Hiring: Silicon Valley Style

Interviews on how to hire in Silicon Valley. I especially like Guy Kawasaki’s comment – “the key to getting great people to work for you is to have a great product. That is why Google does so well. That is why Apple does so well.” I agree with the concept that a huge part of hiring good people is offering them a place where they feel proud of what they are working on. This is even more true when you talk about great software developers that have more choice than most in how they choose to earn a living.

via: How Are Companies in Silicon Valley Hiring?

Related: Interviewing and Hiring ProgrammersGoogle’s Answer to Filling Jobs Is an AlgorithmGoogle Exceeded Planned Spending on Personnel

Posted in Career, Google, IT, Management, Software Development, Systems thinking, webcast | Tagged , , | 4 Comments

Help Wanted: Lean Manufacturing Experts

Is There A Lean Employee Deficit?:

Two recent articles in respected manufacturing publications highlighted a topic of interest for us at Ultriva: The difficulty of finding and retaining manufacturing talent.

The first was an article from the American Society for Quality published last week in Reliable Plant about the aggressive luring of Lean manufacturing experts to the services sector. The article quotes Jack Stiles, the president of an executive search firm, that experts are enjoying 20 to 30% pay raises to take their Lean thinking from manufacturing to service industries, like Healthcare or Banking. A Bain executive, Mark Gottfredson, adds “There is a whole industry luring away Toyota and General Electric people”.

Then today, Industry Week’s Traci Purdum published a piece online entitled “Help Wanted“. The article looks at the difficulty manufacturer’s are having in filling jobs from the plant to the management suite.

If you are looking a new job (or a company looking for skilled and knowledgeable people) the Curious Cat Management Improvement Job Board lists openings (and companies can post relevant vacancy announcements – 100% free). Current listings include: Quality Engineer, Director – Lean Manufacturing, TPS Consultant and
Director, Six Sigma Process Improvement. It is great there is a demand for skilled lean manufacturing experts; now we just need to make sure companies can get the right people in place so they can be successful and grow the adoption of lean management methods.

Related: Hiring the Right WorkersSigns You Have a Great Job … or Notmanagement improvement career related postsUSA Job Growth

Posted in Career, Lean thinking, Management | 2 Comments

Toyota Reports Best Quarter Ever

Toyota Reports Best Quarter Ever

Despite concerns in the industry about sluggish auto sales in the U.S. and Japan, Toyota Motor Corp. got help from a weak yen and cost cuts in its earnings announced Friday for its first fiscal quarter.

Japan’s biggest automaker posted a 32.3 percent jump in profit to 491.54 billion yen ($4.1 billion) for the April-June quarter.

One quarter doesn’t mean much but this is just the continuation of a long term trend. Posts on Toyota’s management system.

Posted in Toyota Production System (TPS) | 2 Comments

Management Improvement Carnival #16

Management Improvement Carnival #16 is hosted by Mark Graban at the Lean Blog. Some highlights include:

  • How Toyota Handles Disaster, by Matthew May at “Elegant Solutions”:
    “Sometimes the Wall Street Journal has at best one use: wrapping fish. To wit, their ignorant article on the front page of the Marketplace section: “A Key Strategy of Japan’s Car Makers Backfires.”… Long story short: Toyota’s been there, done that. Read on if you want the story.”
  • More Lean Companies, by Kevin Meyer at “Evolving Excellence”: “…the July 17th issue of Manufacturing News has an article by Cliff Ransom, President of Ransom Research. Cliff is one of the few Wall Street analysts that truly understands lean manufacturing and the impact it can have on company performance and valuation.”
  • Kaizen Rules 1&2, by Ron Pereira at “Lean Six Sigma Academy”: “We must enter a “how it can be done” mindset instead of why it cannot be done mindset. The former is essential if we are to make any serious, long lasting change. This manner of thinking must also be taught to our associates. If everyone adopts this “how to” mindset change can occur rapidly.”
  • Right is Cheaper, by Rob Worth at “Lean Services Blog”: “So if anyone tells you that higher quality is more expensive ask them to correct themselves and count the calories they burn as they do so.”

Please submit your favorite management posts to the carnival.

