Improve: The Next Generation of Continuous Improvement for Knowledge Work
Tags: #business #management #lean thinking #productivity #efficiency #process improvement #knowledge work
Authors: George Ellis
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Overview
My book ‘Improve: The Next Generation of Continuous Improvement for Knowledge Work’ is a practical guide for knowledge workers, project managers, and leaders who want to enhance the performance of their professional and expert teams. I reveal how a vast amount of ‘hidden waste’ exists in knowledge-intensive organizations, hindering productivity, delaying projects, and causing frustration. Drawing from the principles of Lean Thinking, I present a structured approach to identify and eliminate this waste, ultimately unlocking the full potential of these teams. I introduce a three-pronged strategy: Simplify, Engage, and Experiment. 1) ‘Simplify’ focuses on streamlining complex workflows and reducing unnecessary effort. 2) ‘Engage’ centers on addressing the motivational needs of knowledge workers, fostering collaboration, and creating a culture of continuous improvement. 3) ‘Experiment’ emphasizes adopting an experimental mindset, testing assumptions, and iterating rapidly to identify and implement better solutions. Throughout the book, I offer practical tools and techniques, including visual management systems, problem-solving canvases, and methods for managing small tasks and large projects. I also delve into the importance of leadership in driving and sustaining continuous improvement, emphasizing the need for business humility, clear communication, and consistent accountability. I offer numerous real-world case studies and personal anecdotes from my experience in implementing lean principles in diverse knowledge-intensive organizations, illustrating the effectiveness of this approach. By providing a clear roadmap for applying Lean Thinking to knowledge work, my book empowers individuals and teams to achieve breakthrough results, exceeding expectations in quality, productivity, and overall performance.
Book Outline
1. 30% of what you think is wrong
This chapter sets the stage with a compelling narrative of how lean thinking can drastically improve the performance of knowledge work. I introduce the concept of hidden waste, which refers to the inefficient and unproductive activities that often go unnoticed but consume a significant portion of our workday. I assert that knowledge workers often possess the skills and dedication needed to achieve outstanding results but are hindered by systemic waste. To illustrate this, I present a case study of a new project manager, Gretchen, who struggles with an inefficient approval process and highlight the various types of waste that impede her progress. I argue that by identifying and reducing hidden waste, knowledge organizations can unlock their true potential and achieve dramatic improvements in quality, productivity, and employee engagement.
Key concept: “Even a wise man probably is right seven times out of ten but must be wrong three times out of ten.”
This quote from Taiichi Ohno emphasizes the core of lean thinking – that there is always room for improvement and that even the most knowledgeable individuals are prone to error. It highlights the need for continuous experimentation and the importance of challenging assumptions in pursuit of better solutions.
2. A brilliant insight
This chapter delves into the origins of lean thinking, tracing its roots back to the Toyota Production System (TPS). I provide a historical account of TPS and highlight the contributions of pioneers like Taiichi Ohno and Shigeo Shingo, who helped transform Toyota from a small car maker into a global giant. I draw parallels between the success of lean manufacturing and its potential for transforming knowledge work. To substantiate this, I explore case studies from various fields like healthcare, product development, entrepreneurship, and software development where the principles of lean thinking have been successfully applied. The chapter concludes with my personal experience of implementing lean principles in knowledge-intensive organizations, showcasing the effectiveness of this approach in diverse settings.
Key concept: “The brilliant insight of Toyota was there was so much hidden waste that reducing waste would transform the company.”
This quote encapsulates the revolutionary thinking behind the Toyota Production System (TPS). It emphasizes that the key to Toyota’s success was not solely about technical advancements but also about recognizing the vast amount of hidden waste in their processes and relentlessly pursuing its reduction. This insight forms the foundation of lean thinking and its application to knowledge work.
3. Creating value from knowledge work
This chapter explores the concept of value in the context of knowledge work. I argue that value is ultimately defined by what the customer is willing to pay for. I introduce the concept of internal customers to address situations where the connection between knowledge work and end-customer value is indirect or difficult to quantify. I then delve into the five facets of value that knowledge work creates: fit for purpose, profitability, on-schedule delivery, innovation, and compliance. This framework helps knowledge workers and their leaders better understand the diverse ways they contribute value and ensure their work aligns with the organization’s goals and the customer’s needs.
Key concept: Five Facets of Value:
- Fit for purpose
- Profitable
- On-schedule
- Innovative
- Protected and compliant
This enumeration provides a framework for understanding the value knowledge work can create. It goes beyond the simple notion of profitability to include factors like fitness for purpose, timeliness, innovation, and compliance. I argue that considering these diverse facets of value is crucial for knowledge organizations to maximize their impact and meet the evolving needs of their customers and stakeholders.
