The Data Heads

If you haven’t been following it, the discussion about the data shuffle has been continuing over at LInkedIn.

Laura Wright posted a comment yesterday:

Is there SOME value to the ‘data shuffle’? E.g., deep knowledge that can help the green or black belt discern nuances to their process analysis that otherwise wouldn’t be had…and so a better solution comes to light? Don’t get me wrong – I do believe data shuffle is wasteful…but some fruit can be gleaned from the exercise.

I think this is a great question, and I agree with her comment. But I also wanted to push the topic out a little further.

I was still trying to formulate a response when Terri Jostes weighed back in with a comment that said what I wanted to say far better than I could have:

I agree with Laura in that there is no substitute for an intimate knowledge of your data. Understanding where it came from, what it means and the process used to acquire the data is absolutely critical. But after that’s been figured out, a mechanism for streaming process data to managers and process improvement experts has to be put in place to free your belts from the ongoing task of “cleaning up” the data or linking files from multiple databases so it can be used.

In the interest of full disclosure I need to point out that Terri is a former user of the GainSeeker Suite. She comes to this after having lived with the data shuffle and found a different way of life. Actually some years ago I wrote up a case study about the experience of an unnamed Master Black Belt (who I just ‘outed’) at a financial services firm. Here is a link to read the case study, Building a Six Sigma Measurement System in Financial Services. At the end of the case study is a section on Lessons Learned, and the first lesson addressed this very point. Here is an excerpt:

Upstream manual data collection – According to the MBB who led the cycle-time-reduction initiative, the initial effort of capturing data manually first paid huge dividends as the deployment progressed. By engaging in manual data collection, the MBB was able to gain valuable insight into the nuances of the various operational definitions used by the process owners, and in the way the information system supported or did not support those definitions.

While an automated system has proved invaluable for collecting and analyzing massive amounts of transactional data, it is essential to develop an intimate, hands-on relationship with data in order to understand the system that produced it. This principle applies to any initiative or project that is focused on deriving long-term, leveraged benefit from an automated measurement system.

This lesson was reinforced later when the MBB implemented a similar measurement system in another part of the business. In this second application, she believed she knew enough about the system to go straight to automated data collection, but she discovered that there was no shortcut to forming a thorough understanding of the data by collecting it manually first. The second application took far longer to deploy, with many more false starts before realizing success.

Does this sound familiar to you? Use the ShareThis button below to mark this page, or leave a comment, tweet me, schedule a conversation, or call 800-958-2709.

Over at the LinkedIn Continuous Improvement, Six Sigma & Lean Group, I posted a discussion question that generated some great responses. Here was my original question:

Lean Six Sigma practitioner’s ad hoc data survey
Recently I was talking with a black belt who told me “I know exactly what you mean by the data shuffle. Three hours of my 13 hour day yesterday were spent doing the shuffle.”

The data shuffle is all the compiling, massaging, and manipulating data that you do to get something useful so that you can make meaningful business decisions.

My experience is that all that busy work undermines the cultural transformation that is needed in Lean Six Sigma deployments. In other words, if data were easier to get to, the corporate culture would be more apt to make data driven decisions.

I have a couple of blog posts on the topic.

For an example of the data shuffle, see http://www.hertzler.com/blog/dataheads/index.php/2008/12/doing-the-data-shuffle/

For more background on the relationship between data and cultural transformation, see http://www.hertzler.com/blog/dataheads/index.php/2009/03/hitting-my-forehead-with-the-palm-of-my-hand/

Is the data shuffle alive and well at your organization?
How much time do you spend doing the data shuffle for your projects?
Does the data shuffle undermine cultural transformation?

Here are excerpts from some of the responses:

From Shaun Wurzner:

Regrettably, [Six Sigma] arrived at a point where managers and business leaders had to demonstrate Six Sigma improvements and for fear of at best, never being promoted or at worst, being let go…. Incorporating the fear of employment with continuous improvement was in my opinion, a disastrous train wreck. As a result, managers (and I AM GENERALIZING) felt compelled to generate data to show improvement. Regrettably, the more paperwork and reports, the better chance of being viewed as a valuable results oriented contributor…

To tie back into Evan’s original question, another fundamental requirement of Six Sigma was the ability to access data to characterize process, identify sources of variation, and drive process improvement through various means… The ability to capture timely data continues to be one of the fundamental issues that challenges companies and practitioners alike…. I can tell you that so many companies drive their business without fundamental data collection and analyze tools. As an example, how many times have you seen someone apply an algorithm to a data set without checking it for normality and these are statisticians or quality “experts”. Not to fault them, but everyone is so preoccupied with the end results that they by-pass some of the fundamentals.

