"There is no substitute for profound knowlege." - W. Edwards Deming

I recently read an article at Quality Digest called Profound Knowledge in Complex Systems: A Business Case. The article describes the work of Andrew McKeon who recently keynoted at the W. Edwards Deming Institute and Purdue University's 2013 Annual Fall Conference.  McKeon spoke on the importance of sustainability and "doing the right thing" in business. He defines sustainability in two words: Systems Thinking.  McKeon says “The ultimate system is our planet, and the ultimate aim is survival and continuation of life over the long-term,” He goes further to say Deming’s ideas on understanding systems are necessary to solve today’s problems.

If you have an interest in systems thinking and sustainability, I recommend this article. You can read the article here: Profound Knowledge in Complex Systems: A Business Case

Investing and Complex Adaptive Systems

Here's an interview with Michael Mauboussin, Chairman of the Board of the Santa Fe Institute, an organization which specializes in the multidisciplinary study of complex adaptive systems.

Complex adaptive systems are comprised of heterogeneous agents (e.g., ants in an ant colony, neurons in your brain, investors in a market) which interact leading to "emergence".  Emergence produces a global system with properties and characteristics that cannot be deduced solely by looking at the heterogeneous agents.  As Mr. Mauboussin says, reductionism doesn't work.

In other words, resulting behaviors of these systems are not always what you might expect.

Mauboussin on the Santa Fe Institute and Complex Adaptive Systems

Somthing to think about....

I read a great quote this morning by Hannah Arendt: "Truth carries within itself an element of coercion."

New Content at Innovation in Construction

I have been curating a topic on ScoopIt! for the last couple of months called Innovation in Construction. I am coming to believe that the construction industry could use some creative thinking. The construction industry is mature.  Humans have been building since the beginning of humankind. It is no wonder there is a lack of creativity in the industry.

This is not to say the industry is completely stagnant. There are some glimmers of creativity in the industry however. Large construction companies such as Skanska and PCL are leading the way in modern prefabrication methods (not your well established "mobile home" technologies but creative ways to integrate prefabrication into tried and true site construction processes). If you have any interest in the melding of technology and construction and possibly where the industry is heading then check out Innovation in Construction.

Innovation in Construction

Thank you for your support.

Quality of Service

This post was informed and inspired by Frank Sonnenberg. You can follow him on Twitter here (@FSonnenberg).

My family and I recently visited a well respected chain restaurant in Chicago to celebrate my birthday.  We had been to this restaurant several times over the last few years and had always experienced good service and quality food.

We had made reservations and arrived on time.  When we were seated, I noticed there were many empty tables (clue #1).  We were seated. Our waiter arrived in about five minutes (five minutes can seem like a long time - clue #2).  We placed our drink order.  Then we waited. Waited. Waited.  Approximately ten minutes later some of our drinks arrived (see previous comment re a five minute wait - clue #3).  Another five minutes or so passed, the waiter arrived with the remaining drinks. My son-in-law told the waiter he had a chipped glass (clue #4).  The waiter whisked - literally whisked - the glass away without saying a word and went to service another table.

Well, by this time, we were not happy campers, as they say.  T-minus twenty five minutes and the waiter comes back with a glass and asks for our order. I ask the waiter if he does not want to wait on us as it has taken twenty five minutes to get to this stage of the food ordering process. I tell the waiter that we are leaving and need the ticket to pay for the drinks.  I hand him a credit card and my frequent diner club card (this is a chain owned by a large restaurant conglomerate).

At this point the service improves noticeably.  The manager comes to our table to apologize. I say we just want to pay our bill and leave.  He says he is picking up the tab. I am not impressed.  On the way out, I tell the manager that we will never be back.

The point of this story is it only takes one bad experience to lose a customer for life. Customers hold grudges and have long memories. This one experience has colored my opinion for all restaurants owned by this company, not just this one brand.

Customer experience is everything. In the restaurant industry, it is the holistic experience that customers remember, from the valet parking to the coffee and dessert. Any weak link in the chain can be costly, from chipped glasses to apathetic wait staff.

Cheers.

New Content at Innovation in Construction

Articles about innovation and architecture.  Check it out!

 

Innovation in Construction

Eiji Toyoda Dies at 100

This NY Times article made me think of a book I read years ago, The Machine That Changed the World by Womack, Jones and Roos.  That book did more to form my outlook on manufacturing and lean production than years of business school study. A great book about a world changing process.

Rest in peace, Mr. Toyoda.

Eiji Toyoda, Promoter of the Toyota Way and Engineer of Its Growth, Dies at 100

The Machine That Changed the World: The Story of Lean Production-- Toyota's Secret Weapon in the Global Car Wars That Is Now Revolutionizing World Industry