Bay Area Deming Users Group - October Minutes

[DanRobrtsn@aol.com]

BAY AREA DEMING USERS GROUP NEWSLETTER

Our next meeting is on Monday, 5 November 2001 from 6:00-8:30pm,
at Acuson in Mountain View on the corner of Shorebird Way and
Shoreline Boulevard.  Detailed directions available below.

PLANNED PROGRAMS: 

Please note that BADUG meetings are always open to all 
interested parties.  Dr. Deming's teaching extended far 
beyond the traditional confines of quality.  Consider 
inviting a friend or work associate who might share your 
interest in learning about, and discussing, innovative and 
effective theories on organizations, systems and management.

5 Nov:  This session will once again feature videos from 
the Deming Library -- "The Quality Leader" and "Profound 
Knowledge for Leadership".  Building on our viewing and 
discussion in September regarding the elements of Profound 
Knowledge, this session will highlight what leaders, 
whether by position or personal initiative, should consider
in carrying out their mission for improvement.  Facilitated
discussion will follow the viewing of the tapes.

ANNOUNCEMENTS: 

* The BADUG Systems Thinking Study Group meets monthly, 
prior to -- and in the same building as -- the main BADUG 
session.  Please call Karen Takle Quinn at 650-964-5195 
or email ktq@svpal.org if you are planning to attend in 
November.

* William McDonough, internationally acclaimed 
sustainability designer and architect, will be in the Bay 
Area on November 14-15.  Mr. McDonough is an internationally
respected designer and one of the primary proponents and 
shapers of what he and his partners call "The Next 
Industrial Revolution".  Time Magazine recently recognized
him as a "Hero for the Planet", stating that "his utopianism
is grounded in a unified philosophy that - in demonstrable
and practical ways - is changing the design of the world."
His firm's design of the Environmental Defense Fund offices,
completed in 1985, helped launch the 'green building' 
movement.  Mr. McDonough and his team are now working to 
transform the Ford Motor Company's Detroit area River Rouge 
factory into a sustainable building complex.  Mr. McDonough 
will offer the following presentations - all of  which are 
open to the public.  City Forum: Wednesday, November 14, 
2001; 2:00 - 3:30pm at Palo Alto City Hall - Council 
Chambers, 250 Hamilton Avenue Palo Alto, CA 94301. Admission
is free and reservations are not needed.  For more 
information contact: Amy Vossbrinck.  Public Forum: 
Wednesday, November 14, 2001, 7:30 - 9:30pm at the Teaching 
Center at the Science & Engineering Quad (TCSEQ200), 370 
Serra Mall - Stanford Campus; $10 students  $5 seniors.  
For tickets and directions please call the Foundation for 
Global Community, 650-328-7756 and ask for Carolyn Morris 
or Dilma Coleman.  Business Breakfast: Thursday, November 
15, 2001, 7:30 - 9:00am; breakfast, presentation and 
questions; 9:00 - 10:00am open discussion; Stanford Faculty
Club Main Dining Room; $40 includes breakfast.  To reserve 
your place:  Please contact Amy Vossbrinck at the Foundation
for Global Community 650-328-7756 or 
avossbrinck@globalcommunity.org

* April 5-7, the Capital Quality Initiative of Lansing, MI 
will host a Midwest Deming conference on "Lifelong Learning"
on the campus of Michigan State University.  Plans include 
topics of special appeal to educators at all levels.  
Contact Adrian Bass at abass@lansing.cc.mi.us, 517-483-1362
for further information.  

* April 19-21, the West Coast Forum: Creating New ROIs will
be held in Canoga Park, CA.  With planning coordinated by 
participants from several of the Deming Associations based 
along the US west coast, the conference will take an 
expansive look at returns on investment and explore new 
possibilities for ROI -- Revolutionary, Radical Opportunities
for Innovation, Improvement, Interactions, and Inspiration.
For further information contact Dan Robertson, Marcia Daszko,
or Bill Bellows (william.bellows@west.boeing.com).

* The W. Edwards Deming Institute announces a call for 
papers for its first research seminar, February 19-20, 2002,
in New York City.  Papers that link Dr. Deming's work to 
academic literature, or to other great thinkers are 
particularly sought.  To be considered, send an abstract of 
200 words or less by October 1, 2001, to orsini@fordham.edu 
or mail to The W. Edwards Deming Institute, PO Box 59511, 
Potomac Maryland 20859.

