Friday, January 29, 2010

Management Lessons from Srimad Bhagvat Geeta

We have read and heard about the “”warriors” who would waste your energy. They would also create all kinds of distraction (Physical, Psychological, or any other means). Let’s discuss now to work around and succeed without wasting energy to identify and defeat these warriors without shedding any blood. The solution lies within us. When we are getting distracted we are not because of noise factors outside. The story of deaf frog in my earlier blog should reiterate this.
The key lies in converting ourselves and our abilities that can enable us to focus on what we want to achieve.

You must take personal responsibility. You cannot change the circumstances, the seasons, or the wind, but you can change yourself.
Jim Rohn
41. “On this auspicious path, O Kurunandan (Arjun), the resolute mind is one, but the minds of the ignorant are divided and many.’’

The most important step towards this would to build a mind which is earnestly and firmly oriented to selfless action towards the goals that has been set. If we have to compare with those who propagate more than one mode of action, we must observe at the dilemma they constantly enter into. The minds of such employees are endlessly divided and that is why they conjure up endless ways. This is often visible in form of confused state of functioning by such employees.
It is these employees who tend to blame every one else for their failures. I am reminded of statement from the book The Success Principle by Jack Canfield, the co-author of Chicken Soup for the Soul
Quote:
In fact most of have been conditioned to blame something outside of ourselves for the parts of our life we don’t like. We blame our parents, our bosses, our friends, the media, our coworkers, our clients, our spouse, the weather, the economy, our astrological chart, our lack of money – anyone or anything we can pin blame on. Wee never want to look at where the real problem is – ourselves
Unquote


47. “Since you are entitled only to the performance of action but never to the fruits thereof, you should neither desire rewards of action nor be drawn to inaction.”

This is most misunderstood or misinterpreted part of the text from Geeta. The word karma means both action and its consequence. We should not worry about the fruits that we would get. Consequence here is with reference to the user of output of the processes that we manage. In my view its fits in with process approach to management where the belief is that OUTPUT is result of your PROCESSES and INPUTS. The concepts of Process Approach to Management include:
  1. Focus on the Inputs criterion and quality
  2. Focus of the Process controls and factors that lead to Process Management. They are
    1. Rules of the process
    2. Methods (Steps) deployed
    3. Skills and experience of the people managing/ executing the process
    4. Facilities and equipments provided for the process.
  3. Understand consequences of errors and omissions in following the process. This would need to be understood from end user perspective whether a final customer or internal customer.
The characteristics of KARMA as described are
  1. Initial trigger of action is indestructible. Once it is initiated, we would not be able to eliminate the same. (The Chinese proverb “Journey of 1000 miles begins with the first step” is true) Having taken the first step it is not possible to erase the footprints left.

  1. Any flaw in action will never abandons us
  2. Performance of this action, even in small proportions, can give us great amount of confidence and motivation.

What you get by achieving your goals is not as important as what you become by achieving your goals.
Zig Ziglar

Monday, January 11, 2010

Future Directions in Quality Journey – Some Views

Quality as a profession has evolved over a period of time. In prehistoric period Quality was practiced in form of the regulatory requirement. Hammurabi Code is known for the punishment to be met out by the builders/ masons if the house collapses and the people residing in the house suffer injury or death.

  1. Evolution is a process that is characterized by
  2. Variation
    or change in more generic sense

The selection of variant that is most suitable and follows the principle of Evolution namely "Survival of the Fittest"

Quality journey in formal sense became necessary with industrialization. The era before mass production was characterized by the individual artisans, who managed the quality of their outputs by themselves. The initial methods of managing Quality were driven by INSPECTION and were controlled by profession that we know as Inspectors/ Testers etc. This new role actually created significant divide between the role of producer and the inspector. This divide is visible even today in many organizations and eliminating this divide is one of the biggest change management exercise for the Quality Professional.

The usage of statistics is the scientific community was well known. The tools used by the researchers crept into the organizations to manage business processes. These got formal name of Statistical Quality Control (initially used primarily by Inspectors) and then came Statistical Process Control (expected to be used by the Process Owners and Operators).

In the 1920's Shewhart introduced the concepts of statistical quality control. Statistical quality control provided the foundation for understanding and reducing variability through application of statistical theories. SPC tools provided the ability to ensure that processes and variability were controlled to provide consistent high quality telephones and networks for Western Electric and AT&T.

Dr. Deming provided the management philosophy of his theory of profound knowledge, and his 14 points, which were quite radical in his day

The process orientation led to think in terms of using tools to improve

  1. Effectiveness of the Process
  2. Efficiency of the Process.

The lack of above is expressed or reflected as problems in the operations.

The analysis of processes led to concepts of Business Process Reengineering. BPR Focused on making the business processes meaningful and eliminates unnecessary steps / activities. The concept emerged strongly later with Lean Methodologies.

On the productivity Side, in the first part of the 20th century Henry Ford introduced the Ford Production System, which provided the ability to mass-produce a Model T Ford in any color the customer wanted, as long as it was black. The Ford production system was the basis for the Toyota Production system. The Toyota Production System emphasized employee learning and empowerment for the first time. In the 80's, Just-in-Time principles arose as an off-shoot of the Toyota production system. The focus on JIT was to pull supplies and components through a system to arrive where and when they are needed.

