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September 25, 2008

Doran Barton
fozzmoo
Fozzolog
» A time for sacrifice

If you ran a business and the walls figuratively came crashing down around you like they have in the United States economy the last few months, what would you do?

You could just call it quits and walk away.

You could make calls into every person you know and beg them for help and support.

There are many directions you could go, but there is one thing I can't imagine anyone would do: try to go on living like nothing has happened.

The problems in our financial markets and talk within the ranks of legislative and executive leadership of propping up failed institutions have brought to light another very glaring miscalculation: The U.S. government is already in a terrible amount of debt. These are all signs of the seriousness of the situation we are in. These signs suggest a calculated, careful, well thought-out response.

More importantly, these signs demand that we, as a people, forget political loyalties, forget the frivolity of our lifestyles, forget luxury and conveniences, and forget about the thoughts of others.

We must concentrate on one thing: Getting through this together in one piece. That means making serious sacrifices and planning for the future.

Why, during all that is going on, do I see that the U.S. Mint has announced a forthcoming set of commemorative pennies to celebrate Abraham Lincoln's 200th birthday?

It's not much in the grand scheme of things, but this is a perfect example of how government is just going on doing what it has always done when it should be doing much, much less.

The U.S. Mint operations should probably scale back to one standard set of coin and paper currency. The U.S. Postal Service could probably minimize postal options. The U.S. Department of Transportation could make a quick decision of which construction projects currently underway can be suspended immediately, which projects can be brought to a point at which they can be suspended, and how costs can be minimized on other projects.

Everything our government does needs to be assessed and evaluated for fat that can be trimmed so that only essential services are provided. programs will need to be scrapped, shut down, or scaled back. To help those in need who have traditionally relied on government services or assistance, groups outside the government will need to step forward and help.

The failed businesses have failed. Propping them up will cost more money. Figuring out why they failed will cost more money. Reorganizing them, placing them in a conservatorship will all cost more money. Money... money we don't have and can't afford to keep borrowing.

Can we set an example, as a country, for what should be done?

I hope so.

July 21, 2008

Peter Abilla
no nic
shmula
» Maintain Forward Tension

One principle in Wing Chun is the maintaining of forward tension.  To explain, I’ll draw the distinction between Tension and Energy and show how this principle in Wing Chun can be applied to Change Management.

Tension is a type of Energy

A Wing Chun maxim goes as follows:

soft and relaxed strength will put your opponent in jeopardy

That maxim means that forward tension is not necessarily using force, or forcing through a barrier or “pushing through”.  But, there is soft force, or tension, such that when a gap presents itself, then the hand or arm shoots forward like a spring.  The “shooting forward” is not done with force, but is an unleashing of potential energy.

Using that definition, then, Forward Tension is much different than the overly-used business term “Breakthrough.”  In the context of Forward Tension, the notion of “breakthrough” is ridiculous, because it connotes a forcing of oneself or of one’s ideas.  Forcing anything only invites resistance and rebellion, not conversion.

So, in sum, tension is really potential energy and when a gap presents itself, that potential energy becomes kinetic energy.  Forward Tension works with the current context in such a way that does not invite rebellion or resistance or eventual back-biting.  It is open, but straightforward.

Application to Change Management

Don’t force things on people.  The most humane approach to change management is to treat those involved in the change as human beings; this means having a dialogue — listen, speak, listen some more, argue a little, and steadily deposit goodwill.

As much as I like love data, I also fully understand that data does not soften hearts or change people’s minds: true change happens when people feel heard, have given their opinion, are willing to try something new, and are part of the change.  The challenge in change management is largely an emotional one; a psychological one; a relational one.

Hold The Tension

Without forcing or pushing of people, maintaining the tension encourages discussion, debate, and invites people to inquire and become curious about the topic of change.  That is the key: behave in such a way that it invites people to learn, argue, debate, and eventually try it out.

Tension in Wing Chun

The video below shows Sifu Grados in Chi Sao (Sticky Hands).  This sensitivity exercise demonstrates the principle of holding the tension and visually explains the principle of transformation of potential energy to kinetic energy very well.

NOTE: none of the movements are rehearsed.  What is taught and practiced are the principles and how those principles are applied during Chi Sao depends on the situation.