This is a powerful indictment: “Managers feel compelled to generate data to show improvement.” Wow.

But why should we be surprised? It is entirely consistent with Deming’s 14 Points, especially #8 (Drive out Fear.), #10 (Eliminate slogans, exhortations, and targets for the work force.), and #11 (Eliminate numerical quotas for the work force and numerical goals for management.)

Maybe it is time to dust off your 1982 edition of Deming’s “Out of the Crisis”. We did not learn those lessons well.

And from Terri Jostes:

The 7 types of waste are now known as the “7 +1″ or 8 types of waste with the addition of “Creativity” or “Human Potential” as the 8th type of waste. All the wasted effort of overprocessing, rework and motion (in the form of moving data from one database to another) associated with the “data shuffle” causes our intelligent, highly trained, well-paid green belts and black belts to spend countless hours in unproductive, frustrating activity.

Why do companies allow this to happen? In some companies, it is seen as a rite of passage for a belt or a necessary, if unsavory, part of the job. Some belts even like doing this type of work – they’re good at it! Of course they are…they spend a lot of time doing it!

Evan’s right…It’s time to be strategic about our data gathering, compilation and analysis. In order to create a “data driven” culture, clean, reliable data has to be readily available to all levels of the organization. Letting the “data shuffle” continue in our organizations guarantees lost opportunity in our improvement activities and operational performance.

I love that idea: “Rite of passage.” Did you have to go through this rite? What is your story?

And from Forrest Breyfogle:

Evan, you indicated that the data shuffle is all the compiling, massaging, and manipulating data that you do to get something useful so that you can make “meaningful business decisions.” If the result was to make meaning business decisions that would be one thing and would be waste in that the analysis was not performed efficiently. However, it appears to me that the problem is worse in that often there is playing games with the numbers to make a situation appear better than it is… We need to blend analytics usage within an overall business governance system.

Excellent point: This isn’t just an efficiency issue; we need better governance. Can better data help that?

And from Terry Burton:

Today’s turbulent economy requires much more targeted Lean and Six Sigma efforts that produce an accelerated level of tangible results. That means a rapid and perfected “value-added” execution. We need to stop the data shuffle, and the training of the masses and put the money on the table – Or it’s all just another bandwagon! Too many organizations are stuck on this”mad belt” and “data shuffle” mode with their Lean and Six Sigma deployments.

One of the largest inefficiences we observe that compounds the data shuffle is that people are using multiple versions of the truth (facts). This is prevalent in organizations where the formal enterprise system has broken down, or where people struggle with their own personalized kluge spreadsheets to get (data shuffle) the facts. Some people tend to grab and shuffle the data that is available, rather than think through the specific data elements needed to solve the problem.

Think about the obvious. Not only are these folks inefficient due to data shuffling, but they all have different versions of the facts when they’re done! Now this leads to the wrong actions and firefighting, and the data shuffle becomes a viscious cycle. Their organizations would be better off if they made their “data shufflers” sit there and do nothing! Unfortunately, these organizations are not improving at the rate of the economy so despite all the belts, they are falling behind.

The largest challenge with Lean and Six Sigma is quickly thinking through and acquiring the right data to make the right decisions and get the right results. Some of our clients have reached this “utopia:” Real-time, visual event-driven metrics, a single version of the facts, decide-act-measure in real time. Based on true potential, we see that well over 80% of Lean and Six Sigma deployments are failing. People are hanging up the window dressing and getting their belts, there’s a lot of data shuffling and charts, but cultural transformation is not happening.

This economic meltdown is a great opportunity to rethink the “what’s” and “how’s” of your Lean and Six Sigma deployments and shift into a higher gear of new results.

