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NO NATURAL BORN LEADERS
A Study in the Art of Leadership
By BOB DANMYER
AuthorHouse
Copyright © 2012 BOB DANMYER
All right reserved.
ISBN: 978-1-4685-4608-8
Chapter One
What Happened To America?
Many people look around the Untied States today and ask, "What Happened to America?" are we losing our greatness? How did we arrive at our current state? Why does it cost so much to live in this great nation? Where are all the jobs? I hear people say, "I don't understand how this all happened". Why is it that the Japanese and Chinese have out-paced us in the world market place? It should be so apparent, but our nations leaders have just recently found the vision to accurately define the cause of these problems. Maybe I can shed some light on what is at the core of our current dilemma. We live in a modern, mobile society, with a thirst for fuel like no other nation on earth. We like to be warm in the winter and cool in the summer. We are spoiled. But, the cost of energy is ten times higher today then it was fifty years ago and every adult American owns one or two cars, and I am not talking only about the wealthy. We have to live in a house with four bedrooms and it must be at least three thousand square feet in size. Because of these two key points, this nation uses 25% of the world's crude oil! Because Americans are large people we love large cars, but now we call them SUV's (Sport Utility Vehicles). Most Americans are just physically too big for small cars; therefore we are slow to be drawn to them. Greed has caused American businesses to spend the last thirty years sending all of our manufacturing jobs overseas. You cannot pick up a piece of clothing today that is made in America. Also, American employers have forgotten how to treat their most valuable resource, their employees. What has happened to the signs that used to hang over the factory gates that said, "Through these gates walk the finest people in the world our employees"? To Big Business I would ask, do you think that if American jobs go overseas because of cheap labor, Americans will have money to buy your products?
The sad part of all this is that after World War II America owned the World market place! We basically bombed all of our competitors out of business during the big war. American factories that made the tools of war quickly converted to the production of airliners, modern electronic products for the home, automobiles and numerous other items to create a comfortable life for all that had survived the horror of war. As fast as America produced the World was waiting to buy. We could not make our products fast enough! We told workers that the more they produced, the more money they would be paid, and it was called piecework. Quality was secondary to quantity! I can remember when a car was only built to last three years. Tires were only good for fifteen to twenty thousand miles. The Japanese made us pay dearly for this mistake! Remember when everything made in Japan was referred to as Jap Crap. When the words, Made in the USA meant quality! For a variety of reasons those words are starting to mean that again. One of the reasons for this change is that most products made today in foreign countries break shortly after they are purchased. Cheap does not mean better, you get what you pay for. Many people believe that some foreign manufacturers built planned failure into all of their products, which creates a continuing need for replacement. I own an old clothes iron that was made in America, maybe thirty years ago. I bought it to wax my snow skies, and it has been used a great deal in the last twenty-five years, and it still works. In the same time period, I have replaced a total of nine clothes irons that were made in the Far East. In all of the replacement situations it would have costs more to get the broken one fixed then the product was worth, so I just went out and brought a new iron. While I was buying all of these irons made mostly in China, I drove their economy uphill while ours was going down. You may think this is fabricated, but as I am writing this chapter the remote mouse that I bought last year for my computer keeps falling apart. Guess where it was made? China. However, our elected leaders just don't get it and we continue to trade with the Chinese instead of making it better in America.
In the sixties and seventies America lost their dominance in the world markets because we read markets wrong and many of our products were not high quality. Fortunately, that did change and today America has its' quality act together, but at what cost? I predict that the Chinese will lose their markets for the same reasons we did in the past, poor quality. Unfortunately, today when you go to the store to buy something, say an electrical component, everything in the store is made in China, and there are no buying options.
The Chinese make cars, but the quality is too poor to sell them in this country; I am sure that will change. In China one of the best selling cars is General Motors Buick and it is because the Chinese believe it is a quality product. We could sell more if China would let us bring more into the country. What happened to fair trade? All of these things have happened because of bad leadership, bad leadership decisions, and a complete lack of long-range vision and, yes, a little greed.
