Does the Decalogue Methodology Improve Management Effectiveness?

Back in September, Angela Montgomery published a book entitled The Human Constraint: How Business Leaders Can Embed Continuous Innovation, Conflict Resolution, and Problem Solving Into Daily Practice, which explores an increasingly complex, interdependent, and fast-changing world where companies must have a way to overcome obsolete mental models and embed continuous innovation in their operations with a coherent organizational model.

When I spoke with Angela recently, I asked her: “How does the Decalogue methodology improve management effectiveness?” Here is her complete response: 

Whether it’s a startup, a scaleup, SME or multinational, smoke stack or hi-tech, leaders, founders, managers, and investors face challenges today unlike before. Applying linear thinking and conventional management tools is no longer adequate or effective. Our new reality is a complex, highly nonlinear network of cause-effect relationships. Moreover, the digital age requires better decision-making, faster innovation, and flawless delivery of products and services. What’s needed is a new way of thinking and operating. 

The Decalogue method introduces leaders to a systemic approach to managing operations. It helps them connect dots they would not otherwise see and strategize, plan, and execute at a whole new level. Learning to behave as one cohesive system involves identifying a unique leverage point (constraint) to propel performance and achieve significant and sustainable growth. The method enables a company to develop a systemic value proposition for the market that competitors cannot imitate while improving performance company-wide to deliver their offer reliably. 

The Ten Steps of the Decalogue enhance all aspects of business, from production to marketing and sales, project management, new product development, supply chain, finance, and M&A. The steps give business owners and leaders a clear and focussed path to achieving maximum value with the resources available. A leap in overall performance is achieved by defining a clear goal and measurements, understanding variation to map effective processes and interdependencies, and identifying the one factor that determines the pace of throughput. 

A key part of the journey is embracing and implementing necessary change. Our human ambitions and emotions all have a role to play, and this is what I hope to emphasize in the book. The Decalogue introduces a set of systemic Thinking Processes that enable companies to overcome cognitive barriers to change and channel their energies in a positive direction towards a common goal. These processes embed into daily practice the ability to solve problems, resolve conflicts, and continuously develop breakthrough solutions that add high value. 

What do you think of Angela Montgomery's perspective? Do you have experience with the Decalogue method? Do you think it would be effective in your organization? 

Humility -- Does It Affect Leadership Effectiveness?

In August, Andrew J. DuBrin published a book entitled Leadership Humility: A Characteristic that Enhances Professional Effectiveness, which describes an opinion about the most relevant aspects of humility as it applies to leadership and professional effectiveness, yet the emphasis is on leadership. Humility as it relates to leadership and professional effectiveness is covered from many angles. Among these topics are the many meanings and components of humility and how leadership humility impacts group member performance and behavior.

When I spoke with Andrew this month, I asked him:  “How does humility actually increase leadership effectiveness?” Here is his complete answer:

An appropriate degree of humility is essential for leadership effectiveness because today’s effective leader is expected to demonstrate humility in addition to standard leadership attributes such as self-confidence, high-level cognitive skills, creativity, charisma, and the ability to articulate visions. Leadership effectiveness is enhanced when interspersed with other key leadership attributes including assertiveness, a sense of humor, and strategic thinking ability. Many brash, aggressive, and successful leaders would be even more successful if they sprinkled their leadership approach with humility.  

Another way in which humility increases leadership effectiveness is that being a little humble has an impact on performance. The performance, or results, could be at the individual, group, or organizational level. Leadership humility can improve a leader’s decision-making. Intellectually humble leaders are likely to gather multiple inputs before making a decision because they do not think they have all the answers. Leaders who express humility often enhance the creativity of group members because they set up a climate conducive to imaginative thinking. A humble leader will often create a psychologically safe environment, meaning that staff members feel safe to take the risk of making a mistake. The person who feels psychologically safe believes he or she will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes.

