Hiring the Right People

The job market is an inefficient market. There are many reasons for this including relying on specification (this job requires a BS in Computer Science – no Bill Gates you don’t meet the spec) instead of understanding the system. Insisting on managing by the numbers even when the most important figures are unknown and maybe unknowable. Using HR to find the right person to work in a process they don’t understand (which reinforces the desire to focus on specifications instead of a more nuanced approach). The inflexibility of companies: so if a great person wants to work 32 hours a week – too bad we can’t hire them. And on and on.

At first I titled this post the Hiring Process but that creates a analytic view of the hiring process separated from the important part which is workers actually working. The hiring process just provides resources that are needed. But in many places it is the reverse, the hiring process provides resources and then the rest of the process deals with that output as best it can.

Seth Godin had a very good post recently, The end of the job interview:

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Google Shifts Focus

It appears Google has decided it is time to put more resources into improving their many existing products (Gmail, News, Video, Maps, Picassa, Spreadsheets, Checkout, GoogleTalk, AdSense for Radio, GoogleReader, BlogSearch, GoogleGroups,…). That makes sense to me.

When Google had few other products I think it was likely wise to push a bunch of stuff out the door quickly. Now that they have a bunch of decent, but not really great products, adjusting and taking the opportunity to improve those product makes sense. In my opinion they have always been very focused on search and AdWords (The 70 Percent Solution) though even that could be improved some as Google has acknowledged.

Google Puts Lid on New Products

Co-founder Sergey Brin is leading a companywide initiative called “Features, not products.” He said the campaign started this summer…

This change while significant I believe is just an adjustment. Google will continue to march to its own tune: which is a good thing.

Related: Chaos Management (by design) at GoogleGoogle: Experiment Quickly and OftenGoogle: Ten Golden Rules

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Not Innovation but Still Interesting

10 years of the most innovative ideas in business in not packed with ideas on innovation: it was obviously titled by someone hoping to catch the interest of those following the innovation fad. Still it has interesting stories originally published in Fast Company, including:

How to Give Good Feedback [the broken link was removed] by Seth Godin
The Accidental Guru (on Malcolm Gladwell) by Danielle Sacks
Built to Flip [the broken link was removed] by Jim Collins
A Design for Living by Linda Tischler
and Join the Circus by Linda Tischler

The last one is about Cirque de Soleil which is an innovator (though even in this case it seems better might be more apt than different but maybe I am being too stingy). Read more blog posts on innovation.

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More on Overpaid CEO’s

CEO pay up big – but not performance:

The Corporate Library analyzed the compensation of nearly 1,400 chiefs for its annual report on CEO pay. The group’s median total compensation rose 16 percent between 2004 and 2005. A year earlier, CEOs got a bump of 30 percent in total compensation, which includes salary, bonus, perks, exercised stock options and other long-term incentive pay.

This is more bad news. As Drucker, Buffet and many others have said CEO overpayment is bad for companies, workers and shareholders. Even when they are fired they often take away tens of millions of dollars. Absolutely ridiculous. I sure hope the bubble of CEO pay bursts soon – the only suitable comparison this century is the internet stock bubble. But every year it just gets worse. I would add overpaying CEO’s to Deming’s seven deadly diseases of western management.

Related: Excessive Executive PayWarren Buffet on ridiculously out of line executive compensationExcessive CEO PayMore on Obscene CEO Compensation

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Evidence-based Management

Bob Sutton’s writing includes the excellent article “Management Advice: Which 90% is Crap?” (which we discussed in: Management Advice Failures) and the Knowing Doing Gap. I just discovered his blog today which is quite good: Work Matters. A recent post – Hand Washing and Evidence-based Management, includes some good advice on data and process improvement:

I’ve written before about how handwashing by medical care workers is one of the most well-documented preventable causes of death and disease in health care settings.

Self-report data can be worse than useless. They describe an Australian study where 73% of doctors reported washing their hands, but when the docs were observed by a researcher only 9% were seen washing their hands.

