Tag Archives: respect for people

Bill Hunter and the Quality Movement

Watch this presentation by George Box at the 1st Annual Hunter Conference on Quality: Bill Hunter and the Quality Movement.

In the presentation George discusses interesting student design of experiments projects; read more on those efforts in 101 Ways to Design an Experiment, or Some Ideas About Teaching Design of Experiments.

To read more about the quality management efforts in Madison, Wisconsin see: Doing More With Less in the Public Sector: A Progress Report from Madison, Wisconsin and Quality In The Community One City’s Experience. Madison played a special role in the quality management movement in the USA. Those efforts made a visible difference in the practice of management we see in the world today.

George quoted a passage from Out of the Crisis by W. Edwards Deming that quotes Mayor Joe Sensenbrenner (who gives the introduction in the video) after the city mechanics convinced him of the need for a comprehensive preventive maintenance program:

You know how to find problems, you know how to solve them, and you wish to solve them. We should get out of your way and let you do it. I am very impressed with what you have shown us here today, and we are going to extend these methods to other departments in the city. I see no reason why they should not also be used in state and federal government.

George also discussed the Center for Quality and Productivity Improvement (that Bill and George established at the University of Wisconsin). Reports by George and Bill that were published by the Center are available online.

George’s closing statement:

We carry in our hearts the inspiring memory of not only a scholar but a man that was resourceful, warm, skillful, courageous, optimistic, helpful, enterprising and generous. His career was whole and balanced in a way that is rare and as we grieve his death we also celebrate the life of a remarkable man.

George also spoke at the speaker’s dinner for this conference and his remarks were published as William G. Hunter: an Innovator and Catalyst for Quality Improvement.

Special announcement: I will be speaking at George Box’s Centenary Celebration, 18 October 2019 in Madison, Wisconsin. The UW Department of Statistics will be hosting the one-day conference.

Related: Comments from others on working with Bill HunterMy (John Hunter) start with quality managementQuality Comes to City HallThe Aim Should be the Best Life, Not Work versus Life BalancePositivity and Joy in Work

Design the Management System with an Appreciation of Confirmation Bias

photo of John Hunter with a walking stick

John Hunter hiking at Fraser’s Hill, Malaysia, when I was a bit younger.

To create strong organizations we must create management systems using an appreciation of psychology. We must understand that people have tendencies that must be addressed by designing a management system built to take advantage of the strength those people bring and mitigate the risks the weaknesses (such as confirmation bias) that those people also bring.

One way to do this is to seek out voices in your organization that question and challenge accepted positions. Often organizations promote those that make things easiest for everyone, which correlates very well with supporting existing biases within the organization while making things difficult for those that challenge the existing thinking.

As I wrote previously in, How We Know What We Know:

the way people build up beliefs, is full of all sorts of systemic problems.
… [people] tend to think someone entertaining is more educational than someone not entertaining. They may be more entertaining, but taking the ideas of those who are entertaining and rejecting the ideas of people who are not is not a great strategy to build up a great system of knowledge.

To more effectively adopt good ideas and reject bad ideas, understanding the theory of knowledge (how we know what we know) and then applying that knowledge to how you learn is a better strategy. Learning to recognize confirmation bias and take steps to avoid it is one positive step. Learning to recognize when you accept ideas from those you like without critical judgment and reject ideas from those you find annoying and then learning to evaluate the ideas on the merits is another positive step…

I also wrote about these ideas in, The Importance of Critical Thinking and Challenging Assumptions:

Often we have created cultural norms that make it difficult for people to ask for evidence of claims. And the culture in many organizations can make those that seek evidence for claims as being difficult or even personally attacking those that support a certain course of action. However this is a dangerous attitude and it is directly counter to the fundamental aspects of management improvement efforts (evidence decision making, continual improvement, etc.).

Learning to challenge confirmation bias in your own thinking is hard. Often it is much harder to learn how to get the organization as a whole to change from one where confirming (and maybe ignoring anything that might make it difficult to maintain the existing belief) what most of us believe (or wish to be true) to one where challenging the assumptions underlying our thought process is appreciated.

Great benefits flow to organizations that encourage the challenging of beliefs, ideas and the lessons we draw from data. But such a culture can create friction in organizations without other strong management practices (respect for people, an understanding of what data does and does not reveal…). Often creating such a culture is something best left until the process of building the capability of the organization is well underway.

