The Devil Incarnate

the devilThe scene: 

We’d been talking about it all week – that ‘big game’ banter. It’s an important year, it’s an important game, it’s a massive rivalry and a cauldron of passion and emotion….and we had die hard supporters of both sides – this was going to be massive! Even better, it was a Friday night game meaning it was a 9 a.m. kick off in New Zealand, live on Sky 1. Get in! Thank you (wo)man in the Sky!

What on earth am I writing about? I’m talking about Wales vs. England in a sell out Millennium Stadium to open up the Six Nations Rugby Tournament in 2015 England World Cup year.

We’d got it all worked out. Four families all going round to Stu’s (biggest screen – obvious choice!). Mostly England fans but pockets of Welsh resistance within.

We were going to do a full English* Breakfast fry up at the end, and the shopping list had been divided up and bought. It was going to be an epic post match feed. (* an omen perhaps?!)

We get to Stu’s at 08:30, and stack the breakfast goodies in the kitchen – tonnes of bacon, sausages, eggs, hash browns, tins of baked beans, mushrooms to fry, bread for toast, (exotic) corn fritters….and so on. Jonesy had even remembered the HP sauce – good man!

H had already got the tea pot on for a brew.

Stu’s got the TV on and is playing with the remote.

Stu: “eh? It’s not showing on the sky listing anymore!” said in an uncertain and shaky voice “it was there the other day. What the hell’s going on?!”

Me: “perhaps it’s moved over to the Rugby channel.”

Stu: “erm, no, not on Rugby channel or ESPN”….losing his composure a bit “…what the @#$% is going on.”

Me: “Have we got the right day?”to which I receive a stern look.

In walks Paul with 5 mins. to go before kickoff. He’s a bit more ‘techy’ than Stu and I (which isn’t hard): “use ‘Sky GO’ and stream it live.”

Now, picture the scene….we’ve got:

  • Stu doing the comedy typing thing on an (allegedly) SMART TV – trying to speed type website addresses, user names, passwords etc. with a TV remote control. If you’ve ever tried it you will know how frustrating it is;
  • Jonesy texting his mates up in Auckland to see if they are having the same troubles and trying to work out alternative methods of obtaining the holy grail of live rugby;
  • Paul trying to find a number to ring Sky…looks all over website, can’t find one (why do they make it so hard to have a 2-way interaction with them!)…finds a number….on hold, clearly very busy at the movement….wonder why!!
  • Me being as much use as a chocolate fire guard….but offering lots of helpful suggestions (I thought they were). H was keeping me supplied with tea to calm my nerves;
  • The ladies in the kitchen surveying the mountain of food and wondering how on earth we’ll eat it all. (We will);
  • Loads of kids in various states: some desperate to watch the rugby, some running riot around the house.

We tried all sorts of internet sites, including Sky Go: all the genuine ones said that we couldn’t view it from New Zealand; a number of dodgy sites requested credit card details – Stu did really well and resisted. Jonesy was willing to pay with the shirt off his back but we protected him from himself.

Finally, after over an hour of trying (i.e. the 2nd half had already started) we all reached that point when, looking around the room and seeing the pain in our comrades eyes, we admitted defeat. We weren’t going to get to watch the rugby live.

But NO, Jonesy wasn’t having this…he wasn’t going to let Sky get away with this – they were playing with people’s lives….he was going to ring that number and wait to talk to someone no matter what it took! His rationale was that they needed to know how we felt, they needed to know what they had done, they needed our feedback else how can they improve.

So he rings the 0800 number…and he waits…and he waits…and he waits.

The music comes on, he puts it on loud speaker so that we can all enjoy, thanks Jonesy – all heart.

And then, after 10 minutes of waiting, it happens – the computer talks to us:

“Thank you for your patience. Because your call is important to us we have increased your priority in the queue.”

Oh man, that really set me off. If they knew there was a Steve ‘button to press’, they had found it! (I even wrote down the exact words so I could write this post).

What does their message even mean! The first sentence is okay…the second part?????

How have they increased our priority in the queue?

How is this any different to a ‘first in, first served’ priority that we should all expect as normal decency?

How do they know that we should be of a higher priority – they don’t know who we are or what we want (yet).

