A Leader Should Know How to Manage Failure

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

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

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

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

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

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

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

Where Have All the Leaders Gone?

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

~ Lee Iacocca, Where Have All the Leaders Gone?

Theory of Constraints

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

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

The Five Focusing Steps

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

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

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

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

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

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

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

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

Liebig's Law of the Minimum

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

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

Six Sigma

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

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

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

DMAIC

The basic methodology consists of the following five steps:

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

DMADV

The basic methodology consists of the following five steps:

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

5S

5S is a method for organizing a workplace, especially a shared workplace (like a shop floor or an office space), and keeping it organized. It’s sometimes referred to as a housekeeping methodology, however this characterization can be misleading because organizing a workplace goes beyond housekeeping (see discussion of “Seiton” below).

The key targets of 5S are workplace morale and efficiency. The assertion of 5S is, by assigning everything a location, time is not wasted by looking for things. Additionally, it is quickly obvious when something is missing from its designated location. 5S advocates believe the benefits of this methodology come from deciding what should be kept, where it should be kept, and how it should be stored. This decision making process usually comes from a dialog about standardization which builds a clear understanding, between employees, of how work should be done. It also instils ownership of the process in each employee.

In addition to the above, another key distinction between 5S and “standardized cleanup” is Seiton. Seiton is often misunderstood, perhaps due to efforts to translate into an English word beginning with “S” (such as “sort” or “straighten”). The key concept here is to order items or activities in a manner to promote work flow. For example, tools should be kept at the point of use, workers should not have to repetitively bend to access materials, flow paths can be altered to improve efficiency, etc.

The 5S’s are:

Seiri – Sorting. Refers to the practice of going through all the tools, materials, etc., in the work area and keeping only essential items. Everything else is stored or discarded. This leads to fewer hazards and less clutter to interfere with productive work.

Seiton
: Set in Order. Focuses on the need for an orderly workplace. “Orderly” in this sense means arranging the tools and equipment in an order that promotes work flow. Tools and equipment should be kept where they will be used, and the process should be ordered in a manner that eliminates extra motion.

Seisp: Sweeping, Systematic Cleaning, or Shining. Indicates the need to keep the workplace clean as well as neat. Cleaning in Japanese companies is a daily activity. At the end of each shift, the work area is cleaned up and everything is restored to its place, making it easy to know what goes where and to know when everything is where it should be are essential here. The key point is that maintaining cleanliness should be part of the daily work – not an occasional activity initiated when things get too messy.

Seiketsu: Standardising. This refers to standardized work practices. It refers to more than standardized cleanliness (otherwise this would mean essentially the same as “systemized cleanliness”). This means operating in a consistent and standardized fashion. Everyone knows exactly what his or her responsibilities are. In part this follows from Seiton where the order of a workplace should reflect the process of work, these imply standardised work practice and workstation layout.

Shitsuke: Sustaining. Refers to maintaining and reviewing standards. Once the previous 4S’s have been established they become the new way to operate. Maintain the focus on this new way of operating, and do not allow a gradual decline back to the old ways of operating. However, when an issue arises such as a suggested improvement or a new way of working, or a new tool, or a new output requirement then a review of the first 4S’s is appropriate.

Cognitive restructuring

Cognitive restructuring in cognitive therapy is the process of learning to refute cognitive distortions, or fundamental “faulty thinking,” with the goal of replacing one’s irrational, counter-factual beliefs with more accurate and beneficial ones.

The cognitive restructuring theory holds that your own unrealistic beliefs are directly responsible for generating dysfunctional emotions and their resultant behaviors, like stress, depression, anxiety, and social withdrawal, and that we humans can be rid of such emotions and their effects by dismantling the beliefs that give them life. Because one sets unachievable goals — “Everyone must love me; I have to be thoroughly competent; I have to be the best in everything” — a fear of failure results.

Cognitive restructuring then advises to change such irrational beliefs and substitute more rational ones: “I can fail. Although it would be nice, I didn’t have to be the best in everything.” [Ellis and Harper, 1975; Ellis 1998]

This is accomplished by leading the subject to:

* Gain awareness of detrimental thought habits
* Learn to challenge them
* Substitute life-enhancing thoughts and beliefs

The rationale used in cognitive restructuring attempts to strengthen the client’s belief that 1) ‘self-talk’ can influence performance, and 2) in particular self-defeating thoughts or negative self-statements can cause emotional distress and interfere with performance, a process that then repeats again in a cycle.

Mark of a leader 'not in his top grades

ST April 4, 2008
Mark of a leader ‘not in his top grades’
That is the assessment of those who were top students. They value competence, leadership qualities, including EQ, more
By Jeremy Au Yong

ACADEMIC grades are a useful measure for identifying a potential political leader but it should not be the topmost criterion.

That assessment came, interestingly enough, from people who were top students, with four As in their A levels.

They were reacting to Prime Minister Lee Hsien Loong’s statement on his urgent search for a successor in an interview on Tuesday, when he also highlighted the brain drain among the 4As students. PM Lee had also indicated that based on past experience, it would take about three elections to groom a leader.

The Straits Times interviewed 10 people who had 4As, and the key traits they seek in the country’s leaders are competence, capability and leadership qualities, including emotional quotient or EQ.

Top grades are not critical, they added.

Even a PM without a university degree is not anathema to civil servant Jenny Tan.

