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Steve Hoffman
is happy but not that happy.
Meaning, he
seems to walk a nice balance between being able to praise employees, enjoy his
own life but at the same time keep striving for unreachable goals. He is the
epitome of an American entrepreneur. He is restless and always in motion.
Steve is in
motion to achieve continuous improvement, the concept that has been
institutionalize due to the success of W. Edwards Deming. An American
statistician who went to Japan right after World War II to help the Japanese
set up a census, Deming "fell into" teaching Japanese engineers about
statistical process control. You might want to read his writings if you want to
truly understand what we see Steve doing. I was not surprised that Steve owns
Deming's book but never managed to read it.
This proves a
point we have often made here and that is most entrepreneurs who grow companies
intuit the 14 rules Deming lists in his 1982 book titled, Out of the Crises.
Deming's rules are: Create constancy of purpose towards improvement
- Adopt the
new philosophy.
- Cease
dependence on inspection.
- Move
towards a single supplier for any one item.
- Improve
constantly and forever. Institute training on the job.
- Institute
leadership.
- Drive out
fear.
- Break down
barriers between departments.
- Eliminate
slogans.
- Eliminate
management by objectives.
- Remove
barriers to pride of workmanship.
- Institute
education and self-improvement.
- Transformation is everyone's job.
Steve
achieved a digital workflow as early as 1995. This was before most people had
email. This was at the front of the dot com boom. Steve was already doing what
so many from Silicon Valley were promising.
Topic for
discussion: What does this really mean and can any business do this?
Answer: A
digital workflow means all information is inside a computer in some format
somewhere. And, all of the computer talk to each other in some way. There is no
paper needed to take an order, make and ship the order or collect for the
order. Any business can do this but each of us has to weigh the cost/benefit
and we have to understand where our customers are in their efforts to go
digital.
Many small
businesses are not digital because their customers aren't yet and the wise
position is to be only slightly ahead of customers.
Topic for
discussion: How did Steve know he would be able to cash in on his
investment to create a digital workflow?
Answer: He
didn't. Like we all must do, he took a calculated risk. His personal passion is
improvement and he could see that computers, for example, could more accurately
tell a press how much ink to apply than could the most highly skilled pressman.
Steve learned to write computer programs and the systems used today throughout
Modern Postcard are all based upon his own code.
You think
about it: What would it take for you to go digital? Who in your
organization would be the best person to be in charge of the effort? How will
you discover how digital your customers are or want to be? Which of Deming's
rules do you most need to embrace to see more improvement in your organization?
Can you re-write each of these points in your own words so that you can fully
own the ideas?
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