains are good at creating theories, from our experiences, so that our brain can learn. However when this is done only subconsciously we can be led astray. And in complex situations where it is not easy to see the causal relationships (managing human systems for example) it easier for us to be led astray when we are not consciously thinking about the theory driving our thoughts and decisions.

When we are learning (as little kids) we don’t understand that are brain is creating theories to help us learn. But our brain is creating theories and testing them out. What happens when we push the spoon off our high chair? Lets try it 500 times and see. After repeated experiments, we learn a good deal about how gravity will affect objects no matter where you are, no matter if you are in a highchair, or a stroller or a slide or your mother’s lap… We also learn about how people will react (psychology).

Our brains are great at creating theories and testing them even without us understanding that is what is going on. But managers need to push past this subconscious learning to understand the theories behind their actions or they will spend lots of time on activities that are wasteful, similar to the bird in this webcast:

Worm charming is a behavior birds use to encourage worms to go to the surface so the birds can then eat them. The methods used vary, however tapping earth with feet to generate vibrations is widespread. One theory for why the worms go to the surface is the vibrations are similar to those produced by digging moles, which prey on earthworms.

This bird doesn’t understand the theory behind their instinct. Therefore the bird can’t understand that a worm is not likely to burst through the pavement. Too often managers are applying behaviors without understanding the theory (or without evidence showing that the practice based on the theory is effective – failing to practice evidence based management). And so the managers don’t understand that the behavior will not be successful given the conditions they find themselves in.

Related: We are Being Ruined by the Best Efforts of People Who are Doing the Wrong ThingHow We Know What We KnowThe Illusion of Knowledge

Lean Blog Podcast with John Hunter

Mark Graban interviewed me for the Lean Blog podcast series: Podcast #174 – John Hunter, “Management Matters” (listen using this link). Links to more information on what we discussed in the podcast.

More podcasts with me: Software Process and Measurement Podcast With John HunterBusiness 901 Podcast: Deming’s Management Ideas TodayProcess Excellence Network Podcast with John Hunter

Your Brain Can Jump to Incorrect Conclusions

How our brain works without us realizing it often is hugely beneficial, but it also creates some faulty conclusions at times. The video gives a good synopsis of the quick intuitive leaps our brains make all the time. These are extremely helpful, but occasionally lead us to fall into traps.

I have discussed these idea before: The Illusion of Knowledge, Optical and Other Illusions. By understanding some of the traps our brain can fall into, we can improve our decision making.

By learning that our “system 1 brain” will jump to immediate answers but may make some risky assumptions in seeking the quickest answer we can learn to question that conclusion. I find building the case for that conclusion (and questioning the assumptions) is helpful.

The trickiest part is figuring out when to apply more conscious effort to exploring the options. I do not believe the quip “don’t assume” is useful. We have to make hundred of assumptions every day or we couldn’t make any progress. If I don’t assume the floor will support my weight I have to be very careful getting out of bed, then the stairway, then whether food is safe to eat, whether the brakes still work on my car…

We have to assume. But it is helpful if we can intelligently question our immediate conclusions if it is important to do so. Optical illusion are interesting, most often the mistakes our brain makes are not important to us. But if such a conclusion was important, knowing to question your system 1 response will give you the chance to improve.

Related: We are Being Ruined by the Best Efforts of People Who are Doing the Wrong ThingHow We Know What We KnowFlaws in Understanding Psychology Lead to Flawed Management DecisionsAlbert Einstein, Marylin Monroe Hybrid Image

Podcast Discussion on Management Matters

I continue to record podcasts as I promote my new book – Management Matters: Building Enterprise Capability. This the second part, of 2, of my podcast with Joe Dager, Business 901: Management Matters to a Curious Cat. The first part featured a discussion of 2 new deadly diseases facing companies.

image of the cover of Managmenet Matters by John Hunter

Management Matters by John Hunter

Listen to this podcast.

Links to more information on some of the topics I mention in the podcast:

More podcasts: Process Excellence Network Podcast with John HunterBusiness 901 Podcast with John Hunter: Deming’s Management Ideas Today (2012)Leanpub Podcast on Management Matters: Building Enterprise Capability

Double Loop Learning Presentation by Benjamin Mitchell

Benjamin Mitchell – Using the Mutual Learning Model to achieve Double Loop Learning from Agileminds.