Important concept: “A single version of the truth.” This reminds me of a conversation I had with a test engineer at an audio amplifier company who told me “In the past, if I wanted that data, I had to go mine it myself… People would be reasonably questioning my political motives for saying ‘We had 94% first pass yield last week. Now we have this standard called Hertzler, and you can go get the same data I just got…”

And from David Back:

I can only echo the points made and pass on some of my experience with management teams. Management by facts is a major change for many leaders and it is far more than setting up data cemeteries and then having specialist analysts or Belts providing insight in parallel to routine business processes. Managers need to buy in to the strategic nature of the change and be equipped with the clear concepts to act in this way. The size of this step is generally underestimated, old habits die hard ! It falls to all of us that understand this issue to promote the change at every possible opportunity.

“Data cemeteries…” What a great term.

And from Ken Place:

Although I agree that “the data shuffle” is a problem, I see more instances where data is just not available, what is available cannot be used, and new or additional data collection activity is required before an effective Lean or Six Sigma effort can/should even begin. As a Master Black Belt, many of my Black Belt students come to the first week of class ready to hit the ground running with a project. When we discuss the details of “Good” data they realize that they must return to square one and generate some history of the current state before progressing. Rather than massage the data to make it useful I find they must disregard current data and re-collect. Clearly non-value added but seldom fixed at the root of the problem, The Business Management System (BMS). In my opinion the BMS, formerly known as the QMS, should be designed with the correct, robust metrics in place for each process. Those metrics should reflect the health of each process as it contributes to the system, so that a company is able to asses where their next opportunity for continuous improvement exists. Without ongoing correct measures of at least efficiency and effectiveness, projects are not properly prioritized and work cannot begin right away. Yes metrics should be strategically established and available at any time for accurate monitoring, measuring and continuous improvement efforts.

At the risk of over-simplyfying, build the measurement system and the the rest will be easier.

What do you think? Is the data shuffle alive and well at your organization? How much time do you spend doing the data shuffle for your projects? Does the data shuffle undermine cultural transformation? You can leave a comment, tweet me, schedule a conversation, or call 800-958-2709.

I’m tickled that The Elkhart Truth picked up our story about our tree planting project today. With Arbor Day coming up this Friday they devoted part of a page to local efforts to support trees, and our story was the lead.

When I announced the tree project in this space, I mentioned that I would come back later and share another baby step we’re taking to reduce our carbon footprint. Compared to all those trees, this one seemed small – almost trivial. But then I ran the numbers and it turns out that this one small step cut our electrical consumption by 16%. All of a sudden it didn’t seem so trivial after all.

Back in early February I started writing down the reading on our electrical meter every morning when I got to work. I subtracted the prior day’s reading to get the amount (in Kilowatt Hours) that we used the prior day.  If I missed a day (or the weekend), I just took the difference and divided it by the number of days to get the average rate for the period.

After about a month I pasted the data into GainSeeker Suite SPC Software and came up with this chart:

I also calculated the average daily cost and sent out this memo to my staff:

Here is the challenge: Lets pay attention to your own personal habits and see what we can do to chip away at our electrical consumption. Here are a couple of things you can do:

• Turn off monitors and desktop pcs on evenings and weekends.
• Minimize use of space heaters.
• Unplug any chargers or DC devices that aren’t actually charging anything. (An AC/DC charger consumes power if it is plugged in and not charging anything.)

You may have other ideas. Please try them out.

There are certain computers (like our servers) that need to be up all the time. But lets see what we can do if we try these minimal steps.

I’ll take the difference between now and sometime towards the end of April and buy lunch with the money we don’t give to the utility company. If it is a dollar a day it will be pizza. If it is more, well it will be nicer.

Then we continued monitoring the meter every day. Here are the before and after results on one chart. The Anchor Point (the vertical red line in the center) marks the day the email went out, and the shift in our process.

According to GainSeeker stats, the average daily consumption dropped from 1.9KWH to 1.6KWH. This is a 16% reduction – achieved by something as simple as turning off equipment that isn’t being used!

We had a nice party!

Why is this important? Here are some statistics about my home state, Indiana, of which I am less than proud:

• Indiana produces about 95% of its electricity in coal-burning generating plants.
• Indiana ranks 5th in the nation as the largest producer of carbon dioxide air emissions from electric power plants in the United States (122,094,588 metric tons).
• Indiana ranks 3rd in the nation in terms of the number of metric tons of sulfur dioxide air emissions (responsible for fine particle pollution and acid rain).
• Indiana ranks 4th in terms of the number of metric tons of toxic nitrogen oxides emitted into the atmosphere (responsible for acid rain and smog).
• Indiana ranks 1st in the nation for the amount of carbon dioxide emissions per person from all Indiana energy sectors.

