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What James Watt and the Steam Engine Teach You about Creativity and Invention

December 9, 2019 By Nagesh Belludi Leave a Comment


Necessity is the Mother of Invention

The arc of development of the technique to harness the properties of steam to power mechanical devices embodies the notion that “necessity is the mother of invention” (Latin: “necessitas ingenium dedit.”)

Towards the end of the 17th century, Britain faced the problem of pumping and draining water out of mine shafts. In response, the military engineer Thomas Savery (1650–1715) invented an “engine to raise water by fire” in 1698. However, the “Savery Pump” was limited in practical usage to 20–25 feet of suction. Savery’s rudimentary pressurized boiler was liable to explode, particularly under high-pressure steam (over 8 to 10 atmospheres.)

Independently, and later in partnership with Savery, blacksmith Thomas Newcomen (1664–1729) developed the more practical—and more successful—atmospheric-pressure piston engine in 1698. Newcomen’s engine solved the limitation of the Savery Pump by having atmospheric pressure push the cylinder’s piston down after the condensation of steam had created a vacuum in the cylinder. Therefore, the pressure of the steam did not limit the intensity of pressure.

For five decades, Newcomen’s engine was the most complex technological object of its time anywhere in the world.

Difficulties Compel People to Found Creative Solutions to Problems

Then came along the Scottish instrument maker James Watt (1736–1819.) At age 21, Watt opened a shop in 1757 at the Glasgow University to make quadrants, compasses, scales, and other mathematical instruments.

Watt was tasked with repairing a Newcomen Engine at the university for a lecture-demonstration. He initially had difficulty getting the Newcomen Engine to work because its parts were poorly constructed. When he finally had it running, he was surprised at its efficiency. However, the engine was constantly running out of coal because every cycle required the heating and the cooling of the cylinder, thus resulting in a large waste of energy.

In 1769, Watt devised a system whereby the cylinder and the condenser were separate, making it unnecessary to heat and cool the cylinder with each stroke. Watt’s invention of the separate-condenser steam engine (also called the “double-acting” steam engine) decreased fuel costs by 75 percent.

Watt’s “steam engine” was able to produce continuous rotary motion and expanded its use far beyond pumping water. Continuous rotary motion sparked the transition from hand-production methods to machine-power and became the driving force of the Industrial Revolution. Playwright George Bernard Shaw even declared in Man and Superman (1903,) “those who admire modern civilization usually identify it with the steam engine.”

The steam engine continued to power industry and transportation during much of the 19th century and early 20th century, at the same time as engineers developed the internal-combustion engine. Towards the end of the 19th century, with the invention of the first practical steam turbine by English engineer Charles Parsons (1854–1931,) turbines started replacing reciprocating steam engines in power stations.

Reference: Richard L. Hills’s Power from Steam: A History of the Stationary Steam Engine (1989.)

Wondering what to read next?

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  2. Overcoming Personal Constraints is a Key to Success
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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Problem Solving, Scientists, Thought Process

Lessons from the World’s Worst Aviation Disaster // Book Summary of ‘The Collision on Tenerife’

November 5, 2019 By Nagesh Belludi 1 Comment

Jon Ziomek’s nonfiction history book Collision on Tenerife (2018) is the result of years of analysis into the world’s worst aviation disaster on Tenerife Island in the Canary Islands of Spain.

Distinct Small Errors Can Become Linked and Amplified into a Big Tragedy

On 27-March-1977, two fully loaded Boeing 747 passenger jets operated by Pan American World Airways (Pan Am) and KLM Royal Dutch Airlines collided on the runway, killing 583 passengers and crew on the two airplanes. Only 61 survived—all from the Pan Am jet, including its pilot.

These two flights, and a few others, were diverted to Tenerife after a bomb went off at the Gran Canaria Airport in Las Palmas, their original destination. Tenerife was not a major airport—it had a single runway, and taxi and parking space were limited. After the Las Palmas airport reopened, flights were cleared for takeoff from Tenerife, but the fog rolled in over Tenerife reducing visibility to less than 300 feet. Several airplanes that had been diverted to Tenerife had blocked the taxiway and the parking ramp. Therefore, the KLM and Pan Am jets taxied down the single runway in preparation for takeoff, the Pan Am behind the KLM.

