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Insightful Quality: Beyond
Continuous Incremental
Improvement
Agenda (AKA Takeaways)
What is insight? (and why should I care?)
How do I becoming an insightful individual?
What are characteristics of an insightful organization?
What do you mean by insightful use of existing quality tools?
Questions and answers.
Why is continuous incremental improvement not enough?
Quality Should Not Be a Silo
Quality Strategic
Planning
Marketing
Operations
R & D
Engineering
Quality Should Not Be a Silo
Quality Strategic
Planning
Marketing Operations
R & D
Engineering
Kari Tuominen’s Cut on We Are a System
Strategic Management
Product Management Process Management
Development Management
Source: Tuominen (2000)
Innovation: The Lifeblood of an Organization
• IBM Survey “74% of respondents say innovation is more important
than reducing costs.”
• American Society for Quality “Innovation is increasingly the lifeblood of an
organization.”
Thomas Friedman in 2011:
In 2004:
Twitter was a sound.
The cloud was in the sky.
4G was a parking place.
LinkedIn was a prison.
Applications were what you sent to college.
Skype was a typo.
Four years later (2015) we might add:
In 2011:
BuzzFeed was a beekeeper’s supply.
Sling TV was a novel way to wall-mount a flat
screen.
Vox was part of a Latin phrase.
MU-MIMO could be a new Pokeman
Why Is Continuous Incremental
Improvement Not Sufficient?
Joel Barker’s question:
What is it that is impossible to do today, that if it
were possible, would fundamentally change the
way we do business?
Source: Barker (1990)
Garvin’s 5 Approaches to Defining Quality
• Transcendent
• Product-based
• User-based
• Manufacturing-based
• Value-based
Which is the approach that ultimately
matters the most?
Plato on Insight
Objects of Awareness Forms of Awareness
Insight
Understanding
Perceptual Belief
Imaging Images
Concrete Things
Patterns of Operation
The Good Itself
What is Insight?
We define insight as the ability to see reality
clearly enough to come up with new ideas
that are worth testing.
Examples of Insightful Individuals?
Plato
Walter Shewhart
W. Edwards Deming
Genichi Taguchi
Six Activities that Develop Insightful
Individuals
• Associating with leaders in the field of interest
• Acquiring the necessary expertise
• Having a passionate motivation to “see deeply”
into a subject
• Seeking out diverse experiences—including
those seemingly unrelated to anything you are
currently doing
• Being willing to test your ideas (and let them fail)
• Letting information linger in memory, in your
conscious and sub-conscious mind so that new,
fruitful, unexpected connections can be made.
Examples of Insightful Organizations?
Characteristics of Insightful Organizations
• Insightful leadership
• Courageous leadership
• Shared vision
• Tolerance for risk
• Trust
• Encourages personal developmental
activities
• Encourages & provides opportunities for
diverse interactions
Characteristics of Insightful Organizations
• Sees failure as opportunity to learn
• Excellent intra-organizational
communication
• Open to ideas from all sources – no “not
invented here” syndrome
• Systems thinking
• Agile
• Does not judge ideas too quickly
• Strong customer orientation &
understanding of customer needs
Characteristics of Insightful Organizations
Simple Assessment Checklist
Examples of Once-Insightful Organizations
Insightful Use of Existing Quality Tools:
Some Examples
• Voice of the Customer
• Design of Experiments
• Benchmarking
Insightful Use of Voice of the Customer
Cu
sto
mer
R
equ
irem
ents
Design Requirements
Target Values
Insightful Use of Voice of the Customer
“If we were to go back in time (120) years
and ask a farmer what he’d like if he could
have anything, he’d probably tell us he
wanted a horse that was twice as strong and
ate half as many oats. He would not tell us
he wanted a tractor. Technology changes
things so fast that many people aren’t sure
what the best solutions to their problems
might be.”
Source: Quigley (2000)
Insightful Use of Voice of the Customer
“If innovation means the ability of a company
to anticipate consumer needs—expressed or
unexpressed, known or unknown—and bring
products and services to the marketplace that
excite customers, then clearly innovation is
the fuel of growth in today’s changing world
and more so tomorrow.”
