Quality Management Methodologies/Standards Compatibility: A Basis for Continual Improvement and Excellence

By Ernie A. Cevallos

The notion that quality management is about minimizing defects, especially in production, is an outdated view of what it is and how to improve it. This aspect has long been an entry-level requirement in competition, but is no longer enough from a customer's perspective. Customers expect buying experiences to be flawless. They evaluate quality based on the total value of the offer.

Productivity and Leadership Insights from George David, CEO and Chairman of United Technologies

By Ernie A. Cevallos

What brought about the transformational change and growth that United Technologies (UTX) has experienced under the leadership watch of George David? Since 1992 the Company has produced total shareholder returns of 338%, international revenue grew from 25% to 60%, market capitalization grew from $6B to over $72B, operating income margin grew from 5% to 14%, and EPS grew over 105% in the last five years.

Decision Traps: Barriers to Better Decision Making

By Ernie A. Cevallos

At every step of decision making misperceptions based on incorrect input, biases, lack of information, and other traps can corrupt the choices we make. We are particularly vulnerable to traps involving uncertainty because most of us are not good at judging chances. Complex and important decisions are the most prone to distortion because they tend to have many assumptions, estimates, and influence by misaligned parties.

Thoughts on Leadership

By Ernie A. Cevallos

Leadership and managerial ability are not about mystical skills or pure personality traits that only a chosen few were born with. Leadership is different from management, but it does not mean that leadership is superior or a substitute of management skills. Rather, leadership and management are two complementary competencies, and both are necessary for the success of any enterprise. Leadership complements management; it does not replace it.

Flat World Business Rules

By Ernie A. Cevallos


“The Six Sigma master was once the undisputed authority in management. But Fortune is finding that today's smart CEOs are following a different set of rules.” A recent article in Fortune blasted out the news that Jack Welch's rules for running a successful business have gone out, and the poor guy has only been out of the corner office for five (5) years. How time flies. Yet in the offices of corporate America, the momentum of the old rules is strong. Many business leaders are following playbooks that apparently have been distorted by progress and time.

If you didn't see the piece, the list was kind of interesting:

Peter Drucker's Legacy Includes Simple Advice: It's All About the People

By Ernie A. Cevallos

Peter Drucker understood the value of people in the business equation a long time ago. In his last best seller book author Jim Collins deliberates on what could merely good companies do to become great. One of the no brainer findings had to do with the importance of people. Surprise, surprise?

It is evident that one of the primary objectives in making a company great is to get the right people for the task(s), and create a culture with self-disciplined team players who are willing to go to extreme lengths to fulfill their responsibilities. This truth about business is not revolutionary or new, besides Drucker and now Collins, the late W. Edwards Deming had also been preaching it with passion a long time ago. Why don’t we have more great companies with sustained growth and innovation? Well, that is the job of those of us in leadership roles; that is a fundamental that has to be right. At the end of the day huge value is created by getting the people truth right!

TQM, ISO 9000, Six Sigma: Do Process Management Programs Discourage Innovation?

By Ernie A. Cevallos

A Knowledge@Wharton article based on joint research with the Harvard Business School says now may be the time to re-evaluate the corporate efficacy of process management and tailor them to the right applications. Studies show that misapplied process management can hinder companies and dull innovation. "In the appropriate setting, process management activities can help companies improve efficiency, but the risk is that you misapply these programs, in particular in areas where people are supposed to be innovative," notes Mary Benner–management professor at Wharton.

Customer Value Propositions and Persuasion Effectiveness

By Ernie A. Cevallos

What is wrong with value propositions?

In today’s competitive environment creating and delivering winning value propositions is a fundamental expectation in the race to win more business and out perform rivals. It is evident that properly constructed and communicated value propositions make a powerful argument, and align the solution fit with the needs and buying criteria of customers. The goal is to persuade the customer by irrefutable proof that the value proposition represents a win-win business transaction.

Knowledge Driven Organizations Significantly Outperform their Rivals

By Ernie A. Cevallos

While conversing with an experienced sales manager, I wanted to learn if the resources being invested on a particular customer to develop an opportunity was justified. Was it more efficient to work on other projects that competed for resources, or was it better to continue investing in this project? This manager's response was "Let's stay the course for sure". In this example, the manager had figured out a labyrinth of issues including people, compelling event, solution fit, procurement processes, cultural compatibility, how the customer perceived value, and most importantly a convincing value proposition that was co-authored under the sponsorship of the customer. Did it work? Yes, the efforts of this knowledge worker produced a $15M sale.

This real life situation offers a window into one of the modern workplace's most vexing problems, the issue of knowledge management. The manager and his team had deciphered how to win this major contract and accumulated a series of advantages over the competition. But what will happen when he moves to a different job or goes to a competitor? Will productivity decline until his replacement becomes skilled?

True Value Creation and your Customers

By Ernie A. Cevallos

This paper is based on personal experience with the larger or major sale, and insights from the research conducted by Huthwaite. Major sales are more complex, take longer to develop, and typically involve many decision makers and influencers. Knowing how to navigate these waters and creating value is key to the success of any sales force. Indeed, the customer decides if the value is real or not. Customers have different notions of value, which are based on their particular circumstances, culture, procurement policies, leadership style of decision makers, business objectives, and ROI expectations. Different customers even in the same industry have varying degrees of value notions.

What is the Purpose of Dr. Deming's Theory of Management?

By ERNIE A. CEVALLOS
(This document was submitted to Professor Howard Gitlow of the University of Miami as a term-paper for MAS 610 Statistical Analysis for Decision Making Process -- Paper has been edited for shortened Blog publication)

Background

After World War II American industry returned to the peacetime production of consumer goods, for which there was unparalleled demand and no competition. Untouched by war, the industrial heartland produced cars, washing machines, vacuum cleaners, mixers, lawnmowers, refrigerators, furniture, carpet, and all the goods for the growing postwar suburbs inhabited by a generation of prosperous Americans.

The American corporation had fulfilled the promise of ‘scientific management,’ formulated by an influential industrial engineer named Frederick Winslow Taylor more than three decades earlier. Taylor had held that human performance could be defined and controlled through work standards and rules. He advocated the use of time and motion studies to break jobs down into simple, separate steps to be performed repeatedly without deviation by different workers. Minimizing complexity would maximize efficiency, although it was as bad to overperform as it was to underperform on a Taylor-style system.

Deming's 14 Points & System of Profound Knowledge

Deming's 14 Points
(Excerpted from Chapter Two of OUT OF THE CRISIS by W. Edwards Deming).

1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.