Related: The Illusion of UnderstandingManaging Our Way to Economic SuccessExperience Teaches Nothing Without TheoryThe Dangers of Forgetting the Proxy Nature of Data

Effective Change Management Strategies and Tactics

ASQ has asked their Influential Voices to respond to the question: What are some recommended strategies or tactics to help achieve successful change management? See my past blog posts as part of the ASQ Influential Voices program (I have participated since 2012).

I have explored the idea of how to create a culture that promotes effective change management in several previous posts on the Curious Cat Management Improvement Blog.

Change Management: Create a Culture Seeking Continual Improvement or Use Band-Aids?

You can try to push change in an ad hoc basis by adopting some strategies to create a similar feeling about the individual change effort. But that isn’t as effective as establishing them in the culture are. Strategies such as: going the gemba, pdsa, build trust via respect for people…

These tools and concepts build trust within the organization. The do that by showing people are respected and that the change effort isn’t just another in the long line of wasted effort for ineffectual change. The first part can be addressed, normally the second part can’t be addressed effectively. Often that is at the core of the issue with why the change effort isn’t working. It is a bad solutions. It hasn’t been tested on a small scale. It hasn’t been iterated numerous times to take a seed of an idea and grow it into a proven and effective change that will be successful. If it had been, many people would be clamoring for the improvement (not everyone, true, but enough people).

How To Create a Continual Improvement Culture

Very few organizations take nearly enough time to train and educate employees. If you want to create a culture of continual learning and improvement you almost certainly need to focus much more on education and learning than you are. Education can be formal but also focusing on learning as you apply quality tools is extremely useful and very overlooked. Coaching is a big part of doing this well, but coaching is another thing that is massively under-appreciated. Most supervisors and managers should be spending much more time coaching than they are.

photo of Van Gogh self portrait

Van Gogh self portrait photo by John Hunter, Musee d’Orsay, Paris.

This effort should be iterative. Create systems focused on continual improvement (which require changes that make a positive impact on results) with built in checks for frequent assessment, reflection and adjustment to the changes the organization attempts to make.

Building the capacity of the organization to successfully adopt improvements will directly aid change efforts and also will build confidence that efforts to change are worthwhile and not, as with so many organizations, just busy work. People will be skeptical if they have a good reason to be so, and poor management practices found in many organizations give people plenty of reason to be skeptical that their efforts to improve will be successful.

Why Do People Fail to Adopt Better Management Methods?
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Peter Scholtes on Teams and Viewing the Organization as a System

In this presentation Peter Scholtes provides an explanation of teams within the context of understanding an organization of a system:

We will not improve our ability to achieve our purpose by empowering people or holding people accountable. I know that those are fashionable words but what they have in common that I think is the wrong approach is that they still are focused on the people and not on the systems and processes. I’m sure that will trigger quite a bit of conversation and perhaps some questions.

He is right, though those are difficult old thoughts to break from for many. He does a good job of explaining how to seek better methods to achieve more success in this presentation and in the Leader’s Handbook. Following the links in the quote above will also provide more details on Peter’s thoughts.

Peter includes a description of the creation of the “organization chart” (which Peter calls “train wreck management”) that we are all familiar with today; it was created in the Whistler report on a Western Railroad accident in 1841.

Almost a direct quote from the Whistler report: “so when something goes wrong we know who was derelict in his duty.” The premise behind the traditional organizational chart is that systems are ok (if we indeed recognize that there are such things as systems) things are ok if everyone would do his or her job. The cause of problems is dereliction of duty.

Peter then provides an image of W. Edwards Deming’s organization as a system diagram which provides a different way to view organizations.

In the old way of viewing organizations you look for culprits, in this way of viewing the organization you look for inadequacies in the system. In the old way of viewing the organization when you ask “whom should we please” the answer is your boss. In this way of viewing an organization when you ask “whom should we please” the answer is our customers.

This is an absolutely great presentation: I highly recommend it (as I highly recommend Peter’s book: The Leader’s Handbook).

Without understanding a systems view of an organization you can’t understand whats at the heart of the quality movement and therefore everything else you do, management interventions, ways of relating to people, will reflect more likely the old philosophy rather than the new one.

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Quality of the Entire Customer Experience

Customer expectations are high in the highly competitive marketplace today. The quality of a product or service alone is no longer a differentiator; instead the overall quality of the experience is now the differentiator for customers.

