Showing posts with label Big Company Disease. Show all posts
Showing posts with label Big Company Disease. Show all posts

Monday, April 3, 2023

On Big Data

By Pascal Dennis (bio)

Big data is all the rage these days. Big consulting houses and IT touts assure us that the next big breakthrough is just around the corner.

And all we need is self-appointed experts and super computers that crunch through all our ‘data’ and make sense of everything for us.

Don’t’ want to be misunderstood. There is a place for experts and for super computers, and the wise are always open to new thinking.


But do we really believe that Big Data is going to solve our problems?

Do we even understand our ‘small data’? In other words, do we understand our current condition? Stuff like:

  • Purpose
  • Core metrics
    • Targets versus Actual
    • Trends & patterns
  • Top 3 acute problems
  • Top 3 chronic problems
  • Degree of engagement of our teams
  • Problem solving capability of our teams
  • Overall capability of our team members
  • Capability of our machines & equipment
  • Capability of our processes

And these questions, of course, apply at each level of our management system from Level 1 – front line on up.

Comparatively few organizations can answer these questions in the affirmative.

Truth be told, many (most?) organizations flounder about in the fog of Big Company Disease [The Remedy], no?

It’s not incompetence or ill will. It is the nature of large organizations, organisms that are still comparative newcomers to the human scene.

It takes great skill and tenacity to disperse the fog, and keep it from seeping back in. Companies that thereby understand their ‘small data’ are akin to the one-eyed man in the kingdom of the blind.

So before we grasp at the straws of Big Data, let’s build our management systems so we can understand our ‘small data’ – like the world’s best organizations do.

Regards,

Pascal



In case you missed our last few blogs... please feel free to have another look…

Why Lean Outside the Factory?
Too Often, Power Means the Power to Do Stupid Things
When You’re Convinced You’re Right, You’ve Lost Your Ability to Learn
On Labels – ‘Expert, Master, Sensei’ and the like


Monday, July 11, 2022

Why is Lean So Hard? – Organizational Elements

By Pascal Dennis (bio)

In this piece I focused on our personal qualities that make Lean so hard to sustain (e.g. our innate trickiness and laziness).


A number of folks asked me to talk some more about organizational elements that hinder Lean.

Lean’s foundation is Standards and Connections – (Rules 1 and 2 of the Four Rules articulated by our MIT friend & colleague, Dr Stephen Spear, whose work I recommend highly.)

What organizational elements or qualities weaken or hinder Standards and Connections?

Standards

A standard is a picture of ‘What Should Be Happening’ (WSBH), our current ‘least-waste-way’ of doing a given task, the best way we know today. Most often, the front line team defines our standards for doing our work.

Senior leaders define WSBH in the form of organizational goals, the management system through which we run and improve our business, and our values (standards of behavior).

Here’s the rub: If senior leaders fail to meet the latter, our team members will ignore the former. Senior leaders have to embody our Values. If not, team members will pay scant attention to our organization’s goals & management system.

Think about that – team members will ignore our Purpose and our way of working. Can decay be far off? I’m reminded of Peter Drucker’s elegant summation of the Leader’s Purpose: 1) Get business results, 2) Create capability, and 3) Reinforce values.

Leader visibility in the form of purposeful & regular gemba time is an excellent way of doing all three. “Holy cow, the President was just here. She remembered my name and thanked us for making our problems visible and taking the lead in fixing them. She had some good suggestions & she’d be back again next month.”

In summary, if leaders at all levels embody the organization’s values, team members will embrace its purpose and management system.

Connections

Connections are the magnetic force that animates our management system. Each team has multiple connections – to our internal customers and suppliers, and to our ultimate customer. Strong connections entail reflecting on and answering challenging questions:

Just who are our customers? What do they need from us? What are the critical few metrics that express those needs? How do we make our current condition visible, so that we can see our biggest problems – and fix them?

