Shipulski On Design

Archive for the ‘Fundementals’ Category

If you want new behavior, you must embrace conflict.

If you can’t tolerate the conflict, you’ll do what you did last time.

If your point of view angers half and empowers everyone else, you made a difference.

If your point of view meets with 100% agreement, you wasted everyone’s time.

If your role is to create something from nothing, you’ve got to let others do the standard work.

If your role is to do standard work, you’ve got to let others create things from scratch.

If you want to get more done in the long term, you’ve got to make time to grow people.

If you want to get more done in the short term, you can’t spend time growing people.

If you do novel work, you can’t know when you’ll be done.

If you are asked for a completion date, I hope you’re not expected to do novel work.

If you’re in business, you’re in the people business.

If you’re not in the people business, you’ll soon be out of business.

If you call someone on their behavior and they thank you, you were thanked by a pro.

If you call someone on their behavior and they call you out for doing it, you were gaslit.

If you can’t justify doing the right project, reduce the scope, and do it under the radar.

If you can’t prevent the start of an unjust project, find a way to work on something else.

If you are given a fixed timeline and fixed resources, flex the schedule.

If you are given a fixed timeline, resources, and schedule, you’ll be late.

If you get into trouble, ask your Trust Network for help.

If you have no Trust Network, you’re in trouble.

If you have a problem, tell the truth and call it a problem.

If you can’t tell the truth, you have a big problem.

If you are called on your behavior, own it.

If you own your behavior, no one can call you on it.

Image credit – Mary Trebilco

Company leaders deserve to know the truth, but they can no longer take the time to learn it.

Company leaders are pushed too hard to grow the business and can no longer take the time to listen to all perspectives, no longer take the time to process those perspectives, and no longer take the time to make nuanced decisions. Simply put, company leaders are under too much pressure to grow the business.  It’s unhealthy pressure and it’s too severe.  And it’s not good for the company or the people that work there.

What’s best for the company is to take the time to learn the truth.

Getting to the truth moves things forward.  Sure, you may not see things correctly, but when you say it like you see it, everyone’s understanding gets closer to the truth.  And when you do see things clearly and correctly, saying what you see moves the company’s work in a more profitable direction.  There’s nothing worse than spending time and money to do the work only to learn what someone already knew.

What’s best for the company is to tell the truth as you see it.

All of us have good intentions but all of us are doing at least two jobs. And it’s especially difficult for company leaders, whose responsibility is to develop the broadest perspective.  Trouble is, to develop that broad perspective sometime comes at the expense of digging into the details. Perfectly understandable, as that’s the nature of their work. But subject matter experts (SMEs) must take the time to dig into the details because that’s the nature of their work. SMEs have an obligation to think things through, communicate clearly, and stick to their guns.  When asked broad questions, good SMEs go down to bedrock and give detailed answers. And when asked hypotheticals, good SMEs don’t speculate outside their domain of confidence. And when asked why-didn’t-you’s, good SMEs answer with what they did and why they did it.

Regardless of the question, the best SMEs always tell the truth.

SMEs know when the project is behind. And they know the answer that everyone thinks will get the project get back on schedule. And the know the truth as they see it. And when there’s a mismatch between the answer that might get the project back on schedule and the truth as they see it, they must say it like they see it.  Yes, it costs a lot of money when the project is delayed, but telling the truth is the fastest route to commercialization. In the short term, it’s easier to give the answer that everyone thinks will get things back on track. But truth is, it’s not faster because the truth comes out in the end.  You can’t defy the physics and you can’t transcend the fundamentals.  You must respect the truth. The Universe doesn’t care if the truth is inconvenient.  In the end, the Universe makes sure the truth carries the day.

We’re all busy.  And we all have jobs to do. But it’s always the best to take the time to understand the details, respect the physics, and stay true to the fundamentals.

When there’s a tough decision, understand the fundamentals and the decision will find you.

When there’s disagreement, take the time to understand the physics, even the organizational kind. And the right decision will meet you where you are.