ASQ has asked their Influential Voices to explore how this “new” expectation impacts on how we need to manage our organizations. See my past blog posts as part of the ASQ Influential Voices program (I have participated since 2012).

To some degree the premise is faulty and is making the common mistake of declaring old thoughts as if they are new. This is a common problem that hampers the application of the management improvement concepts: because the history of using the ideas are not explored to learn what has worked and what problems organizations have faced adopting the ideas.

But there is some truth to the idea that customer expectations have risen. Product quality, in many ways, has been raised in the last few decades and this naturally results in raised expectations. This pattern was well known in the 1960s (and before). Kano’s theory of customer satisfaction expressed how new features moved from being “delighters” for customers initially and eventually became minimum expectations (you gain no credit for delivering them but will upset customers if you fail).

It is also true that raising the overall customer experience is more difficult than raising product quality (due to the nature of the systems that deliver the results in each case).

I do think there is truth to the idea that customers have raised expectations for businesses to improve the entire experience. Customers are less willing to accept excuses about how the provider is not responsible for various aspects of the experience.

photo of mural of kids and animals

Mural at the Smith Samlanh Education Center in Phnon Phen, Cambodia

We expect to be able to pay for our purchases online and have an easy to use history of our purchases available. One of the examples of businesses continually failing in this expectation is seen at many USA financial institutions that often fail to provide history after a very short period of time (sometimes even as low as 1 or 2 years). This is an example of how far some organizations have to go. It is ludicrous to not keep permanent records of financial transactions in most cases.

While in many ways overall customer experiences are improving we still have huge room for improvement. Many companies continue to fail to even meet minimal required features (forget actually providing customer delight).

One way that shows the idea of focusing on the customer experience is nothing new is that it is the natural focus of the traditional management improvement methods (as described by Deming, Ackoff, Box, etc.). When people were seeking alternatives to “quality management” (as the use of that term was so vague in practice that it was difficult to know what was meant by “quality management”) I settled on “customer focused continual improvement.” That remains my touchtone.

An organization in 1980, 2000 or 2017 should have had the same focus on continually improving the customer experience. Reading through my posts on this blog (which I started in 2004) provides many examples of managing with that in mind: The most important customer focus is on the end users (2012), What Job Does Your Product Do? (2007), What Could we do Better? (2006), Delighting Customers (2010). These links all discuss the importance of understanding and continually improving the overall customer experience by gaining an in depth understanding of their needs and desires.

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Unpacking the Components of Hard Work to Design Better Work Conditions

Effort is grossly underrated by Jamie Flinchbaugh:

There is a common phrase of “work smarter, not harder.” I get the appeal of that. Effort without clarity, efficiency, and effectiveness, has severe limits. Working smart is essential. But does that mean working hard has no value? No, effort is grossly underrated.

I believe we should aspire to work smarter and harder. Neither is sufficient, both are required…

My father used to convince himself working smarter should be the main focus and then he would return from Japan and say yes working smarter is important but they also just work harder. Then he would revert to moving to a primary focus to working smarter, then return of Japan and repeat. It took maybe 3 trips to have it sink into his consciousness that it really was both.

I am slower than my father to accept the necessity of hard work 🙂 I still think we could reduce the hours of work if we worked smarter and the processes were improved to eliminate wasted time and we worked hard for fewer hours. To some extent some agile software development efforts have shown this by changing the system of work and including as part of that a commitment to long term sustainable pace of work (no overwork).

I think if people define work as hard as a large number of hours then that can be reduced. If they define hard as putting forth their best efforts (in a smart and effective way) continually for the hours they put in then I can’t see reducing hard work as a goal. The hard work of doing the challenging things when they are important cannot be abdicated. If anything that is one of the most important methods to reduce the hours of work needed – doing the things that often people avoid because it will be difficult, upset people, make people uncomfortable, upset the way things are done…

farmers tilling a rice field with a machete and a tractor

Tilling a rice field in Bali. See more of my photos from Indonesia.

“Hard work” is often code for “work I despise doing.” If you create a system where people take pride and joy in their work the same time spent working is not nearly as “hard.” If they are proud of what they accomplish a difficult task is often rewarding, and not seen as working “harder.” As is so often the case “hard work” is really packing together numerous ideas in one phrase.

