Preventing the 5 Deadly Diseases of Management

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Back in 1984 Dr. W. Edwards Deming (best known for the "Plan - Do - Check - Act" cycle) foresaw the current economic crisis and its causes. He considered the "5 Deadly Diseases of Management" to be the root of the problem. In his virtual interview with Dr. Deming (who passed away in 1993), Mischa Ramseyer will take a closer look at these diseases - which are still prevalent today - and present some agile management recipes on how to prevent and cure these in today's world. The whole interview can be viewed on Youtube: http://www.youtube.com/watch?v=ehMAwIHGN0Y

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Preventing the 5 Deadly Diseases of Management

Interview  with  W.  Edwards  Deming  Agile  Cure  by  Mischa  Ramseyer  

Presented  @  GOTO  Zürich,  10.04.2013  

Agile Coach & Trainer Management Coach & Trainer

hJp://www.management30.com  

Mischa Ramseyer @ramsyman

The Interview Mischa Ramseyer W. Edwards Deming (1900 – 1993)

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  

numbers  

Our Mission

Stop the Virus!

Good to know our Mission!

What now?

Build awareness!

I cannot fight, what I don‘t see!

OK, we are aware...

What now?

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  numbers  

But where?

What‘s the most important thing?

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  

numbers  

Define Purpose! Why are you here?

hJp://www.scoJwhitelaw.com/gallery/  

Be inspiring

Organize the world’s information and make it universally accessible and useful.

To provide the best customer service

possible.

We’re always creating.

Define your Mission, or ...

10.04.13   From  Vision  to  Backlog   18   hJp://www.liip.ch/staS

c/manife

sto/inde

x.html  

... a Manifesto

Align Business to Purpuse

Do you mean strategy alignment?

If the strategy isn‘t the foundation, what is it then?

hJp://en.wikipedia.org/wiki/Zappos.com  

Values:  hJp://labyrinthgal.blogspot.ch/2010/06/delivering-­‐happiness-­‐book-­‐report.html  Movement:  hJp://www.deliveringhappiness.com    

To provide the best customer service possible.

hJp://www.liip.ch/de/who/philosophy  

The set of guiding values, principles and beliefs we call ...

hJp://enviableworkplace.com/company-­‐culture/    

Values  &  Principles   •  Who are we? •  Lifetime

Mission   •  Why do we exist? •  10 – 20 years

Vision   •  What do we want? •  5 - 10 years

Strategy   •  How will we do it? •  1 - 5 years

Alignm

ent  

©  2012  –  2013  pragmaSc  soluSons  gmbh  

hJp://www.businessmodelgeneraSon.com/canvas    hJp://www.slideshare.net/Alex.Osterwalder/a-­‐business-­‐model-­‐for-­‐solar-­‐energy-­‐sunedison-­‐3319168    

http://businessmodelsbeyondprofit.com

hJp://www.peerup.ch  

Let peers rate!

hJp://www.valveso_ware.com/company/Valve_Handbook_LowRes.pdf  

hJp://www.valveso_ware.com/company/Valve_Handbook_LowRes.pdf  

1

KUDOBOX

MANAGEMENT !." WORKOUT# $"%$ JURGEN APPELO

MANAGEMENT!".COM/KUDOBOX

hJp://w

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anagement30.com

/workout/kudo-­‐box/    

6

Rewards can work for your organization, and not against it, when you take the following six rules into account:

Don’t promise rewards in advance.Give rewards at unexpected moments, so that people don’t change their intentions and focus on the reward. When acknowled-gement of good work comes as a surprise, research says intrinsic motivation will not be undermined [Pink, Drive l:524].

Keep anticipated rewards small.Sometimes you cannot prevent people an-ticipating a potential reward. In such cases, according to research, big rewards are likely to decrease the performance of people. This might be because the stress of anticipation will interfere with people’s working memory [Fleming].

Reward continuously, not once.Do not look just once per month or once per year for something to celebrate. Every day can be a day to celebrate something. When people do useful work every day, every day is an opportunity for a reward [McCrimmon, “Celebrating Success”].