Articles on Ethnography and Design:

  1. Feature? What Feature?
  2. Simplify The Product
  3. Ask Aza Raskin
  4. Aza Raskin on Poka-Yoke & The Humane Interface
  5. Aza Raskin on Quasimodal Design and The ATM
  6. Aza on Feature-Bloat and Site Clutter
  7. Aza on Google Search Results Page
  8. Aza on Cooperation and Team Size
  9. Design Thinking in Medicine
  10. On Designing a Watering Can for Little Hands
  11. Queueing Theory and Visual Management
  12. An Interview with the Inventor of “Clocky”
  13. Bad Breath but Good Design
  14. What is Ethnography

Articles on Leadership:

  1. Overmanaged and Underled
  2. Colin Powell on Leadership
  3. Team or Staff?
  4. Tipping-Point Leadership
  5. Abraham Lincoln on Leadership
  6. How to transform an Organization: Chime-in Before Buy-in

Articles on Queueing Theory:

Articles on Operations, lean and six sigma:

July 6, 2008

Peter Abilla
no nic
shmula
» Do Not Run From Your Customers

I’ve spoken extensively about the unheralded — but, arguably, the most important — Pillar of The Toyota Production System: Respect for People. Today, I want to highlight an interesting company that appears to have done an amazing job at Participative Management and in eliminating fear and mediocrity in the workplace: Semco Group.

I was first made aware of Semco Group after watching this amazing video on the MIT website. I sought to learn more about Semco and found some pretty amazing case studies such as the following:

Semco appears to have operationalized a very humane workplace and has also produced some impressive results, proving that fear and intimidation and mediocrity are not necessary ingredients to do well in the corporate world:

Reforms implemented during that time led to 65% reduction in inventories, a marked reduction in product delivery times and a product defects rate that fell to less than 1%. As the business climate improved, Semco’s revenues and profitability improved dramatically. As of 2003, SEMCO had annual revenue of $212 million, from $4 million in 1982 and $35 million in 1994, with an annual growth rate of up to 40 per cent a year. It employs 3,000 workers in 2003, as opposed to 90 in 1982.

Semco publishes and collectively live by the “Semco Survival Guide”, opting for something much simpler and thinner than a big, thick manual. Here are two points that I personally appreciate:

Our People: We avoid using terms like “employees”, “staff”, “collaborator” and similar terms. We are a team and we only have “people”. This is what we call everyone who works with us. Try as hard as you can not to use terms which are so common, but which do not express equality.

Customer Services: This is very important. Never fail to serve a customer well; do not run away from the customer, and do for the customer exactly what you would expect if you were in their position. Be honest about deadlines, prices and service conditions - never promise something you cannot deliver.

I find “never run away from your customer” an interesting thing to say — I think this point requires some reflection:

Do we — as an act of omission — run away from our customers — either in action or mentally or emotionally?

Below is their survival guide, taken directly from their website:

Leadership
We believe that organizational structure is required to ensure good business processes. However, only people who have respect for their followers can be leaders. Situational leadership will always be stimulated and respected.

Position
At the Semco Group, it makes no difference whether someone has a high ranking or a humble position. The most important thing is to always try to learn and teach new things.

Job Rotation
Whenever possible we rotate people: Some people change area and other people change business unit. This is another development opportunity offered by the company.

Freedom
There is no space at the Semco Group for formalities. The doors are always open and people should say what they really think, without worries or inhibitions.

Honesty
Everything at the Semco Group is based on trust. Whenever there is dishonesty, and there is always the possibility that there will be somebody dishonest, the company takes hard action.

Accusations
The company does not encourage people to accuse others - this should only occur when you believe you have access to concrete facts that somebody is benefiting while harming everybody else. Anonymous letters are not considered.

Gambling
No gambling of any type is permitted within the company.

Weapons and Violence
It is completely unacceptable to carry weapons inside the company. Any type of violence employed by one person against another is seen as an extremely serious event.

Unions
Unions are an important method of protecting workers. Unionization is free within the company. The Semco Group believes that constant relationships with unions are healthy for the company and the employees. The presence of union members at the company is always welcome.

You… and the Others
Based on the fact that everyone can say what they think, rumors and gossip should not be stimulated. Any attempt to harm another person is looked on very seriously. Take part and speak openly of what you are thinking in order to improve things.

Sales at the Company
The entry of salespersons to deal with personal issues is only permitted when scheduled by the interested party.

Loan Sharking
Any employee lending money to another while charging interest is considered abusive and this is dealt with by the company as a serious matter.

Discrimination
The Semco Group does not permit discrimination based on sex, colour, religion, politics etc. Everybody must have identical opportunities at the company - help to make this a reality.

Use of Authority
Many positions of the company involve the use of authority. Pressure, tactics that involve people working while afraid or any type of disrespect are considered incapable leadership and improper use of authority.

Working Hours
The Semco Group has flexible working hours where possible. This is a method of meeting the needs of each person, without harming the company.

Employee Timesheet Control
At the Semco Group, each person controls their own working hours. This is a method of transferring responsibility to each person.

Commissions
People at the Semco Group usually create commissions to deal with issues of collective interest. Take part to ensure that the commissions are active channels which effectively defend your interests, which may often not coincide with the interests of the company. Here, this conflict is seen as healthy and necessary.

