Sunday, January 18, 2026

Why Does Toyota Share What They Do With Others?

Comment on LinkedIn post (over the years I have lost trust LinkedIn will honor links into LinkedIn - at times they work often, over the years, they are blocked), so I am not linking to the source.


Why would Toyota allow competitors to see their plants?

"Deep down, they know that the Toyota Production System (TPS) techniques that visitors see on their tours--the kanban cards, andon cords, and quality circles--represent the surface of TPS but not its soul. Toyota isn't worried about giving away any important secrets on a plant tour."

I agree it is true that other companies are not going to copy Toyota's ideas so successfully they would put Toyota at risk.

I think more than that though those that made such decisions early on cared about making the world a better place. Some companies in the USA talk about that but very few care about it. So it is easy to think anyone saying they care about making the world a better place is just making a false claim, likely as a marketing ploy.

When Toyota started doing this the life experience of those making decisions for Toyota very clearly knew the benefits they/Toyota gained from learning from others. Those people and companies helped make Toyota more successful and helping Japan recover from the devastation of World War II. To those that experienced this, it is easy to understand putting helping others above the potential risk of losing some competitiveness by helping competitors.

I do agree those making the decisions of keep sharing what is going on in Toyota now see how little they have to fear based on decades of sharing and seeing how little others have learned and applied what they share - so they have very little to fear.

Toyota has a much bigger risk now of losing focus on what makes them special (respect for people, systems thinking, long term thinking, continual improvement...) than they do from others. By making visible many aspects of how they operate they create a system that reinforces that they continue.

Using a very simple example, it is a lot easier to keep your house clean if you have guests over frequently. If you are going to get lazy it is easier to do if you just don't let others see. If you are letting others see most of us will take care to clean better. 

This is just one tiny aspect but I think there is real benefit if you are an executive concerned about maintaining high standards that you open yourself to others. When people are thinking about just skimping on things some there is extra reason to not do so. Also constantly reinforcing your message by having it repeated to visitors over and over, it keeps those ideas top of mind. Obviously this idea is vastly oversimplifying things. But I do believe there are significant system thinking reasons that Toyota's sharing benefits them and helps keep the company focused (much less important than many other things they do but still a benefit).

Related: The Top 21 Executives at Toyota Getting a Raise to a Combined US$14.9 Million (2015) - Long Term Thinking with Respect for People - The Toyota Way – Two Pillars

Friday, November 10, 2023

The Value of a Management System Accommodating Remote Work

Working remotely creates a significantly different system than working all next to each other. There are big advantages to working right next to each other. There are also really bad office designs (which are very common) which detract from success of working next to each other (distractions etc. that cubical farms, "hoteling" create etc.).

There are challenges to managing a system of work with people not being right next to each other. There are also huge advantages of hiring people that are not within commuting distance of your location. In my opinion organizations that learn to manage a dispersed workforce effectively will have huge competitive advantages long term.

Of course we have decades of evidence of organizations electing to ignore better management practices so I imagine most organizations will be dragged kicking and screaming into the future (if they ever get there at all).

There is some sense in my opinion to focusing on working all next to each other as your organization's management style. But my guess is for all but the richest organizations (that can afford to overpay, pay premiums to those that are willing to commute, willing to tie themselves to one physical location, happen to be in the area...) there are large gains possible by learning and creating a manage system that works effectively with remote workers. When you can't just pay huge salareis to put up with the large shortcomings of your management system it is important to find other ways to compete in the marketplace.

Figuring out how to work effectively remotely provides huge potential advantages for many organizations.

Thursday, August 05, 2021

Psychology Often Drives Decisions Rather Than Rational Thought

 

Comments on  Becoming Trustworthy

 After years of seeing this “irrational” behavior in managers, co-workers and consultants I realized it is usually not irrational, just hard to comprehend.

