Rethinking or Moving Beyond Deming Often Just Means Applying More of What Dr. Deming Actually Said


Don Reinertsen – Is It Time to Rethink Deming? [the broken link was removed] AGILEMinds

I feel very strongly about the value of Deming’s ideas. I am glad people challenge those ideas and try to push forward management thinking. Helping us manage organizations better (to get better results and allow people to better enjoy their jobs and lives) is why I value Deming’s ideas. To the extent we find better ideas I am very happy. I understand I will disagree with others on the best ways to manage, and believe healthy debate can be productive.

What Don Reinertsen discusses in the video, about special and common cause is not the best way to look at those ideas, in my opinion (though I would imagine it is the most common view). For data points that are common cause (within the control limits and not a special cause pattern) it is most effective to use common cause tools/thinking to improve. For indications of special cause (points outside the control limits or patterns in the data, such as continually increasing results that indicate a special cause) it is most effective to use special cause tools to improve.

This does not mean that a point outside the control limits is caused by a special cause (also know as assignable cause). It is just best to use special cause tools and thinking to address those data points (and the reason this is true is because it is most likely there is an assignable cause). The control limits do not define the nature of the point, they define the type of improvement strategy that should be used.

Don also says repeatedly that you don’t “respond to random variation” in Deming’s view. That is accurate. But then he implies this means you don’t address system performance, which is not. You work on improving systems (that are in control) by improving the system, not by responding to individual common cause data points (random variation) as if it were assignable cause variation.

The purpose of the control chart (that Shewhart developed) was to help you most effectively take action (knowing if special cause thinking, or system improvement, was the best improvement strategy). The control chart shows if the results are in control and tells you that the system is preforming consistently (and identifies a special cause so special cause tools can be used immediately, this is important because special cause improvement strategies are time sensitive). It tells you nothing about if the results are acceptable.

Continual improvement was also central to Deming’s management philosophy (based on the business value of the many improvement options available in every organization). For Deming this meant working on improving the system, if the results are in control, instead of trying to deal with finding a specific assignable cause for one data point and acting on that. If the issue is one of the system performance (no indication it is a special cause) the most effective strategy to get better results is to improve the system, rather than approach it as a special cause issue (examining individual data points, to find special items in that event to be improved). You can use special cause thinking, even where system improvement thinking would be better. It will work. It is just not very effective (improvement will be much slower) compared to focusing on system improvement.

I agree with Don that the United States mentality, not only in nuclear plants but everywhere, is to apply special cause thinking as the strategy for process improvement. This is one the areas Deming was trying to change. Deming, and I, think that setting your improvement strategy based on a common cause (system improvement) or assignable/special cause (learn what is special about that one instance) is the most effective way to achieve the best results. We believe in continual improvement. We believe that the effective way to improve, when a system is in statistical control, is by focusing on the whole systems (all the data) not assignable cause (special cause) thinking where you look at what is special about that bad (or good) individual result.

The economic consideration of whether the costs of improvements are worth the benefit is sensible (and I do not see Dr. Deming arguing against that). That is separate from the best method to improve. For Deming the best method to improve means using special cause thinking for assignable cause issues and common cause thinking for systems issues.

The idea of where to focus improvement efforts is not something Dr. Deming made as clear as he could have, in my opinion. So I see the argument of Deming not prioritizing where improvement should occur voiced occasionally. This is a weakness in Deming’s content, I believe, more than his philosophy (but I can understand it causing some confusion).

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Management Blog Posts From October 2006

I have selected a few posts from the Curious Cat Management Blog back in October 2006 for those of you who were not reading this blog then.

  • Why Pay Taxes or be Honest – “I don’t think acting illegally, immorally, unethically is excusable just because lots of other people are… It is sad how bad the behavior is that is considered acceptable.”
  • Hiring the Right Workers – “The job market is an inefficient market. There are many reasons for this including relying on specifications… Hiring is one of the area I think we could use some real innovation. I think much more flexibility would help.” I don’t feel as though any real progress has been made on better hiring in the last 4 years.
  • Righter Performance Appraisal – I know it is a silly title, but it is still one of my favorite blog post titles 🙂
  • photo of Longwood Gardens

    Longwood Gardens. Delaware by John Hunter.

