Leadership Barometer 37 Five Mistakes Using Data

February 10, 2020

The Great Quality Guru, W. Edwards Deming had a lot to say about how managers use data incorrectly and waste the resources of an organization.

It was part of his philosophy of quality which he called “profound knowledge.” He stressed a number of mistakes typically made by managers when handling data. Here are some of the problems along with the antidote for each misuse.

Mistake 1 – Assuming variation is a result of special cause variation when it is really due to common cause variation.

Common cause variation is when a system is in statistical control with small random type variation occurring.

The only way to tell if a system is in control is to consider all the data, usually by plotting it, and finding out if the data variation is within certain defined bounds, called “control limits.”.

If it is in control, then for managers to ask people to explain the variation is simply a waste of their time. People will dutifully go off and try to find out what caused the variation, but the answer will be only a guess and not valid information.

When one or more data points go outside the control limits of normal variability, then there is a special cause. In these cases, it is not only possible but vital to determine what caused the variation so it can be controlled and eliminated in the future.

Most managers fail to determine if a signal is due to special cause variation when they ask underlings to explain what happened. This causes a large waste of effort and time and it lowers trust.

Mistake 2 – Assessing the capability of a process based on the most recent data point.

It is tempting to react to the most recent data and ask people to take corrective action based on that. At home, we might say, it’s cold in here, why not turn up the heat?

But just because it is cold at the moment does not mean the system needs to be adjusted. It may be the low point of the cycle that is in common cause variation. In which case, if we turn up the thermostat, we are doing what Deming called “tampering.”

Tampering is defined as moving the set point of a system experiencing common cause variation in an attempt to reduce the variation. In fact, it can be demonstrated that “chasing” the perfect setting will result in a large increase in the variation of the process. It is better to leave things alone.

Many of us have experienced this when sitting in a meeting. All of a sudden someone will say, “Whew, it is very warm in here” and turn down the thermostat. Ten minutes later people in the room are reaching for their sweaters because they are chilled, so up goes the thermostat.

All day long people fiddle with the darned thermostat and swear at the heating system. The problem resides in the fingers of the people playing with the setting, not the furnace control. They are tampering, which results in roughly double the temperature variation than if they just left things alone.

Mistake 3 – Interpreting two points as a trend

This flaw is ingrained so deeply into the fabric of our thinking that we rarely even realize how stupid most statements of movement really are. Every day we read in the paper or hear on the news something like the earnings for Company X are up by 20%. We think that is a good thing. Rubbish!

All it means is that in comparison to four quarters ago the earnings are 20% higher. It says nothing about the actual trend of the data. For knowledge of how the company is doing, we need to plot the data and consider the quarterly earnings over something like 8 consecutive quarters. Only then we can know what is really going on.

Many advertisements for products are based on the faulty logic that two points make a trend. When we hear that interest rates on mortgages is down by ½ point, that is a symptom of two points equaling a trend. We really cannot use that data to imply what has been happening to interest rates in the past or is likely to happen in the future.

Mistake 4 – Looking for blame rather than root cause

When something goes wrong, managers often focus on who messed up and why rather than what aspect of the system was the root cause so it can be fixed. They think if they can pinpoint the culprit and punish him or her that will eliminate problems in the future.

Actually, the reverse is true. By trying to find a scapegoat, people tend to hide the truth and work to pin blame on other people to protect their own interests. That leads to infighting, conflict, and other disruptive behavior.

Mistake 5 – Too much automation of process data.

This issue is counter intuitive. One would think that data plotted and interpreted by computers would be superior to that plotted by hand.

In fact, data where people have been involved in the process is more useful, because people have the ability to spot peripheral issues and correct them where a computer will just keep logging rubbish.

When people rely on the machine always being right, there can be disastrous results because, at the root of it, the machines are controlled by people, but once programmed, people tend to rely too much on the machine and forget to check for sanity.

That situation is how pilots occasionally fly into the side of a mountain, because they rely too much on the dumb auto pilot and forget to watch where they are going.

When we take the time to use data correctly, we normally build higher trust within an organization, because people are not being asked to resolve a figment or ghost of a real issue.

These 5 mistakes are the most common ones. There are other symptoms of how managers use data incorrectly to the detriment of their organization and the people. The antidote for each of these problems is to make sure managers are educated on these flaws and modify their behaviors to avoid the pitfalls.

The preceding information was adapted from the book Leading with Trust is like Sailing Downwind, by Robert Whipple. It is available on http://www.leadergrow.com.

Robert Whipple is also the author of The TRUST Factor: Advanced Leadership for Professionals and, Understanding E-Body Language: Building Trust Online. Bob consults and speaks on these and other leadership topics. He is CEO of Leadergrow Inc. a company dedicated to growing leaders.