Internal Promotions
At the Semco Group, people already working for the company are given preference when a new position or a promotion appears, as long as they fill the requirements for the job.

Vacations
The Semco Group does not believe that anyone cannot be replaced. Everybody must take their annual vacations, always. This is fundamental for the health of the people and the company as a whole - no excuse is good enough to justify accumulating vacations.

Recruitment
Where there is recruitment or a promotion, people in the department have the chance to interview, analyze and take part in the decision to choose the candidate.

Evaluation by Subordinates
Every six months you will fill in a questionnaire and say what you really think about your immediate superior. Be open and honest, when filling in the form and during the discussion that should take place afterwards.

Retirees
We have no restrictions on active or part-time work for retirees or people of an advanced age. Nobody is too old for us - on the contrary, we believe that experience comes with age.

Everyday Participation
The Semco Group philosophy is based on active involvement and participation. Do not sit back. Have an opinion, put yourself forward as a candidate, always say what you think - do not be just another cog in the wheel. State your opinion about everything that interests you, even if you weren’t asked for it. Be active about your feelings.

Suggestions
We want everybody to participate; opinions will always be welcome and should be spontaneous. The Semco Group does not use and is not wish to implement suggestion box programs. Whenever there is a need or interest, we can institute campaigners that encourage specific suggestions.

Dynamism
The Semco Group is normally a company that implements major changes from time to time. Don’t be scared - we think this is positive. Look at the changes without fear - these are typical characteristics of the Group.

Salary Policy
The Semco Group seeks to involve people in discussions regarding what is a fair salary for each employee. Of course, there are times when people think their salaries should be higher and the company believes it cannot pay more. What is important is to always provide an opportunity for discussions regarding this type of issue.

Strikes
The decision to take part or not in this type of event is an individual one. This is part of democracy and is respected by the company.

Personal Life
Each person’s life belongs to themselves and the personal life of each person at the Semco Group is sacred. Providing it does not interfere with the work of the environment, the company is not interested in what each person does with their own life. The human resources area is available to provide support in any area, but the company will never get involved in people’s private lives.

Former Semco Employees
Whenever anybody leaves the company, they are always welcome back - we have nothing against former Semco employees. On the contrary.

Severance
Whenever there are dismissals the company spends hours and days carefully considering the case (or cases). The company avoids dismissals as much as it can and is extremely involved in protecting justice - we must all take this line - dismissals are very serious and must be dealt with carefully by everybody.

Occupational Safety
This is not only a company responsibility. Keep your eyes open, always avoid accidents, use safety equipment even when it is bothersome - we cannot take risks with our health. Make a special effort along these lines, demand that the company do its part and do not let CIPA become a pro forma commission.

Statement of Results
On a periodic basis you’ll find out the results for your unit and for the company, and will be able to discuss them. Watch the results closely and ask any questions you want - there are no issues that cannot be discussed. Very few companies offer this - take advantage!

Profit Sharing Program
The Profit Sharing Program at the Semco Group is for real. This is a participation in which each unit wins. Each company and the Group have its own program, according to the characteristics of each business.

Relations
In order to avoid injustice or embarrassment, close relations do not work at the same unit, workplace or with the same leader, except in special cases. In completely different and unrelated locations, there are no formal restrictions.

Hourly/Monthly Workers
At the Semco Group there is no discrimination - Here everybody is a salaried worker and everybody is treated the same.

Our Personnel
We avoid using terms like “employees”, “staff”, “collaborator” and similar terms. We are a team and we only have “people”. This is what we call everyone who works with us. Try as hard as you can not to use terms which are so common, but which do not express equality.

Use of Company Resources
Do not mix company work and resources with personal services. During working hours, nobody should provide services to other people only for personal benefit, which does not stop people using a colleague’s services outside business hours, agreeing the conditions between themselves, without involving the company.

Customer Services
This is very important. Never fail to serve a customer well; do not run away from the customer, and do for the customer exactly what you would expect if you were in their position. Be honest about deadlines, prices and service conditions - never promise something you cannot deliver.

Communication
The Semco Group and its people must communicate openly and honestly. You must be tranquil and believe what is said in company notices – demand transparency when you are in doubt.

Pregnancy
Pregnancy is considered a time of great importance and happiness by the company. Never allow an injustice to be committed with one of our pregnant women – they deserve our respect and care.

Informality
Having a birthday party at the end of the working day or using nicknames is part of the company culture – don’t feel intimidated, and don’t stick to formalities.

Pride
It’s only worth working for someone you are proud of. Create this pride in the quality in what you do. Never deliver a product or service that fails to meet customer expectations, do not write a letter or communiqué that is not honest, and do not let the company’s stature fall – always fight for your pride.

Respect to Visitors
Give our visitors all of your attention and respect. Never let anyone wait more than 5 or 10 minutes. Meet everyone with courtesy, be they a supplier, customer or anyone else.

