Edward De Bono

QUOTES
Perception is real even when it is not reality.
If you do not design the future someone or something else will designit for you.
We may need to solve problems not by removing the cause but by designing the way forward even if the cause remains in place.
Traditional thinking is all about "what is;" Future thinking will also needto be about what can be.
Effectiveness without values is a tool without a purpose.
'Nothing' is the space for everything.

http://www.edwarddebono.com/Default.php 

Deming

The prevailing style of management must undergo transformation. A system can not 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
Help people to pull away from their current practice and beliefs and move into the new philosophy without a feeling of guilt about the past

The layout of profound knowledge appears here in four parts, all related to each other:
Appreciation for a system
Knowledge about variation
Theory of knowledge
Psychology

more

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detailed analysis of everything from customers' desires to the decision-making process itself, which is often fraught with erroneous assumptions.While analysis is unquestionably a staple of most businesses, that which increasingly distinguishes the winners from the losers in our information-laden world is the incisiveness of the analysis. In the competition for global markets, the Japanese outanalyzed the United States, then mustered the corporate willpower to find better and more efficient ways of acting on their conclusions. They were able to do this in part because an understanding of variation and the concept of continuous improvement gave every member of the company a common focus when discussing problems and changes.

The Fourteen Points are, in fact, based on the following six principal ideas that will be illustrated in the upcoming chapters:
1. Quality is defined by the customer. Improvement in products and processes must be aimed at anticipating customers' future needs. Quality comes from improving the process, not from "inspecting out" the shoddy results of a poorly run process.

2. Understanding and reducing variation in every process is a must.

3. All significant, long-lasting quality improvements must emanate from top management's commitment to improvement, as well as its understanding of t~e means by which systematic change is to be achieved. Improvement cannot come merely from middle managers' and workers' "trying harder." Neither quality improvement nor long-term profitability can be achieved through wishful thinking and arbitrary goals set without consideration for how they are to be achieved within the context of an organization's process capabilities.

4. Change and improvement must be continuous and all encompassing. It must involve every member in an organization, including outside suppliers.

5. The ongoing education and training of all the employees in a company are a prerequisite for achieving the sort of analysis that is needed for constant improvement.

6. Performance ratings that seek to measure the contribution of indual employees are usually destructive. Given a chance anagement, the vast majority of employees will take e in their work and strive for improvement. But _ "':ormance-ranking schemes can impede natural initiative.- one thing, by their very nature they create more "losers" , winners" and thus batter morale. And since they don't e into account natural variation, they are inaccurate and - :3Jr and are perceived as such by employees.
-e dering of Deming's Fourteen Points, the points theme been reordered in the interest of highlighting some of _ ~ es between them. For example, in Deming's book, his - to "improve constantly . . . the system of production _e" is number five. However, it appears here right after ?Oint number one, constancy of purpose, both because deas are very closely linked and because Deming's defnstant improvement is central to his philosophy.

5 constancy of purpose..' of purpose, on a macro level, entails an unequivocal long;mnitment to invest in, and adapt to, the challenging reof the marketplace. It is the antithesis of managing for ~ financial gain. Constancy of purpose, on a micro level, -e systematic fine-tuning of every function in a corporation : --e changes in company strategy and product line that are : ~ meet long-term market needs.-g's concept of constancy begins and ends with the cus- ile U.S. companies initially turned to Deming because - control of their processes and d\'i>covereo that they were _ 'r more faulty products than the competition was, they e-ed that eliminating defects isn't enough to capture _ccess depends on how well a company evaluates the ~roducts, and markets of today to figure out what the want tomorrow, and whether a company has the man:1\iction to change accordingly. It requires a commitment strategies and the analytical know-how to accurately _ -e organizational changes need to be made.- ;>anies may think this obvious. But the evidence of the


W. Edwards Deming

Born
October 14, 1900(1900-10-14)Sioux City, Iowa, USA
Died
December 20, 1993 (aged 93)Washington DC, USA
Occupation
Statistician
William Edwards Deming (October 14, 1900–December 20, 1993) was an American statistician, college professor, author, lecturer, and consultant. Deming is widely credited with improving production in the United States during World War II, although he is perhaps best known for his work in Japan. There, from 1950 onward he taught top management how to improve design (and thus service), product quality, testing and sales (the last through global markets)[1] through various methods, including the application of statistical methods such as analysis of variance (ANOVA) and hypothesis testing. Deming made a significant contribution to Japan's later renown for innovative high-quality products and its economic power. He is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage. Despite being considered something of a hero in Japan, he was only beginning to win widespread recognition in the U.S. at the time of his death. [2]
Contents
1 Overview
2 Early life and work
2.1 Work in Japan
2.2 Honors
2.3 Later work in the U.S.
3 Deming philosophy synopsis
3.1 The Deming System of Profound Knowledge™
3.2 Deming's 14 points
3.3 Seven Deadly Diseases
4 Quotations and concepts
5 See also
6 Notes
7 Bibliography
8 External links
//
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Andry Grove