Benjamin Mitchell presents ideas using Chris Argyris thinking on double-loop learning. “Double-loop learning occurs when error is detected and corrected in ways that involve the modification of an organization’s underlying norms, policies and objectives.”

Single loop learning is basically to just try again using the same understanding, thinking and tactics. It is understood that the results were not what was desired so we will try again, but the supporting system is not seen as the reason results were not the desired results. Double loop learning is when the result leads to questioning the system and attempting to adjust the system and make changes and experiment to learn to be able to create systems that get better results.

Argyris: people will blame others and the system when their actions seem to differ from their espoused proper actions. (I see this as similar to the idea of revealed preference versus stated preference: revealed actions versus stated actions – John)

Related: People are Often IrrationalDouble Loop Learning in Organizations
by Chris Argyris
Theory of knowledgeRethinking or Moving Beyond Deming Often Just Means Applying More of What Dr. Deming Actually Said

Customers Are Often Irrational

Penney Pinching

“The first rule is that there are no irrational customers,” Drucker wrote in Management: Tasks, Responsibilities, Practices. “Customers almost without exception behave rationally in terms of their own realities and their own situation.”

“in terms of their own realities and their own situation.” is a huge caveat. Essentially plenty of customers behave irrationally – by any sensible definition of rational. I agree, to make them customers and keep them as customers you need to develop theories that can make sense of their behavior. And it doesn’t make sense to think if they behave irrationally that means randomly (chaotically, unpredictably, uncontrollably). Customers can be predictably irrational (as a group).

Seeing that people will chose* to fly lousy airlines because the initial price quoted is a little bit cheaper than an alternative (or because they are in a frequent flyer program) you can say the customer is behaving rationally if you want. Coming up with some convoluted way to make their decision, which based based solely on their desired outcomes (and cost factors etc.) is not rational, to be seen as rational seems like a bad idea to me. Instead figure out the models for how they fail to behave rationally.

They consistently chose an option they shouldn’t rationally want; in order to save some amount of money they don’t care about nearly as much as the pain they will experience. And the amount they will then complain about having to suffer because they chose to deal with the badly run airline. That isn’t rational. It is a common choice though.

The problem is not in thinking the customers are being irrational for not buying what you are selling. The problem is in thinking the customers will behave rationally. Your theory should not expect rational behavior.

There are plenty of other examples where customers make irrational decisions. I don’t think calling them rational (within the irrationality of their “own realities” makes sense). People will buy things because they think it is a better bargain to get the more expensive item that is the same, for more money, because originally the store charged more and now it is on sale. Anchoring isn’t an understanding of how people are rational. It is an understanding of how psychology influences people in ways that are not rational.

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Joy in Work in the Quality Improvement Field

As I mentioned previously, I will be posting on a topics raised by Paul Borawski, CEO, ASQ as part of ASQ Influential Voices. This month Paul’s post, Are Quality Professionals Happy On the Job? looks at job happiness in the quality improvement field.

Paul stated he “wasn’t surprised that Forbes Magazine named software quality assurance engineer as the ‘happiest job’ in the U.S.” I was. Frankly looking at the results I question the methodology used – I just find their claims questionable. Whether any ranking could be sensible is also a reasonable question. I do believe certain careers make people happier than others, I question whether you can sensibly differentiate the top 20.

Still, looking at the happiness of those in the quality field is an interesting topic. My father created a challenge for me. He loved what he did: professor (statistics, chemical engineer, industrial engineer, business) and consultant (same things, with focus on quality and management improvement). Helping achieve better results was important to him. And helping create joy in work was also. It took me a while to see how much of an outlier he was – finding people who love what they do is much rarer than those that complain a great deal I have found.

That software development ranks toward the top doesn’t surprise me. Software programmers are some of the people happiest in their jobs in my experience. My experience is biased toward those given more freedom than those working in large bureaucracies (I can imagine those programmers are less happy overall). In addition to being happier with their jobs they also are demanding. They are not the least challenging of authority (some managers seem to equate docility with happiness, but that isn’t accurate, in my opinion).

To me the quality field allows for a great deal of joy in work. That doesn’t mean it is without frustration. I think the field does have a fairly high level of frustration as many are stuck in systems that are moving much to slowly to improve management practices. This is the biggest concern I find from most in the quality improvement field. So in order to be happy one has to learn to cope with some frustration while making good progress and finding happiness in all the achievements even while knowing more could be done.

