If Your Staff Doesn’t Bring You Problems That is a Bad Sign

Posted on June 15, 2009 by John Hunter
The day soldiers stop bringing you their problems is the day you have stopped leading them. They have either lost confidence that you can help them or concluded that you do not care. Either case is a failure of leadership.

        – Colin Powell

I discussed my feelings on this in a previous post, Bring Me Problems:

If an employee never learns how to find possible solutions themselves that is not a good sign. But it is much, much better to bring problems to managements attention than to fail to do so because they know the manager thinks that doing so is weak. It is the attitude that problems are not to be shared that is weak, in my opinion.

Related: Where to Start Improvement – Stop Demotivating Me! – How to Improve – Leadership quotes

“Having no problems is the biggest problem of all.” – Taiichi Ohno

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Management Improvement Carnival #66

Posted on June 12, 2009 by John Hunter

The Curious Cat Management Improvement Carnival began in 2006 with the goal to provide links to interesting blog posts for those interesting in improving the practice of management.

  • Jidoka is not just “built-in-quality” by Jason Yip – “Jidoka is not just about stopping and notifying of problems immediately. It also includes the concept of separating human and machine work. Effectively the idea of using machines to free humans.”
  • How to Engage People in Kaizen by Jon Miller – “Frame all actions as experiments and not permanent or irreversible changes This allows people to think that they are not really changing something, only “trying it”. In fact if the method is demonstrably better, it may become the new way.”
  • To Estimate or Not, That is the Question – “Create your estimates quickly and don’t get paralyzed by precision. Being quick may be the middle ground between estimating and not estimating.”
  • Generation Y Deserves No Special Treatment by Chris Young – “Generation Y should not be treated any differently than any other generation. The very same employee performance standards applies to Generation Y as they apply to any other generation.”
  • Rapid prototyping in NY’s Times Square by Karen Wilhelm – Experience and observation can determine optimum flow of people (and vehicles now diverted from their usual routes). Just like simulating flow in a full-size cell mockup can allow teams to adjust reality to assumptions. No long meetings, proposals, and computer models can substitute for a simple and quick prototype of a new system.”
  • Stop Making Excuses by Nick McCormick – “Refuse to accept any reasons for why things that need to be done can’t be. It’s OK to identify the problems. The important thing is to develop solutions to those problems.”
  • Cool Email Mistake Proofing – My main desktop computer runs Ubuntu Linux. The default email client is called Evolution. A recent upgrade introduced a very cool feature. When I hit ‘Send’ it looks for language in the email that might indicate I meant to include an attachment. If there is no attachment, it pops up [a] handy reminder
  • Waste and SAP? by Kevin Meyer – “Moral of the story? Be careful of product demos.”

Curious Cat management web search.

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Penske to Buy Saturn from GM

Posted on June 7, 2009 by John Hunter

Penske to Buy Saturn from GM

“When Saturn launched in the 1980s, it was the new, new thing, with the best dealer service and no-haggle pricing that put customers at ease,” said independent marketing consultant Dennis Keene. “But in recent years, it has just been another GM division, operating the same as Chevy or Pontiac, with nothing to differentiate it and a marketing message that keeps changing, so that people haven’t been able to get a handle on what the brand is supposed to be.”
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First off, he won’t own any manufacturing plants. Saturn will continue to buy today’s vehicles from GM for at least two years. Penske will talk to other auto manufacturers in Europe and Asia about supplying new products after that. “We are going to be a sales, service, and marketing company, not an OEM [original equipment manufacturer],” he said. Eventually, Penske explained, he wants at least some Saturn vehicles to once again be manufactured in the U.S., though that may not be the case in the short run after the agreement with GM runs out.

I thought Saturn was the worst management failure at GM, among many (NUMMI, and GM’s Failure to Manage Effectively, for example). They really did some great things early on with rethinking the system of manufacturing and selling cars. But GM failed to take care of the innovative division. I hoped that Saturn would gain a new, better, management that build Saturn toward the potential it has. Contracting out manufacturing however, is a horrible idea, I believe. Unfortunately I think this ends the hope for a great Saturn.

