Blog posts on Deming

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• Profound Podcast with John Hunter, Part Two

  In this podcast I discussed my thoughts on management improvement, Deming, respect for people, systems thinking and more.
  

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• Another Quota Failure Example

  However, as I was to learn from Dr Deming, this was judging performance using arbitrary goals, which fostered short-term thinking – the only thing they cared about was: Did I make my quota this week? Misguided focus. The focus was not at all on the customer. The focus was: How much money can I make off this customer?
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  It created a lot of internal conflict. What type of internal conflict? Well, the salespeople hated having new salespeople hired on the floor, because they felt like it would cut into their commission…

  Also, judging performance using arbitrary goals fostered a giant amount of fudging of the figures.

  Jim McIngvale, CEO Gallery Furniture and author of Always Think Big.

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• Eliminate Slogans

  Text from the poster: “If a pretty poster and a cute saying are all it takes to motivate you, you probably have a very easy job. The kind robots will be doing soon.”

  One of Deming’s 14 obligations of management was to eliminate slogans - Stop Demotivating Employees.

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• Cease Mass Inspection for Quality

  Deming believed in improving the process, and doing so using process measures (which often may involve sampling) to guide improvement efforts. He did not believe in using inspection to select out the bad products, which is what inspection largely was before Deming.

  More on Deming’s thought on Inspection...

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• Making Changes and Taking Risks

  The system had to change. “We eliminated commissions, incentives, promotions, contests, P&Ls, forecasts, budgets, the entire functional organization chart,” Rodin says. It was a radical move. Contests and commissions — internal competition — were a way of life in the industry, the universal motivational tool.

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• Righter Performance Appraisal

  Just because it would be nice for performance appraisal to work doesn’t mean it does work. As Deming said some numbers are unknown and unknowable and the wish that it is possible to quantify the contributions of people doesn’t mean you can. People cling to the idea that performance appraisal is the only tool we have to manage performance so we must use it. Even if most people realize it is just a game that accomplishes little, if anything positive, and causes great frustration and animosity they persist. Hopefully performance appraisal will be seen as “artifact of the past” sometime soon.

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• Turning The PDSA Cycle Rapidly (Iteration)

  One point he made was that he often finds that organizations fail to properly “turn” the PDSA cycle (by running through it 5-15 times quickly and instead to one huge run through the PDSA cycle). One slow turn is much less effective then using it as intended to quickly test and adapt and test and adapt…

  In my experience people have difficulty articulating a theory to test (which limits the learning that can be gained). He offered a strategy to help with this: write down the key outcome that is desired. Then list the main drivers that impact that outcome. Then list design changes for each outcome to be tested with the PDSA cycle. 

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• Creating and Sustaining Great Management Systems

  It is hard enough to create and sustain great management systems without adding more challenges to achieving success. When the management system results in having credit for each success fought over (to allocate credit to whoever convinces others they deserve the credit) it is much harder.

  This is one of the many ways Performance appraisals schemes (where people have to claim responsibility for successes in order to get more cash) create problems.

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• Common Cause Variation

  Every system has variation. Common cause variation is the variation due to the current system. Dr. Deming increased his estimate of variation due to the system (common cause variation) to 97% (earlier in his life he cited figures around 80%). Special cause variation is that due to some special (not part of the system) cause.

  ...

  To take action against a special cause, that isolated special cause can be examined. Unfortunately that approach (the one we tend to use almost all the time) is the wrong approach for systemic problems (which Deming estimated at 97% of the problems).

  That doesn’t mean it is not possible to improve results by treating all problems as some special event. Examining each failure in isolation is just is not as effective. Instead examine the system that produced those results is the best method.

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• Why Extrinsic Motivation Fails

  Lean thinkers understand this idea as respect for people. Dr. Deming talked about joy in work.Douglas McGregor talked about theory x and theory y thinking. All of these perspectives incorporate an understanding of workplace systems and human psychology. Extrinsic motivation is easy but not effective. It is really just abdicating management and using extrinsic motivation in place of management. The alternative requires managers to actually manage. This is challenging but the correct choice to make.

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• Performance Appraisals – Is Good Execution the Solution?

  Good execution of performance appraisal is not the solution. More people are realizing that improving how performance appraisal are done is an attempt to do the wrong thing better. If you insist on doing the wrong thing, I suppose you might as well do it better but how about just not doing the wrong thing at all? What should be done? See: Performance Without Appraisal and read chapter 9 of The Leader’s Handbook.

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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.
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  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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• Transformation and Redesign

  ...transformation effort undertaken at the White House Communications Agency. It shares the Agency’s efforts beginning with a Deming-based approach to continuous quality improvement through implementation of a total organizational redesign using systems thinking precepts. It describes the obstacles to implementing quality concepts in a high visibility, high security organization and examines the influence of Agency’s organizational culture on quality performance and improvement. The discussion examines the applicability of several broadly accepted quality concepts to the “ultimate command-and-control” organization.

  A couple years after this article I I went to work for Gerald Suarez at the White House Military Office (WHMO). WHCA is one of seven operational units of WHMO, others include: Air Force One, Camp David and the White House Medical Unit.

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• Louisville Slugger Uses Deming Management Practices

  “You would have thought that in 123 years of making baseball bats we would have figured it all out,” says plant general manager Frank Stewart. “But as you well know, in the business of improvement, you are never there. It’s always, what can I do better? What can I improve today?”

  Continual improvement is a critical practice to adopt as a standard practices (more of Deming’s 14 obligations of management). They moved production from a plant in New York to their headquarters in Louisville...

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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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