Most Americans believe the management world is flat. Do you?

Imagine you lived at a time in history when it was an accepted belief that the earth was flat. Now imagine you started hearing the claims that the earth was round – that new continents were discovered. Would you have cared, or would you have wanted to learn more?”

“Men occasionally stumble over the truth but most of them pick themselves up and hurry off as if nothing happened.”—Winston Churchill

In 1924, Dr. Walther Shewart discovered a new paradigm for managing variation. Variation is a law of nature that states that no two things or people will ever be ever exactly alike – everything varies.

W. Edwards Deming was a student and colleague of Dr. Shewhart.  Deming’s contributions in developing the paradigm were recognized by U.S. News and World Report as one of the nine turning points in world history and by Fortune Magazine as among the greatest contributions to business history.

Deming concluded that failure to understand the variation paradigm resulted in a situation where ninety-five percent of changes made by management today result in no improvement. We are all managers in one role or another.

Deming further concluded that prevailing style of management resulted in devasting consequences on our economy and ability in working together in pursuit of a more perfect union.

What is the world’s most underdeveloped nation?With the storehouse of skills and knowledge contained in its millions of unemployed, and with the even more appalling underuse, misuse, and abuse of skills and knowledge in the army of employed people in all ranks in all industries, the United States may be today the most underdeveloped nation in the world.”   W. Edwards Deming

Assess your knowledge of  the variation paradigm

A way ahead?  To develop your knowledge of the variation, start with a developing and interpreting a trend chart.

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Corruption: Description and Context

I generally associated the term corruption with illegality.  The Pope identifies a broader definition and context.

Pope Francis: ‘I Am Not Afraid of Sin, I Am Afraid of Corruption’,  by Thomas D. Williams  PH.D.  23 Jan 2018, Breitbart.com

“Corruption – when a person’s conscience no longer registers right and wrong.”

“There is a big difference between corruption and sin, Pope Francis contends, because the sinner can always convert but the corrupt person sees no need for conversion.”

“The corrupt person goes through life taking the shortcuts of opportunism,” said the Pope, “with an air of innocence, wearing the mask of an honest person, which he begins to believe.”

“The corrupt person cannot accept criticism, discredits anyone who criticizes him, tries to belittle any moral authority who would question him, does not value others and insults anyone who thinks differently. If the balance of power permits, he persecutes anyone who contradicts him.”

“Unfortunately, Francis said, the problem is widespread.”

Indiana High School Graduation Rates

QUESTION: Since 2010-11, have any of the increases and decreases in the graduation rate been significant or do they indicate that the system is producing results within a normal range?

Pre-Test: Assess your knowledge of variability

Indiana’s high school graduation rate slipped last year, Indianapolis Star, USA TODAY NETWORK, Jan 12, 2018

Indiana’s high school graduation rate slipped in 2017, falling nearly two points from the previous year and dropping to its lowest point in the past six years.

The decline was the largest single-year drop in the past 11 years, the time span in which state data was immediately available.

Trend Chart

Data:

  • 2010-11: 87.1
  • 2011-12: 88.7
  • 2012-13: 88.6
  • 2013-14: : 89.8
  • 2014-15: 88.9
  • 2015-16: 89.1
  • 2016-17: 87.2

Reference: (Source of Data:   School and Corporation Data Reports

More Information: Institute for Healthcare Improvement:

Not so fake news

Two recent articles on Linkedin reinforce the need for a “better system” for a national discussion on various issues.

  • Why Facts Don’t Change Our Minds. New discoveries about the human mind show the limitations of reason. New Yorker magazine, By 

Future of Brown County IN – Part 1

The following post was published in a Guest Column in the Brown County Democrat on Dec 27, 2017 titled:  The role of process in the future of Brown County

The Maple Leaf Music Venue and Performing Arts Center (MLPAC) project and the process used to fast-track approval may represent a turning point for the future of the county. This article is a first in a series that will provide a perspective on our current reality and offer additional options that may contribute to Brown County remaining a desirable place, to live, work, play and visit.

