Quotes to inspire you toward becoming a good leader

Giftedness, Core Values & Purpose:

“Life is a place of service. Joy can be real only if people look upon their life as a service and have a definite object in life outside themselves and their personal happiness.” – Leo Tolstoy

“Too many people overvalue what they are not and undervalue what they are.” – Malcolm Forbes

“Life is good when you live from your roots. Your values are a critical source of energy, enthusiasm, and direction. Work is meaningful and fun when it’s an expression of your true core.” – Shoshana Zuboff

“Try to forget yourself in the service of others. For when we think too much of ourselves and our own interests, we easily become despondent. But when we work for others, our efforts return to bless us.” – Sidney Powell

“When a man realizes his littleness, his greatness can appear.” – H. G. Wells

“A meaningful life will not be found in the next job or the next car. The way you get meaning in your life is to devote your self to helping others and creating something that gives you purpose.” – Morrie Schwartz, in “Tuesdays with Morrie” by Mitch Albom

“The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking.” – Steve Jobs

“When you ask people what it is like being part of a great team, what is most striking is the meaningfulness of the experience. People talk about being part of something larger than themselves, of being connected, of being generative. It becomes quite clear that, for many, their experiences as part of truly great teams stand out as singular periods of life lived to the fullest.” – Peter Senge

“How does one become a butterfly? You must want to fly so much that you are willing to give up being a caterpillar.” – Trina Pallus

“However mean your life is, meet it and live it: do not shun it and call it hard names. Cultivate poverty like a garden herb, like sage. Do not trouble yourself much to get new things, whether clothes or friends. Things do not change; we change. Sell your clothes and keep your thoughts.” – Henry David Thoreau

“Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it.” – Goethe

Servant & Transformational Leadership:

“It is amazing how much people can get done if they do not worry about who gets the credit.” – Sandra Swinney

“If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” – John Quincy Adams

“Far better it is to dare mighty things, to win great triumphs, even though checked by failure, than to rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows neither victory nor defeat.” – Theodore Roosevelt

“Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.” – Peter Drucker

“In the end, it is important to remember that we cannot become what we need to be by remaining what we are.” – Max DePree

“We are not looking for blind obedience. We are looking for people who, on their own initiative, want to be doing what they are doing because they consider it a worthy objective. I have always believed that the best leader is the best server. And if you’re a servant, by definition, you’re not controlling.” – Herb Kelleher

“It could be argued that all leadership is appreciative leadership. It’s the capacity to see the best in the world around us, in our colleagues, and in the groups we are trying to lead. It’s the capacity to see the most creative and improbable opportunities in the marketplace. It’s the capacity to see with an appreciative eye the true and the good, the better, and the possible.” – David L. Cooperrider

“Leadership is not so much about technique and methods as it is about opening the heart. Leadership is about inspiration – of oneself and of others. Great leadership is about human experiences, not processes. Leadership is not a formula or a program, it is a human activity that comes from the heart and considers the hearts of others. It is an attitude, not a routine.” – Lance Secretan

“If you’re the leader, you’ve got to give up your omniscient and omnipotent fantasies – that you know and must do everything. Learn how to abandon your ego to the talents of others.” – Warren Bennis

Emotional Intelligence & Employee Engagement
(Balancing Head & Heart):

“He who has learning without imagination has feet but no wings.” – Stanley Goldstein

“When people are made to feel secure and important and appreciated, it will no longer be necessary for them to whittle down others in order to seem bigger in comparison.” – Virginia Arcastle

“The development of people is an equal partner with the actual results of your organization’s purpose” – Ken Blanchard

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” – Franklin D. Roosevelt

“The axe forgets, the tree remembers.” – Anonymous

“My day is better when I give people a bit of my heart rather than a piece of my mind.” – Pam Conley