 

Only the Paranoid Survive

Only the Paranoid Survive: Book Preface
Sooner or later, something fundamental in your business world will change.
I'm often credited with the motto, "Only the paranoid survive." I have no idea when I first said this, but the fact remains that, when it comes to business, I believe in the value of paranoia. Business success contains the seeds of its own destruction. The more successful you are, the more people want a chunk of your business and then another chunk and then another until there is nothing left. I believe that the prime responsibility of a manager is to guard constantly against other people's attacks and to inculcate this guardian attitude in the people under his or her management.
The things I tend to be paranoid about vary. I worry about products getting screwed up, and I worry about products getting introduced prematurely. I worry about factories not performing well, and I worry about having too many factories. I worry about hiring the right people, and I worry about morale slacking off.
And, of course, I worry about competitors. I worry about other people figuring out how to do what we do better or cheaper, and displacing us with our customers.
But these worries pale in comparison to how I feel about what I call strategic inflection points.
I'll describe what a strategic inflection point is a bit later in this book. For now, let me just say that a strategic inflection point is a time in the life of a business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end.
Strategic inflection points can be caused by technological change but they are more than technological change. They can be caused by competitors but they are more than just competition. They are full-scale changes in the way business is conducted, so that simply adopting new technology or fighting the competition as you used to may be insufficient. They build up force so insidiously that you may have a hard time even putting a finger on what has changed, yet you know that something has. Let's not mince words: A strategic inflection point can be deadly when unattended to. Companies that begin a decline as a result of its changes rarely recover their previous greatness.
But strategic inflection points do not always lead to disaster. When the way business is being conducted changes, it creates opportunities for players who are adept at operating in the new way. This can apply to newcomers or to incumbents, for whom a strategic inflection point may mean an opportunity for a new period of growth.
You can be the subject of a strategic inflection point but you can also be the cause of one. Intel, where I work, has been both. In the mid-eighties, the Japanese memory producers brought upon us an inflection point so overwhelming that it forced us out of memory chips and into the relatively new field of microprocessors. The microprocessor business that we have dedicated ourselves to has since gone on to cause the mother of all inflection points for other companies, bringing very difficult times to the classical mainframe computer industry. Having both been affected by strategic inflection points and having caused them, I can safely say that the former is tougher. I've grown up in a technological industry. Most of my experiences are rooted there. I think in terms of technological concepts and metaphors, and a lot of my examples in this book come from what I know. But strategic inflection points, while often brought about by the workings of technology, are not restricted to technological industries.
The fact that an automated teller machine could be built has changed banking. If interconnected inexpensive computers can be used in medical diagnosis and consulting, it may change medical care. The possibility that all entertainment content can be created, stored, transmitted and displayed in digital form may change the entire media industry. In short, strategic inflection points are about fundamental change in any business, technological or not.
We live in an age in which the pace of technological change is pulsating ever faster, causing waves that spread outward toward all industries. This increased rate of change will have an impact on you, no matter what you do for a living. It will bring new competition from new ways of doing things, from corners that you don't expect.
It doesn't matter where you live. Long distances used to be a moat that both insulated and isolated people from workers on the other side of the world. But every day, technology narrows that moat inch by inch. Every person in the world is on the verge of becoming both a coworker and a competitor to every one of us, much the same as our colleagues down the hall of the same office building are. Technological change is going to reach out and sooner or later change something fundamental in your business world.
Are such developments a constructive or a destructive force? In my view, they are both. And they are inevitable. In technology, whatever can be done will be done. We can't stop these changes. We can't hide from them. Instead, we must focus on getting ready for them. The lessons of dealing with strategic inflection points are similar whether you're dealing with a company or your own career. If you run a business, you must recognize that no amount of formal planning can anticipate such changes. Does that mean you shouldn't plan? Not at all. You need to plan the way a fire department plans: It cannot anticipate where the next fire will be, so it has to shape an energetic and efficient team that is capable of responding to the unanticipated as well as to any ordinary event. Understanding the nature of strategic inflection points and what to do about them will help you safeguard your company's well-being. It is your responsibility to guide your company out of harm's way and to place it in a position where it can prosper in the new order. Nobody else can do this but you. If you are an employee, sooner or later you will be affected by a strategic inflection point. Who knows what your job will look like after cataclysmic change sweeps through your industry and engulfs the company you work for? Who knows if your job will even exist and, frankly, who will care besides you?
Until very recently, if you went to work at an established company, you could assume that your job would last the rest of your working life. But when companies no longer have lifelong careers themselves, how can they provide one for their employees?
As these companies struggle to adapt, the methods of doing business that worked very well for them for decades are becoming history. Companies that have had generations of employees growing up under a no-layoff policy are now dumping 10,000 people onto the street at a crack. The sad news is, nobody owes you a career. Your career is literally your business. You own it as a sole proprietor. You have one employee: yourself. You are in competition with millions of similar businesses: millions of other employees all over the world. You need to accept ownership of your career, your skills and the timing of your moves. It is your responsibility to protect this personal business of yours from harm and to position it to benefit from the changes in the environment. Nobody else can do that for you.
Having been a manager at Intel for many years, I've made myself a student of strategic inflection points. Thinking about them has helped our business survive in an increasingly competitive environment. I'm an engineer and a manager, but I have always had an urge to teach, to share with others what I've figured out for myself. It is that same urge that makes me want to share the lessons I've learned.
This book is not a memoir. I am involved in managing a business and deal daily with customers and partners, and speculate constantly about the intentions of competitors. In writing this book, I sometimes draw on observations I have made through such interactions. But these encounters didn't take place with the notion that they would make it into any public arena. They were business discussions that served a purpose for both Intel and others' businesses, and I have to respect that. So please forgive me if some of these stories are camouflaged in generic descriptions and anonymity. It can't be helped.
What this book is about is the impact of changing rules. It's about finding your way through uncharted territories. Through examples and reflections on my and others' experiences, I hope to raise your awareness of what it's like to go through cataclysmic changes and to provide a framework in which to deal with them.
http://www.intel.com/pressroom/kits/bios/grove/paranoid.htm