  • To summarize, key points and issues associated with MLPAC include the following:
  • In the April 2017, owners of hotels and inns, who are also appointed to the Convention and Visitors Commission (CVC) and Convention and Visitors Bureau (CVB) decide to use the revenue collected from the innkeeper’s tax to invest in an asset that will promote tourism. The Innkeeper’s Tax is a pass-through tax paid by the party renting the overnight accommodations.
  • CVC members are appointed by the county commissioners and council. The CVB is a non-profit organization established to manage tourism related promotion on behalf of the CVC.
  • CVC/CVB members decided on a performing arts center and also determined the size, location, scope, cost (12.5 million), and overall governance plan for the facility. Given that this investment is expected to result in overnight stays, their businesses will directly benefit from the investment, and the asset values of their establishments will likely increase.
  • Initially, county citizens were told that revenue from the innkeepers tax would be used to pay the principal and interest on the mortgage for the venue. Any profits were to be used for community and county infrastructure priorities.  The final terms of the deal are that profits would be used to make the mortgage payment and the revenue from the innkeeper’s tax would only be used if profits were not sufficient to make the payment.  This arrangement provides more revenue to fund the expansion of tourism.
  • A common perception in the county that was reinforced by the president of the county council, may be that the revenue from the innkeeper’s tax is “their (CVC) money.” This inaccurate perception may have contributed to a lack of transparency over the years regarding the management and expenditure of these funds.  This revenue, per statute, is a county asset. Commissioners and Council (elected by citizens) appoint CVC members who are subordinate to the citizens and their elected officials.
  • The approval of a 12.5 million dollar loan using the revenue from the innkeeper’s tax as collateral was approved by the commissioners on Nov 15 and the county council on Nov 20. The commissioners approved another resolution approving the project on Dec 20. In case of default, the venue would become the property of the bank, and per the county council president and the county financial consultant, county taxpayers would not be obligated to assume the liability.
  • No public meetings expressly focused on this important project were scheduled by the commissioners or council before their meetings to approve the project. The League of Women Voters of Brown County offered to facilitate a public meeting to address citizen questions, concerns, and issues regarding the project. Members of the CVC, the CVB and the informal team working on the Maple Leaf project declined to participate, as did several key elected officials.
  • The editor of the only newspaper in the county – The Brown County Democrat, did recuse herself from being the primary reporter because of a conflict of interest — her husband serves on the CVC. The Democrat welcomed opposing opinions in Guest Columns and Letters to the Editor.

A government best practice for determining the optimum investment options for revenue from the innkeeper’s tax would be identified in a Comprehensive Plan or an annex to the plan that includes a strategy for tourism.  Such a plan has yet to be developed. A good “plan” includes expected outcomes, actions and milestones, and required resources.

To provide the needed objectivity regarding the feasibility of this project, it was initially suggested by the county attorneys that the County Redevelopment Commission (RDC) become involved which would have helped ensure a thorough review on the feasibility of the project.

The plan by the RDC was to involve all affected government offices to include holding several public meetings to solicit input and feedback from the citizenry.  The process would have included identifying, quantifying and acknowledging opportunity costs and the risks associated with the project  The outcome may have been the same but the public may have had more assurance that the government performed their due diligence.

Before the RDC could hold their first public meeting to discuss their plan, they were told by two of the three commissioners at their July meeting, that their involvement would no longer be needed.  Before the county council approved the project on Nov 20, a member of the council confirmed that they did not commit funding for an independent feasibility study of MLPAC.

Renowned inventor and visionary Buckminster Fuller remarked that “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” 

My next article in this series will include two objectives:  Identify likely effects of MLPAC and identify “a new model” of citizen engagement that can result in outcomes where everyone can benefit, or at least, will not be any worse off in the long term.

More Info:  Maple Leaf Project – For the Record

Planning for project success is a choice

The following is a copy of a Guest Column that was expected to be published Nov 15, 2017, in the Brown County Democrat prior to any vote by the Commissioners (Nov 15) and Council Meeting (Nov 20) approving the Maple Leaf Music Venue project. Due to space constraints, the article was published in the Nov 23, 2017, edition which may have been better timing.
The purpose of the column was to reinforce the need for a collaborative approach when considering development projects that can have long-term impacts on the community.

