Category Archives: Business

What should a manager manage?

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Managers should not be managers of people, they must manage processes. Managers should be leaders of people not managers of people. Managing people by watching them closely is not typically a very effective method to ensure that work is completed. Micromanagement breeds mistrust between employee and manager. Through managing the quality of the processes the manager is able to increase the likelihood of success of their people.

All work is a process. Even if there doesn’t appear to be a process if the work is to be fully completed there are a series of steps that must be completed. It doesn’t have to be a good process, a repeatable process, or particularly effective but if the work is completed it followed a process. Furthermore, if more multiple people do the same type of work without a clearly defined process it’s likely that there will inconsistent results to their work. A manager owns the overall output of all the work of their employees. If the work is consistently subpar or employees have a difficult time picking up the way to do the work that is expected of them, this is the responsibility of the manager to address. It doesn’t matter how amazing the employees are, they could have been consistently excelling in a previous, if the processes are terrible those employees will not succeed.

Not every type of work can effectively be managed through traditional software. For example, software and technology development in both these are “knowledge” activities that unlikely would benefit from a highly structured process. In these cases there are two things that help manage the process. First creating a regular process of checking in, managing what work the developers should be doing, and working to eliminate roadblocks – in software this is Agile software development. Second you create a standard process to feed in consistent data into the truly creative process and consistent outputs so that the consumers of the work are able to use the output of the creative process effectively in their work.

To manage the processes managers need to equip their employees and themselves with tools to do root cause analysis, conduct structured problem solving, and rigorous process improvement. Managers need to take ownership of the end to end process, the data their employees use to complete their work, and the quality of the results. It is important that this becomes the norm as it will switch blame from people, who generally want to do the right thing, to the process and how work is completed.

This is not to say that whenever people deviate from the agreed upon process that the manager shouldn’t address that or if people still fail to meet expectations while working in the process that they can’t be fired. However, leading employees to identify broken processes, supporting them in fixing them, and providing tools to do so becomes the role of the manager rather than micromanaging their employees.

What can Interstellar Teach us about the tragedy of the Commons? (spoilers)

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This post will contains some minor spoilers for the movie Interstellar. If you don’t want to read any spoilers, then stop reading now.

The tragedy of the commons represents a common good that without proper communication and planning can be destroyed through maximizing an individual’s utility. What does that mean? Well, a group of ranchers are sharing a field. One of them decides to make some additional money by buying, just ONE more head of cattle. He lets it eat in the grass that everyone else is sharing. No negative impact happens, the farmers discuss the number of cattle, which they had all agreed upon beforehand to be a set number. Since he increased his, everyone else does the same, eventually the land will not be able to sustain all the extra head of cattle, and the next year cattle start to die of starvation. Creating a crash in the economy.

According to Stephen Gardiner climate change represents a tragedy of the commons. However, instead of the ranchers, we have our great grand parent’s decision impacting our climate today. Climate change effectively started during the Industrial Revolution and our actions will be impacting future generations. Since the future generation does not have a voice in the conversation, it’s hard for us to put off current needs for future needs. This is further exasperated by the fact that we cannot even work to improve conditions for our own children, let alone some faceless grand child or great grandchild down the road.

Interstellar offers a glimpse into why this is so difficult. First, there’s clearly gaps in education, Interstellar points this out through exaggerating what a lot of school boards are currently doing, they go to the extreme to say that the Apollo missions are faked as a propaganda tool to destroy the Soviet Union. Second, Matthew McConaughey is one of the few forward thinking individuals, but he knows that we are continually leaving worse and worse conditions for our children, as a farmer he can see how poorly we’re fighting the blight that is killing our crops. Third, the time dilation he experiences being close to a blackhole allows him, while he’s still young, to see the full effects of his generations decisions on his children. He’s fully impotent to do anything about it, but he knows that the choices they made have fully doomed his children. Finally and I think most impactful, is the scene where Murph dies. He sees his grand children and great grand children and doesn’t even acknowledge them. He did everything he could for Murph but had no interest in seeing how all of this impacted his’s child’s children. Furthermore, Murph didn’t seem to want him to try to bridge that divide. Rather than try to build a relationship with the world as it was she pushed him to reunite with a crewmate that came from the same “world” as him.

All of these indicate that we have a serious tragedy of the commons problem. That education is required to even have a hope to combat the tragedy of the commons for climate change. That we must figure out a way to see past the here and now and create a seriously forward looking plan. That we cannot simply rely on a few forward thinking people because even they are limited in how much they can look to the future.

