the company is deeply-rooted in a sensibility and trying to build the company with a conscience primarily, I think, defined by the fact that we did something in 1989 and 1990 that had never been done before, which was creating a program in which we had comprehensive health insurance for all employees including part-timers and created a mechanism for equity in the form of stock options
What about those that believe you should cut spending on employees, since health care, for example, is so expensive?
My management philosophy is guided by the idea of seeking methods that will be most effective.* There are many ways to improve. Good management systems are about seeking systemic adoption of the most effective solutions. What this amounts to is learning about the ideas of Deming, Ackoff, Ohno, Chirstensen, Scholtes, Womack… and then adopting those ideas. In doing so learning about management tools and concepts as they are applied to your work.
Here is a simple example. Continue reading
In April of 2005 I wrote: 10 stocks for 10 years. At that time I also created a fund through Marketocracy. Thus far the portfolio is up 15.8% annually (versus 15.3% for the S&P 500) – see more below…
I have made minor changes to the fund during the year (less than 4% turnover). As I mentioned in June I would buy Tesco, but Marketocracy does not support it. Google is still doing quite well, up 122% since inception. The second largest gain is for Petro China, up 106% and Toyota is up 67%. Dell is the worst performer down 25% followed by Yahoo down 16%. I am comfortable with the original 10 stocks and don’t have any significant changes I would make to the portfolio now. For the small change I would make now see more…
The Curious Cat Management Improvement Blog is a 2006 Weblog Awards finalist in the Best Business Blog category. 10 blogs from each category are selected as finalists. Voting opened last week and continues through December 15th.
For those visiting from the award site you may want to take a look at our popular posts including: Stop Demotivating Employees – New Rules for Management? No! – Toyota IT Overview – Eliminate Slogans – Quality and Innovation – Manufacturing Jobs data USA and China
And some others: Distort the System – Improving the 401(k) System – Righter Performance Appraisal – More on Obscene CEO Pay – Housing and the Economy – Usability Failures
There have been a number of great post recently about management improvement:
- Amazon’s Long Public Haul by Kevin Meyer – “Amazon has now been around a while and has a loyal following. Their culture is apparently deep, at least for the most part. But that does not guarantee long-term success.”
- Jeff Bezos Risky Bet Isn’t New by Peter Abilla – “Guess what everybody — Bezos’ Risky Bet isn’t new. Amazon has been doing that for years, but they’re just now opening services up to the masses.”
- How to Put Kaizen into Your Culture by Jon Miller – “The reason we can make our living is because we serve our customers… Improvement is everyone’s job… The current condition is unacceptable, no matter how good we are.”
- Choices = Headaches by Joel Spolsky – “Inevitably, you are going to think of a long list of intelligent, defensible reasons why each of these options is absolutely, positively essential. Don’t bother. I know.”
- Two podcast interviews by Mark Graban: Jim Womack on lean in China (podcast) and Norman Bodek on Educating Leadership
- Using Quality Tools to Identify Root Cause by Jay Marino – “One of the steps of the PDSA cycle is “identifying root cause” and includes several quality tools to help identify the “culprits” in a system including: Cause and Effect Diagram; Relations Diagram; and the 5 Whys.”
Don MacAskill writes of his great service from Ritz-Carlton and horrible service from Home Depot. Neither result is surprising, see related posts below. On the Ritz:
Ritz-Carlton’s motto is “We are ladies and gentlemen serving ladies and gentlemen.” And they actually turn those words into reality. They are not platitudes with no action. The system is guided toward achieving that vision.
Related: Customer Focus at the Ritz – Effective Leadership Strategies are Driven by Total Quality Management (TQM) Principles – 1999 Ritz Baldrige Application Summary – Not Lean Retailing – More on Obscene CEO Pay
From the Lean blog another valuable podcast: Lean in China with Jim Womack. He is not impressed with the state of lean in China yet. Lean Enterprise China has been established to aid the adoption of the best management practices in China.
Corporate profile: the Toyota Production System by Sarah Perrin:
“You produce a new product and it can be replicated by a competitor almost immediately, so you have to be always innovating. We are very dealer focused. We have to provide not only a competitive service pricewise to dealers, but also be competitive in terms of the length of time it takes to deal with things. We have to be moving and changing all the time and never sit still.”
Applying the TPS to non-production areas of the business isn’t easy, of course. “It’s a challenge converting these best practices in Toyota that have been developed for production and moving them down into sales and marketing, which is what we do,” says Betteley.
It is nice to see this article in Accountancy Age. One more nudge toward lean accounting.
Related TPS non-manufacturing posts: Toyota IT Overview – Lean Retailing – Marketing in a Lean Company – More on Non-Auto Toyota – Japan Airlines using Toyota Production System Principles – Keeping score with lean accounting