A leader with humility helps establish a group climate in which people can learn and develop. A climate of this nature enables group members to invest more of themselves into their jobs, and therefore be engaged in their work. Leadership humility often has a big impact on team performance. The humble leader seeks the cooperation of all team members, shows openness toward their ideas, and encourages them to become actively involved in solving problems the team is tackling. One of the many ways in which leadership humility improves organizational performance stems from workers observing that their strengths are appreciated.

What do you think of Andrew's perspective on humility and leadership? What role does humility play in your company's leadership and management training?

Bioinspired Strategies -- Do They Help Companies Survive?

During this past July, Daniel J. Finkenstadt and Tojin T. Eapen published a book entitled Bioinspired Strategic Design: Nature-Inspired Principles for Dynamic Business Environments, which shows that the same three capabilities essential for the survival of living organisms in harsh environments – efficiency, resilience, and prominence – are also critical for organizations in their process of navigating through their own hostile environments.

I spoke with both authors shortly after the book's publication, and during our conversation, I asked them: "What are bioinspired strategies and how do they help companies survive?" Here is their complete answer:

The bioinspired strategies described in the book draw inspiration from adaptations and mechanisms found in living organisms to solve complex problems. These strategies can be analogically applied to identify survival strategies applicable to human organizations, including companies.

This approach of analogically associating nature with business problems also encourages viewing business operations and challenges as part of an interconnected system.

Bioinspired strategies help companies survive by improving their efficiency, resilience, and prominence (we call it "ERP" capabilities) in challenging environments.

The key lesson in the book can be described as follows:

"The effect of any action on survivability cannot be understood by merely looking at its impact on one of the three ERP factors, efficiency, resilience or prominence that it seeks to modify, but requires looking at indirect effects mediated by the other two factors."

This means that a company’s actions don't exist in isolation – they can have ripple effects across all three factors, which together determine the company's overall ability to survive and thrive.

Firstly, companies can optimize their efficiency (E) by studying how organisms efficiently manage limited resources through principles such as resting, reduction, and reuse.

For example, consider how certain desert plants, like cacti, have adapted to conserve water in arid environments. They have developed specialized structures to store water and minimize water loss through transpiration. This natural strategy can inspire businesses to find innovative ways to conserve and efficiently use their critical resources, especially in resource-scarce operating environments.

Secondly, nature's lessons in adaptation to external forces guide business on resilience (R). Specific principles found in nature such as replacement, repair, and reinforcement can help businesses become more adaptable to market changes and crises.

For example, consider the well-known case of how camels store fat in their humps for long journeys. The camel's hump illustrates the role of reservoirs and reinforcements in survival when faced with extreme unpredictable forces. This principle is also found in business environments, such as building up buffer stocks or cash reserves to manage uncertainty.

Thirdly, the concept of prominence (P), inspired by how organisms balance their visibility towards predators, prey, and mates, can be applied to managing complex relationships that involve both attracting and avoiding attention from observers.

In nature, prominence capability is apparent in the ability of various cephalopod (squid, cuttlefish, octopi) species to alter their appearance in the presence of different observers (predators, prey, or potential mates).

In the book, we show how cephalopods' strategies for managing visibility can be applied to startups dealing with various stakeholders like investors, competitors, and customers.

Nature-inspired strategies offer design principles such as combination, removal, and segmentation. These serve as practical guidelines for generating ideas and managing trade-offs in strategic decision-making. By looking to nature for inspiration, businesses can discover innovative solutions to complex challenges and enhance their chances of long-term survival and success.

What do you think of Daniel and Tojin's ideas? Has your company implemented any methods that use nature as inspiration to solve problems?

Small Business -- Can They Grow and Profit Without Taking on Staggering Debt?

