Archive for the ‘Intellectual Intertia’ Category
Marinate yourself in scarcity to create new thinking
There’s agreement: new thinking is needed for innovation. And for those that have tried, there’s agreement that it’s hard. It’s hard to create new thinking, to let go of what is, to see the same old things as new, to see resources where others see nothing. But there are some tricks to force new thinking, to help squeeze it out of ourselves.
The answer, in a word, is scarcity.
In the developing world there is scarcity of everything: food, shelter, electricity, tools, education; in the developed world we must fabricate it. We must dust off the long-neglected thought experiment, and sit ourselves in self-made scarcity.
Try a thought experiment that creates scarcity in time. Get the band together and ask them this question: If you had only two weeks to develop the next generation product, what would you do? When they say the question is ridiculous, agree with them. Tell them that’s the point. When they try to distract and derail, hold them to it. Don’t let them off the hook. Scarcity in time will force them to look at everything as a resource, even the user and the environment itself (sunlight, air, wind, gravity, time), or even trash or byproduct from something in the vicinity. At first pass, these misused resources may seem limited, but with deeper inspection, they may turn out to be better than the ones used today. The band will surprise themselves with what they come up with.
Next, try a thought experiment that creates scarcity of goodness. Get the band back together, and take away the major performance attribute of your product (the very reason customers buy); decree the new product must perform poorly. If fast is better, the new one must be slow; if stiff is better, the new one must be floppy; if big, think small. This forces the band to see strength as weakness, forces them to identify and release implicit constraints that have never been named. Once the bizarro-world product takes shape, the group will have a wonderful set of new ideas. (The new product won’t perform poorly, it will have novel functionality based on the twisted reality of the thought experiment.)
Innovation requires new thinking, and new thinking is easier when there’s scarcity – no constraints, no benchmarks, no core to preserve and protect. But without real scarcity, it’s difficult to think that way. Use the time-tested thought experiment to marinate yourself in scarcity, and see what comes of it.
For innovation, look inside.
Everyone is dissatisfied with the pace of innovation – solutions that change the game don’t come fast enough. We look to the environment, and assign blame. We blame the tools, the process, the organization structure, and the technology itself. But the blame is misplaced. It is the innovators that govern the pace of innovation.
It certainly isn’t the technology – the solutions already exist; they’re patiently waiting for us, waiting for us to find them. We just have to look. The technology knows what it will be when it grows up: the path is clear. Put simply, we must break through our unwillingness to look. We must look harder, deeper, and more often. We must redefine our self-set limits, and look under the rocks of our successes and beyond our best work.
To increase the pace and quality of innovation, we must look inside.
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p.s. I’m holding a half-day workshop on how to implement systematic cost savings through product design on June 13 in Providence RI as part of the International Forum on DFMA — here’s the link. I hope to see you there.
A Unifying Theory for Manufacturing?
The notion of a unifying theory is tantalizing – one idea that cuts across everything. Though there isn’t one in manufacturing, I think there’s something close: Design simplification through part count reduction. It cuts across everything – across-the-board simplification. It makes everything better. Take a look how even HR is simplified.
HR takes care of the people side of the business and fewer parts means fewer people – fewer manufacturing people to make the product, fewer people to maintain smaller factories, fewer people to maintain fewer machine tools, fewer resources to move fewer parts, fewer folks to develop and manage fewer suppliers, fewer quality professionals to check the fewer parts and create fewer quality plans, fewer people to create manufacturing documentation, fewer coordinators to process fewer engineering changes, fewer RMA technicians to handle fewer returned parts, fewer field service technicians to service more reliable products, fewer design engineers to design fewer parts, few reliability engineers to test fewer parts, fewer accountants to account for fewer line items, fewer managers to manage fewer people.
Before I catch hell for the fewer-people-across-the-board language, product simplification is not about reducing people. (Fewer, fewer, fewer was just a good way to make a point.) In fact, design simplification is a growth strategy – more output with the people you have, which creates a lower cost structure, more profits, and new hires.