When the road gets rocky, ask your best SMEs what to do, and do that.

When it comes to making good decisions, sometimes slower is faster.

Image credit — Dennis Jarvis

Efficiency is a simple measurement – output divided by resources needed to achieve it. How much did you get done and how many people did you need to do it? What was the return on the investment? How much money did you make relative to how much you had to invest? We have efficiency measurements for just about everything. We are an efficiency-based society.

It’s easy to create a metric for efficiency. Figure out the output you can measure and divide it by the resources you think you used to achieve it. While a metric like this is easy to calculate, it likely won’t provide a good answer to what we think is the only question worth asking– how do we increase efficiency?

Problem 1. The resources you think are used to produce the output aren’t the only resources you used to generate the output.  There are many resources that contributed to the output that you did not measure. And not only that, you don’t know how much those resources actually cost.  You can try the tricky trick of fully burdened cost, where the labor rate is loaded with an overhead percentage.  But that’s, well, nothing more than an artifact of a contrived accounting system. You can do some other stuff like calculate the opportunity cost of deploying those resources on other projects. I’m not sure what that will get you, but it won’t get you the actual cost of achieving the output you think you achieved.

Problem 2. We don’t measure what’s important or meaningful.  We measure what’s easy to measure.  And that’s a big problem because you end up beating yourself about the head and shoulders trying to improve something that is easy to measure but not all that meaningful. The biggest problem here is local optimization.  You want something easy to measure so you cull out a small fraction of a larger process and increase the output of that small part of the process.  The thing is, your customer doesn’t care about the efficiency of that small piece of that process.  And, improving that small piece likely doesn’t do anything for the output of the total process.  If more products aren’t leaving the factory, you didn’t do anything.

Problem 3. Productivity isn’t all that important. What’s important is effectiveness.  If you are highly efficient at the wrong thing, you may be efficient, but you’re also ineffective. If you launch a product in a highly efficient way and no one buys it, your efficiency numbers may be off the charts, but your effectiveness numbers are in the toilet.

We have very few metrics on effectiveness.  But here are some questions a good effectiveness metric should help you answer.

• Did we work on the right projects?
• Did we make good decisions?
• Did we put the right people on the projects?
• Did we do what we said we’d do?
• After the project, is the team excited to do a follow-on project?
• Did our customers benefit from our work?
• Do our partners want to work with us again?
• Did we set ourselves up to do our work better next time?
• Did we grow our young talent?
• Did we have fun?
• Do more people like to work at our company?
• Have we developed more trust-based relationships over the last year?
• Have we been more transparent with our workforce this year?

If I had a choice between efficiency and effectiveness, I’d choose effectiveness.

Image credit – Bruce Tuten

Whatever your initiative, start with customer value. Whatever your project, base it on customer value. And whatever your new technology, you guessed it, customer value should be front and center.

Whenever the discussion turns to customer value, expect confusion, disagreement, and, likely, anger. To help things move forward, here’s an operational definition I’ve found helpful:

When they buy it for more than your cost to make it, you have customer value.

And when there’s no way to pull out of the death spiral of disagreement, use this operational definition to avoid (or stop) bad projects:

When no one will buy it, you don’t have customer value and it’s a bad project.

As two words, customer and value don’t seem all that special. But, when you put them together, they become words to live by.  But, also, when you do put them together, things get complicated.  Here’s why.

To provide customer value, you’ve got to know (and name) the customer.  When you asked “Who is the customer?” the wheels fall off. Here are some wrong answers to that tricky question. The Board of Directors is the customer. The shareholders are the customers. The distributor is the customer. The OEM that integrates your product is the customer. And the people that use the product are the customer. Here’s an operational definition that will set you free:

When someone buys it, they are the customer.

When the discussions get sticky, hold onto that definition. Others will try to bait you into thinking differently, but don’t bite. It will be difficult to stand your ground.  And if you feel the group is headed in the wrong direction, try to set things right with this operational definition:

When you’ve found the person who opens their wallet, you’ve found the customer.