In this book I will go back to basics, and discuss things that are just not taught in MBA (Masters in Business Administration) courses. We must start out by understanding the defined difference in a manager and a leader. Managers manage resources, leaders lead people. A manager controls and directs, a leader shows the way for people to follow. A leader unlocks the power of collective thinking by using the brainpower of everyone that works for him or her, down to the lowest levels. A manager makes all the decisions in order to control and because they trust no one, they are glaring examples of the "One Smart Person" management methodology. By the way, most people who work for such an individual are miserable, because they have no input into the process! Guess those managers were never taught what my grandmother used to say; "Three heads are better then one". Remember today a good CEO (Chief Executive Officer) or supervisor must be more than just a manager; they must also be a good leader.
In the following chapters, I will proceed to discuss what it takes to be a good leader. Together, we will look at the tools that will allow you to develop and improve your leadership skills. Read and learn how to be a born leader!
Chapter Two
The Great one
The gentleman I am going to tell you about and his management philosophy has filled books, not just a short chapter. Today in America if you would ask most people in business if they know the name, W. Edwards Deming they might just look at you with a puzzled stare. Ask that same question in Japan and you might get a detailed explanation lasting several minutes. The really sad part of Doctor Deming's life is that just when his management methodology was starting to take hold in America he passed away at the age of ninety-three. It is funny, that after years of studying and teaching Deming, I can tell you that I remember exactly were I was when he died on December 20, 1993. I was eating dinner in a small restaurant off the town square in Santa Fe, New Mexico. I can testify, as the Star War fans say, I felt a change in the Force.
W. Edwards Deming was born in 1900, in Sioux City, Iowa and raised in Polk, Iowa. The son of well-educated parents, his father had studied mathematics and law, his mother music in San Francisco. Deming was married twice surviving both of his wives. He obtained degrees in electrical engineering from the University of Wyoming, a Masters from the University of Colorado, and in 1928 a PHD from Yale. Both of the upper level degrees were in the discipline that he loved most, mathematics. Doctor Deming also studied at the University College in London, England in 1936.
In the late twenties Doctor Deming was introduced to Walter A. Shewhart who worked for Bell Laboratories. Inspired by Shewhart's work in statistical process control he wrote and had a book published in 1939, called Statistical Methods from the Viewpoint of Quality Control. In fact Deming copied many of Shewhart's techniques and methods of statistical process control.
During World War II, Doctor Deming's quality control methods were incorporated into the production of material being produced for the war effort. Deming also taught statistical process control methods to the workers of the Arsenal of Democracy. When the war was over, because of the demand for American products overseas, as discussed in chapter one, his quality control methods stopped being used. The emphasis came off quality and on quantity. Remember, we dominated the world market place and we could afford to shift to this mindset. In the mid-forties Deming continued trying to educate American manufacturing on the benefits of his methodology but with no success.
Because of work he had done for the United States Census Bureau in the early forties, Doctor Deming was asked by the America Army of Occupation in 1947 to come to Japan and help with the census. At the time Japanese industry was a disaster! Also, before World War II the Japanese were not known for making quality products. With most of their factories covered in rubble the Japanese started to rebuild their manufacturing processes in a unique and innovative way. They would install a large drive motor at the end of a city block. It was in turn connected to a long drive shaft that ran the entire length of that block. The individual businesses in the area would hook up to the shaft through drive belts. The drive motor would then start-up and stop at scheduled times everyday, usually at the beginning and end of the workday. Each business on the block used the power from the shaft to drive the machinery that manufactured their specific products. In 1996 I spent some time in Japan, and I can tell you that this is a far cry from the way Japanese industry works today. As a child in the later forties and early fifties my parents gave me toys, made in Japan, that if you took them apart they were made out of Budweiser beer cans. The words Made in Japan meant very low quality!
While in Japan Deming became involved with Japanese society and this eventually lead to his association with the Japanese Union of Scientist and Engineers (JUSE). Members of JUSE had in the past studied She whart's methods of statistical process control. In Japan there is a saying, "That when the student is ready the teacher will come". With the coming of Deming, and the condition of Japan's industry, never was this statement more accurate. JUSE enlisted Deming to teach his methods to key leaders of Japanese industry. The primary message and theme of Deming's training was, improved quality reduces expense while increasing productivity and market share. In other words, quality products will eventually capture their markets. One only has to look at the Japanese auto industry as a glaring example of the success of this philosophy. In 1950 JUSE, as a way of honoring Deming for all of his work, established and awarded for the first time the Deming Prize. The award is still presented in Japan to companies that have excelled in the pursuit of quality. Japan in 1960 bestowed one of the highest honors the country has on Deming, the Order of Sacred Treasures, Second Class, for breathing life back into the nations industry.
