Category Archives: Deming

Interview of Bill Hunter, Brian Joiner and Peter Scholtes on Better Management Practices

Interview with Bill Hunter, Brian Joiner and Peter Scholtes (listen to the interview) on a Public Affair, National Public Radio about improving management practices in the USA. The interview is over 30 years old now but the better management ideas are as true today as they were then.

Sadly we have not improved management practices based on these ideas very much. There have been improvements in how many organizations are managed but those improvements are so slow that fundamental problems remain serious problems decades later.

Brian Joiner

Brian Joiner (quotes from the interview):

You cannot really produce quality in any cost competitive way by relying on inspection to achieve quality. The only way you can really achieve quality in the modern sense is by improving all the processes that go to deliver that product or service. And that requires that you study those processes. And when you study them you very often need to collect and analyze data to find what are the causes of problems.

[We place] a great deal of emphasis on identifying the causes of problems rather than shooting from the hip and jumping to solutions before you really know what the problems are…
Many many dollars, many many hours of time are wasted on “solutions” that are not really solutions.

Bill Hunter:

The problem that employees at Motor Equipment were aware of at the very beginning of this whole business, and for a long time previous – I mean years, was that the city of Madison did not have a preventative maintenance program for vehicles because a mayor said, many years ago said “we fix trucks and other things when they break and then we will save money because we don’t be fiddling with them before.

Well the people out there realized the city was just losing money with this policy so they gathered data, they put it together, they put together a solid case that nobody could argue with that the city should have a preventative maintenance program.

They were able to put together a presentation to the mayor and city council people making their case that there should be a preventative maintenance program. The mayor and the city council people there listened to this presentation of the data and they conclusion was a good proposal.

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How to Lead From Any Level In the Organization

This was originally published on the Aileron blog; since it has been deleted from the blog I have reposted it here.

In looking to create great results, we have to balance getting results in the near-term with building our organization’s capability to maximize results in the long-term.

But what are the methods and ways in which we can help encourage this kind of continual improvement within our organization? And how can anyone, no matter their role or authority level, create value and shape their influence so that the company can amplify positive results?

To answer these questions, we asked John Hunter, a Senior Facilitator for the W. Edwards Deming Institute. John has also written a book called Management Matters: Building Enterprise Capability, a book that provides an overview for using a systems view of management.

The Art of Influence in an Organization

John says that in Steven Covey’s book, The Seven Habits of Highly Effective People, there are three concepts brought up: the circle of control, the circle of influence, and the circle of concern. When it comes to leading and influencing other people in an organization, these concepts provide an effective framework to look at how you can influence decisions over time.

The circle of concern is what we are concerned with at work. “Our circle of concern covers those things we worry about. Often, we believe because we worry, that we should find solutions,” explains John. For example, an employee who regularly has face-to-face interaction with customers might have a sphere of concern that is centered on pleasing customers.

In your circle of control, you have much more autonomy—and much more perceived control. “The idea is that this domain is totally within your control, you don’t have to worry about convincing other people,” he says.

“This is a useful construct, but it is often much more complex than it sounds. What it really comes down to is almost everything is in your sphere of influence. When you’re talking about organizations—which are made up of people—nearly everything is about sphere of influence. Even the stuff that’s called circle of control is largely influence,” says John.

Recognize that you can change (and grow) your sphere of influence over time

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Peter Scholtes on Teams and Viewing the Organization as a System

In this presentation Peter Scholtes provides an explanation of teams within the context of understanding an organization of a system:

We will not improve our ability to achieve our purpose by empowering people or holding people accountable. I know that those are fashionable words but what they have in common that I think is the wrong approach is that they still are focused on the people and not on the systems and processes. I’m sure that will trigger quite a bit of conversation and perhaps some questions.

He is right, though those are difficult old thoughts to break from for many. He does a good job of explaining how to seek better methods to achieve more success in this presentation and in the Leader’s Handbook. Following the links in the quote above will also provide more details on Peter’s thoughts.

Peter includes a description of the creation of the “organization chart” (which Peter calls “train wreck management”) that we are all familiar with today; it was created in the Whistler report on a Western Railroad accident in 1841.

Almost a direct quote from the Whistler report: “so when something goes wrong we know who was derelict in his duty.” The premise behind the traditional organizational chart is that systems are ok (if we indeed recognize that there are such things as systems) things are ok if everyone would do his or her job. The cause of problems is dereliction of duty.

Peter then provides an image of W. Edwards Deming’s organization as a system diagram which provides a different way to view organizations.

In the old way of viewing organizations you look for culprits, in this way of viewing the organization you look for inadequacies in the system. In the old way of viewing the organization when you ask “whom should we please” the answer is your boss. In this way of viewing an organization when you ask “whom should we please” the answer is our customers.

This is an absolutely great presentation: I highly recommend it (as I highly recommend Peter’s book: The Leader’s Handbook).

