Your Marketing Machine: February 2011

Friday, February 25, 2011

What Sales is All About!

This is supposed to be a parody but play it at your next sales meeting and see how many people relate to it!

From: taoofprogramming

Thursday, February 17, 2011

Could your Six Sigma Storyboard Compete?

A Six Sigma Storyboard provides a quick, visual summary of a team’s work. They are very well suited as presentation materials to highlight the work of the project, the improvements made and for executive overviews. I think Six Sigma Storyboard presenters should take it up a notch. A DMAIC presentation can have a little Jazz to it. Take a look at what these 87 entries did with a simple Wallboard.

BTW: I am still looking for a couple of Six Sigma Storyboards that I could use for before and after examples. If you have one that you would like to work with me on, please contact me through the email icon on the top right of the Business901 page.

The Ultimate Wallboard contest ended last December but showed a great collection of wallboards. I have included the Sony Wallboard for no other reason except I vote it for best music. However, it is pretty awesome what they do with it. I encourage you to view all 87 entries as I think they are great collection of boards that you may generate an idea from. Many of them are just pictures so it does not take that long.

Website: http://ultimatewallboard.com/

How Lean, Six Sigma and Agile all work under the same umbrella at Xerox

This is a transcription of the podcast, Adding Customer Value in Development at Xerox that featured Patrick Waara talking about Xerox’s use of Agile techniques. Pat has been with Xerox for nearly 25 years teaching Lean, Six Sigma, and Agile techniques to Xerox’s software development community improving their software development capability. Our conversation originally was designed to discuss swarming and Lean problem solving. However we ventured off into the subject of how Lean, Six Sigma and Agile all work under the same umbrella.

Adding Value in Development

Pat has both a BS and an MS in computer science from Michigan Technological University. He has held a variety of jobs at Xerox including developing user interface systems for Xerox’s DocuTech and Systems Architect for Xerox’s iGen3, all dealing with software development and systems.

Tuesday, February 15, 2011

Understanding Complexity utilizing Cynefin

The Cynefin framework draws on research into complex adaptive systems theory, cognitive science, anthropology and narrative patterns, as well as evolutionary psychology. It "explores the relationship between man, experience and context"^[1] and proposes new approaches to communication, decision-making, policy-making and knowledge management in complex social environments – From Wikpedia

Mark Schenk from Anecdote uses Pecha Kucha format to describe complexity using the Cynefin framework.

More information from Wikpedia: The Cynefin framework was originally developed in 1999 in the context of knowledge management and organizational strategy by Dave Snowden. It was originally a modification of Max Boisot's I-Space combined with the study of actual, as opposed to stated management practice in IBM. By 2002 It had developed to include complex adaptive systems theory and had started to become a general strategy model. From 2003 it was the further developed and elaborated with Cynthia Kurtz as a part of their work with the IBM Institute of Knowledge Management and with other colleagues in Cognitive Edge formed by Snowden when he left IBM in 2005.

The Cynefin framework has five domains. The first four domains are:

Simple, in which the relationship between cause and effect is obvious to all, the approach is to Sense - Categorize - Respond and we can apply best practice.
Complicated, in which the relationship between cause and effect requires analysis or some other form of investigation and/or the application of expert knowledge, the approach is to Sense - Analyze - Respond and we can apply good practice.
Complex, in which the relationship between cause and effect can only be perceived in retrospect, but not in advance, the approach is to Probe - Sense - Respond and we can sense emergent practice.
Chaotic, in which there is no relationship between cause and effect at systems level, the approach is to Act - Sense - Respond and we can discover novel practice.

The fifth domain is Disorder, which is the state of not knowing what type of causality exists, in which state people will revert to their own comfort zone in making a decision. In full use, the Cynefin framework has sub-domains, and the boundary between simple and chaotic is seen as a catastrophic one: complacency leads to failure.

Knowledge Creation will be the barometer of future success. From a personal standpoint, I have become intrigued by the Cynefin Framework. It seems to be a step beyond your more traditional knowledge management practices. If this is true, will it give me a leg up on others?