* WE ARE VERY INTERESTED IN GETTING YOUR INPUTS FOR UPCOMING
TOPICS and SPEAKERS. If you have inputs, please contact 
Marcia Daszko.  Also contact Marcia for details about 
upcoming programs.  Her number is 408-247-7757; e-mail 
address is MDaszko@aol.com. 

Surf the Worldwide Web to BADUG.  An overview of the group, 
past meeting minutes, and an index of Deming-associated sites
can be accessed via your web browser.  Find the site at: 

http://www.cafm-services.com/badug/BADUG-TOC.htm

Other websites to note:

www.deming.org -- The W. E. Deming Institute website is a 
great place to go for information on the Institute and 
links to various Deming resources.  

http://deming.eng.clemson.edu/pub/den/ -- The Deming 
Electronic Network -- This site, and its associated 
moderated internet discussion group, is the ultimate 
gathering place for those interested in ongoing dialogue 
about the implementation and analysis of Dr. Deming's 
teaching.  Go to the site listed for links to archives 
and to subscribe to the list.

October's Meeting Notes: 

"Strategic Leadership: Innovation & Quality" -- led by Marcia 
Daszko

Marcia started the session off by describing how today's 
businesses are creating positions that have the role of 
spurring and guiding innovation within the organization.  
If you search Amazon.com, there are 2,534 books (as of Sept.
30) returned for "innovation".  There is a fundamental 
difference between inventing and innovating -- Innovation 
is the process of taking something new, different, and 
unique to a market of users/customers.  Marcia asked herself
how would Dr. Deming look at the concept; how would his 
System of Profound Knowledge be applied?  He did not speak 
or write much about the process of Innovation.  When you 
look at his classic diagram of a system, Marcia believes 
he touches on it in what has been called the 'zeroth phase',
the generation of new ideas.  In some way at some time, we 
all find ourselves with the opportunity to innovate as we 
strive to make a difference.

Why is the consideration of innovation important?  An 
article in the October 1, 2001 San Jose Mercury describes 
the economic cycles of Silicon Valley - Dips are times 
where invention kicks in, with economic growth occurring 
as innovation brings out new inventions to create and grow 
new markets.  A study of the literature indicates that 
leadership is key to the process.  Continual improvement 
AND breakthrough ideas are both required.  Expanding the 
market (hark back to Dr. Deming's words) is essential to 
the long-term -- Just taking part of the already existing 
market will not do.  (Dan Burrus, who wrote "Technotrends",
asks, "Why compete, when you can have a new market all to 
yourself?")  One of the 'new ROIs' is Return on Innovation,
and the heart of innovation has to do with understanding 
the customer experience, in order to most effectively bring
new ideas to a market.

Marcia suggests that there are key differences between 
competing and innovating.  When simply competing, there 
will be resistance to change; while innovators will lead 
change and adapt to new circumstances.  Classic competitors 
will have a narrow vision, getting caught up in day-to-day 
issues; while innovators will have a broad range of 
experiences to draw from and look toward a bigger and 
better future.  Innovating companies will have an internal 
alignment regarding innovation and not keep centers of 
change separated and competing for resources.  Innovation 
becomes integral to a strategic, long-term approach.  
Passion and dedication are critical to successful innovation 
-- Organization leaders need to make room for non-linear, 
free-form, creative thoughts

We studied some of the reasons for how and why companies 
lack innovation in their business system.  "Leaders" 
without knowledge and commitment tend to encourage autocracy
and bureaucracy -- Innovators will have a system within the
organization to listen for new ideas.  Fear permeates an 
organization lacking innovation, where risk is minimized, 
change is resisted and the unfamiliar is rejected.  Barriers
between people and departments (competition for rewards/
recognition comes to mind here) spoil the alignment and 
teamwork required to foster innovation -- No common language
develops, and the cultural attitude is to protect turf, 
versus sharing new ideas.