“A special workplace has many ingredients. The feeling that you are part of a team, a sense of community, the knowledge that what you do has real purpose – all these things help to make work fun. But by far the most important factor is whether people are able to use their individual talents and skills to do something useful, significant, and worthwhile.” – Dennis Bakke

“The greater part of happiness or misery depends on our dispositions, and not on our circumstances.” – Martha Washington

“We who lived in concentration camps can remember the men who walked through the huts comforting others, giving away their last piece of bread. They may have been few in number, but they offer sufficient proof that everything can be taken from a man but one thing: the last of the human freedoms – to choose one’s attitude in any given set of circumstances, to choose one’s own way.” – Viktor Frankl

Bengawan Solo

Domestic goddess
by Huang Lijie
The Straits Times

Mrs Anastasia Liew, 62, fumbles to hide her hands from the camera.

Wearing a single diamond ring and no nail polish, the founder and managing director of Bengawan Solo cake shop says to the photographer: ‘Can you not photograph my hands? They don’t look good. These hands have been making cakes for more than 30 years.’

Her remark is more self-conscious than vain. But really she should be prouder of her hands – they have helped build her confectionery business from the kitchen of an HDB flat into an empire with a turnover of $43 million last year.
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Sim Kee Boon 沈基文

Sim Kee Boon (simplified Chinese: 沈基文; pinyin: Shěn Jīwén) was one of Singapore’s pioneer civil servants – men who worked closely with the Old Guard political leaders and played a key role in the success of Changi Airport and turned the fortunes of Keppel Shipyard around.

He graduated with Bachelor of Arts (Honours) in Economics from University of Malaya in 1953, and joined the civil service that year. By 1962, at just 33, he was made acting permanent secretary in the National Development Ministry, before taking charge of the Finance Ministry as well as Intraco, the state trading company. He was also Chairman and member of the Council of Presidential Advisers.

As Permanent Secretary at the Communications Ministry from 1975 to 1984, he made his name in the history books as the man behind was then the biggest civil project in Singapore – the construction and opening of Changi Airport – managing every aspect of the project from land reclamation to squatter resettlement. To Sim, Changi Airport project was his ‘national service’ to Singapore.

When Sim was given the mammoth task, he knew little about building an airport. Yet he approached the task as a layman, often asking questions and consulting his officers and staff. His hands-on, consultative management style kept staff on their toes, making sure they understand the importance of Changi project and nothing was to be overlooked. Civil Aviation Authority of Singapore (CAAS) chairman Liew Mun Leong remembered that Sim asked for mosaic tile samples from contractors to be displayed so staff could give feedback on tiles for the airport walls.

Sim was also known for his attention to details. As Chairman of the Civil Aviation Authority of Singapore (CAAS) for 15 years from 1984, he ensured that the airport had kept up with if not, exceed world-class quality standards. From airport management software to the texture of trolley handles, he insisted every aspect of customer experience must keep up with its impressive infrastructure. The quality of toilets at the Airport was even under his radar. He was quoted saying that the first and last point of exposure to an airport is the toilet. It gives you an impression of the country.

He also introduced free local phone calls in the transit area and the famous ’12-minute rule’. This means the first bag must be ready for retrieval 12 minutes after an aircraft grounds to a halt. He would even walk around the Changi terminals frequently, instituting the habit of ‘Management by Walking Around’ in CAAS. Mr David Lum, Managing Director of Lum Chang Holdings remembered that he would make an effort to look around airport, by reaching the place one or two hours earlier and board the plane at the last minute. And finally, he also stressed that the different players – CAAS, immigration and customs authorities, airport retailers, eateries – must work together as a team for Changi to succeed.

