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S U M M A R Y


DIARY: September 9, 1995 02:30 PM Saturday; Rod Welch

Received article on TQM and Reengineering in Wired magazine.

1...Summary/Objective
2...Firing People Reengineering Fails Improve Productivity
3...TQM and Reengineering Advocate Different Empowerment Models
.........Cooperation v. Competition Binary Forces to Balance
.............Binary Forces Must be Balanced
.........Authority Devolves to Empower Individuals
.....Metrics - Overlooked
4..."Reengineering" = Information Revolution
.....Tofflers
5...Technology Not Improving Management Productivity
6...Reengineering and TQM Waining No Payoff from Computers
7...Information Highway Expands Impact of Error
8...Case Studies, Continual Learning
9...Synthesizing TQM and Reengineering
10...Deming and Hammer
.....Traceability is Overlooked Solution
11...New World Order Needs Communication Metrics
12...Riskier NWO Requires More Knowledge


..............
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CONTACTS 

SUBJECTS
TQM, Re-Engineering PM
TQM Objectives, 930204
Re-Engineer Project Management
Competition, Cooperation, Balance
Conflict between Competition and
Competition Conflicts with Cooperation,
Binary Forces Balance Secrecy Knowledge Accountability Mistakes Intel
Competition Cooperation Collaboration Binary Forces to Balance
Reengineering Improve Management
Flat Organization Empowers

1812 -
1812 -    ..
1813 - Summary/Objective
1814 -
181401 - Follow up ref SDS 16 5693.
181403 -  ..
181404 - John Kahl submitted today a copy of an article in a new
181405 - magazine....
181406 -
181407 -
181408 -                             Wired
181409 -
181411 -  ..
181412 - Review of article shows support for POIMS and Communication Metrics in
181413 - that TQM and reengineering are loosing favor because they result in
181414 - fewer people chasing more information, which in turn causes more
181415 - mistakes -- reduced productivity.  This supports POIMS concept of
181416 - tools to convert information into knowledge using the new management
181417 - skills of Communication Metrics, ref SDS 10 line 158.
181419 -  ..
181420 - Sent copy to Morris at ref SDS 20 0001, and later to Bill DeHart
181421 -
181422 -
181424 -  ..
1815 -
1816 -
1817 - Progress
1818 -
181801 - Firing People Reengineering Fails Improve Productivity
181802 - TQM and Reengineering Advocate Different Empowerment Models
181803 -
181804 - Scanned the article in Wired magazine by Art Kleiner, and created
181805 - ref OF 5 line 4 entitled....
181806 -
181807 -
181808 -           The Battle for the Soul of Corporate America
181809 -
181811 -  ..
181812 - The article generally explains how Deming's ideas which energized the
181813 - TQM movement, and Hammer's ideas on Reengineering, differ in method to
181814 - achieve the common goal of better performance.
181815 -
181816 -     Deming applies TQM "bottom-up" that draws ideas from the work
181817 -     force ref OF 5 PSQV, for improving coordination and "harmony" of
181818 -     processes that increase productivity. ref OF 5 423H
181820 -      ..
181821 -     Deming strives to avoid competition, ref OF 5 423H, and work force
181822 -     reduction, i.e., avoids firing people. ref OF 5 GX8H
181824 -      ..
181825 -     Hammer reengineers by hiring "experts" to design better work flow
181826 -     for better productivity, like engineers program computers.
181827 -     ref OF 5 H77H  People are then fired on the grounds that computers
181828 -     enable a paperless office that improves productivity, ref OF 5
181829 -     PUQS and ref OF 5 0637  Executives like reengineering for covering
181830 -     up bad management by firing people to reduce costs. ref OF 5 0356
181831 -     Firing people provides a quick balance sheet improvement, until
181832 -     lack of productive capacity and failure to design better work flow
181833 -     cause earnings to fall, then merger talks begin.
181834 -
181835 -         [On 960214 ABC broadcast of Nightline reports reengineering is
181836 -         a convenient rationale for firing people, rather than figuring
181837 -         out how to work more productively. ref SDS 27 5022
181839 -          ..
181840 -         [On 960329 reengineering convenient way to explain to cover up
181841 -         failed management by firing people to downsizing. ref SDS 30
181842 -         SF9H
181844 -      ..
181845 -     Improving work flow is harder than people realize, because at some
181846 -     point it requires a design that leverages human cognition, which
181847 -     is very difficult, as Landauer points out in his book, reviewed on
181848 -     950710. ref SDS 13 1222  See SDS advantages. ref SDS 13 8490
181849 -
181850 -         [On 961028 BPR is a reengineering method; article reports
181851 -         growing dissatisfaction because BPR failed to improve
181852 -         productivity and earnings. ref SDS 33 SR6O
181854 -          ..
181855 -         [On 000425 using technology to augment human intelligence,
181856 -         called Knowledge Management, is a secret of SDS. ref SDS 37
181857 -         0480
181859 -          ..
181860 -         [On 020608 BPR is identified as part of 1st generation of
181861 -         knowledge management that failed;  2nd generation of KM also
181862 -         failed.  Experts propose 3rd generation. ref SDS 38 KJ6G
181864 -      ..
181865 -     An example, of reengineering "experts" is advice by Axiom on
181866 -     950426. ref SDS 11 8849 and ref SDS 11 2394  Another example is
181867 -     discussion on 950705 proposing team leaders with computers replace
181868 -     project managers. ref SDS 12 7409
181869 -
181870 -             [On 950911 Tofflers advocate "empowerment." ref SDS 21
181871 -             0581
181873 -              ..
181874 -             [On 960103 WSJ article "Lead by Listening" ref SDS 26 0001
181876 -          ..
181877 -         Cooperation v. Competition Binary Forces to Balance
181878 -
181879 -         Deming focuses on cooperation and eschews competition within
181880 -         an organization.  The aim is to compete externally, by
181881 -         promoting harmony and security internally, using empowered,
181882 -         self-directed teams. ref OF 5 423H
181884 -          ..
181885 -         Hammer "reengineers" to create efficient organization of work
181886 -         by reducing management levels and using computers to speed
181887 -         collaboration, ref OF 5 OV4I and ref OF 5 0637, as discussed
181888 -         with Morris on 950705. ref SDS 12 7409
181890 -          ..
181891 -         Reengineering leverages competition among people to strengthen
181892 -         "systems" regardless of who is performing the work and how
181893 -         people feel about doing the work, which is different from TQM
181894 -         focus on improving worker satisfaction to improve
181895 -         productivity. ref OF 5 5Y5I
181897 -          ..
181898 -         A prior article reviewed on 930216 presented similar ideas for
181899 -         improving project management. ref SDS 3 6388
181900 -
181902 -              ..
181903 -             Binary Forces Must be Balanced
181904 -
181905 -             This reflects the tension between internal and external
181906 -             management, derived from the opposing drives of male and
181907 -             female genders, discussed at Cal Tech seminar on 921021.
181908 -             ref SDS 2 5696  Over emphasis on one or the other usually
181909 -             leads to problems.  Effective management must balance
181910 -             binary forces.
181911 -
181912 -
181913 -
181914 -
1820 -

