Tag Archives: Systems thinking

The Trouble with Performance Reviews by Jeffrey Pfeffer

The Trouble with Performance Reviews [the broken link was removed] by Jeffrey Pfeffer Managers don’t like giving appraisals, and employees don’t like getting them. Perhaps they’re not liked because both parties suspect what the evidence has proved for decades: Traditional performance appraisals don’t work. But as my colleague and fellow Stanford professor Bob Sutton and I pointed out in our book, Hard Facts, Dangerous Half-Truths, and Total Nonsense: Profiting from Evidence-Based Management, belief and conventional wisdom often trump the facts. … Continue reading →

Posted in Deming, Lean thinking, Management, Management Articles, Performance Appraisal, Respect, Systems thinking, Toyota Production System (TPS) | Tagged , , , | 2 Comments

Computer Network Operations Center Failures

Obviously many businesses are now dependent on computer Network Operations Centers (NOC). Some of these data centers can cause millions of dollars in lost sales each minute if they fail. So sound engineering, including off-site redundancy is critical. Authorize.net is a recent example of such a failure, Authorize.net Goes Down, E-Commerce Vendors Left Hanging Payment gateway service provider Authorize.net has been down and out for several hours… That has big implications: since the service is used by tens of thousands … Continue reading →

Posted in Customer focus, Economics, IT, Management, Systems thinking | Tagged , , ,

The Myth of the Genius Programmer

Nice talk on fear of looking foolish. The speakers discuss the idea that visibility is good. Don’t hide. Make everything visible and the benefit from many people’s ideas. The talk focuses on software development but is true for any work. “criticism is not evil” – Very true. “At Google we are not allowed to submit code until there is code review.” At the bottom line they are repeating Deming’s ideas: improve the system – people are not the problem, bad … Continue reading →

Posted in Google, Psychology, Respect, Software Development, Systems thinking, Theory of Constraints, webcast | Tagged , , , , , | 1 Comment

Community Medical Care Successes

The Cost Conundrum by Atul Gawande, New Yorker (The Power of a Checklist was published there in 2007 by the same author) For example, Rochester, Minnesota, where the Mayo Clinic dominates the scene, has fantastically high levels of technological capability and quality, but its Medicare spending is in the lowest fifteen per cent of the country—$6,688 per enrollee in 2006, which is eight thousand dollars less than the figure for McAllen. Two economists working at Dartmouth, Katherine Baicker and Amitabh … Continue reading →

Posted in Customer focus, Deming, Economics, Health care, Systems thinking | Tagged , , , | 1 Comment

Penske to Buy Saturn from GM

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 … Continue reading →

Posted in Management, Manufacturing | Tagged , , , , | 1 Comment

Dr. Russell Ackoff Webcast on Systems Thinking

Dr. Ackoff is one of two management thinkers that any manager, that is serious about improving management results in their organization, should study (the other is Dr. Deming). There are plenty of others that are also great resources. From part 2 of his talk: “Why-questions, about objects called systems, cannot be answered by the use of analysis… The product of explanation is understanding… The product of analysis is how things work, never why they work the way they do. Explanations … Continue reading →

Posted in Creativity, Deming, Management, quote, Science, Systems thinking, webcast | Tagged , , , , , | 4 Comments

Carve Out Time to Think

Dan Markovitz recently discussed the practice of the CEO of eBay to take thinking days, Why isn’t “thinking time” part of your standard work?, Some people think that it’s all well and good for a CEO to unplug himself — when you’re the big cheese, you make the rules — that’s just not possible for the folks in the trenches. But I think that’s a lie. Unless you’re in a sadly dysfunctional organization (and if you are, feel free to … Continue reading →

Posted in Management | Tagged , | 1 Comment

Why Setting Goals can Backfire

Dr. Deming long ago stated in his 14 obligations of management: “Eliminate numerical goals, numerical quotas and management by objectives.” I think he was right then, and is right now. A goal can help set the scope of the effort. If you are aiming for 2% improvement different strategies may make sense than if you are aiming at 50% improvement. But that type of use is rare. The problem with goals is what actually happens in organizations. They create serious … Continue reading →