I think that the primary thing to remember is that often people's actions and decisions are guided by psychology rather than thoughtful deliberation and choosing the most sensible option (given that person's desires).  What this means is you can't expect rational decision making to guide others decisions and actions.  You are often better understanding common psychology and how that impacts decision making.

If you are intending to understand them then this is often more useful.  And if you are attempting to change behavior to improve results often you need to understand not the psychology that will help people change much more than the logic behind what is the most rational decision based on the facts in this case and the individual's desires.

There are times when you think a decision was irrational but you were mistaken.  The person does have rational reasons that were responsible for the decision they made.  Even in a case where a person has went through a rational decision making process but made an error and chose an alternative that did not result in what they imagined it would I think you can call that a rational choice. 

 But I think much more often (even for business decisions) there was no rational decision making. They may have made the choice mainly out of fear (which I would see as different than taking into account the risks and deciding that they wanted to avoid the risk even if it meant the business would suffer because they personally would avoid risk).  Or they may have just said no because they don't like change (which again is different than choosing to say no because the costs of change when rationally weighed against the possible benefits are not worth it).  Etc. There is a big difference I think in believing people are making rational choice and believing that most often people do not do so, they are guiding by unconscious decision making factors that they don't understand and did not evaluate in coming to the decision they did).  

There are 2 reasons this is important: first you are likely making decisions this way and can improve your decision making by understanding how you are making decisions.  And second if you are trying to influence others understanding how they make decisions is important.


Thinking about these, and related ideas, is valuable.  Even when people disagree I think this is a valuable process.

I have several related blog posts
  Customers Are Often Irrational
  Design the Management System with an Appreciation of Confirmation Bias
  The Importance of Critical Thinking and Challenging Assumptions  

Stated Versus Revealed Preference  

Packaging Affects Our Perception of Taste

 Ignoring Unpleasant Truths is Often Encouraged

  

Sunday, May 30, 2021

Creating an Integrated Life Where Work Adds to Life

 

 Response to: What Does Work/Life Balance Mean to You?

My father did a great job with work/life balance by integrating work with life to an extent that most people do not. Instead of the typical what I do for work requires sacrificing "life" he built a life where what he did for work enhanced life. He was a professor and worked for a year in London a year in Singapore and a year in Nigeria. The life experiences that having work and excelling at work to the extent that he could arrange such options provide a much richer life than if he maximized life by restricting his effort in work. We had experiences that are invaluable and extraordinary.

I realize doing this to the extent he did is very difficult. But growing up with it I learned that the idea that you could design the whole life (including everything) to maximize life.  And that it may well be that extra effort at work rather than detracting from the rest of life enhances it. For me the key is to focus on maximizing the whole and within that realizing sometimes there are tradeoff (essentially a zero sum game) but there may well be times when you can design the system of your life to find win win solutions.

I wrote about this on my blog The Aim Should be the Best Life – Not Work v. Life Balance

 Both my brother and I have applied the lessons we learned from that integration of work and life to our lives in ways that made our lives much more meaningful and rewarding.


Friday, February 07, 2020

Experimenting to Improve Sleep Quality

comments on: Can a Humidifier Help You Sleep Better and Snore Less?

After doing some research I learned that humidifiers have helped folks snore less. So, after some more research, I picked up a slick little ultrasonic humidifier and gave it a try. Now, it’s been less than a week which I know isn’t enough to get too excited about statistically speaking. But one thing is becoming crystal clear…it’s most definitely helping me sleep better.

Interesting post, which includes control charts showing the impressive progress.

"I’m also still trying to figure out what caused the three special cause signals in January." One nice aspect of improvement is sometimes you can make a system improvement that even without knowing the causes of previous problems, the new improvement stops those from happening again. Maybe that won't be the case this time but maybe it will. Health related issues are so touchy that I could imagine it is something like a couple bad factors stacked on top just push things over the limit. So being a bit tired and say too low humidity and you didn't drink quite enough liquid and sleep quality is bad but just 1 or 2 of those and it might be a bit worse but not horrible.

