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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1121.0. ""Winning the Quota Battle"" by ODIXIE::BAHL () Mon Jun 11 1990 18:02

    
    It is so true and similar to Digital/American Business Management
    where everything is measured and rewarded on quotas. Happy reading...
    
    This article is taken from Orlando Sentinel without permission.
    
    WINNING THE QUOTAS BATTLE MAY CAUSE US TO LOSE THE ECONOMIC WAR
    
    If I could pick anyone in the world to interview extensively, W.
    Edwards Deming would rank high among the candidates. James M. Buchanan
    would also be near the top - and for the same reasons.
    
    Every time I read anything written by either of them, the word seem to
    make good sense. Often they even agree with my thinking and express
    sentiments that I have felt but not said.
    
    Buchanan, you may recall is the professor at George Mason University
    who won the 1986 Nobel Memorial Prize in Economic Science for his
    theory that, given the choice between statesmanship and self-serving
    acts, U.S. politicians will take the latter route just about every
    time and that the economic consequences are disastrous.
    
    Although Deming's expertize lies in the field of management and
    Buchanan's forte is economics, both seem to understand what is ailing
    America and have some ideas about how to fix things.
    
    Deming, of course is the man who gets a lot of credit for teaching
    Japanese how to manage their business and industry following World War
    II so that they could win the economic war that followed.
    
    One can almost forgive the aging guru for showing the Japanese how to
    do us in, for he first offered his advice to American business but was
    pretty much ignored. At 89, Deming has apparently lost none of his
    reasoning powers in sizing up what's wrong with U.S. management.
    
    Like politicians, Deming says, U.S. managers also take the self-serving
    route, usually in the hope of reaching a goal or quota that is
    counterproductive and sometimes demoralizing to the rank-and-file
    workers who are ultimately responsible for getting the job done.
    
    Deming gave several examples of management thinking that will hit home
    with just about anyone who works for a living and is proud of the job
    he or she does.
    
    "We are all born with intrinsic motivation, self-esteem, dignity, an
    eagerness to learn", Deming said. Our present system of management
    crushes that all out.
    
    Not a fan of management policies that constantly judge, rank and
    appraise workers, Deming argues that employees who are rewarded based
    on annual reviews and on whether they meet goals and quotas eventually
    begin to compete with each other rather than concentrating on the
    quality of their work and the long range success of the business.
    
    And that mentality also gets U.S. corporations in hot water, he said,
    because they spend time and effort keeping an eye on what the
    competetion is doing when they should be concentating on better service
    to the public and the employees.
    
    Deming uses banks as an example of how quotas can be dangerous. "A bank
    lending officer has a quota to lend $83 million/month," Deming said.
    He does it, and can you blame him? That was his job. Other lending
    officers do the same. And bank gets into trouble."
    
    Deming notes that he has never known of a bank that closed because of
    sluggishness at teller windows or mistakes in calculations of interest.
    "Don't be silly," he said. "It closed because management made bad
    loans."
    
    Many companies get into trouble, he said, because goals and quotas put
    managers in the position of trying to attain goals beyond their reach
    or outside their capabilities. Given such a task, he said, managers
    sometimes do accomplish the impossible. But they may ruin the company
    in their zest to make the quota and grab themselves the brass ring that
    goes with it.
    
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1121.1You're Living In A Material WorldHERON::PERLATue Jun 12 1990 15:1721
American management shortsightedness is no more than a reflection of cultural 
values that are common throughout America. For example, with generations of 
yuppies striving ravenously to have it all and have it in the next ten minutes,
can we expect their decisionmaking processes to be any more profound?

Amerca's is a mercantile society for which earning a buck is tantamount to 
sitting on the right hand of God. For as long as this rather singular 
value dominates others, we can expect management decionmaking to be optimized
on the quickest return, not the best. Changing cultural values permanently is
a long and laborious task. Changing our attitude towards making as much money
as humanly possible versus as much as humanly necessary  would be a hopeful
start. But then, there will always be the rathole discussion of what is 
econmically "necessary"? Economists are very bad at answering that question - 
regardless of which esteemed  academic institution they are affiliated.
They are far more attuned to macroeconomic predictions - it is quantative, not
qualitative and, therefore, easier.

