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Delighting Customers

Posted on July 26, 2010  Comments (1)

If you have customers that see you as adequate you will keep customers based on inertia.

But you have several big problems awaiting you. Those trying to win your customers business only have to overcome inertia – which can be very low hurdle (saving a small bit of money, some minor additional feature). If your customers are delighted they won’t leave (by and large) without significant reasons to.

Also your attempts to increase price are very likely to lead to increased customer losses (than if customers are delighted). Delighted customers are willing to pay a premium which helps profits enormously (Apple has done this quite well).

Delighted customers will refer others to you – great free marketing.

Satisfied customers leave you very little leeway for error. If you cause satisfied customers some problem (which granted, hopefully you won’t but if you do) they are not likely to be forgiving. If they are delighted they may well stay even if you have a delay, provide less than stellar customer service for some request…

There are many ways to attempt to delight customers. One of the simplest powerful tools is to ask a very simple question: What Could we do Better?

Related: What Job Does Your Product Do? – It Just Works – Kano Model of customer satisfaction – customer focus resources

The Problem is Likely Not the Person Pointing Out The Problem

Posted on July 19, 2010  Comments (2)

I believe the problem is likely not the person pointing out the problem. Now granted I have often been that person. Part of what I have been tasked with doing in various jobs is finding ways to improve the performance of the organization. I was told the managers wanted to hear about problems from someone working there, so I was asked to do so. What it often meant was they wanted someone to fix the problems they thought existed not point out the problem was the systems, not the people forced to deal with the systems.

I have learned managers are a lot happier if I just shut up about all the problems that should be addressed. There are happy if I can fix what I can (though really they seem to care much more about not being negative than any actually improving) and just be quiet about anything else – otherwise you are seen as “negative.”

How to Manage Whining with no Problem Solving

As individuals begin to focus on the negative and don’t engage in problem solving, this behavior is unacceptable
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The first time, it is a venting and commonly a subject matter problem. The next time we have a trend occurring, and this is where we need to coach our team player to be constructive process improvement artists. If the whining continues, we may be dealing with a negative attitude which has begun to permeate our colleague.
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explore the previous solution’s outcomes; help the individual to be empowered to resolve the issue. If it is absolutely above the teammate authority, offer to help and commit to actions.

I think it is right to focus the effort on problem solving to improve the situation. I fear that far too often though “As individuals begin to focus on the negative and don’t engage in problem solving, this behavior is unacceptable.” turns into ignore problems. Yes, I know that isn’t what the post is suggesting. I am just saying that the easy “solution” that is taken far too often is to focus on the words “negative” and “unacceptable.”

I believe the focus should be on “broken systems are unacceptable.” I would prefer problem solving to address the issues but a culture of ignoring issues and seeing those that don’t as being negative is often the real problem (not the person that points out the problems).

I have discussed this topic in some posts previously: Ignoring Unpleasant Truths is Often Encouraged and Bring Me Problems, and Solutions if You Have Them. Once I am given those problems I agree with you completely. Use them as an opportunity to coach effective problem solving and process improvement strategies to improve the situation. And to develop people.

Often the problem is not the person at all. The organization never adopts fixes. People have learned that they can bang their head against the wall and then never get approval for the fix or they can just whine. Blaming them for choosing whining is not useful. I don’t see how Asking 5 whys you get to blaming the employee, except in very rare cases for not problem solving. It seems to me the issue is almost always going to lay with management: for why people are frustrated with system results and are not problem solving.
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Building on Successful Improvement

Posted on July 13, 2010  Comments (3)

Do ‘Quick Wins’ Hurt Lean Initiatives?

This becomes very difficult, since in many organizations these executives have the strategic attention span equivalent to the life-cycle of a mayfly. When the ‘quick win’ approach is taken, the savings / impact becomes like a drug to the executives. They see the benefit and they want more – NOW. Usually they are able to get this for a while, since they are very interested in the program at the beginning and show their support thought attending events and removing obstacles, and in general there are a lot of opportunities in healthcare for immediate improvement. However, as these opportunities dry up, and the work gets harder, while the executives focus shifts elsewhere, the expectation is to continue to deliver exponential results (a clear sign the truly do not understand the fundamental concepts at play here), and those who are leading the Lean charge, try to appease.

If you don’t change how people think, the quick improvement can end up not helping much. I think quick wins help. But managing how those quick wins happen is important. Creating a maintaining a dialogue that while quick wins are possible, much bigger wins are possible by building on the gains to adopt more critical improvement (and often more complex and requiring more effort) .

As quick wins are achieved try and be sure they are building capacity at the same time. Get people to think in new ways and see improvement opportunities. Also have people learn new tools to attack more problems with. I firmly believe you learn lean best by doing lean. So getting quick successes is great training – better than classroom training. But in doing so, you do want to focus on making sure people understand how the quick fix is a process they can repeat to improve other areas.