Jack Welch

www.nndb.com/people/006/000025928/

Jack Welch

Jack Welch on Management: Change Before You Have To
RSM Erasmus hosted a seminar on leadership and management in co-operation with Focus Conferences on 18 May 2004. Speakers included a powerful array of European business leaders and the keynote speech by Jack Welch, former CEO of General Electric.
Floris Maljers, Chairman of the RSM Erasmus Advisory Board and former Chairman of Unilever, opened the conference while Wim Kok, Prime Minister of The Netherlands (1994-2002), discussed issues relating to management in The Netherlands.
Roel Pieper, Managing Director and Chairman, Favonius Ventures addressed the audience on the topic relating to how applicable American management practises are in the Dutch business context; and Ad Scheepbouwer, Chairman and CEO, KPN spoke about creating new perspectives within his organisation.

Driven by the Love of Learning
Welch was interviewed by Charles Groenhuijsen, US correspondent for the NOS Dutch Public Television and Radio. Groenhuijsen asked some tough questions about CEO pay scale, the war in Iraq, and if American management style as exemplified by Welch, has a place in The Netherlands / international business environment of the 21st century.

In answer to the question "What drives you?" the ebullient and energetic Welch said "I love to learn."

Asked to elaborate, he noted that he "probably had 500 mentors," and particularly had learned a lot from Japanese business leaders the Toyoda brothers (of Toyota) and Sam Walton of Walmart.

Move Faster
Asked about any regrets, he said, "I would have done everything faster. Too often we pause when we should have charged. You're never fast enough." Speed was also at the top of his list when describing what CEOs of the 21st century are faced with. "Go faster. Encourage much more employee participation. And you have to be comfortable as a partner in international business."

Welch also emphasized on the developments of talents in organisations, comparing the role of the CFO and the head of HR in most organisations. "Why do you want the scorekeeper getting the power? The person building the team is more important," said Welch.

The Ultimate Business How-To Book
Once dubbed "Neutron Jack" for his sweeping downsizing at GE during the 80s - an act that made him the self-described "toughest boss in America" - Welch may well be the best-known CEO in the world.

He is the author of such books as Get Better or Get Beaten!, Jack Welch on Leadership, and Jack: Straight from the Gut; meanwhile he is currently in progress on his hotly-anticipated book Winning: The Ultimate Business How-To Book, due out in May 2005.

Fortune Magazine once crowned Welch "Manager of the Century" saying, "Welch wins the title because in addition to his transformation of GE, he has made himself far and away the most influential manager of his generation."