Asking Americans to settle for less in the short run, to eventually have more
in the future has always proven politically untenable in peacetime. So, I fear,
there will be simply more of the same.....or, am I too pessimistic? 
Let's hope so!
1121.2long-term thinking and relentless improvementODIXIE::CARNELLDTN 385-2901 David Carnell @ALFTue Jun 12 1990 17:4125
       
    REF: <<< Note 1121.1 by HERON::PERLA >>>
    
    >><<Changing cultural values permanently is a long and laborious task>>
    
    Not necessarily.  Ken Olsen has the authority to change the fundamental
    rules which drives "how" Digital works.  If he changed those rules, the
    culture within Digital would change, overnight.
    
    Digital, by the way, had in one of its "bookstores" (part of Quality, I
    believe) Dr. Deming's book.  Perhaps if anyone has a copy, some of Dr.
    Deming's fundamental philosophies could be entered here so we can know
    in more detail what might be worth discussing, and implementing, as
    practice within Digital.  I believe (without having read his book yet)
    that the core of his philosophy is relentless improvement in all
    processes and products, via embracing and tracking change and new ideas
    with maximum employee and customer involvement.
    
    Tough to compete against this approach, especially when the corporation
    thinks long-term, even out to 50 years!
    
    As a sidenote, has anyone noticed how Digital buys all these books (by
    Deming, Peters, et al) and passes them about internally but that little
    from them seems to translate into practice?
    
1121.3CVG::THOMPSONAut vincere aut moriTue Jun 12 1990 17:4810
	RE: .2 Which book by Deming do you refer to? He's written several
	I believe. I have one and re-read it from time to time. His 4 day
	course (which I took) was a truely eye opening experiance. Even after
	taking the Intro to Deming course that DEC teaches (do we still?)
	in house. Some groups do appear to have adopted Deming's ideas. The
	problem being that the groups that feed them or surround them don't
	always do likewise. It has to be driven top down (according to
	Deming) to move through the whole orginization.

			Alfred
1121.4it indeed has to be driven from the very topODIXIE::CARNELLDTN 385-2901 David Carnell @ALFTue Jun 12 1990 18:317
    
    REF: 1121.3
    
    >><<Which book by Deming do you refer to?>>
    
    Out of the Crisis
    
1121.5For starters, here are Deming's "14 Points":HYEND::DMONTGOMERYTue Jun 12 1990 20:0150
                        Deming's 14 Points for Management


1.  Create constancy of purpose for improvement of product and service, with
    a plan to become competitive and to stay in business.  Decide whom top     
    management is responsible to.

2.  Adopt the new philosophy.  We are in a new economic age.  We can no longer  
    live with commonly accepted levels of delays, mistakes, defective materials,
    and defective workmanship.

3.  Cease dependence on mass inspection.  Instead, require showing statistical  
    evidence, that quality is built in to eliminate the need for inspection on  
    mass basis.

4.  End the practice of awarding business on the basis of a price tag.  Instead 
    depend on meaningful measures of quality along with price.  Eliminate     
    suppliers who cannot qualify with statistical evidence of quality.

5.  Find problems.  It is management's job to work continually on the system   
    (design, incoming materials, composition of material, maintenance,         
    improvement of machine, training, supervision, retraining).

6.  Institute modern methods of training on the job.

7.  Institute modern methods of supervising production workers.  The     
    responsibility...must be changed from...numbers to quality.  Improvement of 
    quality will automatically improve productivity.  Management must...take
    immediate action on reports...concerning barriers such as inherited 
    defects, machines not maintained, poor tools, fuzzy operational definitions.

8.  Drive out fear, so that everyone may work effectively for the company.

9.  Break down barriers between departments.  People in research design, sales, 
    and production must work as a team, to foresee problems of production that 
    may be encountered with various materials and specifications.

10. Eliminate numerical goals, posters, and slogans for the work force, asking  
    for new levels of productivity without providing methods.

11. Eliminate work standards that prescribe numerical quotas.

12. Remove barriers that stand between the hourly worker and his right to pride 
    of workmanship.

13. Institute a vigorous program of education and retraining.

14. Create a structure in top management that will push every day on the above  
    13 points.
1121.6quotes from Industry Week articleODIXIE::CARNELLDTN 385-2901 David Carnell @ALFTue Jun 12 1990 20:5628
    Industry Week, June 20, 1988
    
    WHAT MAKES DEMING RUN?
    