A unifying theory? Really? Product simplification?
Your products fundamentally shape your organization. Don’t believe me? Take a look at your businesses – you’ll see your product families in your org structure. Take look at your teams – you’ll see your BOM structure in your org structure. Simplify your product to simplify your company across-the-board. Strange, but true. Give it a try. I dare you.
Our fear is limiting DoD’s Affordability Quest
The DoD wants to save money, but they can’t do it alone. But can they possibly succeed? Do they have fighting a chance? Can they get it done? Wrong pronouns.
Can we possibly succeed?
Do we have a fighting chance?
Can we get it done?
In difficult times it’s easy to be critical of others, to make excuses, to look outside. (They, they, they.) In difficult times it’s hard find the level 5 courage to be critical ourselves, to take responsibility, to look inside. (We, we, we.) But we must look inside because that’s where the answer is. We know our work best; we’re the only ones who can reinvent our work; we’re the ones who can save money; we’re responsible.
Changing our actions, our work, is scary, but that’s what the DoD is asking for; we must overcome our fear. But to overcome it we must acknowledge it, see it as it is, and work through it.
Here’s the DoD’s challenge: “Contractors – provide us more affordable systems.” There are two ways we can respond.
The fear-based response (the they response): The DoD won’t accept the changes. In fact, they’ve never liked change. They’ll say no to any changes. They always have.
The seeing things as they are response (the we response): We must try, since not trying is the only way to guarantee failure. Things are different now. Change is acceptable. However, the facts are we don’t know what changes to propose, we don’t know what creates cost, and we don’t know how to design low cost, low complexity systems. We were never taught. We need to develop our capability if we’re to be successful.
The they response: Their MIL specs dictate the design and they won’t budge on them. They’ll say no to any changes. They always have.
The we response: We must try, since not trying is the only way to guarantee failure. Things are different now. Change is acceptable. However, the facts are we don’t know why we designed it that way, we don’t know all that much about the design, we don’t know what creates cost, and we don’t know how to design low cost, low complexity systems. We were never taught. We need to develop our capability if we’re to be successful.
The they response: All they care about is performance. They are driving the complexity. And when push comes to shove, they don’t care about cost. They’ll say no to any changes. They always have.
The we response: We must try, since not trying is the only way to guarantee failure. Things are different now. Change is acceptable. However, the facts are we don’t know what truly controls performance, we don’t know what we can change, we don’t know the sensitivities, we don’t know what creates cost, and we don’t know how to design low cost, low complexity systems. We were never taught. We need to develop our capability if we’re to be successful.
The DoD has courageously told us they want to overcome their fear. Let’s follow their lead and overcome ours. It will be good for everyone.
DoD’s Affordability Eyeball
The DoD wants to do the right thing. Secretary Gates wants to save $20B per year over the next five years and he’s tasked Dr. Ash Carter to get it done. In Carter’s September 14th memo titled: “Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending” he writes strongly:
…we have a continuing responsibility to procure the critical goods and services our forces need in the years ahead, but we will not have ever-increasing budgets to pay for them.
And, we must
DO MORE WITHOUT MORE.
I like it.
Of the DoD’s $700B yearly spend, $200B is spent on weapons, electronics, fuel, facilities, etc. and $200B on services. Carter lays out themes to reduce both flavors. On services, he plainly states that the DoD must put in place systems and processes. They’re largely missing. On weapons, electronics, etc., he lays out some good themes: rationalization of the portfolio, economical product rates, shorter program timelines, adjusted progress payments, and promotion of competition. I like those. However, his Affordability Mandate misses the mark.
Though his Affordability Mandate is the right idea, it’s steeped in the wrong mindset, steeped in emotional constraints that will limit success. Take a look at his language. He will require an affordability target at program start (Milestone A)
to be treated like a Key Performance Parameter (KPP) such as speed or power – a design parameter not to be sacrificed or comprised without my specific authority.
