Tuesday, July 22, 2008

Cross-Functional Band-Aids

Tony Rizzo

Alan Baljeu, a contributor to the everydayAgile@yahoogroups.com e-mail list quotes author Stephen Armstrong as follows: "About 80 percent of the problems I face in a change management project come from engineers. They can pose a real challenge when an organization is committed to finding new and better ways to do things."

Alan adds that the kind of change, of which Armstrong speaks, is to move engineers out of silos and into cross-discipline or cross-functional teams.

Alan finishes by asking for reactions to Armstrong's statements.

Thank you, Alan, for this bit of information. Indeed, I do have a reaction to Armstrong's statements.

Engineers tend to speak their minds. If they feel that they're being asked to do something that doesn't make sense to them, they tend to speak up about the situation. This is particularly true if they're speaking to a consultant, who has no authority within their companies and therefore can't do anything to them. However, the tendency of engineers to speak their minds is not the real problem, neither for the engineers nor for the companies for which they work. The real problem is considerably more serious.

The notion of cross-functional teams, also known as integrated product teams (IPTs), has been around for decades. Management teams have struggled to achieve this enlightened state of organizational awareness ever since the matrix-mismanagement pandemic of the 1970s debilitated knowledge-work companies across the globe. If engineers appear to resist a move toward this enlightened state, they do so probably for two reasons: a) They've suffered adverse consequences from this sort of change in the past, and b) they've seen this sort of change fail in the past.

Do not infer that engineers think highly of the silo-structure or that they believe cross-functional teams to be ineffective. We do not (yes, I'm an engineer too). However, if working in cross-functional teams means that already busy engineers have to take on additional work and attend additional meetings, on top of the numerous meetings and considerable work that their respective silos require of them already, then yes, expect resistance to this and to all equally brilliant suggestions.

Further, if a company's earlier two or three attempts to utilize cross-functional teams didn't last more than a handful of months, why should anyone expect yet another attempt to succeed?

Attempts to utilize cross-functional teams are futile, for most companies. They are Band-Aids, intended to overcome the gross deficiencies of the silo-structure, which impedes the performance of the vast majority of the companies of our time.

A company's reporting structure determines the manner in which managers and workers throughout the company interact with one another. Therefore, it defines the primary systems of the company, and it sets the level of performance of which the primary systems are capable.

If Armstrong's clients want greater performance than the primary systems of their silo-companies provide, they need to do something more substantive than merely applying a few cross-functional Band-Aids. They need to do two things:

  1. Design high-performance primary systems.
  2. Design a supporting structure. That is. Design a reporting structure that supports and enables high-performance primary systems rather than impeding these.
To these ends, Armstrong's clients need a scientific and testable theory of business, not Band-Aid solutions.

Tuesday, July 1, 2008

Success rarely just happens




I met Tony Rizzo in 2001 and interviewed him for the second issue of my magazine, TOCreview. We have worked together on several projects, and talk most every week... some times at great length. He is one of my best friends, in no small part because he cares.

He cares about success... mine and yours

Consider this a personal invitation to get your head re-wired "for speed" as Tony likes to call it. On September 16th in the quaint town of Whippany, New Jersey at the Courtyard (by Marriott) for the extremely reasonable price of just nine-hundred and fifty dollars ($950).

Details of course are online for this The Raw Speed of Total-Matrix workshop. Consider this: what would you pay to spend the day with one of America's greatest minds, working on the real problems that are holding your business back from the success it should be enjoying?

Tony Rizzo is too modest to blow his own horn too loudly. I am more than happy to step up and do so for him. If you know my name, it is in no small part due to the wisdom that I have gathered at his feet. That is how my brain is wired: when someone holds the answer to a problem that I am struggling with, I simply get close enough to that person to gleen the insight required.

If your business is not producing the expected results, this one day workshop holds the answer.

Period.

Sign up today. Before all the seats are gone.


Jeff 'SKI' Kinsey
Partner & Senior Consultant
Throughput.us LLC

Friday, June 20, 2008

The Invariants Of Primary Systems

Tony Rizzo

In an earlier article I defined the primary system of a business. However, I left unanswered one tiny question: By what method do we identify and understand the primary system of a business?

Immediately after he stated "First, draw the system's diagram." professor Chinitz taught just this method, to his students. The method involved tracing the movement of a unit-mass of water throughout the processes of the power-generation system being studied. Water is the working fluid of power-generation systems that utilize a steam cycle, and mass is one of the invariants of physics. By showing his students how the properties of a unit-mass of water were changed, by each process of the power-generation system, the professor taught us a method with which to understand any system, so long as we knew the right invariant to trace.

Mass is no less invariant today than it was during my thermodynamics course with the good professor, nor is energy nor momentum nor any of the other invariants of physics. But, none of the invariants familiar to engineering students seems useful, for understanding the primary system of a business. Money certainly is not useful in this respect. Money isn't even an invariant, let alone one of the invariants of physics -- if money were an invariant, the word inflation wouldn't be in our language.

So! What is the right invariant? The right invariant, with which to understand the primary system of a business, is information. Information, indeed, is one of the invariants of physics -- just check with Stephen Hawking, if you're not so sure. However, we can't use just any information, to understand the primary system of a business. We must use the right information.

The right information is revealed by the very definition of a primary system. Recall. "The primary system of a business is the one system that exists solely to create the offerings, which are of value to the customers of the business." This definition suggests not one but two invariants.

Definition: A problem-invariant is that information, which describes a need or a problem experienced by one or more customers of a business.

Definition: A solution-invariant is that information, which describes a solution to a need or to a problem experienced by one or more customers of a business.

Problem-invariants and solution-invariants are the basic units of information upon which the primary system of a business operates. Problem-invariants are the inputs to a primary system, just as air at atmospheric conditions is the input to a jet engine. To know the market of a business is, in part, to possess an adequately large set of problem-invariants with respect to the customers in that market.

Conjugate pairs, of problem-invariants and the respective solution-invariants, are the outputs of a primary system, just as a high-velocity exhaust jet and the resulting thrust are the outputs of a jet engine. The ongoing success of a business, in a given market, requires in part that the business sustain a high rate of output of these conjugate pairs of problem-invariants and solution-invariants. The latter, of course, are expressed as the products whose features solve the problems of the customers.