Both Peter F. Drucker and W. Edwards Deming are recognized as forefathers and titans of modern operational management.
Peter F. Drucker was an Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation. He invented the concept known as management by objectives.
W. Edwards Deming was an American engineer, statistician, professor, author, lecturer, and management consultant. He was famous for the industrial quality movement that inspired and influenced Japan’s growth to become the world’s second-largest economy.
There is one topic where Drucker and Deming had a significant disagreement. That…
The Shapes of Things to Come
There are two curves that changed my mindset on strategic operational management and caused me to question my organization’s senior leadership. I call them The Beauty and The Beast.
Part 1 covers The Beast. Part 2 covers The Beauty. Part 3 discusses what these curves mean.
The first time I saw The Beast, I recognized it instantly. It felt familiar. I had been living this curve each and every year since I had begun participating in my organization’s long-range business planning activities.
The Beast actually goes under a different name, “Hockey Stick Dreams, Hairy…
What’s the minimum effective dose of asset management assessment required to characterize the performance and maturity of an asset-intensive organization? How about just within maintenance and reliability?
I’m old enough to remember the Name That Tune game show popular in the 1970s. In particular, I enjoyed the Bid-a-Note part of the game. After being given a clue towards the song, the two contestants alternate bidding as to how few notes they need to identify it, ranging from seven to none at all. Bidding ends when one contestant challenges the other to name the tune or a bid of one (or…
Operational excellence seeks to leave the comfort of the local maximum for the absolute maximum. Sometimes we have to fall seven steps to rise eight. Where’s our next hill to climb? Find our grit to overcome the dip. Lean into it and face our fears. Make the leap.
Is your organization pursuing operational excellence? If so, you’re going to have to go down to go up. What forces are at play in your business to want more value from your assets?
I believe everyone is doing the best they can given what they’re asked to do and what they’re given…
What is the operational risk if not the production, cost and other threats that just haven’t been realized (yet)?
If I’m a senior operational leader I have two fundamental questions I need my organization to help answer about risk management.
Most organizations do an okay job answering the first question, even if there’s room for improvement. Answering the second question fully and completely is much more difficult because you need to have all…
If an organization aimed to achieve operational excellence through formal asset management, what are the important questions worth answering?
I’ve believed for some time a crucial feature of great leadership is the quality of the questions leaders ask of their organization with the quality and completeness of the answers the organization delivers. The right questions are powerful.
This begs the challenging question — What are the important questions to ask?
Let’s look at this challenge within the context of formal asset management to achieve operational excellence for asset-owning organizations.
Leaders open to hear and trust the people in their organization…
Asset-intensive companies have formal governance for finance, human resources and risk but not often for asset management, the reason they exist. Why?
I’m part of a team reviewing The Asset Management Landscape document on behalf of PEMAC, a GFMAM member organization. This is a very good document I often direct people to when they want to know more about the ISO 5500x Asset Management Standards. I rarely direct people to the standards themselves because, well, they read like standards. The Landscape document is a bit more practical in my opinion.
Demonstrating progress through a series of small connected improvements is the key to asset management value delivery. Just start and measure as you go.
I read an article recently by Jeff Haden on Inc. that highlighted how a series of small improvements add up to a large gain in results over time.
Jeff shares how the marginal improvement rule of 1% rule was applied by Sir David Brailsford to transform his British cycling team into Olympic and Tour de France champions in just three years. Let’s conveniently ignore allegations that the Team Sky winning clean claims were an empty pledge.
Are the plates broken or unbroken? Your answer hints at whether your operational risk management practice is exception-based or systematic and mediocre or excellent, respectively. How are you looking for trouble?
What is an operational risk if not a threat not yet manifested as undesirable cost, performance, safety, environmental, reputational or stakeholder impacts? Operational risk management aims to answer two questions: 1) What are my important risks worth managing? and 2) Are we managing within our organization’s shared risk tolerance?
Are the plates in the photo above broken or unbroken? It’s an interesting conundrum if you’re familiar with Schrodinger's cat…
Time keeps on ticking — into the future. So why are we so slow or reluctant to adopt best practices when we’re leaking value with our current practices?
I follow a hockey blogger who drops these old-timey sayings now and then. Every day at the same time I wait like Pavlov’s dog for his post and he never disappoints. Today, he used the term “burning daylight” to suggest our favorite hockey team needs to pull together a string of wins after a slow start in a shortened season to qualify for the playoffs.
I found out not long ago the…
Thought, Knowledge & Decision Enthusiast in Operational Excellence and Asset Management for Industrials at Scio Asset Management