Ten Concrete Steps to Rebuild Trust

April 23, 2019

Several authors (including Stephen M.R. Covey) have suggested that trust between people is like a bank account. The balance is what determines the level of trust at any point in time, and it is directional.

I might trust you today more than you trust me. We make deposits and withdrawals in the trust account nearly every day with the things we say and do. Usually the deposits are made in small steps that add up to a large balance over time.

Unfortunately, withdrawals can be massive due to what I call “The Ratchet Effect.” All prior trust may be wiped out quickly. Nobody is happy when trust is lost.

I believe trust withdrawals can lead to a long term higher level of trust if they are handled well. Just as in a marriage when there is a major falling out, if the situation is handled well by both parties in a cooperative spirit, the problem can lead to an even stronger relationship in the long term.

Let’s investigate ten steps that can allow the speedy rebuilding of trust.

1. Act Swiftly

Major trust withdrawals can be devastating, and the trauma needs to be treated as quickly as possible. Just as a severe bodily injury requires immediate emergency care, so does the bleeding of emotional capital need to be stopped after a major letdown. The situation is not going to heal by itself, so both parties need to set aside normal routines in order to focus significant energy on regaining equilibrium.

2. Verify care

Both people should spend some time remembering what the relationship felt like before the problem. In most cases there is a true caring for the other person, even if it is eclipsed by the current hurt and anger. It may be a stretch for some people to mentally set aside the issue, but it would be helpful to do that, if just as an exercise.

If the problem had never happened, would these people care about each other? If one person cannot recognize at least the potential for future care, then the remedial process is blocked until that happens.

3. Establish a desire to do something about it

If reparations are to be made, both people must cooperate. If there was high value in the relationship before the breach, then it should be possible to visualize a return to the same level or higher level of trust.

It may seem out of reach if the problem was a major let down, but it is critical that both parties really want the hurt to be resolved.

4. Admit fault and accept blame

The person who made the breach needs to admit what happened to the other person. If there is total denial of what occurred, then no progress can be made. Try to do this without trying to justify the action.

Focus on what happened, even if it was an innocent gaffe. Often there is an element of fault on the part of both parties, but even if one person is the only one who did anything wrong, an understanding of fault is needed in this step.

Sometimes neither party did anything particularly wrong, but the circumstances led to trust being lost.

5. Disagree without being disagreeable

If both parties cannot agree on exactly what happened, it is not the end of trust forever.  The first rule is to disagree with a constructive spirit while assuming the best intent on the part of the other person.

Suspend judgment on culpability, if necessary, to keep the investigation on the positive side. This is a part of caring for the other person and the relationship.

6. Ask for forgiveness

It sounds so simple, but many people find it impossible to verbalize the request for forgiveness, yet a pardon is exactly what has to happen to enable the healing process.

The problem is that saying “I forgive you” is easy to say but might be hard to do when emotions are raw. True and full forgiveness is not likely to happen until the final healing process has occurred. At this point it is important to affirm that forgiveness is at least possible.

7. Determine the cause

This is a kind of investigative phase where it is important to know what happened in order to make progress. It is a challenge to remain calm and be as objective with the facts as possible.

Normally, the main emotion is one of pain, but anger will often accompany the pain. Both people need to describe what happened, because the view from one side will be significantly different from the opposite view.

Go beyond describing what happened, and discuss how you felt about what happened. Do not cut this discussion off until both parties have exhausted their descriptions of what occurred and how they felt about it.

Sometimes it helps in this stage to do some reverse role playing where each person tries to verbalize the situation from the perspective of the other.

8. Develop a positive path forward

The next step is the mutual problem solving process. Often two individuals try to do this without the preparatory work done above, which is more difficult.

The thing to ask in this phase is “what would have to happen to restore your trust in me to at least the level where it was before.” Here, some creativity can really help.

You are looking for a win-win solution where each party feels some real improvement has been made. Do not stop looking for solutions just because it is difficult to find them.

If you have gotten this far, there is going to be some set of things that can begin the healing process. Develop a path forward together. What new behaviors are you both going to exhibit with each other to start fresh.

9. Agree to take action

There needs to be a formal agreement to take corrective action. Usually this agreement requires modified behaviors on the part of both people.

Be as specific as possible about what you and the other person are going to do differently. The only way to hold each other accountable for progress is to have a clear understanding of what will be different.

10. Check back on progress

Keep verifying that the new behaviors are working and modify them, if needed, to make positive steps every day.

As the progress continues, it will start getting easier, and the momentum will increase. Make sure to smell the roses along the way. It is important to celebrate progress as it occurs, because that reinforcement will encourage continued progress.

If there is a another set-back, it is time to cycle back on the steps above and not give up on the relationship just because the healing process is a challenging one.

