Month: February 2017

BOOK REVIEW: Deming’s Profound Changes

profound-changesDAN’S SCORE: stars-4-5
Deming’s Profound Changes: When Will the Sleeping Giant Awaken?
by Ken Delavigne and Dan Robertson


I first learned about this book while listening to one of the Deming podcasts interviewing Daniel Robertson.

Though it took me a little while to get into it,  this is one of the best books I have read in some time.

The book’s premise is about how our current traditional style of management came to be (i.e. Frederick Taylor’s management theories), why it is damaging business and how accepting Deming’s new management philosophy will help us improve. The authors emphasize Japan is doing so well because they have abandoned Taylorism and adopted Deming’s principles. The authors believe Japan is wondering when America will also make the switch—thus the tag line “When will the sleeping giant awaken?”

I think this quote taken from the book summarizes the intent:

We will win, and you will lose. You cannot do anything about it because your failure is an internal disease. Your companies are based on Taylor’s principles. Worse, your heads are Taylorized, too.” ~Konosuke Matsuhita, Founder, Matsuhita Electronics (Panasonic), 1988.

My favorite take aways (this was tough to sort out—I tried to shorten this list the best I can, but there is simply a ton of stuff in here):

  • Self-managed teams sound Deming-like, but unless they are managed as a system, they will suboptimize and will have a tendency to listen only to the voice of the customer (ex. focusing on specifications) instead of listening to the voice of the process. This sounds very much what scrum teams are trying to do with their focus on customer value. This has certainly made me think.
  • Many people don’t understand continuous improvement. Continuous improvement must be in a specific direction guided by purpose or an aim. In order to do this, people need to continuously gain new knowledge and we are not used to doing that.
  • There was a study done on what it was the Japanese were doing differently. It was found what they were doing was reducing complexity. I.e they were understanding and then simplifying the system. It was hard to pinpoint what exactly they were simplifying, but whenever they did this, it created positive ripple effects throughout the organization. (Terrifying. It seems every place I work with wants to achieve some objective and if making something complex achieves that aim, so be it. I’m not sure how we break out of this mindset). This whole chapter was fascinating to me.
  • The authors list out six dimensions of complexity: number (number of employees, departments, work batches, etc.), volume, density (ex. being geographically spread out), process time (lead or cycle time), variation, and context level (i.e. a manager will understand and see things at a different level than an employee and vice versa).
  • Western management focuses on ROI in the beginning, but the Japanese understand that reducing complexity eventually pays returns. (Wow. How do you convince a CFO of that strategy??).
  • Management is constantly under scrutiny and pressure from stock holders, creditors, and often the press. All of these folks want RESULTS. This creates a culture obsessed with outcomes and self interest (i.e. they don’t want to lose their power or career) and creates a short-term mindset. The authors note its no wonder managers are constantly making demands on their organizations that exceed their capacity. They force the system to shoulder increased complexity and thus make the system less capable.
  • The effects of increased complexity are often subtle and hard to detect in an organization and difficult to trace back to where the issue originated.
  • He gave a list of excuses commonly held for the decline in U.S. competitiveness and debunks each one. These include labor issues (such as with Unions), foreign competition and not buying American, lack of automation, trade barriers, government interference, lack of employee motivation, and employee education. The authors state the underlying message with all these issues is that we are managing wrong and we must change.
  • The authors suggest that those who are attempting to promote change need to understand the various elements of it. This will help them bring about change and improvement more swiftly. Change will take a great deal of time and effort and there will be many forces, directly and indirectly, opposing it. Fortitude, faith, and courage are essential.
  • The authors also discuss why people want to be managers and discuss how we need to be promoting the right people into these positions by looking for certain characteristics. They also discuss how to develop these types of managers.
  • They give a strategy on implementing change. They said to break issues into Cosmic (i.e. deep complex issues), low-hanging fruit, and no brainers. They said to go after the low-hanging fruit. I was surprised by this strategy as the Toyota Way goes after the root problem. They said when you solve enough low-hanging fruit and no brainer issues, the Cosmic issues have a tendency to go away.
  • They suggest a good way to figure out what to start working on first is to ask the question, “What bugging you?” I started asking this question when I solicit feedback from our customers.
  • They suggest we do the following: Be an exemplar, Keep Growing in Knowledge, and Widen Your Personal Orbit of Influence (this last one is what I struggle with).

 

1952533952-frederick-taylor

Frederick Winslow Taylor. The authors premise is the West is stuck in a modern-day form of Tayloristic thinking, a style of management invented over a hundred years ago. Good for its time, but its way past time to evolve.