Now, let’s talk about value. Isn’t value subjective? Yes, it is.  And the only opinion that matters is the customer’s. And here’s an operational definition to help you create customer value:

When you solve an important customer problem, they find it valuable.

And there you have it.  Putting it all together, here’s the recipe for customer value:

1. Understand who will buy it.
2. Understand their work and identify their biggest problem.
3. Solve their problem and embed it in your offering.
4. Sell it for more than it costs you to make it.

Image credit — Caroline

When the fate of your company rests on a single project, who are the three people you’d tap to drag that pivotal project over the finish line? And to sharpen it further, ask yourself “Who do I want to lead the project that will save the company?” You now have a list of the three most important people in your company.  Or, if you answered the second question, you now have the name of the most important person in your company.

The most important person in your company is the person that drags the most important projects over the finish line.  Full stop.

When the project is on the line, the CEO doesn’t matter; the General Manager doesn’t matter; the Business Leader doesn’t matter.  The person that matters most is the Project Manager.  And the second and third most important people are the two people that the Project Manager relies on.

Don’t believe that? Well, take a bite of this. If the project fails, the product doesn’t sell. And if the product doesn’t sell, the revenue doesn’t come. And if the revenue doesn’t come, it’s game over. Regardless of how hard the CEO pulls, the product doesn’t launch, the revenue doesn’t come, and the company dies.  Regardless of how angry the GM gets, without a product launch, there’s no revenue, and it’s lights out.  And regardless of the Business Leader’s cajoling, the project doesn’t cross the finish line unless the Project Manager makes it happen.

The CEO can’t launch the product. The GM can’t launch the product. The Business Leader can’t launch the product.  Stop for a minute and let that sink in.  Now, go back to those three sentences and read them out loud. No, really, read them out loud.  I’ll wait.

When the wheels fall off a project, the CEO can’t put them back on. Only a special Project Manager can do that.

There are tools for project management, there are degrees in project management, and there are certifications for project management.  But all that is meaningless because project management is alchemy.

Degrees don’t matter. What matters is that you’ve taken over a poorly run project, turned it on its head, and dragged it across the line. What matters is you’ve run a project that was poorly defined, poorly staffed, and poorly funded and brought it home kicking and screaming. What matters is you’ve landed a project successfully when two of three engines were on fire. (Belly landings count.) What matters is that you vehemently dismiss the continuous improvement community on the grounds there can be no best practice for a project that creates something that’s new to the world. What matters is that you can feel the critical path in your chest. What matters is that you’ve sprinted toward the scariest projects and people followed you. And what matters most is they’ll follow you again.

Project Managers have won the hearts and minds of the project team.

The Project manager knows what the team needs and provides it before the team needs it. And when an unplanned need arises, like it always does, the project manager begs, borrows, and steals to secure what the team needs.  And when they can’t get what’s needed, they apologize to the team, re-plan the project, reset the completion date, and deliver the bad news to those that don’t want to hear it.

If the General Manager says the project will be done in three months and the Project Manager thinks otherwise, put your money on the Project Manager.

Project Managers aren’t at the top of the org chart, but we punch above our weight. We’ve earned the trust and respect of most everyone. We aren’t liked by everyone, but we’re trusted by all. And we’re not always understood, but everyone knows our intentions are good. And when we ask for help, people drop what they’re doing and pitch in. In fact, they line up to help. They line up because we’ve gone out of our way to help them over the last decade. And they line up to help because we’ve put it on the table.

Whether it’s IoT, Digital Strategy, Industry 4.0, top-line growth, recurring revenue, new business models, or happier customers, it’s all about the projects. None of this is possible without projects. And the keystone of successful projects?  You guessed it.  Project Managers.

Image credit – Bernard Spragg .NZ

The stop, start, continue method (SSC) is a simple, yet powerful, way to plan your day, week and year. And though it’s simple, it’s not simplistic. And though it looks straightforward, it’s onion-like in its layers.