In many cases, it is possible to restore trust to a higher level than existed before the breach. This method is highly dependent on the sincerity with which each person really does want the benefits of a high trust relationship with the other person.

That outcome is really good news because it allows a significant trust withdrawal to become an opportunity instead of a disaster.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 600 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Leaders: Hold Yourself Accountable

September 26, 2016

I work with leaders every day and focus on helping them build higher trust in their organizations. One observation I have made over the years is that nearly all leaders are passionate about accountability.

They do their best to make sure people in the organization produce the right things in the right ways and hold them accountable for doing so.

Unfortunately, I see very few leaders who are willing to step up to their own accountability. It is just not something that crosses their minds very often.

If something is wrong, they will blame the managers, or supervisors, or suppliers, or workers, or the government, or any other person or thing that is handy for the problems that hold the organization back.

The culture of every organization is created at the top and moves through the organization like water flowing down a mountain stream. If there are problems at any level of the organization, the top leader shares culpability because the buck stops at the top, where the source is located.

Case Example

Let’s take a case example and show the stubborn consistency of this theory. Suppose an organization has some delivery problems. They are making large engines to go into military vehicles, and they keep missing the deadlines.

The vehicle assembly company is missing their delivery dates because the engines are late. Financial penalties are imposed, and the profitability is impacted to the degree that the CEO is alarmed. He demands to know who is accountable for the delays.

He finds out that some of the suppliers have been sending low quality parts that require a lot of rework. The purchasing manager is called on the carpet for not creating a more specific quality specification. The incoming inspection manager is faulted for not catching the errors at the receiving dock.

The CEO calls in the production manager and demands to know why productivity on the line is down by 18% this year. The manager tells the CEO that people are really upset because of no raises in 3 years.

The CEO wanders out on the production line and sees 9 engines lined up to be reworked. He chews out the quality inspector who tries to explain that the finish on the cylinder bores is too rough.

He also notices that there is a lot more clutter than normal on the production floor and asks the supervisor why, only to find out the cleaning crew has staged an informal work slowdown. They take extended breaks and goof off, and their supervisor lets them get away with working only a couple hours a day.

By now the CEO is fuming. It is obvious why things are going wrong in every corner of the building. People at all levels are not doing the right things, and the whole organization is over budget, late, and producing a low quality product.

Now suppose this CEO decided to bring in a consultant to help get things back on track. He tells the consultant that all of the managers and supervisors need some basic training in how to do their jobs better and how to “motivate the troops.”

The consultant decides to do some checking before making a recommendation. She spends a few days looking at the data and talking with people all over the operation, then she reports back her assessment.

The CEO meets with the consultant, and is all ears on what needs to be done to bring the operation back into control. The consultant recommends that the CEO push his chair back from his desk, stand up, walk down the hall and go into the men’s room.

She suggests he take a good long look in the mirror at the source of his problems and ask himself some tough questions such as the following:

• Morale is terrible in this plant, and as the CEO, how have I been contributing to this problem?

• What is keeping me from fully holding myself accountable for this awful situation?

• In what ways have I been trying to lay the blame on the supervisors, employees, bad economy, suppliers, business downturn, competition, etc., and how can I deal with the current situations and business environment in a more empowering and effective way for all concerned?

• What fundamental changes in the structure, behaviors, values, and vision am I going to make to completely change the environment?

• What behaviors do I need to change at my level, starting right now, to build a culture of higher trust?

• In what ways can I change the attitudes of the workers by changing my own attitudes and behaviors?

• Since bonuses, or picnics, or parties, or hat days are not going to have much impact on long term motivation, how can I find out what really will inspire people and then implement the proper changes to the environment?

• How can I be a better mentor for my supervisors as well as train them to be better mentors to their own staff?

• How am I going to find a way to quadruple the time I have available to communicate with people?

• Do I need assistance to solve these issues? If so, what kind of help could I use and where can I find it?

• How can I know if, or when, it is time to pursue other opportunities and let someone with a different skill set handle the turnaround? Maybe someone else should be leading this company, since I have messed it up so badly.

Now the CEO is faced with an awful truth: the root cause of the problem is him. If he heeds the advice of the consultant, it means he needs to start by holding himself accountable, but that hurts too much.

It is so much easier to spot the symptoms and hold everyone else accountable. Unfortunately this CEO is not likely to hire that consultant, yet the advice he is hearing is spot on.

If we can get more top leaders to view their responsibility as creating a great culture where things work because everyone in the organization is turned on by the vision and trust in leadership is high, then excellence is possible.

It takes a wise and humble leader to view his or her role as creator and maintainer of the culture. Those who can do it will thrive, those who simply blame others will eventually fail.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Enjoy Your Wiggle

March 2, 2013

Wiggle croppedHow do you feel about being you? Be truthful with yourself, and think about how much you like yourself right this moment. This article, hopefully, will shock you into a different frame of mind relative to your happiness and the quality of your life.