Though the book explains Taylor’s philosophies, I’m still not sure I understand them despite a whole chapter on it. Of course, I can be dense. I reckon I need to review.

 

I thought it interesting the authors emphasize Taylor as being the biggest impact on modern management, but they don’t mention the 1841 head-on train collision and the subsequent adoption of military-style organization. This event is cited in two books I’ve read (The Leaders Handbook and The Leaders Guide To Radical Management) and given as the main reason for modern style management.

I thought some of the examples were a little dated, for example the computer industry examples, though pertinent and correct, were stated as something new, but are now near 20 years old. During the podcast interview, Robertson stated he doesn’t think the book needs to be updated because the advice is still the same.

The book can be bought here.

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Why No One Talks About Deming Anymore

There was an article posted last year in Harvard Business Review about how Deming had been forgotten. I think this is a conundrum in the Deming community. Deming often talked about how we were in a new age and how we needed to transform. Yet here we are, 15 years after his passing and the transformation seems to have stagnated.

This post comes out of my own struggles with trying to influence people in the Deming way of management. Here are my thoughts and observations on why we are hitting a brick wall.

  1. Authoritarianism Still Seems to Work. Proof of this are the likes of Elon Musk, Steve Jobs, Bill Gates, and others. Thank God for us Deming folks Agile is around and Toyota overtook the automotive industry a few years back. However, this year, Volkswagen became the #1 automotive producer. In the past they’ve been known for iron-fisted leadership. Despite having a new CEO, will people equate this management style to Volkswagen’s success?
  2. Disruptive Technology as the Strategy for Success. Silicon Valley has been an important business model for two decades. “Innovate!” my last company preached. “We must innovate to stay relevant!” Our management mandated that each of our product lines had to come up with at least one innovative solution per year (innovate or else!). I think too many modern businesses have become preoccupied with innovation and finding the next big thing instead of focusing on how to become more efficient. Now, Deming DID talk about the necessity of innovation, however, if folks do remember him they don’t remember him talking about it. Neither his 14 points nor the System of Profound knowledge mention innovation.
  3. Individualism over Systems. Alfie Kohn said Deming’s star died out in this country because he was a systems thinker and the West (particularity Americans) do not understand the importance of a system. We stress the individual’s contribution. We believe if there is progress and success, it can be attributed to some individual (or small group of individuals) and if there is a problem, then it must be someone’s fault. Kohn said it was inevitable that Deming’s ideas wouldn’t graft here.
  4. Short Term Results over Long Term Results. Deming’s way is long term. He even said it himself—it would take years or even decades to see results. No one wants to wait that long. I think people want the long term, but they also want the short term and that is where the emphasis continues to lie (because . . . well . . . its the short term).
  5. Tools/Techniques/Action over Theory. Over the years, I’ve heard so many people say, “Just use or do whatever works.” I think this is rooted in our belief that any problem can be resolved with the right tool (or technique). Deming stressed theory first and then use the right tools for the theory. However, theory is discounted in our society. I once had a manger tell me a theory didn’t matter if it didn’t work (he was quite derisive that I even mentioned the term ‘theory’). Action is valued in our society. I had our IT director tell me on my first week of my new job that I needed to understand that the Nike motto was important to him and to “Just do it.”
  6. We have no time. Our time is getting more and more squeezed. We have little time to think about new/different ideas (unless they are quick solutions promising immediate results). Its certainly true we are being asked to do more with less all the time. As a result, few are willing to invest time into reflecting, studying, and risking experimentation. I’d also add lack of time reinforces command and control. We need an answer NOW and we don’t have time to collaborate, so we rely on someone to direct us. I’ve certainly been guilty of this.
  7. Educated Idiots. Deming (and most other management scientists) never ran a business. Heck, Deming was never even a manager. I had a teammate look at the library on my desk and say, “I prefer to take advice from people who have actually ran a business.” I’ve heard people say we need to stop listening to “educated idiots.” I hate to say it, but I’m sure they would put Deming into this camp. Experience is valued over knowledge or theory in our society. Deming’s belief that our experience is wrong would simply be scorned.
  8. The Passage of Time. Many don’t know who Deming is. They might recognize PDCA or perhaps remember him as a “Quality Guru.” I was saddened when I told our PMO manager that my blog had been featured on the Deming Institute and he didn’t know who Deming was.
  9. Its no longer relevant. If a book was written just 5 years ago, many think it may not be relevant anymore. The world changes too fast they would say. I’ve certainly fallen into this trap. The same problem can be said with Deming in general. He was big in the 80s and early 90s, but many would say that was decades ago and the world has changed since then.
  10. Deming is Difficult to Understand. Deming doesn’t make sense to many people. Its a huge paradigm shift. Few have the patience to listen or understand, especially when they need an answer NOW. Heck, even in his day, people thought he was wrong (including his own grandson!) or that he was senile. Some people would walk out of his seminars. God help the individual who is new to Deming and picks up a copy of Out of the Crisis without some type of primer! Even if his concepts do resonate with an individual, they are so deep they will take a lifetime to master and even then, you won’t be finished. Many folks just aren’t willing to invest in that.
  11. Deming Died. Deming’s biggest influence and power was the fact that he WAS W. Edwards Deming—the man who Japan revered and had their highest business prize named after. His followers simply don’t have his clout. However, I believe even if Deming were alive today, I doubt many people would be going to his seminars like they once did. That’s because . . .
  12. Japan’s Economy Declined. From the late 70s until the early 90s Japan was America’s bogey man. Japan seemed destined to overtake our markets and people were scared and fascinated at the same time. Of course folks wanted to know what the heck they were doing differently and so Deming became the pretty girl in the room. Then Japan hit an economic slump . Even though Japan is still the third largest economy in the world, it doesn’t seem to be the threat it once was.