SUBJECTS
Authority, Leadership, Project Management
Bottom up Leadership, Design
Quality Control, Metrics, TQM, Reengineering
Authority to Lead Requires Empowerment of
Deming, Edward, TQM
Empower New Skills of Communication Metrics
Empower Reengineer Reduce Bureauracy Unproductive Regulation Policy P

2809 -
281001 -          ..
281002 -         Authority Devolves to Empower Individuals
281003 -
281004 -         Deming advocates devolution of power to the people who perform
281005 -         the work, ref OF 5 GX8H, leading to a practice of
281006 -         "empowerment."
281007 -
281008 -             [On 970710 article by Intel says empowerment that reduces
281009 -             authority eliminates accountability, prevents use of good
281010 -             management practices. ref SDS 34 1431
281012 -              ..
281013 -             [On 950911 Tofflers advocate "empowerment." ref SDS 21
281014 -             0581
281016 -          ..
281017 -         Hammer (reengineering) advocates that authority travels from
281018 -         experts, i.e., those who control information also control the
281019 -         organization. ref OF 5 PTWT
281020 -
281021 -             [On 950911 "empowerment" is rearranging chairs on the
281022 -             Titanic; people need increased competence. ref SDS 21 0581
281024 -      ..
281025 -     Another difference seems to be that TQM is oriented more toward
281026 -     improving manufacturing operations, whereas, reengineering is more
281027 -     an "automated" management or "work flow" concept, similar to
281028 -     "Enterprise Work Flow" ideas reported on 940522. ref SDS 8 0001
281029 -
281030 -
281032 -      ..
281033 -     Metrics - Overlooked
281034 -
281035 -     Interestingly, this author does not mention a central thesis of
281036 -     TQM and reengineering to design work processes to improve
281037 -     productivity, by adding a "metric" to work, i.e., to find a way to
281038 -     measure performance.
281039 -
281040 -
281041 -
281042 -
281043 -
281044 -
2811 -

SUBJECTS
TQM, Reengineering
Modern Project Management (MPM)
Information Revolution v. Information
Automated Management
Computers Replace Managers
IT KM AI Reengineer Remove Management Levels Give People Computers fo
Computers Have Not Improved Productivity

