Category Archives: Systems thinking

How Private Equity Strangled Mervyns

Posted on December 12, 2008 by John Hunter

I do not like the actions of many in “private equity.” I am a big fan of capitalism. I just object to those that unjustly take from the other stakeholders involved. It is not the specific facts of this case, that I see as important, but the thinking behind these types of actions. Which specific actions are to blame for this bankruptcy is not my point. I detest that financial gimmicks by “private capital” that ruin companies. Those gimmicks that … Continue reading →

Posted in Deming, Management, Respect, Systems thinking | Tagged , , , ,

Information Technology and Business Process Support

Posted on December 3, 2008 by John Hunter

I moved from management improvement work into information technology work (where I continue to practice management improvement). Many IT practices follow quality management guidelines well (agile software development for one). I have found it far easier to design and provide software solutions than convince people to change their processes directly. I found it funny that as I delivered new IT solutions, in which was embedded a redesign of the process, those changes were often accepted without any significant debate. But … Continue reading →

Posted in IT, Management, Process improvement, Quality tools, quote, Software Development, Systems thinking | Tagged , , , , , , , | 6 Comments

Embrace Diversity, Erase Uniformity

Posted on December 1, 2008 by John Hunter

Guest Post by Jurgen Appelo, author of the Managing Software Development blog. Five years ago, when I started working for my current employer, the entire organization (about 30 people) consisted only of 20-something white straight single males. The atmosphere was what you would expect from such an environment: conversations on football/soccer, lewd jokes, the smell of beer, and trash in every corner. In short, the perfect place to work, if you were a 20-something white straight single male. Then the … Continue reading →

Posted in Management, Science, Software Development, Systems thinking | Tagged | 1 Comment

What’s the Value of a Big Bonus?

Posted on November 21, 2008 by John Hunter

What’s the Value of a Big Bonus? by Dan Ariely To look at this question, three colleagues and I conducted an experiment. We presented 87 participants with an array of tasks that demanded attention, memory, concentration and creativity. We asked them, for instance, to fit pieces of metal puzzle into a plastic frame, to play a memory game that required them to reproduce a string of numbers and to throw tennis balls at a target. We promised them payment if … Continue reading →

Posted in Data, Deming, Management, Psychology, Respect, Systems thinking | Tagged , , , , ,

CMMI and Agile Development

Posted on November 19, 2008 by John Hunter

CMMI or Agile: Why Not Embrace Both! is a new report that is worth reading. All too often, CMMI has been applied rather than implemented. The standards-centric application of CMMI has contributed to some spectacular failures and losses of time and money. The key difference between applying and implementing CMMI is that applying usually appears as a superimposition (or overlay) of model practices onto existing activities with an expectation of producing the example work products found in the model, rather … Continue reading →

Posted in Process improvement, Software Development, Systems thinking | Tagged , , | 1 Comment

6 Leadership Competencies

Posted on November 13, 2008 by John Hunter

At the recent Annual W. Edwards Deming Institute Annual conference (this year held in Madison, Wisconsin) Peter Scholtes gave an excellent speech on the 6 Leadership Competencies from his book: The Leader’s Handbook. Those competencies are: The ability to think in terms of systems, and knowing how to lead systems. The ability to understand the variability of work in planning an problem solving Understanding how we learn, develop and improve. Leading true learning and improvement. Understanding people and why they … Continue reading →

Posted in Deming, Management, Psychology, Systems thinking | Tagged , , , , , , | 8 Comments

Tilting at Ludicrous CEO Pay 2008

Posted on November 10, 2008 by John Hunter

I continue to tilt at the robber barron CEO pay packages (2007 post on CEO pay abuses). 2007 pay rank Company CEO Pay 5 Year Pay CEO % of 2007 Earnings 1 Apple Steve Jobs $646,600,000 $650,170,000 18.5% 2 Occidental Petroleum Ray Irani $321,640,000 $509,530,000 5.9% 3 IAC Barry Diller $295,140,000 $512,270,000 Company Lost Money 4 Fidelity National Financial William Folley $179,560,000 NA 138.4% 5 Yahoo! Terry Semel $174,200,000 $432,490,000 26.4% 7 Countrywide Financial Angelo Mozilo $141,980,000 $295,730,000 Company Lost … Continue reading →

Posted in Data, Economics, Management, Respect, Systems thinking | Tagged , , , , , , , | 5 Comments

Righter Incentivization

Posted on November 5, 2008 by John Hunter

Incentive schemes to get people “motivated” often backfire. Why can’t we figure out how to incentivize the behavior we desire and have it not backfire on us? What is the righter way to dangle incentives in front of our employees to get them to do what we want? Well aiming at that is a bad strategy. Using extrinsic motivation less badly is possible but the correct answer is just don’t do it. The problems of individual incentives seem to far … Continue reading →

