Blog posts on management

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

• Transforming Jet-Hot by Viewing the Organization as a System

  Jet-Hot integrates Deming’s system view with their own management or operating system. They have made this diagram the central way they operate as a system with common aim and purpose. They use this innovation in their Jet-Hot system and organize all their work with profound knowledge around their business operating system. Jet-Hot has also developed and implemented an application of technology – an operations support system to support their practice and their enterprise throughout their system. They have made this view and diagram actionable and practicable.

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• Keeping Older Workers

  Finland, Japan and a few others may lead the way but the western industrialized world is quickly aging. It seems pretty straight forward that the aging workforce is going to be needed. And companies are going to have to adapt (that is my prediction anyway). I have always thought it is crazy that we work full time and then stop all together. It makes much more sense to me for there to be a gradual easing of the workload.

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• Well Managed Companies

  Do your outstanding people think their importance is in getting through another day through hard work and individual expertise. While those qualities are good most important to the success of the organization is improving the system not getting through one day. If those seen as the stars are not improving the system and processes then get them to work doing so.

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• Applying Quality as a Business Strategy at Hallmark Building Supplies

  Hallmark Building Supplies has profit sharing for all and doesn’t do annual performance appraisal. They attempt to let the market dictate pay and take pay out of the performance discussions. To manage performance they seek to “coach while the game is going on” (and mentioned the importance of people being receptive to coaching). Cooperation between sales people has increased since they eliminated commissions.

  Everyone is trained on the purpose statement, it is not just something that hangs on the wall. We use it to make decisions on a regular basis.

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• Standardization With a Systems View Allows Creativity to Flourish

  We all benefit from standardization every day. We can plug our devices into a wall outlet and power them. We can get a replacement battery and have it work as expected. We can type on the keyboard without thinking because the keys are the same on each keyboard. We can connect to a new wifi network with our phone or laptop. We can buy a replacement pipe for our sink and install it.

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  One of the objections I hear to adopting standardization is that doing so takes away our ability to be creative. This is not the case. Dr. Deming’s quote does a good job of explaining this. Standardization allows us to create systems that are reliable and effective. Within that system there should be a great deal of flexibility to apply creative ideas.

  
  It is true organizations often impose rigid rules that restrict creativity. If standardization is responsible for part of this result then the process by which standards are created and continually improved needs to be examined. A management system needs to continually improve and part of that is continually evaluating how management concepts (such as standardization) are being applied.

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• Aligning Marketing Vision and Management

  Why do so many companies market one thing and provide something else? I know it might be easier to sell something different than what you offer your customer today. But if you decide to market one vision, why don’t you change your organization to actually offer that?

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  Treating a marketing message as something separate from management is a serious problem. When your marketing message says one thing and your customers get something else that is a problem. I think the message is often based on what the executives wish the company was (and the outsourced marketers think it should be), but it isn’t the customer experience the management system provides.

  If you believe the vision of your marketing then make sure your organization has embraced those principles.

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• 1,000th post on the Curious Cat Management Improvement Blog

  Here are some highlights:

  Post number 2: Dangers of Forgetting the Proxy Nature of Data – “We use data to act as a proxy for some results of the system...

  The Purpose of an Organization quoting Dr. Deming: “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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  What to do: Management is Prediction ... Using Design of Experiments ... Bring Me Problems Even if you Don’t have the Solutions ...

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• My Willing Worker Award

  Data very similar to that provided by the Red Bed Experiment is used everyday in businesses to reward and punish people. Data is used to blame those who fall short of expectations and reward those who have good numbers. In the Red Bead Experiment we know the numbers are not a sensible measure of value provided by the employee. But in our organizations we accept numbers that are just as unrelated to the value provided by the employe to rate and reward employees.

  There is a powerful need to improve the numeracy (literacy with numbers) in our organizations. It isn’t a matter of complex math. The concepts are fairly simple…

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• Deming on being Destroyed by Best Efforts

  Best efforts are essential. Unfortunately, best efforts, people charging this way and that way without guidance of principles, can do a lot of damage. Think of the chaos that would come if everyone did his best, not knowing what to do.

      W. Edwards Deming

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• Poor Service from Amazon

  First, it is very lousy service to sell someone something and then figure out you don’t have it to sell a few weeks later. Second, if you find you have done such a lame thing – buy it from someone else and deliver it as promised. Third, don’t make it nearly impossible for the customer you just wronged to contact you. This is the equivalent of providing lousy service and then closing the door in someones face refusing to deal with your failure.

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• Great Visual Instruction Example

  This does a great job of explaining what you need to know clearly. While this presentation for Azithromycin doesn’t prevent a mistake it sure makes it much more likely that the process can be completed successfully. We need more effort in creating such clear instructions.

  Visual clarity is more important than lots of words. Applying that concept is not as easy as it sounds but it is a very important idea for instructions to end use and instructions for processes in your organization.

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• “Pay for Performance” is a Bad Idea

  The idea of a merit rating is alluring. The sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good. The effect is exactly the opposite of what the words promise.

  W. Edwards Deming

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• People and Robots Together

  For several decades it was pretty easy to predict wholesale adoption of the robots will save us mantra would be followed by failure. I still strongly believe Toyota's method (thoughtful use of robotics to enhance people is the best strategy). But the ease of using robots to succeed in the long term is much enhanced these days.
  
  Robot first strategies are going to be succeeding quite a bit going forward. Yes those efforts might not be good enough when competing only with companies using the best strategy well (but that will be rare).

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• The Management System is the Key

  I think too often people (in relation to management ideas) demand that things be made more simple than is possible to adequately understand the systems involved. This of course leads to problems. A huge value provided by people like Russell Ackoff is their ability to help explain what is needed in fairly simple terms. Still understanding how these ideas are being expressed in our management systems and how to apply the concepts to our management systems is still a challenge.

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  I think one of the big differences between the best lean efforts and the others is the increased value placed on deeper understanding and thinking systemically.

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• Applying Deming’s Management Ideas at the Great Plains Coca Cola Bottling Company

  The difficulty in changing is often mostly about our psychology (not the technical difficulty of operating under changed systems and processes after making adjustments to adapt to take advantage of new opportunities).

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  Results matter but within a context of the process. If I double profits by wagering all the cash we can borrow on the roulette wheel that result isn’t a sign that we are doing much better. Using data wisely requires understanding what the data tells you and what it does not tell you.

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