To answer such questions, we need a supportive management system and culture. At our splendid Toyota site in Cambridge Ontario, it was understood that the downstream process was our customer, and that we’d have a stand-up meeting every morning to reflect on how we did the day before. If we in the Paint shop had delivered junk to the Assembly shop, we took it personally. I was letting down Freddie and his team. At shift end, all of us suppliers to Assembly shop met at the ‘money board’ to reflect on how we’d done, and how we’d improve.

Big Company Disease, the nemesis in many of my books, weakens such connections and can be a mortal threat. Big Company Disease usually begins with hubris – arrogance, haughtiness, excessive pride. “He who the gods would destroy, they first hold high…”, Euripides tells us.

Sometimes, industry structure inherently hinders connections. Government agencies (almost always monopolies), are perhaps the most obvious example. In the absence of competition, why should anybody care about the customer? To be sure, even here, fine people are fighting the good fight. A deep bow here to Governor Doug Ducey and the team in the great state of Arizona, who are building the Arizona Management System to make government work for the people. Imagine that…

But would this splendid enterprise flourish under a less diligent governor? And what happens when Governor Ducey moves on? Indeed, building and sustaining connections are the Achilles’ Heel of public service.

Increasingly, rapidly advancing technology can weaken connections. I remember a strategy session with a senior Silicon Valley team, who spent much of the time berating customers for being ‘so out of it’.

“What do you think?” the senior leader asked me at session’s end. “I think you hate your customers,” my reply.

In summary, Lean is hard to sustain because of a) our human hard-wiring, as described in my earlier blog, and b) organizational elements that weaken Standards and Connections, as described above.

Excellent is a game with endless innings. At best we partially succeed – and that makes all the difference.

Best regards,

Pascal




In case you missed our last few blogs... please feel free to have another look…

The Trouble with Corporate Clichés
Economy I and II - Never the Twain Shall Meet?
Strategy is Not About Doing What’s “Important”
Agriculture - The Next Frontier?


Monday, June 28, 2021

The Fog of Big Company Disease

By Pascal Dennis (bio)

Last time I talked about Big Company Disease and suggested that a key symptom is The Fog…

(It’s fun capitalizing it, and reminds me of a goofy same-name horror movie.

A pal & I have had great fun making up horror movie titles related to, ahem, other atmospheric emissions.)

Joking aside, the Fog is deeply frustrating and debilitating. Here are some symptoms:

Your purpose is unclear. You're not sure who your customers or suppliers are.

You don't know if you're ahead or behind.

You can't see your biggest problems.

So you spend a great deal of time in the "spin cycle".

Life becomes unpleasant so you naturally look for someone to blame.

You buffer the chaos with capacity -- your time.

Eventually, you burn out.

The leader’s most important job, in my view, is making the current condition visible – by gradually dispersing the Fog.

Visual management, standardized work and other core Lean tools are terrific enablers.

Lean principles & thinking are even better.

Best regards,

Pascal




In case you missed our last few blogs... please feel free to have another look…

What is a Team?
Target, Actual, Please Explain
Why Do ‘Smart’ People Struggle with Strategy?
Social Media & the Lean Business System -- Risks & Opportunities



Monday, November 16, 2020

Why is laughter important in business?

By Pascal Dennis (bio)

Because it makes things small and personal -- and thereby helps to dispel Big Company Disease.

Big companies take themselves seriously. Laughter punctures the balloon and drenches things in the light of sanity.

For organizations big & small, I'd say "embrace your inner smallness".

I give a talk called "Everything I Learned I Learned in a Greek Restaurant"

People seem to like it.


Greek restaurants are the epitome of small, fast and funny.

Small and fast always beats big and slow.

That's it.

Pascal




In case you missed our last few blogs... please feel free to have another look…

Practical Problem Solving – Proving Cause & Effect
Lean Means Don’t Be a Dumb-Ass
Lean – So ‘Easy’, It’s Hard
“Failing to Plan is Planning to Fail”



Monday, June 12, 2017

On Big Data

By Pascal Dennis (bio)

Big data is all the rage these days. Big consulting houses and IT touts assure us that the next big breakthrough is just around the corner.

