Management Improvement Carnival #7

  • How are stories of successful companies leading us astray? by Karen Wilhelm – “correlation does not equal causation, a inspecting a “sample” consisting only of good parts will not yield good information about a process, and anecdotal evidence is interesting but not acceptable as proof of a hypothesis.”
  • SBTI Response to WSJ Article by Joe Ficalora and Joe Costello – “By and large the executives who have left GE and AlliedSignal (now Honeywell) and other Six-Sigma companies who became top executives have uniformly started Six-Sigma and Lean programs at their new companies, and nearly all successfully deployed it.”
  • Mark Graban interviews Jim Womack: Machine Revisited (podcast): “The job of ‘Machine’ was to describe a complete business system… ‘the biggest disappointment… was to have people tell me it was a great book about factories.'”
  • Why few organizations adopt systems thinking by Russell L. Ackoff – “To understand why organizations do not use mistakes as opportunities for learning, other than a disposition inherited from educational institutions, we must recognize that there are two types of mistake: errors of commission and errors of omission.”
  • Kano Model by Robert Thompson – “Attractive quality attributes can be described as surprise and delight attributes; they provide satisfaction when achieved fully, but do not cause dissatisfaction when not fulfilled.” – Curious Cat on the Kano Model
  • Continue reading

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Simple Solutions That Work

Nurse, the maggots [the broken link was removed]

Maggots clean wounds 18 times faster than normal treatments, can conquer MRSA and would save the NHS millions.

Recent studies have indicated that maggot therapy can cut treatment duration from 89 days to just five, and slash the cost from £2,200 to £300 per patient. Moon describes the grubs as “a highly cost-effective, highly efficient but forgotten and undervalued method of treatment”, and Caroline Flint, the Public Health Minister, says that using fly larvae (maggots) is “increasingly common” and “an illuminating idea”

In trials in Wales and Manchester, says Moon, patients not only recovered faster but noticed less smell and felt less pain from their rotting flesh when maggots were allowed to eat it. “Maggots are highly precise,” she says. “Unlike surgeons, they remove only the rotting tissue. Surgeons have to cut out healthy tissue to clear the wound, thereby creating a larger wound and more bleeding.”

I can believe we would avoid such a simple solution even it is more effective (the health care system seems perfectly capable of avoiding simple effective solutions to me). I hope we pursue scientific study of the most effective solutions – even if they don’t fit with the current way of thinking. It seems to me the health care system needs to find creative and cost effective solutions.

Related: USA Health Care System Costs Reach 16% of GDPLean UK HospitalsManagement Improvement in Healthcare – Maggot Therapy Project [the broken link was removed] – Maggots make medical comeback

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NCAA Basketball Challenge 2007

Once again I have created a group on the ESPN NCAA Basketball Tournament Challenge for curiouscat basketball fans. To participate, go to the curiouscat ESPN group [the broken link was removed] and make your picks.

Go Badgers and Go Davidson,

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Jeffrey Pfeffer on Evidence-Based Practices

Jeffrey Pfeffer Testifies to Congress About Evidence-Based Practices [the broken link was removed]:

In this short statement, I want to make five points as succinctly as possible, providing references for background and documentation for my arguments. First, organizations in both the public and private sector ought to base policies not on casual benchmarking, on ideology or belief, on what they have done in the past or what they are comfortable with doing, but instead should implement evidence-based management. Second, the mere prevalence or persistence of some management practice is not evidence that it works — there are numerous examples of widely diffused and quite persistent management practices, strongly advocated by practicing executives and consultants, where the systematic empirical evidence for their ineffectiveness is just overwhelming. Third, the idea that individual pay for performance will enhance organizational operations rests on a set of assumptions. Once those assumptions are spelled out and confronted with the evidence, it is clear that many — maybe all — do not hold in most organizations. Fourth, the evidence for the effectiveness of individual pay for performance is mixed, at best — not because pay systems don’t motivate behavior, but more frequently, because such systems effectively motivate the wrong behavior. And finally, the best way to encourage performance is to build a high performance culture. We know the components of such a system, and we ought to pay attention to this research and implement its findings.

Great stuff. Read the entire document. via: Bob Sutton’s Work Matters

Related: Evidence-based ManagementIllusions – Optical and Other

Books: The Knowing-Doing Gap by Jeffrey Pfeffer and Robert Sutton – Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management by Jeffrey Pfeffer and Robert Sutton

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Investors Business Daily on Deming

He Pointed Firms To Quality [the broken link was removed] by Kirk Shinkle:

Management responsibility took on an almost moral role for Deming. Failure in business and the resulting unemployment could be blamed almost entirely on leadership. Leaders, he believed, should commit to their employees, not hop around from job to job. He would likely have eschewed today’s renewed climate of zealous private equity buyouts and an increasing trend toward mobile management.

In the introduction to his 1983 book “Out of the Crisis,” Deming called hostile takeovers and leveraged buyouts “a cancer in the American system.” “Fear of takeover, along with emphasis on the quarterly dividend, defeats constancy of purpose,” he wrote. He also derided a focus on short-term profits that comes with traditional benchmarks used by many corporations.

