The document discusses how to create a well-oiled machine by gaining perspective on processes and managing information and money as key resources. It argues that information is often misunderstood and poorly managed compared to money, despite being equally important. Treating information as an abstraction that manifests in various forms, rather than as technology alone, and designating someone responsible for its comprehensive oversight can help optimize processes and performance.
1. The Value of Stepping Back How to Get The Well-Oiled Machine You’ve Always Wanted 1/4/2010 1 (c) 2010 Michael P. Meier
2. You can get too close 1/4/2010 2 (c) 2010 Michael P. Meier
3. Or you can get too much distance 1/4/2010 3 (c) 2010 Michael P. Meier
4. We need perspective How do I fit in? Or this [thing/unit]? Or is the problem in the marketplace itself or our response to it? To the problem? To the solution? Or this [batch/lot/area/organization]? Is the problem this spot? 1/4/2010 4 (c) 2010 Michael P. Meier
5. My Well-Oiled Machine What does a machine do? What does your machine do? What if you need to do something else? Is your machine adaptable? What if demand increases suddenly? Is your machine expandable? What if quality becomes an issue? Is your machine consistently effective? 1/4/2010 5 (c) 2010 Michael P. Meier
6. A Machine Has an intended purpose Combines [many] simple but hidden process steps into one apparent process. Performs that one process repeatedly and with consistent results. Requires minimal to no intervention. When intervention is required, the internal processes are no longer hidden. Functions indefinitely with minimal maintenance. 1/4/2010 6 (c) 2010 Michael P. Meier
7. A Process One or more activities that may be considered as a whole. SIPOC Process requires input (from some source) Process produces output (delivered to a customer) Process Input Output Supplier Customer 1/4/2010 7 (c) 2010 Michael P. Meier
8. Processes and Machines What’s the difference between “a machine” and “my [well-oiled] machine”? Human parts Ability to learn and adapt Process become visible and critical Abstract inputs and outputs 1/4/2010 8 (c) 2010 Michael P. Meier
9. A Word About Abstraction It isn’t about being “real” Some of our most cherished things are abstraction Money—currency is a manifestation of money Figures on a balance sheet are a manifestation of money. Abstractions manifest as things that we can touch and collect and sort. We can only manage the manifestations if we understand the abstraction. 1/4/2010 9 (c) 2010 Michael P. Meier
10. Process Human processes (our well-oiled machine) require information (or data) as input and produce information as product. If the process must be done by humans It’s because the input must be interpreted in some way Or because the output must be customized in some way. 1/4/2010 10 (c) 2010 Michael P. Meier
11. A Business Is based on the availability of two resources Money Information Both are necessary Both require management Both are abstractions Neither is consistently well understood. 1/4/2010 11 (c) 2010 Michael P. Meier
12. Sand in the Gears Can destroy the effectiveness of a machine. How do we get sand in the gears of our [well-oiled] machine? When the availability of the required resources is uncertain or haphazard When the resources are incomplete or inadequate When the resources are poorly understood and lead to poor decisions within the process(es) 1/4/2010 12 (c) 2010 Michael P. Meier
13. The Bottom Line Who takes care of your processes? Who takes care of your people? Who takes care of your money? Who takes care of your information? 1/4/2010 13 (c) 2010 Michael P. Meier
14. Money and Information You know Money is complex and difficult to manage. You hire the best experts you can find—Accountants, Attorneys, experts on investments You believe that information is trivial and that “everyone knows” information. You entrust it to literally everyone in your machine. And your machine sputters and surges, falters and dies. 1/4/2010 14 (c) 2010 Michael P. Meier
15. Information There is no one who comprehends the full scope of the abstraction, Information. You need someone who is able to grasp the manifestations that are critical to you account for all of those manifestations and their uses audit them for consistency of meaning and quality contamination design mechanisms to put appropriate information in the hands of the people and processes that need it 1/4/2010 15 (c) 2010 Michael P. Meier
16. Comparison Your Information management efforts will be larger and more costly than your Money management efforts. You have way more Information than Money Information comes in infinite variety Money has been the focus for much longer—the methods and tools are stable The input channels for Information are much less controlled We have so much misunderstanding around Information (e.g., your technology infrastructure people are handling your information needs) 1/4/2010 16 (c) 2010 Michael P. Meier
17. Finally Information is NOT dependent on technology Though its storage and distribution may be Information is NOT Software/applications Databases Servers Data Models Architectures Though all may be components of your Information resource. 1/4/2010 17 (c) 2010 Michael P. Meier
18. Michael P. Meier, Master of Abstraction Learn the story behind the photo and why it is relevant to this discussion: Michael P. Meier dbaWhiteLake Data Management www.msdxtx.com mailto: mpmeier@hotmail.com 507.273.9742 1/4/2010 18 (c) 2010 Michael P. Meier