And all we need is self-appointed experts and super computers that crunch through all our ‘data’ and make sense of everything for us.

Don’t’ want to be misunderstood. There is a place for experts and for super computers, and the wise are always open to new thinking.


But do we really believe that Big Data is going to solve our problems?

Do we even understand our ‘small data’? In other words, do we understand our current condition? Stuff like:

  • Purpose
  • Core metrics
    • Targets versus Actual
    • Trends & patterns
  • Top 3 acute problems
  • Top 3 chronic problems
  • Degree of engagement of our teams
  • Problem solving capability of our teams
  • Overall capability of our team members
  • Capability of our machines & equipment
  • Capability of our processes

And these questions, of course, apply at each level of our management system from Level 1 – front line on up.

Comparatively few organizations can answer these questions in the affirmative.

Truth be told, many (most?) organizations flounder about in the fog of Big Company Disease [The Remedy], no?

It’s not incompetence or ill will. It is the nature of large organizations, organisms that are still comparative newcomers to the human scene.

It takes great skill and tenacity to disperse the fog, and keep it from seeping back in. Companies that thereby understand their ‘small data’ are akin to the one-eyed man in the kingdom of the blind.

So before we grasp at the straws of Big Data, let’s build our management systems so we can understand our ‘small data’ – like the world’s best organizations do.

Regards,

Pascal


Monday, April 17, 2017

In Chess & Business, Lies & Hypocrisy Do Not Last Long

By Pascal Dennis (bio)

I paraphrase the great Emmanuel Lasker, philosopher, mathematician, and world chess champ from 1894 to 1920.

I encourage you all to play chess. It’s fun, engrossing and wonderful for the mind. Chess’s wildly romantic history and mythology is an added bonus.

(Nowadays you can download grandmaster level chess programs on to your Pad!)

One of the great charms of chess is its binary nature.

You win or lose based on

  • The strength of your ideas, and
  • Your skill & courage in implementing them

Is Lasker's maxim true in business?

In small business, I'd say Yes.

Our success or failure depends on the depth of our strategic understanding, and the energy & intelligence with which we execute.

(Luck plays a part too, of course, as always & everywhere.)

How about BIG business?

Based on my experience, I'd say Yes - with important reservations.

Monopoly, oligopoly, and market rigging (e.g. to keep competition out) are all too common.

(The countermeasure is intelligent regulation in accord with the "Less is More" principle)

Another exception is large companies suffering from Big Company Disease, the villain in my last book, The Remedy.

Perhaps the greatest power of the Toyota management system (aka "Lean") is its ability to make problems visible.

Lasker might add, "thereby, we expose lies & hypocrisy."

Good Lean companies are thus, a meritocracy. The best & brightest prosper, and bozos are exposed.

Play chess, have fun, kick butt and take names.

Best,

Pascal



Monday, March 6, 2017

Why is Lean So Hard? – Organizational Elements

By Pascal Dennis (bio)

Lean – So Easy, It’s Hard’ seems to have hit home. Thanks for all the thoughtful comments.

In this piece I focused on our personal qualities that make Lean so hard to sustain (e.g. our innate trickiness and laziness).


A number of folks asked me to talk some more about organizational elements that hinder Lean.

Lean’s foundation is Standards and Connections – (Rules 1 and 2 of the Four Rules articulated by our MIT friend & colleague, Dr Stephen Spear, whose work I recommend highly.)

What organizational elements or qualities weaken or hinder Standards and Connections?

Standards

A standard is a picture of ‘What Should Be Happening’ (WSBH), our current ‘least-waste-way’ of doing a given task, the best way we know today. Most often, the front line team defines our standards for doing our work.

Senior leaders define WSBH in the form of organizational goals, the management system through which we run and improve our business, and our values (standards of behavior).