  • Deming Institute Conference: Tom Nolan – there are many important elements to managing well. Turning the PDSA cycle quickly is close to the top of those elements.
  • Google Shifts Focus – “Now that they have a bunch of decent, but not really great products, adjusting and taking the opportunity to improve those product makes sense.” You might think this is about the new initiatives Google’s new CEO, Larry Page, has been discussing but it isn’t. It is about one of Google’s previous efforts to focus and eliminate less important “distractions.”
  • Simple Cell Phone – “I don’t think these features are only desired in poor countries, but I am not basing that on any market research just my opinion. Complex devices with many points of failure (both technical failure and user inability to figure it out) should not be the only option.
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Management Improvement Carnival #146

The Curious Cat management blog carnival is published 3 times a month with hand picked recent management blog posts. I also collect management improvement articles through Curious Cat Management Articles, you can subscribe via RSS for new article additions.

  • PDCA by Lee Fried – “By approaching all work through the Plan, Do, Check and Adjust (PDCA) cycle is incredibly powerful and transferable. It allows everyone to think and talk about their work in a consistent way and it creates a repeatable, data driven approach to improvement.”
  • The Death of PDCA – “Our planning cannot be isolated. In fact, we no longer own our standards. They are only validated through customer interaction. The customer cannot be introduced at the end of the cycle, he must be at the beginning and part of the entire cycle. We must share a Co-Destiny with our customer. CDSA may be the replacement for PDSA.” [I don’t actually believe there is any death of PDSA, it is a hugely valuable strategy and will remain one, but this is an interesting post – John]
  • Photo of Arches National Park

    Arches National Park by John Hunter, Curious Cat Travel Photo Blog

  • Going to the Gemba in a Lean Office – “Gemba walks are for a purpose. Initially you are learning to see. The office looks normal to you. But as you start Kaizen, you begin to see the enormous volumes of waste in your office.”
  • The Case for Project Management by Mike Cottmeyer – “I’ve been an agile project management guy from the beginning, but I am becoming increasingly convinced that we need to be teaching teams, not just how to self-organize, but how to effectively manage delivery… product or project delivery, I don’t care which.”
  • All you really need to know about courage and risk in your career by Jamie Flinchbaugh – “So many individuals want to do more, push harder, say what’s on their mind, and take some risks. But something’s stopping them. But it’s the courage and risk-taking that leads to breakthrough ideas, to fantastic gains, and to overall greatness.”
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The Impact of Leadership on Business Outcomes

photo of Joe Folkman

Joe Folkman

Guest post by Joe Folkman

Have you ever been part of an organization where things were proceeding smoothly, where goals were achieved, people were busy and the organization was doing well? Then, a new leader came and everything suddenly changed for the better. The energy level of employees went up substantially, pride in the organization increased, the effort and dedication of individuals jumped, bold objectives were enthusiastically accepted and even greater results were achieved. The differences were not only measurable by the accountants, but everyone could feel it.

Perhaps you had the opposite experience where things were things were going along smoothly and a new leader was introduced and things quickly began to fall apart. High performers quit, conflicts became more apparent, work seemed much less important and there was no fun. Colleagues skulked into corners, not wanting to be engaged. Overall satisfaction decreased. Grousing and carping criticism of the leaders became rampant. People receiving promotions were chosen because of politics, not performance. Management decisions felt arbitrary and unfair. Results began to slide, and employees became the cause of the problems as much as the economy or market conditions. Key employees were laid off while the remaining people were asked to carry a bigger load. Results continued to decline, and your job felt increasingly harder and you found yourself beginning to think about quitting.

Those who have experienced great leadership or poor leadership have felt the difference. Could these changes have been predicted? Are there clear correlations between the effectiveness of a leader and the success of an organization?