Source: Krzykowski (2011)
Insightful Use of Design of Experiments
A
B
C
Run A B C
1 -1 -1 -1
2 +1 -1 -1
Insightful Use of Design of Experiments
• Incorporating creativity in (DOE) testing better
defines problems by creating complete lists of
variables.
• A culture that’s open to new ideas and that allows
time for teams to brainstorm leads to unique and
useful test observations resulting in motivated
employees and faster project completion and
product development.
• DOE can be a structured approach to creativity
where failure can be viewed as a success.
Unique ideas and large-step improvements have
happened through the use of DOE.
Source: Parendo (2015)
Insightful Use of Benchmarking
Who do you look up to?
Insightful Use of Benchmarking
Benchmarking is more than a scorecard.
Comparing an outcome measure to some
industry or national average is unlikely to
lead to insightful innovations.
Insightful Use of Benchmarking
Benchmarking is an improvement process in
which an organization measures its
strategies, operations, or internal process
performance against that of best-in-class
organizations within or outside its industry,
determines how those organizations achieve
their performance levels, and uses that
information to improve its own performance
Source: Sower, Duffy, & Kohers (2008)
Insightful Use of Benchmarking
“Not invented here” is a seriously flawed
attitude.
The successful learn from others
The mediocre learn from their own experiences
Failures learn from no one*
*Source: Tuominen (2000)
Insightful Use of Benchmarking
Examples of Insightful Use of Benchmarking:
• Nationwide Children’s Hospital
Commercial aviation industry
• Great Ormond Street Hospital
Ferrari Formula 1 Racing Team
Sower, 2007; Sower, Duffy, & Kohers 2008
Conclusion
• Employ an insightful approach to quality.
• Insightful organization
• Insightful individuals
• Do a great job of continuous incremental
improvement.
• Achieve long-term success!
Conclusion
Us
Best in Class
Everybody Else
Sources – Readable Version in Handouts
• Barker, J. (1990). The Business of Paradigms. Burnsville, MN: Charthouse International Learning Corp.
• Crandall, R. (2015). “A Welcome Interruption? Big Companies Still Testing the Waters of Disruptive Innovation.”
APICS Magazine 25(5), 34-37.
• Friedman, T. (2011). MiscDigest. Reader’s Digest, 80.
• Garvin, D. (1984). “What Does Product Quality Really Mean?” Sloan Management Review 26(1), 25-43.
• Krzykowski, B. (2011). “Around the Bend.” Quality Progress 44(10), 18-21.
• Merrill, P. (2015). “Under Construction: Rethink Your Organization’s Structure and Strategy to Boost Creativity.”
Quality Progress 48(8), 14-19.
• Parendo, P. (2015). “Creative by Design.” Quality Progress 48(8), 20-24.
• Plato (1992) (original circa 390 BC). Republic.
• Quigley, P. (2000). Reader’s Digest.
• Sower, V. (2014). Statistical Process Control for Managers. New York, NY: Business Expert Press.
• Sower, V., and F. Fair. (2012). Insightful Quality: Beyond Continuous Improvement. New York, NY: Business
Expert Press.
• Sower, V. (2011). Essentials of Quality with Cases and Experiential Exercises. Hoboken, NJ: John Wiley & Sons,
Inc.
• Sower, V., J. Duffy, & G. Kohers. (2008). Benchmarking for Hospitals: Achieving Best-In-Class Performance
Without Having to Reinvent the Wheel. Milwaukee, WI: ASQ--Quality Press.
• Sower, V. (2007). “Benchmarking in Hospitals: When You Need More than a Scorecard.” Quality Progress 40(8),
August, 58-60.
• Sower, V., & F. Fair. (2005). “There is More to Quality than Continuous Improvement: Listening to Plato.” Quality
Management Journal 12(1), 8-20.
• Tuominen, K. (2000). Managing Change. Milwaukee, WI: ASQ Quality Press.
Questions, Answers, & Discussion
Contact Information:
Victor E. Sower, Ph.D., C.Q.E.
Distinguished Professor Emeritus of Operations
Management & Author
Frank K. Fair, Ph.D. Professor of Philosophy & Author