Blog posts on leadership

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

• New Toyota CEO’s Views (2005)

  Toyota has grown in the past few years, but [there’s a risk] that a belief that the current status is satisfactory creeps into the minds of employees. That’s what I’m worried about.

  We should never be satisfied with the current status. In each division, function, or region, we still have numerous problems to cope with. We need to identify each one of those tasks or problems and fully recognize them and pursue the causes. This needs to be done by all the people working for Toyota.

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• Why Do People Fail to Adopt Better Management Methods?

  It is confusing to know that better methods exist but to see those better methods being ignored.  It seems that if there were better ways to manage, people would adopt those methods.  But this just isn't the case; sometimes better methods will be adopted but often they won't.  People can be very attached to the way things have always been done.  Or they can just be uncomfortable with the prospect of trying something new.

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• Robots for Health Care from Toyota

  Most often innovation efforts take the form of understanding the jobs your customers are using your products and service for now and developing new solutions to delight those customers. This is difficult for companies to pull of successfully.

  Occasionally innovation involves meeting completely new needs of customers. For example Toyota started as a loom company and is now known as a car company. Making such a radical change is not often successful.

  Will Toyota be able to add robots to the products it produces successfully? I believe they have a chance. But it won’t be easy.

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• Creating a Deep Commitment to Delighting Customers

  Those organizations that can delight customers today and take the steps today that position the organization to delight customers in the future will prosper and grow. But building and maintaining a management culture that reinforces delighting customers and long term thinking is quite difficult.

  ...

  Successfully delighting customers requires much more than a wish that customers were delighted with our organization. It requires knowing what your customers want and creating system that can reliably delivering that to customers.

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• Innovation in Organizations

  Innovation is one of the areas of management improvement that is not given sufficient attention.  Innovation is critical to the success of organizations and to the Deming management philosophy. Deming however, never had much specific advice on how to innovate. The management strategies he proposed do support innovation: truly knowing your customers, constancy of purpose, truly knowing your business, understanding your purpose, etc..

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• Technological Innovation and Management

  Organizations need to be designed to be robust and to cope well with the increasingly rapid pace of transformative innovation. This again reinforces the importance of management improvement practices that I have been writing about here (on the Curious Cat Management Improvement blog) for more than 10 years. Organizations that do not delight customers, know the jobs to be done that their customers have, focus on the future (long term thinking), understand how to use data, have well designed processes that allow those at the gemba to know what to do and know how to rapidly adjust based on new realities and possibilities are at great risk.

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• Agile Software Development and Deming's Ideas

  It's one of the reasons for "people over process" and all that; they believe that a software developer should be respected. Yes, they should. Factory workers should be respected, too. Everyone should be respected. That's what Deming was talking about. So then the idea that Deming was trying to impose on software developers some rigid controls that they shouldn't be subject to is not so. And not only wasn't he doing that, he wasn't doing that to factory workers either.

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• Lean Thinking and Management

  I agree that we should acknowledge the paucity of success stories for improving the practice of management. The failures of management are not minor. The problems are large and the successes seem limited. The biggest thing I think we need to learn from this is that improving management is not easy. The concepts may seem simple but most of us can look around and see much more Dilbert Boss behavior than lean thinking behavior. And the gap between those two types of behavior seems to rise as you go “up” the organization chart.

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• The Importance of Critical Thinking and Challenging Assumptions

  Critical thinking is important to applying management improvement methods effectively. It is important to know when decisions are based on evidence and when decisions are not based on evidence. It can be fine to base some decisions on principles that are not subject to rational criticism. But it is important to understand the thought process that is taken to make each decision. If we are not clear on the basis (evidence or opinion regardless of evidence) we cannot be as effective in targeting our efforts to evaluate the results and continually improve the processes in our organizations.

  ...

  Changing the culture to one that values understanding and learning takes time. That process must be done with an understanding of psychology and the challenges of getting people to evaluate decisions. Creating a culture where it is expected that people think about the evidence and are comfortable explaining and defending the reasoning behind decisions is extremely important.

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• Dangers of Forgetting the Proxy Nature of Data

  We use data to act as a proxy for some results of the system. Often people forget that the desired end result is not for the number to be improved but for the situation to be improved. We hope, if the measure improves the situation will have improved. But there are many reasons this may not be the case (one number improving at the expense of other parts of the system, the failure of the number to accurately serve as a proxy, distorting numbers, etc.).

  I find something I learned from Brian Joiner an excellent summary – which I remember as:

  Data (measuring a system) can be improved by

  1. distorting the system
  2. distorting the data or
  3. improving the system (which tends to be more difficult though likely what is desired)
     Brian Joiner’s book, 4th Generation Management is a great book for managers.

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• Management Improvement History

  I do believe we need to improve our practice of Quality (and to do that we need to understand what happened in the past and why it was not more successful). The idea that Design of Experiments (DoE) was at the core of some Quality Movement to me is not at all accurate.

  
  In my experience only a few Quality professionals today understand what it means and how it should be applied. The idea that it was common place in the 40’s I seriously doubt (though I don’t have first hand knowledge of this). I find it difficult to believe we would have decided to stop using DoE if it was commonly done previously. The understanding I have from those that should know (like George Box and previously my father – Bill Hunter) is that it was not at all common practice and still is not outside of a few industries and even there it is isolated in the domain of a few experts.I do have first hand knowledge of the 80’s and the idea that we did “employee training in problem solving, team activities and just-in-time inventory” well is not even close to accurate. We sent people to training on these things but other than JIT inventory the effectiveness of these efforts were poor (with a few exceptions that really did well).

  “Quality” is not being practiced anywhere close to the level with which I am satisfied with in more than a few organizations. We have huge improvements to make in the practice of DoE, SPC, process improvement, having decisions made by the appropriate level (as close to the issue as possible), leadership, teamwork, data based decision making, the use of basically all the Quality tools, systems thinking, transformation…

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• Operational Excellence

  Saying the organization is focuses on new principles (partnering, lean, etc.) is not the same as applying those principles with the great success that Toyota does. That difference is huge and is driving many companies to outsource and try to dramatically cut costs. Reducing costs should be the outcome of improving efficiency.

  Toyota is successful manufacturing in the USA.

  ...

  I would agree that many companies don’t understand the critical importance of management excellence. Rather than take the difficult path to lead real change in their organization they focus on simple cost cutting measures (though usually not cutting executive salaries which have grown dramatically and are excessive in the USA compared to the rest of the world). That won’t work.

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• Targets Distorting the System

  I still remember Dr. Brian Joiner speaking about process improvement and the role of data well over a decade ago. He spoke of 3 ways to improve the figures: distort the data, distort the system and improve the system. Improving the system is the most difficult.

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• The Purpose of an Organization

  W. Edwards Deming described the purpose of an organization in New Economics, on page 51, as:

  The aim proposed here for any organization is for everybody to gain – stockholders, employees, suppliers, customers, community, the environment – over the long term.

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• Managing the Supplier Relationship, at Ford and Elsewhere

  Ford said they were committed to the Deming philosophy in the 1980’s and 1990’s. Donald Petersen, former CEO of Ford Motor Company, was one of those included in the Deming Library Tapes.

   

  Nothing has changed from 1990 to today [October 2005] that explains why Ford saying they are going to deal with suppliers differently now should work any better then such statements 15 years ago. Until they acknowledge what problems in their management system have caused them to fail to use sensible management practices that have been well know for decades I see no reason to believe their claims that they will behave differently this time.

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