Special cause signals will be more frequent if several factors together amplify each other (and they rarely happen together so those amplified results are rare). What happens is those rare amplified events will be special, outside of the system that generates that regular variation when they act alone but when all that variation lines up just right the result will be outside what is normal (due to the very large change in the result for that special case where the individual factors acting together (amplifying) create a very large change in the result.

Related: Gadgets to Mask Noise and Help You Sleep or Concentrate - Apply Management Improvement Principles to Your Situation - Zeo Personal Sleep Manager - Using Control Chart to Understand Free Throw Shooting Results

Tuesday, October 08, 2019

The Importance of Providing Context for Data

Data in Everyday Life: How Serious is the Student Loan Debt Crisis?

Did you know that 1 in 4 Americans have student loan debt? In the United States, there are more than 44 million people who collectively owe $1.56 trillion in student loans.

I thought 25% seemed too high. Thankfully this post also provides the number, 44 million. The USA population is currently estimated at 330 million. 44 million is closer to 14% than 25%. My guess is that the 25% is of some subset of the USA population (people between certain ages maybe)?

I think a point about the importance of providing the proper context when showing data has also been made in this post. There is certainly a sensible argument for why 25% of certain ages is a more useful figure for understanding how widespread student debt is (rather than saying 14% those in the USA have student debt). But in the case where that decision is made the details should be spelled out.

Related: Operational Definitions and Data Collection - Data Can’t Lie (data can be wrong) - Poorly Stratified Data Leads to Mistakes in Analysis - Understanding Data

Thursday, March 07, 2019

Take Risks to Learn and Improve, But Do So Wisely

My edited comments on: The Limits of Learning From Failure

Failure can be a great learning tool, especially if it is planned. Create an environment that supports and learns from failure, but also use the scientific method, coupled with experience, to understand and mitigate the risks.

I agree, I wrote about this on my blog: Accept Taking Risks, Don’t Blithely Accept Failure Though

The goal is to maximize innovation and improvement. To the extent we need to take risks and accept some failures to achieve this we should accept failure. But that doesn’t mean we don’t continually try to improve our management systems to reduce the costs of failure. Even while we take risks we want to do so intelligently.

It is true many organization are so fearful of being blamed for failure that sensible risks are avoided. We do need to create management systems that allow taking sensible risks but we need to learn while still limiting damage from failures. Do experiments on a small scale, iterate quickly and expand the scope as you learn.

Related posts: Learn by Seeking Knowledge, Not Just from Mistakes - Risks Should be Taken Wisely - What is the Explanation Going to be if This Attempt Fails?

Monday, February 04, 2019

Outside the Box Thinking

comment on: Is Thinking Outside the Box Out of the Box Thinking?

I remember Russel Ackoff* telling a story about that 9 dots problem where his daughter shared a solution to cover the dots in 1 line. She folded the paper to the dots were all lined up and drew one line that went through all of them. The teacher said that was wrong! Great teaching about "outside the box" thinking there. But it is a great illustration that just saying "outside the box" isn't the same as adopting that mindset.

* It has been a long time, I might be be wrong but I think it was Ackoff that told that story.

Related: The Psychology of Change is Often the Trickiest Part of Process Improvement - Children are Amazingly Creative At Solving Problems - Innovation Strategy

Sunday, January 27, 2019

Shared Principles for Managing People Engaged in Diverse Tasks

This post expands on my response to Michael Sweeney's (Cloud Infrastructure Engineering for Salesforce) comments on Linked In:

This is a great blog to follow [Curious Cat Management Improvement Blog] if you aren’t aware of it. I agree with John, in general, but in this post I felt the missed one basic thing that I’ve seen in my own career- software is not physical and people who write great software and people who make great physical things MUST think (and therefore be managed) differently. The crossover between Agile and Lean thinking, to me, is the ability to identify non-value added activity (waste) in the Toyota sense, and empower small teams to make decisions and charge forward in the Agile sense. Getting a combination of software and hardware thinking together will be the key to winning the Cloud Wars and moving into the Fourth Industrial Revolution.