At one end of the runway, the KLM jet turned 180 degrees into position for takeoff. In the meantime, the Pan Am jet was still taxiing on the runway, having missed its taxiway turnoff in the fog. The KLM pilot jumped the gun and started his take-off roll before he got clearance from traffic control.

When the pilots of the two jets caught sight of each other’s airplanes through the fog, it was too late for the Pan Am jet to clear out of the runway into the grass and for KLM jet to abort the takeoff. The KLM pilot lifted his airplane off the runway prematurely, but could not avoid barreling into the Pan Am’s fuselage at 240 kmph. Both the jets exploded into flames.

The accident was blamed on miscommunication—breakdown of coordinated action, vague language from the control tower, the KLM pilot’s impatience to takeoff without clearance, and the distorted cross-talk of the KLM and Pan Am pilots and the controllers on a common radio channel.

Breakdown of Coordination Under Stress

Sweeping changes were made to international airline regulations following the accident: cockpit procedures were changed, standard phrases were introduced, and English was emphasized as a common working language.

'Collision on Tenerife' by Jon Ziomek (ISBN 1682617734) In Collision on Tenerife, Jon Ziomek, a journalism professor at Northwestern University, gives a well-written, detailed account of all the mistakes leading up to the crash and its aftermath.

The surviving passengers’ first- and second-hand accounts recall the horror of those passengers on the right side of the Pan Am jet who saw the lights of the speeding KLM 747, just as the Pan Am pilot was hastily turning his airplane onto the grass to avoid the collision.

Ziomek describes how passengers escaped. Some had to make the difficult choice of leaving loved ones or friends and strangers behind.

Dorothy Kelly … then spotted Captain Grubbs lying near the fuselage. Badly burned and shaken by his jump from the plane, he could not move. “What have I done to these people?” he yelled, pounding the ground in anguish. Kelly grabbed him under his shoulders and urged “Crawl, Captain, crawl!”

Recommendation: Read Jon Ziomek’s Collision on Tenerife

Some of the bewildering details make for difficult reading—especially the psychological effects (post-traumatic stress syndrome) on the surviving passengers. But Jon Ziomek’s Collision on Tenerife is important reading, providing a comprehensive picture of the extensive coordination required in aviation, the importance of safety and protocols, and how some humans can freeze in shock while others spring into action.

The key takeaway is the recognition of how small errors and problems (an “error chain”) can quickly become linked and amplified into disastrous outcomes.

Wondering what to read next?

  1. “Fly the Aircraft First”
  2. Under Pressure, The Narrowing Cognitive Map: Lessons from the Tragedy of Singapore Airlines Flight 6
  3. How Contributing Factors Stack Up and Accidents Unfold: A Case Study of the 2024 Delta A350 & CRJ-900 Collision
  4. What Airline Disasters Teach About Cognitive Impairment and Decision-Making Under Stress
  5. How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235

Filed Under: Business Stories, Effective Communication, Sharpening Your Skills Tagged With: Anxiety, Assertiveness, Aviation, Biases, Books for Impact, Conflict, Decision-Making, Mindfulness, Problem Solving, Stress, Thinking Tools, Worry

How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235

October 1, 2019 By Nagesh Belludi Leave a Comment

As I’ve examined previously, airline disasters are particularly instructive on the subjects of cognitive impairment and decision-making under stress.