These words are worse than throw away…they are infuriating, treating the human being (the customer) as some low intelligence life form who is expected to be pleased, puppy-like, with the words “you are important so we’ve bumped you up the queue.”

Important? No we’re not – if we were important you would have spare capacity in your contact centre so that you could answer your calls!

Bumped up the queue? No you haven’t – we are in the exact same place as before, only now we’ve been waiting longer whilst you’ve been attempting to answer all those calls above us!

Now, just to finish this up:

  • we heard that lovely message a further four times in the 20 minutes we waited. Fat good that increase in priority did!
  • Jonesy did get to have his rant at the call centre agent: I thought Jonesy was very restrained considering. He’s a nice polite English man;
  • we turned the TV off and consoled ourselves with cooking one humungous breakfast…’comfort food’ if you will…and it was good;
  • Stu wandered around the house, dazed, a broken man, looking a shadow of his former self;
  • we all spent the day with our fingers in our ears so that no one could tell us the score…and then reconvened in the evening to watch the replay;
  • ….consolation: England won!!! (commiserations to my Welsh friends)

So, what’s the point?

There’s a couple:

  1. Any company that plays at the customer service game (i.e. that doesn’t actually get it) thinks/acts as if the customer need starts with the customer attempting to make contact with them. In reality, the customer’s need can start hours, days, even weeks earlier. So much so that when that customer hears ‘that message’ it is soooo much more than a simple computer message…it is the devil!
  2. A computer message might be helpful…but it can also be incredibly harmful! Words that sound like marketing spin or, even worse, like you think your customer is a bit dim, are very likely to wind your customer right up, so much so that the poor customer service agent then has to spend some of that precious ‘handling time’ bringing them back down again!

We should be really careful about the use of those computer thingys when attempting to serve our customers.

Reorganised

5325139336_871c2e57b4“We trained hard – but it seemed that every time we were beginning to form up into teams, we would be reorganised.

I was to learn later in life we tend to meet any new situation by reorganising, and a wonderful method it can be for creating the illusion of progress while producing confusion, inefficiency and demoralisation.” (Petronius Arbiter, 65 A.D.)

Now, this isn’t suggesting that there isn’t a need to reorganise every now and then. It does signal the folly and pain of continual reorganisations dictated ‘from above’.

Another quote helps to put reorganisation into perspective:

“As tempting as it sometimes seem, you cannot reorganise your way to continuous improvement and adaptiveness. What is decisive is not the form of your organisation, but how people act and react.

The roots of Toyota’s success lie not in its organisation structures, but in developing capability and habits in its people. Anything unique about Toyota’s organisation structures…evolved out of them striving for specific behaviour patterns, not the other way around.” (Mike Rother)

i.e. develop the right environment, and a suitable structure will evolve….not the other way around!

It is far far better that you provide an environment in which:

  • the purpose of the system is clear (to you and those who perform it);
  • any/all ‘contingent reward’ management instruments have been removed;
  • your people are provided with visible measures of the capability of their system* (against its purpose); and
  • are allowed and encouraged to experiment with changes to their system, whilst observing the effects on its capability.

(* this is NOT numeric activity targets!)

In this way, it will be the people who will consider whether a change to the form of the current organisation is a valid countermeasure to experiment with and, from studying the outcome, whether to adopt, adapt or disregard this change.

The difference between:

  • management imposing a reorganisation on its people; and
  • the people suggesting, and trying, a change that will likely improve their system

… is the difference between chalk and cheese.

Proud…and excited!

businessman-432663_640The Oxford Dictionary defines the meaning of the word ‘proud’ as:

“Feeling deep pleasure or satisfaction as a result of one’s own achievements, qualities, or possessions or those of someone with whom one is closely associated”

i.e. If you are ‘proud’, it is essentially about yourself, even if it is about the actions of others that is making you feel proud.

What compelled me to look up this definition?

…because I find myself with feelings of (almost sub-conscious) irritation when I hear or read about leaders feeling ‘proud’ about what ‘their people’ have achieved (essentially for them) and I wanted to understand why I should feel this way…it was bugging me.

It seems obvious now that I have studied the dictionary definition.  For someone who isn’t, say, your parent to say “I am proud of you” is condescending. It suggests superiority.

It happens to be a phrase used often by command-and-control leadership towards their people.