4. The lean equation
This chapter presents the lean equation: Effort = Value + Waste. It emphasizes that all work effort can be divided into two distinct categories: those that create value for the customer and those that generate waste. Building upon Ohno’s insight that the majority of activities in an organization are wasteful, I argue that even small increments of waste reduction can yield significant improvements in value creation. I also discuss the concept of opaque workflows commonly found in knowledge work, highlighting how the lack of transparency hinders the identification and elimination of waste. I stress that a shift in mindset is necessary to embrace the lean equation, moving away from the traditional “more is better” approach to one that focuses on reducing waste as a means to sustainably increase value.
Key concept: Lean Equation: Effort = Value + Waste
This simple but powerful equation lies at the heart of lean thinking. It highlights the importance of understanding that effort invested in any activity can be divided into two categories: value-creating activities and wasteful activities. I emphasize that the key to continuous improvement is to relentlessly reduce waste, thereby freeing up resources to focus on activities that deliver value to the customer.
5. DIMINISH: Recognizing the 8 Wastes of Knowledge Work
This chapter introduces the 8 Wastes of Knowledge Work, captured in the acronym DIMINISH. Building on the concept of the 7 Wastes of Lean Manufacturing, I identify 8 categories of waste that are particularly relevant to knowledge work: Discord, Information Friction, More-is-Better Thinking, Inertia to Change, No-Win Contest, Inferior Problem Solving, Solution Blindness, and Hidden Errors. I argue that understanding these 8 Wastes is crucial for knowledge workers and their leaders to identify and eliminate the unproductive activities that hinder their effectiveness and prevent them from achieving their full potential.
Key concept: DIMINISH:
- Discord
- Information Friction
- More-is-Better Thinking
- Inertia to Change
- No-Win Contest
- Inferior Problem Solving
- Solution Blindness
- Hidden Errors
This acronym represents the 8 wastes of knowledge work. It provides a helpful mnemonic to remember these diverse sources of waste, which range from team misalignment and information silos to inferior problem solving and hidden errors. The DIMINISH acronym emphasizes that waste in knowledge work is often subtle and multifaceted, requiring a systematic approach to identify and eliminate it.
6. Simplify, engage, and experiment
This chapter introduces the three core principles of lean knowledge: Simplify, Engage, and Experiment. I argue that reducing waste in knowledge work requires a multifaceted approach that goes beyond simply streamlining processes. It involves understanding the human element, creating an environment where knowledge workers feel inspired, connected, protected, and challenged, and embracing an experimental mindset to continuously test assumptions and identify better solutions. The chapter concludes with a discussion of the importance of business humility, which involves acknowledging the limits of our knowledge and being open to learning from others.
Key concept: Simplify-Engage-Experiment
This three-pronged approach provides a structured framework for addressing waste in knowledge work. It emphasizes the need to simplify complex workflows, engage knowledge staff by addressing their motivational needs, and experiment continuously to identify and eliminate hidden waste.
7. Reduce Waste #1: Discord
This chapter focuses on addressing the first waste of knowledge work: Discord, which arises from misalignment within teams, between teams, and with the organization’s leadership. I discuss the importance of understanding different personality styles and how they can contribute to or hinder team effectiveness. To address Discord, I introduce the Engagement Wheel, a model that represents the four key drivers of engagement: Inspiration, Connection, Protection, and Challenge. I argue that leaders must address all four quadrants of the Engagement Wheel to create a work environment where knowledge workers feel inspired, connected, protected, and challenged. The chapter concludes with a discussion of practical techniques for increasing team function, including establishing trust, facing conflict, negotiating commitment, and nurturing accountability.
Key concept: Engagement Wheel
This model represents the four key drivers of engagement in knowledge work: Inspiration, Connection, Protection, and Challenge. Each quadrant represents a set of motivational needs that knowledge workers have. I argue that leaders must address all four quadrants to foster a highly engaged and productive team.
8. Reduce Waste #2: Information Friction
This chapter focuses on addressing the second waste of knowledge work: Information Friction, which arises from the difficulty of accessing and sharing information within an organization. I discuss the importance of creating a Single Point of Truth (SPoT) to ensure that all stakeholders have access to the same, up-to-date information. I also discuss the power of visualization as a means to reduce information friction by conveying complex ideas more efficiently and engagingly than traditional narration. The chapter concludes with an introduction to the Canvas View, a technique of presenting information visually on a single page. I argue that the Canvas View is a powerful tool for reducing information friction by forcing the author to focus on the most critical elements and eliminating unnecessary detail, making information easier to understand and share.