Sim’s success in his work did not stop with the development of Changi Airport. Between the years 1984 and 1999, Sim was serving concurrently as Chairmen of Keppel Corporation and the Civil Aviation Authority of Singapore. It came to him at first, that he would end Keppel as it was making losses then. Instead he took the reins and once again demonstrated his canniness and swift in his decision-making and implementation. Mr Lim Chee Onn, who was executive chairman of Keppel Corporation at the time attributed Sim’s visionary abilities and his optimism ‘during those very trying times’ as factors which led to the renewed growth of Keppel within 5 years. With first signs of rejuvenation for Keppel, Sim diversified Keppel’s portfolios into other fields like engineering, property, financial services as well as developing shipyards in other parts of the world. Keppel Corporation had become a success story that befits the image of a Singapore business icon.

Another success story of Sim was when he was the founding chairman of Tanah Merah Country Club, where he built it from scratch on a barren land, and into one of Singapore’s best country clubs.

As Sim and his wife Jeannette were avid golfers, Tanah Merah Country Club was like his ‘second home’. He would also personally greet new Tanah Merah Country Club members. In October 2007 his illness took a turn for the worse, and had to undergo chemotherapy. Even so, Mr Edwin Khoo, committee member at the Tanah Merah Country Club, would still see Sim regularly at the club and walking with a tube under his shirt. When he could not get himself on the greens and play, Sim would still putt around and join golf buddies for drinks most weekends for two hours.

Of his contributions to the club, Mr Khoo said Mr Sim, a passionate golfer, single-handedly turned the barren land into the “best-run club in Singapore’, and was very proud of it.

“He always had a simple message for us committee members: to run this club well, and to make the best of what we can do. It was a simple but powerful message,” he said. He added that Mr Sim went to the club’s golf course every weekend for about two hours even when he could not play golf because of his failing health.

Businessman and Singapore’s Ambassador to Turkey, Mr Chandra Das, 68, who worked directly for Mr Sim when he was in the Economic Development Board in the mid-1960s and mid-1970s, said his former boss had taught him two things.

“First, there is no such thing as black or white. There are no fixed answers and there isn’t just one way of doing things. You must be flexible. There is a lot of grey. He was a specialist in the grey,” Mr Das told The Straits Times.

“The second thing he told me when I left EDB to join Intraco: He said in EDB there are two people playing chess and you are giving advice. In Intraco, you are a chess player.”

He described Mr Sim as “a very sharp and intuitive man, and a good teacher.” “He said you can make mistakes so long as you don’t repeat them. He was also very task-oriented and a stickler for work,’ added Mr Khoo.

“I remember I took a day off to go to the Registrar of Marriages to get married. After the ceremony, he called the ROM and said: Is Chandra Das there? Tell him to come back to work.”

Added Mr David Lum, managing director of Lum Chang Holdings, where Mr Sim was adviser since 2000, : ‘Whenever he’s at any airports, he would make an effort to look around. He’d try to go to the airport about one or two hours earlier and board the plane at the last minute.’

A hands-on man with exacting standards, he made frequent unannounced walks around the Changi terminals, instituting the habit of Management by Walking Around (MBW) in CAAS. The demand for the best holds true even on the greens, as the founder chairman built the Tanah Merah Country Club into one of Singapore’s best.

Said the club’s president Tan Puay Huat: ‘He’s not satisfied until everything is near perfect.’

Ms Mavis Tan, who was personal assistant to Mr Sim for 19 1/2 years since 1984 till he retired in 2000, said he was a boss with a kind heart but had high expectations of his staff, always challenging them to come up with solutions.

“I learnt a lot under him as I always had to anticipate what he would ask. It never failed to impress me that he had such wide first hand connections in the region,’ she said.

Staff at Keppel Group also said they benefited from Mr Sim’s leadership during his 16 years tenure as Group Executive Chairman.

Leading the tributes from the group, Mr Lim Chee Onn, Executive Chairman of Keppel Corporation, said: “He developed a strong and stable platform for Keppel upon which we have been able to develop and grow at a sustained pace during these last 8 years. Keppel’s success today is a result of his vision and efforts.

‘As his colleague, I have learnt much from him through his inimitable style, particularly his great sense of optimism and cheerfulness even during very trying times.’