Related: The Importance of Management ImprovementRespect People by Creating a Climate for Joy in WorkRespect for People: Optimize for Developer Happiness at EtsyCreate a System That Lets People Take Pride in Their WorkSigns You Have a Great Job … or Not

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Motivation, Rewards, Performance Appraisals and Your Career

In this interview Dan Pink again makes some great points relating to psychology, managing people and managing your career.

Q. What kinds of programs can managers and companies put into place to motivate their workforce?

Assuming companies are paying people fairly, they should do what they can to foster autonomy, mastery, and purpose. One of my favorite specific ideas is this: The Australian company Atlassian conducts what they call “FedEx Days” in which people work on anything they want for 24 hours and then show the results to the company the following day. These one-day bursts of autonomy have produced a whole array of fixes for existing products, ideas for new ones, and improvements to internal processes that would have otherwise never emerged. For creative tasks, the best approach is often just to hire great people and get out of their way.

I agree. Focusing on motivation is wrong, as Douglas McGregor detailed in the Human Side of Enterprise over 50 years ago. The problems with theory x management (motivation through fear and rewards) has been detailed over and over again decade after decade. I get tired of us ignoring very well done work to help us manage better for decades 🙁

Q. Are you suggesting that offering someone a 50 per cent raise won’t motivate him or her to work harder?

…most organizations dangle what I call “if-then” rewards — as in, “If you do this, then you get that” — bonuses, commissions, and like. Fifty years of social science tells us that “if-then” rewards are great for simple, routine, algorithmic work [but not creative work]… The best use of money as a motivator is to hire great people and then pay them enough to take the issue of money off the table.

By the way, even that juicy, non-contingent 50 per cent raise has some serious limits. People will be thrilled in the short-run, but over the long term (say, the third paycheck) the thrill will become the status quo…

Again I agree: When Performance-related Pay Backfires, Righter Incentivization, Build an Environment Where Intrinsic Motivation Flourishes.

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The Customer is the Purpose of Our Work

photo of poster with Gandhi quote

Quote from Gandhi on customer focus at the Chakra restaurant

A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.

Mahatma Gandhi

A snapped this photo at the Chakra restaurant in Johor Bahru, Malaysia. Ironically the food is great but the service isn’t what I would like. But I will gladly go back many times. I’d like a bit more attentive service but I love the food and that is more important to me.

I think service at restaurants is one of the tricker things to do well: different customers have different desires. I basically want great food, my water to be filled up and my bill to be given to me before I finish so I don’t have to wait around to pay. But lots of people will find it annoying to get a bill early, feeling that they are being rushed out the door.

Still there is a certain standard I share with lots of people for things like not having to wait around for a long time to get the bill after I am done. Getting water filled up as needed, pleasant decor, etc..

In Johor Bahru there are a fair number of Japanese restaurants (the food is very good and the service is also good). Several of these restaurants have buzzers on your table to press when you want service. I love Indian food. I must say I like the Japanese service (it did take me a bit to warm up the buzzer idea – it is very practical). It do believe some of the things I would see as weaknesses in customer service are partially a cultural difference (it is interesting to see the different customer service experiences at the different restaurants here).

The quote from Gandhi is great. “He is the purpose of it” is something we would all benefit from taking to heart. To do so, I think we are wise look at how we can better meet customer desires every day.

Related: Delighting Customersquotes by Mahatma GandhiPaying New Employees to Quit

Respect for People: Optimize for Developer Happiness at Etsy

The webcast above discusses the culture of software engineering at Etsy (a very popular site providing a marketplace and community for small businesses – artisan focus). Some of the key points of the talk. Etsy trusts employees. Etsy’s strategy is to optimize for developer happiness. Etsy has lunches twice a week where employees build community.

Etsy sees code as craft. The echos Etsy’s value on authorship: “the people behind what we buy make commerce meaningful.” It re-inforces the belief that work has meaning and is valued and should have intrinsic value to those doing the work, people should have the opportunity to take pride in their work.

Chad Dickerson discussed the importance Peter Drucker placed on connecting people to the value provided to customer. Etsy takes steps to connect employees to the value provided to customers, including emphasizing the community of the company and the customers of Etsy.

