Continual vs. Continuous Improvement

W. Edwards Deming in Tokyo

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Coming from a W. Edwards Deming background, I have been sensitized to the word “continual” when it comes to improvement.  It served as a code word for those that where true followers of Dr. Deming vs. “the pretenders.”  I always knew who really understood the philosophy and those that just sounded good.

Even today, I still find myself talking to groups about the difference between continual and continuous improvement.  I like to describe “continuous improvement” as always making improvements and moving forward – I have never seen this happen over the long haul.  “Continual” improvement” implies that sometimes you have to stop or even take a step or steps backward to achieve improvement – improvement is discontinuous in nature.

Management doesn’t understand continual improvement as their impatience only allows them to embrace continuous improvement.  Always forward, the next quarter must be better than the last.  Growth, no matter what the reality or the foolishness of the pursuit.

Studying systems requires a stoppage to understand the underlying thinking that dictates the current performance.   With solid understanding, experimentation with method may lead to improvement or knowledge of what doesn’t work.  For a scientist, this is a victory as they come one-step closer to discovery.

The road to continual improvement is a rocky one with many ups and downs.  Understanding this allows one the opportunity to begin the journey.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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No Big Surprise – Another Over-Budget IT Project

English: The Seal of the United States Federal...

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Public sector, private sector . . . it really doesn’t make much difference.  The continuing saga of IT projects that run beyond their budget and don’t deliver continues to grow.  Maybe we should be asking what IT initiated project actually ever works.  I have seen claims of improvement, but it is like a football replay – upon further review I have yet to see an IT victory.

Go to an IT vendor website and you would have to believe the opposite were true.  Sorry Charlie . . . but that’s a can of sucker you are reading about on these sites.  Procurers need to be asking for evidence and this is something not promoted in marketing-speak.  A little research will tell you otherwise and don’t trust other fools that have had their share of gullible pie.

You need to go to the work and see the effect on the design and flow of the work.  Management to management communications are full of assumptions and not fact.  And please don’t trust the IT salesperson, they are paid to embellish . . . can you say lipstick on a pig?

The latest is the cost over-run is with the FBI.  This one was originally be slated for 2009 to be ready.  The inspector general found “deficiencies” in the program.  Oh, and the FBI may go over the $451 million budget.  Noooo, really?

IT vendors love to use the favorite words like antiquated, modernization, automation and even sophistication to sell their wares, so be weary.  Any IT pushed on organizations is a dead end.  Your system is unique in customers, design, management etc. and need solutions unique to enabling the work of YOUR organization.  Customization to get what you need that works is better than a cheap solution standardized by what others believe is best.  Common sense?  Yes, it should be, but it is rarely present

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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The Oops Factor

State Seal of Indiana.

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Reading Governor Mitch Daniel’s book, Keeping the Republic, he mentions the Indiana Welfare Eligibility modernization.  This modernization was a ten-year deal worth $1.3 billion to IBM and its partners.  It is an important story for all of government because everyone has the same mindset.

This mindset is characterized by anecdotal evidence to support an ideology.  In this case, privatization.  The old welfare system was labeled as the nation’s worst according to the US Department of Health and Human Services back in 2005 – these are the same bureaucrats that Governor Daniels laments about earlier in the book.  The system was rife with error, delays, fraud and unhappy people with the status quo.

Further, the welfare offices were described in the book as “a chaotic mess.  Antique, green-screen computers from the 1970s sat amid the floor-to-ceiling stacks of boxes stuffed with paper.  I asked our researchers to take pictures.  Otherwise, I knew no one would believe later how bad the system was.”

This is the death sentence for governments assuming old manual systems with old technology is always bad.  Government management has embraced modernization because it doesn’t feel “modern.”  However, the old systems are never evaluated for flow or knowledge, just that things looked old.  This is the mentality that wastes taxpayers billions of dollars.  IBM and others wait like wolves ready to pounce on the gullible and naive.