Key concept: Canvas View
This is a technique of presenting information visually on a single page, inspired by the Toyota A3 method. It emphasizes telling a concise and compelling story within a limited space, forcing the author to focus on the most critical elements and eliminating unnecessary detail. The Canvas View is a powerful tool for reducing information friction by making information easier to understand and share.
9. Reduce Waste #3: More-is-Better Thinking
This chapter focuses on the third waste of knowledge work: More-is-Better Thinking, which arises from the tendency to focus on effort rather than results. I argue that blindly investing effort without a clear path to success is wasteful and demotivating. To address this waste, I introduce the concepts of Action Plans, Test Tracks, and Bowlers as artifacts for measuring progress toward success. I then introduce the Success Map, a visual tool that combines these three artifacts to provide a comprehensive view of progress toward achieving a goal. The chapter concludes with a discussion of different perspectives of knowledge work, the ground view (focused on individual tasks), and the helicopter view (providing an aggregated view of multiple projects or initiatives).
Key concept: Success Map
This is a visual tool that combines the Action Plan, Test Track, and Bowler to provide a comprehensive view of progress toward success. It helps teams visualize the path to success and track their progress over time, reducing the waste of More-is-Better Thinking by providing clear goals and a means to measure progress toward those goals.
10. Reduce Waste #4: Inertia to Change
This chapter focuses on the fourth waste of knowledge work, Inertia to Change, which arises from the natural resistance people have to changing their behaviors and adopting new methods. I present the Change Model, a framework for understanding the typical stages people go through when experiencing change. I discuss the role of change agents in driving change within organizations and the importance of starting with small, achievable projects to build momentum and gain buy-in. I emphasize the need for leaders to balance challenge and support, providing opportunities for growth while also recognizing the anxieties that change can create. The chapter concludes with a discussion of the importance of recognizing and celebrating successes to reinforce positive change and build a culture of continuous improvement.
Key concept: Change Model
This model explains how people typically react to change, progressing through stages of resistance, exploration, and acceptance. I argue that understanding this model is crucial for leaders who want to drive change effectively within their organizations. By recognizing the natural resistance to change and providing support and encouragement, leaders can help their teams embrace new ways of working and thinking.
11. Reduce Waste #5: No-Win Contests
This chapter focuses on the fifth waste of knowledge work: No-Win Contests, which arise from situations where people are asked to do more than they can do well within the allotted time. I argue that oversubscription is a primary driver of No-Win Contests and introduce the concept of Ruthless Rationalization as a means to combat this waste. Ruthless Rationalization involves setting clear goals, honestly assessing team capacity, and making difficult decisions to decline or defer work that exceeds capacity. I discuss the importance of negotiating commitments with knowledge workers, rather than simply dictating tasks, to create ownership and accountability. The chapter concludes with a discussion of structured escalation as a means to empower knowledge workers to raise issues and seek support when they encounter roadblocks that prevent them from achieving success.
Key concept: Ruthless Rationalization: Never accept work that, when done well, exceeds team capacity.
This principle is the core of eliminating oversubscription and the No-Win Contests that come with it. It requires leaders to honestly assess the capacity of their teams and make difficult decisions about which work to accept and which to defer or decline. By embracing Ruthless Rationalization, organizations can create a more balanced workload, reduce multitasking, and improve on-time delivery, ultimately leading to higher quality work and increased employee engagement.
12. Reduce Waste #6: Inferior Problem Solving
This chapter focuses on the sixth waste of knowledge work, Inferior Problem Solving, which arises from the tendency to jump to conclusions and apply solutions before fully understanding the problem. I emphasize the importance of formal problem-solving methods to ensure a thorough and systematic approach to addressing complex issues. I present a step-by-step guide to formal problem solving, including defining the organizational need, crafting a clear problem statement, observing and analyzing the problem firsthand (See it Broken), identifying the root causes, developing countermeasures, and implementing those countermeasures with a Success Map. The chapter also discusses techniques for dealing with exceptionally complex problems, where the solution may involve a combination of technical and business decisions, requiring collaboration between domain experts and leadership teams.
Key concept: “See it Broken”
This principle emphasizes the importance of personally observing the problem firsthand. It’s the equivalent of going to Gemba in lean manufacturing, but expanded to knowledge work where the “place” of the problem may be more abstract. It demands those involved in problem solving go to the customer experiencing the problem, watch the engineer struggling with an inefficient approval process, or participate in project meetings that are failing to deliver. Only by understanding the problem firsthand, can the team apply their expertise to the right problem.