Here’s the rub: If senior leaders fail to meet the latter, our team members will ignore the former. Senior leaders have to embody our Values. If not, team members will pay scant attention to our organization’s goals & management system.

Think about that – team members will ignore our Purpose and our way of working. Can decay be far off? I’m reminded of Peter Drucker’s elegant summation of the Leader’s Purpose: 1) Get business results, 2) Create capability, and 3) Reinforce values.

Leader visibility in the form of purposeful & regular gemba time is an excellent way of doing all three. “Holy cow, the President was just here. She remembered my name and thanked us for making our problems visible and taking the lead in fixing them. She had some good suggestions & she’d be back again next month.”

In summary, if leaders at all levels embody the organization’s values, team members will embrace its purpose and management system.

Connections

Connections are the magnetic force that animates our management system. Each team has multiple connections – to our internal customers and suppliers, and to our ultimate customer. Strong connections entail reflecting on and answering challenging questions:

Just who are our customers? What do they need from us? What are the critical few metrics that express those needs? How do we make our current condition visible, so that we can see our biggest problems – and fix them?

To answer such questions, we need a supportive management system and culture. At our splendid Toyota site in Cambridge Ontario, it was understood that the downstream process was our customer, and that we’d have a stand-up meeting every morning to reflect on how we did the day before. If we in the Paint shop had delivered junk to the Assembly shop, we took it personally. I was letting down Freddie and his team. At shift end, all of us suppliers to Assembly shop met at the ‘money board’ to reflect on how we’d done, and how we’d improve.

Big Company Disease, the nemesis in many of my books, weakens such connections and can be a mortal threat. Big Company Disease usually begins with hubris – arrogance, haughtiness, excessive pride. “He who the gods would destroy, they first hold high…”, Euripides tells us.

Sometimes, industry structure inherently hinders connections. Government agencies (almost always monopolies), are perhaps the most obvious example. In the absence of competition, why should anybody care about the customer? (You may recall my recent ‘Agita at Air Canada’ piece…) To be sure, even here, fine people are fighting the good fight. A deep bow here to Governor Doug Ducey and the team in the great state of Arizona, who are building the Arizona Management System to make government work for the people. Imagine that… [video]

But would this splendid enterprise flourish under a less diligent governor? And what happens when Governor Ducey moves on? Indeed, building and sustaining connections are the Achilles’ Heel of public service.

Increasingly, rapidly advancing technology can weaken connections. I remember a strategy session with a senior Silicon Valley team, who spent much of the time berating customers for being ‘so out of it’.

“What do you think?” the senior leader asked me at session’s end. “I think you hate your customers,” my reply.

In summary, Lean is hard to sustain because of a) our human hard-wiring, as described in my earlier blog, and b) organizational elements that weaken Standards and Connections, as described above.

Excellent is a game with endless innings. At best we partially succeed – and that makes all the difference.

Best regards,

Pascal



Monday, March 14, 2016

Reprise: In Chess (& Small Business) Lies & Hypocrisy Do Not Last Long

By Pascal Dennis

I paraphrase the great Emmanuel Lasker, philosopher, mathematician, and world chess champ from 1894 to 1920.

One of the great charms of chess is its binary nature.

You win or lose based on

  • The strength of your ideas, and
  • Your skill & courage in implementing them

(Note: nowadays you can download grandmaster level chess programs on to your iPad!)

Is Lasker's maxim true in business?

In small business, I'd say Yes.

Our success or failure depends on the depth of our strategic understanding, and the energy & intelligence with which we execute.

(Luck plays a part too, of course, as always & everywhere.)

How about BIG business?

Based on my experience, I'd say Yes - with important reservations.

Monopoly, oligopoly, and market rigging (e.g. to keep competition out) are all too common.

(The countermeasure is intelligent regulation in accord with the "Less is More" principle)

Another exception is large companies suffering from Big Company Disease, the villain in my last book, The Remedy

Perhaps the greatest power of the Toyota Business System (aka "Lean") is its ability to make problems visible.