The recent community conversation on the status of the Salt Creek Trail reinforces that using ad-hoc teams to identify and manage projects independent of a county strategy and comprehensive planning can be problematic.

Salt Creek Trail has not been the only County project that has risks that can be eliminated or mitigated through improvements in the planning process.  Without better planning, we will continue to take a reactive “whack a mole” approach as issues bubble to the surface. Current projects include the following:

  • Salt Creek Trail Project, now 15 years in duration, has been delayed due to objections from affected property owners and elected officials opposed to the use of eminent domain by the State of Indiana.
  • Proposed Maple Leaf Music Venue.  This project is expected to be approved by the end of November. The following entities have accepted responsibility and accountability for all project results:  Council, Commissioners, Convention Visitors Commission.  Commissioners accepted the League of Women Voters request to hold a public meeting to address any questions or concerns that citizens may have with the project.
  • County Courthouse Compliance with the Americans with Disabilities Act (ADA).  This is a critical project to accommodate citizens with challenges, but approved and funded solutions have yet to be identified. Improving security is another important requirement.

Project results – be they good or bad, are determined by processes (habits, approaches) that are used in leading and managing the respective project. An improved process for identifying and managing projects can prevent problems and provide project leaders with the needed support from the community.  Successful projects that meet the expectations of the citizens make a positive contribution to our culture and quality of life.

As a certified quality auditor – now semi-retired, I have conducted and supported performance and process reviews in a wide variety of areas and industries. The scope of projects ranged from improving math skills and management issues in elementary and high schools to assessing compliance of government agencies with financial management controls required by federal and state statutes to improving national defense-related strategies.

Process reviews consist of assessing an organization’s processes (habits, approaches) and their respective capabilities in meeting the needs and expectations of the customer and other stakeholders.  Findings often supported the adage that “If you always do what you always did, on average, you will usually get what you always got” — 99.73% of the time.

In considering needed changes, the overwhelming preference – despite the risks and quality of the outcome, is often to maintain the status quo.  To break the gravitational pull of the old habits, there must be a sense of urgency that change is required to produce the desired result.

Regarding urgency, many rural counties throughout the country including Brown County, face projected declines in the population that contribute to a declining tax base. This decline may require frequent and recurring tax increases and cuts in services unless the situation can be improved.  Indiana counties are funded primarily by property and income tax. New residential and business developments that are supported by the citizenry and will result in increases in the tax base can help mitigate the projected economic decline.

Attracting investors for residential and business developments requires the formulation and updating of a comprehensive (master) plan that reinforces the community vision and values, and includes the immediate and long-range reports and plans necessary to implement the desires of the community. Elements of master planning could include strategies and plans in the following areas:  Broadband (Internet), Trail Systems, Wastewater Treatment, Residential Housing, Land Use, Thoroughfares, Tourism, and Capital Improvements.

With a master plan, community leaders can market the plan to private investors and companies can then use the plan to assess their risks and return on investment to seriously evaluate expansion and growth in Brown County.

To help develop support for the right projects, developments requiring taxpayer funding or other support must be guided by the policies and goals specified in the county comprehensive plan. The current 14-page comprehensive plan was approved in 2012 and provides general guidance concerning the future of Brown County.  Larger counties in Indiana can have more detailed plans that exceed 200 pages. Additional information on this approach is provided by The Indiana Citizens Planners Guide.  Another useful guide for developing effective project management plans and schedules is available from the Project Management Institute.

An immediate and incremental change to supplement the county comprehensive plan with the plans from current projects represents a proven strategy. This change to the status quo will help support elected leaders to maintain required project oversight, engages the citizenry, and ensures the community that actions align with the vision for the county. This change can take us a step forward in building a master plan that will convince potential new residents and investors that Brown County remains a desirable place to live, work, play and invest!

Tim Clark
Brown County