Saturn still have the potential to do ok, given how bad the dealership experience is for most other companies. The dealer experience, even for Toyota and Lexus is still not at all congruous with the customer focus principles of lean (for example, motivating sales people to make as bad a deal for customers as they can – paying them more the more they get for the dealership at the expense of the customer). And other car companies have quite a bit to learn from the sales practices of Saturn and Car Max.

Related: Big Failed Three, Meet the Successful Eight – Honda has Never had Layoffs and has been Profitable Every Year – People: Team Members or Costs – Invest in New Management Methods Not a Failing Company, 1986

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Job Listings Online Filled with Jargon

Posted on June 5, 2009 by John Hunter

The job market is not great, 9.4% unemployment in the USA, and not efficient either. At my full time job, we hired a ruby on rails developer (web programmer) this month, and are looking to hire another.

Job listings online filled with jargon

With unemployment reaching historic levels, online job search traffic is heating up. Sites like Monster.com, Dice.com, and HotJobs.com are gaining steam with anywhere from a 20-90% increase in traffic in February. Somehow CareerBuilder.com managed to dip 3% but SimplyHired.com achieved a 290% increase in traffic, and other sites like Craigslist and LinkedIn are also gaining momentum.

Job search sites are gaining traffic and providing a great service to the unemployed and unhappily employed. Unfortunately, the inability of corporations and recruiters to provide prospective applicants with sensible job postings threatens to render these sites useless.
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Filling the entire job posting with corporate and industry acronyms, abbreviations, and jargon – By filling the job posting with nonsensical jargon, a recruiter further inflates their false sense of importance and also avoids the issue that they know absolutely nothing about the job. The applicant is left wondering whether they just applied for a job responsible for fixing Boeing 747s or installing Kimberly-Clark toilet paper dispensers. Pretty much a toss up.
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It’s scary to imagine what job postings might look like in 10 years if this trend continues. If anyone is interested in building a Google Translate with a “Recruiter to English” option, I can serve as your Subject Matter Expert.

In the information technology field the standard practice is to include a large number of basically irrelevant skills as requirements. And then managers wonder why they don’t get decent applicants. You need to include the knowledge, skills and experience you really need and not all sorts of details that an employee can easily pick up, if needed, once they are on the job.

Related: Hiring: Silicon Valley Style – Interviewing and Hiring Programmers – IT Talent Shortage, or Management Failure? – Joy in Work: Software Development – Management Improvement Career Connections

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Management Improvement Carnival #65

Posted on June 1, 2009 by John Hunter
Checklist for the Agile Manager

 The Curious Cat Management Improvement Carnival began in 2006 with the goal to provide links to interesting blog posts for those interesting in improving the practice of management. We now publish the carnival 3 times a month.

  • Knowledge and Thinking by Ron Pereira – “I truly believe the more you learn the more you’ll be able to think. And the more you’re able to think the better you’ll be at solving problems.”
  • Is Kanban Just a Tool? by David J. Anderson – “When implementing pull, you first have to embrace the concept (or paradigm) of flow. Flow and Pull are two of the 5 pillars of Lean. The other three being Value, Waste Elimination and Continuous Improvement.”
  • My Haiku Mission Statement by Mike Wroblewski
    Develop leaders.
    Live the lean philosophy.
    Teach it to others.
  • Don’t Shoot the Photographer by Mark Riffey examines how to turn a perceived threat to your business income into an opportunity by focusing on customer service.
  • NPR Does a Great Job of Covering Toyota by Mark Graban – “How tough the assembly line is depends in part on its creator. Shigenobu Matsubara has helped design assembly lines from Japan to Georgetown, Ky., which has the biggest in the United States. He says he has always designed the lines with the workers’ welfare in mind.”
  • Entrepreneurship Doesn’t Have To Be About The Next Big Thing – “Whatever you decide to do, there’s nothing to be ashamed of as long as you are actively going after your goals. Who cares if you are pursuing a not so glamorous business idea? Who cares if your friends are all trying to create hundred million dollar companies?”
  • Lean Team Software Process by Corey Ladas – “The customer’s terms likely do not include any notion of defects-per-KLOC. The producer’s end is profit and reputation, which comes from managing cost and consistency. If TSP, or something related to it, helps us realize our ends, then (and only then) it is meaningful.”