I’m not really getting at the leaders who write or say it – they are trying to do their best to use ‘happy talk’ because they think this is good for us.  I am trying to point out to them the lack of humility and respect shown by using the word in their congratulatory phrases.

And ‘excited’? This is the other half of the dastardly duo. They always want to come across as ‘excited’ about what lies ahead in the vain hope that this will simply ‘rub off’ onto us….because, after all, that’s all that is necessary to motivate, isn’t it?

If you read an email, or watch a video (as I did) before the Christmas/ New Year breakup from your ‘leaders’ saying something like:

 “I’m proud of what we’ve achieved this year, in spite of the many challenges we’ve been through…and I am very excited about the opportunities ahead of us next year and what we can achieve….so have a relaxing break.”

…this could equally be translated as saying:

  • I am pleased that those of you who are still around (who didn’t leave or weren’t pushed) have put up with what we’ve done to you this year, and I got my bonus on the back of this….
  • …expect lots more stuff to be done to you next year (we’ve got loads of stuff in our heads to impose on you), and we will be holding you accountable for a set of stretching targets on brilliantly crafted personal objectives that will be SMART DUMB
  • Have a good break…because you are going to need it!

Does your organisation trust you?

fear-441402_640Wow, that’s a big hairy question! Let me use an old case study by Peter Scholtes to explain:

In the mid 1980s the management of an American company (The Falk Corporation) were working to understand the philosophy of W. Edwards Deming. They began to explore his 8th (out of 14) Management Point:Drive out fear, so that everyone may work effectively for the company.”

The company had a long history of adversarial relationships between management and employees. Whilst trying to grapple with this fear point they decided to consider its inverse, which they concluded was trust.

They then began to explore the issue of trust.

  • Do we trust our employees?
  • Are our employees trustworthy?
  • How can we develop and maintain an organisational environment that values mutual trust and respect?

They developed two lists of characteristics to describe a trustworthy employee and its converse. These lists looked remarkably similar to Douglas McGregor’s famous 1960s descriptions of Theory X and Theory Y assumptions about people.

They then came up with an estimate of how many of their employees resembled the trustworthy list and how many the untrustworthy. They concluded that at least 95% of their people were trustworthy.

They stood back and realised that their policies, practises and procedures were written for the 5% and were not compatible with Deming’s Point 8 of driving out fear.

They undertook to rewrite their policies with trust in mind.

Here is a wonderful example of one of their ‘before’ and ‘after’ policies’

Bereavement Leave (the old policy)

All employees shall receive time off with pay up to a maximum of three (3) days for working time lost if there is a death in the immediate family.

These days must be within a seven-calendar-day period, the first day of which would be the initial bereavement day paid. However, one of the days must be the day of the funeral. If the funeral falls on a non-scheduled workday (Saturday, Sunday, holiday, during a plant shutdown, or during a period of disability), no loss of pay is involved, therefore bereavement pay will not be made for such days.

Pay will be for eight (8) hours at the employee’s day rate plus average premium for the three (3) months prior to the month in which the time off occurred.

A part-time employee’s pay will be based on average hours worked in the previous month and will be at the employee’s day rate plus average premium.

An employee’s immediate family will be considered…spouse, child, stepchild, mother, father, sister, brother, stepparents, grandparents, and grandchildren of the employee; son-in-law and daughter-in-law; mother, father, sister, brother, and grandparents of the spouse.

Payment will be made by the company upon request by the employee to the personnel department.

The personnel department may require verification of death and relationship of the employee.

Bereavement Leave (the new policy)

If you require time off due to the death of a friend or family member, make arrangements with your supervisor.

The usage result? Bereavement leave usage under the new policy was only 47% of the days used under the old policy.

To be clear, the usage result wasn’t the purpose of the change, but it was a healthy side effect for the organisation – a win/win.

Conversely, if they had focused on a numeric KPI target to reduce bereavement leave usage, they would likely never have achieved such a major change, any improvement would have been unlikely to have lasted…and, in the long run, it may very well have become worse! This is because they wouldn’t have understood the cause. This links back to my earlier post on the folly of managing by results.

What about the link between trust and transparency?

Borrowing from a Hakan Forss post entitled: There is a reason why thieves and crooks prefer to operate at night

“There are organisations that have thrown away their control systems for controlling things like travel expenses. They at the same time made everyone’s travel expenses public. You may suspect that this led to higher travel expenses as everyone would travel in first class and stay at the most expensive hotels. But no, the results are the opposite.

