Management Improvement Blog Carnival #188

The Curious Cat Management 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 me online: Google+, Twitter and elsewhere.

  • Toyota, Respect for People (or “Humanity”) and Lean by Mark Graban – “I’ve really come to appreciate how ‘respect for people’ and ‘continuous improvement’ (or Kaizen) are intertwined. We practice CI because we have RFP… we practice RFP by engaging people in CI and challenging them to perform better… for the sake of our customers and our patients (who we have respect for).”
  • photo of Van Gogh self portrait

    Van Gogh self portrait. Photo by John Hunter, Musee d’Orsay, Paris.

  • Where There is Fear You Do Not Get Honest Figures by John Hunter – “The problems fear creates result in bad data, ineffective decision making and the destruction of joy in work.”
  • Comparing the Five Lean Principles to the Toyota 14 Principles by Matt Wrye – “The standardization allows for a baseline when a problem arises. If standards are being followed then the problem becomes easier to diagnose. Once the root cause is discovered, allowing the employees the freedom to improve the standard so the issue doesn’t surface again promotes empowerment and respect for people. This respect for their knowledge of the process will help to foster more improvement ideas from them.”
  • Disruption guru Clay Christensen says incumbent media players are making a classic mistake by Mathew Ingram – “incumbent players in a particular industry routinely fail to make the necessary changes to the way they do things, even when they can see the disruption occurring all around them. In almost every case, they see the disruptors as not worthy of their attention because they are operating at the low end of the market, and either don’t see that as important or are too committed to their existing business models.”
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Your Brain Can Jump to Incorrect Conclusions

How our brain works without us realizing it often is hugely beneficial, but it also creates some faulty conclusions at times. The video gives a good synopsis of the quick intuitive leaps our brains make all the time. These are extremely helpful, but occasionally lead us to fall into traps.

I have discussed these idea before: The Illusion of Knowledge, Optical and Other Illusions. By understanding some of the traps our brain can fall into, we can improve our decision making.

By learning that our “system 1 brain” will jump to immediate answers but may make some risky assumptions in seeking the quickest answer we can learn to question that conclusion. I find building the case for that conclusion (and questioning the assumptions) is helpful.

The trickiest part is figuring out when to apply more conscious effort to exploring the options. I do not believe the quip “don’t assume” is useful. We have to make hundred of assumptions every day or we couldn’t make any progress. If I don’t assume the floor will support my weight I have to be very careful getting out of bed, then the stairway, then whether food is safe to eat, whether the brakes still work on my car…

We have to assume. But it is helpful if we can intelligently question our immediate conclusions if it is important to do so. Optical illusion are interesting, most often the mistakes our brain makes are not important to us. But if such a conclusion was important, knowing to question your system 1 response will give you the chance to improve.

Related: We are Being Ruined by the Best Efforts of People Who are Doing the Wrong ThingHow We Know What We KnowFlaws in Understanding Psychology Lead to Flawed Management DecisionsAlbert Einstein, Marylin Monroe Hybrid Image

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Software Process and Measurement Podcast With John Hunter

In my podcast with Tom Cagley, Software Process and Measurement Cast: John Hunter on Management Matters, as you might expect there was a bit of a focus on software development and agile software development as related to the ideas I expressed in Management Matters: Building Enterprise Capability.

photo of John Hunter at the Borobudur Temple

John Hunter at the Borobudur Buddhist Temple in Indonesia.


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Podcast Discussion on Management Matters

I continue to record podcasts as I promote my new book – Management Matters: Building Enterprise Capability. This the second part, of 2, of my podcast with Joe Dager, Business 901: Management Matters to a Curious Cat. The first part featured a discussion of 2 new deadly diseases facing companies.

image of the cover of Managmenet Matters by John Hunter

Management Matters by John Hunter

Listen to this podcast.

Links to more information on some of the topics I mention in the podcast:

More podcasts: Process Excellence Network Podcast with John HunterBusiness 901 Podcast with John Hunter: Deming’s Management Ideas Today (2012)Leanpub Podcast on Management Matters: Building Enterprise Capability

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Management Improvement Blog Carnival #187

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, lean manufacturing, customer focus, leadership, systems thinking, respect for people, etc..