This past June, Manny Skevofilax published a book entitled Ultimate Profit Management: Maximizing Profitability as You Grow Your Business, which details how small businesses can achieve reasonable, prudent growth while avoiding debt. He explains the readily available tools entrepreneurs can use to ensure that their businesses do not turn unprofitable as they grow them. He posits that it makes sense to resist the lure of the high-growth, no-profit strategy and instead embrace the approach of steady growth with profits.

When I spoke with Manny this month, I asked him: "How do you define prudent growth and how can small businesses avoid crushing debt?” Here is his full answer:

In my opinion, “prudent growth” is defined as growth that increases the net income of a business.  “Prudent growth” is usually accomplished slowly, with new revenue acquired at your business’s appropriate margin, in conjunction with the judicious use of debt.  In simpler terms, you do your best to increase the profit of your business without increasing the debt much.  For example, some businesses bring in new revenue (“growth”) that isn’t profitable for one reason or another.  If the business incurred marketing expenses to bring on this unprofitable revenue, how are these marketing expenses going to be paid?  Since there was no profit made from this revenue, there is no money to pay these marketing expenses.  The money needs to come from somewhere and it usually comes from taking on debt.  This scenario describes how a business can grow its revenue and make less profit overall.

If this scenario continues, a business will have poor cash flow and more debt than it can repay.  Sometimes, this scenario causes a business to turn unprofitable which can further aggravate its poor financial situation. Therefore, it is important to make sure that you are growing your business profitably and that you are taking on debt for the right reason.  If you see the need for short-term debt for a sound business reason, then determine what cash flow expectations or enhancements will occur to repay it in the short term. Otherwise, your debt continues accumulating, as do the interest payments, and your flexibility is continually reduced.

To avoid crushing debt, use a portion of the profits that you earn to reinvest in your business for growth. Use a bank line of credit to finance the carry of your accounts receivable and inventory. You grow best when you’re in a strong position, not when you have your hat in your hand in line at the bank. The takeaway here is to use borrowed funds judiciously! 

What are your thoughts regarding Manny Skevofilax's perspective? What are your experiences with growing a small business?

The Mental Well-Being of Colleagues and Continuous Improvement Culture -- Are They Intertwined and Mutually Reinforcing?

At the beginning of June, Chris Butterworth published a new book entitled Why Care? How Thriving Individuals Create Thriving Cultures of Continuous Improvement Within Organizations, which contends that to create a sustainable culture of continuous improvement there must be an organization-wide focus on mental well-being at the individual level. A culture of continuous improvement nurtured in the right way, however, will indeed support mental well-being and help create a thriving organization.

When I recently spoke with Chris about his book, I asked him: "How are mental well-being and a culture of continuous improvement intertwined and mutually reinforcing with an organization?" Here is his complete answer:

Today’s ever-increasing VUCA (Volatile, Uncertain, Complex, and Ambiguous) environment means that organizations must be more adaptable and flexible than ever.  Organizational performance depends on the collective psychological capacity (emotional and cognitive energy) of everyone in the organization.  Without high levels of mental, or psychological, well-being individuals suffer, organizational performance is stifled and continuous improvement (CI) is throttled.

Creating high levels of mental, or psychological, well-being means starting with an inside-out perspective focused on mental well-being at an individual level.  Like the nucleus of an atom, high levels of individual psychological well-being unleash psychological capacity. This precious resource is critical for people to be able to do their work effectively and continuously improve their work. It provides the organization with the energy and agility to prosper. 

However, individual psychological well-being is not enough on its own.  High levels of psychological well-being without a robust CI system limit people’s potential to fully utilize their psychological capacity. Both systems are essential to a thriving organization. Psychological well-being and CI working together create a thriving high-performance environment, where individuals feel they matter, are cared for, and can grow and develop.  Together they create environments where teams can solve problems, innovate, adapt, and grow generating sustainable organizational success. In our book Why Care? we explore how to do this at different levels – individual, team, leader, and organizational and the foundations needed, such as diversity, equality, inclusion, belonging, and an understanding of the brain.