13. Reduce Waste #7: Solution Blindness
This chapter focuses on the seventh waste of knowledge work: Solution Blindness, which occurs when teams continue to invest in solutions that are no longer working, often due to changing circumstances or new information that comes to light. I argue that Solution Blindness is often driven by the sunk-cost fallacy: the tendency to continue investing in a failing course of action because we have already invested so much in it. To address this waste, I discuss the importance of the value proposition, a falsifiable hypothesis that quantifies the value a new product or service will offer to a customer. I also introduce the concept of the Minimal Viable Product (MVP) as a means to test the value proposition quickly and efficiently, gathering customer feedback early and iterating rapidly to create products and services that truly meet customer needs. The chapter concludes with a discussion of how to apply the Test Track to monitor customer response to MVPs and identify areas for improvement.
Key concept: Minimal Viable Product (MVP): The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.
This quote from Eric Ries captures the essence of the MVP approach, a core principle of the lean startup methodology. It emphasizes the importance of gathering customer feedback early and often, testing assumptions quickly, and iterating rapidly to create products and services that truly meet customer needs.
14. Reduce Waste #8: Hidden Errors
This chapter focuses on the eighth waste of knowledge work, Hidden Errors, which are mistakes in work product that escape detection and are passed on to the customer. I argue that knowledge work is inherently complex and that some level of errors is unavoidable. Therefore, rather than focusing on eliminating all errors, we should focus on building systems that are tolerant of a reasonable error rate. To achieve this, I present two complementary approaches: Stop-Fix alarms and mistake-proofing. Stop-Fix alarms are signals that alert the team to a serious error, prompting immediate action to contain and resolve the error. Mistake-proofing involves designing workflows that prevent certain errors from occurring or make them so obvious that they cannot be overlooked. The chapter concludes with a discussion of the importance of focusing on errors that occur frequently and have a significant impact on quality, as these will provide the greatest return on investment.
Key concept: Stop-Fix
Stop-Fix is the principle of designing workflows that stop as soon as a serious error is detected. It borrows from autonomation (Jidoka in Japanese), which was first implemented by Sakichi Toyoda in an automatic textile loom in the late 1800s. It’s the practice of defining the errors we will not tolerate and then not tolerating them. Stop-Fix alarms are the knowledge work equivalent of the “Andon cord” pulled by workers in Toyota factories to stop the production line when a defect is found.
15. Standardize workflow
This chapter delves into the concept of standard workflow and its application to knowledge work. I discuss how standard work creates a foundation for continuous improvement by providing a baseline for consistent execution and a platform for identifying and implementing improvements. I challenge common misconceptions about standard work, emphasizing that it doesn’t stifle creativity but rather frees up knowledge workers to focus their creative energy on the more valuable and engaging aspects of their work. I also discuss how standard work can help to improve organizational performance by reducing variation, increasing efficiency, and facilitating better decision-making. The chapter concludes with a discussion of how standard work can be applied at both the instance level (for individual tasks or projects) and the aggregate level (for managing a portfolio of projects or initiatives).
Key concept: Standard Work
Standard work is a foundational principle of lean thinking, but it’s often misunderstood. It’s not about creating rigid, inflexible procedures or turning people into robots. Rather, standard work is about identifying the best-known way to do a task today and using that as a baseline for continuous improvement. Standard work creates clarity, enables consistency, and empowers teams to experiment with new and better ways of working.
16. Workflow improvement cycle
This chapter focuses on establishing a structured workflow improvement cycle using the Knowledge Work Improvement Canvas (KWIC), a single-page visual tool for managing improvements. I present a case study of a poorly managed improvement cycle where the lack of clear goals, insufficient coordination, and ineffective communication lead to frustration and minimal results. I then contrast this with a well-managed improvement cycle, using the KWIC to guide the process. I highlight the importance of clear leadership guidance, focused problem statements, collaborative problem solving, and the use of a Success Map to track progress and ensure accountability. The chapter concludes with a discussion of the KWIC as a tool for simplification, engagement, and experimentation, enabling teams to continuously improve their workflows and deliver greater value.
Key concept: Knowledge Work Improvement Canvas (KWIC)
The KWIC is a single-page visual tool that helps teams manage a cycle of improvement. It provides a structured framework for defining the problem, identifying solutions, tracking progress, and measuring results. The KWIC is a valuable tool for driving continuous improvement in any knowledge work process.
17. Workflow—Checklists and expert rule sets
This chapter focuses on using checklists and expert rule sets to improve workflows and reduce waste. I discuss how checklists can help to prevent common errors by providing a concise and easily accessible list of key steps or considerations. I then delve into the concept of expert rule sets, which are more comprehensive than checklists and provide guidance for complex situations where rigid procedures are not possible. I emphasize that expert rule sets should be living documents, continuously updated as new knowledge is gained and lessons are learned. I argue that checklists and expert rule sets not only simplify workflows but also engage knowledge workers by empowering them to contribute to and improve upon the rules that govern their work. The chapter concludes with a discussion of the Knowledge Work Improvement Canvas (KWIC) as a tool for implementing and managing checklists and expert rule sets.