Case Study on the Impact of Leadership on Customer Satisfaction
A large telecommunication company was focused on an effort to improve customer satisfaction ratings. The company wanted to know which factors impacted the customer satisfaction. A group of 81 leaders received 360 feedback from their immediate managers, peers, direct reports and others. The leadership effectiveness of each manager was evaluated by a 49 item assessment. Based on the overall rating from the 49 items, managers were divided into five groups, from leaders at the bottom 10th percentile (the worst leaders) to those at the top 10% (the best leaders).

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Deming Prizes for 2011 go to Companies Based in India, Taiwan and Thailand

image of the Deming Prize medal

The Union Japanese Scientists and Engineers (JUSE) has awarded the Deming Prize to 3 companies in 2011:

Follow the links I included for the companies to see a bit about their management philosophies. As has been the case since 2000, India and Thailand again did well. Between them the are home to 27 of the 38 award winning organizations.

I have moved to Malaysia and have started some work in Singapore helping organization improve management performance, maybe we can get those 2 countries represented in the coming years (this isn’t a short term effort). I may also do some work in other parts of Asia and Australia.

Organizations receiving the Deming Prize since 2000, by country. Prior to 2000, nearly all winners were from Japan:

Country Prizes
India 17
Thailand 10
Japan 7
USA 1
Singapore 1
China 1
Taiwan 1

The 2011 Deming Prize for Individuals went to Mr. Masamitsu Sakurai, Chairman, Ricoh Company, Ltd. (Japan). Previous recipients include: Kaoru Ishikawa, Genichi Taguchi, Shoichiro Toyoda, Hitoshi Kume and Noriaki Kano.

Related: 2010 Deming Prize2009 Deming Prize2008 Deming Prize: Tata SteelDeming Prize 20072006 Deming Prize

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Networking is Valuable But Difficult to Quantify

Networking works incredibly well. Unfortunately it isn’t as simple as peddling your bike where you want to go. The benefits of networking are unpredictable and not easy to control (to specifically target – you can do this, it just has fairly uncertain results). So networking can seem like you put in all this effort peddling up hill day after day, month after month, year after year, and yet you never get to see the beautiful rainbow or end up at a wonderful ocean beach.

However it is well worth it, especially for those that have valuable skills and experience. To some extent it might work just to get opportunities anyone with a decent attitude could get. But networking is most effective, I think, when you have special skills that those in the community can share with those that have opportunities and give you a decent shot at a job. A big reason this works is that the job market is very inefficient – thus networking can greatly increase your odds (if it were efficient this would matter much much less).

I have been able to get jobs and consulting as a result of networking. It didn’t give me jobs, I couldn’t have gotten otherwise, but it allowed to know of opportunities, to be sought out by others, and to be seriously considered when I approached others.

I have long believed it is very valuable to build a personal brand online (for knowledge workers anyway). The return for doing so may well be difficult to measure. But it can definitely help open doors and give you opportunities for jobs and consulting.
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Management Improvement Carnival #145

The Curious Cat Management blog carnival highlights recent management blog posts 3 times each month. The posts generally focus on the areas I have focused on in the Curious Cat Management Guide since 1996 (Deming, evidence based management, lean manufacturing, agile software development, systems thinking…).

photo of me with a blackboard in my father's office

Me in my father's office, drawing by John, photo by Bill Hunter

  • Why Startup Hubs Work by Paul Graham – “The problem is not that most towns kill startups. It’s that death is the default for startups, and most towns don’t save them… Both components of the antidote—an environment that encourages startups, and chance meetings with people who help you—are driven by the same underlying cause: the number of startup people around you.” [Creating entrepreneurship hubs is extremely important economically. Many countries are very interested in making this work for them. Doing so is not easy and still is a huge advantage the USA benefits from in the Valley and also NYC, Boston… – John, previous post: The Future is Engineering]
  • “Management By Walking Around” vs. “Gemba Walks” by Mark Graban – “Study the Toyota model. Read Norman Bodek’s article. Read Quint Studer’s work on “rounding for outcomes” (a great thing to read whether you are in healthcare or not). Studer emphasizes stopping to truly engage with employees, not just slapping them on the back. Bonus – read Jamie Flinchbaugh’s IndustryWeek piece on effective gemba walks.”
  • What I Learned From Steve Jobs by Guy Kawasaki – “Customers cannot tell you what they need… Changing your mind is a sign of intelligence…”
  • About Spread by Lee Fried – “While spreading standard work over time is essential to increasing the rate of improvement of an organization it will never occur or sustain without simultaneously putting in place a Management system.” [this theme is repeated over and over, without a management system the gains made are real, but small fractions of what is possible when management thinks and acts fundamentally differently – John].
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You’ve Got to Find What You Love