Posted in Deming, Management, Psychology, quote, Respect, Systems thinking | Tagged , , , , , , | 7 Comments

The Software Engineering Manager’s Lament

Posted on October 23, 2008 by John Hunter

The engineering manager’s lament by Eric Ries: In teams that follow the “pick two” agenda [quality, time or price], which two has to be resolved via a power play. In companies with a strong engineering culture, the engineers pick quality. It’s their professional pride on the line, after all. So they insist on having the final say on when a feature is “done” enough to show to customers. Business people may want to speed things up by spending more money, … Continue reading →

Posted in IT, Management, Software Development, Systems thinking | Tagged , , , ,

CEOs Plundering Corporate Coffers

Posted on October 22, 2008 by John Hunter

Pointy haired bosses broke the code they provided on their site for embedding a Dilbert comic, so I removed the broken code. Dogbert: “I am stepping down as CEO so I can spend more time with the money I stole from this hellhole.” Unfortunately we still have far too few people that see the obscene behavior of CEOs and their brooks brother bureaucrats as unacceptable. The behavior of many of them has been similar to that of dictators looting the … Continue reading →

Posted in Management, Respect, Systems thinking | Tagged , , , , | 17 Comments

Restaurant Eliminates Tipping to Improve System Performance

Posted on October 13, 2008 by John Hunter

Why Tip? by Paul Wachter When he opened the Linkery [the broken link was removed], Porter said, he hoped his employees would become as emotionally invested in the venture as he was, sharing a sense of purpose and joy in their work. … Porter instead proposed a service fee of 18 percent, to be pooled and split roughly 3 to 1 between the restaurant’s front of the house and its kitchen. … Porter, like the anti-tippers of yore, was persuaded … Continue reading →

Posted in Creativity, Deming, Economics, Management, Psychology, Systems thinking | Tagged , , , , | 1 Comment

The Ergonomics of Innovation

Posted on September 22, 2008 by John Hunter

The Ergonomics of Innovation by Hayagreeva Rao and Robert Sutton the IHI case teaches us that innovations spread quickly when organizations focus relentlessly on selecting and spreading ideas in ways that ease the burden of thought and action for everyone involved. This mind-set differs from the one that burdens most organizations, where innovation is seen as difficult, expensive, and protracted. The IHI staff’s ergonomics-of-innovation mind-set focused on making things easier and cheaper for everyone, including the staff itself. … IHI … Continue reading →

Posted in Creativity, Health care, Innovation, Management, Process improvement, Systems thinking | Tagged , ,

Future Directions for Agile Management

Posted on August 25, 2008 by John Hunter

Agile management (agile software development specifically) is something that makes a big difference in my work life. David Anderson consistently provides great ideas on agile management and he does so again in this 90 minute presentation on the future directions for agile. As I learned about agile software development, what I saw was a great implementation of management improvement practices focused on software development that was very compatible with Deming’s management philosophy and lean thinking practices. The Agile manifesto: Individuals … Continue reading →

Posted in Customer focus, Deming, Innovation, IT, Lean thinking, Management, quote, Software Development, Systems thinking | Tagged , , , | 6 Comments

The Power of Small Teams

Posted on August 20, 2008 by John Hunter

The power of small teams [broken link was removed] by Avi Muchnick Choose a project that is simple to implement. Don’t try to create a complex suite of applications… Focus on solving a single problem. Philip Kaplan made email more efficient to use by stalling it instead of managing it. Dead simple approach and a great idea.Take the easier approach when possible. Choose people that can wear multiple hats. Can your designer code? Can your programmer manage a community? Can … Continue reading →

Posted in Google, Management, Process improvement, Systems thinking | Tagged , ,

Lean IT Systems – Not ERP

Posted on August 19, 2008 by John Hunter

I am not sure, IT needs to get lean on manufacturing [broken link was removed], does the clearest job of explaining some things, but it does state some things well: …you can see how typical offshoring doesn’t work here, as it is counterproductive to true lean manufacturing. If your plant is 8,000 miles away, you need to plan even further out, building in as much as an extra month for transoceanic shipping. Manufacturers also need to carry a larger safety … Continue reading →

Posted in IT, Lean thinking, Management, Manufacturing, Systems thinking | 2 Comments

Individual Bonuses Are Bad Management

Posted on August 7, 2008 by John Hunter

Gojko Adzic provides a nice post on Mary Poppendieck’s presentation at Agile 2008 on bonus, compensation and motivation: Paying programmers: are bonuses bad and what to do about it? In software development, it is very hard to establish the effects of individual contributions and good teamwork is key to the project. Most individual compensation schemes, according to the presentation, absorb vast amounts of management time and resources and leave nobody happy, but team compensation strategies are not easy to implement. … Continue reading →

Posted in Competition, IT, Management, Performance Appraisal, Psychology, Respect, Software Development, Systems thinking | Tagged , , , | 1 Comment