And one of the skills you have to practice in the example mentioned in the post mentioned above is managing up. It is tricky but part of what you need to do is coach your bosses to understand lean so that you can expand the adoption of more lean thinking in your organization.

Related: How to Improve – Building a Great Workforce – Flaws in Understanding Psychology Lead to Flawed Management – Leadership

Involve IT Staff in Business Process Improvement

Posted on July 6, 2010  Comments (5)

I started out basically working on management improvement from the start of my career. My makeup (I am never satisfied and figure things should always be better) along with a few traits, experiences and probably even genes made this a natural fit for me. I tend to take the long view and find fire fighting a waste of time. Why fix some symptom, I want to fix the system so that problem doesn’t happen again. My father worked in statistics, engineering and business improvement and as I was growing up I had plenty of experience with process improvement, understanding variation, experimenting, measuring results…

I came into the IT world as I had needs and found the best solution was to write some software to help me accomplish what I wanted to. One thing that better software tools allowed is this type of thing when organizations failed to use technology well, individuals could just do so themselves. Without these tools people had to rely on the organization, but today atrophied IT organizations can often be circumvented. Though the IT organizations often try to avoid this largely by bans (instead of by providing the tools people need), which is not a good sign, in my opinion.

I then spent more and more of my time working with technology but I always retained my focus on improving the management of the organization, with technology playing a supporting role in that effort. That is true even as where I sat changed. And I have become more convinced organizations would be served well by using the information technology staff as business process experts.

At one point I sat in the Office of Secretary of Defense, Quality Management Office where I was able to focus on management improvement and using technology to aid that effort. Then I went to the White House Military Office, Customer Support and Organizational Development office and focused largely on how to using technology to meet the mission. Then I was moved into the White House Military Office, Office of Information Technology Management.

And now I work for the American Society for Engineering Education in the Information Technology department. My role started as partially program management and partially software development and as we have grown and hired more software developers I am now nearly completely a program manager.

I believe technology is a central component of understanding business processes today. But the truth is, many business people don’t have as complete an understanding as I feel they should. Now I believe, most anyone interested in planning their management career needs to develop a facility with technology and specifically how to use software applications to improve performance. You don’t need to be an expert programmer but you need to understand the strengths, weakness, limits of technical solutions. You need to understand how technology can be used (and the risks of options).

At the same time I just don’t think it is likely management everywhere will get a decent understanding of application software development. I also believe that in many cases organizations should do software development in house. This is a issue that certainly can be argued (but I won’t do it here). Basically I don’t think organizations should cram their processes into designs required by off the shelf software. Instead I believe they should design processes optimal for their organization and using off the shelf software often does the opposite (forces the process decisions around what software someone decided to buy). There is plenty of use for off the shelf software that doesn’t force you to make your processes fit into them (and sometimes even if it does that is the business decision that has to be made – I just think far too often organizations look at short term costs and not the overall best solutions for the system).
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The Illusion of Knowledge

Posted on June 28, 2010  Comments (2)

The greatest obstacle to discovery is not ignorance; it is the illusion of knowledge. – Daniel J. Boorstin

Great quote on a topic I discussed in, How We Know What We Know. Dr. Deming included the theory of knowledge as one of the 4 pillars of his management system. When you do not question what you think you know, and conventional thinking, that will keep you from discovery. Now much of conventional wisdom is right, so you often do well accepting whatever most people believe. But to discover you have to seek out new knowledge. And often the process is stopped before you even form the questions, because you think you have knowledge.

How can you understand if your beliefs are in fact knowledge? Test them. Do you have evidence that performance appraisals add value to your organization? Do you have evidence that outsourcing production is beneficial? Do you have evidence that paying CEOs a king’s ransom is helping? What evidence do you have that sales bonuses help the organization? If you don’t have evidence then you have a belief, not knowledge. You can be ignorant and hold a correct belief. Knowledge requires understanding not just correctness. At least that is how I see it, I am not sure what the philosophers say about this.

I also believe you can have evidence that seems to support your belief but still be wrong. You could site examples where sales bonuses seemed to stimulate extra sales that helped your company. But you could be failing to understand the full system and the other factors that 1) helped make the sale and 2) what damage the sales bonuses did that you didn’t consider. Knowledge isn’t easy. But most that are knowledgeable seek to question their beliefs and assumptions.

