Posts filed under “Corporate Management”
“Long-term commitment to new learning and new philosophy is required of any management that seeks transformation. The timid and the fainthearted, and the people that expect quick results, are doomed to disappointment.” -W. Edwards Deming
Dr. Deming’s Ideas Dr. Deming’s famous 14 Points, originally presented in Out of the Crisis, serve as management guidelines. The points cultivate a fertile soil in which a more efficient workplace, higher profits, and increased productivity may grow.
Create and communicate to all employees a statement of the aims and purposes of the company.
Adapt to the new philosophy of the day; industries and economics are always changing.
Build quality into a product throughout production.
End the practice of awarding business on the basis of price tag alone; instead, try a long-term relationship based on established loyalty and trust.
Work to constantly improve quality and productivity.
Institute on-the-job training.
Teach and institute leadership to improve all job functions.
Drive out fear; create trust.
Strive to reduce intradepartmental conflicts.
Eliminate exhortations for the work force; instead, focus on the system and morale.
(a) Eliminate work standard quotas for production. Substitute leadership methods for improvement.
(b) Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them.
Remove barriers that rob people of pride of workmanship
Educate with self-improvement programs.
Include everyone in the company to accomplish the transformation.
Time to update the tally: Each year, JPM has profits of about $25 billion dollars on revenues well over $100 billion dollars. Part of the cost of generating that revenue in a variety of dubious and even extra-legal ways are fines. Since 2011, JPM has been fined $8B: $56 million (April 2011) $153.6 million (June…Read More
Short list: 1. At the Ira Sohn Investment Research Conference in May 2008, hedge fund manager David Einhorn explained why he believed Lehman Brothers was insolvent. At the time, Lehman was already significantly off its highs but still trading above $40. 2. Lehman’s accounting was especially opaque, even relative to other investment banks (and that’s…Read More
My Sunday Washington Post Business Section column is out. This morning, we look at how Microsoft’s slow decline in What’s behind Microsoft’s fall from dominance?. The short version is this: Once Gates & Co lost its Monopoly, they were unable to generate much in the way of successful new businesses line. Their decline was inevitable…Read More
This morning, the NY Times had an article titled: JPMorgan Reveals It Faces Criminal and Civil Inquiries. The timing was funny, because we had been discussing this up in Maine over the weekend. The dollar figures for the fines just since 2011 are pretty astounding: $56 million (April 2011) $153.6 million (June 2011) $229 Million…Read More