Management Improvement Blog Carnival #192

The Curious Cat management blog carnival has been published since 2006. New posts are published twice a month. I also publish a collection management improvement articles on the Curious Cat management improvement articles site.

  • Customer Service Andon Cord: Jeff Bezos and Customer Experience by Pete Abilla – “Lean principles have taken such a hold on Amazon and on Jeff Bezos that job titles now contain terms often used in Lean Manufacturing. For example, Jeff Bezos’ comment on ‘Customer Service Andon’ – well, it’s also a current job opening at Amazon…”
  • The Neuroscience of Deming by John Hunter – From the video (embedded below), JW Wilson: “Fast thinking is what you use when you are running from the bear, slow thinking is the kind of thinking you use when you want to change the world… We think we only have time to run from the bear; the consequences are devastating… [slow thinking is required for] making adaption to unsuccessful attempts”
  • Procter & Gamble: Basis Point Wise, Percentage Point Foolish by Bill Conerly – “If one of the parties in a transaction has to borrow, it should be the party with the cheaper debt cost.” [This is another example of stovepipe thinking and optimizing part of the system at great expense to the whole. People continue to fail to apply decades olds knowledge of the benefits of focusing on system improvement instead of optimizing components within the system. In addition to systems thinking failures it is an example of a focus on financial metrics themselves which often leads to silly actions due to not appreciating the proxy nature of measures. – John].
  • Are you providing leadership or support? by Dan Markovitz – Leadership means hacking through the jungle with a machete, clearing a path for front-line staff, supervisors, and managers to follow.
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94% Belongs to the System

I should estimate that in my experience most troubles and most possibilities for improvement add up to the proportions something like this: 94% belongs to the system (responsibility of management), 6% special.

Page 315 of Out of the Crisis by Dr. W. Edwards Deming.

the system that people work in and the interaction with people may account for 90 or 95 percent of performance.

Dr. Deming’s quote from the introduction to the Team Handbook

I think, in looking at the total of Deming’s work, that the point he is trying to make is that looking to blame people is not a good strategy for improvement. The impact due solely to a person’s direct action (not including their interaction with the system and with others) is small in comparison to that of the system within which they work. So, Deming (and I) want people to focus on improving the system; which will achieve better results than searching for what people did wrong.

What did Deming want people to take from his statements?

Did he want us just to accept bad results? No. He was not saying it is the system there is nothing we can do just accept that this is how things are. He wanted us to focus on the most effective improvement strategies. He saw huge waste directed at blaming people for bad results. He wanted to focus the improvement on the area with the greatest possibility for results.

Did he want to say people are just cogs in the machine? No. Read or listen to most anything he said at any significant length (a full chapter of this book, a full article he wrote on management, an hour from one of his videos) and it is hard to maintain such a thought.

photo of forest trail

Pinetree Trail, Frasers Hill, Malaysia by John Hunter

Did he believe that people were not important? No. He was trying to direct the focus of improvement efforts to look not at the fault with one person but to look at the system. I believe strongly he was correct. If you blame a person as the root cause of a problem, my first, second and third reactions are why? why? why? It is possible the person is to blame and there is no benefit to exploring system improvement instead of settling for blaming the person. But that is rare.

I have written about the importance of developing people to build the capability of the organization. My father wrote about it previously, “American organizations could compete much better at home and abroad if they would learn to tap the potential information inherent in all processes and the creativity inherent in all employees.”

I wrote about the importance of the ideas behind Deming’s quotes here, back in 2006 – Find the Root Cause Instead of the Person to Blame

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The Art of Discovery

Quality and The Art of Discovery by Professor George Box (1990):

Quotes by George Box in the video:

“I think of statistical methods as the use of science to make sense of numbers”

“The scientific method is how we increase the rate at which we find things out.”

“I think the quality revolution is nothing more, or less, than the dramatic expansion of the of scientific problem solving using informed observation and directed experimentation to find out more about the process, the product and the customer.”

“It really amounts to this, if you know more about what it is you are doing then you can do it better and you can do it cheaper.”

“We are talking about involving the whole workforce in the use of the scientific method and retraining our engineers and scientists in a more efficient way to run experiments.”

