Ackoff on SAS

[Stein <stein.smaaland@sys.no>]

DEN'izens!                                       Oslo, September 6th, 2003

When enjoying the Ackoff interview distributed by Jim August
24th, I luckily got the opportunity to again show my flag.

My starting point is Ackoff mentioning of SAS (which I assume
is Scandinavian Airlines System) as an example of a company that
manage systemically.

S A S
In our Deming Scandinavia network we have some people who
has been employed with SAS (in the years in question), and
some who has been consulting (including me).

My conclusion is that Ackoff is talking about SAS under Jan
Carlzon in the 1980s, when Tomas Lagerström and he also
wrote the book "Riv pyramiderne!" ("Tear down the pyramids",
or whatever in American/English).

[Moderator's Note:  Jan Carlzon's book was titled "Moments of Truth" in the US ]


In this book they focuse on;
1) less friction (fewer toothed wheels between the job and
the results)(no unnecessary bureaucracy, no effeciency-
failures, no jog-trot etc.)
2) customer on the top in stead of admin.
3) fewer levels in the organization ("from five down to three")

Our own experiences is/are that Jan Carlzon was humanoriented
(by the way; now he's in finance). There was also much internal
marketing, and much external marketing, and many slogans. Many
slogans.

Let my comment on what has happened (refering to the
presidents);
President, nationality (years): focus
* Carl Olof Munkberg, Sweden (-1980): profit, preparation
for change, but nobody saw the need
* Jan Carlzon, Sweden (1980-1993): loss, change needed
* Jan Reinås, Norway (1993-94): interim
* Jan Stenberg, Sweden (1994-2001): cost reductions, low
quality understanding (sorry, Stenberg, I am mostly refering
to the times we have met in the leaders forum of the European
Foundation for Quality Management)
* Jørgen Lundegaards, Danmark (2001-): x-sales, downsizing

CONCLUSION
It seems as if SAS in the last years with Carlzon experienced
sustainability problems. Surely with a source in the market
changes. Including competition structures and technology.

So SAS moved late in the 1980s into costreductions. SAS has
never recovered. (Note this on my account).

WHAT CAN BE LEARNED?
It seems to me that all markets, all businesses, "all" continents
experience sustainability problems, no matter what management
philosophy is being stressed. Humbly, I think I also remember
some US "Deming-companies" with varied "success".

So, again;
HOW should we ensure a continuously increasing
understanding for the lasting opportunities that Deming's
philosophy offers?

HOW could we assist in the further development of
Deming's conclusions and suggestions?

Of course, I do have, some ideas. I.e. have we -  I mean,
the Deming community - performed a traditional, i.e.
systematical, SWOT analysis?

If we have, what did *WE* learn? And: Are the analysis
maintained?

PS to any newcomers who read this far; Don't let me
scare you off. I believe that simple, critical questions
seldom are superfluous.

Still learning
Deming Scandinavia
Stein (Smaaland)
(stein.smaaland@deming.no)
(stein.smaaland@sys.no)
(www.deming.no)
** The Quality of a SYStem ****