Category Archives: Systems thinking

Russell L. Ackoff: 1919 -2009

We lost another of the absolutely best minds in management history, this week. Somehow, many managers, do not know of Russell Ackoff’s ideas. I find that amazing. Dr. Ackoff is one of two management thinkers that any manager, that is serious about improving management results in their organization, must study (the other is Dr. Deming). The Curious Cat management library includes many articles by Russell Ackoff. Transformation and Redesign at the White House Communications Agency by March Laree Jacques is … Continue reading →

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

Worker Retention at Zappos

Tony Hsieh, chief executive of Zappos, spoke at a recent y-combinator event (two great organizations we have mentioned before). Facebook and Zappos’s Different Views on Worker Retention “We actually want our employees stay with the company for a long time, for 10 years, maybe their entire life.” … “We now provide mentorship and training so employees can join at the entry level and, over a period of five to seven years, have the opportunity and training to become senior leaders … Continue reading →

Posted in Creativity, Deming, Fun, Management, Psychology, Respect, Systems thinking | Tagged , , , , , , | 2 Comments

Managing to Test Result Instead of Customer Value

Computer hardware and software creators use benchmarks as one tool to compare the performance of alternative products. At times this can be very useful. You can learn what software of hardware is faster and that may be a very valuable factor. However, any measure is determined by the operational definitions used in collecting the measure. And if people have incentives to improve the measured number they often will do just that (improving the measure) rather than improving the system (the … Continue reading →

Posted in Creativity, IT, Management, Software Development, Systems thinking | Tagged , , , , , | 7 Comments

How ‘Buy American’ Can Hurt U.S. Firms

How ‘Buy American’ Can Hurt U.S. Firms Canadian communities angered by perceived American chauvinism have started a Buy Canadian campaign to exclude U.S. bidders from municipal contracts. “If that sticks, well, there goes 25% of my business,” said Mr. Pokorsky. “To me, Ontario may as well be Indiana.” Halton Hills, a town of 50,000 people about 25 miles west of Toronto, is one of about a dozen Canadian communities forging ahead with plans to amend their procurement policies to freeze … Continue reading →

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

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

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

Posted in Creativity, curiouscat.com, Deming, Education, Innovation, Lean thinking, Management, Performance Appraisal, Popular, Process improvement, Psychology, quote, Respect, Science, Systems thinking, webcast | Tagged , , , , , , , , , , , | 4 Comments

The Best Leadership Is Good Management

The Best Leadership Is Good Management [the broken link has been removed] by Henry Mintzberg Let me suggest that you should, because what we’ve been calling a financial crisis is actually one of management. Corporate America has had too much of fancy leadership disconnected from plain old management. … How did this happen? It became fashionable some years ago to separate “leaders” from “managers”—you know, distinguishing those who “do the right things” from those who “do things right.” It sounds … Continue reading →

Posted in Management, Management Articles, Systems thinking | Tagged , , , , | 7 Comments

Blame the Road – Not the Person

The system is responsible for 90, 92, 94, 97% of problems – W. Edwards Deming. Fix the system, don’t blame the people. When you seek system fixes you approach situations differently than if you search for people to blame. By the way, I am often asked about the data supporting Deming’s contention that the system was responsible for 97% of the problems. This statement was not based on a set of data but on Dr. Deming’s decades of experience. And … Continue reading →

Posted in Creativity, Data, Deming, Economics, Health care, Management, Systems thinking | Tagged , , , , , , | 5 Comments

When Performance-related Pay Backfires

When Economic Incentives Backfire by Samuel Bowles, Sante Fe Institute Dozens of recent experiments show that rewarding self-interest with Economic incentives can backfire when they undermine what Adam Smith called “the moral sentiments.” Punished by Rewards, by Alfie Kohn, is a great book on this topic. The area of “motivating” employees is one it is often hard for managers to learn. Even managers that have been studying Deming, Ackoff, Ohno… for years still have trouble with the idea that trying … Continue reading →

Posted in Competition, Data, Deming, Economics, Management, Performance Appraisal, Psychology, quote, Statistics, Systems thinking | Tagged , , , , , , | 4 Comments

Akio Toyoda’s Message Shows Real Leadership

Speech by Akio Toyoda Since the birth of Toyota, the company’s philosophy has always been to “contribute to society.” … “Contributing to society” at Toyota means two things. First, it means, “to manufacture automobiles that meet the needs of society and enrich people’s lives.” And second, “to take root in the communities we serve by creating jobs, earning profits and paying taxes, thereby enriching the local economies where we operate.” … Toyota has overcome many challenges during its seven decades … Continue reading →