The CI system must be co-designed to leverage the available psychological capacity of everyone in the organization.  In Why Care? we illustrate how the CI system and tools can be reorientated to engender and maximize psychological well-being and how continuously improving work also increases levels of psychological well-being.  Not only are the two intertwined but they are mutually reinforcing.  We believe this is not just a nice thing to do. It is critical to the future of every organization and its people.

Do you agree with Chris' statements? Does your continuous improvement initiative include the psychological capacity of colleagues? 

Toxic Workplace Cultures -- Can Organizations Recover from Them?

Just this past April, Seth Allcorn published a new book entitled Managing Toxic Leaders and Dysfunctional Organizational Dynamics: The Psychosocial Nature of the Workplace, which explores work-life dynamics and the effects toxicities and dysfunctions have on members of organizations.

When I spoke with Seth this past week, I asked him: “How can organizations deal with toxic cultures and recover from them?” Here is his complete response: 

Leaders and organization members can become contributors to creating a toxic workplace that includes a wide range of dysfunctions and oppressive organizational dynamics that limit creativity and productivity. This is regrettably common and limits what the organization can achieve. Healing a toxic organizational culture begins by acknowledging its presence. This opens it up for inspection, “What is it like to work here?” However, like many if not most organizational problems, calling an organizational toxic culture into question can threaten leaders who may be a part of the problem. Organization members may also identify with these leaders and contribute their own harmful behavior. This process of “selecting-in” to these organizational dynamics by organization members creates a like-minded group who defend the toxicity. As a result, when striving to create positive change, a sense of threat may arise for advocating for change. Even so, taking up this challenge is to be applauded. However, the threats associated with creating change may lead to engaging a “disposable” psychosocially informed organizational consultant. 

The consultant should begin by first listening to organization members and then locate a meaningful and as near as possible non-threatening plan for change to avoid resistance to change. If the sense of threat is not too great, a group of motivated organization members may step forward to support the consultant and facilitate the change process. The consultant should also, after listening to a cross-section of organization members, engage the leadership group in a discussion of the findings and facilitate their development of a non-defensive plan to respond to the findings. The plan should be designed to safely engage everyone in a process of no-fault change. The direction of the change process should be toward creating a more open, inclusive, collaborative, trusting, and respectful culture.

What do you think of Seth Allcorn's perspective? Have you worked in organizations in which the culture would be considered toxic? Did the organization take steps to improve it? Was it successful?

Leadership Principles -- How Do They Build Motivation and Commitment?

Back in March, David Sharpley published a new book entitled Leadership Principles and Purpose: Developing Leadership Effectiveness and Future-Focused Capability, which provides a fresh perspective on leadership and the steps required to achieve high performance. It explores how we create purpose by moving from vision and values through principles to action. When I spoke with David this month, I asked him directly: "How do principles shape competencies and build motivation and commitment?" Here is his complete answer: 

We hear executives talk about "vision" and "values," but there’s less mention of the principles that define how activities are completed. These provide points of reference and set boundaries. They also underpin competencies linked to high performance. Higher-order principles influence people’s expectations of what is fair and reasonable. They help clarify how leaders create enabling conditions that enhance motivation, commitment, and shared purpose.  

Self Determination Theory (SDT) offers insight into why principles matter. The SDT Model reveals that everyone has an innate need for positive, trust-based Relationships. We also seek to develop the Competence that fuels meaningful activity and builds motivation. Autonomy adds to self-direction, responsibility, and purpose. Underlying needs are also reflected in people’s desire for social cohesion and stability. Significant principles therefore relate to Justice, Equality, Compassion, and Accountability. Principles are closely aligned with ethical values but expressed in the form of rules, protocols, and norms.  