Related: Bogus Theories, Bad for Business – The Illusion of Understanding – Flaws in Understanding Psychology Lead to Flawed Management – confirmation bias – Pragmatism and Management Knowledge – Optical Illusions and Other Illusions

Certainty is risky. But I am also basically certain about many things (and think that is wise). I don’t have any doubt about how gravity it going to act on what I see in my daily life. I don’t doubt if I don’t take in liquids for days I will suffer and die eventually. I don’t doubt in trying to manage an organization you need to account for the psychology of people.
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Frugal Innovation

Posted on June 9, 2010  Comments (1)

First break all the rules

The device is a masterpiece of simplification. The multiple buttons on conventional ECGs have been reduced to just four. The bulky printer has been replaced by one of those tiny gadgets used in portable ticket machines. The whole thing is small enough to fit into a small backpack and can run on batteries as well as on the mains. This miracle of compression sells for $800, instead of $2,000 for a conventional ECG
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Frugal products need to be tough and easy to use. Nokia’s cheapest mobile handsets come equipped with flashlights (because of frequent power cuts), multiple phone books (because they often have several different users), rubberised key pads and menus in several different languages. Frugal does not mean second-rate.

The article goes on to talk about several methods for how to profit from reducing costs which seem misguided. Frugal innovation is about thinking about meeting the needs of huge numbers of customers that can’t afford conventional solutions. By talking a new look at the situation and attempting to find solutions with significant price constraints new markets can be opened. Often this requires thinking similar to disruptive innovation (products that serve a similar need but less completely than current options).

It also requires the engineering principles of appropriate technology. I highlight this thinking in my Curious Cat Engineering blog and find it very worthwhile. For organizations that have a true mission to serve some purpose using such thinking allows a greatly expanded potential market in which to make a difference in the world.

There is a great quote from Jeff Bezos that captures one reason why organizations so often fail to address frugal innovation: “There are two kinds of companies, those that work to try to charge more and those that work to charge less.” Many organizations are focused on trying to charge more, not less. Another problem is that decision makers often have no life experience with cheap solutions – this doesn’t prevent frugal innovation but it does make them less likely to see the need and to decide to solve those customer needs.

Related: Appropriate Management – Managing Innovation – Process Improvement and Innovation

Finding Great Management Articles, Posts and Resources

Posted on May 26, 2010  Comments (1)

Reddit is a web site that ranks web pages by user votes. The site uses an algorithm that has a very large timeliness factor. So top ranked links move down the list fairly quickly. This results in a nice site to look at to find links others have found interesting recently.

I created a management sub-reddit (a distinct topic-focused-area on the management improvement topics covered in this blog) in 2008. The sub-reddit seems to be about ready to reach a critical mass, so I am making a push to get those interested in management and specifically Deming, lean management, agile software development, six sigma and the things I normally write about on this blog to participate.

If you sign up you can not only vote on the links displayed but add new links (that then will be voted on by others). I think Reddit does a very good job of using social aspects of the internet to provide recommendations that are worthwhile (I have used the site for years).

The management subreddit depends on the community of users to voice their opinions. And I have an interest in having the community form around the management ideas I value (see my other blog posts for what that is). So I encourage you to give it a try and vote on links you enjoy and add new articles, web sites, blog posts… The benefit of this subreddit will grow as we grow the number of participants and if it develops a shared culture of value.

Related: Creating the Management Sub-Reddit (2008) – John Hunter’s social site links (Reddit, Kiva, LinkedIn) – Dell, Reddit and Customer Focus – Curious Cat Management Improvement Library – Management Improvement Blog Carnival

Interruptions Can Severely Damage Performance

Posted on May 12, 2010  Comments (5)

Interruptions can severely degrade your performance. The type of work you are doing impacts the cost greatly. I have spent some of my time programming web applications. When I am doing that interruptions are huge drain on my performance (for me the costs of interruptions while programming are far higher than any other type of work I have done – many times higher). If the interruption disrupts my flow (an interruption needn’t necessarily disrupt it I found, instant messages may not, while speaking to someone else almost surely would – it is a factor of how much of your brain much shift focus I imagine) it can take a huge amount of time to get back into a high performing state. Other work I do can be interrupted with much less impact. I am easily able to slip back into what I was doing.

For me the main cost of interruptions is the time it takes to get back to where I was before the interruption. And the cost is related to how much focus is needed to address what you are working on. Most programming takes a huge amount of focus.

Another big cost of interruptions is the increased risk of mistakes. When people are distracted and then have to go back to a task, and then are distracted, and then go back and… it is more likely they will miss a step or miss noticing some issue than if they can work without distraction. One tool to help cope for distractions that can’t be designed out are checklists.

Paul Graham addressed the importance of managing the system to provide uninterrupted time very well in, Maker’s Schedule, Manager’s Schedule

One reason programmers dislike meetings so much is that they’re on a different type of schedule from other people. Meetings cost them more
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Most powerful people are on the manager’s schedule. It’s the schedule of command. But there’s another way of using time that’s common among people who make things, like programmers and writers. They generally prefer to use time in units of half a day at least. You can’t write or program well in units of an hour. That’s barely enough time to get started.