3609 -
361001 -  ..
361002 - "Reengineering" = Information Revolution
361003 - ----------------------------------------
361004 - The author indicates reengineering schemes offer automated information
361005 - for improving productivity that justifies reduction in management
361006 - staff, as discussed with Morris on 950705. ref SDS 12 7409, cited in
361007 - the NWO paper as incorrect, ref OF 3 YD6O, and at ref OF 3 3300, and
361008 - explaining the result of management imploding, ref OF 3 7501 and
361009 - ref OF 3 0637
361010 -
361011 -     This position is reflected in the Van Kasper paper on Informaton
361012 -     Revolution reviewed on 931028, ref SDS 4 2526, which was found to
361013 -     be incorrect for the reasons at ref SDS 4 1287 and ref SDS 4 4757
361015 -      ..
361016 -     Van Kasper's paper may have been based on the prior publication of
361017 -     Hammer's ideas on "Reengineering" which according to the author of
361018 -     this article came to prominence in 1993, ref OF 5 TQ5F
361019 -     ..
361020 -     Hammer's main idea that computers justify reduction in work
361021 -     force through increased productivity, is challenged by Tom
361022 -     Landauer in his book "The Trouble with Computers ref SDS 13 line
361023 -     559, and ref SDS 13 line 587.
361024 -
361025 -        [See Fortune story that downsizing is only a "quick fix" to
361026 -        improve the balance sheet ref SDS 28 line 162, as a cover up
361027 -        for poor management.  See later discussion with General Hatch
361028 -        ref SDS 29 line 524, and use of these ideas in letter to PMI
361029 -        Comm, ref SDS 30 line 174.]
361031 -         ..
361032 -        [On 960410 Hank Hatch reports reengineering at Fluor Daniel
361033 -        substitutes compuer networking with email for collaboration to
361034 -        support downsizing that applies lean enterprise model of
361035 -        paperless office. ref SDS 31 KZ9F
361037 -         ..
361038 -        [Analysis on 971012 of U.S. Army Corps of Engineers report on
361039 -        Communication Metrics indicates management levels can be
361040 -        reduced by increasing span of attention since it increases the
361041 -        span of management control, ref SDS 32 line 135.]
361042 -
361044 -      ..
361045 -     Tofflers
361046 -
361047 -     Reengineering's reliance on increased information to improve
361048 -     productivity appears to draw support from Toffler's ideas per ref
361049 -     SDS 18 line 208.
361050 -
361052 -  ..
361053 - Technology Not Improving Management Productivity
361054 - Reengineering and TQM Waining No Payoff from Computers
361055 -
361056 - Author reports that TQM and reengineering has not worked as well as
361057 - hoped, ref OF 5 PURQ  Reengineering failure rate is reported at 50% -
361058 - 70%, ref OF 5 667L
361059 -
361060 -    [On 960329 reengineering convenient way to explain failed
361061 -    management as downsizing. ref SDS 30 SF9H
361063 -  ..
361064 - Computers have not yielded payoff for past 20 years, so people are
361065 - losing confidence, becoming disillusioned, ref OF 5 PURQ, as reported
361066 - on.....
361067 -
361068 -       921014 productivity not improved................ ref SDS 1 8399
361069 -       950710 computers used frivously................. ref SDS 13 1222
361070 -       950927 Intel gave up............................ ref SDS 22 7732
361072 -  ..
361073 - TQM has become so discredited that the author uses "Demingism" rather
361074 - than "TQM." ref OF 5 5B6M and ref OF 5 PUQS
361075 -
361076 -        [On 951101 loss of confidence in ISO similar to TQM.
361077 -        ref SDS 24 0774
361078 -     ..
361079 -     Reflects views presented at the Asilomar Conference on
361080 -     940612, ref SDS 9 WG6N, and later report by Morris at Chips that
361081 -     support for ISO, which is an outgrowth of TQM, is beginning to
361082 -     decline. ref SDS 23 0774
361084 -      ..
361085 -     Nothing can change the fact that as work becomes more knowledge
361086 -     intensive, better productivity requires a better way to "convert
361087 -     information into knowledge," and this requires tools that
361088 -     integrate time and information in order to overcome knowledge
361089 -     creep, ref SDS 18 line 78.
361091 -      ..
361092 -     The author seems to support Tom Davenport's findings in his HBR
361093 -     piece:
361094 -
361095 -                        Saving IT's Soul
361096 -
361097 -     ...reviewed at ref SDS 7 line 214 explaining that faster
361098 -     information has not improved productivity, as hoped by the
361099 -     reengineering folks.
361100 -
361101 -
361102 -
3612 -

SUBJECTS
Mistakes, Impact on Meeting Objectives
Information Management
New World Order - Information Highway
Risk, Drifting Off Course
New Realities 21st Century, Not Enough Time
Information Overload