Clearly stated principles ensure consistency of approach, support cascaded leadership, and define the work culture. Effective leaders build on principles that will develop capability and create shared purpose. They appreciate that discretionary effort is influenced by a range of factors, which include opportunities for self-directed, meaningful activity. Significant, Superordinate Principles strengthen trust-based relationships and motivation. They help build commitment, which is the emotional connection and identification people feel towards the organization. It is enhanced when people feel valued and there are opportunities for personal development (e.g. "my manager supports my development"). Commitment helps maintain motivation when we are faced with the inevitable setbacks that undermine progress.  

Over time, authentic leaders internalize important principles, including an emphasis on transparency, equality, and accountability. Clear principles increase personal conviction, but also our willingness to develop capability in others. Acting on the basis of higher-order principles conveys integrity and establishes a clear rationale for effective action, which adds to the leader's credibility. Principles have a significant role in building and maintaining people's motivation and commitment. They help leaders create shared purpose, develop effective systems, and achieve more meaningful connections with others.

What do you think of David's perspective? What is the state of leadership in your organization? Do the principles stated and practiced build motivation and commitment?

Virtual Reality and Artificial Intelligence -- What is Their Role in Coaching and Training?

In February, Matteo Zaralli published a new book -- entitled Virtual Reality and Artificial Intelligence: Risks and Opportunities for Your Business -- which focuses on how virtual reality (VR) and artificial intelligence (AI) are reshaping the way we learn and coach. 

When I spoke with Matteo this past week, I asked him: “What are some of the ways virtual reality and artficial intelligence are being incorporated into coaching and training?” Here is his complete answer:

Virtual Reality (VR) and Artificial Intelligence (AI) are revolutionary technologies with the potential to radically transform the landscape of learning and coaching, significantly accelerating, enriching, and enhancing the process.

Exploring the domain of artificial intelligence, we see how the accessibility to information and the speed of its acquisition highlight the transformative power of AI. However, its application extends far beyond this. Recently, Open AI introduced a groundbreaking development with the launch of a vocal feature for ChatGPT, offering users the opportunity to interact with an advanced virtual assistant, further expanding the horizons of digital learning.

In parallel, virtual reality is opening new frontiers in education and coaching, thanks to the introduction of cutting-edge devices from Oculus and Apple. Studies conducted on these platforms demonstrate that learning can be up to four times faster, with improved performance and optimal concentration, thanks to an immersive environment that minimizes distractions.

By combining the strengths of VR and AI, we can envision innovative scenarios such as public speaking, healthcare procedures (such as surgical room preparation and intricate surgeries), work safety certifications alongside standards compliance, construction projects, engineering challenges, and energy and plant maintenance represent areas where advanced tools significantly enhance learning and execution of specialized skills; where users can practice in a safe, interactive, and emotionally engaging context. This environment is enriched by the presence of a virtual assistant, with whom users can discuss specific topics, offering an unprecedented learning experience. For coaches and instructors, often constrained by limited time, this synergy provides a valuable simulation tool, allowing them to efficiently support every individual and ensure a high level of continuous learning.

The benefit of having a tool to train and exercise our skills is needed today more than ever. Technology runs, companies run, and more and more skills and abilities developed quickly are demanded at work, but like everyone, the day consists of 24 hours. So it required a tool that allows us to learn faster, with an impact on our recollection and memory, and above all that untied from space and time.

What do you think of Matteo's perspective? Has VR and AI been incorporated into your organization's learning and coaching processes? Have the results been successful? 

The Future of Manufacturing -- What are the New Core Technologies?

This month, Philip J. Gisi published his third book with Productivity Press entitled The Dark Factory and the Future of Manufacturing: A Guide to Operational Efficiency and Competitiveness. His new book provides a view into the future and direction on how to navigate the journey to a more automated, smarter, and continuously learning factory. This book consolidates the major elements of the fourth industrial revolution and describes them in clear terms within the context of integrated manufacturing. It creates awareness and a fundamental understanding of the advanced technologies that are coming together to facilitate highly automated, smarter, agile, and sustainable operations.