Paul Graham’s article also shows why managers so often fail to adequately address this issue. Manager, by and large, work in an environment where interruptions are the work. I know, much of my time as a program manager is driven by interruptions and is doable even with many interruption every day.

When managing you need to understand how big a cost interruptions have and design systems appropriate to optimize system performance for all parts of the system. The design of the system needs to take into account the costs and benefits of interruptions for those people working on various processes in the system.

Related: Understanding How to Manage Geeks – Explaining Managers to Programmers – What Motivates Programmers? – Joy in Work – Software Development – Programmers Cartoon – Checklists in Software Development

Ignoring Unpleasant Truths is Often Encouraged

Posted on May 4, 2010  Comments (4)

We can’t Handle the Truth

Unfortunately, the proverbial “kill the messenger” is alive and well in American business. People who speak the truth are often labeled as a non-team player, a disrupter, a trouble maker or the current tag of being “not a good fit”.
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It doesn’t take much to see that the truth can get watered down, altered or hidden entirely inside a company, especially as it moves vertically up the ladder. We may believe, at least in the short term, that this is the best way considering the risk, political correctness and social politeness but at what cost?

What I have seen is truth is not valued much. I’m interested in creating improvement. I thought people would be driven by data and possible strategies to improve. But I have found that just isn’t often true.

So, from my experience, the strategy to improve means not distracting people with many of the truths. Try to fix the system and convince others to fix the system as you can. If some efforts are resisted try to adjust. Sometimes try a different strategy to get improvement. Sometimes I just drop trying to improve that particular thing. There are usually so many options for improvement it isn’t tough to find plenty of others that may be more successfully tackled.

I am someone who find it frustrating that many don’t seem interested in really understanding what the system is producing and where weaknesses exist. But, at least for me, trying to have things work the way I want (where an open exploration of the truth was the focus) isn’t the priority. I have figured it is better to give up on that desire and work within the reality that exists.

I can’t stop myself though from pointing out things far more often than people want. I have no doubt it has annoyed people and gotten me in trouble. But nothing that wasn’t manageable, I just make things a bit more difficult for myself.

One, very visible, sign of people avoiding the truth is if people say very different things in meetings and out of them. It is amazing to me how much less likely anything that could be sen as a complaint or criticism to be voiced in a meeting versus in the hallway. It isn’t so surprising if you understand human psychology (the tendency to blame those who voice a problem). People figure this out and keep their mouth shut. But to their friends they understand they can point out the problems and not be blamed (so in the hallways, you get a much more honest understanding of what people think). This is a bad sign. If your organization trains people to ignore unpleasant truths it makes managing more difficult and results in poorer performance.

Related: The difference between respect and disrespect is not avoiding avoiding criticism – Information Technology and Business Process Support – How to Improve – Find the Root Cause Instead of the Person to Blame – Information Technology and Management – Respect for People, Understanding Psychology – Bring Me Problems, and Solutions if You Have Them – Better Meetings – People are Our Most Important Asset

The Toyota Way – Two Pillars

Posted on April 15, 2010  Comments (8)

Toyota is receiving plenty of criticism now, much of it for good reason. There is also a large amount of psychology involved. From what I have seen, the insurance companies still see better claims history (fewer and lower cost claims) against Toyota than other manufacturers. And there is another strain that seems to enjoy criticizing what has been praised. Toyota does need to improve. But that is improvement of the existing management system, not a need to radically change the management of the company.

I think Toyota, even with the problems, is a fantastic example of a very well managed company. Yet even with all the study of lean manufacturing even basic ideas are overlooked. For example, the two main pillars of the Toyota way are “continuous improvement” and “respect for people.” For all of us, it is valuable to refocusing on core principles. We are too often looking for the next new idea.

This is one way of looking at the pillars of the Toyota Production System, from the Toyota Technical Center – Austrailia

Image of Toyota's pillars of management: respect for people and continuous improvement

Continuous Improvement means that we never perceive current success as our final achievement. We are never satisfied with where we are and always improve our business by putting forth our best ideas and efforts: we are keen to create better alternatives, question our accomplishments and investigate future definitions of success.

There are three building blocks shaping our commitment to Continuous Improvement:

1. Challenge – we form a long term vision, meeting challenges with courage and creativity to realize our dreams;
2. Kaizen – we improve our business operations continuously, always driving for innovation and evolution
3. Genchi Genbutsu – we go to the source to find the facts to make correct decisions, build consensus and achieve goals.

Respect For People refers to our own staff as well as the communities and stakeholder groups that surround us and we are part of. We respect our people and believe the success of our business is created by individual efforts and good teamwork.

Respect For People is translated in:

1. Respect – we respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust
2. Teamwork – we stimulate personal and professional growth, share the opportunities of development and maximize individual and team performance.