Posted in Customer focus, Deming, Lean thinking, Management, Manufacturing, quote, Systems thinking, Toyota Production System (TPS) | Tagged , , , , , , , , , , | 14 Comments

Zappos and Amazon Sitting in a Tree…

Amazon is acquiring the unique company – Zappos: we have written about Zappos previously: Paying New Employees to Quit. Jeff Bezos uses the webcast above to talk to the employees of Zappos. Excellent job. The letter from Tony Hsieh, the Zappo’s CEO, to employees is fantastic. This is a CEO that respects employees. These are leaders I would follow and invest in (and in fact I am glad I do own Amazon stock). First, I want to apologize for the … Continue reading →

Posted in Creativity, Customer focus, Deming, Fun, Innovation, Investing, Management, Respect, Systems thinking | Tagged , , , , , , , | 7 Comments

Narcissistic Cadre of Senior Executives

In yet another voice against the looting mentality of the current crop of executives Chris Bones, dean of Henley Business School writes a A crisis of confidence? This has resulted in the creation of a narcissistic cadre of senior executives who knew no right but their own perception and brooked no criticism or check on their ambition. In their demands for personal rewards we have seen them in their true light. … Secondly, a responsible organisation should set limits above … Continue reading →

Posted in Economics, Psychology, Systems thinking | Tagged , , ,

Peter Scholtes

Peter Scholtes died peacefully this morning [11 July 2009] in Madison, Wisconsin. His family was with him. My father wrote about the First Street Garage project in W. Edwards Deming’s Out of the Crisis (pages 245-247). Peter (who was working for the City of Madison at the time) and he became good friends working on that project together. Peter went to work for Joiner Associates afterwards and was a primary author of the Team Handbook. And Peter spent many years … Continue reading →

Posted in Deming, Management, quote, Systems thinking | Tagged , , , , , | 34 Comments

The Trouble with Performance Reviews by Jeffrey Pfeffer

The Trouble with Performance Reviews [the broken link was removed] by Jeffrey Pfeffer Managers don’t like giving appraisals, and employees don’t like getting them. Perhaps they’re not liked because both parties suspect what the evidence has proved for decades: Traditional performance appraisals don’t work. But as my colleague and fellow Stanford professor Bob Sutton and I pointed out in our book, Hard Facts, Dangerous Half-Truths, and Total Nonsense: Profiting from Evidence-Based Management, belief and conventional wisdom often trump the facts. … Continue reading →

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

Computer Network Operations Center Failures

Obviously many businesses are now dependent on computer Network Operations Centers (NOC). Some of these data centers can cause millions of dollars in lost sales each minute if they fail. So sound engineering, including off-site redundancy is critical. Authorize.net is a recent example of such a failure, Authorize.net Goes Down, E-Commerce Vendors Left Hanging Payment gateway service provider Authorize.net has been down and out for several hours… That has big implications: since the service is used by tens of thousands … Continue reading →

Posted in Customer focus, Economics, IT, Management, Systems thinking | Tagged , , ,

The Myth of the Genius Programmer

Nice talk on fear of looking foolish. The speakers discuss the idea that visibility is good. Don’t hide. Make everything visible and the benefit from many people’s ideas. The talk focuses on software development but is true for any work. “criticism is not evil” – Very true. “At Google we are not allowed to submit code until there is code review.” At the bottom line they are repeating Deming’s ideas: improve the system – people are not the problem, bad … Continue reading →

Posted in Google, Psychology, Respect, Software Development, Systems thinking, Theory of Constraints, webcast | Tagged , , , , , | 1 Comment

Community Medical Care Successes

The Cost Conundrum by Atul Gawande, New Yorker (The Power of a Checklist was published there in 2007 by the same author) For example, Rochester, Minnesota, where the Mayo Clinic dominates the scene, has fantastically high levels of technological capability and quality, but its Medicare spending is in the lowest fifteen per cent of the country—$6,688 per enrollee in 2006, which is eight thousand dollars less than the figure for McAllen. Two economists working at Dartmouth, Katherine Baicker and Amitabh … Continue reading →

Posted in Customer focus, Deming, Economics, Health care, Systems thinking | Tagged , , , | 1 Comment