Ms Wang Look Fung, General Manager of the group corporate communications, added: ‘Mr Sim was respected and loved. In all his years at Keppel, he has taught me always to be first a Singaporean and then a Keppelite in my thinking process because what is good for Singapore will be good for the future of Keppel. I learned a lot from one of the finest masters in the art of communication.

‘I will always remember him as one who has a meticulous attention for details as well as an infectious joire de vivre, always affable and charming to everyone he meets.’

Mr Choo Chiau Beng, Senior Executive Director of Keppel Corp, and Chairman and CEO of Keppel Offshore and Marine, said he will remember Mr Sim as a successful man who was always able to balance well the demands of business and public service with family life and a passion for golf.

“He was an excellent boss – he demanded results but was human and caring. He always kept his cool like holing the final putt in an important 18th hole!’

He died on 9 November 2007 at the Singapore General Hospital, after a 17-year battle with stomach cancer.

More Ayn Rand

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“In the name of the best within you, do not sacrifice this world to those who are its worst. In the name of the values that keep you alive, do not let your vision of man be distorted by the ugly, the cowardly, the mindless in those who have never achieved his title.

Do not lose your knowledge that man’s proper estate is an upright posture, an intransigent mind and a step that travels unlimited roads. Do not let your fire go out, spark by irreplaceable spark, in the hopeless swamps of the approximate, the not-quite, the not-yet, the not-at-all. Do not let the hero in your soul perish, in lonely frustration for the life you deserved, but have never been able to reach.

Check your road and the nature of your battle. The world you desired can be won, it exists, it is real, it is possible, it is yours.”

~ Part Three / Chapter 7 This is John Galt Speaking

Ayn Rand

“The world you desired can be won, it exists, it is real, it is possible, it is yours. But to win it requires total dedication and a total break with the world of your past, with the doctrine that man is a sacrificial animal who exists for the pleasure of others. Fight for the value of your person. Fight for the virtue of your pride. Fight for the essence, which is man, for his sovereign rational mind. Fight with the radiant certainty and the absolute rectitude of knowing that yours is the morality of life and yours is the battle for any achievement, any value, any grandeur, any goodness, any joy that has ever existed on this earth.”

~ Ayn Rand’s last public speech (New Orleans Nov 1981)

Knowledge

Avoid processing more information than you can digest: it is better to know less and understand more.

Data is not information until it has been collected, collated and organized.

Information is not knowledge until it is absorbed and comprehended.

Knowledge is not understanding nor wisdom, until it is associated with life experience and given perspective.

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Dirigisme

Dirigisme is an economic term designating an economy where the government exerts strong directive influence.

While the term has occasionally been applied to centrally planned economies, where the government effectively controls production and allocation of resources (in particular, to certain socialist economies where the national government owns the means of production), it originally had neither of these meanings when applied to France, and generally designates a mainly capitalist economy with strong economic participation by government. Most modern economies can be characterized as dirigisme to some degree – for instance, governmental action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially military (i.e. a form of mixed economy).

John Thain

Thain behaviour
FT
Published: January 23 2009 22:03 | Last updated: January 23 2009 22:03

What is it that bankers don’t get? Unable to own up to a collective failure, some still display a sense of entitlement that bears no relation to their current status as wards of the state supported by the taxpayer. Step forward John Thain.

Formerly of Goldman Sachs, he was feted just months ago for securing the sale of Merrill Lynch to Bank of America, just as Lehman Brothers crumbled into dust. BofA even paid a 70 per cent premium. Some deal. Some salvation.

It now emerges that Mr Thain brought forward about $4bn in discretionary bonuses, paying them out in the narrow window after the sale of Merrill was agreed but days before the deal was actually closed.

This wheeze went down just as Merrill headed into record $21.5bn operating losses in the fourth quarter and BofA started seeking additional taxpayers’ funds from the troubled asset relief programme to digest its acquisition.