When I spoke with Phil this past week, I asked him: "What are some of the newer core technologies in manufacturing and how are they being used?” Here is his complete answer:

Manufacturing is undergoing a significant transformation with the adoption of several newer core technologies such as the Industrial Internet of Things (IIoT), Artificial Intelligence (AI), Augmented Reality (AR) / Virtual Reality (VR), and Digital Twins. IIoT involves connecting machinery, sensors, and other devices to collect and exchange data. This data can be used for real-time monitoring, predictive maintenance, and improving overall efficiency.  AI is being used in manufacturing for process optimization, quality control, predictive maintenance, and even autonomous decision-making. Machine learning algorithms can analyze vast amounts of data to identify patterns and make predictions to avoid unplanned equipment downtime.  

AR and VR technologies are being used in manufacturing for training, design visualization, and maintenance. These technologies can help improve efficiency, reduce errors, and enhance collaboration while the application of a digital twin, serving as a virtual model of a physical manufacturing asset, process, or system, can enable real-time monitoring, simulation, and optimization, leading to improved performance and reduced downtime. As I stated in my latest book, “Manufacturers must be aware of, understand, and embrace these changes to stay competitive and meet the evolving demands of customers in the modern era. This book enhances the awareness and understanding of these core technologies by explaining what they are and how they are being used in manufacturing."  Clearly, these technologies are reshaping the future of manufacturing and will continue to do so as they evolve within the scope of the Fourth Industrial Revolution or Industry 4.0 for short.

What do you think of Philip's perspective? Are these core technologies now part of your business? If so, have they delivered the expected results?

Lean Six Sigma -- Its Evolving Best Practices and Issues

This past December, Terra Vanzant Stern published the third edition of Lean Six Sigma: International Standards and Global Guidelines. Lean Six Sigma (LSS) is designed to accommodate global challenges and constraints by capitalizing on Six Sigma and Lean Thinking, and her book assumes that the overall goal of operational excellence is to ensure that organizational tasks and activities are being performed to the best of their process capabilities. It defines continuous improvement as activities that support and empower environments to make flexible decisions that lead to ongoing improvement and effectiveness. It covers new global LSS standards, international implementation of process improvement programs,  new international LSS applications, and international LSS areas of competency.

When I spoke with Terra this month, I asked her: "What important updates are covered in this third edition of your book?” Here is her complete answer:

The updates included in this edition are crucial because I have taken Lean Six Sigma to new heights, incorporating cutting-edge updates and advancements that will leave you captivated. With a focus on enhancing change management and data governance programs, this edition is a game-changer for organizations seeking to optimize their processes and drive sustainable growth.

What sets this edition apart is its ability to seamlessly integrate process improvement methodologies with change management and data governance. We understand that these three pillars are essential for organizations to thrive in the current dynamic business landscape. By leveraging Lean Six Sigma principles, you can streamline your processes, drive efficiency, and achieve remarkable results.

Imagine a world where every process is optimized, every change is seamlessly implemented, and every data point is governed with precision. This vision becomes a reality with the help of the latest edition of this book. I have meticulously crafted a framework that empowers organizations to achieve operational excellence while ensuring compliance and data integrity.

But what truly makes this edition intriguing is the transformative power it holds. By embracing Lean Six Sigma, organizations can unlock their full potential and drive a culture of continuous improvement. From reducing waste and defects to enhancing customer satisfaction, the possibilities are endless.

With this third edition of the book, you surely discover how Lean Six Sigma can revolutionize your organization's process improvement, change management, and data governance programs. Embrace the power of Lean Six Sigma and unlock a world of endless possibilities.

The new edition of this book assists you as you embark on a journey toward operational excellence, enhanced change management, and impeccable data governance. It's time to revolutionize the way you do business.

What are your experiences with Lean Six Sigma initiatives? What issues and aspects do you feel should be incorporated as organizations change and evolve?