“Tapping into resources:

  1. Every operating system generates information that can be used to improve it.
  2. Everyone has creativity.
  3. Designed experiments can greatly increase the efficiency of experimentation.

An informed observer and directed experimentation are necessary for the scientific method to be applied. He notes that the control chart is used to notify an informed observer to explain what is special about the conditions when a result falls outside the control limits. When the chart indicates a special cause is likely present (something not part of the normal system) an informed observer should think about what special cause could lead to the result that was measured. And it is important this is done quickly as the ability of the knowledgable observer to determine what is special is much greater the closer in time to the result was created.

The video was posted by Wiley (with the permission of George’s family), Wiley is the publisher of George’s recent autobiography, An Accidental Statistician: The Life and Memories of George E. P. Box, and many of his other books.

Related: Two resources, largely untapped in American organizations, are potential information and employee creativityStatistics for Experimenters (book on directed experimentation by Box, Hunter and Hunter)Highlights from 2009 George Box SpeechIntroductory Videos on Using Design of Experiments to Improve Results (with Stu Hunter)

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Management Improvement Blog Carnival #191

The Curious Cat Management Improvement Carnival has been published since 2006. The carnival, published twice a month, links to great, recent, management blog posts. I hope you find these post interesting and find some new blogs to start reading. Follow John Hunter online: Google+, Twitter and elsewhere.

  • How much is your success dependent on those around you? by Eric Barker – “You’d think that doing thousands of heart surgeries would make you better at them. Not necessarily. Surgeons only got better at their home hospital: the one where they knew the team best and developed strong working relationships…. We often take our context and those around us for granted. What is it about those around you that’s making you good at what you do?
  • A Lesson on Leadership from Marrakech by Kevin Meyer – “Five times a day Muslims are reminded of their faith and are asked to reflect on it. And practicing Muslims will, whenever possible… Take the time to discover and define the true purpose of the organization. Translate that into a long-term strategy with short- and intermediate-term objectives. Then communicate and reinforce that purpose, strategy, and thinking… over and over and over.

    At least five times a day.”

  • photo of vista at Frasers Hill, Malaysia

    Fraser’s Hill, Malaysia, by John Hunter. See photos from my walk on Bishops Trail in Fraser’s Hill.

  • The Reason Health Care Is So Expensive: Insurance Companies by Jeffrey Pfeffer – “Unless and until we as a society pay attention to the enormous costs and the time wasted by the current administrative arrangements, we will continue to pay much too much for health care.” [the administrative system used by insurance companies is a big part of the problem but there are plenty more that needs to be improved with the health care system – John.]
  • This Executive Compensation Issue by Bill Waddell – What all of this means in terms of lean is that a holistic, respectful approach is an essential element of the lean philosophy – respect for people, including all of the stakeholders in the business. It is hard for me to see how anyone with the focus and priorities it takes to be in the cross hairs of the critics of CEO compensation can be such a lean leader.” [Taking What You Don’t Deserve, CEO Style – John Hunter]
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Management Improvement Blog Carnival #190

The Curious Cat Management Carnival is published twice each month. The posts selected for the carnival focus on the areas of management improvement I have focused on in the Curious Cat Management Improvement Guide since 1996: Deming, evidence based management, systems thinking, respect for people, applied statistics, etc..

photo of George Box, John Hunter and Peter Scholtesphoto of (from right to left) Peter Scholtes, John Hunter and George Box in Madison, Wisconsin at the 2008 Deming Conference
  • George Box (1919 to 2013) by John Hunter – George Box was a very kind, smart, caring and fun person. He was a gifted storyteller and writer. He was also one of the most important statisticians of the last 100 years. He had the ability to present ideas so they were easy to comprehend and appreciate…
  • George Box: A remembrance by Bradley Jones – “His greatest contribution to my life was the wonderful book, Statistics for Experimenters, which he wrote with William G. Hunter and Stu Hunter and published in 1978, the same year he served as president of the American Statistical Association. I remember the excitement I felt on reading the description of how the attainment of knowledge is an endless spiral proceeding alternately from deduction to induction and back. Even now, I recall with pleasure the discussion of the randomization distribution early in the book.”
  • Getting Started with Factorial Design of Experiments by Eston Martz – “When I talk to quality professionals about how they use statistics, one tool they mention again and again is design of experiments, or DOE. I’d never even heard the term before I started getting involved in quality improvement efforts, but now that I’ve learned how it works, I wonder why I didn’t learn about it sooner. If you need to find out how several factors are affecting a process outcome, DOE is the way to go.”
  • Brian Joiner Podcast on Management, Sustainability and the Health Care System – Recently Brian has shifted his focus to the health care system (while maintaining a focus on quality principles and sustainability). “Our health care system is an economic tsunami that is about to overwhelm us if we don’t do something very significant, very soon.”
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George Box

