Management Blog Posts From August 2006

De-motivation Poster

Here are a few posts from the Curious Cat Management Blog back in 2006.

  • Distort the System by focusing on data improperly – “When people mistake the data proxy for the thing to improve… they focus on improvement of how the data looks not of the system. That is the wrong strategy.”
  • Eliminate Slogans – Text from the poster: “If a pretty poster and a cute saying are all it takes to motivate you, you probably have a very easy job. The kind robots will be doing soon.”
  • Global Economic Data on Manufacturing Value Added by Country – “The United States is by far the largest manufacturing economy and USA manufacturing continues to grow faster than global manufacturing. Manufacturing employment… is decreasing globally while manufacturing output continues to increase globally.”
  • Improving the 401(k) System – “The employee still has the option to decline doing so, but now, without such a choice, they will automatically save for retirement. Great news”
  • Patent Review Innovation – The patent system is broken in the USA. And the USA is trying to force the rest of the world to adopt these bad policies. I even added this as one of my 2 additions to Deming’s Seven Deadly Diseases. Also from August, 2006: Intellectual Property Rights and Innovation.
  • Complicating Simplicity – “Their focus is on designing interfaces that allow people to work effectively on computers – similar, I think, to designing factories to let people work effectively.”
  • Dangers of Extrinsic Motivation – “relying on extrinsic motivation to drive performance is an abdication of management.”
  • Senge and Deming – focusing on the Forces of Destruction, from the New Economics.
  • See more management posts from July 2006, June 2006, all of 2006.

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    Management Improvement Carnival #132

    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, agile software development, systems thinking, lean manufacturing, customer focus…).

    • If management stopped demotivating their employees… by Mark Graban – “Think of a person in your workplace who is considered to have a “bad attitude.” Do you think they started their career or their job at that point? If so, why were they ever hired? … What do you think happened to turn the “live trees” you hired into “dead wood” as Peter Scholtes said?
    • The Poison of Performance Appraisals by Nicole Radziwill – “Progressive organizations might use a 360-degree approach, a la Jones & Bearley, but the underlying dynamic is the same: I’m telling you what I think about you and that’s my evaluation. I’m not familiar with any managers or organizations who can pull this off with impartiality and avoid the many sources of bias that can creep into the process.”
    • One factor at a time (OFAT) Versus Factorial Designs by Bradley Jones – “The most common argument I read against OFAT these days has to do with inability to detect interactions and the possibility of finding suboptimal factor settings at the end of the investigation. I admit to using these arguments myself in print.
      I don’t think these arguments are as effective as Fisher’s original argument.”
    • [removed broken embedded video]

    • Lean Strategy: The Role of Ideal State Thinking by Jamie Flinchbaugh – “One of the opportunities in building a strategy is really understanding the roles that all the different product/services that you offer fit together”
    • Lean UX at work by Jeff Gothelf – “It seems that as a team matures and the trust bonds between the members grow, the rituals of formal process fall away in favor of less-prescribed, more “understood” cadences.”
    • TryStorming by Lee Fried – “stop brainstorming and start “trystorming (actual simulation or creation of the idea).” This meant putting away the flip charts and sticky notes and getting out on the floor and getting our hands dirty. Having the 3D, tangible “mock-ups” allowed the teams to quickly understand each others ideas and iteratively improve the solution in a way that would not be possible on paper.”
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    One factor at a time (OFAT) Versus Factorial Designs

    Guest post by Bradley Jones

    Almost a hundred years ago R. A. Fisher‘s boss published an article espousing OFAT (one factor at a time). Fisher responded with an article of his own laying out his justification for factorial design. I admire the courage it took to contradict his boss in print!

    Fisher’s argument was mainly about efficiency – that you could learn as much about many factors as you learned about one in the same number of trials. Saving money and effort is a powerful and positive motivator.

    The most common argument I read against OFAT these days has to do with inability to detect interactions and the possibility of finding suboptimal factor settings at the end of the investigation. I admit to using these arguments myself in print.

    I don’t think these arguments are as effective as Fisher’s original argument.