  • We Need to Understand Variation to Manage Effectively by Mike Stoecklein – “I believe that much of what I see and hear these days related to lean and lean thinking can be traced back to Dr. Deming, his teachings and the system of profound knowledge – with one exception. I rarely hear anything about ‘understanding variation’.”
  • Lean Leadership Lessons from Costco Wholesale by Jon Miller – “1) Obey the law 2) Take care of our members 3) Take care of our employees 4) Respect our vendors 5) Reward our shareholders. If we do these four things throughout our organization, then we will realize our ultimate goal, which is to reward our shareholders.”
  • photo of 4 penguins marching on a beach in South Africa

    Penguins marching on a beach in South Africa by Justin Hunter.

  • Employees leave managers, not companies [link broken :-(] by Alaister Low – “The key to being able to keep the good employees is not so much the salary you offer them or even the actual work, it is more about how you manage them and how they feel working under you as their manager. Do they feel valued within your team?…”
  • 10 Penalties That I Would Call if I Were a Management Referee by Dan McCarthy – “1. Employee pass interference: Otherwise known as micromanagement, this penalty is for getting in the way of an employee or team of employees that know how to do the job better than the manager. 2. Illegal use of meetings: A meeting with no agenda, no apparent purpose, no process facilitation, little or no collaboration, and no meaningful decisions or action items…”
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Accept Taking Risks, Don’t Blithely Accept Failure Though

For discussion by ASQ’s Influential Voices this month, Paul Borawski looks at Risk, Failure & Careers in Quality.

There is a bias toward avoiding the possibility of failure by avoiding actions which may lead to failure or even any action at all. This is a problem. The need in so many organizations to avoid failure means wise actions are avoided because there is a risk of failure.

Many times the criticism of such cultures however gets a bit sloppy, in my opinion, and treats the idea of avoiding failure as bad. Reducing the impact of failure is very wise and sensible. We don’t want to sub-optimize the whole system in order to optimize avoiding as much failure as possible. But we don’t want to sub-optimize the whole system by treating failure as a good thing to welcome either.

Part of the problem is sloppy thinking about what failure is. Running an experiment and getting results that are not as positive as you might have hoped is not failure. That is going to happen when run experiments. The reason you run PDSAs on a small scale is to learn. It is to minimize the cost of running the experiments and minimize the impacts of disappointments.

Running an experiment and having results that negatively impact customers or result in costs that were not planned may well be failure. Though even in that case calling it failure may be less than useful. I have often seen that a new process that eliminated 10 problems for customers but added 2 is attacked for the 2 new problems. While those new problems are not good that you have a net gain of 8 fewer problems should be seen as success, I would argue, not failure. However, often this is not the case. And the attitude that any new problem is blamed on those making a change, regardless of the overall system impact does definitely hamper improvement.

As I said in a previous post, Learn by Seeking Knowledge, Not Just from Mistakes:

It isn’t an absence of people making mistakes (including carrying out processes based on faulty theories) that is slowing learning. People are very reluctant to make errors of commission (and errors of commission due to a change is avoided even more). This reluctance obviously makes learning (and improvement) more difficult. And the reluctance is often enhanced by fear created by the management system.

The culture I want to develop is one where systems thinking leads to optimizing the overall system. And to the extent that to do so it is wise to take risks that may include some failures taking risks is good. But we need to also use the long known practices to reduce any costs of adverse results.

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

Process Excellence Network Podcast with John Hunter

image of the cover of Managmenet Matters by John Hunter

Management Matters by John Hunter

Diana Davis with the Process Excellence Network interviewed me for their podcast series, process perspective – Management Matters: Interview with author John Hunter (listen to podcast). Additional details on some of the ideas we discussed:

Related: podcasts and interviews on Management MattersBusiness 901 podcast: Two New Deadly Diseases for BusinessDeming’s Management Ideas Today (podcast with John Hunter)

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Business 901 Podcast: Two New Deadly Diseases for Business

I continue to record podcasts as I promote my new book – Management Matters: Building Enterprise Capability. In this podcast I discuss the 2 new deadly diseases facing companies. The second part of the Business 901 podcast will be posted soon.

