Blog posts on systems thinkingPosts selected fromManagement Blog - Engineering Blog - Investing Blog and other blogs - Measurement and Data Collection
I find it useful to ask what will be done with the results of data collection efforts (in order to confirm that the effort is a wise use of resources). If you don’t have an answer for how you will use the data, once you get it, then you probably shouldn’t waste resources collecting it (and I find there is frequently no plan for using the results).
I have found it helpful to ask: what will you do if the data we collect is 30? What will you do if it is 3? The answer does not need to be some formula, if 30 then x. But rather that the results would be used to help inform a decision process to make improvements (possibly the decision to focus resources in that area). I find, that asking that question often helps reach a better understanding of what data is actually needed, so you then collect better data. continue reading: Measurement and Data Collection - How Toyota Turns Workers Into Problem Solvers
This idea is simple. Creating an environment where this is actual the way things are, not just the way things are said to be, is difficult. That is why I believe so strongly in Deming’s management philosophy. The organization must be viewed as a whole. Benefits can be gained by adopting some concepts in a piecemeal manner. However, many benefits accrue only when the positive interactions between Toyota Production System (TPS – Lean) concepts occur (as systems thinking would predict). continue reading: How Toyota Turns Workers Into Problem Solvers - Performance Without Appraisal
The comments on the mini-microsoft blog shows performance appraisal continues to be an emotional topic. People on opposite sides of the debate are very passionate.
I admit it took me longer to accept Dr. Deming’s thoughts on performance appraisal than other ideas (and that is even with Peter Scholtes being a friend which gave me the opportunity to discuss the idea with him). So I understand it is not an easy concept to accept. continue reading: Performance Without Appraisal - 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. continue reading: Managing the Supplier Relationship, at Ford and Elsewhere - Innovation and the Creative Commons
Creative Commons is a license that lets the creators of intellectual property clearly define how that property may be used by others. Partially this license is a reaction to the poor way copyright law is being viewed today (see links below).
Partially it is tool that gives creators a way to provide for more interaction with their ideas. And this interaction is a great way to market, in the right circumstances. More managers should be thinking about how their organizations can use this tool to improve performance. continue reading: Innovation and the Creative Commons - Statistical Techniques for Quality
As six sigma has taken the business world by storm in the past 15 years, many organizations have focused on acquiring and implementing the DMAIC methodology with performance benchmarks defined by “sigma levels”. However, after perhaps proclaiming the “six sigma organization” label for the company, it is important for the business leaders to look beyond immediate concerns, i.e. those issues embodied in black belt projects, and adopt holistic and forward-looking perspectives in seriously advancing organizational interests.
continue reading: Statistical Techniques for Quality - The Dramatic Spread of Lean Thinking
Life indeed will be better for all of us with the improvement of management. The benefits of economic success are large. Good jobs are desired everywhere: USA, India, Germany, Singapore… Those jobs provide positive externalities that create a reinforcing loop of improving conditions. There are many important factors (education, investment, political stability, rule of law…) to economic success. Effective management is among the factors that can provide dramatic increases in the standard of living of a country or community. continue reading: The Dramatic Spread of Lean Thinking - Measuring and Managing Performance in Organizations
measure [parameter] in the hopes of improving [goal]
When dysfunction occurs, the values of [parameter] go up comfortingly, but the values of [goal] get worse. Dysfunction often occurs. continue reading: Measuring and Managing Performance in Organizations - Management Improvement in Healthcare
Health care (and especially M.D.s) have always been seen as among the most difficult environment to introduce new management principles (universities are another). It was surprising to me since so much of management improvement is largely about using the scientific method, but it seems to be a reality. It seems these highly educated people are used to having huge freedom to act as they wish, and seem to resist participating in a system to improve rather than doing as they wish.
To improving results in health care I strongly recommend looking at the work of the Institute for Healthcare Improvement. continue reading: Management Improvement in Healthcare - Box on Quality
Dr. George Box is not as well known in the general management community as his ideas merit (in my biased opinion – photo of Bill Hunter and George Box). He is well know in the statistics field as one of the leading statistical minds. Box on Quality is an excellent book that gathers his essays from his 65th to 80th year. continue reading: Box on Quality - Seven Leadership Leverage Points
IHI has the courage to say one of the 3 sources for there hypothesis as “Hunches, Intuition, and Collective Experience.” While attempting to base plans on data and not hunches is good. Often you must make decisions without data. It is why Dr. Deming was so concerned with mobility of top management: that mobility means many managers don’t really understand what they are managing. Lean thinkers understand the value of having managers with deep knowledge of the areas they manage. continue reading: Seven Leadership Leverage Points - Lean Consumption: the Customer’s Perspective
The concepts underlying lean consumption boil down to six simple principles that correspond closely with those of lean production.
- Solve the customer’s problem completely by making sure that all the goods and services work together to do so.
- Don’t waste the customer’s (or the provider’s) time.
- Provide exactly what the customer wants.
- ...
continue reading: Lean Consumption: the Customer’s Perspective - Toyota Engineers a New Plant: the Living Kind
Toyota’s vision:
First, making things that benefit both people and the world as a whole. … Second, as a member of society, we must fulfill our responsibilities to all stakeholders. We must provide to customers cleaner, safer, and more attractive products with excellent value. To shareholders, we must enhance share value through long-term and stable growth by increasing profits and paying appropriate dividends. With business partners, we must engage in fair business based on a spirit of mutual benefit.
To our employees, we must provide a workplace where they can work with pride based on mutual trust and responsibility between labor and management, and respect for people.
continue reading: Toyota Engineers a New Plant: the Living Kind - Six Keys to Building New Markets by Unleashing Disruptive Innovation
Unfortunately we do not often stop to examine the theory and therefore fail to learn as we should as we experiment and get new results. The most effective way I know of to improve the learning is to use the PDSA cycle, predict the effects of change and then examining the results of change. As simple as those two acts are, they are skipped far to frequently.
His second point, that managers frequently use overly simplistic models or theories is also important. Management is not well suited for simple theories that can be applied in any situation. Many interdependent variables are often at play and management requires not application of simple rules but applying knowledge in complex situations as best you can. Management is challenging and simple answers are often of little value – even though they are desired. continue reading: Six Keys to Building New Markets by Unleashing Disruptive Innovation - Marketing in a Lean Company
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