Travel expenses often go down or stay the same. When everyone can see what everyone else is spending there is less room for the thief and crook behavior, because everyone can see it.”

He then goes on to deal with the issue of the potentially untrustworthy 5%:

“… but what if people are not making the right decisions. What if everyone travels first class and are spending like drunken sailors…then you as the leader have to lead by example. Show the organisation’s values, show the wanted direction. Don’t blame the people. Don’t create a control system. Show the direction and lead by example.”

We won’t change the reality that there is likely to always be one ‘black spot on a white page’ but, rather than designing a straight jacket for everyone, a better approach is for management to properly handle the 5%. Indeed, if we combined transparency with a clear organisational purpose and the sharing of the organisation’s success (I don’t mean incentives!) then policies will likely be self-policed by the group.

I like the concluding quote:

“Transparency is the new control system” (Jeremy Hope)

Now, to relate this back to a typical modern day organisation: I consider myself trustworthy, that I know to do the right thing but I also know that an untrusting (bureaucratic and controlling) environment seriously annoys me and may cause me to react accordingly.

Take expenses as an easy example:

  • If I am staying away from home and am trusted, I might have a nice meal out one night. I will then have a lesser meal the next night to compensate and keep my costs in balance. I accept that I need receipts and that someone could ask me about this, but I am comfortable that I have a reasoned response for my actions;
  • If management impose a controlling policy on me which prevents me making reasonable choices for myself (as in the above) and, instead, dictates a complicated and exacting policy along the lines of a daily limit of, say, $60 for breakfast, diner and drinks….then I might very well be tempted to ‘use all of my allowance every day’ as a reaction to the lack of trust being shown in me…even though I never used to get close to spending this much!

Whilst expenses are an easy example to demonstrate the trust and transparency point, I am sure many of you will have your own personal stories to tell about organisations you have worked in, their business policies and the effects.

DUMB

smartWe are all taught at an early age in our careers (i.e. ‘Management for dummies’) that we should cascade down S.M.A.R.T objectives. You will come across it as an idea that is so deeply rooted that it has been co-opted as ‘common sense’.

Sounds so good, it must be right, right?

Let’s just remind ourselves what SMART stands for:

  • Specific
  • Measurable
  • Achievable
  • Realistic
  • Time bound

Let’s then also remind ourselves about the definition of a system (taken from my earlier ‘Harmony or cacophony’ post):

“A system is a network of interdependent components that work together to try to accomplish the aim [purpose] of the system.” (W. Edwards Deming)

The cascaded objectives technique (known as Management by Objectives, or M.B.O) is used by ‘Command-and-control’ organisations in the mistaken belief that, if we all achieve our cascaded personal objectives, these will then all roll up to achieve the overall goal (whatever that actually is).

This misunderstands:

  • the over-riding need for all the parts (components) of a system to fit together; and
  • the damage caused by attempting to optimise the components…because this will harm the whole system.

A simple illustrative example (taken from Peter Scholtes’ superb book called ‘The Leaders Handbook’):

Let’s say that we run a delivery company – our system. Fred, Amy and Dave are our drivers – our people components. If we provide them each with SMART personal objectives cascaded down (and offer performance-based pay), we might assume that they will all be ‘motivated’ to achieve them and therefore, taken together, the purpose of the whole will be achieved. Sounds great – I’ll have some of that!

…but what should we expect?

  • Each driver might compete with the others to get the best, most reliable, largest-capacity truck;
  • Each driver might compete for the easiest delivery assignments;
  • Drivers might engage in ‘creative accounting’: such as trying to get one delivery counted as two; or unloading a delivery somewhere nearby where it can be made after hours so that they can go back to the warehouse to get more jobs;
  • If we have created a competition out of it (say, the getting of a desirable award) then we can expect to see little driver co-operation, more resentment and perhaps even subtle sabotage.

The above shows that the sum of the outcomes will not add up to what we intended for the whole system…and, in fact, will have caused much unmeasured (and likely immeasurable) damage!

This is a good point to bring out Eli Goldratt’s classic quote:

“Tell me how you will measure me and I will tell [show*] you how I will behave.”