Consider the case of TransAsia Airways Flight 235 that crashed in 2015 soon after takeoff from an airport in Taipei, Taiwan. Accident investigations revealed that the pilots of the ATR 72-600 turboprop erroneously switched off the plane’s working engine after the other lost power. Here’s a rundown of what happened:

  1. About one minute after takeoff, at 1,300 feet, engine #2 had an uncommanded autofeather failure. This is a routine engine failure—the aircraft is designed to be able to be flown on one engine.
  2. The Pilot Flying misdiagnosed the problem, and assumed that the still-functional engine #1 had failed. He retarded power on engine #1 and it promptly shut down.
  3. With power lost on both the engines, the pilots did not react to the stall warnings in a timely and effective manner. The Pilot Flying acknowledged his error, “wow, pulled back the wrong side throttle.”
  4. The aircraft continued its descent. The pilots rushed to restart engine #1, but the remaining altitude was not adequate enough to recover the aircraft.
  5. In a state of panic, the Pilot Flying clasped the flight controls and steered (see this video) the aircraft perilously to avoid apartment blocks and commercial buildings before clipping a bridge and crashing into a river.

A High Level of Stress Can Diminish Your Problem-solving Capabilities

Thrown into disarray after a routine engine failure, the pilots of TransAsia flight 235 did not perform their airline’s abnormal and emergency procedures to identify the failure and implement the required corrective actions. Their ineffective coordination, communication, and error management compromised the safety of the flight.

The combination of sudden threat and extreme time pressure to avert a danger fosters a state of panic, in which decision-makers are inclined to commit themselves impulsively to courses of action that they will soon come to regret.

Idea for Impact: To combat cognitive impairment under stress, use checklists and standard operating procedures, as well as increased training on situational awareness, crisis communication, and emergency management.

Wondering what to read next?

  1. What Airline Disasters Teach About Cognitive Impairment and Decision-Making Under Stress
  2. Lessons from the World’s Worst Aviation Disaster // Book Summary of ‘The Collision on Tenerife’
  3. Under Pressure, The Narrowing Cognitive Map: Lessons from the Tragedy of Singapore Airlines Flight 6
  4. “Fly the Aircraft First”
  5. The “Ashtray in the Sky” Mental Model: Idiot-Proofing by Design

Filed Under: Business Stories, Leadership, Sharpening Your Skills Tagged With: Anxiety, Aviation, Biases, Decision-Making, Emotions, Mental Models, Mindfulness, Problem Solving, Risk, Stress, Thought Process, Worry

Small Steps, Big Revolutions: The Kaizen Way // Summary of Robert Maurer’s ‘One Small Step Can Change Your Life’

June 18, 2019 By Nagesh Belludi Leave a Comment

Most intentions for change seek a transformative change—something significant to be achieved once and for all, in a short period. “Big, bold steps” is the mantra of many a self-help book or motivational guru du jour.

Real change, however, takes time and is difficult. You become overwhelmed with the magnitude of the effort and persistence required to lose twenty pounds, save up for retirement, change jobs, or stabilize a sinking relationship.

As with most New Year resolutions, you’ll meet with success temporarily, only to find yourself slipping back into our old ways as soon as the initial burst of enthusiasm fades out.

Gradual Improvement, Not Radical Change

UCLA clinical psychologist Dr. Robert Maurer’s One Small Step Can Change Your Life: The Kaizen Way (2004) conceives transformative change as an endless, continuous process of gradual improvements.

'One Small Step Can Change Your Life: The Kaizen Way' by Robert Maurer (ISBN 0761129235) By breaking daunting tasks into absurdly little steps, you feel little resistance to change.

To initiate a worthwhile exercise regimen, for example, Maurer suggests that you start exercising by marching in front of the television for one minute for a day or two. Then, little by little, ask, “How could I incorporate a few more minutes of exercise into my daily routine?” Such modest questions help you seek the next proverbial baby step and “allow the brain to focus on problem-solving and action.”

To tidy up your home, pick an area of your home, set a timer for five minutes, and tidy up. Stop when the timer goes off. [This is similar to my ’10-Minute Dash’ technique to overcome procrastination.]

One small step leads to the next, which leads to one more, and so on—finally leading you to your goal of transformative change.

“Little Steps Add Up to Brilliant Acceleration”

Maurer relates this approach to Kaizen, the famed Japanese system of obsessive tinkering and continuous, incremental improvement. This idea is actually American in origin—it was brought over by American efficiency and quality experts such as W. Edwards Deming who were helping Japan rebuild its industrial strength after World War II.