4408 -
440901 -  ..
440902 - Information Highway Expands Impact of Error
440903 -
440904 - The author reports growing awareness that errors are multiplied by
440905 - computers, ref OF 5 line 128.  The effort at NYNEX addresses the same
440906 - issue, per ref OF 5 line 646, see revisions to NWO paper... ref SDS 15
440907 - 2541.
440908 -
440909 -     The author does not seem to recognize these same errors are made
440910 -     everday by executives, as cited in the NWO paper, ref OF 2 line
440911 -     442. ref SDS 15 4371.
440912 -
440913 -        [Discussed with Ron Howard at ref SDS 18 line 77.]
440915 -         ..
440916 -        [See example at ref SDS 29 7390.]
440918 -         ..
440919 -        [See denial of new realities (New World Order) that technology
440920 -        causes information overload. ref SDS 23 1759]
440922 -         ..
440923 -        [See book on management describing information overload. ref
440924 -        SDS 30 2830]
440925 -
440926 -     ..
440927 -     The JPL's Space Program "reengineered" its communications
440928 -     following the 1986 Shuttle "O" Ring failure ref SDS 2 line 688.
440929 -     Expensive auditing procedures were added to avoid future
440930 -     disasters.  However, now that the rate of information has further
440931 -     compounded, are these procedures still adequate in 1995, 10 years
440932 -     later?  Or, is there another disaster looming at JPL for the
440933 -     reasons cited in the NWO paper, ref OF 2 line 153.
440934 -
440935 -
440936 -
4410 -

SUBJECTS
Case Studies, Traceability, Continual
Continual Learning, Welch Management Method
Reengineer Project Management
Case Studies, Continual Learning
Knowledge is Power
Traceability to Original Sources

5308 -
530901 -  ..
530902 - Case Studies, Continual Learning
530903 - Synthesizing TQM and Reengineering
530904 - Deming and Hammer
530905 -
530906 - The author hopes the Deming and Hammer ideas can be synthesized to
530907 - result in a future capability that supports continual learning which
530908 - is a feature that SDS currently offers to implement Communication
530909 - Metrics, by recognizing the value of a system that captures peoples
530910 - ideas for solving problems and offering new innovations, ref OF 5 line
530911 - 702.  See POIMS at ref OF 1 line 132.  This seems to be the idea of
530912 - "case studies," discussed at ref SDS 19 line 74 and ref SDS 5 line
530913 - 153.
530914 -
530916 -      ..
530917 -     Traceability is Overlooked Solution
530918 -
530919 -     However, the author does not cite an awarness within either TQM or
530920 -     reengineering circles of the need for automating traceability
530921 -     which for the reasons at ref SDS 16 line 152, is essential to
530922 -     enable continual learning to occur.
530924 -      ..
530925 -     The author does point to a "map" on the wall in a NYNEX office
530926 -     that reflects relationships and wonders if this could be automated
530927 -     and applied more efficiently.  The answer is YES!
530929 -      ..
530930 -     A system of tying things together is essential to create threads
530931 -     of consistent meaning.  The system must be flexible so it can
530932 -     evolve as new perspectives emerge, yet permit enough consistency
530933 -     so that patterns can be clearly seen, as provided the Subject
530934 -     Index.
530935 -
530936 -
530937 -
530938 -
5310 -

SUBJECTS
New World Order - Information Highway
Risk Management, Dispute Resolution
Knowledge is Power, NWO needs Connections

5605 -
560601 -  ..
560602 - New World Order Needs Communication Metrics
560603 -
560604 - The concept common to both Deming (TQM) and Hammer (Reengineering) of
560605 - improving the design of work flow or "process" is called for in PMBOK
560606 - and the ISO 10006 criteria, ref SDS 14 line 247, and is applied by
560607 - POIMS to the practice of management, per ref OF 1 line 140.
560609 -  ..
560610 - Since work is becoming more knowledge intensive by automating
560611 - traditional manual labor, only by improving the capacity to think,
560612 - remember and communicate, can further productivity improvements be
560613 - accomplished, under Peter Drucker's formulation that productivity of
560614 - knowledge work is mainly a question of quality, ref SDS 5 3416  SDS is
560615 - quality control for management, ref SDS 10 line 158.
560616 -
560617 -
560619 -  ..
560620 - Riskier NWO Requires More Knowledge
560621 -
560622 - Neither Deming nor Hammer appear to address the increased risk caused
560623 - by the Information Highway, i.e., information overload.  Only a tool
560624 - that converts information into knowledge can address this growing
560625 - risk, ref OF 2 line 1272, and at ref SDS 10 line 210.
560626 -
560627 -
560628 -
560629 -
560630 -
560631 -
560632 -
560633 -
5607 -