Category Archives: Systems thinking

Dr. Russell Ackoff Webcast on Systems Thinking

Dr. Ackoff is one of two management thinkers that any manager, that is serious about improving management results in their organization, should study (the other is Dr. Deming). There are plenty of others that are also great resources. From part 2 of his talk: “Why-questions, about objects called systems, cannot be answered by the use of analysis… The product of explanation is understanding… The product of analysis is how things work, never why they work the way they do. Explanations … Continue reading →

Posted in Creativity, Deming, Management, quote, Science, Systems thinking, webcast | Tagged , , , , , | 4 Comments

Joel Spolsky Webcast on Creating Social Web Resources

Joel Spolsky webcast on creating Stack Overflow (with the goal of providing answers to professional programmers) using ideas from anthropology. Once again he provides great information. This is particularly interesting for software development but also just a good presentation for understanding the importance of customer focus and systems thinking. What they focused on and did: Voting – Reddit… (see our management Reddit) Tags – lets you see what you want and to block tags you don’t want to see. Editing … Continue reading →

Posted in Customer focus, IT, Software Development, Systems thinking, webcast | Tagged , , , , , | 2 Comments

Why Congress Won’t Investigate Wall Street

Why Congress Won’t Investigate Wall Street The famous Pecora Commission of 1933 and 1934 was one of the most successful congressional investigations of all time, an instance when oversight worked exactly as it should. The subject was the massively corrupt investment practices of the 1920s. In the course of its investigation, the Senate Banking Committee, which brought on as its counsel a former New York assistant district attorney named Ferdinand Pecora, heard testimony from the lords of finance that cemented … Continue reading →

Posted in Economics, Systems thinking | Tagged , , , , | 2 Comments

Why Setting Goals can Backfire

Dr. Deming long ago stated in his 14 obligations of management: “Eliminate numerical goals, numerical quotas and management by objectives.” I think he was right then, and is right now. A goal can help set the scope of the effort. If you are aiming for 2% improvement different strategies may make sense than if you are aiming at 50% improvement. But that type of use is rare. The problem with goals is what actually happens in organizations. They create serious … Continue reading →

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Leadership

Leadership is the act of making others effective in achieving an aim. Leadership is not about being great yourself. Leadership does involve more than making others effective. Leaders need to know what needs to be done, and then make others effective, based on that knowledge. As Dr. Deming said about any situation: It is not enough to do your best; you must know what to do, and then do your best. Leadership is not about getting a good performance appraisal. … Continue reading →

Posted in Deming, Management, Systems thinking | Tagged , , , , | 4 Comments

Building a Great Workforce

How P&G Finds and Keeps a Prized Workforce by Roger O. Crockett “We actually recruit for values,” says Chief Operating Officer Robert McDonald. “If you are not inspired to improve lives, this isn’t the company you want to work for.” … The P&G strategy starts on college campuses. The Cincinnati company dispatches line managers rather than human resource staffers to do much of its recruiting. … For the few who get hired, their work life becomes a career-long development process. … Continue reading →

Posted in Career, Customer focus, Deming, Innovation, Lean thinking, Management, Management Articles, Psychology, Systems thinking | Tagged , , , , , , | 1 Comment

Build Your Business Slowly and Without Huge Cash Requirements

Get Rich Slow by Josh Quittner At no other time in recent history has it been easier or cheaper to start a new kind of company… These are Web-based businesses that cost almost nothing to get off the ground … The term ramen profitable was coined by Paul Graham, a Silicon Valley start-up investor, essayist and muse to LILO entrepreneurs. It means that your start-up is self-sustaining and can eke out enough profit to keep you alive on instant noodles … Continue reading →

Posted in Career, Competition, Creativity, Innovation, Investing, IT, Management, Systems thinking | Tagged , , , , , , ,

Jeff Bezos Spends a Week Working in Amazon’s Kentucky Distribution Center

Photo of Jeff Bezos during the 2005 O’Reilly Emerging Technology Conference by James Duncan. Jeff Bezos, Amazon CEO, is working for a week in Amazon’s Kentucky distribution center. I hope, and based on his past, I believe, that he is going to the gemba (Genchi Genbutsu) to learn more about how Amazon operates. That would be great. He worked on wall street and understands the fake constraints they attempt to put companies (you must focus on short term profits, you … Continue reading →