All of this reminds me of the quote that was attributed to Pogo, the famous possum: “We have met the enemy, and he is us.”

So what are you waiting on? Turn off or pull the plug on stuff you’re not using. Its a great place to start.

And while I’m thinking of it, maybe Electrical Consumption needs to be on our list of KPIs (Key Performance Indicators).

What are you doing to reduce your carbon footprint? You can leave a comment, tweet me, schedule a conversation, or call 800-958-2709.

Forrest Breyfogle posted a great question over at Linked-In:

Does our corporate leadership’s relationship-building strengths make it a challenge for them to truly understand and resolve the fundamental system improvement and re-engineering needs of the financial crisis?

From examination of the myers-briggs personality types we note that not everyone thinks the same. One observation is that some people tend to be systems thinkers and others are not. Systems thinkers, according to the Myers-Briggs Type Indicator [MBTI] manual, are those persons who have NT temperament and make up only 15% of the U.S. male population (female is less). My hypothesis is that high level government and business decision makers do not tend to be system thinkers because it takes a lot of relationship building to move upward. If this is true, many of our overall decision makers can have a very difficult time approaching the economic crisis as a system issue that needs process improvement/re-engineering. What are your thoughts?

I think Breyfogle may be on to something. I’ve taken the MBTI, and I’m an NT. I realize that I think differently from a lot of people.

What I’ve learned, however, is that ready access to real-time data helps people who are not systems thinkers see connections they would otherwise miss. That’s why having a good theory of data and making data more visible and accessible is so important. That is how you turn data into knowledge.

The follow-up comments are interesting and reveal a wide range of opinions about the underlying causes (and subsequent improvements needed) of the recession.  My own opinion?

What the MBTI doesn’t address is the question of values raised by some other commentators. Is the term ‘free market’ used in the way classical economists advocated: a market free from monopoly power, business fraud, political insider dealing and special privileges for vested interests? Or is it used in the more modern sense: free for predators to exploit victims without public regulation or economic policemen?

I own a small business and I don’t favor regulation, but I’m outraged at the way the marketplace has become free to enable Ponzi schemes and other scams to proliferate.

As a data guy and a systems thinker I would like to see us make better business decisions based on systems theory and data. But it has to be exercised in a free market that is fair and equitable, and that doesn’t reward theft.

What’s your personality type? Do you agree that it affects the way you view problems?  Which type of ‘Free Market’ do you advocate? You can leave a comment, tweet me, schedule a conversation, or call 800-958-2709.

This week MSNBC moved in next door and started a series called The Elkhart Project. Elkhart is our neighboring town, and it has become the poster child for the impact of the recession on middle America. President Obama has visited a couple of times.  After his election Obama chose Elkhart for his first trip outside of Washington in order to promote his economic stimulus package.

Our town, Goshen, is a little sister to Elkhart, and there is no doubt that the entire county has been hard hit in the last year. In February, unemployment in our county topped 18%. Our economy is heavily dependent on manufacturing jobs, and many of those are – excuse me – were in the recreational vehicle, manufactured housing and mobile home industry. Another sizeable segment of the economy serves the auto industry. So, as this blog post points out, we’ve had most of our eggs in one basket.

It doesn’t take a lot to imagine what an 18%+ unemployment rate does to ancillary businesses. These days you probably don’t need to make a reservation at a restaurant, and my friends in plumbing and construction businesses are – well – hurting.

As I’ve read all this coverage I want to say “Yes, but…”

Yes, but it’s not all doom and gloom. There is a little diversity in our economy. Our business, for example, helps manufacturers cut costs and improve efficiencies. We find that if we tune out the main stream media, we don’t see much difference in our activities or the demand for our products and services.

It’s oversimplified, but we’ve found that the manufacturing world has split into two camps. Some people are hunkering down and conserving every penny they can. This is understandable in a world where all the rules about credit that we’ve become accustomed to have been turned upside down.

But the other camp is retaining and even cautiously investing in people and systems that help them improve their operations. We’re talking to this second group.

This is the group that sees the opportunity to reduce material costs by 10% to 30%.

This is the group that wants to improve overall equipment effectiveness by 15%.

This is the group that wants to improve process cycle times by 90%.

