Does that increase fluctuation affect anybody else? What about the HR people? Yeah. They're eight and if
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Does that increase fluctuation affect anybody else? What about the HR people? Yeah. They're eight and if I end up having to pay over time, if he's not building warehouses to try to flatten things out. You know, what about people with low hum? Well, if they chose to, to behave in that way, we would have layoffs and Lynn, quick efforts hiring people back m and so on and so forth. So what about the people that manage cash flow? Say they've got a bigger problem to deal with. So, so the effects of having that narrow objective, making sales della up and using the wrong kind of method to try to do that combined together to create situation where they're not selling anymore and they're making less money on what they say. So sales as well. Oh, well, shall we go on? My, my big pronouncement about This is establishing narrow functional objectives without consideration of the potential effects on other parts of the organization, can sap, optimize the organization as a whole. So next slide, this IS Meyer and try buses. Perverse that a principle. If you try to improve the performance of a system of papal machines and procedures by setting numerical goals for the improvement of individual parts of the system. The system will defeat your efforts and you will pay a price where you least expect it. So lack of consideration, odds, the interactions and the interdependencies amongst the components of a system. Whatever it might be, can lead to sub-optimization, to disappointment and too ugly surprises. So I worked with a large company for quite a while. And one of the things that the executive group that worked with did was to go to know me. Have you sum up you know what? No, me was New United Motor Manufacturing Inc, which was the joint venture between Toyota and General Motors in Fremont, California. And we went out, the executive group went out to visit knew me. And at 1 in the tour, the person who was taking us around this, there were engines there, an automobile ancients, and the person who was taking us around explaining that when they wanted to reduce the overall cost of purchase parts to go into an engine, what they would do was identify the critical components. And they would not necessarily try to reduce purchase price for those. In fact, I would probably leave them alone. And they would identify things that were not critical. And I would try perhaps to reduce purchase price for those. Now there was this purchasing manager in that group that I was walking around with. And he issued this edict The next week. Reduce purchase price of each and every part in the product back 10%. Now, I guess you might, if you believe that democracy is everything AQL, maybe he thought he was being democratic. But that's just absolutely idiotic. Wouldn't you agree? I didn't say I would I would sense or my remarks here. So I hope you can tolerate some of these comments. I have to say he's trying to optimize the parts, not the whole. Of course he didn't understand that this guy. So now, how many of you have heard of emergent properties have systems? Some of you, many of you have, but we'll just talk about that for a minute. A system as a whole has properties that are above and beyond the properties of the individual components of the system. And these are known as emergent properties. So here I've tried to provide some examples. Piano music is an emergent property. Deaths a piano by itself have music. Well, might be in a Walt Disney movie, it would, but in our real world, know, would the piano player by themselves have music well might be in their heads but not in the air so that the listeners, and I guess we could ask a zen question, maybe there's not a listener, is there any music? I don't know. So another emergent property, three-dimensional vision, takes two eyes and a brain and optic nerves and all kinds of components. To enable us to have three-dimensional VH. A rainbow is an emergent property. Movement of a car is an emergent property. None of the components of a car by themselves. No exit might be if you put a tie or on a mountain. And they've managed to stay upright. Consciousness isn't marching. And I hit, now this is my idea. Profit. It's an emergent property. Jones organization. Well, I certainly am I counting? Yeah. Yeah. Yeah. So I've really shouldn't pick on the accountants. Have you ever heard that story about, I'm a statistician by education. You have you ever heard that statement about stead with stations? Statisticians are paypal but like, like numbers, but lack the personality to be m account. So anyway, next slide here. Think about emergence. Here set an example that I got from a friend of mine. He used to bring. Nerf ball, you know what a nerve val is, spongy. Bow into a session, a seminar. And you'd have a big pair of scissors. And he would say, we need to work on this ball. It's not round them up. And then he would cut the bow up into paces.
In her lecture, Gipsie Ranney makes a reference to Myron Tribus and his "Perversity Principle," namely, "If you try to improve the performance of a system of people, machines, and procedures by setting numerical goals for the improvement of individual parts of the system, the system will defeat your efforts and you will pay a price where you least expect it."
Share a personal example of the "Perversity Principle"
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