    • Continue reading →

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Pixar Movie Management Magic

Posted on May 29, 2009 by John Hunter
image of Walle - PixarImage of Wall-e, from the Pixar film of the same name.

Pixar’s secrets on display in ‘Up’

“I think it comes down to two basic things: one is that we’re run by artists. … John Lasseter is a film director, as opposed to being from a business school or whatever. He has that side of him as well, but he’s always approaching these things as the same way we are.

“Second, we have some pretty great people that they’ve managed to collect here. This is our 10th film, and every film has just gotten better and better, whether that be in animation or special effects or lighting. And it just all comes together to make for some really fantastic stuff.”
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“One of the things that I really love about [Pixar] is that no matter what you do, if you’re a production assistant or a producer or a marketing executive or running the kitchen, everyone here thinks like filmmakers,”
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Like, I didn’t work on ‘WALL-E,’ but I feel like it’s mine, you know? And I want that to look great and be great. And then I want that bar to be higher and for us to be challenged.”

Pixar has done a great job of creating the right climate for the business they are in. They make movies and have been very consistently successful. Many of those strategies are useful concepts for everyone. Create a climate that promotes pride in work. Create a climate where everyone sees how they contribute to the end product. Hire people you trust and let them do their jobs. Seek continual improvement. Respect people. Customer Focus. Innovation (for example: Pixar Is Inventing New Math).

By the way, Steve Jobs, Apple co-founder, paid $5 million for Pixar and sold his share for $3,700 million of Disney stock (he is the largest shareholder of Disney – approximately 7%). Pixar Movies include: Toy Story, Monsters Inc. and The Incredibles.

Related: Tilting at Ludicrous CEO Pay 2008 – Better and Different – Innovation Examples

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CEOs Want Health-Care Reform

Posted on May 28, 2009 by John Hunter

Decades ago Dr. Deming emphasized the deadly disease of excessive health care costs in the USA. Since then, year after year, the situation has become worse (reaching $2.2 trillion in spending in 2007 – 16.2% of GDP). During that time senior executives has put forth very little serious effort (in comparison to the huge cost) to fix this problem. Finally, in the last few years, more and more senior executives are actively moving to address the ever worsening crisis (including, Howard Schultz, CEO at Starbucks).

They seem to be realizing that hoping the problem will just fix itself is not a great strategy. Finally senior executives are realizing they need to have the government address the systemic failures. Those executives need to keep up their efforts because those seeking to retain the system that doesn’t work, because they personally benefit from it, have been doing a great job of preventing progress for decades. Until a critical mass of senior executives demand change from Washington the chance of improving the relative performance of the USA health system in comparison to other countries is very bleak (we have just been getting more expensive and less effective [relative to other countries] over time).

CEOs Secretly Want Health-Care Reform

Carl T. Camden, CEO of Kelly Services (KELYA). Managing insurance for his vast, geographically dispersed workforce of temporary workers is horrendously expensive, he complains: “My health-care costs total more than my profits.”
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But in private, “CEOs overwhelmingly want out of this business,” says Benjamin Sasse, an Assistant Secretary of Health & Human Services under President George W. Bush who’s now an assistant professor at the University of Texas at Austin. “They just do not want to be seen as more willing to dump [benefits] than their competitors are.” Sasse says many CEOs he has talked with would even pay a new tax if it got them out of the insurance business.

Related: Many Experts Say Health-Care System Inefficient, Wasteful – Articles on Improving the Healthcare system – Applying Disruptive Thinking to the Healthcare Crisis – Our Failed Health-care System
Continue reading →

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In-N-Out Burger’s Six Secrets for Success

Posted on May 26, 2009 by John Hunter

image of In-N-Out Burger book cover

In-N-Out Burger’s six secrets for out-and-out success [the broken link was removed]

Listen to Your Customers — One of the company’s mottos is “Our customer is everything.” Applying that belief led to the company policy of preparing burgers just the way customers asked for them. Some of the customer favorites became popular and were eventually adopted as the restaurant chain’s “secret menu.” By listening to their customers, In-N-Out created menu choices other stores couldn’t duplicate.
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Treat Employees Well — The Snyders always held their employees in high esteem, paying them higher wages than competitors and calling them associates to make them feel more connected to the franchise.