These bonuses, moreover, came in a year when Merrill’s total operating loss was $41.2bn. Bonuses equivalent to 10 per cent of the profits would be excessive, but 10 per cent of the losses? Furthermore, reports that Mr Thain spent $1.22m doing up his office, including $1,400 on a parchment rubbish bin, after his arrival at Merrill last year will serve to feed popular perceptions that the greed and insensitivity of investment bankers knows few limits.

Whether or not the bonuses were legal – and it seems they were – outside the parallel universe of investment bankers they are seen as looting. Bankers played a very big part in setting fire to the world economy – and reaped large rewards for their recklessness. They are being supported with public money because the economy cannot work without banks, not because bankers should be a protected species.

There may be no tumbrils rolling down Wall Street or through the City of London but a backlash is building. It would be a pity if this translates into regulation more stifling than that required to restrain more foolish risk-taking. But if bankers behave like this, it certainly will.

Only an A-Team will do: MM Lee

IS THERE a need for a new type of leadership to steer Singapore into the future? Or will what has worked in the past continue to work in the future?

These questions flitted through 41-year-old Jonas Ang’s mind as he sat through a dialogue at the Human Capital Summit with Minister Mentor Lee Kuan Yew yesterday.

The human resource director decided to pose them to the man most responsible for building modern Singapore.

Mr Lee’s immediate response: ‘That’s a very pertinent and deep question which I’ve asked myself.’

He said the Singaporeans of today have higher aspirations and are better educated than in the past, but that has also led some to believe that they know better than the Cabinet ministers.

‘You can see it in the letters to the press, which isn’t a bad thing provided they understand that they may not be right, because the ministers aren’t stupid,’ he said.

Changing times notwithstanding, Singapore must continue to have an A-Team of leaders in place, he added.

He said: ‘If we field a B-Team, we are in trouble. We’ve got to have an A-Team. I don’t care whether it’s the PAP (People’s Action Party) or any other party.

‘You need first-class people with good minds, a sense of obligation to do a good job for the people and the ability to execute. That’s an A-Team.’

How is an A-Team picked? MM Lee gave a peek into the process.

First, potential leaders undergo rigorous selection tests. They are then put through at least two five-year terms before they get to higher office, he said. ‘So we know that they got what it takes.’

A type of leader that Singaporeans must guard against is the glib speaker who cannot perform.

Said MM Lee: ‘That you can talk plausibly doesn’t mean you can perform effectively. They’re two different qualities. A good politician must be able to do both.’

One reason for the stringent criteria for future Singaporean leaders is the competition the country faces from up-and-coming economies like China and India, he said.

Still, there is something very much on the side of future Singapore leaders.

This is the Singapore system, characterised by traits like the rule of law, transparency, fair play and meritocracy, he said.

India and China will take at least 20 to 50 years to catch up with Singapore in this aspect, he believes.

Canadian and Singapore PR Edouard Merette, who has lived here for 12 years, agreed with MM Lee.

The peaceful, safe and efficient environment here is one reason why his company, Aon Consulting, decided to set up its regional headquarters and a research centre here.

Said Mr Merette, Aon Consulting’s CEO for Asia-Pacific: ‘Singapore is a modern society in a Third World area. You can give compliments only to Mr Lee’s leadership.’

Randy Pausch

Randolph Frederick Pausch (October 23, 1960 – July 25, 2008) was an American professor of computer science, human-computer interaction and design at Carnegie Mellon University (CMU) in Pittsburgh, Pennsylvania, and a best-selling author who achieved worldwide fame for his “The Last Lecture” speech on September 18, 2007 at Carnegie Mellon. The lecture was conceived after, in summer 2007, Pausch had learned that his previously known pancreatic cancer was terminal.