Governor Daniel’s calls the attempt an “oops.”   The re-engineering to modernize and privatize the welfare system wasn’t begun with knowledge but ideology and assumption.  When ideology and assumption are in the decision-making costs increase and service worsens.  Politics has a hard time separating reality from fantasy.  Evidence without preconceived notions is always best.

Modernization and privatization – which I am not against – really need to begin with knowledge of the systems we are trying to improve.  Governor Daniels does not challenge the back office design when describing the improvement effort, yet, here is a huge opportunity for improvement.  Most believe in the front-back office design that handicaps the design of work.  Different thinking and better method are required to improve work.

Governor Daniels has brought fiscal discipline to Indiana, but fiscal discipline by itself is doing the wrong thing, righter.  Indiana and other government entities can find dramatic improvement (another 30-70%)  from changing the thinking about the design and management of work.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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Management – A Little Neglect

A little neglect may breed great mischief…for want of a nail the shoe was lost; for want of a shoe the horse was lost; and for want of a horse the rider was lost.  – Benjamin Franklin

Benjamin Franklin

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Benjamin Franklin had wrote many an interesting article or letter during his day.  His bemoaning of neglect provides insight to the nagging nature of management.

Management has long wrestled with making things better, only to making things worse.  And so, we have neglected management in moving our thinking forward.  The industrialized, backward thinking of management has created a large chasm to cross in the pursuit of improvement.

We have neglected management as part of the problem for so long that improvement efforts have become focused on the front-line.  This has become an acceptable place for improvement to begin . . . and end.  The inches between the ears of management avoided as not to make waves.

It is true that work represents the place to make improvements, but if management is completely separated from the work there can be no real improvement or learning.  Management designed the work that workers do, workers can make some improvements but dramatic improvement requires management participation to understand.  You can not lead  or fix the design from from behind.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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The Right Attitude to Improvement

Working with a new company that has the right attitude going into the effort, one can only be optimistic.  The management is begging to be challenged, it is encouraged.  However, I am caught in a world between realism and hope.  There will be a roller coaster ride of emotion for my new client – management and workers alike.

Many prospective customers struggle with what the Vanguard Method (tVM) is about and try to fit it into their existing paradigm.  This makes the conversation awkward as the expectation of many is that I do process improvement . . . and I don’t.  Managers with this thinking want to do things better, tVM is about doing better things.  This is one of several reasons why improvement is so dramatic for those executives that understand that this means them too – when it comes to change.

Executives become participants by design.  Other improvement efforts embrace “sponsorship” and “support” which to me is completely lame and leaves too much improvement on the table – not empirical, but something like 30 – 40%.  Sustainability improves dramatically when executives understand – they are less likely to undo the good things.

The reality is that too few executives want to be challenged.  Ego and position in hierarchy play a role in this thinking.  Executives making the big money should have the answers in their mind and being challenged is – therefore, viewed as confrontational.  Nothing wrong with confrontation, but only when it is invited in.

Most people that know about the Vanguard Method know they will be challenged when we are invited in, the reputation of our successful work with clients often precedes us.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

Where Learning Happens

A question posed quite often by folks interested in learning the Vanguard Method is, “can you put on a class to teach me the Vanguard Method?”

The short answer is “no.”

Do we do training?  Yes, all the time, but it isn’t of the sort that you sit in a classroom and become inspired by anecdotes and case studies.  You have to be in the work, understanding and coming to grips with seeing things differently.  Only a steady diet of learning how to ask good questions and unpacking what you learn after manageable bites are taken can you slowly unlearn bad habits and embrace new better ones.

The toughest people to engage are always those that believe all they need is a little change . . . and that is most I encounter.  Or worse, they try to start with the things they know like plans.  Always, my response is predictable you begin with “get knowledge” and not plan or even scoping.  Planning and scoping – as traditionally done – fall well short of getting knowledge.