As the Toyota Production System and JIT evolved and coalesced into Lean, the philosophies of TQM and the statistical theories of SQC evolved into Six Sigma.

Lean starts with an external focus on supplying the customer with exactly what the customer wants when they want it, through the value chain.

Six Sigma captured the voice of the customer and critical to quality characteristics, a rigorous and structured problem solving methodology, as well as a formal knowledge and tool belt structure, focus on the bottom-line impact of process improvement, and measurement and metrics.

Information Technology has evolved along with the management philosophies and problem solving tools, going from stand-alone software packages, with non-integrated modules, such as the financials, separate from MRP, separate from engineering, process, and production data, as well as customer information. ERP evolved to integrate the wide spectrum of processes and information that wasn't possible in the MRP and MRP II days.

Integration of Lean and Six Sigma enhanced the focus on eliminating waste AND reducing variability at the same time. Supply Chain concepts and tools have integrated the value chain with the information chain.

Further integration of the supply chain with lean six-sigma is already being most talk about concept today. This will lead to focus on improving up and downstream through the supply chain with the suppliers and the distributors.

TQM - Total Quality Management became huge in the 80's and 90's, and was the formulation of many of the quality guru's management philosophies, including Deming, Juran, Crosby, and Feigenbaum.

It was light on statistical tools and problem solving methodology and left that almost to chance, but provided for employee involvement, team-based brainstorming and problem solving, employee empowerment.

Innovation:

Innovation has remained part of Human Evolution in different form. Use of wheel and fire for enhancing quality of life is an example of early innovations.

Innovation as an economic concept includes development of new:

  • Products and services (Ginger Hotel Chain)
  • Methods of production or provision (Cellular Manufacturing concept)
  • Methods of transportation or service delivery (ATM)
  • Business models (Crowd Sourcing and Social Networking Platform for business)
  • Markets
  • Forms of organization

Stereotypically innovation is considered a product of genius, a flash of light. However, the practitioners have evolved systematically planned and organized innovations.

Future of the Quality Tools

Tools:

Tools developed and evolved can be classified in broadly two categories

  1. People Centric

    These tools have evolved and become stronger due to

  • Availability of better skills
  • Aspiration of more skilled employees to be part of improvement journey
  • Most employees reaching and striving for higher level of Maslow's hierarchy of motivation
  1. Data Centric

    The tools here were largely through statistics and application of statistical approaches. Initially it was largely Bayesian statistics and later the inferential statistics become stronghold. This is becoming stronger with quantity of data that is available now for studies.

    It was easier to implement largely due to availability of skilled manpower and also availability of software that assist in using these tools easily.

Some direction on specific areas could be

  1. Six Sigma
  • Reduction in Cycle Time as project area is most common and is considered to be most beneficial to the customer and industry
  • Inclusion of Vendor's organization in Six Sigma Projects
  • Integrating Six Sigma with other initiatives
  • Restructuring of time allocation within the DMAIC and PDCA Structure
  • The Impact of Technological Advancements
  • Modeling Tools
  • Impact of Global Recession
  1. Open Source Innovation
  2. Quality Tools Deployment would be through automation and also building AI / Neural Network concepts
  3. Documentation of learning and project would become a specialized skill

Challenges in Quality Management

  1. Larger base of knowledge and data
  2. The pace at which the options are available to consumer
  3. The fast pace life of consumer and hence changes in demand at high speed

    The challenges in general can be detailed as below:

    Ever Demanding Customers

    Increased options and greater knowledge on the product life cycle has definitely led to ever increasing demands.

    Shifting Customer Value Perception

    The life of a value perception is shorter as the product life itself is coming down. The new products introduction, which used to take years, now takes months. The value perception is also frequently subjected to changes due presence of strong media and internet that provides faster information about product and businesses.

    Increasing Economic Pressures

    Generally demand on all resources has increased sharply. The pressure on organization to perform at higher level is increasing. The organizations performance is being micro viewed by the investors in short run. In fact long term has become either obsolete or the period of long term has come down significantly.

    Reduced Control over Data and Information

    With internet and computerization, the access and availability of data is relatively easier. RTI has further changed the dimension of the data availability for any analysis and working.

    Recognition of Softer Issues in Business Process

    With growth in the knowledge of the worker, and the trend of businesses becoming more knowledge focus, the management processes calls for looking into softer issues of Human Relations within and out of the Business Processes. In early part of 20th century Ford wanted only two hands and two legs, but today organizations want the matter above the shoulder more importantly than the limbs. This has definitely forced organization to look into the softer side of human management. The human resource management moved from treating human as another article to a resource that can contribute and enable better utilization of other resources.

    Risk Based Management Approach

    Risk based management approaches emerged more strongly towards the end of the 20th century and is becoming stronger area of specialization and focus for business entities. While initially the risk was associated only with finance management, but today the risk based approach has been extended to management of Product Development, Process, Employees, Environment etc.

    The risk based approach itself has moved from being subjective to an objective evaluation of the risk.