Related: Respect People by Creating a Climate for Joy in WorkMistake Proofing Deployment of Software CodeBuild an Environment Where Intrinsic Motivation Flourishes

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Selling Quality Improvement

In this month’s ASQ influential quality voices post, Paul Borawski asks How Do You “Sell” Quality?

I am amazed how difficult it is to sell quality improvement. I look at organizations I interact with and easily see systemic failures due to faults that can be corrected by adopting management improvement strategies that are decades old. Yet executives resist improving. The desire to retain the comforting embrace of existing practices is amazingly strong.

What sells to executives are usually ideas that require little change in thinking or practice but promise to eliminate current problems. What Dr. Deming called “instant pudding” solutions sell well. They are what executives have historically bought, and they don’t work. I can’t actually understand how people continue to be sold such magic solutions but they do.

If you want to enable effective management improvement, as I do, you need to both have buyers for what you offer and offer something that works. Honestly I am not much of a salesperson. Based on what I see executives buy the sale should be packaged in a way that minimize any effort on the executive’s part. However, that doesn’t interest me because it nearly always leads to failed improvement efforts. For years (decades?) Dilbert has provided a humorous view on the continuing tragedy of these efforts.

Another sales option is look for desperate executives that have already tried taking the easy way out 5 or 6 or 7 times and are still in desperate for improvement. Once they can’t see any options offering simple solutions they may be willing to work at a solution.

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We are Being Ruined by the Best Efforts of People Who are Doing the Wrong Thing

Deming’s Second Theorem: “We are being ruined by best efforts.”

What did Dr. Deming mean by this?

Another quote by Dr. Deming might give you a clue? “Best efforts will not substitute for knowledge.”

Irwin, the porcupine at the Animal Rescue League Wildlife Center has to work a little harder for his breakfast in this clip. The wildlife center likes to provide animals in captivity puzzles and challenges to keep them interested in their environment so they stuck his breakfast to the bottom of the mug.

Thankfully the baby porcupine in the video doesn’t ruin anything and instead just gives us an enjoyable video. He does spends a great deal of energy putting forth his best efforts, but without a theory 🙂 Best efforts can often cause damage to the organization when people give their best efforts but are not guided by knowledge of what is useful and what is harmful.

Another Deming Quote: “We are being ruined by the best efforts of people who are doing the wrong thing.” Please share your comments on how organizations are ruined by best efforts.

And I will wrap up the post with another quote from Dr. Deming: “We want best efforts guided by theory.”

Related: quotes by W. Edwards DemingDeming on being Destroyed by Best EffortsRighter Incentivization

Trust But Verify

The following are my comments, which were sparked by question “Trust, but verify. Is this a good example of Profound Knowledge in action?” on the Linked In Deming Institute group.

Trust but verify makes sense to me. I think of verify as process measures to verify the process is producing as it should. By verifying you know when the process is failing and when to look for special causes (when using control chart thinking with an understanding of variation). There are many ways to verify that would be bad. But the idea of trust (respect for people) is not just a feel-good, “be nice to everyone and good things happen”, in Deming’s System of Profound Knowledge.

I see the PDSA improvement cycle as another example of a trust-but-verify idea. You trust the people at the gemba to do the improvement. They predict what will happen. But they verify what does actually happen before they run off standardizing and implementing. I think many of us have seen what happens when the idea of letting those who do the work, improve the process, is adopted without a sensible support system (PDSA, training, systems thinking…). It may actually be better than what was in place, but it isn’t consistent with Deming’s management system to just trust the people without providing methods to improve (and education to help people be most effective). Systems must be in place to provide the best opportunity to succeed. Trusting the people that do the work, is part of it.

I understand there are ways to verify that would be destructive. But I do believe you need process measures to verify systems are working. Just trusting people to do the right thing isn’t wise.

A checklist is another way of “not-trusting.” I think checklists are great. It isn’t that I don’t trust people to try and do the right thing. I just don’t trust people alone, when systems can be designed with verification that improves performance. I hear people complaign that checklists “don’t respect my expertise” or have the attitude that they are “insulting to me as a professional” – you should just trust me.

Sorry, driving out fear (and building trust – one of Deming’s 14 points) is not about catering to every person’s desire. For Deming’s System of Profound Knowledge: respect for people is part of a system that requires understand variation and systems thinking and an understanding of psychology and theory of knowledge. Checklists (and other forms of verification) are not an indication of a lack of trust. They are a a form of process measure (in a way) that has been proven to improve results.