    To play the devil’s advocate for a moment consider this thought experiment. You have to climb a hill that runs on a line going from southwest to northeast but you are only allowed to make steps that are due north or south or due east or west. Though you will have to make many zig zags you will eventually make it to the top. If you noted your altitude at each step, you would have enough data to fit a response surface.

    Obviously this approach is very inefficient but it is not impossible. Don’t mistake my intent here. I am definitely not an advocate of OFAT. Rather I would like to find more convincing arguments to persuade experimenters to move to multi-factor design.

    Related: The Purpose of Factorial Designed ExperimentsUsing Design of Experimentsarticles by R.A. Fisherarticles on using factorial design of experimentsDoes good experimental design require changing only one factor at a time (OFAT)?Statistics for Experimenters

    Posted in Data, Design of Experiments, Popular, Quality tools, Science, Six sigma, Statistics | Tagged , , , , , , | 6 Comments

    Management Improvement Carnival #131

    Antelope Island State Park - Great Salt Lake

    Photo by John Hunter at Antelope Island State Park, Utah

    The management improvement blog carnival is published 3 times a month (though not this month – May 10th was missed) with select recent management blog posts. Curious Cat also collects articles on improving management practices, you can subscribe via RSS to new article additions.
    See more photos from my trip to Utah, including Antelope Island State Park in the Great Salt Lake.

    • Drive out Fear by Wally Bock – “Fear corrodes morale and team spirit. Fight or flight rules the day, with team members hiding from the rampaging saber-toothed tiger of a boss, throwing blame at each other and hoping, to borrow from Winston Churchill, that the crocodile will eat them last.”
    • 8 Ways to Deal with Employee Personal Problems by Harwell Thrasher – “Every employee is an individual with their own personal strengths and issues. You can’t expect to take advantage of an employee’s strengths without occasionally running up against some of the issues.”
    • Three Requirements for Managing by Fact by Jon Miller – “1) decision on the criteria of relevance, 2) testing of hypothesis and conversion of opinion into tested fact, and 3) arriving at consensus through clash and conflict of divergent opinions.”
    • Rapid PDCA with 3P by Mark Rosenthal – “The idea is to be able to quickly and cheaply try out, and experience, a process (or product) so that problems can be surfaced, opportunities for improvement can be seen, and the PDCA cycle can be turned far more rapidly than would otherwise be possible.” [One important key to excellent results using PDSA is rapid, quick cycles through the PDSA cycle (many organizations turn the PDSA cycle much too slowly) – John]
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    Respect People by Creating a Climate for Joy in Work

    Respect for people sure sounds great. And most of us have plenty of experience with organizations that dis-respect people continuously (both employees and customers). So what does respect for people mean at the core? For me:

    A system that lets people take joy in work and fixes root causes instead of finding people to blame.

    A huge part of the disrespect shown by companies to employees is through direct action. But another huge part is forcing people to deal with horribly bad processes that just haven’t been fixed. Most TSA employees have to feel horrible about what they are being required to do. This will often then result in them lashing out in other ways (because they try to hide from those feelings [no-one wants to consciously go to work everyday knowing what they are doing is counter to their core beliefs] – but in doing so they just deflect the feelings into other places). Dealing with these bad processes drives employees crazy year after year.

    For me creating a climate where people can take pride in what they do everyday is the key. It isn’t being “nice” to everyone. What matters is providing a workplace where intrinsic motivation flourishes. Eliminating bad practices (paying attention to HiPPO instead of the best idea, huge amounts of paperwork instead of productive action, inflexible and overly prescriptive policies, not trusting employees, providing managers that don’t know how to manage people, embarrassing employees in from of others…) is necessary but insufficient.

    Beyond eliminating bad practices though we need to provide a climate where people can flourish. This requires providing meaningful work (people need to know how they contribute, how what they do fits into providing value). Providing managers that know how to manage people is a huge step in the right direction, but often the systems to promote people have little success at selecting those that will excel in this area.

    Another practice to respect people, is to give them the training and resources to do what you ask them to do. It isn’t respectful to expect people to take heroic action to overcome the companies poor practices. I can go on and on, and do in my posts about respect for people.