"Change Before You Have To"
Perhaps the best and most general advice given by Jack Welch was his reinforcing of one of his oft-repeated quotes, "Change before you have to." He stands by it today. "Never be happy where you are. Get a culture at your company that loves change. And every time there's a quantum change [in the business world], jump!"

The seminar concluded with a roundtable discussion by Gerlach Cerfontaine, President & CEO Schiphol Group, Ewald Kist, Chairman of the Executive Board ING Group, Thomas Leysen, CEO Umicore, Karel Noordzij Executive Director PGGM and Ad Scheepbouwer Chairman and CEO KPN. Moderated by Groenhuijsen, each panelist was given a quote of Welch and asked to comment on its applicability to Dutch business.
More Info?
Contact: Theo Backx, Executive in Residence at development@rsm.nl
RSM Erasmus Network

http://www.rsm.nl/portal/page/portal/RSM2/Newsroom/ItemPortletPage?p_item_id=2355505&p_pg_id=133&p_page_id=2540295


Downsizing the "Neutron Jack" Way

Arguably, Welch's most controversial move was the downsizing of the DI. At GE he was fond of saying: "Downsize before it's too late."

He hated bureaucracies and felt that the Agency should operate like a network of small businesses. He felt that even in good times, all organizations should regularly review expenses and the number of its personnel.

For example, Welch told me he downsized GE during one of its most healthy stages, earning him the nickname "Neutron Jack" (the guy who removed the people, but left the buildings standing).

He hated this nickname, and it hurt, but he said he hated bureaucracy and waste even more. At GE, Welch insisted that all businesses be number one or number two, or "fix, sell, or close." He added he learned over the years that there were glaring exceptions to this rule, but he wanted the DI to follow the spirit of this principle.

He said that good businesses have to be sorted out from the bad ones. During one of his frequent roundtable lunch discussions with DI analysts, Welch ruffled quite a few feathers when he said the DI has the tendency to overanalyze an issue or to take on too many "nice to know, but not critical" issues.

For example, he said that a significant number of DI products have very few customers. He exclaimed, "We shouldn't be bothering our very busy policymakers with obscure or hypothetical subjects on a country whose location most of us don't even know."Unless a specific DI issue met a certain threshold of policymaker interest, he said that the manager responsible for it should "fix" it or "close" the office down.

He said there were too many other more important issues to which DI analysts could be surged.When Welch began downsizing and closing offices and accounts, some DI managers complained, "You'll kill morale and you'll never be able to mobilize on this issue if it ever gets really hot."

Other DI managers complained, "You've already cut all the fat out. Now you're into bone and you'll ruin the organization if we cut more."

Welch said that both arguments were weak. He responded to his critics, "I've never seen a business ruined because it reduced costs too much, too fast. When good times come again, I've always seen business teams mobilize quickly and take advantage of the situation."

Welch felt it was wrong that the system in place in the public sector rewarded managers for being "empire builders" and not for downsizing, for expanding services and not for cutting costs.

He said he would continue to downsize, even if it risked congressional budget cuts in the near term. Welch had his own ideas for expanding in other areas, but he insisted that before he could do that he needed to make the directorate as lean and efficient as he could.

One day, in one of his most controversial moves, Welch also proposed cutting out an entire layer of management in the DI.He justified this by saying, "De-layering speeds communication." He added, "

As we became leaner at GE, we found ourselves communicating better, with fewer interruptions and fewer filters. We found that with fewer layers we had wider spans of management. We weren't managing better. We were managing less, and that was better."

He even caused much heartburn when he suggested DI managers should also consider drafting analytic papers instead of just editing them. He said, "Many believe we need more analysts in the DI. Perhaps this is true. Or perhaps, what we really need is less management."

An idea Welch was forced to abandon was his introduction of the concept of "managing by differentiation." "Winning teams come from differentiation, rewarding the best and removing the weakest, always fighting to raise the bar," he argued.Welch felt the DI should spend the next few years building a performance culture, and, when ready, begin systematically and frequently removing the bottom 10 percent of analysts and managers.

He stressed, "Lifetime employment is a failed strategy. I shouldn't have agonized as long as I did at GE on so many people who weren't going to cut it."

However, Welch stood down after unhappy HR managers reminded him that government employees enjoy many civil protections and that the CIA could not risk large numbers of disgruntled employees because of counterintel-ligence concerns.

One fuming HR manager even told him to his face, "I can't agree with you that lack of job protection is a good thing—in government or in business.

For example, people complain that Generation Xers have no loyalty. I think what is really going on is that Generation Xers can't be completely loyal because they feel that their employers won't be loyal to them during an economic downturn"




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