I teach many online courses, and deal with students from all over the world. I recall one interchange between a student living in a frigid part of the USA and another student in Hawaii.

At one point, the student who lived in Detroit was lamenting another dreary day, and he had reached the breaking point. His comment to the student in Hawaii was, “Well, I have to take responsibility for my own misery. After all, I chose not to live in paradise.” I immediately wrote to the complaining student reminding him that “paradise” is a state of mind rather than a state of the Union.

There are numerous things that gauge the level of satisfaction and happiness we milk out of living. This article focuses on one’s perception of self. Most of us are in the middle of a long progression of the days of our lives. It feels like we have been around forever, and we have a long way to go before somebody puts us in a pine box. We live each day reacting to the forces and challenges that hit us. Some days are good, and others are bad.

We are what we are because that is what we have chosen to be. Many people go through life being unhappy with themselves and blaming others or circumstances (like if I only had a smaller nose). We have such a short time on this planet, and it would be smart to be happy with ourselves first and foremost.

Nobody else has to wake up with you and be with you 100% of the time, so if you are not happy with yourself, the quality of your precious life is diminished. Who would be to blame for that? Hmmm…let me think.

My observation of our lives in the grand scheme of the universe and the ages is that human beings are all like little worms. You have to go up only a few miles and look down through a telescope, and you can observe us all wiggling around all over the world as we move through our day.

We show up and wiggle around for a fleeting 80 or so years, and then we are gone. Eighty years in celestial time is hardly a blink. Better make sure you are enjoying your wiggle. Our possessions that we covet, our money that we lust after make very little difference in the end. All that matters is how much of an impact we have managed to have on others, how much love we have generated, and how much we have enjoyed our wiggle.

What are some of the things that contribute to enjoying your wiggle? Here are a few examples. (Note, this list is not exhaustive.)

Making a contribution: We all make contributions, both good and bad. If you have provided one shred of thought that has been recorded and provided value to other people, you have made a contribution. Two shreds counts for double that value, so provide many shreds of value to the advancement of society.

Finding honest love: If we feel deeply in our soul that we have loved the people in our lives, then we go to our grave reflecting on a life well lived. This, of course, includes family, but it also includes heroes, mentors, classmates, pets, friends, grocers, ducks, lamps, books, and any other person or thing that we truly love.

Believing in an Infinite Power: Many people think of this as religion, but it really covers the entire realm of spiritual awareness. I do not know about you, but I really do believe that something is guiding my steps at times, and it is not just me. There have been too many remarkable surprises handed to me in life for me to take credit for thinking them up or for them to be just random coincidences. You can call it what you wish, but there is an Infinite Presence there somehow.

Helping others: Whenever you give of yourself to help another, you feel great about yourself. That effort is a really good wiggle in your daily routine. The help can come in any form, and the only criterion is that at that time you were thinking more about the other person’s situation than your own. The help could be financial, physical, emotional, or even comical.

Making something: To create a thing of beauty, or even ugliness since beauty is subject to interpretation, is a good wiggle. Some people are really good at this, like my father, who painted over 2000 fine watercolor paintings after the age of 55. Some people create great food or fine woodwork. To shape the elements into a new configuration that has never been done is intrinsically rewarding. Most creations are not marketable, but they are physical evidence that we were around and wiggling happily.

Teaching or mentoring: As we seek to impart some of our wisdom onto other people, we give the gift of knowledge. It is a subset of helping others, but this one is special, because we target the help on an individual who benefits from it. For a person with great insight and knowledge to keep it to himself really wastes his wiggle time. I think it is really difficult to mentor from the grave, although some people do believe strongly in doing it or receiving it, which is part of their own wiggle.

Appreciating what you experience: This attitude is all about not being numb to the beauty all around us every day. Seeing the small acts of kindness of one person toward another brings us joy. Marveling at the beauty of a flower, the taste of raspberry Jello, or the Bach B Minor Mass provides deep joy, but only if you are awake and paying attention.

Loving what you do: The ability to look at each day as an adventure into the possible instead of a drudgery of our current agony is what lifts us up. Hope is there when you enjoy your work and your play. There is a choice you make every day as you wiggle through it.

Those are just eight examples from the top of my head of how to make the most out of your 80-year wiggle. Who knows, you might beat the odds and wiggle until you are older than 100, or you might check out in your 20s. You will notice the absence of wealth or possessions on my list, because I think those things dry up and blow away very quickly after we stop wiggling. In the grand scheme of the world and the eons of time, the only thing that really matters is what you did with your opportunity to wiggle, not how big a pile of clutter you were able to generate.