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.

– Steve Jobs

Watch this great commencement speech by Steve Jobs at Stanford in 2005.

We lost a great person today, when Steve Jobs died at the age of 56. His words are just as important today: you have got to find what you love to do. Keep looking until you find it. It won’t necessarily be easy to do. But life is too short to waste merely getting by.

My father found what he loved and pursued that throughout his life. He also died young. They both died young, but they both had great lives because they took charge to make the most of their lives. By doing what they loved they made the world a better place for many others, and themselves. Take that message to heart and make your life the best it can be.

Related: Quotes from Steve JobsPeter ScholtesPositivity and Joy in WorkBuild an Environment Where Intrinsic Motivation FlourishesRemembering Bill Hunter

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Interviewing: I and We

In response to: say “I” — not “we” — in your interviews

If you are a manager you need to lead teams, lead projects and improve work systems. In an interview I believe you need to say specifically what you did but also talk about what the team accomplished. A manager needs to have successful project and make other people successful. To me the important thing is getting great long term results, not doing lots of tasks themselves. Often figuring out the right leverage points to work on is difficult but it doesn’t have to be a large volume of work, just the right decisions on where to make improvements.

Sometimes (often, for me, but maybe I have more difficulty explaining it than I should) these ideas are hard to convey to others. It is similar to answering hypothetical questions where, the way to “handle” the issue raised is to avoid getting into that mess in the first place. We were able to success not because of 3 specific actions I took during the project but because of the system I put in place and cultivated for years that allowed the team to succeed. But some people have trouble connecting long term system improvements to current project results.

As a manager my main focus is on building capacity of my organization to succeed over the long term. That greatly reduced any fire-fighting I have to do. Of course for many interviewers great tales of fire-fighting play better than I didn’t really have to do much to make x,y and z projects successful because I set the stage over years creating a system that works well.

Creating systems that work well often isn’t tremendously exciting and tales of creating systems that avoid disasters seem boring. I didn’t have to be heroic isn’t as sexy as and I was a hero in this way 3 months ago and then last month I saved us from disaster when… If I am interviewing, I would want to ask why you have to keep being a hero, but I don’t think most people think that way.

If you just talk about what I did it also can confuse interviewers, I think. Those things are often not directly tied to accomplishing some business need. Creating the right systems which allow great results to be attained often isn’t obvious why it matters. It is indirect and not nearing as obvious as fire-fighting behavior what the benefit is. Most organizations are not used to the value of creating well performing systems so they just think of management doublespeak that accomplishing nothing (since most such talk, respect for people, for example, is just talk and not of much value).

To show that the improvements made have real results I think you then have to switch follow “I did x,y,z’ with “which allowed our team to accomplish a,b, c.” Unless you really did have to do most things yourself instead of creating the systems that allow others to perform well. In which case it makes it easier to say what I did, but should cause those doing the interviewing to ask why you hadn’t set up better systems (at least it would if I were the one conducting the interview).

Related: How to Get a New Management Strategy, Tool or Concept AdoptedWhy work doesn’t happen at workBuild an Environment Where Intrinsic Motivation FlourishesCircle of Influence

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Management Improvement Carnival #144

Kevin Meyer is hosting Management Improvement Carnival #144 on the Evolving Eexcellence Blog. Posts he chose to spotlight include:

Related: Management RedditCurious Cat Online Management Library

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