    Related: The Two Pillar of the Toyota Way: continuous improvement and respect for peopleHire People You Can Trust to Do Their Job
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    Management Improvement Carnival #130

    The 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 Improvement guide since 1996 (Deming, lean thinking, agile software development, respect for people, leadership…).

    • Autonomy: condition for continuous improvement by Rob van Stekelenborg – “Teams that should take the responsibility over a (part of a) process should at the same time also be given the opportunity to actually improve something within their area of responsibility… That the team is allowed to experiment with suggestions that were put forward…”
    • Laying Off Hands, Losing Brains by Kevin Meyer – “Remember, there’s a brain attached to that pair of hands. Value can be created even if the hands aren’t being used at the moment.”
    • Lunch by Joel Spolsky – “Ten years ago Michael and I set out with the rather ambitious goal of making a great place to work. Eating together is a critical part of what it means to be human and what it means to have a humane workplace, and that’s been a part of our values from day one.”
    • Tools, Rules, Principles, and Lean Wallpaper by Art Smalley – “You need a critical mass of people that have both the right thinking patterns (know what) but also the right technical knowledge (know how)… Unfortunately I don’t see as much advancement on the actual technical “know how” dimension of the equation and until that problem is solved actual performance results will not match up with the associated performance expectations.”
    • How to succeed in business by doing nothing by Michael Blastland – “the fashion for corporate dashboards displaying up-to-the-minute information about company performance makes me wonder – will bosses everywhere be staring at the numbers, twitching with every down, feeling the pulse race with every up, on the phone demanding action with every flicker on the dial?” [tampering is a common problem – John]
    • Exorbitant Executive Salaries = Resources Wasted On Those Who Don’t Need Them by Aaron Anderson – “The question I raise here is as to if the monies beyond a certain level of salary might not be better spent on developing a pool of resources that can be utilized to generate organizational slack that can invigorate invention, creativity, and lead to new ways of doing in an ongoing way that allows people to break free of the shackles of the long standing tradition or status quo.”
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    Sometimes Micro-managing Works

    Sometimes micro-managing works. That doesn’t mean it is a good strategy to replicate. If you benchmark Apple you might decide that you should have a tyrannical obsessive involved CEO who is directly involved in every detail of products and services. After all Apple is now the second most valuable company in the world with a market capitalization of $324 billion (Exxon Mobil is the top at $433 billion) and a huge part of that is Steve Jobs.

    Nice quote from How to beat Apple

    Apple products & services that Apple does well are the ones that Steve Jobs uses

    An interesting point, and really it doesn’t matter if it is completely true it illustrates a point that Steve Jobs is the rare leader that helps by being completely involved in nearly every detail. And at the same time he provides strategic leadership rivaled by very few others. But if you try to benchmark this (simplistically – as most benchmarking is done) you will fail. This works with Steve Jobs and maybe a handful of other people alive today. But with most leaders and organizations it would fail completely.

    On another point Jason Kottke makes, I would normally suggest the opposite approach:

    Openness and secrecy. Competitors should take a page from Apple’s playbook here and be open about stuff that will give you a competitive advantage and shut the hell up about everything else. Open is not always better.

    I think you may well be better off doing the opposite and countering Apple’s secrecy with openness. It would depend on your organization, but, I think you might be better off trying to exploit Apple’s weakness instead of trying to do what they do well. Now things are never this simple but on a cursory level I think that is where I would look.

    Google now has a market cap of $171 billion, Apple is almost double that – just 3 years ago Apple first exceeded Google’s value.

    Related: Leadership is the act of making others effective in achieving an aimThe CEO is Only One PersonJeff Bezos Spends a Week Working in Amazon’s Kentucky Distribution CenterRespect for PeopleDee Hock on Hiring

    Posted in Creativity, Customer focus, Innovation, Management | Tagged , , , , , , | 5 Comments

    Factorial Designed Experiment Aim

    Multivariate experiments are a very powerful management tool to learn and improve performance. Experiments in general, and designed factorial experiments in particular, are dramatically underused by managers. A question on LinkedIn asks?

    When doing a DOE we select factors with levels to induce purposely changes in the response variable. Do we want the response variable to move within the specs of the customers? Or it doesn’t matter since we are learning about the process?