Some of these are even located in Elkhart.

There are other success stories in our county. For example, The Red Post has a cool electronic signage product they’re delivering all over the country.

Another exciting business is Lucid Energy, which intends to revolutionize the way the world creates and delivers electricity.

I don’t know anything about the finances of either of these companies, but they’re demonstrating the innovation, wonderful entrepreneurial spirit that is so prevalent in our county, and I’m betting they’re doing just fine. We are.

What about you? Is your company seeing the opportunities, or only the bad news?  You can leave a comment, tweet me, schedule a conversation, or call 800-958-2709.

A recent article on SearchDataManagement.com about a Gartner Group conference on Business Intelligence (BI) discusses the fact that business intelligence is probably the number one priority for CIOs, but most companies have not translated that prioritization into high value.

That conclusion doesn’t surprise me. I’ve been arguing for sometime that most businesses under-utilize their data assets. Here are a couple of blog posts, looking at topics like BI as an oxymoron, technology and culture, and the key drivers of Best-in-Class manufacturing.

In this latest story, I especially like this prescription for addressing the problem:

IT workers must reconsider how they deliver information to end users. Traditionally, on one end of the spectrum, users either access information through static reports or through ad hoc queries, Schlegel said. Instead, IT should focus on developing interactive reports to meet both demands.

On the other end of the spectrum, more sophisticated users often create their own spreadmarts, which by definition fall outside the view of IT, to make up for the limitations of ad hoc queries. IT departments should develop data discovery environments that empower users to do the analysis they need, but which also let them connect that analysis back to the organization.

That sounds to me like a dashboard that users can drill into to get to the underlying data. It sounds to me like an analysis wizard that guides users to the underlying sources of variation in a process.

IT people do sometimes lose sight of their real goal. As one conference attendee, Chad Erman, head of BI for Southwestern Energy put it, “We noticed a lot of people think in terms of reports, instead of BI or key metrics. What I constantly had to remind them … is: What is the question you’re trying to answer? Then work to achieve that goal.”

Getting business leaders the right tools can go a long way to enabling that shift.

What about you? Are you getting high value from BI? If not, what are your road blocks? You can leave a comment, tweet me, schedule a conversation, or call 800-958-2709.

This post is a departure from my usual ramblings about how real-time access to accurate, actionable data can help drive business transformation, save money and increase profits. Actually it is still about data and how we’re responding to data, but has a slightly different twist.

There has been a lot of buzz in the mainstream media in the last year or two about ecological sustainability and “going green”. The science of global warming is real and we need to pay attention to the data. We can’t conduct business – indeed our lives – as if it doesn’t matter.

This post is about a tiny but concrete step our business has taken to respond to that data by planting 600 tree seedlings on our property.

Our business produces a lot of carbon. We run a lot of computers, and we’re often on the road to be with our customers. Since we produce so much CO2, it made sense to us to look for ways to offset that production. It isn’t a panacea, but there is a lot of evidence that trees can sequester CO2 and help reduce carbon emissions.

Meanwhile our office building is in an industrial park. It sits on the front half of a two acre lot. The back half of the lot is land-locked; you can’t get to it except through our parking lot. This aerial view shows the building and parking lot in the bottom half of the picture, with the vacant space in the top half of the photo.

Over the years that we’ve occupied this space we didn’t bother to mow the back half of the property and it became overgrown with weeds. By last summer it was an eyesore.

Our home town is known as “The Maple City. ” Trees are so important here that our city government employs a full time forester. Last summer I invited him out to our property and we talked about how trees could help.

He recommended that we purchase seedlings from the state government and plant a combination of evergreens and hardwoods. We did some rough calculations and came up with a count of between 600 and 800 trees.

A friend helped me track down a local tree planting service. They took care of all the details for me, even ordering and picking up the trees from the state nursery. Yesterday they planted 600 trees. We planted alternating rows of white pine and a mix of three hardwoods: red oak, tulip poplar, and wild cherry. The pine will grow up first and force the hardwoods to grow straight and tall.

Here are pictures of the planters at work:

The end result is – well actually – the start. It will take years for these to become a full grown. But here is what the property looks like today. (Same view as second photo, above, followed by a close up.)

Sometime soon I’ll write a post about another step we’re taking to be a more responsible and sustainable business, and this story will include some real-time data.