4 | Info Mgmt

Reality Check in Japan

Making assumptions about the world around us is human nature. We have a sense for how the world operates and we interpret information and events based on our experiences and expectations. Peter Senge, author of The Fifth Discipline, calls these assumptions “leaps of abstraction.”

We make leaps of abstraction at work all the time. We assume we know what our customers require, what engages our employees, the source of a problem, and our marketplace and competitors. Because our assumptions may not, in truth, reflect reality, acting on them can cause all sorts of problems, and learning the truth through sound data and information can challenge our most dearly held beliefs.

This is what happened recently in Japan. Japan has a reputation for producing many of the world’s oldest people due, it has long claimed, to superior diet and a commitment to the elderly. It assumed it excelled in this area—until police found the body of one of the country’s centenarians, a man believed to be 111, who had been dead for more than thirty years.

The shocking discovery challenged a long-held belief, prompting officials to verify the status of the other centenarians in the country. According to an article in the New York Times by Martin Fackler, one of Tokyo’s oldest citizens at 113 had not been seen since the 1980s. City officials tried to visit a 125-year-old only to discover that her registered address had been turned into a city park in 1981.

To date, authorities have been unable to find 281 Japanese…

16Aug2010 | Steve George | 0 comments | Continued

Aligning with Strategies & Measures

The Veterans Affairs Cooperative Studies Program Clinical Research Pharmacy Coordinating Center (VACSP Center) won the Baldrige Award in 2009. It has four key strategic goals and 13 key performance indicators, which are listed on its balanced scorecardVACSP Scorecard.

9Aug2010 | Steve George | 0 comments | Continued

Data from a New Perspective

We have all seen more than our shares of charts and tables. Data in columns and rows. If we’re lucky, a trend chart. Numbers filling pages filling handouts filling binders.

That’s why it is always delightful to find a new way of presenting information, as Doug McCune has done with crime in San Francisco. He took real data, aggregated it geographically, and artistically rendered it as elevation. More crime mean higher elevation. You have to see the maps to understand their impact. Click here to see the hills and mountains of San Francisco created by larceny, narcotics, assault, vandalism, warrants, prostitution, vehicle theft, and robbery.

As McCune points out, the features are pretty consistent across all of the maps. It looks like the northeast center of the city easily has the highest crime rate across all types of crimes. The most dramatic map is the prostitution map with its twin peaks casting shadows over the city.

It made me think of how an elevation map could be used to show an organization’s data. For example, if you measure quality at different points in a process, you could map the process and use the quality measures to create elevation along the route. If you work for a utility, you could use outage data to create elevation maps that showed where most outages occur in the area you serve. Sure, you already have the data and everybody knows that bigger numbers mean more outages, but visualizing those outages can have a powerful impact.

Governments could use elevation…

9Jun2010 | Steve George | 0 comments | Continued

Making Better Decisions, Faster

The Baldrige Criteria devote one Item to how you manage information, knowledge, and information technology. The goal is to make data and information accurate, reliable, timely, secure, confidential, and available to the people who need it, when they need it.

In “How Do You Speed Up Information Delivery?” (HBR, May 26, 2010), Tom Davenport addresses the need for speed in information delivery. He identifies several technical advances that are accelerating this including: (1) storing information in memory rather than on a hard drive for faster retrieval and manipulation; (2) using new forms of databases for faster data retrieval and analysis; and, (3) faster hardware and easier-to-use software the make data analysis easier.

This, he notes, “is the relatively easy part.” Process, behavior, and management change are tougher. The first step is to identify what information really needs to be delivered more quickly. Not all information is critical. Prioritizing will help focus resources on the greatest need.

Davenport points out that managers want information when they want it, which is not necessarily when they get it. For that reason, it’s often better to make information available for online access (pull) rather than issuing reports (push).

The next step is to have executives work with analysts “to identify what information is most needed quickly, and then to create alerts, query and reporting formats, and analyses that truly inform decisions.”

