Order Out of Chaos
Craig Mercer's thoughts on the nature of variation and "crossing the streams" of Project Management with Benefits Realization Management, Organizational Change Management and Process Improvement (Lean Design).
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Apr 19 2015

Culture eats strategy for breakfast

Culture east strategy for breakfast.

Attributed to Peter Drucker (Wikipedia) but popularized by Mark Fields (Wikipedia) of Ford Motor Company in 2006.

What it means to me in “ProjectLand” is that methodology must be created and continually tweaked in lockstep with organizational culture because failure to do so will almost certainly result in the failure of the methodology specifically and call into question the usefulness of strategy/change/project/process improvement management generally.

By Craig "hachiroku" Mercer • Maxims •

Apr 18 2015

Four Realities of Change

Before engaging in any change process, leaders would do well to review the Four Realities of Change as identified by Timothy Clark in his book EPIC Change (page 111):

  1. You don’t have all the facts
  2. You can’t remove all the risk
  3. You can’t promise zero loss
  4. You can’t eliminate the pain

What this means is that as a change leader you should not pretend that these realities don’t exist and when communicated will go much further in producing trust in those who you would have join you in the organizational change.

By Craig "hachiroku" Mercer • Change Management, Maxims •

Apr 11 2015

Thoughts on Variation

Don’t attribute (good or bad) to people that which should be attributed to the system.

What is variation?

  • a change or difference in condition, amount, or level, typically with certain limits

Impact of Variation

Variation results in:

  • adverse patient safety events
  • reduced job satisfaction
  • loss of productivity
  • loss of revenue
  • …so we should try and reduce variation.

Types of Variation

There are two types of variation and they require different approaches to remove them

Common-cause variation is characterised by:

  • Phenomena constantly active within the system;
  • Variation predictable probabilistically;
  • Irregular variation within an historical experience base; and
  • Lack of significance in individual high or low values.

Special-cause variation is characterised by:

  • New, unanticipated, emergent or previously neglected phenomena within the system;
  • Variation inherently unpredictable, even probabilistically;
  • Variation outside the historical experience base; and
  • Evidence of some inherent change in the system or our knowledge of it.

Determining Variation Types

Hey Craig! How can we understand what kind of variation we are dealing with?

Common Cause Examples

  • Lack of clearly defined standard operating procedures
  • Inappropriate procedures
  • Normal wear and tear
  • Variability in settings
  • Computer response time
  • Poor design
  • Poor maintenance of machines
  • Poor working conditions, e.g. lighting, noise, dirt, temperature, ventilation
  • Substandard raw materials
  • Ambient temperature and humidity
A flat tire is common cause variation
A flat tire is common cause variation. It’s normal wear and tear. Which is why all vehicles are equipped with a spare tire, jack etc.

Special Cause

  • Operator falls asleep
  • Machine malfunction
  • Computer crashes
  • Poor batch of raw material
  • Power surges
  • Broken part
  • Abnormal traffic (click-fraud) on web ads
  • Extremely long lab testing turnover time due to switching to new computer system
  • Operator absent
4 slashed tires is special cause variation
Someone slashing all four of your tires is special cause variation. It’s not anticipated and there is not much you can do about it.

Responding to Variation

  • Response to common cause variation is incremental and requires data (measurement)
  • Response to special cause tends to be knee-jerk and expensive.

So why do we care Craig?

We should care because more often than not the wrong type of variation is suspected and then the wrong response is applied (tampering), which is not only more expensive but it negatively impacts the staff working within the system.

For example, what was the reaction to the 9/11 attacks in the United States? They spent billions of dollars tampering with the system (a common cause response) that ultimately has not increased safety because it was not the source of the variation in the first place. The nature of special cause variation is that it never happens the same way twice (which is why the terrorists opted for shoe explosives instead of box cutters the next time around).

For more information I highly recommend this post at the Gemba Walkabout: http://gembawalkabout.tumblr.com/post/34257410679/understand-variation-the-forgotten-principle.

By Craig "hachiroku" Mercer • Quality (Systems Thinking), Variation •

Apr 11 2015

The Wisdom Hierarchy

 

DATA (know what, where, when)

Symbols that represent, characteristics of objects or events (individual facts)

INFORMATION (know of)

Processed data, describes “who?” “what?” “when?” “where?” “how many”

KNOWLEDGE (know how)

Instructs “how to?”

UNDERSTANDING (know why)

Explains “why?”

WISDOM (know worth)

The ability to see the consequences of our actions by evaluating information, knowledge and understanding

 

See Ben Rockwood’s excellent summary of Russell L. Ackoff’s Wisdom Hierarchy  here: http://cuddletech.com/?p=520.

By Craig "hachiroku" Mercer • Quality (Systems Thinking) •

Jan 8 2015

Framework VS Methodology

I often come across misunderstandings in what a framework is versus a methodology. Which is quite understandable as there is precious little agreement even in the literature available on the internet. I have found a couple of definitions below that I believe adequately capture the essence of the difference.

Framework:

In general, a framework is a real or conceptual structure intended to serve as a support or guide for the building of something that expands the structure into something useful.
Source: http://whatis.techtarget.com/definition/framework

Framework = WHAT (and perhaps WHY)

Methodology:

A documented approach for performing activities in a coherent, consistent, accountable, and repeatable manner.
Source: http://en.wikipedia.org/wiki/Treasury_Enterprise_Architecture_Framework

Methodology = HOW

Key Distinctions

  • Frameworks are high level (high enough that all organizations could see their work in it) while methodologies are specific to the organizations they are developed in.
  • Frameworks can be applied anywhere (are interchangeable) while methodologies tend to only work where they were developed.
  • Methodologies are step by step instructions and are developed based on frameworks.

The PMBOK is a framework applicable to all projects.


 

The Island Health Project Management Methodology is specific to the organization.

By Craig "hachiroku" Mercer • Key Terms •

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