Links to more information on items discussed in the podcast: Dr. Deming’s 7 Deadly Diseases + 2

Executive pay:

Copyright and Patents

I have created a new subreddit for posting links to interesting items about the new deadly diseases for business.

Related: Interviews for Management Matters: Building Enterprise Capabilityprevious business 901 podcastLeanPub podcast on Management MattersBusiness 901 blog post on the podcast

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Management Improvement Blog Carnival #186

The Curious Cat management blog carnival began in 2006 and it is published twice a month. I also publish a collection management improvement articles on the Curious Cat Management Articles site.

Posts #184 and #185 were summaries of the progress of the 5th annual Curious Cat Management Carnival roundup.

  • We agree… but only because we don’t understand each other by Jason Yip – “By making our understanding explicit, we can highlight our disagreements and come to a resolution and real agreement.”
  • This is a little story about how I learned the right way to manage people (on my first job, age 14) by Woody Zuill – “Lesson Two: Continuous Improvement. Mr. Smith: ‘However, another part of the job is for you to think about what you are doing, and look for better ways to do things. Keep track of your hours, and next Saturday when I pay you for the week I want you to tell me one way to do things better. Look for problems, and think about how we could deal with them.'”
  • photo of a blue dragonfly with wings spread on rice plant

    Dragonfly, at the Banteay Srei temple in Cambodia, by John Hunter

  • Here’s what I learned hanging out with Jason Fried by Dan Shipper – “When a lot of people think of marketing or sales they think of tricks that fool people into buying something. But great marketing doesn’t do that. Great marketing comes from understanding exactly what the customer needs on an emotional level, and showing how your product will satisfy those needs.”
  • User Gemba by John Hunter – “It isn’t enough to know how you intend that customers will use your products or services; you have to get out to the gemba of actual customer use and learn what problems your customers use your products to solve.”
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The Market Discounts Proven Company Leadership Far Too Quickly

Developing a strong executive leadership culture is not a short term effort. It isn’t based on one person. It almost never deteriorates quickly. Yet markets continually overact to minor blips on the long term success of companies. I think this is mainly due to a failure to appreciate systems and a failure to appreciate variation along with plenty of other contributing factors.

The market’s weakness does provide investment opportunities. Though taking advantages of them is much more difficult than spotting a general weakness. While excellent management almost never becomes pitiful overnight (regardless of how often talking heads would have you believe) business can change very quickly due to rapidly changing market conditions. Avoiding the purchases when the underlying business has sustained a significant blow that excellent management will deal with but which will reduce the value of the enterprise going forward is key to taking advantage of the market’s silly overreaction to bad news (or even calling things “bad news” that are not actually bad just not as awesome as some were hoping for).

My positive opinion of Toyota’s management has continued for a long time. A few years ago an amazing number of people were all excited about the “decline of Toyota” and wrote about how Toyota’s ways had to change. I wrote at the time was this is needless hysteria and if Toyota just focused a bit more on applying the Toyota’s management methods they would be in great shape. The problems were due to Toyota’s mistakes in practicing the Toyota Production System not in a weakness of those practices.

Looking at a chart of Toyota’s stock price from 2007 to today it peaks at about $137 in January 2007 and bottoms at $58 in early 2009 and now is at $96. Toyota’s stock price has been priced richly due to respect for management and consistently strong cash flow. As it fell below $75 there you no longer had to pay a premium for excellent management, but that management was still there. I like getting bargains when I buy stocks. One of the things I have learned I am too focused on bargains and I should be more willing to accept less of a bargain to get great management systems – so I have adjusted, and have improved my results. When I can get a great bargain and great management it is wonderful, though sadly a rare occurrence. Toyota’s price now seems reasonable, but not a huge bargain.

The market continually gets overly excited by either actual problems or perceived problems. I wrote about this happening with Netflix 2 years ago. Netflix made some mistakes and faced some tough business issues. The evidence of sound, sensible, effective management vastly outweighed the evidence for management failure – yet there were hundreds of articles about the pitiful failure of Netflix management.

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