Posted in Carnival, Management | Comments Off on Management Improvement Carnival #16

iPhone + AT&T = Yikes

What a surprise – lousy customer service from a cell phone company. What a shame that it is no surprise at all. Don’t they have tons of MBAs with 6 figure salaries? They do have a CEO paid over $31 million last year. It is so frustrating that even basic stuff is so poorly done, so often and for so long. iPhone+AT&T Bill=Uh-Oh:

It’s a staggeringly, hatefully complex document, designed by some Monty Pythoneseque committee in charge of consumer confusion.

Many people, before the iPhone was released, were already predicting bad results based on Apple’s choice of partner. They wondered how Apple would maintain their typical customer focus when relying on a partner without a good reputation. Well, it is much easier to degrade a system to return the poorest results than to create a system performing at best levels of any portion of that system. This is a great example of failing to deal with the entire system (value stream…).

The first bill, believe it or not, comes to $150. It’s filled with unexplained services and features that were never mentioned during the signup process, like MEDIA MAX, EXPD M2M, VOICE PRIVACY, and AT&T DIRECT BILL. After studying this thing for 20 minutes, I think I’ve got it figured out: activation charge ($36), prorated monthly fee for June ($26 for voice, $13 for Internet use), taxes and fees ($15), plus July billed in advance ($40 voice, $20 data).

What an embarrassment. And the fact that the companies that provide such “service” are not even embarrassed is even more embarrassing.

This development illustrates yet another clash between Apple’s typical philosophy of elegance and simplicity–and the unprepared, cluelessness of its cellular partner.

Very well put, though it could expect more of Apple. They had to know what they were getting their customers into and the failure to manage that better is something their customers have every right to blame Apple for. Read the comments for tons of real customer opinions that are overwhelmingly negative. I wish companies would spend half the time, effort and money fixing these systemic problems that they spend on marketing efforts with little resemblance to what you experience if you actually become a customer.

Related: Standard Prepaid Cell Phone PolicyGood Customer Service ExampleIncredibly Bad Customer Service from Discover CardCustomer Service is ImportantIs Poor Service the Industry Standard?No Customer Focus

Posted in Customer focus, Management, Systems thinking | 2 Comments

Multi-Tasking: Why Projects Take so Long

From a new, interesting, Theory of Constraint blog by Kevin Fox – Multi-Tasking: Why projects take so long and still go late

In many companies the impact of multi-tasking is obscured by the fact that in spite of its prevalence most projects still finish on time. While this reliability is nice, it masks the even more significant opportunity to cut project durations substantially. If projects are being delivered on or close to schedule, and multi-tasking is occurring, it can only mean that the task estimates used in the plan are significantly inflated.

But understanding is not enough. The drivers of multi-tasking are built into the processes, measurements, and systems most companies manage their projects. We strive hard to keep people busy all of the time, to maximize the output of all of our resources and be efficient. Performance measures on project managers and executives motivate them to focus on delivering individual projects, without understanding of the impact of their actions on the rest of the pipeline. Conventional scheduling and pipelining tools pay no attention to these factors and routinely overload resources making multi-tasking nearly inevitable.

via: Silk and Spinach. Related: articles on Theory of ConstraintsMultitasking is not Part of Standard WorkFlowFast Cycle Change in Knowledge-Based Organizationssingle piece flow

Posted in Management, Theory of Constraints | 3 Comments

TVS Group Director on India – Manufacturing, Economy…

[The link to the podcast has been broken so it has been removed.]

Gopal Srinivasan is Director of TVS Electronics Limited, Joint Managing Director of Sundaram-Clayton Limited and Director of various other TVS Group companies. TVS group companies, based in India, have been awarded 5 Deming Prizes. He discusses Deming and quality a bit. He also discusses their experiences in manufacturing in China and the strengths they have found in each country. And he discusses the Indian economy and manufacturing.

In the second part of the podcast [the broken link has been removed] he talks about the growth of the economy of Tamil Nadu and the inclusive approach required to help India grow. via Gopal Srinivasan of TVS Group of Companies on Entrepreneurship [the broken link has been removed]

Related: Hopeful About India’s Manufacturing SectorToyota Chairman Comments on India and ThailandIndian Deming Prize Winner Expanding2005 Deming Prize Awardees2004 Deming Prize

Posted in China, Deming, Economics, India, Management, Manufacturing, webcast | Tagged , | Comments Off on TVS Group Director on India – Manufacturing, Economy…

Amazon’s Amazing Achievement

I have mentioned I like the way Amazon, and Jeff Bezos, have been managing in several posts. Recently Amazon has added very strong financial results to that portfolio of things they do well. Amazon earnings announcement:

Net sales increased 35% to $2.89 billion in the second quarter, compared with $2.14 billion in second quarter 2006. Excluding the $46 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 33% compared with second quarter 2006.