This is a serious concern because we now have a leader on the environmental committee in the US congress that doesn’t accept the evidence presented by scientists. Furthermore, the fact that lawmakers aren’t scientists seems to excuse them from understanding what people are saying about climate change.

We cannot expect some “they” to come and allow us to rescue ourselves with “their” help. We have to figure this out on our own. We’re failing miserably right now.

Another book that does a good job outlining these intergernational problems is the Forever War.

Strategy and Business Management

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As I mentioned in my Business and Silver Bullets article, there are a lot of different approaches to managing your business, or at least a portion of your business. None of these approaches are easy to implement and it seems that there’s a bit of a revolving door around what leadership approach is the best for a given business. Furthermore, it’s troubling to me that organizations are looking at initiatives like Lean and Six Sigma as only operational improvement opportunities. As I’m reading through how Business Architecture works, it’s obvious to me that many of the organizational deployments of LSS have failed in reaching their full potential. I saw it at Samsung, AMD, and I’m skeptical of the full reach I’m going to have at Regence. It’s not a failure of the individuals deploying it or of a given leader, it’s a failure of the full organization to accept that changes need to happen. Organizations need to integrate approaches like LSS into their core strategic planning process. Otherwise those methodologies will only impact a limited area and won’t appear to have a holistic approach to making changes to an organization.

From my experiences Lean and Six Sigma methodologies can indicate the need for organizational re-alignment. These require real change with serious effort to implement those changes. In many cases those are outside the scope of the project facilitator, the leader of the process improvement center of excellence, and likely the owner of the processes. It’s got to come from an executive sponsor. They have to be able to provide the organizational courage to make real changes to an organization. Through these tools it’s possible to identify redundancies and areas where organizations require massive change.

Why don’t organization implement these changes? Too many priorities is likely one problem. Another is that these changes are hard and unless they are well versed in Lean or organizational structures, they won’t understand why the changes are fundamental to continued success of an organization. They may not understand the changes because they weren’t involved in the redesign process intimately enough. Finally, it might also be that these changes are bottoms up recommendations and not top down.

I believe this is why Business Architecture eventually was a created as a discipline. I believe in organizations that are truly Lean that these types of roles are not needed. Simply because the bottoms up approach allows the leaders to focus on different things especially since a true Lean organization is always customer centric. In organizations that there is a great deal of legacy behavior and entrenched management fiefdoms, it might be a requirement to go through an organization like Business Architecture to give the true sense of ownership to the leaders. It makes the bottoms up recommendations that come from the BA team seem like it’s a top down approach that is sanctioned by all of leadership. It let’s people see that clearer tie between the different organizations in a way that a lot of Lean work doesn’t. It’s designed to be holistic not something grown into the whole over time.

This leads to a different method for developing strategy than what a lot of Lean practitioners utilize. Business Architecture focuses on the current capabilities and works to align the strategy from there. Lean starts with the 5 year vision and goals and figures out how to align existing projects and improvement efforts to enact those goal, through providing a metric for the person doing the work on the ground.

I think that these business management approaches are both valid, I’m really biased towards Lean, but I do believe that in many organizations Business Architecture is likely required. It leaves the control a bit more in the leadership rather than the Lean approach. I believe they both can impact strategy in an effective manner, but it’s likely that BA will be more tightly coupled from the start than many Lean initiatives.

To Colonize Mars you need Batteries: Elon Musk’s bold vision

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I think I’ve figured Elon Musk’s grand plan. He really only ever wanted to colonize Mars, but to do that he understood that you really need a strong safe source of power to be able to do this. I recently read a book called The Martian, which I highly recommend if you’re a huge nerd and love space, where the main character is assumed dead and left behind on Mars. He knows from the very beginning he’ll have to stay alive for the next 400 Sols or so (Martian days). Two things are of paramount concern to him. Power and food. Food is a little harder than the power because he has solar panels, but that’s not going to be very effective for moving him to where he knows he needs to be in those 400 Sols. (This isn’t much of a spoiler, you learn all of this in the first few pages).

So with that in mind, you know that you need to be able to keep power going during massive sand storms, which is the reason why the main character was left on Mars. These can last hundreds of days and greatly reduce the effectiveness of solar panels. Furthermore, getting to Mars is a huge pain, which if you read The Martian, you’ll really understand the full impact of humans trying to get to Mars.

