Technological Innovation and Management

Technological innovation brings great opportunity for improving results and our quality of life. But transforming potential benefits into real results comes with many challenges.

ASQ has asked their Influential Voices to explore the idea of the fourth industrial revolution: “this new era is founded on the practical use of technological innovations like artificial intelligence, big data, robotics, and the Internet of Things (IoT).”

For many years GMs huge investment in robotics in the 1980s ($billions) has been an example of how pinning hopes on technology often doesn’t produce the desired results. I think that a capable management system is needed to make technological innovation as successful as it needs to be.

In this decade we are finally reaching the point where robotics is really making incredible strides. Robotics has provided huge benefits for decades, when used appropriately, but the ease of use and benefits from robotics have greatly increased recently.

I think robotics is going to be an incredibly powerful source of benefits to society in the next 20 years. Amazon is very well placed to profit in this area. Several other companies (Toyota, Boston Dynamics*, Honda, SoftBank…) are likely to join them (though which will be the biggest winners and which will stumble is not obvious)

Cliff Palace historical ruins

Photo by John Hunter of Cliff Palace (built in the 1190s), Mesa Verde National Park.

I am less confident in the Internet of Things. It seems to me that much of the IoT effort currently is flailing around in ways similar to GMs approach to robotics in the 1980s and 1990s. There is huge potential for IoT but the architecture of those solutions and the impact of that architecture on security (and fragile software that creates many more problems than it solves) is not being approached wisely in my opinion. IoT efforts should focus on delivering robust solutions in the areas where there is a clear benefit to adopting IoT solutions. And that needs to be done with an understanding of security and the lifecycle of the devices and businesses.

I think it will be much wiser to have an internet hub in the business or home that has all IoT traffic route through it in a very clear and visible way. Users need clear ways to know what the IoT is trying to do and to have control to determine what is and what is not sent out from their system. Having devices that share information in a non-transparent way is not wise. This is especially when those devices have cameras or microphones.

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Lessons on Competition from Mother Nature

An interesting short article by Joel Barker with some ideas to think about, Surviving the Fittest: New Lessons on Competition from Mother Nature

As a result of this emerging body of research, we now must reexamine our competitive paradigm and factor in the new information. It is now clear that ‘the fittest’ not only don’t win all the time, but are only a piece of the more complex system. This information can lead to new strategies for small companies and new insights for the big companies that presently dominate their industries.

The idea that what is winning right now is best is flawed. What is successful now is dependent on the larger system and the conditions that impact that system. In the news the last few days British Airways had to shut down flights worldwide. This has happened numerous times for major airlines in the last few years.

view from a train in Rocky Mountain National Park with tree and snow covered mountains in the background

By John Hunter, see more of my trip to Rocky Mountain National Park.

The systems that they settled on may seem to be working well for years and then suffer catastrophic failures. Why did they accept systems that could fail so completely? Given the frequency it is happening numerous competitors are choosing solutions that are too fragile. And it isn’t just one organization doing it, numerous huge airlines (United, Delta, British Airways, Southwest) have found themselves caught in a situation where they fail to deliver what customers pay for due to so complete a failure of their IT system that they cannot fly any planes many hours in a row.

I suppose this could be evidence that designing an IT system for a huge airline is not something that can be done with the reliability we expect from most things (that the business doesn’t have a day every decade or two where they business just can’t operate that day). But I doubt it. It seems much more likely the existing system creates organizations that are more focused on other things than building a reliable, robust IT infrastructure.

A post I wrote on my Curious Cat Science and Engineering blog a few years ago, 500 Year Floods, looked at the problem of making judgements about unknown systems. The concept of 100 and 500 year floods is to help us make decisions about long term planning and risks. Looking at an area to build a building (or city) can be aided by history and seeing what the area has experienced in the past. But you can’t just assume the future will be the same as the past. Systems change over time. What worked in the past doesn’t necessarily work well in the future.

And as I mentioned in my article, our evidence and understanding also changes (hopefully by us gaining more knowledge and gaining a clearer understanding as we learn more). Thinking systemically takes into account the impact of interactions on results. Results are not independent of the circumstances.

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Improving Management with Tools and Knowledge

Too often today I hear people disparaging management tools/concepts (PDSA cycle, mistake proofing, flowcharts, design of experiments, gemba…). The frequently voiced notion is that tools are being applied and not helping improve management in the organization.