  • long hours
  • difficult tasks (physically, emotionally or intellectually)
  • unrewarding work
  • unpleasant tasks
  • inflexible work (It is a “hard job” if it prevents you from for example, seeing your child’s basketball game. If you were able to see the game and finish up 2 hours of work after they went to bed that is less hard.)
  • difficult work environment (whether that is due to the stress level, physical demands, or other things – like a boss that is difficult to work for)

I think you can reduce many of these parts of hard work by creating a better system of work in the organization. But to do so you increase the need for focused effort on what is important. The key to me is designing a management system in which the effort required by work is the effort you want to give and the amount of unproductive, unrewarding and unpleasant work is reduced. Creating such a management system is not easy; it requires hard work, and it requires working smarter.

Related: Dream More, Work LessSigns You Have a Great Job … or NotRespect People by Creating a Climate for Joy in Work

Giving Executives 40% of Revenue is Insane

I have previous written on my belief that excessive executive compensation had reached the level of a deadly disease of western management (building on the W. Edwards Deming’s list of 7 deadly diseases). I named excessive executive pay and a broken “intellectual property” system as new deadly diseases in 2007.

Here is a graphic from, It’s Twitter’s birthday, and its executives are getting huge stock-based gifts, showing the massive executive give-away at Twitter.

chart showing how much Twitter gave to executives as percent of total revenue

Twitter has given executives $2,000,000,000 in just stock based compensation from 2011 through 2015. Twitter’s revenue for those 4 years was only $4,709,000,000. So Twitter gave executives 42.5% of revenue. This is of revenue, not earnings, Twitter isn’t even profitable.

Granted this is an extremely bad case but this pattern of giving away hundreds of millions of dollars to executives is common. It is destructive. It is disrespectful. It is a stain on those participating in the looting of companies for the benefit of the executive bureaucrats – those that enable them to siphon off the returns generated by companies into their pockets.

Related: Toyota Post Record Profit: Splits $15 million in Pay and Bonus for top 21 Executives (2014)Business 901 Podcast: Two New Deadly Diseases for Business (2013)Massive Bonuses Encourage Executives to Take Massive Risks (leverage etc.)

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Change Management: Create a Culture Seeking Continual Improvement or Use Band-Aids?

Successfully shepherding change within an organization is often a challenge. Often change management strategies are mainly about how to cope with a toxic culture but exclude the option of fixing the toxic culture. Why not address the root causes instead of trying band-aids?

The most effective strategy is to build an organizational culture into one that promotes continual improvement. A continual improvement culture is one that is constantly changing to improve (grounded in long term principles: respect for people, experiment, iterate quickly, etc.).

You can try to push change in an ad hoc basis by adopting some strategies to create a similar feeling about the individual change effort. But that isn’t as effective as establishing them in the culture are. Strategies such as: going the gemba, pdsa, build trust via respect for people…

These tools and concepts build trust within the organization. The do that by showing people are respected and that the change effort isn’t just another in the long line of wasted effort for ineffectual change. The first part can be addressed, normally the second part can’t be addressed effectively. Often that is at the core of the issue with why the change effort isn’t working. It is a bad solutions. It hasn’t been tested on a small scale. It hasn’t been iterated numerous times to take a seed of an idea and grow it into a proven and effective change that will be successful. If it had been, many people would be clamoring for the improvement (not everyone, true, but enough people).

But still you can use strategies to cope with lack of trust in your intentions with the change and lack of trust in the effectiveness and fear of change. Some of those are included in the links below. But mainly my strategy is based on focusing on building the proper culture for long term excellence and the change management strategies are just short term coping mechanisms to help deal with the initial challenges. Using those strategies as a long term solution for dealing with change in a toxic culture isn’t a very sensible way to manage.

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Top 21 Executives at Toyota Getting a Raise to a Combined US$14.9 Million

The difference between Toyota and so many other companies is obvious in many ways. One of the stark differences is how executives are paid. Toyota’s belief in a strong management system contrasts with the self worship many USA executives practice. How the executives pay themselves illustrates this very well.

Even with a proposed 19% pay boost the top 21 executives at Toyota would get a combined US$14.9 million in the proposal for this year.

Toyota Plans 19% Boost in Director Pay After Record Profit

Toyota proposed 1.52 billion yen ($14.9 million) in combined compensation and bonuses to 21 directors, including President Akio Toyoda, in a notice to shareholders today. The Toyota City, Japan-based company paid 1.28 billion yen the previous fiscal year.