Key concept: Expert Rule Sets
Expert rule sets are living documents that capture the collective wisdom of an organization in a specific domain. They are more comprehensive than checklists, providing guidance for complex situations where step-by-step procedures are not feasible. Expert rule sets are continuously updated as new knowledge is gained and lessons are learned, ensuring that the organization’s most valuable tacit knowledge is preserved and shared.
18. Workflow—Problem Solve-Select
This chapter introduces the Problem Solve-Select workflow, a variation of formal problem solving designed for complex situations where the optimal solution may involve a combination of technical and business decisions. I argue that traditional problem-solving methods, which often rely on a single handoff between a leadership team and a technical team, are not well-suited for these types of problems. The Problem Solve-Select workflow emphasizes a more collaborative approach, where the two teams work together at multiple stages to define the problem, explore solutions, and make a decision. I introduce the concept of the solution menu, a short list of potential solutions with their associated pros, cons, and costs, as a tool to facilitate a dialogue between the two teams. The chapter concludes with a discussion of the Solve-Select Canvas as a visual tool for managing this collaborative problem-solving process.
Key concept: Solution Menu
This is a short list of potential solutions to a complex problem, presented with the pros, cons, and estimated cost of each option. The solution menu is a critical tool in the Problem Solve-Select workflow, as it facilitates a dialogue between the technical team (responsible for developing solutions) and the leadership team (responsible for choosing a solution) by providing a clear and concise comparison of alternatives.
19. Workflow—Visual management for initiatives and projects
This chapter focuses on using visual management to improve project and initiative management. I argue that traditional project management tools, like Gantt charts and lengthy action plans, are often ineffective for knowledge work due to their complexity and inflexibility. I present the Visual Action Plan, a visualization technique that uses a swim lane diagram to represent tasks as blocks on a timeline, allowing for greater flexibility and ease of updating compared to Gantt charts. The Visual Action Plan is used in conjunction with regular team stand-up meetings to monitor progress, identify delays, and make adjustments to the project plan as needed. The chapter concludes with a discussion of the Knowledge Work Improvement Canvas (KWIC) as a tool for deploying and managing visual management techniques for projects and initiatives.
Key concept: Visual Action Plan
This is a visualization technique that displays tasks as blocks on a timeline, using a swim lane diagram to represent different functions or individuals. It’s an effective alternative to the Gantt chart, particularly for knowledge work, as it allows for greater flexibility and is easier to update in the face of changing circumstances. The Visual Action Plan is used in conjunction with regular team stand-up meetings to monitor progress, identify delays, and make adjustments to the project plan as needed.
20. Workflow—Visual management with buffer
This chapter builds upon the previous chapter by introducing the concept of buffer management as a way to improve the effectiveness of visual management for projects and initiatives. I discuss the concepts of the student syndrome and Parkinson’s Law, which explain why traditional task estimations often lead to schedule overruns. I then present the fever chart, a visualization technique that shows buffer consumption over time, as a means to monitor project schedule performance and identify potential delays early. I argue that the fever chart, when used in conjunction with a Visual Action Plan and regular team stand-up meetings, creates a comprehensive and effective system for managing complex projects with buffer. The chapter concludes with a discussion of the portfolio snapshot fever chart, a helicopter view of multiple projects that allows organizational leaders to quickly identify projects that are at risk of falling behind schedule.
Key concept: Fever Chart
This is a visualization technique that shows buffer consumption over time. It’s a powerful tool for monitoring project schedule performance and identifying potential delays early. The Fever Chart is used in conjunction with a Visual Action Plan and regular team stand-up meetings to create a comprehensive system for managing complex projects with buffer.
21. Workflow—Kanban and Kamishibai: Just-In-Time Rationalization
This chapter focuses on the challenges of managing a multitude of small tasks, which are common in knowledge work but often overlooked in traditional project management systems. I discuss the waste created by an unrationalized workload and introduce the concept of Just-In-Time Rationalization as a means to address this waste. I then delve into two visual techniques for managing small tasks: Kanban boards and Kamishibai boards. Kanban boards are well-suited for irregular tasks, those that vary in size and timing, while Kamishibai boards are effective for managing regular tasks that occur at defined intervals. The chapter concludes with a discussion of the Knowledge Work Improvement Canvas (KWIC) as a tool for implementing Just-In-Time Rationalization and managing Kanban and Kamishibai boards.
