Tag Archives: system

Not About Trying Harder

“You were right,” Byron admitted. “I took a look at the system. The ten percent reject rate was caused by a small burr on a threaded plastic part. The part didn’t seal right and the cylinder wouldn’t hold the pressure.”

“So, your team could have worked harder, stayed longer, given it all their might and the reject rate would have stayed at ten percent?” I floated.

Byron nodded. “I was sure it was the team. I am actually sorry I yelled at them. They just seemed down in the dumps, lackadaisical, you know, unmotivated.”

“Why do you think they were down in the dumps?” I pressed.

“Probably my fault. They were, in fact, doing their best. I thought their best wasn’t good enough. I was too quick to lay blame. In the end, it was my fault. I ordered some surplus parts from another vendor. Our original supplier was so good, we only sampled one in a hundred parts in receiving, they were always good. The new vendor parts had a 50 percent failure rate, but the samples we pulled, one in a hundred, didn’t pick up they were out of spec half the time. It was the system that allowed the failure rate.”

“And, whose system was that?”

Byron almost choked, but managed to get it out. “Mine.”

The Value of a Stern Lecture

“We are still missing our targets,” Byron said, shaking his head. “My team just doesn’t seem to be able to do what is necessary. We produce enough in volume, but our reject rate is ten percent.”

“What are you going to do?” I asked.

“I don’t know. We have been over and over this from the beginning. I even tried a stern lecture.”

“Are they doing their best?” I prompted.

“Yes, I believe they are doing their best.”

“They are doing their best, with full commitment?” I pressed.

“Yes,” Byron nodded.

“Then, you have to look in the mirror. You picked the team. You provided the training. You provided the tools for the team to use. You provided the materials, the process, the work instructions. You provided the inspection methods. You control all the resources around the work. You are accountable for the ten percent reject rate.”

Progress

“Does it ever end?” Conrad shook his head.

“How so?” I asked.

“First, I was dealing with Joe. Joe was weird. It took me a while to figure Joe out. And, finally, when I did, Fred came on the team. Not only did I have to figure out Fred, but now I had Joe AND Fred to deal with and how they work together. I finally get Joe and Fred in hand, then Sally came along. I have three individuals and six working relationships if you don’t count me.”

“That’s it?”

“No, that’s not it,” Conrad replied. “I now have eight people on the team. We finally figured out the best sequence, created a system in which to do the work. I thought I had it all figured out.”

“So, what happened?”

“We had the system working well, when we determined there was more than one system, lined up side by side. We have a marketing system, a sales system, a project management system, purchasing system, an operations system, quality control system. And, these systems no longer worked independently, they impacted each other with work handoffs and capacity mis-matches.”

“What have you learned, so far?” I wanted to know.

Conrad smiled. “As time goes by, you get to trade in one level of problems for another level of problems.”

“And, that, my friend, is progress.”

Out of Sequence

“I’m having a tough time with my team, struggling to meet the project expectations I set for them,” Sheila explained. “It seems they have different interpretations of the project deliverables, a bit of confusion, making it difficult to nail down accountability.”

“So, tell me what you told them?” I said.

“We had a team meeting about the project, making the message consistent to everyone on the team, so, I’m not sure how people got off track. I’m not even sure how what they are thinking, I just know each of them has a different take.”

“How so?” I pressed.

“It looks like everyone started at a different place in the sequence. This is a linear project with specific steps, one after the other. But, one person is starting on step three and another on step eight. They told me they were trying to think ahead, so when we got to that step, it would already be done.”

I wasn’t skeptical, but wanted to more detail. “And, the problem is?”

“Step three depends on the outcome of steps one and two, it’s a dependent step. We might even be able to skip step three depending on how steps one and two turn out.”

“And, I am sure you clearly described this?” I smiled.

“No, I just assumed the team would figure that out,” she explained.

“So, if you had to do the meeting over again, what would you, as the manager, do differently?”

A Process and a System

From the Ask Tom mailbag:

Question:
What’s the difference between a process and a system?

Response:
A process is the way we get something done. A process is a shift from the haphazard, often the backbone of a discipline or a set of instructions. A process can take the form of a checklist, often has an order or sequence to its steps, like do this first, then do that.

A system is more robust than a process. A system has a defined start and a finish. A system also has a series of steps, but there are different relationships between the steps. In a system, some steps can be done at the same time (concurrent steps). Some steps depend on other steps to be completed first, before the current step can begin (dependent steps). Some steps run at different speeds and can bottleneck other steps (constraints). Some steps may only be required under specific conditions (conditional steps). Some steps may loop back to previous steps and repeat (iterative steps). A system looks at specific conditions, finds the similarities and, by treating them the same, produces a consistent outcome. A system looks at specific conditions, finds the differences and, by treating them differently accommodates a range of variables.

Looking at levels of work, a process may more accurately be used at S-II, while a system is more likely required at S-III.

Midst of Created Chaos

“How do you involve Edmund in the decision making about solving the problem?” I asked.

“As soon as we have the project specs,” Ruben explained, “when we know the outputs and the deadlines, we call a meeting. Edmund is the supervisor, so once we get into production, he is the one to call the shots. So, he is there, at the meeting. He sees all the elements we see, he just cannot connect them together.”

“And?”

“We have developed a very thorough system that identifies the constraints and keeps them productive. The metrics are easy to follow and the system makes our throughput very predictable. But Edmund fights the system, ignores the system and almost weekly causes a production snafu that could have been prevented.”

“How does he explain the snafu?”

“Usually he manages to jump in and pull the project out of the fire, but not without some overtime and not without putting the project in jeopardy. It’s almost like he is proud of the chaos and being the hero.”