    The aim needs to consider what you are trying to learn, costs and potential rewards. Weighing the various factors will determine if you want to aim to keep results within specification or can try options that are likely to return results that are outside of specs.

    If the effort was looking for breakthrough improvement and costs of running experiments that might produce results outside of spec were low then specs wouldn’t matter much. If the costs of running experiments are very high (compared with expectations of results) then you may well want to try designed experiment values that you anticipate will still produce results within specs.

    There are various ways costs come into play. Here I am mainly looking at the costs as (costs – revenue). For example the case where if the results are withing spec and can be used the costs (net costs, including revenue) of the experiment run are substantially lower.
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    Posted in Design of Experiments, Management, Manufacturing, Process improvement, Quality tools, quote, Science, Six sigma, Statistics | Tagged , , , , , , , , , | 4 Comments

    Management Improvement Carnival #129

    Large rock outcropping along the beach

    The beach along Hole in the Wall Trail in Olympic National Park by John Hunter.

    The Curious Cat Management Blog Carnival selects recent management blog posts 3 times each month. You may submit a link to the management Reddit to have it considered for inclusion in our carnival

    • Let’s Dance by Ron Pereira – “I am supremely confident injecting a little fun with all the seriousness of life and business will do nothing but help.”
    • How To Hold A Lean Meeting by Matt May – “In one to three sentences, define the overall purpose of the meeting… Goal #5: Develop a preliminary implementation plan. Who does what by when. Closing: Plan next steps. Decide on key follow-up plan.”
    • 5 Wrong Reasons To Apply Kanban – “If you expect that you will replace failed retrospective meetings with a nice and simple ‘stop the line’ rule, you’ll fail, since it is even harder than scheduled regular retrospectives and demands even higher level of self-discipline.”
    • 6 Principles for Rebuilding Industry by Jon Miller – “Principle 3. Remember that goods and services are inseparable… Principle 5. Put the focus back on the people on the gemba…
    • How to get a real education by Scott Adams “The kids in this brainy group are the future professors, scientists, thinkers and engineers who will propel civilization forward. But why do we make B students sit through these same classes? That’s like trying to train your cat to do your taxes—a waste of time and money. Wouldn’t it make more sense to teach B students something useful, like entrepreneurship?”
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    Problems with Management and Business Books

    We really need to change how we improve the practice of management. Far too often management strategies are just the latest fad from some new book that successfully marketed an idea. The marketing effectiveness of a book, or consultant, has very limited correlation to their ability to improve management, in my experience. It is often true that they make very good keynote speakers, however. So if you want an entertaining keynote speaker looking at the authors of the best selling business books may make sense. But if you want to improve management, I don’t see much value in doing so.

    Year after year we have the same basic business books repackaged and marketed. They present a magic bullet to solve all your problems. Except their bullet is far from magic. Usually it does more harm than good.

    They amazingly oversimplify things to make their bullet seem magic. This also fails miserably in practice. There are usually not good management options that are simple and easy. Usually the answers for what should be done is a lot of “it depends,” which people don’t seem to like.

    Authors fail to place their book (or their trademarked strategy they hope turns into a movement/fad) in the appropriate context. Most books just take a few good ideas from decades old practices add a new name and leave off all references to the deep meaning that originally was there. I guess quite often the authors don’t even know enough about management history to know this is the case; I guess they really think their minor tweak to a portion of business process re-engineering is actually new. This also would make it hard for them to place their ideas within a management philosophy.

    On a related note, I find it interesting how different the lean manufacturing and six sigma communities are online (and this has been going on for more than a decade). One of the problems with six sigma is there is so little open, building on the practices of six sigma. Everyone is so concerned with their marketing gimmick for six sigma that that don’t move forward a common body of work. This is a serious problem for six sigma. Lean manufacturing benefits hugely from the huge community of those building openly on the body of knowledge and practice of lean. You can find 10 great lean manufacturing blogs without trouble. You will have difficulty finding 3 good six sigma blogs (and even those spend most of the time on other areas – often lean thinking).
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    Posted in Books, Deming, Lean thinking, Management, Six sigma | Tagged , , , , , , , | 12 Comments