* I prefer to use the word ‘show’ since most people won’t tell you! They know their actions aren’t good for the overall system (they aren’t stupid) and so don’t like telling you what daft practices the management system has ended up creating.

A critique of S.M.A.R.T:

“SMART doesn’t tell us how to determine what to measure, and it assumes knowledge – otherwise how do we know what is ‘achievable’ and ‘realistic’? It is only likely to promote the use of arbitrary measures that will sub-optimise the system.” (John Seddon)

If an individual (or ‘team’) is given a truly SMART objective then, by definition, it would have to have been set so that they could achieve it on their own….otherwise it would be unrealistic.

Therefore any interdependencies it has with the rest of the organisational system would have to have been removed…which, clearly, given the definition of a system means one of the following:

  • if all interdependencies had been successfully removed…then meeting the resultant SMART objective will be:
    • a very insignificant (and very possibly meaningless) achievement for the system; and/or
    • sub-optimal to the system (i.e. work against the good of the whole)

OR

  • if (most likely) it was in fact not possible to truly remove the interdependencies…despite what delicate and time consuming ‘word smith-ing’ was arrived at…then:
    • it will be a lottery (not really under the person’s control) as to whether it can be achieved; and/or
    • it will ‘clash’ with other components (and their supposedly SMART objectives) within the system

So where did the post title ‘D.U.M.B’ come from? Here’s a thought provoking quote from John Seddon:

“We should not allow a plausible acronym to fool us into believing that there is, within it, a reliable method.”

Consider     

  • SMART: Specific, Measurable, Achievable, Realistic, Time-bound

With

  • DUMB: Distorting, Undermining, Management-inspired, Blocking improvement

Does the fact that the acronym and its components ‘match’ make it any more worthy?

Cascaded personal objectives will either be ineffective, detrimental to the whole system or a lottery (outside of the person’s control) as to whether they can be achieved.

We need to move away from cascaded personal objectives and, instead:

  • see each horizontal value stream as a system, with customers and a related purpose;
  • provide those working within these systems with visible measures of the capability of the system as against its purpose; and
  • desist from attempting to judge individuals ‘performance’ and thereby allow and foster collaboration and a group desire to improve the system as a whole.

Making a wrong thing righter!

wrong-way-sign“The righter we do the wrong thing, the wronger we become. When we make a mistake doing the wrong thing and correct it, we become wronger.” (Russell Ackoff)

I’ve worked in a few companies over the years, both in the UK and NZ. One thing that I have noticed is what seems to happen with incentive schemes:

  • They start off as a supposedly great management idea to ‘motivate’ (!) employees to do better and are deliberately set up to be simple to understand and simple to operate;
  • After the first annual iteration, feedback is received about the incentive system and much is said about how it isn’t very fair (such as “how come he got a 4.3/5, yet my manager didn’t give anyone more than a 3” or “great, I get marked down for something I have absolutely NO control over” or….you can fill in the blanks!);
  • …so Human Resources are asked by management to go into redesign mode, make it more ‘sophisticated’ (read ‘complicated’), and release ‘Incentives 2.0’…which requires much effort to explain what has changed and why this now makes everything okay;
  • …and then next year yet more feedback is generated…which leads to yet more redesign. This redesign actually makes it;
    • more complicated – “how does it work again?”
    • more onerous – the need for evidence!
    • more inward focused – away from customer work; and
    • more difficult to explain and carry out;

This cycle continues until, if we were to allow ourselves the space to stand back, we would see an ‘industry’ of work surrounding the incentive mechanism, which most people intensely dislike* and mistrust.

* This isn’t a dislike of the eventual monetary reward, but of the game to be played to get there.

A sure sign of reaching such a state is when you see:

  • Fancy presentations/ brochures, and drop-in clinics/ help lines to explain the process;
  • A frenzied state of panic when ‘performance review’ time comes around (with managers ‘in town’ to judge you);
  • Corridor banter discussing what’s happening (“have you been ‘done’ yet?; what evidence did you gather?; if you scratch my back, I’ll scratch yours; how did it go”…again, I’m sure you can complete);
  • Management then having to perform meetings to compare/ contrast and ‘normalise’ the data…“so that it’s all fair”;
  • A feeling of resignation by the employees of “I’m not interested in what I get anymore….just as long as it’s about 66%, I can’t be bothered any further”;
  • Yet more corridor banter discussing who got what, how they feel and what they are going to do about it!;
  • De-motivated employees, instead of the intended motivation;
  •  …and, finally, HR asking for feedback on the process so that “we can make it even better next year!”