I would most likely not exist if it were not for George Box. My father took a course from George while my father was a student at Princeton. George agreed to start the Statistics Department at the University of Wisconsin – Madison, and my father followed him to Madison, to be the first PhD student. Dad graduated, and the next year was a professor there, where he and George remained for the rest of their careers.

George died today, he was born in 1919. He recently completed An Accidental Statistician: The Life and Memories of George E. P. Box which is an excellent book that captures his great ability to tell stories. It is a wonderful read for anyone interested in statistics and management improvement or just great stories of an interesting life.

photo of George EP Box

George Box by Brent Nicastro.

George Box was a fantastic statistician. I am not the person to judge, but from what I have read one of the handful of most important applied statisticians of the last 100 years. His contributions are enormous. Several well know statistical methods are known by his name, including:

George was elected a member of the American Academy of Arts and Sciences in 1974 and a Fellow of the Royal Society in 1979. He also served as president of the American Statistics Association in 1978. George is also an honorary member of ASQ.

George was a very kind, caring and fun person. He was a gifted storyteller and writer. He had the ability to present ideas so they were easy to comprehend and appreciate. While his writing was great, seeing him in person added so much more. Growing up I was able to enjoy his stories often, at our house or his. The last time I was in Madison, my brother and I visited with him and again listened to his marvelous stories about Carl Pearson, Ronald Fisher and so much more. He was one those special people that made you very happy whenever you were near him.

George Box, Stuart Hunter and Bill Hunter (my father) wrote what has become a classic text for experimenters in scientific and business circles, Statistics for Experimenters. I am biased but I think this is acknowledged as one of (if not the) most important books on design of experiments.

George also wrote other classic books: Time series analysis: Forecasting and control (1979, with Gwilym Jenkins) and Bayesian inference in statistical analysis. (1973, with George C. Tiao).

George Box and Bill Hunter co-founded the Center for Quality and Productivity Improvement at the University of Wisconsin-Madison in 1984. The Center develops, advances and communicates quality improvement methods and ideas.

The Box Medal for Outstanding Contributions to Industrial Statistics recognizes development and the application of statistical methods in European business and industry in his honor.

All models are wrong but some are useful” is likely his most famous quote. More quotes By George Box

A few selected articles and reports by George Box

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Quality Processes in Unexpected Places

This month Paul Borawski asked ASQ’s Influential Voices to explore the use of quality tools in unexpected places.

The most surprising example of this practice that I recall is the Madison, Wisconsin police department surveying those they arrested to get customer feedback. It is obvious that such “customers” are going to be biased. Still the police department was able to get actionable information by seeking the voice of the customer.

photo of a red berry and leaves

Unrelated photo from Singapore Botanical Garden by John Hunter.

Certain of the police department’s aims are not going to match well with those they arrest (most obviously those arrested wish the police department didn’t arrest them). The police department sought the voice of the customer from all those they interacted with (which included those they arrested, but also included those reporting crimes, victims, relatives of those they arrested etc.).

The aim of the police department is not to arrest people. Doing so is necessary but doing so is most similar in the management context to catching an error to remove that bad result. It is better to improve processes so bad results are avoided. How the police interact with the public can improve the process to help steer people’s actions away from those that will require arrests.

The interaction police officers have with the public is a critical gemba for meeting the police department’s aim. Reducing crime and encouraging a peaceful society is aided by knowing the conditions of that gemba and knowing how attempts to improve are being felt at the gemba.