Monday, February 14, 2011

Lean Software and Systems Consortium 2011

The Lean Software and Systems Consortium (www.LeanSSC.org) is proud to present Lean Software & Systems Conference 2011 (LSSC11) is featuring an outstanding lineup of speakers, open space sessions, networking and social events, May 3-6, 2011 at the Hyatt Regency Long Beach, CA. Keynote speakers Chet Richards Author of Certain to Win: The Strategy of John Boyd, Applied to Business will talk about OODA Loop and Maneuver Warfare; and David Snowden Author and CAS Expert will talk about complexity and the Cynefin model.

Several of the speakers have participated recently on the Business901 Podcast and I encourage you to listen to them here.

Bill Dettmer, Senior Partner of Goal Systems International. Bill is the author of The Logical Thinking Process: A Systems Approach to Complex Problem Solving ) and Strategic Navigation: A Systems Approach to Business Strategy, two books around which Goal Systems International’s internationally renowned Thinking Process Course is based.

Don Reinertsen is president of Reinertsen & Associates, a consulting firm specializing in improving the product development process. I have followed Don’s writing for many years and recognize him as THE leading expert in the field of Flow. His writings are insightful, packed full of information and readable. When editing the podcast, I could not bring myself to cut hardly a word out of it.

Related Podcast: Creating Flow with Don Reinertsen

David Anderson, author of the recent book, Kanban appeared on the Business901 podcast and added 50 minutes of Kanban discussion. David covered a lot of ground in this discussion and answered a lot of questions for me that his book raised. David is a thought leader in managing highly effective software teams. He is President of David J. Anderson & Associates, based in Seattle, Washington, a management consulting firm dedicated to improving leadership in the IT and software development sectors.

Related Podcast: Kanban, could we call this podcast anything else?
Transcription of Podcast: Kanban discussion with David Anderson, eBook

I had a discussion with Alan Shalloway, the founder and CEO of Net Objectives. Alan is an industry thought leader, trainer and coach in the areas of Lean software development and the Lean/Agile field. He’s a popular speaker at prestigious conferences worldwide, as well as a trainer and a coach.

Blog Post: Is Agile growing into a larger umbrella?

Eric Landes is an Agile Project Manager who has been using Kanban for software development since 2007. He has worked with Scrum, XP and other agile methods for over the past 5 years, and has been managing software projects for over 10 years. Eric has his own blog, Corporate Coder which can be found at http://EricLandes.com. He is also a frequent contributor to http://developer.com.

Related Podcast: Scrum + Kanban = Agile Discussion with Landes
Transcription of Podcast: Discussion of Agile, Kanban, Scrum with Landes – eBook

Wednesday, February 9, 2011

Recommended Resources for Lean A3 Thinking

My new eBook, Marketing with A3 utilizes A3 thinking and enables you to apply a systematic method of problem solving to your marketing and sales. If you want to learn more about the A3 thinking process, this is my recommended list. There is little duplication of material between these resources and I think you will benefit from each and everyone of them. Tracey’s Business901 podcast on the Lean Problem Solving was excellent and would recommend you would start there.

In Understanding A3 Thinking, the authors first show that the A3 report is an effective tool when it is implemented in conjunction with a PDCA-based management philosophy. Toyota views A3 Reports as just one piece in their PDCA management approach. Second, the authors show that the process leading to the development and management of A3 reports is at least as important as the reports themselves, because of the deep learning and professional development that occurs in the process. And finally, the authors provide a number of examples as well as some very practical advice on how to write and review A3 reports.

Managing to Learn by Toyota veteran John Shook, reveals the thinking underlying the vital A3 management process at the heart of lean management and lean leadership. Constructed as a dialogue between a manager and his boss, the book explains how A3 thinking helps managers and executives identify, frame, and then act on problems and challenges. Shook calls this approach, which is captured in the simple structure of an A3 report, the key to Toyota's entire system of developing talent and continually deepening its knowledge and capabilities. The A3 Report is a Toyota-pioneered practice of getting the problem, the analysis, the corrective actions, and the action plan down on a single sheet of large (A3) paper, often with the use of graphics.

The One-Page Project Manager set a new standard as an understandable and easy-to-apply organizational tool, allowing managers to summarize complex projects on a single information-rich page. This book, third in the OPPM series, describes how to combine the OPPM with the Toyota A3 report to create an enhanced, integrated management tool.