Thanks for your comments. I do agree that the system within which people are operating determines how they must be managed. There are definitely features of software development that are significantly different than manufacturing scalpels or basketballs or tables. As there is a difference between a surgical team in an operating room, road construction, mining, editing books, investment banking, manufacturing industrial robots, researching new drugs, manufacturing drugs, teaching in a university, maintaining plane engines, coaching an athletic team...

I see universal principles of management (respect for people, customer focus, continual improvement...) that cross all different human enterprises. How those principles should be manifest in a particular situations depend on the work being done, the management system that is in place, the individual people involved, the specific focus of the effort right now... The way those principles are manifest will look very different in all the varied types of organizations we create and the different work and processes used within those organizations.

John Hunter, presenting at a Deming management seminar in Hong Kong

It is interesting (on the software v not software divide) to note that 100 years ago what was manufactured didn't contain software elements. And the manufacturing process also didn't involve software. That isn't very often the case today. Think of all the manufactured things you use and a high percentage (measured by the cost of the manufactured goods) have software components (cars, phones, appliances, speakers...) and they are built with a great deal of software involved in the manufacturing process.

In addition, the sales process and other processes involved in the organization doing the manufacturing rely heavily on software. As you say "Getting a combination of software and hardware thinking together" is indeed key today and will be continue to be in the future. While relying on software as part of the manufacturing process (and in the supporting processes) isn't the same as developing software the thought process on how to use software within manufacturing systems and how that software should work, be adjusted... is very different from the work of manufacturing tires 100 years ago.

I also discuss related ideas in: Deming and Software Development.

Related posts: How to Manage What You Can’t Measure - Create a System That Lets People Take Pride in Their Work - Good Process Improvement Practices - The Importance of Management Improvement - Thinking Required, No Simple Management Recipe to Follow -Unpacking the Components of Hard Work to Design Better Work Conditions - Do We Need to Find Management Ideas from Our Industry? (No) - Avoiding Difficult Problems

Monday, November 19, 2018

Using Control Chart to Understand Free Throw Shooting Results

comment on: Is Andre Drummond Sustaining His Free Throw Improvements?

Nice use of data to understand the system results (and if there is a measurable improvement or not). I still want to see these chronically poor free throw shooters use the pretty clearly better underhand free throw style. I wrote about this previously in Why Do People Fail to Adopt Better Management Methods?

It really is remarkable how much effort is put into so many aspects of gaining small advantages yet a fairly obvious big advantage (underhand free throws continues to be ignored).

Related: Lessons for Managers from the Wisconsin and Duke Basketball Programs - Change Management - Post Change Evaluation and Action - Taking Risks Based on Evidence

Friday, September 14, 2018

Understanding and Using Data: Waffle House Example

Comments on, Why FEMA is Monitoring Waffle House this Weekend

look outside your organization for risk indicators that might help you make better (and faster) decisions, particularly when those risks are activated. Second, that you should explore crowdsourced risk data as a source of up-to-date information.

I agree. Also, just look at data close to where the action is (internal or external).

And don't just look at aggregated data but dig into what individual data points tell you. Aggregated data is very useful but it also can mask meaningful insights available when data is looked at more closely. It isn't a perfect match to Waffle House data but I think the principle is visible in the Waffle House example.

The Waffle House closure data is based on actually closing based existing conditions while warnings and evacuation recommendations are based on predictions about the weather and the impacts those will have on locations. The warnings are necessarily predictions (to be useful for the whole community they need lead times to take action) where the Waffle House has more flexibility and the organization has managed their system to be more capable of adapting to harsh conditions. There is a real similarity with designing a agile software development process that is able to be more flexible and react quicker than old "waterfall" style organizations that have to predict far in advance and adapt slowly as conditions change.

Waffle House closures are a useful data point for conditions on the ground that FEMA can use with other data to make decisions on how to react.