From the little I’ve seen, I’m quite impressed with Semco. If there are any that would care to chime-in on what they know of Semco — I’d love to hear about it in the comment section. Below is an interview with Ricardo Semler, the CEO of Semco.

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Articles on Ethnography and Design:

  1. Feature? What Feature?
  2. Simplify The Product
  3. Ask Aza Raskin
  4. Aza Raskin on Poka-Yoke & The Humane Interface
  5. Aza Raskin on Quasimodal Design and The ATM
  6. Aza on Feature-Bloat and Site Clutter
  7. Aza on Google Search Results Page
  8. Aza on Cooperation and Team Size
  9. Design Thinking in Medicine
  10. On Designing a Watering Can for Little Hands
  11. Queueing Theory and Visual Management
  12. An Interview with the Inventor of “Clocky”
  13. Bad Breath but Good Design
  14. What is Ethnography

Articles on Leadership:

  1. Overmanaged and Underled
  2. Colin Powell on Leadership
  3. Team or Staff?
  4. Tipping-Point Leadership
  5. Abraham Lincoln on Leadership
  6. How to transform an Organization: Chime-in Before Buy-in

Please articles on Queueing Theory below:

Articles on Operations, lean and six sigma, please visit the links below:

June 8, 2008

Peter Abilla
no nic
shmula
» Necessary but Insufficient

motorola in big troubleMotorola (MOT), the inventor of Six Sigma, is in big trouble. Even though it invented Six Sigma, this is a clear example that shows how Lean or Six Sigma are not a cure-all for corporate woes, but that good leadership and a winning strategy are key in a competitive world — Lean or Six Sigma is necessary, but not sufficient.

The Art of Exclusion

Michael Porter (Porter’s Five Forces) argues — I believe correctly –, in his seminal work, What is Strategy, that Operational Excellence is necessary but not sufficient. What is needed — even still and always — is a winning strategy. In his article, he argues that the essence of strategy consist of two related propositions:

  1. strategy is engaging in activities that are different than the competition
  2. strategy is engaging in activities that are similar than the competition, but perform better than the competition

Regarding (1), Porter argues that, regarding (1), the firm must choose a position — one that sets the firm apart from its competitors; a position that makes the firm and its products or services uniquely and competitively different and leads to a sustainable and profitable competitive advantage. Porter then claims that an important aspect of strategy is deciding what NOT to do — the art of exclusion.

Regarding (2), a firm will undoubtedly engage in activities that are similar than the competition. For example, take a traditional internet retailer — a firm in that space will usually have a front-end store and a fulfillment back-end. To set the firm apart on similar activities from its competitors requires that the firm perform those activities better — with better quality, lower costs, with better service, and deliver quicker than the competition.

Deploying a Lean or Six Sigma culture within your firm is essentially an activity borne from (2) — but it is not a panacea; by itself, a culture of Operational Excellence will find itself lacking in a hyper-competitive world.

Necessary but Insufficient

While Motorola might remain one of the hallmarks of Operational Excellence, it has, over the years, essentially failed to engage in activities that are uniquely and competitively different than the competition. Speaking as an outsider, it appears that Motorola has continued to run an efficient business, producing products and services with few defects and delivering on-time, but products and services in a market that has changed to demand less and less of Motorola products, in favor of competitors products, such as the Apple (AAPL) iPhone.

The Need for Leadership

The theme, I see, with most corporate problems, overwhelmingly points to Leadership. The OPPOSITE of long-term thinking, inspiring, visionary, humane, collaborative, reflective, selfless, nurturing, interested, responsible, and mobilizing is what seems to be what most companies elevate to the Chief Executive position.

Emulating Gary Convis

Gary Convis was recently brought in to be the CEO of Dana Corporation (DAN), an $8.7 Billion manufacturer of auto parts. Convis is a 40 year veteran of the auto industry and a former executive at Toyota. Dana Corporation is a struggling giant, currently in bankruptcy. When asked what words of wisdom he has to impart to his new team members at Dana Corporation, he said this:

“manage as if you have no power”

For me, that statement elegantly summarizes the the essence of Leadership — the type of Leadership that is capable of satisfying both (1) and (2) above.

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Articles on Leadership:

  1. Overmanaged and Underled
  2. Colin Power on Leadership
  3. Team or Staff?
  4. Tipping-Point Leadership
  5. Abraham Lincoln on Leadership
  6. How to transform an Organization: Chime-in Before Buy-in

Please articles on Queueing Theory below:

Articles on Operations, lean and six sigma, please visit the links below:

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May 11, 2008

Peter Abilla
no nic
shmula
» It’s the People also, not just the Tools

I spoke at a Lean Six Sigma conference last week, held in Chicago. The conference was packed with Supply Chain, Logistics, Fulfillment, Manufacturing, Transportation, Healthcare, and Service executives.

