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

• 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 Now when I come to think of it, what Bill stood for in his lifetime has not been, and never will be, out of date.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frequently back then and by the time my article would be published phone numbers wouldn’t work, addresses would be out of date, etc..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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• The Importance of Management Improvement

  If organizations just adopt management improvement practices I firmly believe customer service, financial performance and employee satisfaction could be improved. This was a big part of the reason I started to use the internet to share management improvement ideas back in 1996 (plus I find management improvement interesting).

  On the note of making a difference in people’s lives. I have had far more people tell me how my father (Bill Hunter) made a huge difference in their lives than ever tell me anything like that about myself...

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• Don’t Empower

  Using the term, "empower", implies that it one person empowers another person. This is not the correct view. Instead we each play a role within a system. Yes there are constraints on your actions based on the role you are playing. Does a security guard empower the CEO to enter the building?

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• Don’t Empower

  I believe I learned this from Peter Scholtes, though maybe I am remembering it wrong or explaining it wrong (so give him the credit and if I mess it up it is my fault). I believe there is a problem with using the term empowered. Using the term implies that it one person empowers another person. This is not the correct view. Instead we each play a role within a system. Yes there are constraints on your actions based on the role you are playing. Does a security guard empower the CEO to enter the building?

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• Data Based Blathering

  I am tired of seeing the American Customer Satisfaction Index (ACSI) promoted as if it were some encouragement for better management when all it seems to do to me is encourage superficial, non data based claims. And since it my blog I can rant if I feel like it.

  ...

  They think a flat American Customer Satisfaction Index (ACSI) reading is going to lead to weak consumer spending? I doubt it. I really doubt it. What data, or theory is that based on? Jeez this whole thing just makes me crazy. Trying to use a index to promote the “importance of quality principles” (ASQ is one of the “sponsors” of this effort) and customer focus in this way – ARGH. It does the opposite – showing people how to misuse numbers. How to overreact to variation. How to compare one dot to another dot and make claims from those 2 dots. I am sure I will make mistakes in my statements but the ACSI has bugged me since it was started with the way it ignores sound quality practices and promotes the opposite of what people like Dr. Deming taught.

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• Are Google Management Practices Worth Studying?

  Larry Dignan asks “Is Google reinventing corporate management or just living off the fruits of one big breakthrough?” Well, I believe Google offers a great deal for managers to study – see our posts on Google management practices. But that is not the same as reinventing corporate management. Most companies have no way of just replacing their management system with a “Google management system” – they don’t have the managers to make it work, or the staff or the systems or maybe even the business… However there is plenty that can be learned and adopted.

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• Cool Workspaces

  Beautiful work spaces acknowledge the people that work in those spaces and show a respect for employees as people.

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• Stop Demotivating Me!

  ...What should a manager do? Eliminate the de-motivators. Provide coaching (building the capacity or employees and the organization). And manage a system to allow people to take pride in what they do. Holding pizza parties, pep talks, displaying posters and annual performance reviews are not what is needed. But those actions are really easy so that is what some people do – instead of what is needed. How sad.

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• Data Can’t Lie

  Many people don’t understand the difference between being manipulated because they can’t understand what the data really says and data itself “lying” (which, of course, doesn’t even make sense). The same confusion can come in when someone just draws the wrong conclusion from the data that exists (and them blames the data for “lying” instead of themselves for drawing a faulty conclusion).

  The data can be wrong (and the data can even be made faulty intentionally by someone). Or someone can draw the wrong conclusion from data that is correct. But in neither case is the data lying. It is also common to believe the data means something other than what it does (therefore leading to a faulty conclusion).

  ...

  If all those involved understand how to draw conclusions from data it is not easy to mislead them.

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