So, what do I think will happen to Deming’s ideas?

I think the Agile movement carries the Deming torch in this day and age (even though they may not realize it). I wish the Agile community would take a closer look at his teachings. I think it will strengthen their position. However, I have this sinking feeling we may soon see an Agile implosion. A ton of companies have tried Scrum and while there are many who get something out of it, many aren’t. I think this is because they haven’t transformed their paradigms and have focused too much on the Agile tools and techniques. In my last company, this was certainly true and the writing was on the wall that the Agile experiment was about to end. Management was quickly losing patience and were already starting to look elsewhere (Six Sigma was next on the list of the fad du jour!).

However—I hold out a tremendous amount of hope. In the book Deming’s Profound Changes, the authors write that it often takes decades for a new philosophy to take root and develop in a culture. If so, we are nearing that point now. I know some people may think I’m crazy, but I can’t help but think the younger generation will embrace Deming’s teachings. For one, they seem to have less tolerance for the bullshit of traditional management (traditional managers often fault them for being lazy—I think the younger generation are just being rational and want to be creative and—gasp!– have joy in their work!). They are growing up with Agile concepts and having amazing startup companies like Menlo as models. I think this will make them think of management differently. Also, they seem to be looking to the past for their ideas (they seem to think old-school is cool). For instance, one of my favorite websites, The Art of Manliness, teaches old-school “man skills” and the site’s founder Brett McKay says his biggest audience is the under 30 crowd. Will they discover Deming when they look to their history to understand their future? Also, the younger generation is more willing to embrace diversity and different ideas. The world is getting smaller and Eastern countries like China and India continue to rise. As a result, Eastern thought and its holistic/systems ideas has a better chance of penetrating the next generation’s current paradigms. Lastly, Japanese culture is popular with today’s youth. This puts them in close proximity to Deming’s teachings.

My hope is as the next generation gets closer to becoming managers themselves, they will discover this incredible man and his insights and the transformation will continue. Those of us who have been studying Deming must be ready to share, teach, and mentor these young people what we know.

BOOK REVIEW: The Leader’s Handbook

leaders-handbookDAN’S SCORE: Stars 4
The Leader’s Handbook
by Peter Scholtes


This book is at the top of John Hunter’s books-to-read and he recommended it to me. Thanks John!

Peter Scholtes was a student and colleague of Dr. Deming from 1987 until Dr. Deming’s death in 1993 and is considered a key player in promoting and teaching Deming’s philosophy. Alfie Kohn, who is well known in Deming circles and someone I admire, was close to Peter Scholtes and often speaks of him with fondness.

This is a great book. Scholtes is a great writer (often employing humor). Scholtes breaks down Deming’s teachings into digestible form and gives some great real world examples.