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Be Thankful for Customer That Are Complaining, They Haven’t Given Up All Hope

I ran across this message and liked it (by wuqi256):

My time spent in a fast food chain (factory worker on weekends and security guard at night, yes really thanks to them, i have great jobs like that) when i was young trying to feed the family and study at the same time was quite useful.

They taught me that “Customers who complain are the best customers, it shows that they have still residual faith and goodwill in the organisation hence we should sift out those frivolous complains from those genuine ones that need our urgent attention” These are people who we can and should do a lot for as a complaining customer still has a very high chance of becoming a “returning” customer.

The customers that we fear for the most are those that either have voiced out or not heard or those who have given up and moved on to another organisation. Those we can no longer do much for as they no longer give us a chance. Discontentment is one thing but find the root cause, remove the straw from the cauldron and the water will stop boiling.

I know I often don’t bother voicing my concerns when I have given up all hope the organization has any interest in customer service. Sadly this is a fairly common situation.

It isn’t easy to do, but organizations that are customer focused need to be taking advantage of those customers helping you by expressing the frustration (that many of your customers experience, but don’t express). To do so organizations need to develop a culture where everyone is encouraged to improve your processes. The tricky part is not claiming that is what you want, but actually creating and maintaining the systems that bring that about.

Related: The Problem is Likely Not the Person Pointing Out The ProblemCustomer Service is ImportantCustomers Get Dissed and Tell

Dr. Deming in 1980 on Product Quality in Japan and the USA

I posted an interesting document to the Curious Cat Management Library: it includes Dr. Deming’s comments as part of a discussion organized by the Government Accounting Office in 1980 on Quality in Japan and the United States.

The document provides some interesting thoughts from Dr. Deming and others; Dr. Deming’s statements start on page 52 of the document. For those really interested in management improvement ideas it is a great read. I imagine most managers wouldn’t enjoy it though (it isn’t giving direct advice for today, but I found it very interesting).

Some selected quotes from the document follow. On his work with Japan in 1950:

This movement, I told them, will fail and nothing will happen unless management does their part. Management must know something about statistical techniques and know that if they are good one place, they will work in another. Management must see that they are used throughout the company.
Quality control must take root with simple statistical techniques that management and everyone in the company must learn. By these techniques, people begin to understand the different kinds of variation. Then quality control just grow with statistical theory and further experience. All this learning must be guided by a master. Remarkable results may come quick, but one has no right to expect results in a hurry. The learning period never ends.

The statistical control of quality is not for the timid and the halfhearted. There is no way to learn except to learn it and do it. You can read about swimming, but you might drown if you had to learn it that way!

One of the common themes at that time was Deming’s methods worked because Japanese people and culture were different. That wasn’t why the ideas worked, but it was an idea many people that wanted to keep doing things the old way liked to believe.

There may be a lot of difference, I made the statement on my first visit there that a Japanese man was never too old nor too successful to learn, and to wish to learn; to study and to learn. I know that people here also study and learn. I’ll be eighty next month in October. I study every day and learn every day. So you find studious people everywhere, but I think that you find in Japan the desire to learn, the willingness to learn.

You didn’t come to hear me on this; there are other people here much better qualified than I am to talk. But in Japan, a man works for the company; he doesn’t work to please somebody. He works for the company, he can argue for the company and stick with it when he has an idea because his position is secure. He doesn’t have to please somebody. It is so here in some companies, but only in a few. I think this is an important difference.

At the time the way QC circles worked in Japan was basically employee led kaizen. So companies that tried to copy Japan told workers: now go make things better like the workers we saw in Japan were doing. Well with management not changing (and understanding Deming’s ideas, lean thinking, variation, systems thinking…) and staff not given training to understand how to improve processes it didn’t work very well. We (those reading this blog) may all now understand the advantages one piece flow. I can’t imagine too many people would jump to that idea sitting in their QC circle without having been told about one piece flow (I know I wouldn’t have), and all the supporting knowledge needed to make that concept work.

QC circles can make tremendous contributions. But let me tell you this, Elmer. If it isn’t obvious to the workers that the managers are doing their part, which only they can do, I think that the workers just get fed up with trying in vain to improve their part of the work. Management must do their part: they must learn something about management.