Related: Bad Weather is Part of the Transportation System - Leadership: Taking Action When Others Are Unsure - Lessons on Competition from Mother Nature - All Data is Wrong, Some is Useful

Thursday, May 17, 2018

Understanding Variation Doesn't Mean Crushing Any Variety

It doesn't follow that because Dr. Deming sought to reduce the variation that caused processes to be unreliable and that harmed customers it meant he was against variety or failed to understand the importance of variation in different contexts than the context where it caused problems. Drawing such a conclusion is just not sensible when looking at Deming's work. It is a misunderstanding that is usually caused by taking one quote and drawing poor conclusions about what that quote meant.

quote text: Standardization does not mean that we all wear the same color and weave of cloth, eat standard sandwiches, or live in standard rooms with standard furnishings. Homes of infinite variety of design are built with a few types of bricks, and with lumber of standard sizes, and with water and heating pipes and fittings of standard dimensions.

Dr. Deming understood the organization as a system and how understanding variation fit within that system. When variation within the system causes problems and reduces efficiency then reducing variation important. It is a mistake to attempt to take thinking that is part of a system and analyze it without understanding the context within which it has meaning. Reducing variation has a specific context within Deming's thinking and that did not mean reducing variety or reducing variation when it was useful.

W. Edwards Deming understood you didn't use the same improvement thinking every time you wanted to improve. You selected the useful management tools and concepts that fit the current situation. It is important to have a wide variety of tools and thinking to allow finding the best ways to improve different situations.

Iteration is an extremely important part of improvement efforts. Why? Because, trying a variety of ways to improve and a variety of changes to the existing conditions will lead to finding the most valuable improvements. The PDSA improvement cycle is designed specifically to introduce more variation into improvement experiments. The value of many small attempts using different tactics (introducing variation to learn what works best) is a core part of a Deming management system.

W. Edwards Deming stressed the importance of understanding psychology and appreciating how different people provided important contributions and how that variety helped the organization. You need to design systems to maximize the benefit gained due to some forms of variation.

It is a mistake to think that W. Edwards Deming didn't understand the value of variety or of variation in the right context. One must reduce the variation that is damaging to the ability of a system to deliver reliable value to customers. That doesn't mean variety and variation in other contexts are not understood to be valuable.

Related: How to Improve Your Understanding Variation and to Use Data to Improve - We Need to Understand Variation to Manage Effectively - Standardization Doesn’t Stamp Out Creativity

This is an edited comment I wrote in response to post on Linked In but since they have repeatedly broken links over the years I don't link to that site any more.

Monday, May 07, 2018

Learning from Gemba Walks

comment on: What’s the Right Way to Do a Gemba Walk?

Well said. Both "treating people as individuals and showing them respect" and "learning how they wish to influence outcomes in their lives and work" are very important. I also think one of the keys that makes gemba walks valuable is for the person doing the walk truly seeking to learn; a curiosity about the nature of the work at this particular gemba seems present in those that make it a valuable process (that curiosity continues and grows it isn't satisfied on a walk instead it is stoked to encourage more learning).

Related: Deming Wanted Managers to Understand the Systems They Managed and to Visit Where the Work was Done - Gemba Keiei by Taiichi Ohno - Out of Touch Executives Damage Companies: Go to the Gemba

Sunday, April 22, 2018

The Importance of Explicit Communication

comments on Ten Tips for Improving Communication

I would add make communication explicit, relying on implicit communication often leads to problems.

Another good things to remember is that you know what you said, but you don't know what someone else hears and understands. Making things explicit reduces the opportunities for misunderstandings.

Related: The Use and Misuse of Technical Jargon - Simple Customer Care: Communicate - Checklists Save Lives

Wednesday, March 14, 2018

The Management System is the Key

Comments on: Lean is All About People – Or is It?