“Back in 1980 when he talked about working with your suppliers, people would just back up against the wall. That was heresy,” Orsini said. “Now we’re teaching courses in supply chain management, and most people have no idea the roots of it are in Deming’s thinking.” Deming opposed protectionist laws and policies, calling trade between nations “an essential component of peace and prosperity.” Deming’s influence on managing people’s skill was built on a solid foundation of quantifiable fact.

Related: Deming on ManagementThe purpose of an organizationdistorting the systemManagement: Geeks and DemingCurious Cat Deming ConnectionsRed Bead ExperimentCurious Cat Investment BlogWillam O’Neil (Investor’s Business Daily founder) – not exactly a Deming based investing approach

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Kanban In Software Engineering

Kanban in Action [the broken link was removed]:

The kanban system allows us to deliver on my 3 elements of my recipe for success: reduce work-in-progress (in fact it limits it completely); balance capacity against demand (as new CRs [change requests] can only be introduced when a kanban card frees up after a release); and prioritize. We hold a business prioritization meeting once per week with vice presidents from around the company. They get to pick new CRs from the backlog to allocate against free kanban cards. This forces them to think about the one, two, or three most important things for them to get done now. It forces prioritization.

Another interesting application of management improvement concepts in software development by David Anderson.

Related: Management Science for Software EngineeringMicrosoft CMMIInnovation in Software Development ProcessLean and Theory of ConstraintsKanban definition

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Change Health Care

How Toyota Can Save Your Life…at the hospital by Mark Graban, another great manifesto from Change This:

In reality, each of these deaths and medical mistakes is a systemic failure. these were problems that could have occurred, or were bound to occur, anywhere–any given patient, any given caregiver. the idea that medical mistakes, as with plane crashes, are basically random events is very scary.

True. If the context of the problem is not understood the efforts to improve will not be as effective as they could be.

Spending money hasn’t worked so far. While the united States far outspends other countries ($4500 per capita, while Switzerland is a distant second at about $3000 per capita), our life expectancy trails Japan (which spends about $2000 per capita), Switzerland, and other countries including Canada, France, Luxembourg, and even Malta. Spending more, whether it’s in manufacturing, education, or healthcare does not necessarily lead to higher quality or better results.

Unfortunately, the healthcare world operates in a highly litigious environment where there are financial or legal incentives to cover up and hide the cause of problems. It is easier to let an individual take the fall and let the public believe that the problem has been solved because the person at fault was fired or prosecuted.

Continue reading

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Motivating Employees

No Matter How Badly You Want It:

“When it seems easy, it’s like they already wanted to do it in the first place.” Martin paused. “It seems impossible when they didn’t ever want to do it. So, it doesn’t seem to matter what you want, as the manager, or how badly you want it. The only thing that seems to matter is whether your team members want to do it?”

The lights were circling in Martin’s head. The whole time, as a manager, he had been looking at motivation as getting people to do something he wanted. His mind was beginning to change.

Douglas McGregor discussed this topic well in 1960. He explained theory X management (managers believe the workers will do only what they are forced, coerced into doing) and theory Y management (managers believe the workers want to do a good job and the managers job is to help them do so) in his excellent book: The Human Side Of Enterprise.

When a manager thinks in a theory y way they assume people wish to do a good job. If the employees are not doing some task the way the manager wants, the manager needs to figure out what is wrong with the system that leads to this outcome (not what is wrong with the employees).

When a manger views the problem as one of motivating workers that puts the problem within the worker. They need to be changed. That is the wrong strategy, most of the time. People want to do a good job; the job of a manager is to remove the de-motivation within the system.

Related: MotivationIncentive Programs are IneffectiveMotivation Posterrespect for workers posts

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Total Quality Software Development

Total Quality Service podcast by Michael Tiemann, Redhat Software.

Do we offshore the problem to somebody else, you know get more bad software cheaper? Or do we fix the problem? I think we fix the problem. Now, in going to Japan and talking about this software quality problem it was pretty obvious I had to go and study Deming…

I think the first 10 minutes of the podcast is valuable to anyone. The last 8 minutes might not appeal to those without an interest in software development and IT.

Related: Deming’s 14 PointsAgile ManagementInnovation in Software Development ProcessWhat Business Can Learn from Open Source

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Website Data

The Alexa toolbar, from amazon.com (and by the guy, Brewster Kahle, who created the internet archive too, by the way) is one way to get some idea of how popular a web site is (the toolbar shows the web site rank for each site you visit). It is very inaccurate, but is free, and easy, so it is used. Alexa Toolbar and the Problem of Experiment Design shows why data based decision making is not the solution to all your problems:

What that means is that people with the Alexa toolbar installed are 25 times more likely to view a page on Matt’s site versus mine, but overall, all users view twice as many pages on my site. That’s a 50 to 1 difference introduced by the selection bias of Alexa.

As Dr. Deming said best efforts are not enough, you need to know what to do first. The same holds true with data, first you need to have useful data.

Related: Manage what you can’t measurepodcast interview: Brewster KahleGladwell and more IT Conversations

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