Implicit in his language is an assumption that performance will decrease with decreasing cost. More than that, he expects to approve cost reductions that actually sacrifice performance. (Only he can approve those.) Sadly, he’s been conditioned to believe it’s impossible to increase performance while decreasing cost. And because he does not believe it, he won’t ask for it, nor get it. I’m sure he’d be pissed if he knew the real deal.
The reality: The stuff he buys is radically over-designed, radically over-complex, and radically cost-bloated. Even without fancy engineering, significant cost reductions are possible. Figure out where the cost is and design it out. And the lower cost, lower complexity designs will work better (fewer things to break and fewer things to hose up in manufacturing). Couple that with strong engineering and improved analytical tools and cost reductions of 50% are likely. (Oh yes, and a nice side benefit of improved performance). That’s right, 50% cost reduction.
Look again at his language. At Milestone B, when a system’s detailed design is begun,
I will require a presentation of a systems engineering tradeoff analysis showing how cost varies as the major design parameters and time to complete are varied. This analysis would allow decisions to be made about how the system could be made less expensive without the loss of important capability.
Even after Milestone A’s batch of sacrificed of capability, at Milestone B he still expects to trade off more capability (albeit the lesser important kind) for cost reduction. Wrong mindset. At Milestone B, when engineers better understand their designs, he should expect another step function increase in performance and another step function decrease of cost. But, since he’s been conditioned to believe otherwise, he won’t ask for it. He’ll be pissed when he realizes what he’s leaving on the table.
For generations, DoD has asked contractors to improve performance without the least consideration of cost. Guess what they got? Exactly what they asked for – ultra-high performance with ultra-ultra-high cost. It’s a target rich environment. And, sadly, DoD has conditioned itself to believe increased performance must come with increased cost.
Carter is a sharp guy. No doubt. Anyone smart enough to reduce nuclear weapons has my admiration. (Thanks, Ash, for that work.) And if he’s smart enough to figure out the missile thing, he’s smart enough to figure out his contractors can increase performance and radically reduces costs at the same time. Just a matter of time.
There are two ways it could go: He could tell contractors how to do it or they could show him how it’s done. I know which one will feel better, but which will be better for business?
Do you know?
There are three categories of knowing: we know we know, we don’t know, and we think we know.
When we know we know – we understand fundamentals, we have a model, we have evidence, we can predict. We can build on this knowledge. We’re not often in this state, but it sure feels good when we are. The trick here is to understand the applicability of the knowledge. Change the inputs, change the system, or change the environment and we must question our knowledge. Do the fundamentals still apply?
When we don’t know – no fundamentals, no model, and no predictions. No danger on building on bad knowledge. Life is uncomplicated. Next task: develop the fundamentals; build a model. We’re in this state more often than we admit, and there’s the danger. It’s politically difficult to say “I don’t know.” But it must be said. Otherwise we’re expected to predict the future and to build on the knowledge (that we don’t have).
When we think we know – no fundamentals, no model, and predictions we bet our businesses on. Danger. It feels just as good as when we know we know, but it shouldn’t. Momentum in the wrong direction and we don’t know it. And we’re likely in this state more often than not. But this is a meta-state, an unstable state. The trick is to push on our knowledge so we tip into one of the other two states. Push on our knowledge so we know if we know.
Do you know the fundamentals? Do you have a model? Can you predict?
Green Jeans Drive Innovation
Environmental stability, aka, Green, is just starting. Most are still in reluctant compliance mode, hoping beyond hope that this newest of corporate initiatives dies on the vine, that it’s just another corporate initiative. Wrong. Very wrong. It’s the way we’re going to grow our business; it’s the way we’re going to make money. It’s time to open our minds, grab Green by the throat, and shake it. Green is here to stay, and Green will demand we change our thinking, will make us see our problems differently, will require we dismantle our intellectual inertia, will require innovation.
Pretend you’re a manufacturer of jeans, the blue ones, the ones that feel so good when you put them on, the ones you’d like to wear to work if you could. (Maybe that’s just me.) Year-on-year your innovation efforts focus on adding pockets then removing them, adding holes then removing them, zippers here then there, dark wash then light, baggy then tight, and yellow stitching than red. What else can a jean innovator do?