Key concept: Ruthless Rationalization: Never accept work that, when done well, exceeds team capacity.
This principle, first introduced in Chapter 11, is essential to managing a rationalized workload for small tasks. It’s the foundation for using Kanban and Kamishibai boards effectively.
22. Workflow—Putting out “fires”
This chapter focuses on responding effectively to “fires” in knowledge work: those urgent, unexpected problems that demand immediate attention and often disrupt normal workflow. I discuss the waste created by poorly managed firefights and present the Ford Global Eight Disciplines (8D) process as a structured approach to problem solving for these types of situations. I introduce the 8D Canvas, a modified KWIC, as a tool for visualizing and managing the 8D process. The chapter concludes with a discussion of histograms and cause codes as a means to systematically track the recurrence of problems over time, identify trends, and uncover hidden root causes that might otherwise go unnoticed.
Key concept: 8D Canvas
This is a variation of the Knowledge Work Improvement Canvas (KWIC) adapted to address urgent, unexpected problems or what are commonly called “fires.” It separates out containment actions from root cause analysis and preventative measures. This canvas ensures that while the urgent problem is being addressed, the underlying causes are also addressed to prevent similar problems from occurring again.
23. Workflow—Visualizing revenue gaps
This chapter focuses on visualizing and closing revenue gaps. I argue that the need to close revenue gaps can generate significant waste, as teams may resort to short-term solutions like pushing existing orders or offering discounts instead of addressing the root causes of the gap. I present two visualization techniques for managing revenue gaps: the single waterfall chart and the double waterfall chart. The single waterfall chart shows how the planned revenue will be built from various standard measures, while the double waterfall chart differentiates between standard measures and countermeasures, providing a clearer picture of the impact of each on closing the revenue gap. The chapter concludes with a discussion of the Knowledge Work Improvement Canvas (KWIC) as a tool for managing the problem-solving process for revenue gaps.
Key concept: Waterfall Chart
The Waterfall Chart is a visualization tool that depicts the cumulative effect of sequentially introduced values. It’s particularly helpful for visualizing revenue gaps, as it clearly shows the difference between the planned revenue and the projected revenue, highlighting the contributions of different initiatives or activities to closing the gap.
24. Workflow—Leadership review of knowledge work
This chapter focuses on improving leadership reviews of knowledge work. I argue that leadership reviews can bring substantial value by identifying errors and omissions that might otherwise go unnoticed, but that these reviews must be conducted effectively to avoid wasting time and creating unnecessary friction. I discuss the importance of establishing clear requirements for work product before it is reviewed by leadership, including adherence to standardized workflow and peer review. I then delve into the concept of critical thinking as a key skill for leaders reviewing knowledge work, emphasizing the need to question assumptions, reason through logic, and seek out diversity of thought and collaboration. The chapter concludes with a discussion of how to apply the principles of Stop-Fix to leadership reviews, creating clear signals and escalation paths to ensure that issues are addressed quickly and effectively.
Key concept: Critical Thinking
Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication, as a guide to belief and action.
This definition of critical thinking highlights its multi-faceted nature and the importance of engaging in a rigorous and disciplined process to evaluate information and make sound judgments.
Essential Questions
1. What is the central argument of the book, and what is its core meaning?
The book’s central argument is that knowledge work, despite being complex and knowledge-intensive, is riddled with hidden waste that hinders productivity and leads to frustration. The core meaning lies in the idea that by adopting the principles of lean thinking – Simplify, Engage, and Experiment – knowledge organizations can unlock their true potential and achieve significant improvements in quality, efficiency, and employee engagement. The book uses real-world case studies, personal anecdotes, and practical tools and techniques to illustrate the effectiveness of lean thinking in diverse knowledge-intensive settings. The implications of this approach are far-reaching, as it challenges traditional notions of management and work organization, suggesting that even highly skilled individuals can benefit from a systematic approach to eliminating waste and improving workflows.
2. Why is knowledge work particularly prone to hidden waste?
Knowledge work is often plagued by hidden waste due to its complex and ambiguous nature. Opaque workflows, lack of standardized processes, and the difficulty in measuring value create fertile ground for waste to thrive. Additionally, the tendency to focus on effort rather than results, coupled with a reluctance to embrace change, further exacerbates the problem. These factors, combined with the inherent complexity of knowledge work, make it challenging to identify and eliminate waste using traditional management approaches.
3. What is the book’s proposed solution for reducing waste in knowledge work, and how does it address the unique challenges of this type of work?
