preventing the 5 deadly diseases of management

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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

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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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Page 1: Preventing the 5 Deadly Diseases of Management

Preventing the 5 Deadly Diseases of Management

Interview  with  W.  Edwards  Deming  Agile  Cure  by  Mischa  Ramseyer  

Presented  @  GOTO  Zürich,  10.04.2013  

Page 2: Preventing the 5 Deadly Diseases of Management

Agile Coach & Trainer Management Coach & Trainer

hJp://www.management30.com  

Mischa Ramseyer @ramsyman

Page 3: Preventing the 5 Deadly Diseases of Management

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

Page 4: Preventing the 5 Deadly Diseases of Management

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  

numbers  

Page 5: Preventing the 5 Deadly Diseases of Management

Our Mission

Stop the Virus!

Page 6: Preventing the 5 Deadly Diseases of Management

Good to know our Mission!

What now?

Page 7: Preventing the 5 Deadly Diseases of Management

Build awareness!

I cannot fight, what I don‘t see!

Page 8: Preventing the 5 Deadly Diseases of Management

OK, we are aware...

What now?

Page 9: Preventing the 5 Deadly Diseases of Management

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  numbers  

Page 10: Preventing the 5 Deadly Diseases of Management

But where?

What‘s the most important thing?

Page 11: Preventing the 5 Deadly Diseases of Management

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  

numbers  

Page 12: Preventing the 5 Deadly Diseases of Management

Define Purpose! Why are you here?

hJp://www.scoJwhitelaw.com/gallery/  

Page 13: Preventing the 5 Deadly Diseases of Management
Page 14: Preventing the 5 Deadly Diseases of Management
Page 15: Preventing the 5 Deadly Diseases of Management
Page 16: Preventing the 5 Deadly Diseases of Management

Be inspiring

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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 ...

Page 18: Preventing the 5 Deadly Diseases of Management

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

c/manife

sto/inde

x.html  

... a Manifesto

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Align Business to Purpuse

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Do you mean strategy alignment?

Page 21: Preventing the 5 Deadly Diseases of Management

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

Page 22: Preventing the 5 Deadly Diseases of Management

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

Page 23: Preventing the 5 Deadly Diseases of Management

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

To provide the best customer service possible.

Page 24: Preventing the 5 Deadly Diseases of Management
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hJp://www.liip.ch/de/who/philosophy  

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

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

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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  

Page 29: Preventing the 5 Deadly Diseases of Management

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

Page 30: Preventing the 5 Deadly Diseases of Management

http://businessmodelsbeyondprofit.com

Page 31: Preventing the 5 Deadly Diseases of Management

hJp://www.peerup.ch  

Let peers rate!

Page 32: Preventing the 5 Deadly Diseases of Management

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

Page 33: Preventing the 5 Deadly Diseases of Management

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

Page 34: Preventing the 5 Deadly Diseases of Management

1

KUDOBOX

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

MANAGEMENT!".COM/KUDOBOX

hJp://w

ww.m

anagement30.com

/workout/kudo-­‐box/    

Page 35: Preventing the 5 Deadly Diseases of Management

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/    

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Develop Leaders from the inside!

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We need craftsman!

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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/    

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OK, we understood that craftsmanship is important, but

where are the leaders?

Page 40: Preventing the 5 Deadly Diseases of Management

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

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Optimize the Whole!

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But how can we do this?

Page 43: Preventing the 5 Deadly Diseases of Management

Ask the „Ultimate Question“

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It‘s called the Net Promoter Score

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

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Is customer satisfaction the only KPI that measures?

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Take different perspectives into account!

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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  

Page 48: Preventing the 5 Deadly Diseases of Management

Install a Management Cockpit

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Tipp: Create company-wide goals!

Page 50: Preventing the 5 Deadly Diseases of Management

Lack  of  Purpose  

Short  Term  

Thinking  

Annual  RaSng  of  Perform.  

Mobility  of  Mgmt  

Mgmt  by  

numbers  

Page 51: Preventing the 5 Deadly Diseases of Management

Define  Purpose  

Align  business  

to  purpuse  

Let  peers  rate  

Develop  leaders  from  Inside  

OpSmize  the  

Whole   Don‘t fall back!

Page 52: Preventing the 5 Deadly Diseases of Management

I‘m interested in your stories as well!

Page 53: Preventing the 5 Deadly Diseases of Management

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'

Page 54: Preventing the 5 Deadly Diseases of Management

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'