The final step, according to Davenport, is to make decisions faster. This is the whole reason to speed up information delivery in the first place: To make better, more…

1Jun2010 | Steve George | 0 comments | Continued

Baldrige ROI

The Baldrige blog describes a slide shown by Jerry Rose, the head of quality at Cargill, at the recent Quest for Excellence. Cargill has had two businesses win the Baldrige Award and one has received the Award twice.

Rose’s slide divides Cargill businesses into three groups: those with a high degree of Baldrige deployment, those with partial deployment, and those just beginning to use Baldrige. The businesses with a high degree of deployment have achieved 30% cumulative earnings after taxes vs. budget. The businesses with partial deployment achieved 13%. The businesses just beginning their Baldrige journeys had -12%.

Rose summarized the results: “Deciding to embrace the Baldrige program in your company is a commitment to a journey. It takes time, it takes dedication, and it takes resources. What I know for sure is that there is a huge return on your investment.”

To see more results that support this Baldrige ROI, click on these articles:

17May2010 | Steve George | 0 comments | Continued

How to Develop a Balanced Scorecard

Organizations that want to get a better handle on how they are doing in the areas most important to their success often decide to develop a Balanced Scorecard. Here are four typical stages of development.

Stage 1: Enlightenment. Senior executives need to believe that the path to solid, long-term success requires knowledge of: (a) customer requirements and how to meet them; (b) employee requirements in order to reduce turnover, improve processes, and provide better service; and (c) operational processes and costs to discover how to become faster and more flexible. With this realization, leaders seek measurements that will tell them how the company is doing in each of these areas. Better yet, they want a measurement system that shows the connection between these vital areas. They are enlightened. The need for a Balanced Scorecard grows.

Stage 2: Identification. The organization initiates a system-wide effort to identify existing measures and to create needed measures where none exist. It begins to track performance on these measures, to report progress to employees, and to reward them for meeting performance goals.

Stage 3: Refinement. The reaction to the measurements, progress, reports, and rewards suggests that people respond to what is measured. This leads to greater refinement of the measures. For example, since daily performance measures receive more attention than annual customer surveys, leadership may decide it should have more frequent customer measures and establish interim performance indicators tied to the less frequent surveys.

Stage 4: Integrated Analysis. The organization’s measurement system is linked to the organization’s vision with…

11May2010 | Steve George | 0 comments | Continued

Communicating Performance on Key Measures

Wainwright Industries manages by fact. One visit to Mission Control and you believe it.

Wainwright dedicates one conference room at its headquarters in St. Peters, Missouri, to displaying the information and analysis that drives its award-winning continuous improvement efforts. It calls the room Mission Control.

The walls display a plethora of charts and graphs, including trends for quality and performance indicators and, for each customer, monthly satisfaction index scores, trends for quality measures, stretch targets for exceeding customer expectations, and weekly customer feedback reports.

Wainwright developed five key strategic indicator categories from its strategic business planning process: safety, internal and external customer satisfaction, Six Sigma quality, and business performance. “We focus on safety first and making money last,” says plant manager Mike Simms. And the focus has paid off. “We went from $100,000 in Workers Compensation claims in 1991 to zero in 1994,” Simms said, “and our number of recordable accidents dropped from 66 to 12.” At the same time, putting business performance last did not mean it suffered. Over the same time period, Wainwright’s gross profit as a percent of sales jumped from 8.7% to 14.2%.

Mission Control displays key quality indicators for each of the five categories, all of which link to the company’s mission, vision, values, and objectives. The Mission Control indicators are recordable accidents, associate suggestion rate, internal and external customer satisfaction, internal parts per million, sales, and net income. Trends are updated and reviewed regularly. “I go into Mission Control every day,” said Don Wainwright, chairman and chief executive…

23Mar2010 | Steve George | 0 comments | Continued