Lasker might add, "thereby, we expose lies & hypocrisy."

Good Lean companies are thus, a meritocracy.

The best & brightest prosper, and bozos are exposed.

Best,

Pascal


Thursday, May 28, 2015

Reprise: Why is laughter important in business?

By Pascal Dennis

Because it makes things small and personal -- and thereby helps to dispel Big Company Disease.

Big companies take themselves seriously. Laughter punctures the balloon and drenches things in the light of sanity.

For organizations big & small, I'd say "embrace your inner smallness".

I give a talk called "Everything I Learned I Learned in a Greek Restaurant"

People seem to like it.


Greek restaurants are the epitome of small, fast and funny.

Small and fast always beats big and slow.

That's it.

Pascal


Thursday, May 21, 2015

Reprise - Scatter - a Symptom of Big Company Disease

By Pascal Dennis

By scatter, I mean the tendency large organizations have of disassembling the PDCA cycle - and giving different parts to different people.

One group develops the Plan, another deploys the Plan, yet another monitors the Plan.


Sometimes a fourth group is responsible for adjusting the plan.

More often, though, there is no adjustment. We just hope what's left of the Plan will quietly fade away.

The role of a Key Thinker (Deployment Leader, 'Control Department' at Toyota) is to "wrap their arms around" the problem -- and to shepherd it through the entire PDCA cycle.

Thus, you have a holistic understanding of what's happening - and a much better chance of making diagnoses & adjustments.

I see scatter is New Production Development, Marketing, Engineering and Strategic Planning in general.

We like to take things apart.

That's okay, so long as we put them back together.

And so long as one person is charged with seeing the whole chessboard, and grasping the unfolding story.

Best,

Pascal


Monday, August 11, 2014

Reprise: The Fog of Big Company Disease

By Pascal Dennis

Last time I talked about Big Company Disease and suggested that a key symptom is The Fog…

(It’s fun capitalizing it, and reminds me of a goofy same-name horror movie.

A pal & I have had great fun making up horror movie titles related to, ahem, other atmospheric emissions.)

Joking aside, the Fog is deeply frustrating and debilitating. Here are some symptoms:

Your purpose is unclear. You're not sure who your customers or suppliers are.

You don't know if you're ahead or behind.

You can't see your biggest problems.

So you spend a great deal of time in the "spin cycle".

Life becomes unpleasant so you naturally look for someone to blame.

You buffer the chaos with capacity -- your time.

Eventually, you burn out.

The leader’s most important job, in my view, is making the current condition visible – by gradually dispersing the Fog.

Visual management, standardized work and other core Lean tools are terrific enablers.

Lean principles & thinking are even better.

Best regards,

Pascal


Thursday, August 7, 2014

Reprise: What is Big Company Disease and how do we get it?

By Pascal Dennis

Big Company Disease (BCD) is the antagonist in The Remedy, and the toughest opponent Tom Papas and Andy Saito have ever faced.

BCD infects companies once they reach a certain size. In a small business, you typically can see your customer and supplier.

You get to understand them and appreciate that your success depends on them. It keeps you humble and hungry to improve.

In other words, in small companies it’s much easier to develop & sustain direct, binary, self-diagnostic connections between suppliers & customers (both internal & external).

My favorite example of these is my Dad at the Imperial Grill, looking into each plate as it came back.


Did the customer eat everything?

If not, why not? He’d usually ask them directly. “Hey Mabel, why didn’t you finish your moussaka?”

Once a company grows to multiple sites, perhaps in different countries, and multiple divisions – customers and suppliers lose touch.

You can't wrap your mind or your arms around the organization. Out of site is out of mind. So you optimize what you can see -- your zone.

With the best of intentions, we optimize our unit -- often at the expense of overall effectiveness.

Not all big companies have BCG -- but all are prone to it.

We have to work hard to dispel the anaesthetizing fog, connect with our customers, make our purpose and our problems visible.

Lean Thinking & Lean Tools are geared to do this.

