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

• Stratification and Systemic Thinking

  This is a great example of a positive special cause. How would you identify this? First you would have to stratify the data. It also shows that sometimes looking at the who is important (the problem is just that we far too often look at who instead of the system so at times some get the idea that it is not ok to stratify data based on who – it is just be careful because we often do that when it is not the right approach and we can get fooled by random variation into thinking there is a cause...

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• It Just Works

  The Kano model of customer satisfaction is an excellent way to view customer expectations.

  The Kano model states that you have expected quality – it just does what it needs to (what is expected). Then more is better type – give me more at the same price and I am happier. But where you really want to get as a company is products and services that delight customers.

  When you are delighted you are not easy prey to other companies. When you are satisfied you are ready for offers that say we will give it to you a bit cheaper or give you a bit more. But if you are delighted you don’t want to leave and instead are telling everyone you know how great this product or service is.

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• Communicating Change

  I believe the best way to communicate such changes is to explain how they tie into the long term vision of the organization. This requires that such a vision actually exists (which is often not the case). Then all strategies are communicated based on how they support and integrate with that vision. In addition that communication strategy incorporates an understanding about what weaknesses with past practices are addressed by this new strategy...

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• Bigger Impact: 15 to 18 mpg or 50 to 100 mpg?

  ...

  It also illustrates that the way the data is presented makes a difference. You can also view 100 mpg as 1/100 gallon per mile, 2/100 gallons per mile, 5.6/100 gpm and 6.7 gpm. That way most everyone sees that the 6.7 to 5.6 gpm saves more fuel than 2 to 1 gpm does. Mathematics and scientific thinking are great – if you are willing to think you can learn to better understand the world we live in every day.

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• Deming Companies

  I see Toyota as the best example of a Deming company. Dr. Deming did not propose a cookbook to follow. Instead he proposed a theory that requires learning and application within the specific institution. Toyota has created a management system that is based on Dr. Deming’s ideas and then they have evolved that over 60 years into something that is consistent with Deming’s management philosophy and has new ideas Deming did not mention. As odd as it may sound that very act of developing new concepts that were not mentioned by Dr. Deming is exactly what makes them the company that most exemplifies Deming’s management system.

  Other companies that have also done a great job applying his ideas. Peaker Services has done great things...

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• Great Visual Instruction Example

  This does a great job of explaining what you need to know clearly. While this presentation for Azithromycin doesn’t prevent a mistake it sure makes it much more likely that the process can be completed successfully. We need more effort in creating such clear instructions.

  Visual clarity is more important than lots of words. Applying that concept is not as easy as it sounds but it is a very important idea for instructions to end use and instructions for processes in your organization.

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• Capital Crescent Trail Photos (Washington DC)

  The Capital Crescent Trail goes along the Potomac River in Washington DC (on the C&O towpath). I hiked first along the Arlington, Virginia side of the Potomac (starting at the north end of the Teddy Roosevelt Island Parking lot) then crossing over at Chain Bridge and heading back down the Capital Crescent trail and over the Key Bridge to and making a loop hike out of it.

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• 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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• 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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• 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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• 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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