Stop, start, continue (SSC) is interesting in that it’s forward-looking, present-looking, and rearward-looking at the same time. And its power comes from the requirement that the three time perspectives must be reconciled with each other. Stopping is easy, but what will start? Starting is easy, unless nothing is stopped. Continuing is easy, but it’s not the right thing if the rules have changed. And starting can’t start if everything continues.

Stop. With SSC, stopping is the most important part. That’s why it’s first in the sequence. When everyone’s plates are full and every meeting is an all-you-can-eat buffet, without stopping, all the new action items slathered on top simply slip off the plate and fall to the floor. And this is double trouble because while it’s clear new action items are assigned, there’s no admission that the carpet is soiled with all those recently added action items.

Here’s a rule: If you don’t stop, you can’t start.

And here’s another: Pros stop, and rookies start.

With continuous improvement, you should stop what didn’t work. But with innovation, you should stop what was successful. Let others fan the flames of success while you invent the new thing that will start a bigger blaze.

Start. With SSC, starting is the easy part, but it shouldn’t be. Resources are finite, but we conveniently ignore this reality so we can start starting. The trouble with starting is that no one wants to let go of continuing. Do everything you did last year and start three new initiatives. Continue with your current role, but start doing the new job so you can get the promotion in three years.

Here’s a rule: Starting must come at the expense of continuing.

And here’s another: Pros do stop, start, continue, and rookies do start, start, start.

Continue. With SSC, continue is underrated. If you’re always starting, it’s because you have nothing good to continue. And if you’ve got a lot of continuing to do, it’s because you’ve got a lot of good things going on. And continuing is efficient because you’re not doing something for the first time. And everyone knows how to do the work and it goes smoothly.

But there’s a dark side to continue – it’s called the status quo. The status quo is a powerful, one-trick pony that only knows how to continue. It hates stopping and blocks all starting. Continuing is the mortal enemy of innovation.

Here’s a rule: Continuing must stop, or starting can’t start.

And here’s another: Pros continue and stop before they start, and rookies start.

SSC is like juggling three balls at once. Just as it’s not juggling unless it’s three balls at the same time, it’s not SSC unless it’s stop, start, continue all done at the same time. And just as juggling two balls at once isn’t juggling, it’s not SSC if it’s just two out of the three. And just as dropping two of the three balls on the floor isn’t juggling, it’s not SSC if it’s starting, starting, starting.

Image credit – kosmolaut

Do it for them, then explain. When the work is new for them, they don’t know how to do it. You’ve got to show them how to do it and explain everything. Tell them about your top-level approach; tell them why you focus on the new elements; show them how to make the chart that demonstrates the new one is better than the old one. Let them ask questions at every step. And tell them their questions are good ones.  Praise them for their curiosity. And tell them the answers to the questions they should have asked you. And tell them they’re ready for the next level.

Do it with them, and let them hose it up. Let them do the work they know how to do, you do all the new work except for one new element, and let them do that one bit of new work. They won’t know how to do it, and they’ll get it wrong. And you’ve got to let them.  Pretend you’re not paying attention so they think they’re doing it on their own, but pay deep attention.  Know what they’re going to do before they do it, and protect them from catastrophic failure.  Let them fail safely.  And when then hose it up, explain how you’d do it differently and why you’d do it that way.  Then, let them do it with your help. Praise them for taking on the new work. Praise them for trying. And tell them they’re ready for the next level.

Let them do it, and help them when they need it. Let them lead the project, but stay close to the work.  Pretend to be busy doing another project, but stay one step ahead of them. Know what they plan to do before they do it.  If they’re on the right track, leave them alone.  If they’re going to make a small mistake, let them. And be there to pick up the pieces.  If they’re going to make a big mistake, casually check in with them and ask about the project. And, with a light touch, explain why this situation is different than it seems.  Help them take a different approach and avoid the big mistake. Praise them for their good work. Praise them for their professionalism. And tell them they’re ready for the next level.