During the conference, I heard a lot of chest-beating, neutron-jack-welch type of comments and also a lot of focus and emphasis on the “tools” of Operational Excellence. I truly found this part to be quite disappointing, given that the audience and speakers were mostly executives from large Fortune 500 companies.

I thought and expected that people knew better but that’s okay — this represents a challenge and opportunity to do good.

How has Lean Manufacturing and Six Sigma gotten to the point where it has forgotten its roots and become a subculture all in itself? Lean Manufacturing hinges upon 2 pillars — (1) Respect for People and (2) Continuous Improvement. Why do people focus on (2), but completely forget (1) Respect for People?

L.A.M.E

Mark coined the term L.A.M.E a while ago and I mostly agree with it. One aspect I’d add is that the term ‘misguided’ also applies to an overfocus to one dimension of Lean and forgetting the other dimensions. The ironic thing about this is that each dimension of Lean actually supports each other and WAS built from each other.

Another thing as way of background: the work ‘Lean’ was a term coined by MIT’s International Motor Vehicle Program, led by Jim Womack. The term was coined to explain how Toyota got by with “half of everything” — how they did so much with so little — fewer people, less space, less inventory, less effort, less safety incidences, less defects, and less capital investment and cash.

I hear people use “Toyota Production System” and “Lean” separately. In fact, during the conference I heard a number of people say things such as “We use Lean, Six Sigma, and The Toyota Production System.” That’s like saying “I drink water, liquid, and H2O”.

Not L.A.M.E

Toyota describes its system as a combination of (a) Philosophy, (b) Management, and (c) Technical. Each was built upon the other and exist to support each other.

For example, some people consider ‘Kaizen’ a tool, often referring to this as ‘Kaizen Blitz’ (which is really ‘Jishuken’, but people confuse the two), which is a team-based, rapid activity that explores a production line or problems in an operation, drive to root causes, and then brainstorm countermeasures to reduce or eliminate those root causes.

What most folks forget is that ‘Kaizen’ was truly build upon the philosophy that “Toyota builds people and then cars” — that is, Kaizen came from the notion that the collective intelligence of your line workers is valuable and that people, if given the training and the chance, can truly do amazing things. This is an example where the Technical came from Philosophy — the tools and methods used in Kaizen are supported and even stems from the Philosophy of ‘Respect for People’.

Good Leadership versus Just Tools

I’d venture to say that if there is good, visionary leadership in place, then I’d take that over any ‘Tool’. But, that is the elegance of the Toyota Way that most people don’t know, understand, or convienently forget: true Lean Manufacturing hinges upon building Leaders throughout the company — people who know and live the principles of Operational Excellence and also know how to apply the Tools that support those Principles.

It is possible to implement a tool like Kaizen or suggestion boxes, but if your organization doesn’t respect people or if participative management is not valued, then your Kaizen activities will be mute and your suggestion boxes will be empty.

sidenote: here are a few articles on leadership –

  1. Overmanaged and Underled
  2. Colin Power on Leadership
  3. Team or Staff?
  4. Tipping-Point Leadership
  5. Abraham Lincoln on Leadership
  6. How to transform an Organization: Chime-in Before Buy-in

The Andon of Fear

andon cord, lean manufacturingHere’s another illustration of the subtle, but important difference between Respect for People and Tools.

An Andon is a cord that hangs on both sides of a production line. It is to be ‘pulled’ when a problem happens on the line and, when pulled, the line stops. The activity that ensues should be that the team gathers together, conducts root cause analysis (5-why’s), implements countermeasures, then the line start again.

Now, suppose your organization breeds fear in its people and that questioning the status quo is viewed as bad. In this type of environment, implementing the ‘tool’ of an andon cord will not work. The principles at play here are the following:

  1. Speak-up if you see a problem
  2. Don’t pass problems up or down the value chain
  3. Improve the way you work, the service, and the product
  4. There is an end-customer, but the person upstream and downstream from you is also your customer

If an organization doesn’t subscribe to these basic principles, then no matter how many Andon Cords are available at your company — nobody will pull them.

Emulating Gary Convis

Gary Convis was recently brought in to be the CEO of Dana Corporation (DAN), an $8.7 Billion manufacturer of auto parts. Convis is a 40 year veteran of the auto industry and a former executive at Toyota. Dana Corporation is a struggling giant, currently in bankruptcy. When asked what words of wisdom he has to impart to his new team members at Dana Corporation, he said this:

“manage as if you have no power”

For me, that statement elegantly summarizes the the essence of Lean Manufacturing: we teach people principles and the tools that support those principles, then we coach, teach, provide leadership, and trust them to do the right thing.