The book advocates for a three-pronged approach to addressing waste in knowledge work: Simplify, Engage, and Experiment. ‘Simplify’ involves streamlining complex workflows, reducing unnecessary steps, and creating clear communication channels. ‘Engage’ focuses on addressing the motivational needs of knowledge workers, fostering collaboration, and empowering teams to take ownership of their work. ‘Experiment’ emphasizes an experimental mindset, constantly testing assumptions, measuring results, and iterating rapidly to identify and implement better solutions. This comprehensive approach tackles waste from multiple angles, addressing both the technical and human aspects of knowledge work.
4. How does the book emphasize the role of visualization in improving knowledge work, and what specific visual tools does it introduce?
The book emphasizes the importance of visualizing information to improve communication, understanding, and problem-solving. Visual tools like the Canvas View, Action Plans, Test Tracks, Bowlers, and Fever Charts provide a concise and engaging way to convey complex ideas and track progress, reducing information friction and enabling faster decision-making. The book provides detailed guidance on how to create and use these visual tools effectively, offering practical examples and case studies to illustrate their application in various knowledge work settings.
5. What role does leadership play in driving continuous improvement in knowledge work, and what specific advice does the book offer to leaders?
The book argues that leadership plays a crucial role in driving and sustaining continuous improvement in knowledge work. Leaders must embrace business humility, acknowledge the limits of their knowledge, and be open to learning from others. They must foster a culture of collaboration, transparency, and accountability, empowering their teams to identify and eliminate waste. The book provides specific advice for leaders on how to guide improvement cycles, manage expectations, and create a work environment where knowledge workers feel inspired, connected, protected, and challenged.
Key Takeaways
1. Knowledge work creates value in five key categories: Fit for Purpose, Profitable, On-Schedule, Innovative, and Protected and Compliant.
Knowledge work, unlike factory work, often produces value in intangible ways. By considering these five facets, knowledge workers can better understand how they contribute to the organization and align their efforts with customer needs and strategic goals.
Practical Application:
An AI product engineer leading a team developing a new machine learning algorithm could use the five facets of value to guide their work. They would ensure the algorithm is ‘fit for purpose’, meaning it solves the intended problem effectively. They would strive for ‘profitability’ by considering the computational cost and potential business value. They would ensure ‘on-schedule’ delivery by setting realistic deadlines and managing the project effectively. They would encourage ‘innovation’ by exploring novel approaches and pushing the boundaries of the technology. And they would ensure the algorithm is ‘protected and compliant’ by addressing ethical considerations and data privacy regulations.
2. Creating a ‘Single Point of Truth’ (SPoT) is essential for reducing information friction and improving efficiency in knowledge work.
Knowledge work often involves multiple stakeholders accessing and sharing information. Creating a single, reliable source of information reduces wasted time searching for data, clarifying conflicting information, and minimizes errors that arise from using outdated or inaccurate data.
Practical Application:
In a software development team, a ‘single point of truth’ for project documentation could be established using a wiki or a shared document repository. This centralized platform would ensure everyone has access to the same, up-to-date information, reducing time wasted searching for documents or clarifying conflicting information.
3. Visual management tools, such as Kanban and Kamishibai boards, are effective for rationalizing and managing small tasks, reducing waste, and improving workflow.
Managing a multitude of small tasks can be overwhelming and lead to oversubscription and multitasking. Visual management tools like Kanban boards provide a simple and effective way to prioritize tasks, track progress, limit work-in-progress, and ensure a smooth flow of work.
Practical Application:
An AI product manager using a Kanban board to manage feature development for a new AI-powered chatbot could visualize workflow, limit work-in-progress, and signal the need to pull in new work as capacity frees up. This would improve focus, reduce multitasking, and allow the team to deliver features more predictably.
4. Effective leadership is crucial for driving and sustaining continuous improvement in knowledge work. Leaders must empower, guide, and support their teams, while also embracing business humility and being open to learning from their team members.
Leaders play a critical role in fostering a culture of continuous improvement by empowering knowledge workers, providing guidance and support, and creating an environment where people feel safe to experiment and learn.
Practical Application:
A team lead could guide an AI engineer struggling with a challenging task by providing context, clarifying expectations, and ensuring the engineer has access to the necessary resources and support. The lead would also stay connected to the task, observing progress and offering guidance as needed to ensure success, while also resisting the temptation to micromanage or solve the problem for the engineer.
5. Stop-Fix alarms are essential for creating a culture of quality in knowledge work by providing a means to quickly identify and address critical errors before they escalate and cause greater damage.
Knowledge work often involves complex processes where errors can be costly and difficult to detect. Stop-Fix alarms provide a means to detect and address critical errors early, preventing them from propagating through the process and causing greater damage.