Let them do it, and help only when they ask. Take off the training wheels and let them run the project on their own. Work on something else, and don’t keep track of their work. And when they ask for help, drop what you are doing and run to help them. Don’t walk. Run. Help them like they’re your family. Praise them for doing the work on their own. Praise them for asking for help. And tell them they’re ready for the next level.

Do the new work for them, then repeat. Repeat the whole recipe for the next level of new work you’ll help them master.

Image credit — John Flannery

• If you want to have an IoT (Internet of Things) program, you’ve got to connect your products.
• If you want to build trust, give without getting.
• If you need someone with experience in manufacturing automation, hire a pro.
• If the engineering team wants to spend a year playing with a new technology, before the bell rings for recess ask them what solution they’ll provide and then go ask customers how much they’ll pay and how many they’ll buy.
• If you don’t have the resources, you don’t have a project.
• If you know how it will turn out, let someone else do it.
• If you want to make a friend, help them.

• If your products are not connected, you may think you have an IoT program, but you have something else.
• If you don’t have trust, you have just what you earned.
• If you hire a pro in manufacturing automation, listen to them.
• If Marketing has an optimistic sales forecast for the yet-to-be-launched product, go ask customers how much they’ll pay and how many they’ll buy.
• If you don’t have a project manager, you don’t have a project.
• If you know how it will turn out, teach someone else how to do it.
• If a friend needs help, help them.

• If you want to connect your products at a rate faster than you sell them, connect the products you’ve already sold.
• If you haven’t started building trust, you started too late.
• If you want to pull in the delivery date for your new manufacturing automation, instead, tell your customers you’ve pushed out the launch date.
• If the VP knows it’s a great idea, go ask customers how much they’ll pay and how many they’ll buy.
• If you can’t commercialize, you don’t have a project.
• If you know how it will turn out, do something else.
• If a friend asks you twice for help, drop what you’re doing and help them immediately.

• If you can’t figure out how to make money with IoT, it’s because you’re focusing on how to make money at the expense of delivering value to customers.
• If you don’t have trust, you don’t have much
• If you don’t like extreme lead times and exorbitant capital costs, manufacturing automation is not for you.
• If the management team doesn’t like the idea, go ask customers how much they’ll pay and how many they’ll buy.
• If you’re not willing to finish a project, you shouldn’t be willing to start.
• If you know how it will turn out, it’s not innovation.
• If you see a friend that needs help, help them ask you for help.

Image credit — openDemocracy

When your most important product development project is a year behind schedule (and the schedule has been revved three times), who would you call to get the project back on track?

When the project’s unrealistic cost constraints wall of the design space where the solution resides, who would you call to open up the higher-cost design space?

When the project team has tried and failed to figure out the root cause of the problem, who would you call to get to the bottom of it?

And when you bring in the regular experts and they, too, try and fail to fix the problem, who would you call to get to the bottom of getting to the bottom of it?

When marketing won’t relax the specification and engineering doesn’t know how to meet it, who would you call to end the sword fight?

When engineering requires geometry that can only be made by a process that manufacturing doesn’t like and neither side will give ground, who would you call to converge on a solution?

When all your best practices haven’t worked, who would you call to invent a novel practice to right the ship?

When the wheels fall off, you need to know who to call.

If you have someone to call, don’t wait until the wheels fall off to call them. And if you have no one to call, call me.

Image credit — Jason Lawrence

In last week’s post, I provided a chart that describes the sources of electricity for the United States.  Coal is the largest source of electricity (38%) and natural gas is the next largest (25%).  The largest non-carbon source is nuclear (22%) and the largest renewable sources are wind (6%) and solar (5%). The data from the chart came from Otherlab who was contracted by the Advanced Research Project Agency of the Department of Energy (ARPA-e) to review all available energy data sources and create an ultra-high resolution picture of the U.S. energy economy.

Using the same data set, I created a chart to break out the top ten categories for petroleum consumption for the United States.

