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4/14/2010

Psychology – Maslow’s Hierarchy

In the previous post I introduced the concept of psychology that Deming uses as one of the four tenets in his System of Profound Knowledge. I also included Machiavelli's quote warning of the challenges that one will face when undertaking a "new order of things". Two groups, outright enemies and lukewarm defenders, will emerge during the change to the new system, whatever that system may be. Identifying and addressing these groups early and often is the best way to move each individual into a more accepting position of the change that is about to happen.

Maslow's Hierarchy of Needs can be used to help identify and address the concerns of each individual. Maslow began with five basic needs, and then expanded his list to eight needs. For now, we'll focus on the first five needs, which are:

  • Physiological needs deal with the maintenance of the human body.
  • Safety needs address putting a roof over our heads and keeping us from harm.
  • Belonging needs address our tribal nature (the need to feel like we are part of a group).
  • Esteem needs are for a higher position within a group.
  • Self-actualization needs are to 'become what we are capable of becoming', which would our greatest achievement.

Some of the questions that begin to arise when change approaches need to be addressed by leadership. If these questions (and their underlying needs) can be reasonably answered by the leadership, the chances of success in a change are greatly improved.

  • Safety: Will I still have a job? How does it affect my pension?
  • Belonging: Will I have to move? Will my team survive?
  • Esteem: Will my social status change? Will I have less influence?
  • Identity: What does this mean about who I really am?

 

What has been your experience with implementing change in your organization? What have some of the biggest questions from employees that you've had to address?

Posted at 9:23 AM by Tim Monroe | Category: Deming's System of Profound Knowledge | Permalink | Email this Post | Comments (0)

2/24/2010

Deming’s SPK – Knowledge of Psychology - 1

 

The last area that Deming addresses in his System of Profound Knowledge is psychology. I'm jumping ahead to this portion not because I believe it is more important than the other parts, but that it is more applicable, even if you chose not to use the other parts as extensively as this one. Don't worry, we'll address the other two parts later. For now and over the next several posts, we'll be focusing on psychology. The Random House dictionary has multiple definitions for psychology: (1) the science of the mind or of mental states and processes and (2) the science of human and animal behavior.

Deming's entire focus was set upon the goal of instituting a "new order of things", specifically the way leaders (i.e., managers) run their business from the employee's perspective. Because he was focused on changing the system and instituting a new way of managing, I sure he was aware of Niccolo Machiavelli's famous dissertation on the perils of the undertaking.

"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. For the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order, this lukewarmness arising partly from fear of their adversaries … and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual experience of it."

Even with the caveat of Machiavelli staring you, as a leader, in the face, Deming commands that you, by virtue of your authority, "has the obligation to make changes in the system of management that will bring improvement." Machiavelli identifies 2 groups that a leader must address: (1) those who profit from the old order who he calls outright "enemies" and (2) those who would profit by the new order who are lukewarm defenders at best.

In my experience, the enemies are usually the seasoned veterans of the organization who helped create the current "way we do things" and are happy with the way things work. Most of these organizations operate on the basis of "knowing who to contact to get things done", regardless of the formal policies and procedures that have been put in place. The lukewarm defenders are usually the relative newcomers to the organization that challenge the "that's just how we've done it" attitude. While they may not have all the answers about what will work and what won't work in the "new order" they are at least willing to try some new things.

Over the next several posts we will discuss different groups of enemies and lukewarm defenders and discuss some tools on how to manage each of these groups.

What has been your experience with enemies and lukewarm defenders? Post a comment and let me know.

Posted at 9:28 PM by Tim Monroe | Category: Deming's System of Profound Knowledge | Permalink | Email this Post | Comments (0)

2/18/2010

Deming’s System Boundaries & Aim

In the last post, the concept of a System and the key concepts of a System were introduced. Topics to address regarding a System are (1) the Boundaries of a System, (2) Defining the Aim and last but definitely not least is (3) Optimization of the System. Let's look at each of these in a bit of detail.

Boundaries of the System: In The New Economics for Industry, Government, Education, Dr. Deming states "The boundary of a system may be drawn around a single company, or around an industry, or the whole country. The bigger the coverage, the bigger be the possible benefits, but the more difficult to manage." Keeping in mind that the aim of a system is to "become competitive, stay in business, and to provide jobs", system optimizers must decide where to draw the boundaries of the system using the classic "risk versus reward" mindset.