Kaizen involves making continual, small adjustments to production techniques to not only improve speed and quality, but also save resources. That is to say, it is a relentless pursuit of perfection by breaking it down into incremental improvements.

At companies that have embraced Kaizen and other Total Quality Management (TQM) approaches, employees come to work every day determined to become a little better at whatever it is they are doing than they were the day before. Katsuaki Watanabe of Toyota, the poster-boy of TQM, has acknowledged,

There is no genius in our company. We just do whatever we believe is right, trying every day to improve every little bit and piece. But when 70 years of very small improvements accumulate, they become a revolution.

Small Kaizen questions help you determine the next baby step and allow the brain to focus on problem-solving and action

“Little and often” empowers you to “tiptoe past fear”—your brain stops putting up resistance because it is tricked into thinking that you’re embarking only on something minuscule.

All changes are scary, even positive ones. Attempts to reach goals through radical or revolutionary means often fail because they heighten fear. But the small steps of Kaizen disarm the brain’s fear response, stimulating rational thought and creative play.

You can thus triumph over fear and the subsequent inaction that fear causes.

Small steps rewire your nervous system, create new connections between neurons so that the brain enthusiastically takes over the process of change and you progress rapidly toward your goal.

Minimalist, steady, incremental change helps your brain overcome the fear that impedes success and creativity

To avoid failure at keeping your resolutions despite your best intentions, don’t push yourself to somehow become different rapidly. Instead, pledge to achieve positive, enduring life changes one powerful baby step at a time.

Other prominent insights in Maurer’s One Small Step Can Change Your Life:

  • “Small actions satisfy your brain’s need to do something and soothe its distress.”
  • “If you are trying to reach a specific goal, ask yourself every day: What is one small step I could take toward reaching my goal?”
  • “Small actions are at the heart of Kaizen. By taking steps so tiny that they seem trivial or even laughable, you’ll sail calmly past obstacles that have defeated you before. Slowly—but painlessly!—you’ll cultivate an appetite for continued success and lay down a permanent new route to change.”
  • If you hit a wall of resistance, “don’t give up! Instead, try scaling back the size of your steps. Remember that your goal is to bypass fear—and to make the steps so small that you can barely notice an effort.”
  • When we face crises, “the only concrete steps available are small ones. When our lives are in great distress, even while we are feeling out of control or in emotional pain we can try to locate the smaller problems within the larger disaster … to help move us slowly in the direction of a solution. But if we are blind to the small, manageable problems, we are more likely to slip into despair.”

Recommendation: Speed-read One Small Step Can Change Your Life: The Kaizen Way. It will help if you or a loved one is stuck in the rut of goal failure.

Take really small steps towards every significant change you want to make. The cumulative benefits of small improvements do have the power to produce large, transformative change. Let Kaizen be a routine that is never done.

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Filed Under: Living the Good Life, Mental Models, Sharpening Your Skills Tagged With: Change Management, Coaching, Discipline, Getting Things Done, Goals, Life Plan, Lifehacks, Mental Models, Perfectionism, Problem Solving, Procrastination, Toyota

Four Ideas for Business Improvement Ideas

November 1, 2018 By Nagesh Belludi Leave a Comment

  1. Four Ideas for Business Improvement Ideas Seek fresh eyes. Ask new employees and interns to make a note of every question they have about how things get done in your organization. If anything—reports, approvals, meetings, reviews—doesn’t seem sensible, let them record those inefficiencies. After a few weeks, when they’ve become familiar with the organization and its workflow, have them reassess and report their observations. The best improvement ideas come from people who aren’t stuck in the established ways.
  2. Notice something? Fix it quickly or delegate. Never walk absentmindedly by something that could be improved. A cluttered instruments cabinet in a warehouse? A loose tile in a walkway? A broken link on your customer service website? Don’t take inconveniences and unpleasant situations for granted.
  3. Explore the outsider’s perspective. Notice how trivial stuff can really frustrate you when you’re standing in line at the Bureau of Motor Vehicles or dealing with a slow bureaucracy? While running errands, do others’ rules, regulations, and procedures annoy you? Bump into something that doesn’t have to be laborious, arduous, expensive, or annoying, but is? Examine if your business imposes any of those inconveniences on your customers.
  4. Make it easy for customers to complain. Seek customer feedback in such a way that it encourages people to share their negative experiences. As I’ve illuminated before, many innovative ideas have their roots in prudent attention to and empathy with customers’ experiences.