The category Light-Duty Vehicles (cars, light trucks) is the largest consumer at 20% and is more than the sum of the next two categories – Single-Family Homes (10%) and Chemicals (9%).

When Light-Duty Vehicles at 20% are combined with Freight Trucks (think eighteen-wheelers) at 7%, they make up 27% of the country’s total consumption, making the Transportation sector the thirstiest. The most effective way to reduce petroleum consumption is to replace vehicles powered by internal combustion engines with electric vehicles (EVs). But there’s a catch.

As internal combustion engines diminish and EVs come online, petroleum consumption will drop and will help the planet. But, as EVs come online the demand for electricity will increase, making it even more important to replace coal and natural gas with zero-carbon sources of electricity: nuclear, hydro, wind and solar.

To save the planet, here’s what you can do.  Vote for political candidates who will end federal subsidies for coal and natural gas.  That single change will accelerate the adoption of wind and solar, as it will increase the existing cost advantage of wind and solar.  And if that freed-up money can be reallocated to federally-funded R&D to improve the controllability of electrical grids, the change will come even sooner.

And at the state and local level, you can vote for candidates that want to make it easier for wind and solar projects to be funded.

And, lastly, you can buy an EV. You will see a much larger selection of new electric vehicles over the next year and the driving range continues to improve. Over the next year, most new EV models will be high performance and high cost, lower-cost EVs should follow soon after.

Image credit – NASA Goodard Flight Center

All-or-nothing thinking is exciting – we’ll launch a whole new product family all at once and take the market by storm! But it’s also dangerous – if we have one small hiccup, “all” turns into “nothing” in a heartbeat. When you take an all-or-nothing approach, it’s likely you’ll have far too little “all” and far too much “nothing”.

Instead of trying to realize the perfection of “all”, it’s far better to turn nothing into something.  Here’s the math for an all-or-nothing launch of product family launch consisting of four products, where each product will create $1 million in revenue and the probability of launching each product is 0.5 (or 50%).

1 product x $1 million x 0.5 = $500K

2 products x $1 million x 0.5 x 0.5 = $500K

3 products x $1 million x 0.5 x 0.5 x 0.5 = $375K

4 products x $1 million x 0.5 x 0.5 x 0.5 x 0.5 = $250K

In the all-or-nothing scheme, the launch of each product is contingent on all the others.  And if the probability of each launch is 0.5, the launch of the whole product family is like a chain of four links, where each link has a 50% chance of breaking.  When a single link of a chain breaks, there’s no chain. And it’s the same with an all-or-nothing launch – if a single product isn’t ready for launch, there are no product launches.

But the math is worse than that. Assume there’s new technology in all the products and there are five new failure modes that must be overcome.  With all-or-nothing, if a single failure mode of a single product is a problem, there are no launches.

But the math is even more deadly than that. If there are four use models (customer segments that use the product differently) and only one of those use models creates a problem with one of the twenty failure modes (five failure modes times four products) there can be no launches. In that way, if 25% of the customers have one problem with a single failure mode, there are can be no launches.  Taken to an extreme, if one customer has one problem with one product, there can be no launches.

The problem with all-or-nothing is there’s no partial credit – you either launch four products or you launch none. Instead of all-or-nothing, think “secure the launch”. What must we do to secure the launch of a single product? And once that one’s launched, the money starts to flow.  And once we launch the first one, what must we do to secure the launch the second? (More money flows.) And, once we launch the third one…. you get the picture. Don’t try to launch four at once, launch a single product four times in a row. Instead of all-or-nothing, think one-in-a-row, where revenue is achieved after each launch of a single launch.

And there’s another benefit to launching one at a time. The second launch is informed by learning from the first launch.  And the third is informed by the first two. With one-in-a-row, the team gets smarter and each launch gets better.

Where all-or-nothing is glamorous, one-in-a-row is achievable. Where all-or-nothing is exciting, one-in-row is achievable. And where all-or-nothing is highly improbable, one-in-a-row is highly profitable.

Image credit – Mel