I think there are a number of necessary conditions and without them even whatever people think is the most important don't make the difference. The interactions between the components are extremely important. Rather than the analytic view to focus on individual pieces I think the key to a good management system is a focus on the organization as a system. That requires an organization that is: customer focused, continual improving with a respect for people.

Related: How to Create a Continual Improvement Culture - Give People Enough Rope (and the Right Rope) to Achieve - Management Matters: Building Enterprise Capability - Engage in Improving the Management System

Follow up comment (to another comment made on the blog):

But it doesn’t offer a very easy handle for people to grasp. The so-called lean system is actually a set of systems, quite complex when you map it out.

I agree. It is helpful to make things simple to appreciate and understand – bearing in mind of course:

“Everything should be made as simple as possible, but not simpler.”

I think too often people (in relation to management ideas) demand that things be made more simple than is possible to adequately understand the systems involved. This of course leads to problems. A huge value provided by people like Russell Ackoff is their ability to help explain what is needed in fairly simple terms. Still understanding how these ideas are being expressed in our management systems and how to apply the concepts to our management systems is still a challenge.

Good lean thinking (lean manufacturing…) efforts do a great deal to help this process. Even when they oversimplify (which I think is often) they get closer to appreciating the overall management system than nearly any other management framework. I believe it is possible to make things “more simple than possible” more effectively than other instances of making things “more simple than possible.” I think one of the big differences between the best lean efforts and the others is the increased value placed on deeper understanding and thinking systemically.

I do believe you often have to start with overly simplified explanations and concepts as you introduce management improvement concepts to new organizations. This is often done, and it is sensible. The problem I see is alms never is it understood this is what is happening and there is no effort to build the capability of the organization to grow the management system into one with people that gain a deeper understanding of the tools, skills, ideas and concepts.

Wednesday, January 31, 2018

Avoiding Difficult Problems

Response to: Toyota is Admired for Good Reason… But About Those Rotating Job Shifts…

Thanks for another good post. It points out that while Toyota does many things very well they have opportunities to improve. And I am sure they agree they have a huge number of things to improve.

I agree, this rotating shifts seems like something important to try and improve. One of the things that happens in many organizations is that working on things that are going to make lots of people mad are often avoided. This rotating shift work seems like something that is likely to make people upset.

Even if you worked on improving it, likely during those PDSA cycles many people would be annoyed. And if you were working on it, you could get blamed, you could be tarnished as someone people didn't like it and didn't appreciate "you doing this to them." If, on the other hand, no one is making significant efforts to improve, even if people are annoyed it is at some amorphous policy and usually doesn't stick to 1 person.

If the dis-satisfaction does accumulate toward 1 person (say the plant manager) that person then often will push through and deal with it - or assign someone to deal with it and stay on them to make sure they do the difficult work (even if doing so will make that person's life much more difficult).

Now I would hope Toyota is better managed than that and doesn't shy away from important work just because the people that would take the lead have strong reasons to avoid working on that task.

There are often so many things to improve that it isn't too hard to shift the focus away from something that no one wants to take on. Sometimes though things are so important they must be taken on. Usually those would be more direct and obvious problems. Systemic problems that cause great damage but in a less visible way (such as rotating job shifts) are less likely to be addressed.

Coping with this issue (of avoiding unpleasant, systemic and long term rather than acute problems) is one of the things that separates great corporate culture from decent or bad corporate culture.

If there are fairly obvious or fairly easy improvements those would likely be acted on. There are, rarely, but still sometimes, instances where those vocal or politically powerful individuals who would lose out in a fairly obvious improvement will prevent action.

I am pretty sure Toyota doesn't have fairly easy improvements on this issue, that they must realize is important, that they are just not getting to. I am a bit less confident that Toyota isn't avoiding trying to find solutions using a PDSA type effort because it would be really hard and risky work for whoever takes it on. Also Toyota can try to rely on the good will built up through their many efforts to expect enough employees to say that they will accept the suffering caused by this policy for the good of the everyone.

