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Part IV

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If we want to create solution or Vision - we need to agree what to change

to...

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THE SECRET BOOKOF FLOW

MANAGEMENT

IEvery day measure the %

of orders executed and the % of clients served appropriately

and on time.

IIEvery day track and identify the obstacles

impeding the speed of a flow.

IIIEvery day assess teamwork, not

assignments completed by individuals. Thusly you will instill

a self-regulating mechanism.

IVEvery month discuss the major obstacle interfering in a flow and focus entirely

on overcoming it.

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Why are managers inclined to measure each

department or even each employee separately?

This is since the pyramidical view on the organization fosters

the belief that the longevity of the pyramid depends on the quality

of its separate bricks. That means it is naively believed that the

different organizational functions act in isolation and that the sum

of the functions of separate departments and efforts by

individually-taken employees and managers determine the success of the organization. Furthermore

it is thought the sum of these efforts is equal to the

achievements of the organization.

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“Divide and conquer” has been transferred into the modern business organization, is upheld by all methods b a s e d o n a l l o c a t i n g “something” to a functional u n i t : t h e H i e r a r c h i c a l structure, Balanced Score Card, ABC, Profit and Cost centers and other methods for allocating costs. Due to such m e t h o d s , a l e a d e r o f a pyramidical organization, without realizing it him/herself, runs it – or more accurately – its departments and every single member on the road of the marginal individualization and egocentrism of internal competitiveness.

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Localized, individual measurements “dehumanize” an organization. Along with the men/flies, it also produces

“career werewolves”. Meanwhile career plans are based on internal competition – those steps up the ladder in the

pyramid that blind all persons climbing up them. Competing individuals do not associate with one another even under

normal conditions; thus they even become enemies during a time of crisis when special solidarity is required.

Thereby employees become overly individualistic on one hand while, on the other hand, as W. Edwards Deming

assures, employees and managers become a faceless mass to the company’s top management.

Then all that’s left, as usual in Hollywood’s movies, is for the lonely fighter – a leader – to grab weapons and battle with

the powers of the dark. 5

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Is it possible to get by with the one base measurement characteristic of Western management philosophy?

It would seem logical that a company’s entire measurement system is based on the effective measurement of an entity – an employee, a piece of equipment, a product, a department and such – at the operational level. One side of the coin is that it is characteristic for the Western culture of management to have numerous differing measures for different departments or resources. The other side is that all the measurements come together into one base measure – t h e e f f e c t i v e n e s s o f a separately-taken unit of a ratio.

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Every country should set up a National Institute for Simplicity.

Edward De Bono

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It is difficult for managers to see themselves in a self-organizing system even if they are daily participants within it!

One of many successful, self-regulating systems that people have created is road traffic.

Numerous individuals comprise the road traffic system, none of whom follows any sort of hierarchy. They have different levels of education, knowledge, social statuses and experiences. They all have their own temperaments, ambit ions, cel l phones and some of them even have children riding in their cars. How many traffic rules do all the people out on the roadways remember? They can probably recall no more than a few – on which side to drive and the meaning of a stop light.

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A simple conclusion can be

drawn. Traffic rules regulate the flow of the traffic process, not the

abilities of different

individuals. At the same time, these

rules are identical for all traffic

participants even for holly cows!

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E. Deming’s organisational structure

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E. Deming’s organizational structure

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TOSS OUT YOUR OLD NAVIGATIONAL SYSTEM, SINCE NOWIT‘S OLD - FASHIONED.

If you want to travel by waterways and repeat the success of the Vikings, You are obligated to toss out your company’s old-fashioned navigational system. It may have been suitable for travelling by land but it simply is not adjusted for the waterways. One advance warning – perfecting the system will not help, because its roots have rotted.

Management of waterways, or the navigational system of process flows, was taught by a management genius from the United States, William E. Deming (1900-1993). This man’s greatness comes from teaching Japanese companies how to manage production. Deming’s lectures to the leaders of Japan’s most famous companies did their job. He attested that a hierarchical structure does not reflect the logic of production and services process flows. Thus it is time to change it. Today the Land of the Setting Sun even surpasses the United States in production.

Flow chart as per Deming:

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There are two ways to travel – one by land and the other by water. A select few choose one way, and the majority

chooses the other. Which one will You choose?

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Meanwhile there are three main “flows of water” in every organization:

1. Flow of information. In a company, this is akin to the human nervous system, which relates what the market needs and how successful we are at servicing clients.

2. Flow of goods and services. In a company, this is akin to the circulatory system. Flowing blood, satiated with nutrients, covers the entire supply and production process – from the acquisition of raw materials to the delivery of production.

3. Flow of money. This is akin to the respiratory system, supplying the entire organism with oxygen. If there is no money in a company, there won’t be anything else either.

Concentrate on managing these flows, and You will accomplish the feats of the Vikings!

