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Posts selected fromManagement Blog - Engineering Blog - Investing Blog and other blogs

• Getting and Keeping Great Employees

  I think the main thing to do is to respect employees (and have that visible in the management decisions made in the organization). Stopping the demotivation would be a big step for many organizations. And to manage your organization with the understanding that the organization’s purpose should be to benefit the various stakeholders (shareholders, customer… and employees).      

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• Arbitrary Rules Don't Work

  You can’t just expect people to act in a way that seems arbitrary.

  ...

  It is not ok to expect people to think the way you want them to. You have to understand how people will react and create solutions based on that.

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• Joy in Work – Software Development

  Software programmers are more likely to really enjoy what they do. There are many reasons for this not the least of which is that they have a fair amount of control over their careers. If they don’t like what they are asked to do, the tools they are asked to work with… they will (more than others) leave for another job.

  Some managers get frustrated that such people are not willing to put up with the normal bother everyone else seems willing to accept (programmers are often “unreasonable”). But I see an occupation that is more focused on joy in work than most. And creating joy in work is what managers should be worrying about – not getting troublemakers to fall into line.

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• The Problem with Targets

  ... Brian Joiner provides another reason why targets are harmful: there are “3 ways to improve the figures: distort the data, distort the system and improve the system. Improving the system is the most difficult.” And so most often targets results in distortion of the data (faulty data) or distortion of the system (meet target by shifting resources and effort from other parts of the system). Both of those actions are harmful to the system.

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• 2007 has been a difficult year for Toyota

  I find the quote “2007 has been a difficult year for Toyota” found in The Dings and Dents of Toyota a bit amusing. Toyota has had some problems as the article notes like product recalls and losing a handful of employees to Ford and Chrysler. They are about even with GM in worldwide sales and posted a profit of nearly $14 Billion (I believe maybe 20 companies have ever earned that much in any year) in the year ending March 2007 and continue to make huge profits this year (Toyota reported their best quarter ever in August). With difficulty like this who needs success:-)

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• The Lazy Unreasonable Man

  My view of myself places me in both of these camps (lazy and unreasonable). But, honestly, I have become more reasonable over time and while it makes me less difficult to put up with I think I am less effective...

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• Fooled by Randomness

  When people are asked to explain random variations in data they will make up special causes (that they often even believe are special causes even when they are not) but you can improve management a great deal by just stopping the requirement to “explain” common cause variation...

  Use that time instead to standardize processes. Create control charts for critical processes. Run experiments using PDSA cycle…

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• Traveling for Health Care

  My guess is that traveling for health care is going to increase greatly in the future. Health costs in the USA are enormous. Costs in Europe are different – often in wait time (or costs to avoid waiting) but another option is available – travel. Countries would be very wise to focus on building up this industry in my opinion. The economic benefits could be huge. The market is huge and growing. And the rich countries do not appear to be doing very well – especially the USA. The country needs to invest in a rigorous quality assurance system.

  It is almost certain the first attack will be attempts to frighten customers by saying your country is unsafe. And those tactics will be used to try and get the governments of rich countries to impose restraints on the ability of their citizens to seek health care in your country...

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• Bringing Lean Principles to Service Industries

  Iteration is very important. It is important in proper use of the PDSA cycle – many quick iterations are much better than one long slow one. And for software application development it is an excellent strategy.

  I think iteration is even more important in software application development than most other areas (for now anyway) because many stakeholders cannot visualize what they need from software. Therefore attempts to force rigid requirements up front fail...

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• T.N. Goh received ASQ Statistics Division’s William G. Hunter Award

  I first met Bill 38 year ago, when he was in Singapore helping us set up the first school of engineering in the country. He persuaded me to go to the graduate school at UW-Madison and I daresay that’s the best advice I ever got in my whole career. Now when I come to think of it, what Bill stood for in his lifetime has not been, and never will be, out of date. He had advocated the use of statistical thinking and the systems approach, which if anything is even more critical today in handling issues such as global warming and government effectiveness...

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• The Early History Of Quality Management Online

  I started looking at quality management resources online in 1995 (maybe 1994). At the time I was on the board of the Public Sector Network – what would become the American Society of Quality (ASQ) government division. When we started working with ASQ it took something like 2 months from the time I wrote an article until people received it. Now in 1995, the internet (outside of universities) was in its infancy. I was writing a column on the resources online for quality management – these consisted of bulletin boards (that you used your modem to call directly) and “gopher” and “ftp” sites and email lists a very few web sites... Well things changed frequently back then and by the time my article would be published phone numbers wouldn’t work, addresses would be out of date, etc..

  So I figured I should post my article online so people could just go there and see the updated phone numbers, addresses, etc.. That wasn’t so easy to do back then. But several of us at a W. Edwards Deming Institute conference decided to create a Deming Electronic Network (DEN)...

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• Bring Me Solutions Not Problems

  What they are saying is: if you know of a problem but don’t know of a solution I would rather we continue to have that problem than admit some of my staff don’t know how to fix it (and then have to deal with it myself – maybe then having to accept responsibility for results instead of just blaming you if I am never told and there is a problem later…). I think that is setting exactly the wrong expectations.

  Employees should fix things. They should bring solutions to managers to improve things that might be out of their ability to fix. But if they know of a problem and not a solution and a manager tells the employee they don’t want to be brought problems then I don’t want that manager.

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• CEO’s Given Lottery Sized Payouts

  Today, in the USA, CEOs are basically win the lottery when they start and then either win some more and stay or don’t win and are let go. The lottery performance appraisal aspect Deming talked about (rewarding whoever random variation or macro economic and micro economic trends smiled upon during the period). So if a market (housing, oil, steel, investment banking, microchip, hotel…) is booming why give all the CEO’s in that market huge payoffs?

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• Keeping Older Workers

  Finland, Japan and a few others may lead the way but the western industrialized world is quickly aging. It seems pretty straight forward that the aging workforce is going to be needed. And companies are going to have to adapt (that is my prediction anyway). I have always thought it is crazy that we work full time and then stop all together. It makes much more sense to me for there to be a gradual easing of the workload.

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• Deming on being Destroyed by Best Efforts

  Best efforts are essential. Unfortunately, best efforts, people charging this way and that way without guidance of principles, can do a lot of damage. Think of the chaos that would come if everyone did his best, not knowing what to do.

      W. Edwards Deming

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