The A3 Workbook: Unlock Your Problem-Solving Mind is designed to teach A3 Problem Solving to workers at every level of an organization. This workbook provides a practical tool for solving specific problems or for making a specific proposal, while also encouraging the development of a corporate culture that empowers all employees to support continuous improvement. The workbook follows the progression of a basic A3 Problem Solving format, offering instructions every step of the way.

Podcast on Lean Problem Solving: Is Problem Solving the Core of Lean Implementation?

Thursday, February 3, 2011

Bringing Current Replenishment Technology to the Supply chain

Chad Smith of Constraints Management Group was the guest on the Business901 Podcast. Chad is currently writing the third revised edition of Orlickys Materials Requirements Planning with Carol Ptak (a former B901 Podcast Guest).

Excerpt from the podcast:

Joe: The problem is my customers are all looking for shortened cycles but they're also looking for more customization. We need customization and shorter supply chain cycles or links. That, to me, is reality today. Am I wrong?

Chad: No, you are exactly right. That I guess is why I caution people that are in the LEAN community or in the TOC community to understand that the solution is not inward facing. OK. It is outward facing. It is the interface or the integration between linkages in the supply chain and that commonly occurs from the manufacture to distributor or manufacture to customer and then manufacture back to all its suppliers.

And let's face it. Let's be real here. Global capacity is exceeding global demand right now. So looking for better scheduling techniques inside of four walls. Instead of looking for better synchronization techniques across a supply chain or a product structure. In my opinion, the wrong way to go.

That is a... There is a pre‑requisite order here to getting better. OK? The pre‑requisite order is…listen to the podcast

Chad Smith is the co-founder and Managing Partner of Constraints Management Group (CMG), a services and technology company specializing in pull-based manufacturing, materials and project management systems for mid-range and large manufacturers. Chad has a wide range of experience in successfully applying pull-based systems within a diverse scope of organizations and industries.

Since the late 1990’s Chad and his partners at CMG have been at the forefront of developing and articulating the concepts behind Actively Synchronized Replenishment as well as building ASR compliant technology (Replenishment+®). Additionally, Chad is an internationally recognized expert in the application and development of the Theory of Constraints (TOC).

This is a podcast that you do not want to miss!

Lean Marketing: Sales Quotas lead to Waste

When everyone thinks of Lean they think of Muda or the waste. I am a firm believer that you never directly attack Muda in sales and marketing simply because most people do not know what works and what doesn’t. Lean is not all about Muda. James Womack himself suggested that Lean practioners should think about Mura (unevenness of flow) and Muri (overburdening of the process) first and then Muda (waste).

My example of this is sales quotas. Think about what happens at the end of month or end of quarter and even the end of the year. Sales are driven by milestones which often lead to discounts and delivery promises that cause Mura which results in Muri which turns into Muda.

Lean’s goal would be to reduce to reduce the range of variation and then adjust or improve the process to reach the needed output. I would suggest that sales quotas would be a form of tampering which leads to special-cause variation. Dr. Deming went to great lengths to illustrate the common forms of tampering in his famous red bead experiment. Tampering is present when adjustments are made to a process that only shows common cause variation. He proves that you actually do more harm than good.

Just about all variation within a process is due to chance causes, inherent in the design of the process. This process may or may not be controlled by you, it is likely determined by your customers buying process. Even at that, limits within which the common variation of a process can be determined from data collected. When all data points fall within these limits, the process is said to be in control and stable. Watch this video.

Control Charts

Back to Deming’s red bead experiment, problems arise when sales and marketing reacts to common cause variation as if it were special cause variation. Think about how many times pressure is applied to salespeople who have little control over the variation resulting from the design of the process? As a result, emphasis is placed on point-to-point variation rather than working to decrease all variation and improve the average.

No two customers are alike, all sales are different, and there is simply too much variability to ever make a process work. Variation is unavoidable in sales and marketing. However, the simple use of a control chart allows one to easily observe when the process is outside the limits, thus indicating special cause variation within the process. Your decisions should be geared toward improving the common variation versus increasing the number of special-cause variations.

Knowledge gained from understanding variation in your sales and marketing process will add improvement to your entire organization. As Deming states, “Management’s job is to optimize the entire system. Sub-optimization is costly.” All sales and marketing people should strive to reduce special-cause variation.

Your Marketing Machine