Corporate sends the memo: “We’re going Green.” Green jeans. They hire the best sustainability consultants and you, the jean innovator, sit through the sustainability audit results. Their recommendation – reduce carbon footprint: use materials that consume less energy, reduce electricity in your factories, minimize distribution’s fuel costs, and reduce travel miles of your sales folks. Brilliant. Whatever we paid these guys, it was too much. But then they twist your brain. The carbon footprint from the use of your product dwarfs everything else. Your customers generate a massive carbon footprint when they wash and dry your jeans, and you have no control over it. Your jeans are made once and washed and dried countless times. Whoa. Your eyes roll back in your head. What’s a jean innovator to do? First thing – forget about the stupid pockets. Next, figure out how to reduce the carbon footprint generated by your customers. Define the problem and innovate. But what’s the problem?
Why do folks wash their jeans? The obvious answer – they’re dirty. Let’s figure a way to prevent jeans from getting dirty, right? No. The real answer – they stretch, they get baggy and don’t fit right; so we wash them to tighten things up. We wash CLEAN jeans because they get baggy, not because they’re dirty. Let’s fix that.
Believe it or not, there are many likely innovative solutions to make jeans de-baggy themselves, but that’s not the point. The point is we must innovate on jeans that reconfigure, and must not innovate on keeping jeans clean (though we may innovate on that down the road) and must not innovate on pockets, zippers, and stitching.
Green shaped our innovation work. We now have Green jeans that feel good and spring back after wearing and fit great on day two – no washing required. We now have Green jeans that save customers time and money while flattering their backside. But here’s the point – we would have never invented de-baggying jeans without opening our minds to Green as a way to grow our business, to Green as a way to make money. Reluctant compliance won’t get us there. Grab Green by the throat and shake it…before your competitors do.
Who killed Vacation?
What happened to Vacation? It used to be a time to let go, to separate from work, to engage with family and friends, to work hard on something else. A time to refresh, to recharge, to renew. Not anymore – a shadow of its former self – paler, thinner, hunched over.
We still stay out of the office in a physical sense, but not in a virtual one. Our butts may be “on vacation” in that we sit someplace else, but our brains are not. They’re still fully invested in office things, running in the background as our butts enjoy their vacation. We’ve got all the downside of being out of the office with none of the upside. It’s almost worse than not having vacation. At least we don’t fall behind when not on vacation.
Who’s to blame? The technology? Our company? I don’t think so. We are. Sure the technology makes it easy: cell coverage across the globe (accept in New Hampshire), fast connections, nice screens, and full thumb keyboards to crank out the email. But, if I’m not mistaken, those little pda bastards still have an off switch. If your thumb can pound the keys, it can certainly mash the off switch. Can’t shut the damn thing off because you want to respond to the emergency work call? That’s crap. Work emergencies don’t exist, they’re artificial, self-made. We create them to increase the sense of urgency. Don’t buy that? Here’s another rationale: you’re not giving others the opportunity to think while you’re gone. You’re telling them they’re not capable of thinking for themselves, you’re dismantling their self esteem, and hindering their growth.
Our company? Sure, they make it hard to let go, with implications that important projects must run seamlessly, that the ball must still be advanced. But, we’re the ones who decide what our brains think about. We must decide to give others an opportunity to shine, to give away the responsibility to someone who can likely do it better. If you ask the company what they want when we return, they’ll say they want us to come back recharged, ready to see things differently, ready to be creative, ready to be authentic. You cannot be that person without letting go. Without letting go, you’ll return the same worn soul who can but raft downstream with the current instead of swimming violently against it.
Take responsibility for your vacation. Own it, tell others you own it. Tell them you’re serious about letting go, working hard on something else, recharging. Use the all powerful Out of Office AutoReply as it was intended, to set everyone’s expectations explicitly (including your own).
Out of Office AutoReply: I am on vacation.