I am not convinced there are not ways to improve the situation. And I am pretty confident it is important enough to try. And I believe (though I might be wrong) with a concerted effort of knowledgable people improvements that would make a big difference in the quality of life could be achieved. I am not so certain those people involved in leading the effort would be seen in great lights though even if they "succeed." People are much more likely to remember negative consequences to them personally, even if they gain much more than they lost overall. And most will remember the effort negatively if they lost only a little but overall the gains (to the overall organization) were much bigger: in such cases many will hold onto feelings that they were harmed by those that took action.

Related: Respect for People Doesn’t Mean Avoiding Any Hint of Criticism - The Importance of Critical Thinking and Challenging Assumptions - Unpacking the Components of Hard Work to Design Better Work Conditions

Wednesday, January 24, 2018

Creating Web Sites That are Reliable from a Usability Perspective

Comments on: Applying Kaizen to My Various Websites, Trying to practice what I preach...

Good job actually practicing what we recommend others do (kaizen, customer focus...). More management consultants need to do so. I found another thing I think can be improved, this screenshot shows how a floating box (to the left of the screen) blocks the main content:


That covering box moves as you scroll the page so it is always covering part of the content.

[Update: further testing showed this was a temporary glitch - it didn't replicate even on my machine. See comments on the original post for more details. Browsers are not perfect in executing code that is meant to be on the page, sometimes it doesn't quite download everything right, or it misses one action (such as onmouseout) and then behaves oddly...]

One of the big problems I see for web sites development is a failure to understand and test how a wide variety of users will experience a webs site. Often they are designed to look nice for the conditions that the designer has (perhaps huge screen, perhaps low latency, which can mask code issues for users that have high latency internet connections) and that they share with those who approve designs.

It is one thing, for a blog from 1 person to have less than ideal usability for a wide variety of user views. I can completely understand that. Granted I do believe those of us that encourage others to continual improve also need to do that ourselves. What I can't accept is how many web site with huge budgets have very poor coding that results in many users (given the very large user base) have to suffer from bad usability issues.

Those big budget sites should know better than to code in a way that fails to value basic web concepts such as the extremely wide variation in how users will view the web site (screen size, operating system, browser, window size, font size preferences of the user...).

We have an epidemic of bad coding practices that result in failures which then are excused by those responsible as edge cases. Good coding practices would avoid the errors. But instead we code using needlessly complex and error prone ways and then say that we can't deal with the edge cases that only impact a few people. The problem isn't that those few people are requesting some special feature. The problem is the practices used are creating solutions that look nice for some subset of cases but that are not acceptable for other users. Coding with the entire user base in mind from the start would avoid any need to treat those "edge cases" that were only made into edge cases because the coding solutions are not designed for the entire spread of variation in users needs.

The most cost effective and reliable way to deal with this is often to just avoid extra complexity. Having the popup box with additional content can be cool and it can be coded in ways that don't create the issue I see here. But to do that in a way that doesn't create bad usability for some users is complex. Sometimes you can rely on fancy Wordpress themes that have properly dealt with all those complexities. But in my experience, that is very rare. They do ok with a large set of the users but create really bad usability issues for users that don't fit what they considered the normal use case (and created "edge cases" that have bad usability). Or if you are a big budget site you can try to code all the extra complexity yourself. That can be done successfully but I find it fails often. They create fragile systems to deliver and then are overwhelmed at how to deal with all the users that don't fit their expectations for users and they just decide to let those users suffer.

I run across these bad usability practices on big budget website every single week. It isn't some rare poor practice, it is epidemic. It is similar to USA manufacturing practices in 1980: poor practices are so widespread that everyone thinks such poor practices are acceptable. Hopefully this epidemic can be replaced by much better practices fairly soon.