Idea for Impact: Problem-finding is one of the most significant—and overlooked—parts of innovation. Learn to pay attention to the subtle clues to opportunities all around.

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  5. Avoid Defining the Problem Based on a Proposed Solution

Filed Under: Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Critical Thinking, Mental Models, Problem Solving, Skills for Success, Thinking Tools, Thought Process, Winning on the Job

Investing is Saying “No” 99% of the Time

September 22, 2018 By Nagesh Belludi Leave a Comment

As an investor in high-quality public companies and startup ventures, I spend very little time each on a lot of investment opportunities and a lot of time each on a very few opportunities. Over seven-tenths of the returns I’ve ever produced have been with just four companies.

I try to learn of as many ideas and opportunities as possible, especially in companies led by first-class entrepreneurs and businesspeople. From time to time, I spend hours at the community library flicking through one-page summaries in the Value Line Investment Survey, arguably the best investment product available on the market.

Exposing myself to many opportunities makes me a better investor. Even if my stock-filtering method quickly guides me to say “no” commonly, my goal is to find a kernel of usable information to add to my “mental attic.” I can’t predict when something might come in handy to help make sound investment choices in the future. As the great investor Charlie Munger said at the 1996 Wesco Financial annual meeting,

Our experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to act promptly at scale, in doing some simple and logical thing, will often dramatically improve the financial results of that lifetime.

A few major opportunities, clearly recognizable as such, will usually come to one who continuously searches and waits, with a curious mind that loves diagnosis involving multiple variables. And then, all that is required is a willingness to bet heavily when the odds are extremely favorable, using resources available as a result of prudence and patience in the past.

Wondering what to read next?

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  3. The Fermi Rule: Better be Approximately Right than Precisely Wrong
  4. What Airline Disasters Teach About Cognitive Impairment and Decision-Making Under Stress
  5. How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235

Filed Under: Personal Finance, Sharpening Your Skills Tagged With: Decision-Making, Problem Solving, Thought Process

Disproven Hypotheses Are Useful Too

June 21, 2018 By Nagesh Belludi Leave a Comment

Hypotheses are conjectures—often merely proposals or intuitions—about what may constitute facts.

A specific hypothesis can be tested for its adequacy and proved correct or incorrect using the scientific method. Sometimes, a hypothesis is accepted for the time being, until further evidence suggests an amendment.

It does not matter if a certain hypothesis is proven incorrect because, in itself, the falsification of a hypothesis can offer precious insight about the “what is not” to enhance the “what is.”

Hypotheses are the bedrock of scholarship. Scientific understanding accrues when many interrelated and tested hypotheses are used to develop theories, and rethink and restructure our knowledge.

Wondering what to read next?

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  5. How to Solve a Problem By Standing It on Its Head

Filed Under: Mental Models Tagged With: Conviction, Creativity, Critical Thinking, Decision-Making, Discipline, Philosophy, Problem Solving, Thinking Tools, Thought Process

What Airline Disasters Teach About Cognitive Impairment and Decision-Making Under Stress

February 27, 2018 By Nagesh Belludi Leave a Comment

Airline disasters often make great case studies on how a series of insignificant errors can build up into catastrophes.

As the following two case studies will illuminate, unanticipated pressures can force your mind to quickly shift to a panic-like state. As it searches frenetically for a way out of a problem, your mind can disrupt your ability to take account of all accessible evidence and attend rationally to the situation in its entirety.