Upon returning to the United States Deming began his own consulting business. He was featured in a National Broadcasting documentary in 1980 called "If Japan can, why can't we?" This national exposure greatly increased the demand for his services. A Ford executive that had seen the National Broadcasting documentary on Deming brought him to the attention of the company's management team. In 1981 Ford's share of the automotive market place was dropping. The company was in grave danger of going out of business. As a result, Doctor Deming was recruited by the newly appointed Division Quality Manager, John A. Manoogian, to start a quality movement at Ford. Deming immediately determined that the culture at Ford was not on track and that upper management was creating the majority of the problems. With Demings help Ford changed the direction of the company away from low quality, fuel guzzling large cars to smaller high quality, fuel-efficient vehicles. By 1986 Ford's profits started soaring, and for the first time since the 1920's exceeded the profits of their American competitors, General Motors and Chrysler. From this point on the demand for Deming services also soared with dozens of American companies seeking his services. This was the beginning of the Quality Revolution in America.
When you look at the Deming philosophy, you see that it is designed around fourteen key management points. Deming believed that management, not unions or employees create the culture of a business. If you are going to change a work culture you must start at the top. There is a story that Deming, who was known for his direct approach to issues, had been hired to train a group of key corporate executives. The Chief Executive Officer (CEO) introduced Deming and then proceeded to leave. As he turned around he saw that Deming was walking out with him. The story goes that he stopped and said to Deming, "Why are you leaving?" we hired you to speak and teach at this gathering. Deming replied that if the CEO was leaving so was he! That without the CEO present showing his commitment to the process of change, anything that Deming did or said would be a waste of time; the CEO stayed for the entire session. Deming taught that change and commitment to a process must always start at the top.
Once again remember at the center of the Deming philosophy are fourteen points of light. Let us take a brief look at all fourteen:
1. Constancy of Purpose
• Continuously improve to be competitive, and stay in business and provide jobs. Everyday think of ways to make products and processes better.
• Plan for tomorrow; don't just focus on today's problems. Senior leaders should at a minimum have a five-year plan. When employee's work for an organization invested in the future, they feel secure.
2. Adopt the New "Deming" Philosophy
• Awaken to the challenge, management must learn their responsibilities and take on leadership for a change. Note: Remember management owns the system, not the workers!
• Develop a new religion that will not accept poor quality services and products.
• Higher quality cost less, not more!
• Productivity increases as quality improves—why? Less rework!
• Focus on the process rather than profit, on the team rather than the individual, on the customer rather than the stockholder.
3. Cease Dependency on Inspections
• Build quality into the product from the beginning.
• Prevent the occurrence of defects by improving the process and listening to customers before producing the product.
• Companies typically pay workers to make defects then correct them. This is very costly!
4. Require Suppliers to Provide Statistical Evidence of Quality.
• Reduce that number of suppliers for the same item by eliminating those not having statistical evidence of quality.
• End the practice of awarding business solely on the basis of price. Note: Remember you generally get what you pay for! Giving contracts to the lowest bidder often leads to low quality parts and supplies. Dr. Deming stated: "Price has no meaning without the measure of the quality being purchased."
5. Improve Constantly and Forever
• When you constantly improve quality and productivity, you constantly cut cost.
Note: The old theory that states, "If it is not broken don't mess with it", does not work. Always improve the product or process!
6. Train All Employees
• Companies should institute on the job training at all levels, top to bottom. Training is a major investment in your employees and the future of the business. However, when budgets get cut training is usually the first thing to be reduced or eliminated.
7. Institute Modern Methods of Supervision
• A supervisor today must be more than a judge or an overseer; they must be a manager, leader, coach and teacher.
• The primary job of the supervisor must be to develop their people so they can continually improve and do a better job.
(Continues...)
Excerpted from NO NATURAL BORN LEADERS by BOB DANMYER Copyright © 2012 by BOB DANMYER. Excerpted by permission of AuthorHouse. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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