You see, understanding a system is much broader than traditional approaches.  Improving a system as I have stated before requires workers and management to change.  Workers and managers can redesign the system together while management thinking must change to sustain the improvement.

Frustration mounts when speaking to those folks seeing the fantastic improvement from the Vanguard Method, but try to engage keeping the same mindset that caused the waste and sub-optimization in the first place.   The best way is to begin to work together without preparation.  Going to the work and learning allows you to see for yourself the opportunity for improvement.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

Bureaucrats – Getting a Bum Rap?

White House Portrait of Mitch Daniels

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“. . . an astonishing amount of the laws created today are not made by elected, and therefore recallable, representatives, but by unelected bureaucrats and judges.”

- Governor Mitch Daniels

In Keeping the Republic, Governor Mitch Daniels laments how unelected officials (bureaucrats) make policy and law.  I was once a bureaucrat and so was Governor Daniels – lest he forget his time at the OMB.  However, Governor Daniels has a view of a right way and a wrong way to be a bureaucrat . . . and so do I.

Much of Governor Daniel’s view has to do with having a favorable cost-benefit ratio and making sure a law didn’t already exist.  This seems reasonable, especially considering Governor Daniels staunch fiscal discipline that he has embraced as Governor of Indiana.

For me, the issue is the same I have written about in posts many times before.  The question becomes, “by what method?”  Setting our cites on costs alone – always increases costs.  The method to improve government requires method.

I have long been an advocate of the virtues of the Vanguard Method.  Getting knowledge is always the best first step to improving service organizations.  The problem is that it is a rarity to find executives or elected officials willing to get in the work to get knowledge.  Instead, they rely on reports, anecdotes and others to do this for them.  Bureaucrats are in a position to be in the work and make decisions based on knowledge.

This doesn’t mean elected officials should abdicate the responsibility, but the reality is they do.  Elected officials are too busy embracing political ideology, and creating new laws to be bothered with facts.  As a bureaucrat, I remember being more hand-cuffed by dumb laws than wanting to create new ones.  Plenty of opportunities to do what makes sense than to pass a law.

Bureaucrats need good systems to work in too.  What I have seen in government is the influence of ideology over evidence that dictates the design.  Each new government has a different ideology and the learning is skipped in favor of ideology.  Misguided laws and ideology make government systems run poorly.  Blindly running down the privatization path is as faulty as embracing government to do things.  Better design of government is in order, but that is not what we get.

Bureaucrats are stuck in systems that are poorly design.  Not by choice, but by laws and ideology that rule thinking.  Government management and workers have been marginalized.  If we are to fix government, we need everybody engaged and the bureaucrats are in the best position to see the problems and identify ways to fix them and help fix the systems they work in.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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Software Scope Creep

In years past, I consulted with a large information technology company in the banking industry.  No hotter topic in a software development organization than scope creep.    Management was constantly trying to either limit scope creep or charge for it.  Better requirements were demanded or tighter contracts -addressing the symptom won’t stop the cause.

I decided to write on this topic because my recent Quality Digest article, The Information Technology Conundrum was critiqued on their weekly talk show Quality Digest Live! The moderators pointed out that IT projects were failing – as pointed out in my article – because of scope creep.  No, the reason is because the design of the work was flawed before the project was even conceived.  The project should never have even started.

Scope creep is smoke, but the real fire is work design and management thinking.

Fixing scope creep is like rearranging the chairs on the Titanic.  The ship is going to go down whether the chairs are moved or not.  Waste begets waste.  However, don’t plan on your IT software provider sharing this with you or even understanding the problem.  It is much more profitable to get paid to rearrange chairs than the harder task of saving the ship.

I have seen more IT projects get launched that should never have left the port.  The ship was never sea-worthy to begin with, but launch they do with a doomed destiny already sealed.  Just remember that scope creep isn’t the problem – your thinking is and service design is a product of your thinking.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

The Whole Vision Thing is Overrated

Greg Ballard

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There was an election recently in Indianapolis between incumbent Mayor Greg Ballard (R) and challenger Melina Kennedy.  A reporter for the Indianapolis Star (and the Star) put their endorsement behind the challenger because she had better vision . . . and we aren’t talking about eyesight.