The Emotional Constraint
“Constraint” is most often an excuse rather than a constraint. In fact, there are very few true constraints, with most of them living in the domain of physics.
A constraint is when something cannot be done. It’s not when something is difficult, complex, or unknown. And, it’s not when the options are costly, big, or ugly. There are no options with a true constraint. Nothing you can do.
The Physical Constraint
If your new product requires one of its moving parts to go faster than the speed of light, that’s a physical constraint (and not a good idea). If your new technology requires a material that’s stronger than the strongest on record, that’s a constraint (and, also, not a good idea). If your new manufacturing process consumes more water than your continent can spare, that’s a constraint. (This may not be a true constraint in the physics sense, but it’s damn close.) Don’t try to overpower the physical constraint – you can’t beat Mother Nature. The best you can do is wrestle her to a tie, then, when you tire, she pins you.
The Legal Constraint
If your approach violates a law, that’s a legal constraint. Not a true constraint in a physical sense, as there are options. You can change your approach so the law is not violated (maybe to a more costly approach), you can lobby for a law change (may take a while, but it’s an option), or you can break the law and roll the dice. To be clear, I don’t recommend this, just wanted to point out that there are options. Options exist when something is not a constraint, though the consequences can be most undesirable, severe, and may not fit with who we are.
The Emotional Constraint
If a person in power self-declares something as a constraint, decides there are no options, that’s an emotional constraint. Not a true constraint in a physical sense, but it’s the most dangerous of the triad. When there is no balance in the balance of power, or the consequences of pushing are severe, the self-declared emotional constraint stands – there are no options. Like with the speed of light, where adding energy cannot overcome the speed constraint, adding reasoning energy cannot overcome the emotional constraint. I argue that most constraints are emotional.
Physical and legal constraints are relatively easy to see and navigate, but the emotional constraint is something different altogether. Difficult to see, difficult to predict, and difficult to overcome. Person-based rather than physics or law-based.
Strategies to overcome emotional constraints must be based on the particulars of the person declaring the constraint. However, there is one truism to all successful strategies: Just as the person in power is the only one who can convince himself something is a constraint, he is also the only one who can convince himself otherwise.
What comes first, the procedure or the behavior?
It’s the chicken-and-egg syndrome of the business world. Does procedure drive behavior or does behavior drive procedure?
Procedures are good for documenting a repetitive activity:
- Pick up that part.
- Grab that wrench.
- Tighten that nut.
- Repeat, as required.
This type of procedure has value – do the activity in the prescribed way and the outcome is a high quality product. But what if the activity is new? What if judgment and thinking govern the major steps? What if you don’t know the steps? What if there is no right answer? What does that procedure look like?
Try to modify an existing procedure to fit an activity your company has not yet done. Better yet, try to write a new one. It’s easy to write a procedure after-the-fact. Just look back at what you did and make a flow chart. But what about a procedure for an activity that does not exist? For an old activity done in a future new way? Does the old procedure tell you the new way? Just the opposite. The old procedure tells you cannot do anything differently. (That’s why it’s called a procedure). Do what you did last time, or fail the audit. Be compliant. Standardize on the old way, but expect new and better results.
Here is a draft of a procedure for new activities:
- Call a meeting with your best people.
- Ask them to figure out a new way.
- Give them what they ask for.
- Get out of the way, as required.
When they succeed, lather on the praise and positivity. It will feel good to everyone. Create a procedure after-the-fact if you wish. But, no worries, your best people won’t limit themselves by the procedure. In fact, the best ones won’t even read it.
DFMA Won’t Work
Ask a company or team to do DFMA, and you get a great list of excuses on why DFMA is not applicable and won’t work. Product volumes are too low for DFMA, or too high; product costs are too low, or too high; production processes are too simple, or complex; production mix is too low, or too high. That’s all crap – just excuses to get out of doing the work. DFMA is applicable; it’s just a question of how to prioritize the work.
To prioritize the work, take a look at product volumes. They’ll put you in the right ballpark. Here are three categories, low, medium, and high volume:
Mike Shipulski