In a system of innovation, key factors emerge to help assure
success.  Leadership has developed knowledge about systems,
people, learning, variation and customers -- And leaders 
will have to be up for the challenge!  Both strategic and 
operational thinking are in action.  The organization has, 
and is aligned to, an aim driven by a focus on customers.
The culture of the organization encourages creativity, with
open lines of communication to field questions and listen 
for inputs.  There are developed methods and tools 
supporting processes that are recognized as being interdependent.

A point of clarification came up in our discussion.  
Innovation doesn't have to be focused strictly on what is 
introduced external to the business.  Process (yield) 
change can come about via a process of innovation, too -- 
Internal innovations eventually ripple through to provide 
benefits to customers and grow markets.

In the process of innovation, creativity plays an important 
part.  Edward deBono states that creativity is the serious,
deliberate and systematic generation of new ideas, concepts,
and new perceptions of value.  In the Plan/Do/Study/Act 
cycle there is an inductive phase where creativity helps 
develop new theories.  Then there is a deductive phase 
where creativity plays a role in creating the plan for 
improvement.

A point that Marcia heavily emphasized was regarding the 
creation of "ideas".  An organization needs to have many 
ways to come up with lots of them.  Brainstorming is 
traditionally used.  Other tools/methods are out there, 
too.  Expose yourself to pictures, music, and many other 
stimuli.  Investigate processes that have no connection 
to your own -- Create new connections.  To put a point on 
the importance of this, it is said that a typical 
pharmaceutical company generates thousands of ideas, with 
10% going to the development stage, where 10 will be 
processed.  ONE new product will end up going to the 
pharmacy shelf.  On average, it is a 15-year process!

One last concept was that your customers will not be your 
visionaries.  A company must go out and observe customers 
directly.  The trick lies in not asking them what they 
want or need; they will not know -- Just hang out with them,
and pay attention to how they use your product or service.
Then reflect on what can be done to grow the market and/or 
create new ones.

In her summary, Marcia emphasized that innovation can 
flourish in the organization when leadership possesses 
knowledge, is committed to improvement and innovation, is 
focused on AIM and is closely connected with customers.

For further information on this topic, plus a list of books
on the topic, you are invited to contact Marcia using the 
information found at the end of this newsletter.

/s/ Dan Robertson

-------------------------
Another reminder to our readers -- As of January 2002, our 
BADUG monthly newsletter will no longer include minutes from
the meetings.  The meetings will definitely continue; but, 
regretfully, I'll no longer be able to keep producing the 
minutes each month...  Some of our speakers may create 
electronic lecture notes, or present PowerPoint slides, 
that they may be willing to share -- In place of the minutes
for those cases, we will do our best to provide contact 
information, so you may make the request directly to them.
Our newsletter will continue to provide you with 
announcements of upcoming BADUG meetings/topics, and we 
will include the announcements we hear of regarding upcoming
Deming-related classes, conferences, and other events.  It
has been a great honor to provide these minutes over the 
years, but other activities are coming that will take 
precedence, and I'm going to have to hang up my quill for 
the time being.  Thanks in advance for your understanding 
and support. -- /dr

To receive the Bay Area Deming Users Group's newsletter, contact:
Dan Robertson          -or-       Marcia Daszko
1141 Bruckner Circle              2752 Glorietta Circle
Mountain View, CA   94040         Santa Clara, CA  95051
650-964-9186                      408-247-7757
DanRobrtsn@AOL.com                MDaszko@AOL.com
                                  www.mdaszko.com
                                  www.itslonelyatthetop.com

Please supply us with a US Mail address, a fax number or 
an Internet ID.  We encourage electronic distribution if 
at all possible, but please select the transmission medium
that best fills your needs. US Mail distribution will be 
provided for 12 months from your communication with us.

** Directions to BADUG meetings **
Venue: The Acuson Corporation Education Center, Building I,
at 1393 Shorebird Way in Mountain View.  Contact Dan 
Robertson if you have questions.

1/ From freeway 101 take Shoreline Boulevard, "Amphitheatre"
   direction (toward the bay).
2/ Turn right, off Shoreline, onto Shorebird Way (Shorebird
   is the next street after Spacepark).
3/ Building I is the first building on the right. "BADUG" 
   signs will direct you to the meeting room.


The next BADUG meeting is Monday, 5 November 2001.