After recording an unprecedented 1.82 trillion yen profit last fiscal year, Toyota forecast this month that net income will slip 2.4 percent in the year ending March 31. The company predicts deliveries to increase in every major region except Japan, where the nation’s first sales-tax increase in 17 years is expected to temper demand.

Toyota has proposed raising its year-end dividend to 100 yen a share, or 165 yen for the full year.

The deadly disease of extremely excessive executive pay has been doing more and more damage every year in the USA. Toyota has avoided the pitfall shared by so many self-centered USA CEOs. The 19% raise does possibly indicate that Toyota is slipping (they also received a 19% increase last year). But they have a long way to go before executive pay becomes a serious problem at Toyota.

The 21 Toyota executives together don’t get paid what CEOs at companies in the USA that make as much as Toyota does (few companies are as successful as Toyota). Many senior executives that are not CEOs in companies in the USA make much more that all 21 Toyota executives together. Europe has largely adopted the massively overpaid practices for senior executives from the USA. Most European companies lag behind the abuse of USA executives, but the European companies use the excuse of the USA to grab ever increasing amounts from corporate treasuries. In do so they adopt similar reckless management practices in order to justify taking so much.

For now, executive pay (and with it all the management distortions caused by massively unjust pay packages for executives cause within companies) is a big competitive advantage for Toyota. Not all USA companies allow executives to loot the company, for example, Costco continues to pay executives and staff fairly and does very well. But many USA companies are being torn apart by executives seeking and taking hugely unjust pay packages.

Total pay for union workers at Toyota will increase 8.2% on average from last year (I think this is pay for Japanese union workers, though I am not sure about that). This was also the same amount as the increase was in 2014. This seems an unlikely coincidence, it seems intentional. If you see data like this from a process it often indicated an artificial cap exists (or there are restraining forces on the process that make data points beyond certain limits very unlikely).

If you have seen lower figures for pay increases for Toyota workers, that was for the regular pay level which did not go up much. Toyota has a very large profit sharing plan. Profit sharing payments to union workers were over 6 months of regular pay. The main increase in pay for employees was in profit sharing. The “profit sharing” payments are negotiated so it isn’t exactly like what you may think of as profit sharing but it is essentially what those payments are it seems to me.

Related: Toyota Post Record Profit and Splits $15 million in Pay and Bonus for top 21 Executives (2014)CEOs Plundering Corporate CoffersToo often, executive compensation in the U.S. is ridiculously out of line with performance – Warren Buffett (2006 – it is even worse today)No Excessive Senior Executive Pay at Toyota (2007)Honda’s 36 board members, included the CEO, were paid $13 million in 2008

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The Aim Should be the Best Life – Not Work v. Life Balance

My father had the most job satisfaction of anyone I have known. He had no separation between work and life. We toured factories on vacation. I visited Davidson College in North Carolina because he was consulting with a client in Charlotte before we went up to Duke and North Carolina for visits and asked the CEO what school I should visit. His grad students would call the house frequently.

Many of his best friends were colleagues. That is how I grew to know people like George Box, Brian Joiner, Soren Bisgaard and Peter Scholtes as I grew up. Various permutations of our family lived overseas based on his jobs in London (before kids), Singapore, Nigeria and China. Those experiences dramatically impacted all our lives and they were not about separating work from life.

The desire for a life embedded in other cultures and for travel drove decisions about work. He lived in Japan (because of his Dad’s job) for 2 years as a kid and that sparked his desire to do more of that as an adult.

My little brother, Justin, pushing me on a scooter at our house in Singapore.

My little brother, Justin, pushing me on a scooter at our house in Singapore.

The sensible aim is to optimize your life. Work is a big part of life. As with any system the results depend on the overall system not the performance of individual parts taken separately. Dad also died young. He was happy to have lived such a good life, even if he wished he could have lived longer he wasn’t bitter about missing anything.

When he learned he would die (of cancer) he mainly continued what he had always been doing living life and working on what he thought was worthwhile. One project he did take on, along with George Box, was creating the Center of Quality and Productivity Improvement at the University of Wisconsin-Madison. George’s speech about Dad’s work provides a nice look at how work and life – William G. Hunter: An Innovator and Catalyst for Quality Improvement.

He honestly looked back on his life and felt he had a life that few could have topped, even though it was cut short. He was certainly optimistic and positive. But my sense was this was his honest assessment, it wasn’t just some fake front he put on for others. He had been living his life as well as he could his whole life. And continuing to live it as long as he could was all he wanted to do.

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