Operating income increased 149% to $116 million in the second quarter, compared with $47 million in second quarter 2006. Net income increased 257% to $78 million in the second quarter, or $0.19 per diluted share, compared with net income of $22 million, or $0.05 per diluted share in second quarter 2006.

Pretty impressive. It seems Amazon might be able to begin delivering strong current financial performance (they have done so at least twice, and maybe longer depending on how you look at it…) and continue to build and innovate for the future. That is when a company really sets itself apart from the crowd. Previously, from the investing perspective, the argument was largely based on the belief that the steps taken today were building for the future (a fine thing, but risky – without the evidence of success actually making real profit it is often easy to make a good case for why the future will be good). In an investment it is more comforting when current earning provide some evidence the profits predicted in the future have some basis in reality.

Since the beginning of April Amazon’s share price has gone from $40 a share to $70. And based on the after hours trades today it is going to be in the $80s tomorrow (though after hours trades can often be misleading – there is some more confidence based on the large volume of hour trades in Amazon, but still…). I must admit this price does seem like it might be getting a bit ahead of itself but Amazon is making an impressive case for strong future performance.

Related: Amazon Innovation10 stocks for 10 years (April 2005)12 Stocks for 10 Years Update (June 2007)Very Good Amazon EarningsBezos on Lean ThinkingIs Amazon a Bargain?

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New York City Travel Photos

Photos from my trip to New York City last year are now online. Photos include: The Cloisters (part of the Metropolitan Museum of Art – though located far uptown) art and architecture of medieval Europe, the remodeled Museum of Modern Art, Rockefeller Center, Empire State Building and Flatiron Building.

Related: New York City Photo EssaysParis Travel PhotosPacific Northwest photosCurious Cat Travel Photos

photo of stained glass window - The Cloisters, NYC
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Google Exceeded Planned Spending on Personnel

Often people have trouble understanding Dr. Deming’s disapproval of arbitrary numerical targets. What he was trying to prevent is what many see every day, such as managing to quarterly earnings targets. There are several problems with numerical goals but in here lets focus on one. The change from managing for what is best for the business to managing to hit a target. Google Profit Trails Analyst Estimates; Shares Slide:

The company hired more people than expected last quarter, Chief Executive Officer Eric Schmidt said on a conference call. Google added 1,548 jobs, mostly in sales, marketing and engineering, bringing its total to 13,786. “We overspent against our own plan on headcount,” he said. “We decided it was not a mistake. The kind of people we brought in were so good that we’re glad we did this.”

Great statement. And if more people could manage that way, one of the problems with numerical goals would be eliminated. But with so many organizations tying huge bonuses to meeting arbitrary numerical targets you will have a great deal of difficulty getting managers to hire 3 extra people this quarter, who will help the business, but will ruin their chance at a bonus. Or even if they just take a hit on their performance appraisal compared to the other managers that meet the headcount target – even if it meant turning away talent the organization could have benefited from greatly – and then the manager that missed their target loses out in the next promotion opportunity.

I am happy to own a tiny portion of Google and glad they are making decisions like this. Now just because I think there is a good case to be made for exceeding the targets that doesn’t mean that hiring more people is necessarily good. It is perfectly possible Google is hiring too many people and making a bad prediction about how these people will benefit Google in the long run. I am just saying I strongly support not tying yourself to short term numerical targets, if you predict a better decision requires taking actions that will cause the target to be missed.

Google increased profit by 28%, from the second quarter last year, to $925 million (and down from $1.0 billion in the first quarter of 2007). Lest you think personnel can’t really cost Google that much can it, just the stock based compensation in the second quarter reduced earning by $242 million in the quarter (an “expense” that wasn’t reported just a few years ago). Google had 13,786 full-time employees as of June 30, 2007 (up 1,548 in the quarter) – so that is over $17,500 per full time employee. If anyone at Google wants to talk I am open to considering an employment offer.

Posted in Deming, Google, Investing, Management, Performance Appraisal, Psychology, quote | 3 Comments