But it seems to me using these tools re-enforce the best practices of management improvement. Yes, ignoring the underlying principles (while applying tools and concepts) drastically limits how successful an organization will be in improving management practices (and limits the results the organization will achieve). But using the tools is not the problem. Using the tools is a necessary but not sufficient part of the process to improve.

What is needed is to use the tools with engaged people that are continually learning and adjusting the management system based on their increased understanding of the organization as a system. Using management tools effectively (if you are unsure of what those tools are, read the posts on this blog discussing many management improvement tools) supports gaining insight into the underlying management improvement principles.

It is important to understand there are fundamental concepts that connect and reinforce each other. And those organizations that are successful are using management tools and continually building their understanding of the underlying principles.

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Organizations as Social Systems

Organizations are social systems made up of people.

Social systems often amplify what happens.

If good things happen, more good things often follow.

When bad things happen, more bad things often follow.

To improve it is wise to this into account and design elements of the management system to encourage the amplification of what is good and that seeks to stop what is bad from being amplified.

Building in elements to stop the negatives from reinforcing and creating more negatives is important.

Building in elements to support and enhance positives so that they led to more positive results is also useful.

people at seminar listening to speaker at a flipchart

John presenting a Deming seminar in Singapore.

Related: Podcast with John Hunter on Building Organizational CapabilityWhat to Do To Create a Continual Improvement CultureUsing Incentives to Guide Social System ImprovementsBuilding a Great Software Development Team

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Robots for Health Care from Toyota

Japan has an extremely rapidly aging population. This increases the need for health care and for assistance with everyday tasks from the elderly. Japan is also among the leading countries for developing robots for health care and living assistance.

I have written about the efforts to have robots fill some needs in Japan previously, on this management blog and also my partner Curious Cat Engineering blog: Toyota Develops Thought-controlled Wheelchair (2012), Toyota’s Partner Robot (2007), Toyota Human Support Robot (2012) and Pepper, A Social Robot from Softbank (2017).

Most often innovation efforts take the form of understanding the jobs your customers are using your products and service for now and developing new solutions to delight those customers. This is difficult for companies to pull of successfully.

Occasionally innovation involves meeting completely new needs of customers. For example Toyota started as a loom company and is now known as a car company. Making such a radical change is not often successful.

Will Toyota be able to add robots to the products it produces successfully? I believe they have a chance. But it won’t be easy. Obviously (as shown in posts on my blog for the last ten years) I respect Toyota’s management system. That gives them a chance to be successful. The product development system is going to be critical (ideas found in: Toyota Engineering Development Process and How to Develop Products like Toyota).

Toyota Sends Robots To The Hospital

Toyota demoed its Welwalk WW-1000 robot, a machine that can rehabilitate stroke victims some 60% faster than regular physiotherapy. The company also showed glimpses of other robotic technologies, for instance a Human Support Robot that picks up stuff, draws curtains, and performs other menial tasks a bedridden patient would normally need to call a nurse for.

Toshiyuki Isobe, chief of Toyota’s robotics lab, said that the company is not fixated on being a car company. “Toyota started as a maker of looms, and only got in to cars later,” Isobe said. “Our mission always was to make practical things that serve a purpose. If there is a need for mass produced robots, we’ll make them.”

image of the Toyota support system for rehabilitation of walking in stroke victims

image of the Toyota Welwalk system

Related: Innovation at ToyotaMore on Non-Auto ToyotaDelighting CustomersToyota Engineers a New Plant: the Living Kind (to fight pollution)

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Interviews on Software Testing

I haven’t added a new post here recently. One of the things that has been keeping me busy is putting together some interviews on software testing. Here are excerpts from 3 of the interviews:

Testing Smarter with Alan Page

Hexawise: During your 20 years at Microsoft you have been involved in hiring many software testers. What do you look for when choosing software testers? What suggestions do you have for those looking to advance in their in software testing career?

Alan: The biggest thing I look for in testers is a passion and ability to learn. I’ve interviewed hundreds of testers, including many who came from top universities with advanced degrees who just weren’t excited about learning. For them, maybe learning was a means to an end, but not something they were passionate about.

The testers who really impress me are those who love to learn – not just about testing, but about many different things. Critical thinking and problem solving are also quite important.