All customer feedback includes bias and personal preferences and potentially desires that are contrary to the aims for the organization (wanting services for free, for example). Understanding this and how important understanding customer/user feedback on the gemba is, it really shouldn’t be surprising that the police would want that data. But I think it may well be that process thinking, evidence based management and such ideas are still not widely practiced as so the Madison police department’s actions are still surprising to many.

Quality Leadership: The First Step Towards Quality Policing by David Couper and Sabine Lobitz

Our business is policing, our customers are the citizens within our jurisdictions, and our product is police service (everything from crime fighting and conflict management to safety and prevention programs.)

If we are to cure this we must start to pay attention to the new ideas and trends in the workplace mentioned earlier that are helping America’s businesses; a commitment to people, how people are treated — employees as well as citizens, the development of a people-oriented workplace, and leadership can and does make a difference.

If we change the way in which we lead the men and women in our police organizations, we can achieve quality in policing. However, wanting to change and changing are worlds apart. The road to change is littered by good intentions and short-term efforts.

This article, from 1987, illustrates the respect for people principle was alive and being practiced 25 years ago; most organizations need to do a great deal more work on applying practices that show respect for people.

Related: Quality Improvement and Government: Ten Hard Lessons From the Madison Experience by David C. Couper, Chief of Police, City of Madison, Wisconsin – SWAT Raids, Failure to Apply System Thinking in Law EnforcementMeasuring What Matters: Developing Measures of What the Police DoThe Public Sector and W. Edwards DemingDoing More with Less in the Public Sector – A Progress Report from Madison, Wisconsin

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The Components of Genius

image of poster on what makes up genius

Wonderful poster, by Grant Snider, on the question: what is genius.

Related: Comic About ProgramersYou Have to Find What You Love To DoMarissa Mayer Webcast on Google InnovationInterruptions Can Severely Damage Performance

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Management Improvement Blog Carnival #189

The Curious Cat management blog carnival has been published since 2006. New posts are published twice a month. I also publish a collection management improvement articles on the Curious Cat Management Articles site.

  • The Three Rules for Rules by Jon Miller – “If rules aren’t being followed, there is a reason. Proceed to the next rule [Rules must be frequently improved.] and rewrite an improved rule.”
  • Those Disposable People by Kevin Meyer – “Believing that employees are purely a cost, not understanding that just because the value of employees is not explicitly stated on a P&L and balance sheet doesn’t mean that there is no offsetting value to the “cost,” is a faiure of management.”
  • Why ThoughtWorks Eliminated Sales Commissions by John Hunter – “This is another instance of a technology company providing a well reasoned explanation for why they are better off without sales commissions.”
  • Dealing With Complexity in Leadership by Linda Fisher Thornton – “The ability to think through complex problems clearly is an asset to individual leaders and to the organizations they serve. We need to find ways to help leaders develop this ability, and to do that, it helps to understand what it is that leaders with a high degree of thinking complexity do.”
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What Does Respect for People Actually Mean?

“Respect for People” is a great short hand statement. There is a great deal of complexity packed into those words.

At the simplest level respect for people requires systems that are designed with people in mind – systems are not designed as though robots were doing what people did. Then those systems also must be built in a way that respects the inherent value of people.

photo of construction site in Mongolia, 1980s

Construction site in Mongolia in the 1980’s, photo by Bill Hunter.

And the idea builds beyond that and grows into an understanding that in order for human systems to be most effective they must engage people. There are significant limits to how effective systems with people can be if you act as though people are just robots to implement the instructions given by some boss. Respect for people moves from being about just the inherent value of people themselves to a principle to allow organizations to be most effective.

Within these principles are all sorts of shades of grey where the principles shed light on ideas to consider but it becomes challenging to know what the specific situation calls for.

Things also get complicated with the way English works. There is another aspect to respect that has to do with having confidence in someone’s ability or maturity.

You don’t show more “respect for people” by overestimating them. If someone does not have the statistical skills to do a task it isn’t a failure of “respect for people” to acknowledge that.

I find myself making decisions on how to treat people differently based on what can be seen as different “respect” (in the respect = confidence in their capabilities and their self-confidence). With some people I can simple say, no you are wrong in this case it is best to do x, y, z. I find this is what I can do with those I have the most of the “respect” for their emotional intelligence.

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