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ClientsSuppliers

Profit, ROI - Egocentric, internal orientation

Mngmnt Dream Team

Information - org. nerves

Product, services - blood

Money - org. oxygen

DDP, T/CU, POOGI

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What does the management structure of organization look like?

• It happens to be very simple.

• It’s the same as pictured by the Taoist symbols – Yin and Yang.

• There is a Flow Manager, and a Manager Servicing the flow.

• First assignment: manage the operational flow and speed it up.• Second assignment: analyze the reasons for flow

obstacles and eliminate them. 14

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TWO COMMANDMENTSFOR TODAY‘SBUSINESS ORGANIZATIONThere’s a deep chasm between knowing and doing. First, the old rules must be changed.

The job of a manager is to gather a staff not only for work-in-common but also for the constant improvement of the organization, the innovation of its business. A staff can be described as an entity of individuals being measured by identical indices and being understood identically.

If you introduce two new Commandments that are the same for the entire organization, you will develop an organization that is not only self-organizing but also self-improving – a united community and team to do the following:

IPerform the delegated divisional assignment

qualitatively, by the required capacity and in as shorta period of time as possible as per self-organization.

IIAllocate the remaining time for observing and

considering improvements regarding somelagging, critical operation of the company’s

business (by employees) or regarding the reasons for repeated

“fire alarms” involvingthe lateness in serving clients

(by managers)as per self-improvement.

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From a self-organizing to a constantly self-improving organization

Peter Drucker assures that, in our times, management engages in integrating people and it is deeply entrenched in the culture. Managers in Germany, the United Kingdom or the United States do exactly the same only in different manners. The difference between Japan’s economic success and India’s relative backwardness to a great extent can be explained by the fact that Japan’s leaders were able to plant imported concepts on management into the farrows of their own culture and make them grow.

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The formula to turn non-ferrous metal into gold

Performed work = completed assignment on time + invented and introduced improvement• Hitoshi Takeda, known in Europe as an

expert of Toyota’s secrets, is convinced that the leader of every company who wants to become a business magician, must adopt one secret ritual, believe in it and manage under its influence. “Today at the morning your company is in its worst condition compared to what can get done by evening,” says Takeda. • That cou ld be the mot to o f an

organisation that is self-improving every day.

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FORMULAFOR TURNINGNON-FERROUS METALINTO GOLDPerformed daily work = completed assignment on time + invented + introduced improvement

Knowing the secret formula is not enough if you want to get gold. The old rules must be changed for you to be liberated from the Centurion Guard for all times. The Eastern kaizen or “improvement” covers all areas in Japanese philosophy – from personal life to business.

Hitoshi Takeda, known in Europe as an expert of Toyota’s secrets, is convinced that a manager in any company who wants to become a business magician must adopt one secret ritual, believe in it and operate under its influence. “This morning your company is in its worst condition compared to what can get done by evening.” says Takeda.

That could be the motto of an organization that is self-improving every day.

“This morning your company

is in its worst condition

comparedto what

can get doneby evening.”

Hitoshi Takeda

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Formula for turning non-

ferrous metal into Gold

Performed daily work = completed on time +

invented + introduced improvement

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Darius Radkevičius lecture

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THE SECRET BOOKOF FLOW

MANAGEMENT

IEvery day measure the %

of orders executed and the % of clients served appropriately

and on time.

IIEvery day track and identify the obstacles

impeding the speed of a flow.

IIIEvery day assess teamwork, not

assignments completed by individuals. Thusly you will instill

a self-regulating mechanism.

IVEvery month discuss the major obstacle interfering in a flow and focus entirely

on overcoming it.

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Pyramid and hierarchical management – complete with all the consequential flows such as an orientation towards short-term results, overproduction, environmental pollution, anti-ecological mindsets and outright trickery? Or?

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What’s left is to choose: which is better – the Sun Tzu art of war or Wa harmony?

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It’s hard, to manage,

very hard..

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• Pyramid and hierarchical management – complete with all the consequential flows such as an orientation towards short-term results, overproduction, environmental pollution, anti-ecological mindsets and outright trickery? Or?

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What’s left is to choose: which is better – the Sun Tzu art of war or Wa harmony?

Process flow management and harmony – production only as a means of replenishing what has already been used to ease planning, lower overproduction and lessen production overloads.

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In conclusion . . . a Hamlet-type of question: “To believe or not to believe?”

Since physicists keep on asserting to now that their

science is impossible to

understand, then everything written here might be true

or untrue or it might be true and untrue at the same time.

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Author of “God, Quantum physics, Organizational structure and Management style”

http://www.amazon.co.uk/Quantum-Physics-Organizational-Structure-Management/dp/9955689234/ref=sr_1_1?

ie=UTF8&s=books&qid=1266446827&sr=1-1

You can order a book, workshop, or lecture, or

just a dream at:

darius@versloknyguklunas.lt

+37069841027 Darius  Radkevičius  

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www.god-­‐physics-­‐management.com

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