As far as suggestions go, keep building your tool box. As long as you’re willing to try new things, you’ll always be able to find challenging, fun work. As soon as you think you know it all, you will be stuck in your career.

Hexawise: It seems to me that testing games would have significant challenges not found in testing fairly straightforward business applications. Could you share some strategies for coping with those challenges?

Alan: Combinatorial testing is actually pretty useful in game testing. For example, consider a role-playing game with six races, ten character classes, four different factions, plus a choice for gender. That’s 480 unique combinations to test! Fortunately, this has been proven to be an area where isolating pairs (or triples) of variations makes testing possible, while still finding critical bugs.

Beyond that, testing games requires a lot of human eyeballs and critical thinking to ensure gameplay makes sense, objects are in the right places, etc. I’ve never seen a case where automating gameplay, for example, has been successful. I have, however, seen some really innovative tools written by testers to help make game testing much easier, and much more effective.

Testing Smarter with Dorothy Graham

Hexawise: When looking to automate tests one thing people sometimes overlook is that given the new process it may well be wise to add more tests than existed before. If all test cases were manually completed that list of cases would naturally have been limited by the cost of repeatedly manually checking so many test cases in regression testing. If you automate the tests it may well be wise to expand the breadth of variations in order to catch bugs caused by the interaction of various parameter values. What are your thoughts on this idea?

Dot: Nice analogy – I like the term “grapefruit juice bugs”. Using some of the combinatorial techniques is a good way to cover more combinations in a reasonably rigorous way. Automation can help to run more tests (provided that expected results are available for them) and may be a good way to implement the combination tests, using pair-wise and/or orthogonal arrays.

Smarter Software Testing with James Bach

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Why Do People Fail to Adopt Better Management Methods?

It is confusing to know that better methods exist but to see those better methods being ignored. It seems that if there were better ways to manage, people would adopt those methods. But this just isn’t the case; sometimes better methods will be adopted but often they won’t. People can be very attached to the way things have always been done. Or they can just be uncomfortable with the prospect of trying something new.

In this post I will look at a very visible example of free throw shooting. A few details in this post might be a bit confusing if you are not familiar with basketball but I think the underlying idea can still be understood.

For shooting free throws the evidence seems pretty clear that results can be improved by using an underhand style of shooting. I won’t go into it here, the data is sparse so conclusions are perhaps not absolutely conclusive yet. In addition to the data, there are good explanations on the physics of why the underhand shot is more likely to be successful.

Personally, I just wish the Wisconsin Badgers would adopt the better method and everyone else can keep ignoring it. Rick Barry’s son can continue using the style (he plays for Florida Gators now and uses that style successfully – see video). His father was one of all time most accurate free throw shooters (using the underhand style). I believe, Chinanu Onuaku, a little used player, is the only current NBA player using the underhand style (he is 2 for 2 this year).

Sadly if Wisconsin did use this improved method, then others may copy them. But that isn’t certain, as you can see this better method has been known for decades without most people taking it up.

The reluctance to use better methods can be very strong. Just as the USA auto companies didn’t use known better methods until Japanese automakers were dominating them in the marketplace my guess is other teams will ignore adopting better free throw methods until a team, or even several teams, have most of their players using the better method. Often the reluctance is very similar to adopting the free throw improvement. It isn’t done just because it feels uncomfortable to do something in a new way (whether it is a different way to shoot a free throw or a different way to manage).

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Most Popular Management and Leadership Quotes on Our Site in 2016

These were the most popular quotes on the Curious Cat Management and Leadership Quotes web site in 2016 (based on page views). Follow the link on the quote text for the source and more information on the quote.