Then we have to continually work on our connections, and on involving everybody in improvement. It wakes us up.

Next time, more on The Fog…

Best,

Pascal


Monday, April 28, 2014

What's Holding Back Human Resources? Part 1

By Pascal Dennis

Another splendid Jack & Suzie Welch op-ed piece – this one on the travails of HR.

As always, their insight is penetrating & unflinching.

HR should be as important as Finance, but rarely is. HR leaders should have a place in the inner sanctum of decision-makers, but rarely do.

Indeed, a baseball analogy comes to mind: HR in a large organization should be akin to, say, the Boston Red Sox Player Development function.

Instead, more often than not, HR activities devolve into the ‘cloak & dagger society’ or health & happiness sideshow Jack describes.


So here’s a question for y’all:

In your experience, what’s holding HR back? Why can’t it play the role Jack the Great, and your humble correspondent would like to see it play?

Looking forward to hearing your thoughts!

Here are a few of mine, such as they are.

Too often, HR leaders are process illiterate – they can’t see processes, let alone improve them.

Thus, HR processes become opaque, bureaucratic & ineffective. (Chapter 12 of The Remedy provides a fictional account of one such HR group.)

Secondly, management fundamentals such as Value & Waste consciousness, visual management, standardized work, team huddles and the like are often lacking.

The anaesthetizing fog of Big Company Disease rolls and all bets are off.

HR’s customer groups sense it, and stay away in droves.

Unscrupulous HR leaders are then drawn by the Dark Arts such as favoritism, rumor-mongering and other forms of malevolent politics.

Well-meaning HR leaders are drawn to health & happiness activities, but know deep down, that they’re barely scratching the surface.

More to come.

Really looking forward to hearing your thoughts too.

Best,

Pascal


Thursday, March 28, 2013

Scatter - a Symptom of Big Company Disease

By Pascal Dennis

By scatter, I mean the tendency large organizations have of disassembling the PDCA cycle - and giving different parts to different people.

One group develops the Plan, another deploys the Plan, yet another monitors the Plan.

Sometimes a fourth group is responsible for adjusting the plan.

More often, though, there is no adjustment. We just hope what's left of the Plan will quietly fade away.

The role of a Key Thinker (Deployment Leader, 'Control Department' at Toyota) is to "wrap their arms around" the problem -- and to shepherd it through the entire PDCA cycle.

Thus, you have a holistic understanding of what's happening - and a much better chance of making diagnoses & adjustments.

I see scatter is New Production Development, Marketing, Engineering and Strategic Planning in general.

We like to take things apart.

That's okay, so long as we put them back together.

And so long as one person is charged with seeing the whole chessboard, and grasping the unfolding story.

Best,

Pascal

Thursday, January 17, 2013

In Chess (& Small Business) Lies & Hypocrisy Do Not Last Long

By Pascal Dennis

I paraphrase the great Emmanuel Lasker, philosopher, mathematician, and world chess champ from 1894 to 1920.

One of the great charms of chess is its binary nature.

You win or lose based on

  • The strength of your ideas, and
  • Your skill & courage in implementing them

(Note: nowadays you can download grandmaster level chess programs on to your Pad!)

Is Lasker's maxim true in business?

In small business, I'd say Yes.

Our success or failure depends on the depth of our strategic understanding, and the energy & intelligence with which we execute.

(Luck plays a part too, of course, as always & everywhere.)

How about BIG business?

Based on my experience, I'd say Yes - with important reservations.

Monopoly, oligopoly, and market rigging (e.g. to keep competition out) are all too common.

(The countermeasure is intelligent regulation in accord with the "Less is More" principle)

Another exception is large companies suffering from Big Company Disease, the villain in my last book, The Remedy

Perhaps the greatest power of the Toyota Business System (aka "Lean") is its ability to make problems visible.

Lasker might add, "thereby, we expose lies & hypocrisy."

Good Lean companies are thus, a meritocracy.

The best & brightest prosper, and bozos are exposed.