1 2 37

Reward publicly, not privately.Everyone should understand what is rewar-ded and why. The goal of giving rewards is to acknowledge good work, and have people enjoy it too. To achieve this, a regular public reminder works better than an annual pri-vate one [Alberg, “Celebrate Success”].

Reward behavior, not outcome.Outcomes can often be achieved through shortcuts, while behavior is about decent work and e!ort. When you focus on good behavior, people learn how to behave. When you focus on desired outcomes, people may learn how to cheat [Fleming].

Reward peers, not subordinates.Rewards should not come just from the ma-nager. Find a way for people to reward each other, because peers often know better than managers which of their colleagues deserve a compliment [Tynan, “Reward Employees”].

These six rules for rewards give you the best chance at increasing people’s performance and enjoyment, while encouraging intrinsic motivation instead of destroying it. Notice that an incidental com-pliment addressed at a colleague in a meeting, for a job well done,

satisfies all six criteria. A well-aimed kiss, blown carefully across a conference table, can also do wonders, I’ve noticed ( just kidding!) It’s not that di"cult to implement rewards well.

4 5 6

The Six Rules of Rewards

hJp://w

ww.m

anagement30.com

/workout/kudo-­‐box/    

Develop Leaders from the inside!

We need craftsman!

Shu  tradiSonal  wisdom,  learning  fundamentals  appren)ce  Ha  detachment,  breaking  with  tradiSon  journeyman  Ri  transcendence,  everything  is  natural  master  

craftsman development

hJp://en.wikipedia.org/wiki/Shuhari    hJp://en.wikipedia.org/wiki/Master_cra_sman  hJp://www.management30.com/workout/business-­‐guilds/    

OK, we understood that craftsmanship is important, but

where are the leaders?

True North Values Challenge Kaizen Go and See Teamwork Respect for Humanity

1.  Commit to self-development Learn to live True North values through repeated learning cycles

2. Coach and Develop Others See & challenge true potential in others through self-development learning cycles

3. Support Daily Kaizen Build local capability throughout for daily management & kaizen

4. Create Vision and Align Goals Create True North vision & align goals vertically and horizontally

Optimize the Whole!

But how can we do this?

Ask the „Ultimate Question“

It‘s called the Net Promoter Score

hJp://en.wikipedia.org/wiki/Net_Promoter  

Is customer satisfaction the only KPI that measures?

Take different perspectives into account!

It’s  like  a  balanced  scorecard,  but  2-­‐dimensional  

perspe

ctive  

dimension  1.  Time  2.  Tools  3.  People  4.  Value  5.  FuncSonality  6.  Quality  7.  Process  

1. Employ

ee  

2. Te

am  

3. O

rgan

ization  

4. Customer  

5. M

anag

er  

6. Sup

plier  

7. Com

mun

ity  

hJp://www.management30.com  

Install a Management Cockpit

Tipp: Create company-wide goals!

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  

numbers  

Define  Purpose  

Align  business  

to  purpuse  

Let  peers  rate  

Develop  leaders  from  Inside  

OpSmize  the  

Whole   Don‘t fall back!

I‘m interested in your stories as well!

Con$nuous'Innova$on'

Network'&'Empowerment'

Do'the'Right'Thing'

Do'the'Thing'Right'

Strategy'

Organisa$on'

Effec$veness'

Efficiency'

Culture'

Context'&'Constraints'

Delivery'Products''Services'

©'2012'I'2013'pragma$c'solu$ons'gmbh'

The'Pragma$c'Organisa$on'

The''Pragma$c'

Organisa$on'

is'deligh$ng'their'employees'thru'long'

$me'purpose'

is'deligh$ng'their'clients'thru'con$nuous'innova$on'

is'organized''as'a'network'of'

empowered'teams'delivering'value'

is'delivering'the'right'products'&'services'in'

the'right'quality'

©'2012'I'2013'pragma$c'solu$ons'gmbh'

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