  1. Having no problems is the biggest problem of all.Taiichi Ohno
  2. Performance appraisal is that occasion when once a year you find out who claims sovereignty over you.Peter Block
  3. Don’t look with your eyes, look with your feet. Don’t think with you head, think with your hands.Taiichi Ohno
  4. The answer to the question managers so often ask of behavioral scientists “How do you motivate people?” is, “You don’t.”Douglas McGregor
  5. People who can’t understand numbers are useless. The gemba where numbers are not visible is also bad. However, people who only look at the numbers are the worst of all.Taiichi Ohno
  6. quote image with photo of Dr. Deming - A bad system will beat a good person every time.
  7. Real benefits come when managers begin to understand the profound difference between “cost cutting” and “eliminating the causes of costs.”Brian Joiner
  8. Standards should not be forced down from above but rather set by the production workers themselves.Taiichi Ohno
  9. A bad system will beat a good person every time.W. Edwards Deming
  10. A leader is a coach, not a judge.W. Edwards Deming
  11. Leadership is about making others better as a result of your presence and making sure that impact lasts in your absence.Sheryl Sandberg*
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Cater to Customers Desires to Achieve Customer Delight

Customer delight requires understanding your customers needs and desires. Often even your customers don’t understand these well. Businesses that have a deep appreciation for what their customers, and potential customers, desire and that create systems to deliver solutions that delight those customers benefit greatly from that effort.

To build a sustainable enterprise you must provide value customers will appreciate.

Your customers do not have one unified set of desires. Some customers may want as good an experience as is possible and if that costs substantially more they are happy to pay. Others want to pay the least possible while having an acceptable experience.

Singapore Airlines can cater to creating a great experience. And even within that system they can segment the offering a bit and create coach class, business class and first class. They seek to provide a great experience for everyone but have extra space and amenities offered for higher classes of service for those wanting that given the cost.

Southwest Airlines can cater to providing a friendly and inexpensive experience while passing on providing certain amenities. Southwest understands that they are creating a system to deliver value to customers that appreciate a no frills environment that still treats them with respect. treat customers honestly and with respect.

Aligning what is delivered with what is marketed is also important and something Southwest does well. Other airlines market as if they will provide what Singapore Airlines does and provides a miserable experience instead. I think it helps provide Southwest focus in marketing and operations seeing how badly many of their competitors frustrate customers continually in very visible ways.

To delight customers determine what they desire based on a deep understanding of them. Make sure you understand what they act on not just what they say.

Even if you determine what they want is to spend as little as possible don’t try to trick them with false claims about low prices. The most despised companies all seem to do this (cable TV companies, airlines, mobile phone plans, some contractors…). Essentially they play bait and switch except they don’t even offer the choice to decline once they provide the real price. They just slap on extra fees after they sold you with promises of the cheaper cost.

Instead cater to meet the importance of low price but still treat customers with respect. Yes, you might cut some corners a bit so customers have to wait longer for support or don’t have as much hand holding as they could get for a higher price. But there are many things that can be done with well designed systems to provide very good service while keeping costs low. In fact often better service can be provided at lower costs because systems designed well include less waste and create fewer problems. Those problems are costly to solve and damaging to customers.

Your customers will not have monolithic desires. A big factor in the success of providing solutions that delight customers. Sometimes that means creating products and services that delight people with a wide range of expectations. Other times it means delivering different solutions to delight the different audiences.

My mechanic is trustworthy and less expensive than my other options. He also lacks many of the amenities others might desire. But for me I am delighted with his service. I am happy to drive 30 minutes to get service from him, passing by many other options. I trust him to know what to do and act in my best interest while charging a fair price.

My dentist is very good and expensive. He doesn’t accept insurance (if you have insurance you can submit the bills yourself but his office doesn’t get involved). He does all the dental work himself, including cleaning (which is rare in my experience – often the simple tasks are assigned to others). Assistants deal with scheduling and billing. His market is to provide great service to those customers willing to pay. This is not a strategy that would work for most dentists I don’t think, but it works very well for him and his delighted customers (like me). The customers willing to pay for this level of service is limited but if you delight enough people who are willing to pay you create a sustainable business.

Knowing what your customers want and creating systems to deliver that to them is how to build a great business. It sounds easy but few businesses really do know what their customers want. And even fewer focus on delighting them by continually improving the value they offer.

Related: The Customer is the Purpose of Our Work (2012)
Customer Focus with a Deming Perspective (2013)the most important customer focus is on the end users (2012)What Job Does Your Product Do? (2007)What one thing could we do better? (2006)

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20 Most Popular Posts on the Curious Cat Management Blog in 2016

These posts were the most popular posts on the Curious Cat Management Improvement Blog in 2016 (as measured by page views, as recorded by my analytics application).

photo of John Hunter

John Hunter, Frijoles Canyon, Bandelier National Monument, New Mexico, USA.

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