Stress Can Blind You and Limit Your Ability to See the Bigger Picture: A Case Study on Eastern Airlines Flight 401

Eastern Airlines Flight 401 crashed on December 29, 1972, killing 101 people.

As Flight 401 began its approach into the Miami International Airport, first officer Albert Stockstill lowered the landing gear. But the landing gear indicator, a green light to verify that the nose gear was correctly locked in the “down” position, did not switch on. (This was later verified to be caused by a burned-out light bulb. Regardless of the indicator, the landing gear could have been manually lowered and verified.)

The flight deck got thrown into a disarray. The flight’s captain, Bob Loft, sent flight engineer Don Repo to the avionics bay underneath the flight deck to verify through a small porthole if the landing gear was actually down. Loft simultaneously directed Stockstill to put the aircraft on autopilot. Then, when Loft unintentionally leaned against the aircraft’s yoke to speak to Repo, the autopilot mistakably switched to a wrong setting that did not hold the aircraft’s altitude.

The aircraft began to descend so gradually that it could not be perceived by the crew. With the flight engineer down in the avionics bay, the captain and the first officer were so preoccupied with the malfunction of the landing gear indicator that they failed to pay attention to the altitude-warning signal from the engineer’s instrument panel.

Additionally, given that the aircraft was flying over the dark terrain of the Everglades in nighttime, no ground lights or other visual cues signaled that the aircraft was gradually descending. When Stockstill eventually became aware of the aircraft’s altitude, it was too late to recover the aircraft from crashing.

In summary, the cause of the Flight 401’s crash was not the nose landing gear, but the crew’s negligence and inattention to a bigger problem triggered by a false alarm.

Stress Can Blind You into Focusing Just on What You Think is Happening: A Case Study on United Airlines Flight 173

United Airlines Flight 173 crashed on December 28, 1978, in comparable circumstances.

When Flight 173’s pilots lowered the landing gear upon approach to the Portland International Airport, the aircraft experienced an abnormal vibration and yaw motion. In addition, the pilots observed that an indicator light did not show that the landing gear was lowered successfully. In reality, the landing gear was down and locked in position.

With the intention of troubleshooting the landing gear problem, the pilots entered a holding pattern. For the next hour, they tried to diagnose the landing gear glitch and prepare for a probable emergency landing. During this time, however, none of the pilots monitored the fuel levels.

When the landing gear problem was first suspected, the aircraft had abundant reserve fuel—even for a diversion or other contingencies. But, all through the hour-long holding procedure, the landing gear was down and the flaps were set to 15 degrees in anticipation of a landing. This significantly increased the aircraft’s fuel burn rate. With fuel exhaustion to all four engines, the aircraft crashed.

To sum up, Flight 173’s crew got preoccupied with the landing gear’s malfunction and harried preparations for an emergency landing. As a result of their inattention, the pilots failed to keep tabs on the fuel state and crashed the aircraft.

Stress Can Derail Your Train of Thought

Under pressure, your mind will digress from its rational model of thinking.

The emotional excitement from fear, anxiety, time-pressure, and stress can lead to a phenomenon known as “narrowing of the cognitive map.” This tunnel vision can restrict your field of mindful attention and impair your ability for adequate discernment.

Situational close-mindedness can constrict your across-the-board awareness of the situation and force you overlook alternative lines of thought.

Idea for Impact: To combat cognitive impairment under stress, use checklists and standard operating procedures, as well as increased training on situational awareness, crisis communication, and emergency management, as the aviation industry did in response to the aforementioned incidents.

Wondering what to read next?