Pausch delivered his “Last Lecture,” titled “Really Achieving Your Childhood Dreams,” at CMU on September 18, 2007. This talk was modeled after an ongoing series of lectures where top academics are asked to think deeply about what matters to them, and then give a hypothetical “final talk,” i.e., “what wisdom would you try to impart to the world if you knew it was your last chance?”

Neutrality

“If you are neutral in situations of injustice, you have chosen the side of the oppressor. If an elephant has its foot on the tail of a mouse and you say that you are neutral, the mouse will not appreciate your neutrality.”

~ Desmond Mpilo Tutu, Winner of the 1984 Nobel Prize in Peace

Optimism bias

Optimism bias is the demonstrated systematic tendency for people to be over-optimistic about the outcome of planned actions. People tend to see the future through “rose-colored glasses,” as the saying goes. Optimism bias applies to professionals and laypeople alike. Optimism bias arises in relation to estimates of costs and benefits and duration of tasks. It must be accounted for explicitly in appraisals, if these are to be realistic. Optimism bias typically results in cost overruns, benefit shortfalls, and delays, when plans are implemented.

In a study in search of the brain regions responsible for optimism, researchers noted that “humans expect positive events in the future even when there is no evidence to support such expectations. For example, people expect to live longer and be healthier than average, they underestimate their likelihood of getting a divorce, and overestimate their prospects for success on the job market.”

In a debate in Harvard Business Review, between Daniel Kahneman, Dan Lovallo, and Bent Flyvbjerg, Flyvbjerg (2003) – while acknowledging the existence of optimism bias – pointed out that what appears to be optimism bias may on closer examination be strategic misrepresentation. Planners may deliberately underestimate costs and overestimate benefits in order to get their projects approved, especially when projects are large and when organizational and political pressures are high. Kahneman and Lovallo (2003) maintained that optimism bias is the main problem.

A Leader Should Know How to Manage Failure

Former President of India APJ Abdul Kalam : ‘A Leader Should Know How to Manage Failure’

India Knowledge@Wharton: Could you give an example, from your own experience, of how leaders should manage failure?

Kalam: Let me tell you about my experience. In 1973 I became the project director of India’s satellite launch vehicle program, commonly called the SLV-3. Our goal was to put India’s “Rohini” satellite into orbit by 1980. I was given funds and human resources — but was told clearly that by 1980 we had to launch the satellite into space. Thousands of people worked together in scientific and technical teams towards that goal.

By 1979 — I think the month was August — we thought we were ready. As the project director, I went to the control center for the launch. At four minutes before the satellite launch, the computer began to go through the checklist of items that needed to be checked. One minute later, the computer program put the launch on hold; the display showed that some control components were not in order. My experts — I had four or five of them with me — told me not to worry; they had done their calculations and there was enough reserve fuel. So I bypassed the computer, switched to manual mode, and launched the rocket. In the first stage, everything worked fine. In the second stage, a problem developed. Instead of the satellite going into orbit, the whole rocket system plunged into the Bay of Bengal. It was a big failure.

That day, the chairman of the Indian Space Research Organization, Prof. Satish Dhawan, had called a press conference. The launch was at 7:00 am, and the press conference — where journalists from around the world were present — was at 7:45 am at ISRO’s satellite launch range in Sriharikota [in Andhra Pradesh in southern India]. Prof. Dhawan, the leader of the organization, conducted the press conference himself. He took responsibility for the failure — he said that the team had worked very hard, but that it needed more technological support. He assured the media that in another year, the team would definitely succeed. Now, I was the project director, and it was my failure, but instead, he took responsibility for the failure as chairman of the organization.

The next year, in July 1980, we tried again to launch the satellite — and this time we succeeded. The whole nation was jubilant. Again, there was a press conference. Prof. Dhawan called me aside and told me, “You conduct the press conference today.”

I learned a very important lesson that day. When failure occurred, the leader of the organization owned that failure. When success came, he gave it to his team. The best management lesson I have learned did not come to me from reading a book; it came from that experience.

Where Have All the Leaders Gone?