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Please find originally-written articles on Queueing Theory below:

For a few articles on Operations, lean and six sigma, please visit the links below:

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February 26, 2008

Peter Abilla
no nic
shmula
» Abraham Lincoln on Genchi Genbutsu

I just finished reading the book Lincoln on Leadership. I found it to be an excellent book, highlighting the leadership lessons that made Lincoln one of the most revered and respected people in the world. I highly recommend this book.

Abraham Lincoln’s life, in my view, was a personification of the Toyota Way — his respect for people, his personal tutoring of his followers through effective use of ambiguity and the Socratic approach, and his common sense — all pleasantly wreak of Toyota.

To highlight how Lincoln’s demeanor and leadership style captures some of the essence of the Toyota Way, I want to share his general approach with people and how that is really a manifestation of Toyota’s principle of Genchi Genbutsu.

Amazon.com Widgets

Get Out of the Office

Lincoln once fired one his Generals because the General was "out of touch" with his troops.  In Lincoln’s words:

He [General Freemont] is losing the confidence of men near him, whose support any man in his position must have to be successful.  His cardinal mistake is that he isolates himself, and allows nobody to see him; and by which he does not know what is going on in the very matter he is dealing with.

Lincoln on Leadership, page 14

Lincoln’s letter, an excerpt of which you find above, is instructive as it is very pointed: Lincoln is teaching while he is correcting.   This is a subtle but strong hallmark of a good leader.

Genchi Genbutsu

To illustrate the concept of Genchi Genbutsu, Taiichi Ohno does this well through a distinction he makes between Facts versus Data.  In his words,

"The root cause of any problem is the key to a lasting solution," Ohno used to say.  He constantly emphasized the importance of genchi genbutsu, or ‘going to the source,’ and clarifying the problem with one’s own eyes. "‘Data’ is of course important in manufacturing," he often remarked, "but I place greatest emphasis on ‘facts.’"

Data is a degree removed from the actual place where the phenomena is happening.  In other words, there is a big — but subtle — difference between data that shows how often a machine fails versus being present at the machine and observing it failing.  Genchi Genbutsu is about being there and observing the phenomena while it is happening.

Taiichi Ohno placed a greater value on being where the work is done and where value is added.  Whereas data is often on a computer screen or on paper.  He preferred to be at the source of the phenomena.

Management By Walking Around is not Genchi Genbutsu

Peters, a former Mckinsey-ite, once put forth the notion of Management By Walking Around (MBWA).   Management by Walking Around is more about "visiting" and being seen by the people.  The intention is, in my view, quite superficial. 

On the other hand, Genchi Genbutsu is about knowing, experiencing, and building empathy for those who are in the Gemba.  The spirit of Genchi Genbutsu is about knowing first-hand what happens in the Gemba by actually being in the Gemba and participating in the Gemba.  The difference is subtle, but stark.

Tom Peters MBWA is not Genchi Genbutsu.

Articles on Genchi Genbutsu

  1. Genchi Genbutsu and Tipping-Point Leadership
  2. Unarticulated Customer Needs
  3. Genchi Genbutsu and the Toyota 4Runner
  4. On Ethnography

Sponsored Links: Kitchen Faucets, Bathroom Fixtures

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January 13, 2008

Peter Abilla
no nic
shmula
» Overmanaged and Underled

As I mature and become more aware of the subtleties of business, I am slowly learning the meaning of Leadership.  For most of my career and, in part, my education, I have aimed to be become the best — technically — in the field of Operations, Logistics, Supply Chain, Lean Manufacturing, and Six Sigma.  I haven’t achieved my aim — and, indeed, view that pursuit as a lifetime goal — but I am now at a place where I feel some sense of achievement in those areas that I mentioned and have become painfully aware of those areas where I need to grow.   I do not intend any hubris in what I am saying, but this post is primarily a post of reflection — Hansei – and brutally facing the facts of where I have personally traveled and how I need to improve.

I have a clear need to grow in Leadership.   I have myopically focused on the technical side of things and also on managing, but really failed to nurture my ability to communicate a vision, align and inspire people, and get people moving in the same direction.  In my short career, I have been fortunate enough to have helped companies achieve bottom-line savings & target revenue growth through fundamental improvements in the business — not through financial engineering — but through real, improvements in the business.  I am thankful that I have been able to do that and am grateful to my previous team members and mentors who have helped me along the way.  What I am focused on now is on growing my ability to lead.  I have so much to learn but am so excited for the opportunity to stretch and grow.

A Defining Example

I was a kid who came from very humble circumstances.  I immigrated to the United States from the Philippines when I was 9.  My dad died when I was 6.  We were in America — poor, alone, but with big dreams.  My family and I lived in a small 2-bedroom apartment in Northern California; my mom worked hard as a secretary and my 3 older brothers also worked very hard — often times 2 or 3 jobs while attending school.  I was young, but helped where I could. 