BIGGER WORRY

Another civil servant, Mr C.L. Lian, 31, put it this way: ‘The person must have demonstrated intellect and problem-solving ability, but the emphasis doesn’t have to be on grades. I’m sure Bill Gates would be someone you want.’

Mr Gates, co-founder of software giant Microsoft, is one of the world’s most famous university dropouts.

Mr Lian added that though the current selection system was sound, the grooming period might have to be shortened.

‘Currently, there is this grooming period but we may not have 20 years to give,’ he said, referring to PM Lee who entered politics in 1984 and became PM in 2004.

Mr Lian said it was important for the political leaders to decide which parts of government need leaders with knowledge and experience in government, and which ministries can do with leaders without government experience.

He cited Senior Counsel K. Shanmugam – who is going straight from being an MP to Law Minister – as a case of a person who was not groomed to be a minister, but had the right skills and experience.

Some interviewed, like Nominated MP Siew Kum Hong, felt there may be a need to change the way leaders are chosen.

Said Mr Siew, who had 4As in his A levels: ‘Now, we seem to be going about choosing one like we go about giving scholarships. There’s this list of objective criteria.’

The answer to who should be the next PM will depend on how the question is framed, he added. ‘If we are looking for technocrats and managers, then you’ll be competing with the world. If you frame it differently, if you’re looking for leaders of the future, you probably could come up with a different characteristic.’

MP Baey Yam Keng, another top scorer, said academic excellence was a ‘necessary although not sufficient’ criterion. Even then, he said exceptions could be made. ‘Grades are important at the entry point but over the years, they become less and less important.’

In his interview with The Straits Times and Lianhe Zaobao, PM Lee had highlighted data that show one in four – 150 out of 600 – top A-level students yearly works overseas after their studies. ‘This flow is going to continue. So it’s a big challenge to find successors, particularly for politics,’ he said.

The extent of this brain drain does not surprise those interviewed, who added that it is not at the heart of the problem.

Said corporate tax associate Sarah Seow, 26: ‘I believe the greater problem isn’t the brain drain, but the political apathy of my generation.

‘I know that among my peers still staying on in Singapore, many of us are talented and intelligent enough to become the Government’s next tier of leaders – the only problem is that we may have become so caught up in our own careers and desires that we don’t see a reason to get involved in politics.’

SIA shoddily handled extra baggage allowance request

I HAVE always associated Singapore Airlines (SIA) with exceptional customer service, but was disappointed before even boarding my flight.

I am a student going overseas on a six-month study attachment and am facing great difficulty in squeezing all my necessary baggage into SIA’s 20kg Economy Class Checked Baggage Allowance. Hence, I wanted to see if there was any solution other than paying high overweight baggage charges. This was the start of my frustration.

First, I called the Baggage Office number on their website. The baggage officer informed me that I could request for a Baggage Allowance Waiver with valid reasons by calling SIA’s Reservation Hotline. Several attempts to call the hotline were met with a dead tone. When I finally managed to get an officer on the line, I was informed that they had no authority to grant such waivers. He then said that I should call their ‘baggage department’ and directed me to SIA Cargo.

The officer at SIA Cargo directed me back to the Reservation Hotline. The second reservations officer then told me that if I required additional baggage allowance I should have booked my ticket via a travel agent, as there was some extra baggage benefit. Having booked my ticket several months back, this was not a viable alternative. Upon further enquiry, I was told that I should e-mail SQ Reservations with my request. The short reply to my e-mail was that they could not grant my request due to ‘high operational costs’.

My issue is not with being denied the waiver but with the constant redirection of my request to yet another inappropriate department and the shoddy way in which it was handled. With its reputation as a world-class airline, I expected better of SIA. I can only hope that such substandard service is the exception rather than the rule.

Angela Ang Jie Ling (Miss)

Ministry of Sound sues Singapore licensee

MoS Int’l takes suit against S’pore licensee to High Court
By Chua Hian Hou

A LONDON-BASED nightlife company is taking its lawsuit against the firm running the Ministry of Sound (MoS) club in the Republic to Singapore’s High Court.

Ministry of Sound International earlier filed a suit against the Singapore licensee in the British courts, but it seems it has now moved this legal action over to the courts in the Republic.

The MoS outlet at Clarke Quay, which opened in 2005, is run by LB Investments, a subsidiary of listed Singapore firm LifeBrandz.

LifeBrandz told the Singapore Exchange last Friday that Ministry of Sound International has served a writ of summons on LB Investments.

It said the writ ‘alleges breaches of certain terms and conditions of a licence agreement pertaining to the ‘Ministry of Sound’ brand’.

LifeBrandz said it would ‘vigorously defend’ the ‘unmeritorious’ allegations.

The same announcement also said that Ministry of Sound International had ‘discontinued’ its ‘entire claim’ against LB Investments. These claims had been originally filed with the High Court of England and Wales in mid-November.

The lawsuit earlier filed in Britain alleged that LB Investments had violated its licensing guidelines. The alleged violations included not playing the right type of music, not maintaining a stable website and not using the right staff uniforms.

Ministry of Sound International was reportedly suing LB Investments for damages and to force it to stick to its licensing guidelines.

A LifeBrandz spokesman could not be reached for comment yesterday.

LifeBrandz shares closed unchanged at 5.5 cents yesterday.