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deming, improvement, leadership, lean, management, transformation, Uncategorized

How Well Do You Know Your System?

“If you can’t describe what you’re doing as a process, you don’t know what you’re doing.” – W. Edwards Deming

As a leader, how well do you understand how your organization works?  Do you have a good picture of the relationships and interconnections that exist both inside and outside that enable the company to operate?  I’m not sure it’s possible to truly grasp all of the complexities within an operation, but the more a leader understands about the overall system, the more effective improvement efforts will be to reduce waste and improve performance.

W. Edwards Deming wrote about the importance of understanding the system in Out of the Crisis and The New Economics, and what it means to leadership and transformation.  At first glance, it’s easy to miss the significance of the message Deming was trying to convey because of the assumed simplicity of the system diagram he referred to so often.  A common response after first seeing the diagram is, of course an organization consists of processes working together to produce a product or service . . . so what?

Deming’s Production Viewed as a System (Out of the Crisis)

Anyone who has attempted to draw a system diagram of their own organization quickly learns the significance of the exercise.  It becomes obvious pretty quickly how many interactions exist and how complex the system truly is.  During an exercise like this, I’ve seen some of the most stalwart nonbelievers begin to realize that quality and performance is the result of the system –i.e., management’s responsibility – rather than individual workers.  In many cases, those working on the diagram become impressed that people are actually able to perform given all of the barriers that the system creates.

Other important aspects of leadership that become evident when systems thinking begins to take hold include:

  • the importance of flow to the success of the organization, as well as some of the areas that impede flow the most;
  • how individual functions tend to work against, rather than with, each other within the system, and how detrimental it is to serving customers;
  • the importance of internal customers and suppliers and how critical it is to improving quality and productivity;
  • a better comprehension of all of the organization’s stakeholders and why they matter to overall success;
  • a much clearer picture of what adds value to the overall system and what does not.

Organizations are in a constant state of change and, although it is not possible to completely understand all of the interrelationships that exist, it is important to appreciate how critical continually improving the interactions is to overall performance.  It also becomes evident that promoting leaders who have this level of appreciation and never stop attempting to learn about and improve the system is important to the company’s long-term success.

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About Gregg Stocker

Gregg Stocker is a lean advisor for Hess Corporation. He possesses over 20 years experience in a variety of disciplines including operations, manufacturing, human resources, quality, and strategic planning, and has worked in manufacturing, service, and oil & gas industries. He has extensive international experience, including successfully leading an $65 million business in The Netherlands. He authored the book, “Avoiding the Corporate Death Spiral: Recognizing & Eliminating the Signs of Decline,” (Quality Press, 2006) and was a contributing author to "The Lean Handbook," (Quality Press, 2012). Gregg is a frequent speaker and recognized expert in business and performance improvement having been interviewed on television, radio, and in a number of newspaper and magazine articles including The New York Times, Washington Post, BusinessWeek, and InformationWeek. Gregg has implemented change in organizations ranging in size from $10 million to more than $100 billion. He is a team-oriented leader who achieves results by improving teamwork, focus, and communication throughout the organization.

Discussion

2 thoughts on “How Well Do You Know Your System?

  1. This is excellent Gregg. Every organization can understand themselves better by mapping their system of work.

    Always at the beginning it seems at best an interesting exercise. But as the process gets underway, it becomes more and more valuable, until finally it it becomes obvious: mapping the organization’s system of work is absolutely vital (for optimizing performance!)

    Posted by Corpus Optima (@corpusoptima) | November 18, 2012, 12:34 pm
    • Great point, Dave. As long as leaders have the patience to give the process the time it deserves, the exercise can be invaluable. Makes one wonder how much real improvement can occur without first understanding the system. Thanks for the comment!

      Posted by Gregg Stocker | November 18, 2012, 1:35 pm

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