Posted in Books, Creativity, Customer focus, Deming, Lean thinking, Management, Process improvement, Psychology, quote, Respect, Systems thinking | Tagged , , , , , | 5 Comments

NUMMI, and GM’s Failure to Manage Effectively

Gipsie Ranney recently sent me an article on her thoughts on NUMMI and the current problems with the Big Three car makers to post to the Curious Cat Management Improvement Library. NUMMI is the plant that Toyota and General Motors run together as a joint venture. The article is excellent. The answer to a question asked by someone else on the tour was stunning to me. The person asked what kind of computerized inventory system they had at NUMMI. The … Continue reading →

Posted in Deming, Lean thinking, Management, Management Articles, Manufacturing, quote, Respect, Systems thinking, Toyota Production System (TPS) | Tagged , , , , , , , , | 2 Comments

Zara Thrives by Ignoring Conventional Wisdom

Zara Thrives by Breaking All the Rules Many U.S. apparel retailers are choking on slow-moving inventories as consumers hold back on spending. But Spain’s Inditex, whose Zara chain pioneered cheap chic, is zipping ahead. The $13.8 billion company, which is closing in on Gap (GPS) for the title of world’s biggest clothing retailer, has nearly quadrupled sales, profits, and locations since 2000 … Wages are higher at Inditex—its factory workers in Spain make an average of $1,650 a month, vs. … Continue reading →

Posted in Lean thinking, Management, Systems thinking | Tagged , , ,

Hire People You Can Trust to Do Their Job

How great companies turn crisis into opportunity The right people don’t need to be managed. The moment you feel the need to tightly manage someone, you’ve made a hiring mistake. The right people don’t think they have a job: They have responsibilities. If I’m a climber, my job is not [just] to belay. My responsibility is that if we get in trouble, I don’t let my partner down. The right people do what they say they will do, which means … Continue reading →

Posted in Deming, Management, Management Articles, Psychology, Respect, Systems thinking | Tagged , , , , , | 4 Comments

Checklists Save Lives

Checklists are a simple quality tool that have been used widely for decades. Pilots use them, without fail, to save lives. Some surgeons have been using them and the evidence is mounting that checklists can save many more lives if more in health care use them. Studies Show Surgeons Could Save Lives, $20B by Using Checklists Eight hospitals reduced the number of deaths from surgery by more than 40% by using a checklist that helps doctors and nurses avoid errors, … Continue reading →

Posted in Deming, Health care, Management, Process improvement, Psychology, Quality tools, Systems thinking | Tagged , , , , , , , | 3 Comments

Cutting Hours Instead of People

When financial and economic realities reach the point that labor costs must be cut I believe a good option to consider is cutting hours (and pay) instead of people. Continue reading →

Posted in Career, Creativity, Deming, Innovation, Management, Respect, Systems thinking | Tagged , , | 2 Comments

Managing Passionate Employees

Passion vs. Productive There are actually few organizations that can support passionate employees – even if they say they want them. That’s because the original industrial revolution was designed to support productivity. Productivity means you produce. That’s how you’re measured. Passion is difficult to quantify … Managers want passionate employees, but don’t always know how to manage them. Passionate employees question things, probe and push. Who’s got the time to deal with that? Productive employees get things done. No questions … Continue reading →

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Looting: Bankruptcy for Profit

Looting: The Economic Underworld of Bankruptcy for Profit by George Akerlof, University of California, Berkeley; National Bureau of Economic Research (NBER) and Paul Romer, Stanford Graduate School of Business; National Bureau of Economic Research (NBER). George Akerlof was awarded the 2001 Nobel prize for economics. This is the abstract to their 1994 paper: During the 1980s, a number of unusual financial crises occurred. In Chile, for example, the financial sector collapsed, leaving the government with responsibility for extensive foreign debts. … Continue reading →

Posted in Deming, Economics, Management, Systems thinking | Tagged , , , | 7 Comments

Some Firms Cut Costs Without Resorting to Layoffs

Some Firms Cut Costs Without Resorting to Layoffs Hypertherm Inc. has never laid off a permanent employee in its 40-year history. A 20% downturn in sales in recent months led the closely held maker of metal-cutting equipment to eliminate overtime, cut temporary staff and delay a facility expansion, says Chief Executive Dick Couch. Managers are transferring employees to busy segments from those with less work. The Hanover, N.H., company also may bring some outsourced manufacturing in-house to keep its 1,100 … Continue reading →

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