Posted in Data, Deming, Management, Process improvement, Psychology, Systems thinking | Tagged , , , , | 2 Comments

Leadership

Leadership is the act of making others effective in achieving an aim. Leadership is not about being great yourself. Leadership does involve more than making others effective. Leaders need to know what needs to be done, and then make others effective, based on that knowledge. As Dr. Deming said about any situation: It is not enough to do your best; you must know what to do, and then do your best. Leadership is not about getting a good performance appraisal. … Continue reading →

Posted in Deming, Management, Systems thinking | Tagged , , , , | 4 Comments

Build Your Business Slowly and Without Huge Cash Requirements

Get Rich Slow by Josh Quittner At no other time in recent history has it been easier or cheaper to start a new kind of company… These are Web-based businesses that cost almost nothing to get off the ground … The term ramen profitable was coined by Paul Graham, a Silicon Valley start-up investor, essayist and muse to LILO entrepreneurs. It means that your start-up is self-sustaining and can eke out enough profit to keep you alive on instant noodles … Continue reading →

Posted in Career, Competition, Creativity, Innovation, Investing, IT, Management, Systems thinking | Tagged , , , , , , ,

Negativity

Don’t be negative. Most people agree with that statement. We see being negative as bad. If you don’t have something good to say, don’t say anything. Well, I don’t agree. While presenting your ideas in a constructive way is helpful, I don’t agree with those that try to discourage negative comments. I understand that the psychology of many people has lead them to want confirmation and to dislike criticism of ideas they propose. And I understand our society has re-enforced … Continue reading →

Posted in Management, Psychology | Tagged , , | 6 Comments

Managing Passionate Employees

Passion vs. Productive There are actually few organizations that can support passionate employees – even if they say they want them. That’s because the original industrial revolution was designed to support productivity. Productivity means you produce. That’s how you’re measured. Passion is difficult to quantify … Managers want passionate employees, but don’t always know how to manage them. Passionate employees question things, probe and push. Who’s got the time to deal with that? Productive employees get things done. No questions … Continue reading →

Posted in Creativity, Management, Psychology, quote, Respect, Systems thinking | Tagged , , , , , , , , , ,

How Private Equity Strangled Mervyns

I do not like the actions of many in “private equity.” I am a big fan of capitalism. I just object to those that unjustly take from the other stakeholders involved. It is not the specific facts of this case, that I see as important, but the thinking behind these types of actions. Which specific actions are to blame for this bankruptcy is not my point. I detest that financial gimmicks by “private capital” that ruin companies. Those gimmicks that … Continue reading →

Posted in Deming, Management, Respect, Systems thinking | Tagged , , , ,

The Software Engineering Manager’s Lament

The engineering manager’s lament by Eric Ries: In teams that follow the “pick two” agenda [quality, time or price], which two has to be resolved via a power play. In companies with a strong engineering culture, the engineers pick quality. It’s their professional pride on the line, after all. So they insist on having the final say on when a feature is “done” enough to show to customers. Business people may want to speed things up by spending more money, … Continue reading →

Posted in IT, Management, Software Development, Systems thinking | Tagged , , , ,

Six Sigma v. Common Sense

Response to LinkedIn question [the broken link was removed]: “Whether Six Sigma as a quality tool really delivers the benefits ? How does it makes difference from a common sense approach ? (Where the process wastes and the required solution is known / can be easily identified just by applying common sense)” Six sigma (or another management improvement method) can help in several ways. First, lots of things that are sensible are not done. A method to assure that more … Continue reading →

Posted in Management, Quality tools, quote, Six sigma | Tagged , , , , , , | 2 Comments

Idle Workers Busy at Toyota

Idle Workers Busy at Toyota Instead of sending the workers home, as the Detroit makers often do, Toyota is keeping them at the plants, though. The employees spend their days in training sessions designed to sharpen their job skills and find better ways to assemble vehicles. … At its Princeton plant, by contrast, Toyota is using the down time to hone its workers’ quality-control and productivity skills. The company has pledged never to lay off any of its full-time employees, … Continue reading →

Posted in Lean thinking, Management, Management Articles, Manufacturing, Respect, Toyota Production System (TPS) | Tagged , , , , | 2 Comments