Blog posts on psychology

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

• The Quality of the Entire Customer Experience

  Product quality, in many ways, has been raised in the last few decades and this naturally results in raised expectations. This pattern was well known in the 1960s (and before). Kano’s theory of customer satisfactionexpressed how new features moved from being “delighters” for customers initially and eventually became minimum expectations (you gain no credit for delivering them but will upset customers if you fail).

  It is also true that raising the overall customer experience is more difficult than raising product quality (due to the nature of the systems that deliver the results in each case).

  I do think there is truth to the idea that customers have raised expectations for businesses to improve the entire experience. Customers are less willing to accept excuses about how the provider is not responsible for various aspects of the experience...

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• Cool Workspaces

  Beautiful work spaces acknowledge the people that work in those spaces and show a respect for employees as people.

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• Design the Management System with an Appreciation of Confirmation Bias

  To create strong organizations we must create management systems using an appreciation of psychology. We must understand that people have tendencies that must be addressed by designing a management system built to take advantage of the strengths those people bring and mitigate the risks of the weaknesses (such as confirmation bias) that those people also bring.

  One way to do this is to seek out voices in your organization that question and challenge accepted positions...

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• How to Lead From Any Level In the Organization

  Similar to helping other people grow their careers is the idea of helping other people to solve their problems. Again, this starts with a clear understanding of your sphere of influence. It determines what strategies you can pursue, and building your sphere of influence should be part of your decision making process.

  What it comes down to is proving yourself in this way—and doing so consistently. “It isn’t some secret sauce. Prove yourself to be valuable and you will gain influence. Help people solve their problems. They will be inclined to listen to your ideas. And helping people to solve their problems doesn't mean you are giving them the answer. It may mean you asking empowering questions.

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• Tilting at Ludicrous CEO Pay

  I continue to tilt at the robber barron CEO pay packages. Hopefully, at some point, the people approving these obscene pay packages can be shamed into stopping or replaced by people with some sense of decency. I was taught in the days of robber barrons the business world was seen as an amoral place (morality did not belong in this area of human endeavor) but that over time society decided that in fact morality did apply there. It is hard to reconcile that change with the behavior of CEOs and board approving ludicrous pay packages.

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• Bring Me Solutions Not Problems

  What they are saying is: if you know of a problem but don’t know of a solution I would rather we continue to have that problem than admit some of my staff don’t know how to fix it (and then have to deal with it myself – maybe then having to accept responsibility for results instead of just blaming you if I am never told and there is a problem later…). I think that is setting exactly the wrong expectations.

  Employees should fix things. They should bring solutions to managers to improve things that might be out of their ability to fix. But if they know of a problem and not a solution and a manager tells the employee they don’t want to be brought problems then I don’t want that manager.

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• How to Get Ahead

  I find that who says something is usually more important in predicting how people will react than what is said. As I have tested this myself I have learned how biased people are by who is talking; and I have tried to correct the judgments I reach (I know I don’t do it all the time but I try to especially for important things).

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• Factfulness – The Importance of Critical Thinking

  I have come to see a willingness to value critical thinking, even when it means forcing the organization to address tough issues, as one the differences between organizations that succeed in applying management improvement methods and those that fail. In many organizations that fail, more weight given to making things easy for your bosses versus continual improvement in providing value to customers (which often requires challenging existing processes, beliefs and power structures in the organization).

  Challenging the status quo is difficult and most organizations prefer to maintain a culture that takes an easier path. Management improvement often requires a willingness to encourage challenges to the status quo. The importance of challenging the status quo in your organization and in your own thinking is under appreciated.

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• Leading The Transformation Process

  Transformation starts with the individual but as they change they can run into organizational barriers and resistance to change. Similarly if the organization institutes changes without helping people change their own understanding and views those people resist the changes in the organization.

  
  Deming’s management system provides a view of the organization as a system, including the people in that organization, and ideas for how to manage the transformation as an integrated system. The interactions between the components of the system and people must be considered and managed to transform. And those interactions continually change as the overall system evolves.

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• Focus on Customers and Employees

  I believe it is the purpose of organization to serve many stakeholders(customer, employees, stockholders, community…). Thankfully some companies agree: Compensation at Whole Foods – Starbucks: Respect for Workers... Here is another example – How Costco Became the Anti-Wal-Mart...

  I am happy to invest in companies where all stakeholders are winning – I think that is a great long term strategy...

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• The Joy of Work

  We spend much of our life at work: we deserve to have pride in what we do and even enjoy it (shocking I know). Read the respect for people posts for some ideas on how to make your workplace better.

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• Respect for People – Understanding Psychology

  I see building improvement capacity of the organization, which largely means building the capacity of the people, as an extremely important focus of improvement efforts. It is, at times, important to slow down the pace of change to ensure that people can adopt and incorporate the new concepts fully. If not, the improvements tend to only take effect on the surface.

  Improvements in results are important but it is also critical to have management improvement concepts adopted as the natural way of doing business.

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• Communicating Change

  I believe the best way to communicate such changes is to explain how they tie into the long term vision of the organization. This requires that such a vision actually exists (which is often not the case). Then all strategies are communicated based on how they support and integrate with that vision. In addition that communication strategy incorporates an understanding about what weaknesses with past practices are addressed by this new strategy...

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• It Just Works

  The Kano model of customer satisfaction is an excellent way to view customer expectations.

  The Kano model states that you have expected quality – it just does what it needs to (what is expected). Then more is better type – give me more at the same price and I am happier. But where you really want to get as a company is products and services that delight customers.

  When you are delighted you are not easy prey to other companies. When you are satisfied you are ready for offers that say we will give it to you a bit cheaper or give you a bit more. But if you are delighted you don’t want to leave and instead are telling everyone you know how great this product or service is.

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• Interview of Bill Hunter, Brian Joiner and Peter Scholtes on Better Management Practices

  That kind of experience could not have happened if management wasn’t willing to listen to the workers and wasn’t willing to say to the workers “you have brains and you have ideas and why don’t you go out and see if you can solve it and I will back you up. And that is what they did

  Bill on creating jobs people want to do:

  If they are going to work with the attitude that part of my job is to figure out how we can make things work better around here it adds another challenge to the job which makes the work more fun and more enjoyable. It all points in the same direction it seems to me. These methods do feed into making jobs more interesting and morale going up and the job being better.

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