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  • Customer Focus at Ritz Carlton and Home Depot

    Ritz-Carlton’s motto is “We are ladies and gentlemen serving ladies and gentlemen.” And they actually turn those words into reality. They are not platitudes with no action. The system is guided toward achieving that vision.

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  • How to Improve

    Good management systems are about seeking systemic adoption of the most effective solutions.

    Here is a simple example. Years ago, my boss was frustrated because an award was sent to the Director’s office to be signed and the awardee’s name was spelled wrong (the third time an awardee’s name had been spelled wrong in a short period). After the first attempts my boss suggested these be checked and double checked… Which they already were but…

    I was assisting with efforts to adopt TQM and the time and when she told me the problem and I asked if the names were in the automated spell checker? They were not. I suggested we add them and use the system (automatic spell checking) designed to check for incorrect spelling to do the job. Shift from first looking to blame the worker to first seeing if there is way to improve the system is a simple but very helpful change to make.

    This example is simple but it points to a nearly universal truth: if an improvement amounts to telling people to do their job better (pay attention more, don’t be careless, some useless slogan…) that is not likely to be as effective as improving the process.

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  • Poor Service – Industry Standard?

    I find it very frustrating how poor the service is most everywhere these days. Have you shopped in a Trader Joe’s? The contrast is amazing. I am used to most employees, on the phone, or in person, seeing the customer as a bother.  At Trader Joe’s, in stark contrast, the staff always seems happy to have customers. Which seems like a good indication that management is doing a number of things right.

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  • Making Better Decisions

    When times are good, many are content to let things go: not make any tough decisions or any that might upset someone… When in a bind it is accepted that something has to be done, so you can often get past the “we are doing ok, why make us change…” objections.

    ...

    Have the discipline to focus on the problems even when times are good. That is the key. That allows for a much broader range of options (when times are bad certain options are no longer available – for example, when Toyota had to lay off workers…). In general people are less effective under stress...

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  • Reacting to Product Problems

    Toyota is doing well but as they say themselves, over and over: Toyota still has plenty of room to improve. The key is to not only say so, but act on it (which I believe they are doing, the recalls give one indication of the continued need to improve).

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  • Design Your Organization to Serve Customers Well

    Around all these processes is potential information. And you can either use it or not use it. And in most places just waste it.

    There is valuable information just running down the drain. If you have everybody turned on and looking at process and saying how can we make them work better, you need to get some information, you need to get some data. That is the way you actually solve problems.

    William Hunter in seminar, Quality is a Journey to Excellence

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  • Encourage Improvement Action by Everyone

    Centralizing decision making is not an effective way to manage organizations. Organizations need to encourage improvement by everybody in the organization. We need to create a system where that is encouraged and supported.

    ...

    Without an understanding of systems and interactions sometimes changes are made without an understanding of the consequences those changes. The beer game is a good example of one way this can cause problems (people don’t always understand all the consequences of their actions). To be clear I agree with setting up systems that allow people to make improvements in the workplace. Just be cautious to avoid tampering.

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  • Compensation and Executive Pay at Whole Foods (2007)

    the average large corporation in the United States distributes 75% of their total stock options to only 5 top executives with the remaining 25% going to everyone else in the company (actually most of the remaining 25% goes to the next level of executives below the top 5). At Whole Foods, the exact opposite is true: the top 16 executives have received 7% of all the options granted while the other 93% of the options have been distributed throughout the entire company with all Team Members eligible for a grant after 6,000 hours of service to the company.

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  • Better Meetings

    Meetings are perennial problems. People sit through meetings and then complain about how big a waste of time it was. Here are a couple very simple tips to try and actually improve (instead of just agreeing that meetings are wasteful, but doing nothing to improve).

    • Have an agenda
    • Document decisions

    ...

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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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  • The Triumph of Lean Production

    ... Just think about that Toyota’s Georgetown plant (seen by many as one of the best examples of lean manufacturing) stops the line 2,000 a week. Do you think your organizations systems are as well designed as the Georgetown plant? Does your organization stop to examine what needs to be improved with anything approaching that level...

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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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  • Toyota, Lean and Management Consultants

    ...Serious attempts will also be frustrating at times and can also fail but most organizations won’t even commit to attempting serious change. Most will just look for some items from current fads to dress up how they have always managed.

    That management consultants will also jump from fad to fad, without conviction, is not news. Deming called them “hacks” in the 1980’s. Bob Sutton’s excellent article calls 90% of management advice crap...

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  • Bad Management Results in Layoffs

    Layoffs are a failure of management.  If the company has not been executing a long term strategy to respect people and manage the system to continually improve, manage for the long term, working with suppliers... it might be they have created an impossibly failed organization that cannot succeed in its current form.  And so yes it might be possible that layoffs are required.

    ...

    At exactly what point some layoffs are necessary and how much other stakeholders are squeezed to avoid layoffs is not simple to answer (just as employees are squeezed to avoid suffering by other stakeholders).  I think to have any pretense of good management systems while resorting to layoffs management must say what specific failures lead to the situation and what has been done to fix the system so such failures will not re-occur.  Those explanations should seem to be among the best applications of 5 why, root cause analysis, systems thinking, planning... that you have seen.  Layoffs should be seen as about the most compelling evidence of failed management.  Therefore explanations attempting to justify the layoffs have as high a barrier to overcome as any proposed improvement to the organization/system.

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  • Business 901 Podcast with John Hunter: Two New Deadly Diseases for Business

    I recorded a series of podcasts when promoting my new book – Management Matters: Building Enterprise Capability.

    In this podcast I discuss the 2 new deadly diseases facing companies: excessive executive pay and systemic "intellectual property" related problems.

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