These elements combined define our corporate DNA, provide a way of operating that is recognised by each and every Toyota-member around the globe and enables us to sustain our success in the future.

Back to Basics for Toyota by Akio Toyoda

When my grandfather brought Toyota into the auto business in 1937, he created a set of principles that has always guided how we operate. We call it the Toyota Way, and its pillars are “respect for people” and “continuous improvement.” I believe in these core principles. And I am convinced that the only way for Toyota to emerge stronger from this experience is to adhere more closely to them.

While recent events show Toyota obviously needs to improve, that has been true all along (it is just more obvious lately). Some may see this as an indication that these lean manufacturing ideas based on Toyota’s practices are no better than other management practices. I don’t believe this. I feel just as strongly about the value of lean management as ever. I think that the recent events show you that no matter how well an organization in managed there is plenty of room to improve. Toyota never was close to perfection. They have much to improve, but they are still one of the best managed companies in the world.

My comments in 2005:

I think the instances of such failures are just a sign that even Toyota still has quite a bit to improve. I think this announcement likely is a result of common cause variation (it is the natural result of the current system). The natural result (of the system) is not that they have this particular failure, but that this recall is consistent with the % of vehicles that required a recall of this general character. I believe they are getting better over time but they still have a long way to go. With a result based on common cause you want to look at the entire system when designing an improvement plan not at the root cause of the seat belt issue. See Responding to Variation online and the book, Forth Generation Management, by Brian Joiner.

Related: Toyota Stops Lines – Lots of Lines – Akio Toyoda’s Message Shows Real Leadership – Deming Companies – Respect for People Does Not Mean No Criticism

And my comments in 2007:

I don’t agree that they need to rethink their purpose in life (I have a feeling that is taken out of context). They need to maintain and maybe even increase their commitment to their purpose in life.

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Aligning Marketing Vision and Management

Posted on March 23, 2010  Comments (3)

Why do so many companies market one thing and provide something else? I know it might be easier to sell something different than what you offer your customer today. But if you decide to market one vision, why don’t you change your organization to actually offer that?

I suspect this is substantially due to the outsourced nature of large marketing efforts. It makes sense to me that when you outsource your marketing message creation it isn’t tied to your management system and the two silos can pursue their own visions.

I would imagine marketers would claim they “partner” yada yada yada (and sometimes it actual seems to happen, but not often). As a consumer it sure looks to me like companies outsource marketing to ad agencies that come up with marketing plans that are not in harmony with the real company at all. I can understand putting a positive spin on things, but so much marketing is just completely at odds with how the company operates.

Treating a marketing message as something separate from management is a serious problem. When your marking message says one thing and your customers get something else that is a problem. I think the message is often based on what the executives wish the company was (and the outsourced marketers think it should be), but it isn’t the customer experience the management system provides.

If you believe the vision of your marketing then make sure your organization has embraced those principles. I think, often, companies would be wise to follow the vision their marketers came up with. But instead they tell customers to expect one thing and manage the organization to provide something else. I just don’t see how that is sensible.

Related: Marketing in a Lean Company – Packaging Improvement – Customer Service is Important – Confusing Customer Focus – Incredibly Bad Customer Service from Discover Card
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Improving Software Development with Automated Tests

Posted on March 8, 2010  Comments (7)

Automated software testing is a mistake proofing (poka-yoke) solution for software development.

The way automated testing works is that software code is written that tests the software code of the application. This automated testing code test that business rules are correctly being followed by the code in the application.

So for example, a user should not be able to create a new account without entering password. Then you create code that does not allow an account to be created without a password. And you write a test that passes if this is true and fails if it is false.

The best implementation will then not allow deploying code to your production environment until the code has passed all the automated tests. So if a software developer changes the code, the automated tests are all run and if there is an error noted by the automated testing the code cannot be deployed to the production environment. So, in the example above, if somehow the changes made to the application code somehow now let an account be created without a password the test would fail, and the developer would know to fix the problem before putting the code into production.

Thus automated testing mistake proofs the process. Now the mistake proofing is only as good as the test that are added. Software development is complex and if the code has an error (based on the business rules) that is not tested then the code can be deployed to production and affect customers. But it is a huge help in preventing many errors from affecting customers.

It seems pretty obvious but until the widespread adoption of agile software development techniques and frameworks that make it easy to adopt automated testing (like Ruby on Rails) this sensible process improvement tool was used far less often than you would think.

Related: Combinatorial Testing for Software – Metrics and Software Development – Checklists in Software Development – Google testing blog – Hexawise software testing blog

Circle of Influence

Posted on February 9, 2010  Comments (1)

In, The Seven Habits of Highly Effective People, Steven Covey discusses the circle of control, circle of influence and circle of concern. This provides a good framework from which to view issues as you look for improvement strategies.