“They believed in sharing their success with their employees,” says Perman, noting that In-N-Out associates make $10 an hour working part-time and starting store managers make $100,000, plus bonuses tied to store performance. The company benefits package is also generous. Such treatment engenders loyalty from workers.

“They have the lowest turnover rate in the fast food industry, which is notorious for turnover,” says Perman. “They say that the average manager’s tenure is 14 years, but they have managers who have been there 30 or 40 years.”

Keep Things Simple and Consistent…

The fundamental idea of respecting people is something most executives seem to have no interest in. Treating employees as the critical partners in organizational success is just something that doesn’t leap out at you based on the actions of most managers, unfortunately. And that poor management damages the performance of the organization.

Read more about In-N-Out Burger management practices in Stacy Perman’s new book In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules.

Related: Respect for Workers at In-N-Out Burger (Nov 2006) – Building a Great Workforce – Another Year of CEO’s Taking Hugely Excessive Pay – Respect for People, Understanding Psychology – People are Our Most Important Asset

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Google’s Innovative Use of Economics

Posted on May 24, 2009 by John Hunter

Secret of Googlenomics: Data-Fueled Recipe Brews Profitability

Google depends on economic principles to hone what has become the search engine of choice for more than 60 percent of all Internet surfers, and the company uses auction theory to grease the skids of its own operations. All these calculations require an army of math geeks, algorithms of Ramanujanian complexity, and a sales force more comfortable with whiteboard markers than fairway irons.
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Varian tried to understand the process better by applying game theory. “I think I was the first person to do that,” he says. After just a few weeks at Google, he went back to Schmidt. “It’s amazing!” Varian said. “You’ve managed to design an auction perfectly.” To Schmidt, who had been at Google barely a year, this was an incredible relief. “Remember, this was when the company had 200 employees and no cash,” he says. “All of a sudden we realized we were in the auction business.”
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Google even uses auctions for internal operations, like allocating servers among its various business units. Since moving a product’s storage and computation to a new data center is disruptive, engineers often put it off. “I suggested we run an auction similar to what the airlines do when they oversell a flight. They keep offering bigger vouchers until enough customers give up their seats,” Varian says. “In our case, we offer more machines in exchange for moving to new servers. One group might do it for 50 new ones, another for 100, and another won’t move unless we give them 300. So we give them to the lowest bidder—they get their extra capacity, and we get computation shifted to the new data center.”

Google continues to make bold moves putting faith in their ability to find innovative solutions that others reject as impossible. It is a challenging but interesting path to success, for them, at least.

Related: Google Should Stay True to Their Management Practices – Google’s Answer to Filling Jobs Is an Algorithm – The Google Way: Give Engineers Room – Google Website Optimizer – Google: Experiment Quickly and Often – posts on innovation in management

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Management Improvement Carnival #64

Posted on May 21, 2009 by John Hunter

Mike Wroblewski is hosting the Management Improvement Carnival #64 on the Got Boondoggle? blog, highlights include:

  • Daily Scrum against the Board by Xavier Quesada Allue-“A good way to know if your team is using their taskboard to really manage their work is to look at their daily standup meeting.”
  • Japanese CEOs and Leadership by Mark Graban-“When do you ever hear a Western CEO say ‘sorry’ or ‘we were lacking’?”
  • Total Company Involvement by Pete Abilla-“When the hearts and minds of everybody in the organization is moving toward the same end then you know the companies’ mission has became a living and breathing inspirational catalyst for good.”
  • How Interruptions Drain Productivity by George Ambler-“Time is a leaders most valuable resource. The way a leader uses their time demonstrates to the people around them what’s really important.”

Overview of the management improvement carnival.

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