    Four quotes from Deming from the article:
    
    "The biggest problems that any company in the Western world faces are
    not its competitors, nor the Japanese.  The biggest problems are
    self-inflicted, created right at home by managements that are off
    course in the competitive world of today.  Systems of management are in
    place in the Western world that for survival must be blasted out."
    
    "It is not enough that top management commits itself for life to
    quality and productivity.  They must know what it is that they are
    committed to -- that is, what they must do.  These obligations cannot
    be delegated.  Support is not enough; action is required."
    
    "Most American manufacturers somehow suppose that they can achieve
    Japanese quality and efficiency by adopting resolutions...Almost nobody
    in any responsible position has the faintest idea about statistical
    quality-technology."
    
    "Replace time standards and work quotas with leadership, and quality
    and productivity will go up; the people will be happier, and they will
    feel more important."
    
    "appraisal of people is actually the destroyer of people."
    
1121.7Crushing worker incentives?VINO::FLEMMINGNo reason, just policyWed Jun 13 1990 11:0913
    Since we seem to have gotten off on Deming, there is a fascinating
    interview with him in the June 9th WSJ suppliment, Managing Change. I'd
    recommend it to everyone. I'm not a good enough typist to enter the
    entire interview but I think the very first question and its answer
    give a pretty good indication of the flavor of the interview:
    
    WSJ: "What do you think is wrong with current management at
    corporations?"
    
    Deming: "We are all born with intrinsic motivation, self-esteem,
    dignity, an eagerness to learn. Our current system of management
    crushes that all out."
    
1121.8ELWOOD::PRIBORSKYAll things considered, I'd rather be rafting.Wed Jun 13 1990 11:5015
    I attended the Deming course (at the same time Alfred did, I think). 
    It must be about 6 years ago now.   A group of us had dinner with him
    one night.  Truly an amazing man.  Few times in your lifetime do you
    meet someone who, when the encounter is over, do you make the
    obsevation "That person will have a big impact on the way we do things,
    if only people will listen."
    
    If you're ever given the chance, run, don't walk, to that seminar. 
    It's very eye opening.
    
    Anyway, Storage Systems is into Six Sigma these days.  That is
    Motorola's Statistical Quality Control methodology adapted in house.
    Time will tell if it works here.
    
    
1121.9I'm checking, but notes helps tooNWD002::EVANS_BRWed Jun 13 1990 20:296
    So I can learn... where might I find written materials on Motorola's
    SQC methodology???  books, tapes, cassettes, videos, whatever...
    
    thanks!  Same goes for Deming seminars - would Ed Srvc know of these??
    
    Bruce (in Seattle) Evans
1121.10EUROPE EIS TIME REPORTING DIRECTIVE: WE LOVE ITFNYTC6::HOUZEJe dirais meme plus: Pas d'affolementThu Jun 14 1990 12:2733
RE .7

>> Deming: "We are all born with intrinsic motivation, self-esteem,
>> dignity, an eagerness to learn. Our current system of management
>> crushes that all out."
    
To illustrate this, here is an extract of a recent mail we got here 
(FYO, Ferney Voltaire, FRANCE, with close link to Geneva European Headquarters):

----

The following EIS time reporting directive was adopted by the EISFMT on
June 1, 1990:

All Professionals, and first-line managers of those Professionals, within
all EIS functions (P&C, EIC, E.S. and I.S.) must report time as of FY91.

The only persons not required to report time are:

    . Clericals
    . Second-line managers (managers of managers)
    . Headquarters staff

----
 
Note that since I'm with DEC (87) I've been doing the traditional time reporting work
( on systems which changed every six months ). 

For me, management directives like the one above perpetuates the old fashioned 
and how wrong idea that employees are not really responsible people (as opposed
to magagement).   

Christian-Luc
1121.11Coming closer to core values!BONNET::BREICHNERThu Jun 14 1990 14:4514
    re.-1
    I'd love to see the business justifications for the time reporting!
    In particular with regards to 1st line managers reporting, 2nd
    line managers not reporting..
    As an individual contributor I used to report against projects in
    engineering, or "warranty", "per call"..... activities etc
    in Customer Services.
    As a first line EIS manager, what would I report against ?
    e.g 2 hours of leadership per engineer per month ?
        1 hour of  people development per """"""""" ?
        .5 hours of CC management per 100k$ of capital equipment per ?
    Quite exciting perspective,
    Fred