A recent example of "drawing the boundaries" around an entire industry is the current initiative regarding the U.S. Healthcare System. The Executive and Legislative branches of the U.S. Government decided to draw the boundaries of the U.S. Healthcare System around the entire industry. A short, and definitely not comprehensive, list of system stakeholders includes the American public, physicians, hospitals, urgent care clinics, insurance companies, government entities (Medicare, Medicaid, etc.), and various other players in the industry. While the reward of having "affordable healthcare for everyone" is a great social benefit, the current strategy to reform the entire system all at once appears to be too large of a task for the system reformers at this time.

Defining the Aim of the System: Deming states ""It is important that an aim never be defined in terms of activity or methods. It must always relate directly to how life is better for everyone. . . . The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment."

Extending the discussion of the current healthcare reform initiative, I believe the "aim" of the U.S. Healthcare System is accurately described for the most part in H.R.3962 - Affordable Health Care for America Act, the bill passed by the U.S. House of Representatives. The bill's aim is "To provide affordable, quality health care for all Americans and reduce the growth in health care spending, and for other purposes." This aim clearly and concisely states the desired outcomes of the U.S. Healthcare System. The first 17 words of the purpose are well written, however, the last 4 words provide a level of ambiguity that I'm sure Deming would not approve of. While the American public and those elected to represent us in Washington, D.C. may have very different views on "how to achieve this aim", the aim as stated, with the exception of the last phrase, is well written in my opinion.

The next post will focus on "Optimization of the System". That topic deserves a bit more space and time than I have right now in this post.

Let me know what you think about the boundaries and aim of a system by leaving a comment.

 

Posted at 9:27 AM by Tim Monroe | Permalink | Email this Post | Comments (0)

2/1/2010

Deming’s System of Profound Knowledge – Appreciation of a System

In a previous post, the concept of the System of Profound Knowledge was introduced. The first part of the System of Profound Knowledge (SPK) is an "Appreciation of a System". Appreciating a system is an understanding of the overall processes involving suppliers, producers, and customers (or recipients/consumers) of goods and services. Deming's simplistic but insightful model of a system is shown below.

In The New Economics for Industry, Government, Education, Dr. Deming formally defines a system as "a network of interdependent components that work together to try to accomplish the aim of the system. A system must have an aim. Without an aim, there is no system. The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment." Examining the two key concepts ("interdependent components that work together" and "the aim") is it evident that all the different components must work cohesively with one another to accomplish a common goal (the aim).

The first of Deming's 14 Points for Management – "Create constancy of purpose toward improvement of product and service, with the aim to become competitive, stay in business, and to provide jobs" - supports his definition of a system and the concept that a system must have an aim. The most important part of the system is the "feedback" into the system based on the customers' feedback because this is how the aim is determined. This allows the suppliers and the process performers to continually optimize the inputs and outputs based on customer's needs and desires.

Systems may have multiple "aims". Rarely will a system only have one aim. As an example, an electric utility company may have a desire to deliver power to its customers with no interruptions. However, this level of reliability requires a given level of cost to the customer. Because customers want reliable power as cheaply as possible, a balance must be established between the cost the customer is willing to pay and the level of reliability that can be delivered. The ultimate goal of any Process Improvement team is to identify as many of the aims as possible, then utilize various tools to optimize each of the aims simultaneously. Additional topics that need to be addressed with the Appreciation of a System are (1) the Boundaries of a System, (2) Defining the Aim and last but definitely not least is (3) Optimization of the System. Each of these topics will be addressed in future posts.

 

 

Posted at 10:06 PM by Tim Monroe | Category: Deming's System of Profound Knowledge | Permalink | Email this Post | Comments (0)

1/13/2010

W. Edwards Deming’s System of Profound Knowledge

The following is a brief excerpt from Deming's book The New Economics for Industry, Government, Education, second edition describing the basics of the System of Profound Knowledge.

"The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside. The aim of this chapter is to provide an outside view—a lens—that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in.

"The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people.

"Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to. The individual, once transformed, will:

  • Set an example;
  • Be a good listener, but will not compromise;
  • Continually teach other people; and
  • Help people to pull away from their current practices and beliefs and move into the new philosophy without a feeling of guilt about the past.

Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts:

  1. Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services (explained below);
  2. Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;
  3. Theory of knowledge: the concepts explaining knowledge and the limits of what can be known;
  4. Knowledge of psychology: concepts of human nature.

 

Over the next few months I will be adding posts to discuss the four parts of the System of Profound Knowledge. Do you think Deming's SPK is applicable to today's business environment? I would love to hear your thoughts and opinions.

Posted at 2:16 PM by Tim Monroe | Category: Deming's System of Profound Knowledge | Permalink | Email this Post | Comments (0)

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