Related: Use Urls – Don’t Use Click x, Then Click y, Then Click z Instructions - Functional Websites are Normally Far Superior to Apps - Bad iTunes Usability and How to Submit a Podcast to iTunes - Usability, Customer Focus and Internet Travel Search - Making Life Difficult for Customers - Designing In Errors

Saturday, January 20, 2018

REITs Value When Interest Rates are Rising

Comments on: Debunking REIT Interest Rate Myths

Well argued. I am new to investing in REITs as an investor but I agree that the "conventional wisdom" doesn't make sense. I primary have dipped into only apartment REITs.
As with many misleading claims there is some truth behind the claims about REITs and interest rates.
It seems to me that the 3 biggest explanations for REITs declining if interest rates rise are
  1. lowered value of REIT assets - this one makes the least sense to me. I get the cash flows (if they are set for years into the future) will be given less value but for my particular focus (apartment REITs) the cash flows could well increase (over the longer term) as the same factors causing rates to rise allow rental rents to be increased.
  2. lower value of the current yield - this makes perfect sense, though it seems to me it vastly under-values the real LONG TERM impact. For a bond this is just true that the value of the future payments are worth less if interest rates rise. But for REITs if rates rise do to a stronger economy and thus they are able to raise rents and raise dividends then you do see a drop in the value of near term dividends but in the longer term it is much less straight forward. It may well be that the gains for the REIT in the long term exceed the lowered value of the reduced value this years dividends (though it may also be true that the payments do not increase to even out the comparison to new expected yields). This will of course be dependant on the REIT type and individual REIT portfolio.
  3. As you say the increased costs do to higher rates are not baked into all REITs. It does seem to me (again I am new to REITs) that they often are going to experience higher costs but it isn't immediate. As you say often they have fixed rates but also it seems (again maybe I am wrong) they often have fairly high amount of debt coming due in say the next 5 years that has to be rolled over - and also new purchases will have these higher rates.

Related: Looking at Real Estate in This Challenging Investing Climate (2015) - Looking for Yields in Stocks and Real Estate (2012) - Landlords See Increase in Apartment Rentals (2010)

Tuesday, December 12, 2017

Failing to Adopt Better Methods is Sadly a Common Management Practice

comment on Is Andre Drummond a Better Free Throw Shooter This Season?
Using "Process Behavior Charts" to Answer This Question

There is also a fairly convincingly better method to shoot free throws - underhanded. As I stated in my post, Why Do People Fail to Adopt Better Management Methods?

People can be very attached to the way things have always been done. Or they can just be uncomfortable with the prospect of trying something new.
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Wilt Chamberlain was 28 for 32 from the line shooting underhanded in his 100 point game (the most points anyone has scored in a NBA basketball game).

He was a career 51% free throw shooter (almost entirely shooting traditionally).

But he had a good reason not to use underhand style more often. He felt like a sissy using that style and making them. I am sure the Boston Celtics were happy to let him focus on being scared of looking foolish while they won championships. You are correct if you don’t think I really meant he had a good reason.

This reluctance to use better methods is not limited to underhanded free throw shooting. Managers fail to adopt better management methods every day that are equivalent to failing to improve free throw results using a proven method.

Wednesday, September 20, 2017

Coaching: Helping People Improve the Results of the System

Comments on: Lean Quote: Coaching is about...Others

I wouldn't put it as "their own problems and improve their own performance." I do agree it is about helping others. But especially for management I think it is more about helping people improve the results of the overall system.

That does include helping them grow and improve their capabilities. But a huge part of what is holding back the performance of our organizations is the limited understanding of how to improve the overall system. Just improving yourself doesn't necessarily improve the overall results.

In a similar way an athletic coaches focus is on how to improve the team. A big part of that is how to improve each team member but the interactions (how everything works together) are often more important than the individual improvements.

It is important to give people the tools they need to understand how to improve the system including how they fit and how important interactions are within a system.

Related: Helping Employees Improve - Manage the System to Take Advantage of the Strengths Each Person Has - Lessons for Managers from Wisconsin and Duke Basketball - The Psychology of Change is Often the Trickiest Part of Process Improvement