Within your circle of control you have much more autonomy and have less need to win others over to your plan. However, in practice, even here, you benefit from winning over those who are involved (for example you are their boss).

Our circle of concern covers those things we worry about. Often, we believe because we worry we should find solutions. Problems that fall into this category (but outside our circle of influence) however often prove difficult to tackle. And often people don’t understand why they get frustrated in this case. You can save your energy for more productive activities by seeing some things are outside your influence and avoid wasting your energy on them.

A problem with this, I see in practice however, is that if you are creative many things that people think are beyond their influence are not. With some imagination you can find ways to have influence. Good ideas are powerful. And often that is all that is needed for influence is offering a good idea.

Understanding to what extent an issue is within your control or influence can help a great deal in determining good strategies. Where you have a good chance to influence the process you can focus on strategies that may require much more of your participation to be successfully adopted. As you have less influence such a strategy is likely a poor one.

You should remember, that there is a temporal component to your circle of influence. On some current issue, I may have a very low chance of success for getting the organization to adopt an improvement I think is best. But certain actions can build the understanding that will allow me later to have more influence. This can even be completely separate from how people normally think of circle of influence. By building an organization that moves toward data based decision making and therefore reduces HiPPO (Highest Paid Person’s Opinion) decision making I increase my ability to influence decision making in the future.

Long term thinking is a very powerful, and much under-practiced, strategy. Your influence within an organization is limited today but has great potential to expand, if you act wisely.

Thinking about the extent a current issue falls within your sphere of influence is important it determining the best strategies. But the most valuable insight is to understand how import your sphere of influence is. It determines what strategies you can pursue. And building your sphere of influence should be part of your decision making process.

By taking the long view you can put yourself in good positions to have influence on decisions. There are many ways to do this. My preferred method is fairly boring. Prove yourself to be valuable and you will gain influence. Help people solve their problems. They will be inclined to listen to your ideas. Provide people useful management tools and help them apply them successfully. Help get people, that you know are good, opportunities to succeed. Often this gains you two allies (the person you helped gain the opportunity for and the person that was looking for someone to step in). Work hard and deliver what is important. It isn’t some secret sauce for quick success but if you make those around you successful you grow your circle of influence.

Related: How to Improve – Helping Employees Improve – Operational Excellence – Management Advice Failures – Management Improvement

Understanding Psychology: Slogans – Risky Tools

Posted on February 3, 2010  Comments (2)

De-motivation Poster

Slogans mainly are bad. But like most things they can be used in ways that help or hurt. The main problem is when they substitute for a method to achieve the aim (most of the time). If the slogan serves like a mission statement to focus people on something useful to focus on and it is one minor part of a system to achieve a result it can be fine and even useful.

The issue, to me, is not so much that slogans are innately horrible. It is that, in practice, slogan are used in harmful ways most often (especially outside of sports). They tend to substitute for system improvement. The main work of shifting psychology (we do expect to win now, we do expect a focus on reducing bugs in our code…) after years of creating a different culture has to be in changing methods, priorities, values… Slogans, if done right, can be a way of focusing on the change. Or they can be a real reminder of values. But the slogan only provides value as part of a system confirming the aim they emphasis.

Unfortunately, they also to be used as a way to focus criticisms on individuals. Don’t you know/care that our slogan says zero defects? Can’t you read? Jeez, I even put up a huge poster with our slogan saying zero defects and you can’t even do what it says in this beautiful poster? Well, I will give you a bad performance review now, you can’t say you don’t have that coming after you failed to do what our slogan told you to do.

A slogan by itself has negative value. Take any wonderful slogan and move it somewhere else it will do more harm than good. As a minor part of a system though it can tap into how we people think and act (psychology) and provide value. Be careful though, it is much easier to do harm with slogans than to provide value.

If the slogan emphasizes what is being practiced every day, it can be a helpful reinforcer. If it conflicts with what is done every day it breeds cynicism and shows disrespect for people. This which is a huge problem. And managers have to know it is very easy for people to see the lack of cloths on the emperor slogan. Dilbert does a great job showing the risks of using slogans. Those you are targeting the slogan to are more likely to think like Dilbert than the they are to think like the pointy haired boss (and if you are the one pushing the slogan that means you are well on your way to being the phb – so be careful).

Slogans clearly fall under Deming’s understanding psychology area of management. To use them effectively you need to make sure the value provided, exceeds the cost and risk. I see no better way to evaluate slogans than through the lens of Deming’s system of management, interdependent components of: psychology, systems thinking, understanding variation and theory of knowledge. If the slogan is not supported by they system of management in place it will do harm.

In response to: Are Slogans Always Bad or Can They Inspire?