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Management Improvement Carnival #149

Jon Miller hosts Management Improvement Carnival #149 looking at blog posts examining motivation, highlights include:

  • a wonderful cat photo
  • Kevin Meyer found some bright spots on his trip to India and documented them in several fun articles in Evolving Excellence. My favorite was leadership lessons from Ganesha, a set of mindsets and behaviors that are both motivating personally and constructive in motivating others.
  • On productivity and motivation, one article began by explaining how researchers found that doing or saying something nice, even if this was a very small gesture, has proven to improve the job performance of people including doctors. The premise is that positivity promotes performance.
  • Addressing the question of “Where do I start?” in learning lean thinking and putting it into practice, Mark Rosenthal suggests adopting the find the bright spots advice from the book Switch. Finding brights spots is always good advice. While companies fail at thing for a wide variety of local and specialized reasons, success tends to cluster around a handful of factors; motivated people; removing waste, variation and burden; a long-term view. We need to drill a level deeper in each one of these.

I agree that motivation is a very important topic. I think trying to improve management without a good understanding of how people are really motivated is very difficult and weaknesses in this area end up frustrating many improvement efforts.

Related: Incentivizing Behavior Doesn’t Improve ResultsMotivate or Eliminate De-MotivationYou’ve Got to Find What You Love

Psychology of Improvement

Even if ideas are good and have significant importance (high value to customers, reduce waste dramatically, improve safety…) implementing the ideas can be difficult. Getting people to make an effort to improve a situation by simply laying out the dry facts is not very effective. You need to engage in the management system to make your ideas something other people care about and want to do (you need to consider the psychology of getting things done in human systems).

Often a good way to do this is not to just think what is best for the performance of the system, but figure out what people want fixed/improved… and then figure out what I think could help. Then pick among various options to improve based upon the advantages to the performance of the organization, desires of decision makers and the ability of an improvement effort to build the capacity of the organization for customer focused continuous improvement.

Few places I have worked just want to adopt Deming’s ideas (which is my belief for what is the best way to improve performance). But they have things they care about – reducing the times people get mad at them, increasing cash flow… I find it much easier to help them with their desires and slowly get them to appreciate the benefit of Deming’s management ideas, lean thinking and quality tools. Though even this way it isn’t easy.

Even if the organization I am working with doesn’t think based on Deming’s ideas, I do. So I believe any effort to improve the management system must consider all 4 areas of Deming’s management system. In the beginning of an improvement effort psychology is very important for the change agent to consider and deal with. With an understanding of psychology and an understanding of the organization you can build appropriate strategies to improve and build the capacity of the organization to improve over the long term.

I also think about the long term as I am thinking of how to help. It is important to not just solve the current dilemma but to improve the organizational capacity to improve in the future. And for me that means increasing people’s understanding of the ideas I explore in the Curious Cat Management Improvement blog.

Related: Building the Adoption of Management Improvement Ideas in Your OrganizationStop Demotivating EmployeesHow to Improve

Practical Ways to Respect People

What matters is not your stated respect for people but your revealed respect for people. Here are some ideas I collected after being prompted by a post by Ron Pereira: 7 Practical Ways to Respect People.

  • Don’t waste people’s time: have meetings only when necessary and provide agendas in advance. Use email effectively instead of presenting material in meetings that can better be presented in email. Don’t have complex benefit manuals, aimed at making lawyers happy, that employees are expected to use.
  • Do what you say you will.
  • Provide bad news early (don’t hope it will get fixed somehow so you don’t have to address it, let people know what is going on and let them help).
  • Pay people fairly – I would venture to say most senior executive pay today is inherently disrespectful, If I am wrong about the “most” part, certainly a huge amount executive pay is inherently disrespectful.
  • Put the long term success of all stakeholders as the focus (don’t risk people’s jobs for short term bonuses, don’t use large amounts of leverage risking the future of the company…). Respect all stakeholders and provide them confidence their long term success is important. Companies that find themselves laying off workers due to managements failure to succeed over the long term are not being respectful to those workers. That failure is most obvious today but the important improvement is not in handling the layoff today, it is in the behavior for years before that did not build a system that was successful in the long term.
  • Tell people what they can do to improve. It is respectful to help people improve. It is treating people like a child that needs to be shielding from any hint of weakness in need of improvement.
  • Don’t expect a few people to do far more than their fair share of work because management allows poor performance to continue un-addressed.
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