Practical Application:
An AI product team could apply the concept of Stop-Fix during the development of a new AI-powered fraud detection system. They would define critical errors – for example, a high false positive rate or a failure to detect known fraud patterns – and establish a clear process for stopping development and addressing the issue as soon as such an error is identified.
Suggested Deep Dive
Chapter: Chapter 9. Reduce Waste #3: More-is-Better Thinking
This chapter introduces the concepts of Action Plans, Test Tracks, and Bowlers as artifacts for measuring progress in knowledge work. These concepts are particularly relevant for AI product engineers as they provide a structured framework for managing complex projects, tracking progress towards goals, and ensuring accountability. Understanding these concepts can help AI product engineers deliver AI solutions more effectively.
Memorable Quotes
Chapter 1. 30% of what you think is wrong. 1
“Even a wise man probably is right seven times out of ten but must be wrong three times out of ten.”
Chapter 2. A Brilliant Insight. 19
“The brilliant insight of Toyota was there was so much hidden waste that reducing waste would transform the company.”
Chapter 4. The Lean Equation. 51
“The core idea is to maximize customer value while minimizing waste.”
Chapter 5. DIMINISH: Recognizing the 8 Wastes of Knowledge Work. 65
“Only through careful observation and goal orientation can waste be identified. The greatest waste is waste we don’t see.”
Chapter 6. Simplify, Engage, and Experiment. 77
“Everything should be made as simple as possible, but no simpler.”
Comparative Analysis
Improve shares common ground with other notable works in the Lean and continuous improvement space, such as “The Toyota Way” by Jeffrey Liker, “The Lean Startup” by Eric Ries, and “The Phoenix Project” by Gene Kim, Kevin Behr, and George Spafford. All these books emphasize the importance of eliminating waste, continuous improvement, and customer focus. However, “Improve” distinguishes itself by focusing specifically on knowledge work, providing a tailored approach for professionals and expert teams. It delves deeper into the nuances of knowledge work, addressing challenges like information friction, oversubscription, and the difficulty of measuring value. Unlike “The Lean Startup”, which focuses on rapid experimentation in product development, “Improve” provides a more comprehensive framework for improving workflows in any knowledge-intensive organization. While “The Phoenix Project” uses a fictional narrative to illustrate DevOps principles, “Improve” offers a direct, practical guide with real-world examples and actionable advice.
Reflection
“Improve: The Next Generation of Continuous Improvement for Knowledge Work” provides a compelling argument for applying lean thinking principles to the complex and often chaotic world of knowledge work. While the book’s emphasis on continuous improvement and waste reduction is well-founded, its applicability to all knowledge work domains may be debatable. Some areas of knowledge work, particularly those heavily reliant on creativity and innovation, may not benefit as much from rigid standardization and process optimization. Additionally, the book’s focus on quantitative measurement, while essential for tracking progress, may sometimes overshadow the importance of qualitative factors like employee morale and customer satisfaction. Despite these potential limitations, “Improve” offers a valuable framework for understanding and addressing the challenges of knowledge work. Its emphasis on visualization, collaboration, and structured problem-solving methods provides a practical roadmap for individuals and teams seeking to enhance their performance and deliver greater value. By challenging conventional assumptions about knowledge work and encouraging a culture of continuous improvement, the book has the potential to transform the way knowledge-intensive organizations operate and achieve their goals.
Flashcards
What is the Lean Equation?
Effort invested in any activity can be divided into two categories: value-creating activities and wasteful activities.
What are the 8 Wastes of Knowledge Work (DIMINISH)?
Discord, Information Friction, More-is-Better Thinking, Inertia to Change, No-Win Contest, Inferior Problem Solving, Solution Blindness, and Hidden Errors.
What is a Success Map?
A visual tool that combines the Action Plan, Test Track, and Bowler to provide a comprehensive view of progress toward success.
What is a Fever Chart?
A visualization technique that shows buffer consumption over time and helps monitor project schedule performance.
What is the Knowledge Work Improvement Canvas (KWIC)?
A visual tool that allows teams to manage a cycle of improvement by defining the problem, identifying solutions, tracking progress, and measuring results.
What is a Kanban board?
A visual management tool that helps to rationalize irregular tasks, promoting transparency and limiting work-in-progress.
What is a Kamishibai board?
A visual management tool for managing regular tasks that occur at defined intervals, such as project reviews.
What is the Ford 8D (Eight Disciplines) process?
A structured problem-solving process for addressing urgent, unexpected problems (fires) that emphasizes containment and root cause analysis.
What is business humility?
Acknowledging our own gaps and being open to learning from everyone around us.