  1. How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235
  2. Lessons from the World’s Worst Aviation Disaster // Book Summary of ‘The Collision on Tenerife’
  3. Lessons from the Princeton Seminary Experiment: People in a Rush are Less Likely to Help Others (and Themselves)
  4. “Fly the Aircraft First”
  5. Under Pressure, The Narrowing Cognitive Map: Lessons from the Tragedy of Singapore Airlines Flight 6

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Anxiety, Aviation, Decision-Making, Emotions, Mindfulness, Problem Solving, Risk, Stress, Thinking Tools, Thought Process, Worry

Learning from the World’s Best Learning Organization // Book Summary of ‘The Toyota Way’

November 27, 2017 By Nagesh Belludi Leave a Comment

Toyota is the World’s Most Benchmarked Company, and for Good Reason

Toyota’s cars are reputed for their reliability, initial quality, and long-term durability. It is the pioneer of modern, mass-production techniques and a paragon of operational excellence. Even if its reputation has taken a beating in the last few years because of the uncontrolled acceleration crisis and major product recalls, Toyota’s long-term standing as the epitome of quality production is undeniable.

Toyota measures and improves everything—even the noise that doors make when they open and close. As cars roll off assembly lines, they go through a final inspection station staffed by astute visual and tactile inspectors. If they spot even a simple paint defect, they don’t just quietly fix the problem merely by touching up the paint to satisfy the customer or their plant manager. They seek out systemic deficiencies that may have contributed to the problem, and may hint at deeper troubles with their processes.

World-Class Processes, World-Class Quality

'The Toyota Way' by Jeffrey Liker (ISBN 0071392319) As Jeffrey K. Liker explains in his excellent The Toyota Way, the genius of Toyota lies in the Japanese expression ‘jojo‘: it has gradually and steadily institutionalized common-sense principles for waste reduction (‘muda, mura, muri‘) and continuous improvement (‘kaizen.’) Liker, a professor of industrial engineering at the University of Michigan (my alma mater) has studied the Toyota culture for decades and has written six other books about learning from Toyota.

Liker establishes the context of The Toyota Way with a concise history of Toyota Motor (and the original Toyoda Textile Machinery business) and the tone set by Toyota founders Sakichi and Kiichiro Toyoda. Quality pioneers such as Taiichi Ohno, W. Edwards Deming, and Joseph Juran instituted groundbreaking philosophies that shifted Toyota’s organizational attention from managing resource efficiencies in isolation to managing the flow of value generated by the Toyota Production System (TPS.)

“No Problem is the Problem:” How Toyota Continuously Improves the Way it Works

Liker devotes a bulk of his book to the distinct elements of Toyota’s foundational principles: continuous flow, minimal inventory, avoidance of overproduction, balanced workload, standardized tasks, visual control, etc. He drills down to the underlying principles and behaviors of the Toyota culture: respect people, observe problems at the source, decide slowly but implement swiftly, and practice relentless appraisals of the status quo. Liker states, “Toyota’s success derives from balancing the role of people in an organizational culture that expects and values their continuous improvements, with a technical system focused on high-value-added flow.”

Companies that have tried to emulate Toyota have struggled not with understanding its management tools but with putting into practice the mindset and the organizational discipline that permeates everything Toyota does. “Understanding Toyota’s success and quality improvement systems does not automatically mean you can transform a company with a different culture and circumstances.”

Book Recommendation: Read The Toyota Way. As Liker observes, “Toyota is process oriented and consciously and deliberately invests long term in systems of people, technology and processes that work together to achieve high customer value.” The Toyota Way is comprehensive and well organized, if tedious in certain parts. It can impart many practical pointers to help improve the operational efficiency of one’s organization. Peruse it.

Postscript: I’ve taken many tours of Toyota’s Georgetown, Kentucky, factories and a few associated suppliers—once as part of a lean manufacturing study tour organized by Liker’s research group and other times privately. I strongly recommend them for observing Toyota’s matchless culture in action on the production floor. I also recommend the Toyota Commemorative Museum in Nagoya for a history of Toyoda Textile Machinery and Toyota Motor and their management principles.

Wondering what to read next?

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  3. Innovation: Be as Eager to Stop Zombie Projects as You Are to Begin the New
  4. How to … Declutter Your Organizational Ship
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Filed Under: Business Stories, Leading Teams, Mental Models Tagged With: Change Management, Creativity, Decision-Making, Leadership, Leadership Reading, Learning, Mental Models, Problem Solving, Quality, Simple Living, Toyota, Training

How to Guard Against Anything You May Inadvertently Overlook

October 23, 2017 By Nagesh Belludi Leave a Comment

The World is More Inundated with Uncertainties and Errors Than Ever Before

Checklists can help you learn about prospective oversights and mistakes, recognize them in context, and sharpen your decisions.