Out of the Chaos

“Managing 20 projects is different than managing three projects,” Andrew repeated. “And, it’s not just that there are more things to do.”

“How so?” I wanted to know.

“When, you have 20 simultaneous projects, you have to look for patterns. In each of the 20 projects, what is the same and what is different? There is no sense solving the same problem 20 times, when you can solve it once.”

“What else?”

“Every project has a start-up phase, mobilization. Every project has a conclusion, substantial completion, punch out and close-out. And, every project has interior milestones. So, there are patterns to find.”

“And?”

“And, if you recognize these patterns, you can build a system, a schematic, a flow chart that gives you a visual understanding how the components go together. In some cases, things become predictable, a natural sequence emerges. Some things can be done simultaneously, some things have to wait until something else is finished.”

“So, that’s the external stuff. What’s going on with you. What’s the inside story?”

Andrew stopped, looked down, then up. “Do I have what it takes. In the middle of the frenzy, will I get caught up in the weeds? Or will I have the fortitude to step back from the chaos and make mental sense of the noise?”

You Won’t See It Coming

His brow furrowed. Lawrence had to concentrate to understand. “But I thought a manager was supposed to manage. I thought I was supposed to manage everything on the floor.”

“You’re not a supervisor anymore,” I said. “Your new focus, as the manager, is on the system. Your role is to create the system and make the system better. When you became the manager, you promoted Nicole to be the supervisor. Whenever you do Nicole’s job, you are not paying attention to the system.”

“I thought I was just trying to help,” defended Lawrence.

“And if you continue to help by doing Nicole’s job, you will continue to ignore the system, and you will fail as a manager.”

“Not sure I know what you mean,” challenged Lawrence.

“Nicole is busy scheduling her team around vacations, people calling in sick, having doctor’s appointments and such. That’s her job.

“As the Manager, you just received a revised a production forecast from sales. Three weeks from now, you historically ramp up into your busy season. I looked at your headcount from last year. You are down three people and Charlie just gave notice, his last day is Friday. Everything looks fine, now, but four weeks from now, your production is going to get slammed and Nicole won’t have enough people to schedule from. As the Manager, you have to look ahead and build your labor pool. Now.

“If you are too busy scheduling this week’s production, you will be so far in the weeds, you won’t see what’s coming down the road in four weeks.”

The Glory of Chaos

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From the Ask Tom mailbag-

Question:
You said a growing company has to slow down and describe the work. You nailed our company – we miss deadlines, too much rework, a warranty claim, turnover, morale is tense, managers are nervous. Yet, we have more incoming work than we can handle. And all you can say is – we need to slow down and describe the work?

Response:
Or you can stay in the chaos. Somehow, you will manage to get through the day. You will settle your warranty claim, but the tension will remain.

You cannot work faster, harder or longer to solve this problem. You have to re-trench. This is fundamental blocking and tackling. It starts with describing the work in the role, documented in a role description (fundamental blocking and tackling).

A project manager with three projects is level (II) work. The work is coordinating and scheduling all the elements of the project. There is level (II) decision making and problem solving.

A project manager with 50 projects is level (III) work. It requires a system and a team. The decision making is not about project management. There are too many projects. The decision making is about the system of project management. The problem-solving is not about project management. The problem-solving is about the system of project management.

Or, you can stay in the chaos.

Is the COO Irrelevant?

From the Ask Tom mailbag –

Question:
I read your book, Outbound Air, again.

And I was thinking there might be a conflict with trendier/newer business models. A lot of companies seem to be pushing flatter structures and mixed function work-groups. So there isn’t really a role for COOs as say, the CEO’s internal quarterback

My understanding is that COOs exist to corral the various functions i.e. highest timespan
while the CEO is dealing with strategy, major threats etc.

So does the timespan model change for these flatter-structured businesses where the COO is supposedly irrelevant?

Response:
Elliott’s response to a similar question goes like this –
“I hear these things, and I just have to ask, who is kidding whom?” It is not that the role of the COO disappears, but it is certainly different.

Small Organizations
First, many organizations (small ones) are not level (V) organizations in the first place. Indeed, many companies are level (III) organizations, so they have production, supervision and a CEO, who really plays the role of a level (III) manager. Nothing wrong with this small company, the CEO can make a wealthy living out of it.

Growing Organizations
As the company grows, the level of work will necessarily increase to level (IV). There are multiple functions (systems) inside the company that must be integrated together. Again, the CEO in a level (IV) company will play the role of the integrator. In a larger, more mature company, this would be the role of the COO.

Maturing Organizations
In a level (V) company, the CEO must leave the integration role and truly focus on strategy. Without an effective COO at level (IV), the CEO will necessarily be dragged down into the weeds (back into integration activity). And, as long as the CEO is doing work at level (IV), the company will not grow, likely grow and contract in fits and starts, never effectively integrating their multiple systems. Yes, it is possible to have a dysfunctional level (IV) organization.

Digital Technology
Over the past two or three decades, technology arrived. Indeed, computer systems (note the word system) supplant many level (III) functions. MRP and ERP software systems, in their algorithms, require very specific steps in specific sequences, level (IV). The algorithms were created by some very smart teams who created systems and system integration in a variety of disciplines.

However, with effective technology implementation, the managerial work changed. So, let me pose this question. If we have a technology platform that serves to move data between multiple functions in the company, integrating those functions together, a level (IV) role, then what is the work of the COO?

Here is a hint. Work is decision making and problem solving. In the presence of an effective ERP system, what decisions are left to be made and what problems are left to be solved by the COO? There is an answer to that question.

Your thoughts? -Tom