Lots of takeaways here. These are some of my favorites:

  • He has a section about the history of why people manage the way we do. This is cool for a history nerd like me and for someone who is always asking why people do the things the way they do.
  • He compares the competences needed for traditional management (Forcefulness, motivator, decisiveness, willfulness, assertiveness, results-oriented, task oriented, integrity and diplomacy) vs the new (Deming) management style (Systems thinker, understanding variation, understanding how we learn and improve, understanding people and why they behave the way they do, understanding how these four things interact with one another).
  • He talked about the mile-wide/inch-deep philosophy vs. an inch-wide/mile-deep philosophy. This is basically doing many things at once but not being good at any of them vs doing just a few things but doing them extremely well.
  • He believes a company’s success will be reliant upon their ability to do good for society vs. being primarily focused on profits and return on investment. That’s a tough pill for many to swallow (though I certainly believe it).
  • He talks about how when a customer complains its an opportunity to learn. Positive feedback makes us feel better and provides a boost to our spirits but offer little else.
  • He pointed out that a competitive edge is having speed for delivery. He had a newspaper snippet that suggested a company have 10-15% idle capacity to keep the backlog smaller and give the company quicker customer response times (this is similar to David Anderson’s belief that slack is a secret weapon). My own thoughts–This is a REALLY tough sell for management. They simply don’t get this concept.
  • He advocates the need for interdependence. One thing he suggests we start asking is “What do you need from me that you are not getting? What are you getting from me that you don’t need?” I’m trying to integrate this into my own work.
  • He pointed out that many of us don’t like using statistical methods because the way we were taught about it ruined us. He said he didn’t like it either and found “columns of numbers to be a sure cure for consciousness.”
  • He had some really good advice on listening skills (don’t give advice, don’t judge, don’t talk the speaker out of their feelings, don’t sympathize– be supportive instead).
  • He talks about heroes and our culture’s fascination with them. This has created the mentality that if something is broken, a hero must come along and fix it. The system is regarded as the source of the problem rather than the source of the solution. This notion is reinforced by Hollywood who often feature heroes overcoming a corrupt or helpless system.
  • He talks about how hard it is for a leader to change a world set in its ways. The culture is set in short term thinking and it makes it tough to think long term. He says because we are at a threshold of change, the leader must be good at both the short term and long term philosophies. This is tough (tell me about it!).
  • He says its difficult for a leader to change when everything they’ve known and done has gotten them to where they are currently.
  • Awesome quote found in the book- “In management, the first concern of the company is the happiness of the people connected with it. If the people do not feel happy and can not be made happy, that company does not deserve to exist.” ~Kaoro Ishikawa.
  • He said converting your boss is a long shot. You probably do not have influence with them and they are working from a different agenda than you are. This makes me sad. Further, he says you may do wonderful things, but until you win the hearts and minds of the people at the top, you will not have significant impact on your organization. This also makes me sad. He says the best thing that will probably happen is that you learn and benefit and bring it with you to your next job.
  • In order to get leadership’s buy in, you will have to meet their definition of success. This isn’t easy because what their definition of success may be different than the new philosophy. If you don’t get the credibility from leadership, though, your ability to influence is nil.
  • If you want to influence your boss, you need to know who he respects and who influences him. If you can influence them, this may be the way to influence your boss.
  • Opposing your boss is foolish, just as it is foolish for a smaller person to engage in a head-on collision with a smaller person (I need to be careful about this, but I absolutely refuse to be bullied and live my life in fear).
  • He advocates the onion patch strategy for change. I’ll be using this.
    1. Learn everything you can.
    2. Identify the area over which you have influence.
    3. Identify your priorities.
    4. Recruit allies.
    5. Have data (use it to indicate the validity of your approaches and describe the current situation and process).
    6. Communicate artfully.
    7. Don’t argue with those who disagree

Scholtes may be best known in the Deming community for his arguments against performance appraisals. Deming was often asked by his audiences what we should do instead. Deming once replied “Whatever Peter Scholtes says.” This is the book folks recommend for debunking the performance appraisal. I found this chapter one of the least interesting parts of the book. I wonder if its because I personally haven’t had much concerns about performance appraisals.

Negatives- I’m not a fan of the spiral bound, but its the only format I see for this book. I wonder why it was chosen. It made me think of a school workbook. Though there are activities at the end of each chapter, I didn’t perform any of them. Maybe I should have. I don’t know. These activities reminded me of the days where I had to do homework—which I hated. (NOTE: John Hunter explained the spiral bound binding. This is a direct result of continuous improvement. Scholtes first book, The Team Handbook, was often read by people doing work on the job, but with the traditional binding, the book kept closing on itself. The Leader’s Handbook has the spiral so the people using it can read the book without it closing on itself).

I’m glad this book is in my library and I’ll be referring back to it. You can buy it here.