The way they finally got compliance up to nearly 100% was to have a group of the hospitals more influential doctors each press their palms on plates that were cultured and photographed, which resulted in images that “were disgusting and and striking, with gobs of colonies of bacteria.”

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Posted in Creativity, Data, Deming, Health care, Management, Process improvement | Tagged , , | 1 Comment

The State of Lean Implementation

Interesting survey by the Lean Enterprise Institute notes the following as the major obstacles to transforming to a lean organization.

1 Lack of implementation know-how: 48%
2 Backsliding to the old ways of working: 48%
3 Middle management resistance: 40%
4 Traditional cost accounting system doesn’t recognize the value of lean: 38%

I wonder if asking why several more times would help [broken link replaced with a new link]? It is not as though the difficulty in adopting lean thinking is unique. I don’t know of a management improvement method (TQM, BPR, Six Sigma, ToC…) that easily leads to changing the way a company operates.

Related: Why Use Lean if So Many Fail To Do So Effectively

via: lean blog

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Why Pay Taxes or be Honest

This kind of stuff makes me mad. I was taught about robber barons in school (or actually I think by my uncle but…). And what I was taught was that business used to be seen as an amoral area. But then society agreed (or rather it no longer was an accepted excuse to claim business was an amoral area) that morality applied to whatever you did, whether you were at work, or not.

But we keep getting these continuing examples that are so distressing: Enron, Worldom, Tyco, Accenture, HP [the broken link was removed]… It is so disappointing that such behavior is mainly excused (until finally the evidence presented is so damning that most stop defending the specific case in question).

Yet so much of what is unethical is barely questioned. If we don’t question things that are this bad, then those who insist on being as devious as they can without being called on it will just practice worse and worse behavior. We have to do a much better job of not tolerating such unethical behavior.

How Merck saved $1.5B paying itself for drug patents

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Posted in Economics, Management, Psychology | Tagged , , , , , | 2 Comments

Lean is Harmony

In Mike Wroblewski’s capstone, to his posts on his tour of lean manufacturing in Japan, he states:

My lean manufacturing epiphany is quite simple, LEAN IS HARMONY.

The lean principles are helping us develop and promote harmony by removing barriers, rocks, and conflicts that disrupt flow in our business.

Yes, lean is about eliminating waste and using great lean tools to improve our business but that is all we seem to focus on in the US. Lean principles are much more than that.

He captures the difficulty of truly operating in a lean manner. The tools are useful, but they are not the end. Just using the tools can help move an organization to the point where they are ready to truly examine how to improve. Most often the attempts (just like previous attempts with quality management, six sigma… did) stop short of more than superficial change where a few new tools are used in the same old system. Luckily more an more organization are moving in the right direction.
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Meeting Like Google

How to Run a Meeting Like Google [the broken link was removed], offers good advice like agendas distributed ahead of time, having a note taker…

Instead, she encourages such comments as “The experimentation on the site shows that his design performed 10% better.” This works for Google, because it builds a culture driven by customer feedback data, not the internal politics that pervade so many of today’s corporations.

Also definitely read: Most Meetings are Muda and meeting advice from 37 signals

Related: The Team HandbookGoogle Management MethodsHow Google WorksInnovation at Google

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Leaving Quality Behind – Again No

Is PAT Leaving Quality Behind? [the broken link was removed]

The intent of PAT was to advocate a more scientific and methodical approach to product development, scale-up and production. The impact of PAT will be felt in all sectors of the organization, and if applied correctly, will increase granularity in the quality and quantity of data being created throughout the product development lifecycle.

Ok, so in what way is that leaving quality behind? Does this add something to design of experiments, to PDSA, to control charts, to continuous improvement, to quality function deployment

The Improvement Handbook will help people learn what quality improvement is about today (and was about in 1990).

Related: Management Improvement History and Health CareQuality and InnovationManagement Improvement HistoryManagement Advice FailuresSPC: History and Understanding

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