I consider myself an independent, so there things I like and don’t like about Republicans and Democrats.  However, I found the whole “vision thing” to be pathetic.  I’ve seen it in business too.

Too many executives with “vision” running companies into the ground.  They need to understand the business first and not just bullet points and anecdotes.  They need to understand what it takes to do the job and interact with constituents or customers that use the service.  Visionaries often gloss over the “understand the business first” piece.

Mayor Ballard won despite the endorsement of the Star falling to his challenger.  Why? Because he and his staff did the things that matter to the voters.  Do the fundamentals well and reelection will follow.  The “vision thing” can wait for the basics to be mastered and knowledge to be gained.  If you aren’t doing the things that matter to customers and constituents than you aren’t going to win an election or make profit.

Vision and political ideology in government seemingly go hand-in-hand.  More government, less government, privatization . . . how about “what works”  for a change.  This requires knowledge, not plans or policy.  This is completely counter to the “big picture” people we too often see in government.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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Revisiting MBO (Management by Objectives)

The Honorable Jennifer Granholm, Governor of t...

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I am reading two books right now.  One by Governor Daniels of Indiana and another by former Governor Jennifer Granholm of Michigan.  Governor Granholm talks quite a bit about the loss of jobs in manufacturing in her State to outsourcing.  In fact, her last election against Dick DeVos – the former Amway CEO – she let him have it during her campaign for outsourcing jobs to China.  Certainly, the subject for a future blog post.

However, something else caught my eye . . . Governor Granholm’s love for MBO.

“As a big believer in management by objectives, I loved using  the State of the State speech as a blueprint for the year.”

- from A Governor’s Story – Governor Granholm

There is a correlation between the loss of jobs to outsourcing and MBO, but I won’t make it in this post.  They are both wrong behaviors and outsourcing you can find plenty of posts why it isn’t typically saving money.

Organizations and governments are still using MBO – shocking?  Not really.  I still see it in many organizations, once a bad idea . . . always a bad idea.

Peter Drucker invented this thinking in 1954, W. Edwards Deming rocked the world when he spoke about MBO as one of the evils of management (as practiced).  Closely related to MBO is SMART (Specific, Measurable, Agreed, Realistic and Time-related) and a Balanced Scorecard.  Targets come along with these thinking methods.

First of all, Dr. Deming understood that when you provide objectives and targets by function you get sub-optimization.  Meaning if you optimize each functional piece you miss the inter-dependencies and create a system works against itself.  This creates waste.  For example, you often see departments vying for resources focused on what they can get in resources for themselves. Artificial competition is produced and the loss to the system is great because we do what is right for the department, but not right for the system.

Information technology seems to get much of the money in organizations.  Yet IT cannot create value, it can only add value to the relationship between customer demands and work.  Unfortunately, too many organizations don’t get that IT, HR, Finance and other supporting areas aren’t meant to create a profit for their department – they are there to enable the value creating relationships.

With MBO, we get management and worker focused on the wrong things.  Hitting the target laid out in the objective (remember SMART).  The flow is interrupted by the functional separation of work as each piece tries to optimize itself.

“(MBO) nourishes short-term performance, annihilates long-term planning, builds fear, demolishes teamwork, nourishes rivalry and politics.”

- W. Edwards Deming (from Out of the Crisis)

“Management by Fear” was the Deming phrase that replaced MBO.

Governor Granholm is a Harvard graduate.  Peter Drucker taught there.  Harvard, with all its money has become the poster child for bad theory.  Smart people, wrong method.

As voters, we need to ask candidate, “By what method?”  As managers, we need better thinking about the design and management of work – devoid of MBO and targets.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the Vanguard Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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