That example of hard work and struggle that I witnessed from my mom and brothers and that I also went through were defining moments for me.  I learned early on that a "Free Ride" doesn’t exist and that hard work was the right approach.  I’m thankful to my mom and brothers for setting an example for me at an early age. 

Since I was young and, in large part, had very little supervision or guidance, I got into trouble and even found myself in juvenile hall once.  I’m not proud of that period of my youth, but that experience helped to shape me — it helped me to change. 

I Needed a Mentor

We moved from one apartment complex to another during my Freshman year of High School.  In that new apartment complex, I was fortunate to have a neighbor that influenced me greatly.  At the time, I was 15 and this neighbor was a 50-year old Jew-turned-Hindu.  He had devoted himself to the Monastic life and devoted himself to serving others. 

He Needed Help with His Groceries

He was older and had a bad back.  One day when his back was hurting unusually, he motioned to me for some help with his groceries because he couldn’t bring them up to his apartment.   I helped him and we became friends. 

Through our friendship, he helped me to focus and to broaden my vision of what I could do with my life.  At that time, I honestly believed that I would be in Jail by my 25th birthday, or not be alive by that age.  He helped me to "see" a life different than what I had.  Then, he helped me to envision how I can get to a better place — this included doing better in school and getting my life in order.  Through his kind, gentle, and tough mentoring, he really motivated me to do better and to be better and to "see" a different life — a life I could personally create.

I set some goals and started to do better in school.  I obtained a job at a local Kentucky Fried Chicken, working 30 hours per week while attending High School.  I eventually became Assistant Manager and learned how to manage a small business, people, inventory, and the importance of customer service.  I also learned to juggle school and work and, it was then, that I also became addicted to Chicken Wings. 

Since that time, I’ve been blessed to have accomplished some other things in business and life. 

He showed me what Leadership is; through his mentoring, stretching, challenging, tough teaching, and loving guidance, I have become better.  I am so thankful for good people who help others grow. 

Leadership and Management

John P. Kotter, in a 2001 Harvard Business Review article, claims that most organizations are Overmanaged and Underled.  He explains the differences between Leadership and Management, which I summarize below:

 Leadership Management
 Cope with Change Cope with Complexity
Set a Direction Planning and Budgeting
Aligning People Organizing and Staffing
Motivating and Inspiring Controlling and Problem Solving


Kotter shares an example from the Military, which is an organization that produces exceptional leaders.  He shares this quip, which explains well what he believes the differences are between Leadership and Management: "No one has yet figured out how to Manage people effectively into battle — they must be led."

In the article, Kotter elaborates on the differences between the elements of Leadership versus Management.  I plan on summarizing his thoughts, with a few comments of my own, at some future time.

What about you?

I’m curious to know from you — who, in your personal history, was a good example of a Leader and how did that person shape you?

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Please find originally-written articles on Queueing Theory below:

For a few articles on Operations, lean and six sigma, please visit the links below:

December 23, 2007

Peter Abilla
no nic
shmula
» Team or Staff?

The etymology of words has always been fascinating to me.  I’m a student of Leadership and have though often about team dynamics and how to best lead a team.  Then, it dawned on me what others have called their teams — I’ve heard them call the group of people that they work with as "Team" and I’ve also heard "Staff."  I wonder what etymology has to teach us regarding these two words.

Staff

The etymology of the word "Staff" as it relates to a group of people one works with finds its history in the military.  Accordingly, it means: "group of officers supporting a general."  Physically, a "Staff" is also a walking stick, or a device used to help the person stand or walk.  The metaphor here is important: a Staff can literally be understood as the group of people that hold-up the leader. 

So, then, a Staff is a group of people that hold-up the leader.  The Staff is the group of people that the leader can count on and trust they they will not let her fall. 

Team

Team finds its history in agriculture.  A "Team" is etymologically a group of animals that are yoked together and bridled or governed by a set of rules.  There are several very interesting concepts at play here:

  • Yoke

Yoke is a physical harness that brings a group of animals physically together.  This is important because as the Team pulls the carriage, proximity to each other is critical so that the team heads one way and the point-of-control for the leader is isolated to just the yoke, making the job of the leader easier. 

  • Bridle

Bridle means "govern".  In other words, the team of horses are "governed" by a set of agreed-to rules; a set of convention that makes their interaction with each other transparent, expected, and understood. 

So, a Team, then, is a group of people that are "yoked" together with a purpose and are "governed" by a set of rules that makes the team run well, smoothly, and predictably. 

Team or Staff?

