six sigma

Jeff Bezos and Root Cause Analysis

unrelated update:

I’m always impressed when CEO’s demonstrate Deming-like behavior as they lead; it’s rare, but there’s almost a magical, mobilizing, and inspiring force that happens when CEO’s or corporate leaders behave in a respectful, inspiring, common-sense, and thoughtful way.

Today, I’m reminded of an experience back in 2004 while I worked for Amazon.com — something Jeff Bezos did that I still carry with me to this day.

unrelated update:

I’m always impressed when CEO’s demonstrate Deming-like behavior as they lead; it’s rare, but there’s almost a magical, mobilizing, and inspiring force that happens when CEO’s or corporate leaders behave in a respectful, inspiring, common-sense, and thoughtful way.

Today, I’m reminded of an experience back in 2004 while I worked for Amazon.com — something Jeff Bezos did that I still carry with me to this day.

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Law of Instinct

love data, but not much credit is given to hunch; gut, instinct.  Colin Powell, in his Laws of Leadership, shares what he calls his Law of Instinct.  He claims the following:

Part I:

Use the formula P@40-to-70, in which P stands for the probability of success and the numbers indicate the percentage of information obtained.

Part II:

time.jpg I love data, but not much credit is given to hunch; gut, instinct.  Colin Powell, in his Laws of Leadership, shares what he calls his Law of Instinct.  He claims the following:

Part I:

Use the formula P@40-to-70, in which P stands for the probability of success and the numbers indicate the percentage of information obtained.

Part II:

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Too Many Cooks in the Kitchen

eam size can make a big difference in the success of your service or product.  What is counter-intuitive for most people is that the larger the team size, the lower the likelihood of success for your service or product. Why? Communication Entropy can set in and large teams are inherently bad vehicles for communication.

a.jpg Team size can make a big difference in the success of your service or product.  What is counter-intuitive for most people is that the larger the team size, the lower the likelihood of success for your service or product. Why? Communication Entropy can set in and large teams are inherently bad vehicles for communication.

More sinister, however, is that the larger the team, there is a higher likelihood of accountability and responsibility being diffused across the team and when everyone is in charge, then nobody is in charge.  A good friend of mine calls this situation a state of affairs where “there are too many cooks in the kitchen” — but the big difference is that the Kitchen acts as an Obeya since all the actors are in the same location.

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Customer Service Contacts are Symptoms, not Root Causes: How to Apply the 5 Whys

Most organizations believe that Customer Service contacts are what needs to be fixed or eliminated.  On the surface, that might be true.  But, when approached as a Lean Thinker, Customer Service contacts are truly only symptoms, the root causes of which are not yet fully known.  In what follows, I’ll explain the role of Customer Service in the overall business value chain, and how the business can better meet the needs of the customer through the effective use of the Customer Service function.

Most organizations believe that Customer Service contacts are what needs to be fixed or eliminated.  On the surface, that might be true.  But, when approached as a Lean Thinker, Customer Service contacts are truly only symptoms, the root causes of which are not yet fully known.  In what follows, I’ll explain the role of Customer Service in the overall business value chain, and how the business can better meet the needs of the customer through the effective use of the Customer Service function.

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Value and People: More with More, Less with Less, More with Less, Less with More

icahnIn a very tough economic environment, it is inevitable that everyday people like you and me will be impacted. Gyrations in demand — which is often a product of our own creation (i.e., the bullwhip effect) and not a natural result of supply and demand — will lead companies to make the tough decision to do one of the following:

  1. Add more value with more people

icahnIn a very tough economic environment, it is inevitable that everyday people like you and me will be impacted. Gyrations in demand — which is often a product of our own creation (i.e., the bullwhip effect) and not a natural result of supply and demand — will lead companies to make the tough decision to do one of the following:

  1. Add more value with more people

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Operational Excellence is not a Substitute for Effective Leadership or a Good Strategy

fanniemaelogoIt’s old news that Fannie Mae (FNM) is in big financial trouble.  Through some bad decisions and an overall poor strategy, they are now on the brink of collapse.  What is news, however, is that they are starting an Operational Excellence program and are aggressively recruiting for a Director of Lean Six Sigma — a recruiter called me today, wanting to talk with me about the job.

fanniemaelogoIt’s old news that Fannie Mae (FNM) is in big financial trouble.  Through some bad decisions and an overall poor strategy, they are now on the brink of collapse.  What is news, however, is that they are starting an Operational Excellence program and are aggressively recruiting for a Director of Lean Six Sigma — a recruiter called me today, wanting to talk with me about the job.

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Not Accountable, Not Responsible

Team size can make a big difference in the success of your service or product. What is counterintuitive for most people is that the larger the team size, the lower the likelihood of success for your service or product.  Why? Entropy can set in and large teams are inherently bad vehicles for communication. More insipid, however, is that the larger the team, there is a higher likelihood of accountability and responsibility being diffused across the team.

Team size can make a big difference in the success of your service or product. What is counterintuitive for most people is that the larger the team size, the lower the likelihood of success for your service or product.  Why? Entropy can set in and large teams are inherently bad vehicles for communication. More insipid, however, is that the larger the team, there is a higher likelihood of accountability and responsibility being diffused across the team.

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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

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

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Fast Food Congestion

Every system has constraints — sometimes several — minor bottlenecks and major bottlenecks.  What makes managing constraints even more challenging is that bottlenecks move: up-and-down the process paths.

I saw this phenomenon recently during a visit to a fast food restaurant, which I discuss in this post — but, my application of the Theory of Constraints, Lean Manufacturing, and Six Sigma as applied to a Restaurant can be applied to any Dynamic System.

Every system has constraints — sometimes several — minor bottlenecks and major bottlenecks.  What makes managing constraints even more challenging is that bottlenecks move: up-and-down the process paths.

I saw this phenomenon recently during a visit to a fast food restaurant, which I discuss in this post — but, my application of the Theory of Constraints, Lean Manufacturing, and Six Sigma as applied to a Restaurant can be applied to any Dynamic System.

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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’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.

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