There is no ‘perfect incentive scheme’. You can’t keep going until you’ve ‘solved it’ simply for the fundamental fact that contingent rewards drive the wrong behaviours.

So, what am I saying – no money?

Absolutely not! I believe that we should all share in the success of our organisation. But contingent rewards are not the way to go about it.

Now, you may respond with “but that’s what our people are used to…we can’t take it away from them now!” I put forward the following quote:

“No matter how long you have been on the wrong road, turn back.” (Anonymous)

I could put forward a ‘share in the success of our organisation’ method…but that’s not the point. There will be many ways to do this…but first we need to see the need for, and accept, a change in direction.

Which pill is it?

red-pill-blue-pillAt the end of the ‘Improvement through Systems Thinking’ course I run, I facilitate a conversation about going back out into the real world. I use the ‘blue pill/ red pill’ Matrix analogy.

I got talking with one of my previous course attendees the other day…and neither of us knew whether it was blue or red we should be taking!…so, after looking up the script (thanks H)…here it is:

“You take the blue pill – the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill – you stay in Wonderland and I show you how deep the rabbit-hole goes.”

Just to confirm (in case you weren’t sure), I took the red pill some years ago!

We got to reading a few more quotes and, wow, I’d forgotten what a classic film that is, and how cool some of the quotes are.

__________________________________________

In respect of normative change:

“Sooner or later you’re going to realize just as I did that there’s a difference between knowing the path and walking the path.”

“I’m trying to free your mind, Neo. But I can only show you the door. You’re the one that has to walk through it.”

__________________________________________

On the dominant command-and-control management system:

“The Matrix is a system, Neo. That system is our enemy. But when you’re inside, you look around, what do you see? Businessmen, teachers, lawyers, carpenters. The very minds of the people we are trying to save. But until we do, these people are still a part of that system…you have to understand, most of these people are not ready to be unplugged. And many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it.”

Now, I’m not suggesting that corporate life and the matrix are directly comparable but I hope you see the well meaning intent in the comparison.

__________________________________________

And, finally, on showing people the reality of their command-and-control system, and helping them move towards a better (systems thinking) place:

“I know you’re out there. I can feel you now. I know that you’re afraid… you’re afraid of us. You’re afraid of change. I don’t know the future. I didn’t come here to tell you how this is going to end. I came here to tell you how it’s going to begin. I’m going to hang up this phone, and then I’m going to show these people what you don’t want them to see. I’m going to show them a world without you. A world without rules and controls, without borders or boundaries. A world where anything is possible. Where we go from there is a choice I leave to you.”

The ‘you’ in the above being the dominant command-and-control management system rather than any individual within.

Great film. Great quotes.

Harmony or cacophony

One more time…what is a system?

In the wonderful YouTube clip called ‘If Russ Ackoff had given a TED talk’ (from way back in 1994), we get a really clear explanation about what a system is and, more importantly, why this matters!

A recap from W. Edwards Deming:

“A system is a network of interdependent components that work together to try to accomplish the aim [purpose] of the system.”

“If the various components of an organisation are all optimised, the organisation will not be. If the whole is optimised, the components will not be.”

Dr Deming used to use the example of an orchestra to illustrate this point.

DSC_1637

  • A fine orchestra (the system) is highly interdependent;
  • The musicians (the components) are not there to stand out to the listener in a ‘look at me and what I can do’ manner…can you imagine the outcome of performance incentives – each musician being rewarded for playing faster and louder than the others! Such incentives are the source of cacophony that destroys value;
  • The musicians are there to support each other, to achieve the harmony that comes from the interaction of their specialised instruments adhering to the same fundamental rhythm, towards the same aim;
  • They are usually not ‘the best’ players in the country. They work as a team under the leadership of the conductor.

Another way of looking at this is that someone focused on the ‘efficiency’ of the orchestra would find them very inefficient – some of them are just sitting there waiting, tapping their feet! If the efficiency specialist would have their way, all the musicians would be playing all their instruments all the time!

Note that Deming considered a business to be even more interdependent than an orchestra and that, without real teamwork across the components, chaos is rampant.