Related: Deming on eliminating slogans and motivational posters – Eliminate Slogans – Toyota Targets 50% Reduction in Maintenance Waste – posts on psychology – How to Improve – Stop Demotivating Employees

Undercover Boss – Will They Really Change?

Posted on January 11, 2010  Comments (7)

I am skeptical that this reality show (Undercover Boss) will actually do any good but the webclip looks fun. It will premier right after the Super Bowl on CBS.

The concept, if done right, could actually be interesting. But even in that case, I would be skeptical it would do much good. I may be wrong, but I would think we will get a whole bunch of thoughts based on one single data point (no appreciation of a system, no understanding variation, no understanding psychology – just playing to psychology, and no understanding of how we form beliefs). My guess is the show will largely be having fun with making bosses actually do physical and customer service work. And probably the bosses trying to appeal to the common working man with admiration about how hard this work is.

They then will go back to their overinflated salaries and continue to limit the rewards for those they spoke so highly of while TV cameras rolled, and in general practice disrespect for people not respect for people. If it actually gets a few MBAs to stop managing by spreadsheet and start actually managing with an understanding the business systems they manage that would be great.

Going to the Gemba, where the rubber meets the road is great. But unless the management systems are in place to improve it is more like a site-seeing trip than a management tool. More like those people that go to a working ranch for a vacation (where they work on a ranch) to experience something new before returning to their normal life.

via: Dan McCarthy, How to be an “Undercover Leader”. He is more hopeful than I am about the show.

Related: Management Advice Failures – How to Improve – The CEO is Only One Person – Management Improvement

Habits

Posted on December 10, 2009  Comments (3)

Some things about what people do also have their roots in psychology. Deming had an understanding of psychology as one of 4 areas in his system of management. A huge factor in what people do is based on what they are used to doing – habits. It is often difficult for people to change – not necessarily because they don’t want to, or the alternative is more difficult or they think it is unwise. It is difficult just because they are in the habit of doing something else.

William James explored the power of habits – The Laws of Habit

Often I favor convincing people why certain actions are best and then they can chose to take those actions. But you can also get people in the habit of the actions you seek to encourage and then let the power of habit work. For health, I think this, often is a good strategy.

But it also is done in many ways that culture is established in an organization. You enforce that meetings must have an agenda. Then it becomes a habit. You enforce that decisions are based on data. Then it becomes a habit. You enforce that the work area must be clean. Then it becomes a habit.

Two ways you can notice that things are becoming a habit:

1) when people bring “work” ideas to their personal life – Visual Management and Self-Reliance, Laundry Kaizen.

2) you find yourself in a new environment where the habit is not practiced and you are uncomfortable. You go to a new organization and 5s is not being practiced and you feel uncomfortable. You go to meetings without agendas and they seem to wander and waste time and you can’t imagine why they don’t use an agenda and follow it.

When the ideas have reached the level of habits you have changed. I think with health issues this is the understanding people should have. How do I change things so people adopt good habits. Then you have to find strategies that effectively move people to adopt those habits.

The strategy is based on the idea that adopting the habit can be easier than convincing someone to change with the power of pure logic. But it is also important as habit are adopted to explain the reasoning on why the habits are important. By understanding the role those habits play in successful health, for example, a person knows how to adapt to changing circumstances. And they know what are the key factors that should remain as methods are adapted over time. Explaining why 5s is valuable is important even beyond the habit.

If you get someone to behave in a certain way to get some incentive you rarely get the change in psychology. They don’t adopt a new habit. They do something to get what you offer. They will continue to do it if the incentive is offered. If not, they stop. Does Rewarding Children Backfire?

In response to: In search of metrics

Related: Flaws in Understanding Psychology Lead to Flawed Management – Respect for People, Understanding Psychology – Information Technology and Business Process Support – Punished by Rewards? A Conversation with Alfie Kohn

The Biggest Manufacturing Countries in 2008 with Historical Data

Posted on December 7, 2009  Comments (4)

Once again the USA was the leading country in manufacturing for 2008. And once again China grew their manufacturing output amazingly. In a change with recent trends Japan grew output significantly. Of course, the 2009 data is going to show the impact of a very severe worldwide recession.

Chart showing percent of output by top manufacturing countries from 1990 to 2008Chart showing the percentage output of top manufacturing countries from 1990-2008 by Curious Cat Management Blog, Creative Commons Attribution.

The first chart shows the USA’s share of the manufacturing output, of the countries that manufactured over $185 billion in 2008, at 28.1% in 1990, 27.7% in 1995, 32% in 2000, 28% in 2005, 28% in 2006, 26% in 2007 and 24% in 2008. China’s share has grown from 4% in 1990, 6% in 1995, 10% in 2000, 13% in 2005, 14% in 2006, 16% in 2007 to 18% in 2008. Japan’s share has fallen from 22% in 1990 to 14% in 2008. The USA has about 4.5% of the world population, China about 20%. See Curious Cat Investment blog post” Data on the Largest Manufacturing Countries in 2008.

