Blog posts on critical thinking

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• Avoiding Difficult Problems

  Coping with this issue (of avoiding unpleasant, systemic and long term rather than acute problems) is one of the things that separates great corporate culture from decent or bad corporate culture.
  
  If there are fairly obvious or fairly easy improvements those would likely be acted on. There are, rarely, but still sometimes, instances where those vocal or politically powerful individuals who would lose out in a fairly obvious improvement will prevent action.

  ...

  I am not convinced there are not ways to improve the situation. And I am pretty confident it is important enough to try. And I believe (though I might be wrong) with a concerted effort of knowledgable people improvements that would make a big difference in the quality of life could be achieved. I am not so certain those people involved in leading the effort would be seen in great lights though even if they "succeed." People are much more likely to remember negative consequences to them personally, even if they gain much more than they lost overall. 

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• What Loss Will a Business Suffer Due to a Dissatisfied Customer?

  You can’t know how much a dissatisfied customer will cost your business in the long run. You can make statistical judgements about how costly dissatisfied customers are to a business but those are loaded with many guesses. They can give a general indication of the magnitude of the costs but they are largely guesses, not something you can measure.

  Sometimes a business largely gets away poor quality for a long time. The customer doesn’t change behavior, doesn’t complain to others and doesn’t punish the company in the long term. But you never know when one small failure will cause the luck to run out and turn a customer against the business and costing it dearly.

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• Change Management – Post Change Evaluation and Action

  ...it is always critical to include process checks to evaluate if the improvement works as intended. It is amazing how often changes are adopted without any process to evaluate the effectiveness of the change. This leads to many problems and creates conditions where the rate of improvement is very slow.

  The rate of improvement is increased by improving how the organization improves. Monitoring the impact of changes is needed for this reason (to learn what is working well systemically and what weaknesses exist in how the organization is improving) as well as to make sure each change does actually improve results as expected. 

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• Rethinking Statistics for Quality Control with George Box

  George Box shared a presentation on Rethinking Statistics for Quality Control at the 2008 Deming Institute Conference in Madison, Wisconsin.

  In the presentation George discusses how to look at data from a process. He mentions why it was so important to understand what Shewhart understood about process data: the order of the data is extremely important; which is why run charts and control (process behavior) charts are plotted in time order...

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• Design the Management System with an Appreciation of Confirmation Bias

  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 strengths those people bring and mitigate the risks of 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...

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• Tilting at Ludicrous CEO Pay

  I continue to tilt at the robber barron CEO pay packages. Hopefully, at some point, the people approving these obscene pay packages can be shamed into stopping or replaced by people with some sense of decency. I was taught in the days of robber barrons the business world was seen as an amoral place (morality did not belong in this area of human endeavor) but that over time society decided that in fact morality did apply there. It is hard to reconcile that change with the behavior of CEOs and board approving ludicrous pay packages.

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• People are Our Most Important Asset

  ideally the organization would be providing all employees excellent coaching opportunities, all employees would be paid more than fairly, all employees would have the opportunity to develop along their desired plan, all employees would have great leadership, all employees would not be subject to continually annoyance of management system failures, all employees could count on the support of the system when needed…

  But in organizations that I have worked for we are have not reached that point. So while working to move the organization closer and closer to that goal, I believe making some extra effort to focus on those people that are helping move the organization in that direction. But it is risky if done without an understanding of systems, variation, psychology, etc.  Providing extra coaching, advice and attempting to protect people from the management failures you can’t get fixed seem like pretty safe methods.

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• How to Get Ahead

  I find that who says something is usually more important in predicting how people will react than what is said. As I have tested this myself I have learned how biased people are by who is talking; and I have tried to correct the judgments I reach (I know I don’t do it all the time but I try to especially for important things).

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• Factfulness – The Importance of Critical Thinking

  I have come to see a willingness to value critical thinking, even when it means forcing the organization to address tough issues, as one the differences between organizations that succeed in applying management improvement methods and those that fail. In many organizations that fail, more weight given to making things easy for your bosses versus continual improvement in providing value to customers (which often requires challenging existing processes, beliefs and power structures in the organization).

  Challenging the status quo is difficult and most organizations prefer to maintain a culture that takes an easier path. Management improvement often requires a willingness to encourage challenges to the status quo. The importance of challenging the status quo in your organization and in your own thinking is under appreciated.

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• Failure to Address Systemic SWAT Raid Failures
  The systemic failure of police raids continues to cause deaths of innocent people...

   

  There is a need to fix this system – not just making excuses every time yet another mistake is made. The mistakes are not special causes unique to the individual case but the common cause errors resulting from the current management practices.

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• Process Improvement and Innovation

  Every so often an article appears discussing the need to change focus from process improvement to innovation... I disagree on several grounds. First you have needed to focus on both all the time. Second, it is not an either or choice. Third, the process of innovation should be improved.

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• Using Incentives to Guide Social System Improvements

  ... In Stockholm people were against congestion pricing (70% to 30%). This isn’t surprising they see a new tax that only is a cost. They don’t understand that the system performance is going to improve – the cost will provide a benefit. Leadership is required to push forward when the benefits are not obvious to everyone. Once people saw that congestion was greatly decreased 70% supported congestion pricing.

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• Privacy Invasion as a Business Plan

  One of the worst behaviors by internet companies is to collect phone numbers in order to facilitate selling and integration of private information while pretending it is somehow a security issue. Though security experts all say using phone numbers for security adds security risks instead of using much more secure methods such as a security key. Companies that use deceptive security methods to collect phone numbers in order to sell the private information of their users make it very hard to trust what else they are doing.
  
  Twitter has long claimed a security reason to collect phone numbers [Twitter faces $250 million fine from the US FCC for these practices abusing the private information of users].

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• Workplace Management by Taiichi Ohno

  Ohno focused a great deal on the faulty perceptions derived from cost accounting thinking. He discussed the importance of not letting your understanding be clouded by thinking with the accounting mindset.

  If you insist on blindly calculating individual costs and waste time insisting that this is profitable of that is not profitable, you will just increase the cost of your low volume products. For this reason there are many cases in this world where companies will discontinue car models that are actually profitable, but are money losers according to their calculations. Likewise, there are cases where companies sell a lot of model that they think is profitable but in fact are only increasing their loses.

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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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