The e-newsletter for leaders who are passionate about learning the latest concepts and implementation approaches for lean enterprise transformation.

 
       
   

 
  Current Issue: Volume 2 Issue 1 - Management Goal Obsession
President's Column

Gartner's IT Symposium:

"IT Must Claw Its Way Back to Relevance"

Providing advice that might sound all too familiar, IT advisor Gartner kicked off its Symposium 2004- an event that reviews the state of IT- with calls for software agility.

"Software must become much more fluid, and it needs to adapt without constant redesign," said Jeff Comport, a Gartner analyst presenting at the October 17-22 event in Orlando. Comport noted that current applications tend to lock companies into rigid business models. For example, one Gartner client cited had invested $20 million in an 18-month enterprise application implementation, only to find that the business had changed by the time the system went live.

The underlying message from Gartner at the Symposium is that IT needs to claw its way back to relevance. "Many of you are great managers of technology infrastructure, but that's not the future. You need to lead new initiatives that can innovate the business, rather than simply keeping the lights on." said Comport.

Well said. Even technology experts understand that IT is not the silver bullet often promised by software vendors. Our message: first train your people with lean thinking principles; then empower them to eliminate waste from your processes. Lastly, consider applying technology as appropriate.

-- Mark Edmondson


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Real Stories:
An Encounter with
Management Goal Obsession

In the movie "The Bridge on the River Kwai", the lead character, Colonel Nicholson, is a prisoner of war in Burma who leads his men to build a bridge for his Japanese captors. Nicholson is an officer of high integrity, dedicated to excellence, a great leader of men -- and thus well trained to complete any goal that he is given. So he builds a beautiful bridge. By the film's end, he finds himself in the painful position of defending the bridge from attack by fellow officers who want to destroy it to prevent Japanese trains from using it. There's a chilling moment of realization, right before he detonates the bridge, when Nicholson (played by Alec Guinness) utters the famous line,

"What have I done?"

This is goal obsession. He was so focused on his goal -- building the bridge -- that he forgot the larger mission of winning the war. It's the force at play when we get so wrapped up in achieving our goal that, like Colonel Nicholson, we do it at the expense of a larger mission. It's one of those paradoxical traits that's usually the source of our success, but taken too far can become a cause of failure. You see this when people become fixated on the wrong goals. Given their history of success, they end up achieving a result that does more damage than good to themselves, their team, their company, and even their family.

I recently encountered an example of goal obsession during a visit with the senior management team of a $300m manufacturer.

"How do you measure success?" I asked the VP of Manufacturing...


Q4 CEO Survey Results:
Continued Growth Expected;
Increased Hiring and Investment for 2005

American CEOs see business and the economy looking up, according the Q4 2004 TEC Confidence Index, which drew participation by a record 2,308 CEOs. The Q4 Index rose to 111.8, up from 110.4 in the prior quarter, demonstrating confidence in continued expansion of the economy during 2005.

"Firms plan on increasing their hiring and investment plans to benefit from what they expect will be a continued strong economic expansion during 2005," said Richard Curtin, Ph.D., director of consumer surveys at the University of Michigan, and consultant for the TEC Confidence Index. "Although firms expect the expansion to proceed at a strong pace of growth, they thought it would slow to a more sustainable but still robust pace of growth during 2005."

Survey highlights:

  • More than two-thirds of CEOs think economic conditions are better than a year ago, while seven percent feel conditions are worse than 12 months ago.
  • 58 percent expect conditions to be better in 2005 than today, while 34 percent expect they will be about the same as now.
  • CEOs plan to increase their total number of employees by the highest proportion in the nearly two years that this survey has been conducted, posting a quarterly gain of 3.7 percent.
  • 83 percent expect their revenues to increase during the next 12 months.

TEC ("The Executive Committee") is an international community of over 10,000 chief executives, mostly from companies with annual revenues between $5 million and $1 billion. The TEC Confidence Index is the largest sample-size survey of chief executives and presidents conducted in the U.S.


From Stanford:
On-line Factory Tour Videos

 

 

 

If you're fascinated by touring manufacturing plants like we are, then you've got to check out "How Everyday Things are Made", a Website created by the Alliance for Innovative Manufacturing at Stanford University. They have four hours of on-line videos showing everything from how they get the chartreuse coating on a jelly bean to the assembly airplanes, the forging of steel parts, and plastic injection molding.

You'll enjoy plant tours covering over 40 different products and manufacturing processes. Think of it as your own private factory tour library.


 

Current Issue

Volume 3 Issue 5 :
Lean Consumption

Previous Issues

Volume 3 Issue 4:
Performance Measurement

Volume 3 Issue 3:
Organizational Innovation

Volume 3 Issue 2:
Looking Lean

Volume 3 Issue 1:
Lean Management Systems

Volume 2 Issue 4:
Peter Drucker Tribute

Volume 2 Issue 3:
Ranking & Right Sizing

Volume 2 Issue 2:
Mediocre Emergency

Volume 2 Issue 1:
Goal Obsession

Volume 1 Issue 2:
Enterprise Software

Volume 1 Issue 1:
Technology