It has been said that command-and-control companies get ordinary results after extensively searching, and fighting, for the limited supply of extra-ordinary people (what was coined as ‘the war for talent’ by McKinsey) whilst the likes of Toyota (and other ‘Systems thinking’ organisations) consistently obtain extraordinary results from ordinary people.

The point is that it is about optimising the system, not its components…and, to do this, we need to understand the obstacles that our current management system puts in the way and replace them with something better!

Anointing heroes

super-heroDr Deming’s red bead experiment simply yet brilliantly shows that, when we rate and rank people, we are mostly rating and ranking the effect of the system on the people.

“Apparent performance is actually attributable mostly to the system that the individual works in, not to the individual…the so-called merit system introduces conflict between people and destroys co-operation. Emphasis goes to achievement of rank, merit, not on the work…judging a person, putting them into slots, does not help them to do a better job.” (Deming)

To illustrate this point – compare two people performing two different roles:

  • If you give me a job (let’s say focused 100% on ‘improvement’) in which I can look good and am enabled to help people then, guess what, I’ll be their hero;
  • If you give me a job in which I have to ‘shovel the proverbial sh1t’ (let’s say as an over stretched ‘worker’ being asked to achieve the impossible) then, guess what, I will hardly be noticed….unless I’m not making my arbitrarily-set numerical activity targets…in which case I will be dealing with even more pain.

…who’s the real hero?!

I think anointing certain people as heroes because of what the system enabled them to achieve is a very unhealthy practise (for the supposed heroes’ and for the rest).

After explaining to a colleague how ‘the system’ has a huge influence over what someone can achieve, she made a really great ‘aha’ comment back to me:

It goes something like this:

“…that explains why I couldn’t work out whether that project manager working for me was any good!    

  • on one project he was superb: great communications, fantastic results on time/ within budget etc.
  • on another project he seemed terrible: nothing was going right, completely off track and seemingly no ability to do anything about it.

I now understand that I was judging him when, in fact, I should have been considering what the system was allowing him to achieve – the first project had a clear sponsor and much backing, the second project was an organisational orphan with difficult people and many historic issues, a virtual hospital pass!”

I am a mathematician at heart and Dr Deming used a wonderful formula to explain the above…bear with me:

  • Let x be the contribution of an individual
  • Let y(x) be the effect of the system on his/ her performance
  • Finally, let’s suppose we could measure the complete result of a person’s performance – a dubious idea in itself….but for the sake of this post, let’s suppose we have a number for his/ her apparent performance, such as 8 mistakes in the year or sales of $800,000.

Then we have the equation        x + y(x) = 8

(i.e. the individual’s contribution combined with what the system enabled him/ her to accomplish will determine the outcome s/he can achieve)

Deming goes on to explain

“To rate the individual we need to know x. Unfortunately, there are two unknowns and only one equation. Johnny in the sixth grade knows that no one can solve this equation for x.

Yet people that use the merit system think that they are solving it for x. They ignore the other term y(x), which is predominant.”

Now, a standard response to the above from people working in a command-and-control system is as follows:

“…but some people really are rubbish and/or lazy… and the above allows them to use the ‘it’s the system’ thing as an excuse!”

A couple of thoughts back:

  • If someone isn’t capable of performing the role they are being asked to perform, then:
    • are we failing to develop them into this role? or, if we’ve (truly) done what we can here;
    • have we incorrectly put them into this role?
  •  If someone hasn’t got any interest in their role, then:
    • has this been ‘beaten out of them’ by the system? (a very common reality) or, if not;
    • have we misunderstood or, worse, not (properly) considered what motivates this person?

Rating and ranking them ignores and hides the above. It tries to make it their problem….but who is responsible for the environment in which they work?

The difference between…

tree+bookA short and, hopefully, light hearted post for you:

For those of you who have been on an improvement course with me you will know that I start off by saying that it isn’t a training course, it is about education (with the same being true about this blog).

I use Deming’s quote of:

“We’re not here to learn skills; we’re here for education – to learn theory.”

If you are uncertain about the difference between training (learning skills) and education then I think Alfie Kohn (leading education psychologist) makes the distinction  really clear with the following:

“Would you want your kids to be provided with Sex Training or Sex Education?”

…I don’t think I need to say anymore to explain that!