Even with just this data, it is obvious the belief in a decades long steep decline in USA manufacturing is not in evidence. And, in fact the USA’s output has grown substantially over this period. It has just grown more slowly than that of China (as has every other country), and so while output in the USA has grown the percentage with China has shrunk. The percentage of manufacturing output by the USA (excluding output from China) was 29.3% in 1990 and 29.6% in 2008. The second chart shows manufacturing output over time.

charts showing the top manufacturing countries output from 1990-2008Chart showing the output of the top manufacturing countries from 1990-2008 by Curious Cat Management Blog, Creative Commons Attribution.

The 2008 China data is not provided for manufacturing alone (the latest UN Data, for global manufacturing, in billions of current USA dollars). The percentage of manufacturing (to manufacturing, mining and utilities) was 78% for 2005-2007 (I used 78% of the manufacturing, mining and utilities figure provided in the 2008 data). There is a good chance this overstates China manufacturing output in 2008 (due to very high commodity prices in 2008).

Hopefully these charts provide some evidence of what is really going on with global manufacturing and counteracts the hype, to some extent. Global economic data is not perfect. These figures are an attempt to capture the economic reality in the world but they are not a perfect proxy. This data is shown in 2008 USA dollars which is good in the sense that it shows all countries in the same light and we can compare the 1995 USA figure to 2005 without worrying about inflation. However foreign exchange fluctuations over time can show a country, for example, having a decline in manufacturing output in some year when in fact the output increased (just the decline against the USA dollar that year results in the data showing a decrease – which is accurate when measured in terms of USA dollars).

If the dollar declines substantially between when the 2008 data was calculated and the 2009 data is calculated that will give result in the data showing a substantial increase in those countries that had a currency strengthen against the USA dollar. At this time the Chinese Renminbi has not strengthened while most other currencies have – the Chinese government is retaining a peg to a specific exchange rate.

Korea (1.8% in 1990, 3% in 2008), Mexico (1.7% to 2.6%) and India (1.4% to 2.5%) were the only countries to increase their percentage of manufacturing output (other than China, of course, which grew from 3.9% to 18.5%).

Related: posts on manufacturing – Global Manufacturing Data 2007 – Global Manufacturing Employment Data – 1979 to 2007 – Top 10 Manufacturing Countries 2006 – Top 10 Manufacturing Countries 2005 – lean manufacturing resources

Making Better Decisions

Posted on November 24, 2009  Comments (3)

I think the most important thing you can do to make better decisions is to learn from the decisions you make. It sounds easy, but very few people do so effectively.

The best strategy to learn from decisions is to:

An Introduction to Deming’s Management Ideas by Peter Scholtes (webcast)

Posted on September 14, 2009  Comments (1)

An Introduction to Deming’s Management Teaching and Philosophy by Peter Scholtes – webcast from the Annual W. Edwards Deming Institute conference in Madison, Wisconsin, November 9th, 2008. My previous post on this speech: 6 Leadership Competencies.

Next month, the Annual Deming Institute conference will be held at Purdue on Oct 10th, 2009.

Related: Peter Scholtes’ Life – Curious Cat’s Deming on Management – The Leader’s Handbook – Performance without Appraisal

Unfortunately I cannot actually use the website to watch more than 5 minutes because the site fails to support linux operating system with their solution for longer videos. Google will only allow 10 minute videos without special permission – YouTube has not replied to my request for over 6 months. Update: Twitvid let me upload the whole video.

Dr. Deming Webcast on the 5 Deadly Diseases

Posted on August 26, 2009  Comments (4)

The W. Edwards Deming Institute has posted Dr. Deming’s 1984 video on the 5 deadly diseases of western management.

  • Lack of constancy of purpose
  • Emphasis on short term profits – “creative” accounting, focus on quarterly profits
  • Annual Performance Appraisals – management by objective, management by fear
  • Mobility of management – [see Toyota for a great example of a company that operates on different principles - where the leadership has been with Toyota for decades]
  • Running a company on visible figures alone – many important factors are “unknown and unknowable.”

Dr. Deming added 2 diseases to reach his famous 7 deadly diseases: excessive medical care costs and excessive legal damage awards swelled by lawyers working on contingency fees.

Personally I believe all 7 of those diseases are still prevalent and causing damage. I do think some progress has been made on longer term thinking but far too many organizations still are extremely short term focused. And I would add two new deadly diseases of management: excessive executive compensation and an outdated intellectual property system.

Related: Deming Companies – Purpose of an Organization – Continual Improvement – Creating Jobs – New Management Truths Sometimes Started as Heresies

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