I am a big fan of Harvard surgeon and columnist Atul Gawande’s The Checklist Manifesto (2009.) His bestseller is an engaging reminder of how the world has become so complex.

The use of the humble checklist can help you manage the myriad of complexities that underlie most contemporary professional (and personal) undertakings—where what you must do is too complex to carry out reliably from memory alone. Checklists “provide a kind of a cognitive net. They catch mental flaws inherent in all of us—flaws of memory and attention and thoroughness.”

'The Checklist Manifesto: How to Get Things Right' by Atul Gawande (ISBN 0312430000) Gawande begins The Checklist Manifesto with an examination of the characteristics of errors from ignorance (mistakes you make because you don’t know enough—“much of the world and universe is—and will remain—outside our understanding and control”), and errors of ineptitude (mistakes you make because you don’t apply correctly what you know.) Most human and organizational failures involve the latter.

The philosophy is that you push the power of decision making out to the periphery and away from the center. You give people the room to adapt, based on their experience and expertise. All you ask is that they talk to one another and take responsibility. That is what works.

The surgery room, Gawande’s own profession, is the principal setting for many of the book’s illustrative examples of how the introduction of checklists dramatically reduced the rate of complications from surgery. He also provides handy stories from other realms of human endeavor—aviation, structural engineering, and Wall Street-investing.

Getting Things Right, Every Time

Checklists are particularly valuable in situations where the stakes are high enough, but your impulsive thought process could lead to suboptimal decisions.

'Think Twice: Harnessing the Power of Counterintuition' by Michael J. Mauboussin (ISBN 1422187381) The benefits of checklists also feature prominently in the thought-provoking Think Twice: Harnessing the Power of Counterintuition (2012.) The author, Credit Suisse Investment analyst and polymath Michael J. Mauboussin, argues that checklists are more effective in certain domains than in others:

A checklist’s applicability is largely a function of a domain’s stability. In stable environments, where cause and effect is pretty clear and things don’t change much, checklists are great. But in rapidly changing environments that are heavily circumstantial, creating a checklist is a lot more difficult. In those environments, checklists can help with certain aspects of the decision. For instance, an investor evaluating a stock may use a checklist to make sure that she builds her financial model properly.

A good checklist balances two opposing objectives. It should be general enough to allow for varying conditions, yet specific enough to guide action. Finding this balance means a checklist should not be too long; ideally, you should be able to fit it on one or two pages.

If you have yet to create a checklist, try it and see which issues surface. Concentrate on steps or procedures, and ask where decisions have gone off track before. And recognize that errors are often the result of neglecting a step, not from executing the other steps poorly.

In addition to creating checklists that are specific enough to guide action but general enough to handle changing circumstances, Mauboussin recommends keeping a journal to gather feedback from past decisions and performing “premortems” by envisioning that a imminent decision has already been proven wrong, and then identifying probable reasons for the failure.

No Matter How Proficient You May Be, Well-designed Checklists Can Immeasurably Improve the Outcomes

The notion of making and using checklists is so plainly obvious that it seems impracticable that they could have so vast an effect.

Investor Charlie Munger, the well-respected beacon of wisdom and multi-disciplinary thinking, has said, “No wise pilot, no matter how great his talent and experience, fails to use his checklist.” And, “I’m a great believer in solving hard problems by using a checklist. You need to get all the likely and unlikely answers before you; otherwise it’s easy to miss something important.”

Idea for Impact: Checklists can prevent many things that could go wrong in the hands of human beings, given our many well-documented biases and foibles. Well-designed checklists not only make sure that all the can-be-relied upon elements are in place in complex decision-making, but also provide for flexibility and room for ad hoc judgment.

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Biases, Books for Impact, Creativity, Decision-Making, Problem Solving, Risk, Thinking Tools

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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