The etymology of both Team and Staff is rich in military and agricultural history.  How we use these words in the workplace has subtle, but, important implications for "how" we see the group of people we work with.  On the one hand, a Staff is a group of people that a leader can rely on and trust and hold her up.  Team, on the other hand, uses the metaphor of "yoke" — which is an above-all-of-us purpose that unifies all members of the group with a common purpose.  Moreover, "bridle" or "govern" is a metaphor that is very appropriate in how teams can work well together. 

Think of your daily language; what history do they have and how does that history affect the way you work or see the world?

Image Credit: 1, 2

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Please find originally-written articles on Queueing Theory below:

For a few articles on Operations, lean and six sigma, please visit the links below:

December 3, 2007

Peter Abilla
no nic
shmula
» Poppendieck on Waste & The Handoff

Last week, I invited the readers of shmula to pose questions to Mary and Tom Poppendieck, the authors of Lean Software Development: An Agile Toolkit for Software Development Managers (Paperback), which won the Software Development Productivity Award in 2004 and, the sequel Implementing Lean Software Development: From Concept to Cash (Paperback).  Several questions were submitted and, over the next several weeks, I’ll be posting Mary and Tom’s responses.

A quick note on convention:

MBP: This is Mary Poppendiek’s response.
TDP: This is Tom Poppendiek’s response.

Below is the first question-and-answer in the series:

John D. Heintz said,
November 15, 2007 @ 1:43 pm

Many Agile methods suggest a division of responsibility between the Customer and development team. The Customer is responsible for understanding and prioritizing the business needs and the dev team is responsible for estimating and implementing solutions.  This business/technology division of labor seems simple, visible and I can understand the daily responsibilities of each side.  The downside to this is (paraphrasing you from the lean development list) a we/they divide leading to local optimizations.  An alternate structure is the “Chief Engineer” who is responsible for the total business success of a product and leading the engineering as well.

My question: How does the division and delegation of responsibility differ when a Chief Engineer is responsible for the business success?  A Chief Engineer must have broad business and technical experience, but this person can’t be responsible for everything, all the time.  The best guess I can think of is to characterize the two styles into:

  • Vertical Style: business/technical sides with a communication contract.
  • Horizontal Style: A central figure that uses set-based design to constrain the next levels of work.

Interested in your experience and thoughts,

John

MBP >>

I recommend that you check out the book Lean Product and Process Development by Allen Ward (Lean Enterprise Institute, March 2007).  Allen Ward spent years leading studies of Toyota’s product development process.

He claims in the book that the biggest waste in product development is found at hand-offs.  A handoff occurs whenever you separate responsibility (what to do), knowledge (how to do it), action (actually doing it), and feedback (learning from results).  The problem with a we-they relationship between “the business” and “the development team” is that it creates a huge handoff, and embedded in that handoff is significant lost knowledge, and hence serious waste.  The development team should not be separate from the business, it should be a part of the business.  In this book Ward also discusses the role of what he calls the “entrepreneurial systems designer” (ESD), and he gives a good explanation of the role. 

But to address your question directly, in a culture with product champions (as we had at 3M) or Chief Engineers (as at Toyota), the focus of activity is on a specific value stream (product & its support structure), while the focus of knowledge creation is on the horizontal (functional) organization.  This is to say if your company distinguishes itself by being really good at User Interaction Design, or test frameworks for hardware, or highly resilient transaction processing, or whatever, you had better develop and protect an unassailable technical capability in the areas that constitute your competitive advantage.  This technical capability will be applied to products (led by a product champion), but needs to be protected as an organizational core competence (perhaps under the guidance of a functional manager).

TDP >>

When a new engineer joins Toyota, they spend their first six months working in a factory building cars.  They spend the next few months working in a dealership selling cars.  Toyota considers well worthwhile this investment in providing the people who design their products with a deep, first hand understanding of the human consequences of their design decisions.  There are no strictly technical or strictly business decisions.  Each area both enables and constrains the other.  The chief engineer holds the vision of how the customers can be profitably served, and collaborates with the team members to iteratively refine the vision into a collection of features and implementations.  Each team member ensures that from their specific functional perspective the result will deliver sustainable value. Tradeoffs often cross functional boundaries.

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If you are interested, go here for a previous interview with Mary and Tom Poppendieck

Please find originally-written articles on Queueing Theory below:

For a few articles on Operations, lean and six sigma, please visit the links below:

November 19, 2007

Peter Abilla
no nic
shmula
» Featuritis and the Customer Experience

The more I learn and practice ethnography and design-thinking, the more I notice subtle but incredibly frustrating experiences.  For example, I had a frustrating experience with a faucet that was in the hospital room where our adopted baby girl, Mylie, was born.  This faucet is an automated one — with a sensor.  So, whenever an object passes the sensor, the faucet would turn on even if the intention of the human was not to use the faucet.    

A few facts about this faucet: this faucet was in the corner of the room, against the wall.  It i