“Am I the only guy in this country who’s fed up with what’s happening? Where the hell is our outrage? We should be screaming bloody murder. We’ve got a gang of clueless bozos steering our ship of state right over a cliff, we’ve got corporate gangsters stealing us blind, and we can’t even clean up after a hurricane much less build a hybrid car. But instead of getting mad, everyone sits around and nods their heads when the politicians say, “Stay the course.” Stay the course? You’ve got to be kidding. This is America, not the damned Titanic. I’ll give you a sound bite: Throw the bums out!

~ Lee Iacocca, Where Have All the Leaders Gone?

Theory of Constraints

Theory of Constraints (TOC) is an overall management philosophy. Dr. Eliyahu M. Goldratt introduced the theory of constraints in his seminal 1984 book entitled ‘The Goal’. It is based on the application of scientific principles and logic reasoning to guide human-based organizations. The publicity and leadership behind these ideas has been dominated by Dr. Goldratt through a series of books, seminars and workshops.

According to TOC, every organization has – at any given point in time – at least one constraint which limits the system’s performance relative to its goal. These constraints can be broadly classified as either an internal constraint or a market constraint. In order to manage the performance of the system, the constraint must be identified and managed correctly (according to the Five Focusing Steps below). Over time the constraint may change (e.g., because the previous constraint was managed successfully, or because of a changing environment) and the analysis starts anew.

The Five Focusing Steps

One of the most important process of the Theory of Constraints is based on the premise that the rate of goal achievement is limited by at least one constraining process. Only by increasing throughput (flow) at the bottleneck process can overall throughput be increased.

The key steps in implementing an effective process of ongoing improvement according to TOC are:

0. (Step Zero) Articulate the goal of the organization. Frequently, this is something like, “Make money now and in the future.”

1. Identify the constraint (the thing that prevents the organization from obtaining more of the goal)

2. Decide how to exploit the constraint (make sure the constraint is doing things that the constraint uniquely does, and not doing things that it should not do)

3. Subordinate all other processes to above decision (align all other processes to the decision made above)

4. Elevate the constraint (if required, permanently increase capacity of the constraint; “buy more”)

5. If, as a result of these steps, the constraint has moved, return to Step 1. Don’t let inertia become the constraint.

Liebig's Law of the Minimum

Liebig’s Law of the Minimum, often simply called Liebig’s Law or the Law of the Minimum, is a principle developed in agricultural science by Carl Sprengel (1828) and later popularized by Justus von Liebig. It states that growth is controlled not by the total of resources available, but by the scarcest resource. This concept was originally applied to plant or crop growth, where it was found that increasing the amount of plentiful nutrients did not increase plant growth. Only by increasing the amount of the limiting nutrient (the one most scarce in relation to “need”) was the growth of a plant or crop improved.

Liebig used the image of a barrel—now called Liebig’s barrel—to explain his law. Just as the capacity of a barrel with staves of unequal length is limited by the shortest stave, so a plant’s growth is limited by the nutrient in shortest supply.

Six Sigma

Six Sigma is a business management strategy, originally developed by Motorola, that today enjoys wide-spread application in many sectors of industry.

Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization (“Black Belts” etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).

DMAIC is used to improve an existing business process; DMADV is used to create new product or process designs.

DMAIC

The basic methodology consists of the following five steps:

* Define process improvement goals that are consistent with customer demands and the enterprise strategy.
* Measure key aspects of the current process and collect relevant data.
* Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered.
* Improve or optimize the process based upon data analysis using techniques like Design of Experiments.
* Control to ensure that any deviations from target are corrected before they result in defects. Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process.

DMADV

The basic methodology consists of the following five steps:

* Define design goals that are consistent with customer demands and the enterprise strategy.
* Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.
* Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.
* Design details, optimize the design, and plan for design verification. This phase may require simulations.
* Verify the design, set up pilot runs, implement the production process and hand it over to the process owners.