Elon Musk started 3 companies with the express intent of getting to Mars and enabling a colony to survive. First, Space-X, this solves the getting to Mars portion. It’s an effective private space company that has already landed some pretty massive contracts from NASA. The goal of this company is to continually drive down the cost of launching rockets and building capabilities for space travel. The second company is a battery company, Tesla. Yes, I know it’s a car company, but it’s really a battery company. If you wanted to create a vehicle for forcing higher capabilities in battery technology there’s none better than an electric Car. Musk plans to open the Gigafactory to feed the Tesla, but he already plans on using them in other places. He’s offered Boeing his batteries since they are safer than other companies’ batteries. Finally, his solar panel company, Solar City is a method for continually charging those batteries.

Elon Musk isn’t only trying to take out the car companies with Tesla. For the power grid batteries are effectively required to manage a renewable based power grid because there are times of no power from wind or sun. Musk already is deploying battery changing stations across the US. Right now these are powered by the grid and used to store energy. It’s likely he has designed these stations to be bidirectional so the grid can charge the batteries and power can be sent from the batteries to the grid. It’s likely that these stations will be topped with the best of the solar panels that Solar City is able to buy. Forcing more and more investment into higher capability solar panels.

As more Americans start to use Solar City, it’s likely that they will begin to offer batteries, made by Tesla, to help store excess power, some will go to the grid, some will be stored. This will then be sold to the grid during different hours to help stabilize the grid. Effectively, this could lead to a completely decentralized power grid where power companies only maintain the physical grid without generating any power.

As these various companies mature over time, they will continue to push the capabilities of their respective industries. This will have a positive impact on Musk’s true goal of colonizing Mars. He will continually have better and better solar panels to capture the weaker Martian sun. He’ll have more effective power/weight ratio for batteries that will charge almost in an instant. He’ll have a space ship that will get it there effectively and safely.

Elon Musk is building an empire to save humanity from itself. Overall, it’s pretty amazing.

Businesses and Silver Bullets

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I’ve been teaching Lean Process Improvement or Six Sigma for about 6 years now. I’m getting into learning Agile in a pretty deep way through reading a ton of books, seeing it in action, and working with Agile teams. I’m currently learning Business Architecture/Enterprise Architecture as well. All of these methodologies are similar but different in some dramatic ways. Lean itself isn’t a project management solution, it has some features of it, but the goal is to take action put something in place and measure the results. Inherently, you’re supposed to be done as soon as possible. Six Sigma has some pretty strong Project management capabilities built into it, but it’s not to be used to install software or some other type of function, it’s design to solve a complex problem, prevent it from happening again and moving on. Agile is totally about managing projects while with as little overhead as possible, while maximizing visibility. This is done through frequent light weight touches and less frequent demos. Finally business architecture is about defining the structure of the business then identifying root causes. I’m the least impressed with Business Architecture at this point because it seems to have the objective of keeping the people at the top in charge while minimizing the amount of empowerment throughout the organization. That’s just my first brush with it though and I could be wrong. The other methodologies are all about empowering the team and the people doing the work so they can be as effective as possible. With Lean and Six Sigma the goal is to eliminate your own job if you’re an instructor or internal consultant, it doesn’t seem the be the case with Business Architecture.

Regardless, all of these methodologies indicate that our businesses are extremely sick. It’s becoming pretty clear to me that the vast majority of current state business practices are flawed and leading to under performing businesses. Lean Six Sigma, makes it clear that there are out dated and poor performing processes. Agile makes it clear that traditional software development doesn’t work and is much too expensive. Business Architecture indicates that no one knows what people are doing, why they are doing it, or where other parts of the organization are doing the same type of work.

In many cases some of the problems looking to be solved by Business Architecture are eliminated in a true Lean organization, but not always. I believe that is why Lean Startup methodology is becoming so popular in both new and old businesses. It’s a novel way to force change in an existing company, while in a Startup it helps keep the company healthy much longer. Furthermore, it forces the company to build effective organization structures early and continually test them.

With the majority of businesses being unhealthy due to out dated processes or aging systems, it’s no wonder why organizations are always looking for a silver bullet. They need a quick fix because nothing is working correctly. The goal to continually drive more and more profits prevents leaders from taking a hard look at what they are doing. Forcing investment in doing the right thing the first time or to do the right thing for the organization even if it takes more time and potentially money.

With my current process improvement classes and engagements I’m seeing a continually struggle between the way you should do Lean, focus on changing what you can, and the reality that most of the work is being done through systems. Even if I wanted to improve processes around the system there’s a limit to what I can do, because I cannot effect change on the underlying system. Changing those systems either IT or organizational can be impossible to do without a strong organizational will and clear strategy. Without either of those, any improvement or agile effort is doomed to fail.