Blog posts on management

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

• 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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• Complicating Simplicity

  This post on the excellent signal vs. noise blog illustrates how one can lose their way when trying to simplify. Lean and other management improvement folks can learn a lot about eliminating non-value added steps, clean design, simplifying systems to improve performance… from this blog. The examples are mainly relating to software development from a true understanding of lean thinking(though I don’t have any evidence they are familiar with the Toyota Production System or lean tools/concepts)...

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• Toyota IT Overview

  IT solutions should support your processes not dictate them. I am a big fan of avoiding inflexible, proprietary (off the shelf) software. I am willing to spend money on in house developers to create customized IT solutions that support the business processes instead of IT solutions that dictate business processes.

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• Thoughts on Hospital Management by Deming

  A physician cannot change the system. A head nurse cannot change the system. Meanwhile, who would know? To work harder will not solve the problem. The nurses couldn’t work any harder.

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• Going lean Brings Long-term Payoffs

  The early successes provide resources to invest in making large more fundamental changes to the organization. Those successes also help convince people these lean ideas have merit. Dilbert does a good job of illustrating how many workers feel about the latest words spoken by their management. Without visible success expecting employees to believe the new management practices is unwise.

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• Deming in the New Economy

  Innovation rarely comes as the result of an apple falling from a tree and hitting you in the head.
  Innovation is more of a process – sometimes simple and buried deep within the psyche of the individual, and sometimes methodically sewn into the practices of a team – that is put in motion by the desire to improve the status quo.

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• Management Improvement History and Health Care

  I think it is wise to think about what improvement methods were tried in the past and try to understand why they failed in order to improve the chances of success today. I think the many of the things which tripped up TQM, Six Sigma, re-engineering… efforts in the past are waiting to do the same to those efforts today, including lean thinking efforts.

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• Excessive CEO Pay

  CEO’s that take such unethical large pay today are the robber barons of today and will deserve the judgement of history for the actions they take (I would imagine they are perfectly happy to take the money now and worry about opinions later). And those that approve such pay also deserve sharp criticism.

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• Improving on Previous Attempts to Adopt Management Improvement Methods

  There is a big difference between needing to improve on previous attempts to adopt management improvement methods and needing to find new methods. Most of what is needed it to actually apply the good ideas that have been around for decades. And yes, sure try and find some new great ideas but where the focus should really be is on the hard work of execution not looking for some magic pill to solve the difficult task of managing well.

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• Lean is Harmony

  The tools are useful, but they are not the end. Just using the tools can help move an organization to the point where they are ready to truly examine how to improve. Most often the attempts (just like previous attempts with quality management, six sigma… did) stop short of more than superficial change where a few new tools are used in the same old system. 

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• Lean is Harmony

  The tools are useful, but they are not the end. Just using the tools can help move an organization to the point where they are ready to truly examine how to improve. Most often the attempts (just like previous attempts with quality management, six sigma… did) stop short of more than superficial change where a few new tools are used in the same old system. 

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• Why Pay Taxes or be Honest

  We keep getting these continuing examples that are so distressing: Enron, Worldom, Tyco, Accenture, HP… It is so disappointing that such behavior is mainly excused (until finally the evidence presented is so damning that most stop defending the specific case in question).
  

  Yet so much of what is unethical is barely questioned. If we don’t question things that are this bad, then those who insist on being as devious as they can without being called on it will just practice worse and worse behavior. We have to do a much better job of not tolerating such unethical behavior.

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• The State of Lean Implementation

  Interesting survey by the Lean Enterprise Institute notes the following as the major obstacles to transforming to a lean organization.

  1. Lack of implementation know-how: 48%
  2. Backsliding to the old ways of working: 48%
  3. Middle management resistance: 40%
  4. Traditional cost accounting system doesn’t recognize the value of lean: 38%

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• Evidence-based Management

  It is not easy to get people to change their habits. You often need creativity to give power to the data...

  this story, to me, is another sign that focusing on managing the system is more important than devoting excessive energy to bringing in star talent

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• More on Overpaid CEO’s

  As Drucker, Buffet and many others have said CEO overpayment is bad for companies, workers and shareholders. Even when they are fired they often take away tens of millions of dollars. Absolutely ridiculous. I sure hope the bubble of CEO pay bursts soon – the only suitable comparison this century is the internet stock bubble. But every year it just gets worse. I would add overpaying CEO’s to Deming’s seven deadly diseases of western management.

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