Best,

Pascal

Thursday, September 27, 2012

Tom Papas & Andy Saito - Ten Years Later

By Pascal Dennis

About ten years ago I had an idea for a novel.

I envisioned an auto plant manager whose life was in shambles, and a damaged ex-Toyota executive.

A deshi and sensei coming together in an unlikely friendship, and helping to heal one another thereby.

I saw a New Jersey auto plant in a death spiral, full of tension, despair and waste, unable to right itself despite the best of intentions.

These images became Andy & Me, whose characters and factory came to life for me.


Andy & Me was awarded the Shingo Prize and was commercial & critical success.

I was a bit shocked. Didn't think anybody would care for a 'factory novel.'

The characters, Tom & Andy, seemed to strike a chord. I'm been humbled by the personal feedback I've received.

I remember a young engineer who told me she cried when Andy revealed his 'secret' to Tom.

(Was it that bad, I wondered? Then I realized she had been moved in a good way!)

Tom & Andy's adventures continue in The Remedy - Bringing Lean Out of the Factory...

Tom & Andy take on not just a factory, but an entire automotive platform.

I wanted to express what I've learned working upstream & downstream of the factory.

The economic chaos of 2008 and 2009 informs The Remedy.

How could the splendid, historic Detroit auto companies have fallen so far, I wondered?

In fact, Tom & Andy seek the remedy to Big Company Disease.

Again, your response has been very kind. (Thank you.)

Where will Tom & Andy go next?

Not sure -- but they're up to something...

Best,

Pascal

Monday, June 4, 2012

Fragmentation

By Pascal Dennis

It's one of the most common failure modes in Lean transformations.

Here's perhaps the most important example:

Fragmentation of the PDCA cycle.


One group plans, another deploys & implements the plan.

Yet another checks the plan, and a fourth group adjusts it.

Nobody sees the entire chessboard, so we keep on making bad moves.

Indeed, we don't play chess -- we push wood.

Great Lean companies continually seek to integrate PDCA cycles.

Toyota's famous Chief Engineer or Shusa is nothing if not an integrator.

I remember the Corolla Shusa & his team, visiting our Toyota Cambridge plant year after year.

I had an image of him wrapping his arms around the entire platform.

Thereby, we have a chance at connecting the disparate silos that are perhaps the most obvious symptom of Big Company Disease.

So, here's a homework assignment.

Take a walk around your gemba and assess how well your organization integrates the PDCA cycle.

Are there people that wrap their arms around critical strategies, problems, product lines, value streams etc.?

Are your management processes designed to integrate the elements of PDCA?

If not, how might you improve?

Monday, April 16, 2012

Big Company Disease - The Worst Case Yet?

By Pascal Dennis

Akio Toyoda made headlines a few years ago when he attached the above label to his family's iconic company.

Subsequent events, sadly, proved he was correct.

Toyota has been cleared of any wrong-doing. Not a single claim of unintended acceleration proved to be justified.

Nonetheless, Mr. Toyoda believes his company has Big Company Disease & has dedicated himself to a cure.

Sony, another iconic brand, has also acknowledged the problem.

Sir Howard Stringer, Sony's CEO, has cited BCG and disconnected silos, as a root cause of their malaise.

In my book, The Remedy -- Bringing Lean Out of the Factory to Transform the Entire Organization, I tried to make the symptoms of BCG tangible and visible:
  1. Fog,

  2. Silos,

  3. Invisible problems,

  4. Absence of learning

The book is the tale of one company's battle with BCG, the obstacles they encounter, and countermeasures they apply.

But recently, I believe I may have found the worst case of BCG I've ever seen -- Japan's nuclear industry.


The following piece from The Japan Times speaks for itself:

"Considering the result (of the test), we are quite certain that the thermometer is not working properly."

"It is nearly unthinkable that the temperature of the pressure vessel can go up this high at this point."

Not only are problems invisible, but we consciously ignore those that are painfully, catastrophically visible.

Mama mia...