Without understanding a systems view of an organization you can’t understand whats at the heart of the quality movement and therefore everything else you do, management interventions, ways of relating to people, will reflect more likely the old philosophy rather than the new one.

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Lead by Building Organizational Capability

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

2. Help people solve their problems.

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

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

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

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

Hopefully you will find the entire post worthwhile.

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

Culture Change Requires That Leaders Change Their Behavior

This month The ASQ Influential Voices are reacting to Luciana Paulise’s post:
Facing Cultural Barriers by Leaders to Strengthen a Culture of Quality.

As Luciana stated:

leaders need to change their behavior first if they want to change the entire company culture

W. Edwards Deming wrote in The New Economics:

The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge.

The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people. Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to.

I believe for significant changes to culture transformation of the individual is required. And I have seen this take place many times. Real gains can be made by applying a few tools and concepts effectively; without transformation. But changes to the culture come from significant changes in how people think.

In a previous post I wrote about What to Do To Create a Continual Improvement Culture

In order to create a culture that enhances your effort to continually improve you must crate systems that move things in that direction. Part of that system will be the continual assessment of how your organization is falling short of your desired culture. This requires honest assessment of the current state. And it requires those in leadership to design systems to get a clear picture on what is really happening in their organization.

Related: Create a Culture Seeking Continual Improvement or Use Band-Aids?Transforming a Management System – A Case Study From the Madison Wisconsin Police DepartmentChange is not Necessarily Improvement

Change Management: Create a Culture Seeking Continual Improvement or Use Band-Aids?

Successfully shepherding change within an organization is often a challenge. Often change management strategies are mainly about how to cope with a toxic culture but exclude the option of fixing the toxic culture. Why not address the root causes instead of trying band-aids?

The most effective strategy is to build an organizational culture into one that promotes continual improvement. A continual improvement culture is one that is constantly changing to improve (grounded in long term principles: respect for people, experiment, iterate quickly, etc.).

You can try to push change in an ad hoc basis by adopting some strategies to create a similar feeling about the individual change effort. But that isn’t as effective as establishing them in the culture are. Strategies such as: going the gemba, pdsa, build trust via respect for people…

These tools and concepts build trust within the organization. The do that by showing people are respected and that the change effort isn’t just another in the long line of wasted effort for ineffectual change. The first part can be addressed, normally the second part can’t be addressed effectively. Often that is at the core of the issue with why the change effort isn’t working. It is a bad solutions. It hasn’t been tested on a small scale. It hasn’t been iterated numerous times to take a seed of an idea and grow it into a proven and effective change that will be successful. If it had been, many people would be clamoring for the improvement (not everyone, true, but enough people).

But still you can use strategies to cope with lack of trust in your intentions with the change and lack of trust in the effectiveness and fear of change. Some of those are included in the links below. But mainly my strategy is based on focusing on building the proper culture for long term excellence and the change management strategies are just short term coping mechanisms to help deal with the initial challenges. Using those strategies as a long term solution for dealing with change in a toxic culture isn’t a very sensible way to manage.

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

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

cover image of the New Quality Leadership Workbook for Police

The New Quality Leadership Workbook for Police

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

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

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

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

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

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

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

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

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A Strong Management System Handles the Transition of Leaders With Ease

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

Leadership While Viewing the Organization as a System

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

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

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

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

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

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

Remembering Peter Scholtes

Guest Post by Fazel Hayati

Fall always reminds me of my friend Peter Scholtes. It was during 2008 annual Deming Institute fall conference in Madison, Wisconsin when Peter said farewell to his friends and colleagues. He gave a keynote titled Deming 101 (that full speech can be watched online). Although inactive for many years and managing numerous health challenges, he was sharp, witty and very happy to be talking about Dr. Deming, systems thinking, problems with performance appraisal, talking to his old friends and reminiscing. Anticipating this event had really energized him. He told me numerous times he was very grateful for the opportunity. He passed away in July 11, 2009.

Peter Scholtes, 2008

Peter Scholtes at Deming Conference in Madison, Wisconsin, 2008

Peter wrote two seminal books, both remain relevant years after their publication. The Team Handbook remains one of the best in developing teams and it has helped many organizations to improve quality and productivity through team building. The Leader’s Handbook is one of the best elaborations on Dr. Deming’s System of Profound Knowledge.

Peter articulated Dr. Deming’s teaching and incorporated his own experience in six competencies for leaders:

  1. The ability to think in terms of systems and knowing how to lead systems,
  2. the ability to understand the variability of work in planning and problem solving,
  3. understanding how we learn, develop, and improve; leading true learning and improvement,
  4. understanding people and why they behave as they do,
  5. understanding the interaction and interdependence between systems, variability, learning, and human behavior; knowing how each affects others (Figure 2-16, Page 44, Leader’s Handbook),
  6. giving vision, meaning, direction, and focus to the organization.

No one has done a better job of operationalizing Dr. Deming’s teachings.

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

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

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

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

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

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

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

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