Adam Smith and the division of labor

Adam Smith’s understanding of a process – in the sense of division of labor – can be read in his famous statement about how a pin is producted:

”One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head: to make the head requires two or three distinct operations: to put it on is a particular business, to whiten the pins is another … and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which in some manufactories are all performed by distinct hands, though in others the same man will sometime perform two or three of them.”

Optimum pairings

In one episode of the American television show Community, when eight people have to divide into partners, they first divide without considering any variables or long-term consequences. Shortly afterwards, however, they are so annoyed with their imperfectly chosen lab partners, that they decide to find a way to be in their optimum pairings.

This leads to them spending all night, and most of the following day, trying to decide what those optimum pairings are. They try several different systems to find new partners, including dividing by hair-color/gender/race, old/young, highest/lowest GPAs, and finally by rating each other then pairing the most popular with the least popular, etc.

After a failed attempt to implement the rating system, the 8 people succumb to fighting, angry at each other for the rankings they received. Finally, more than 12 hours after beginning the optimization process, the characters realize that their class is about to start, but none of them have done their work. 

They go to class, and the teacher is so angry with them for not doing their work, and not even knowing who their partners are, that he forces 7 out of the 8 “partners” to all share one set of lab equipment, while the rest of the class no longer has to share.

Rules are made to be broken

In America, refusing to deviate from the rules is often perceived as negative behavior. There is a popular saying which states that “rules are made to be broken.” American General Douglas MacArthur famously expanded on this phrase and said “Rules are mostly made to be broken and are too often for the lazy to hide behind.”

Sam Walton, the founder of the Wal-Mart chain (which became the largest corporation in the world in 2002), wrote in his autobiography that the most important rule in business is to break all of the rules. He also gave preference to rule-breakers when hiring employees, as he considered them superior workers to their rule-following counterparts.

Many of the best known American scientists and engineers were also rule-breakers. Bill Gates broke the rules with his innovative software, Henry Ford with his moving assembly line and welfare capitalism, and the Wright brothers with their fixed wing aircraft, just to name a few.

“Way to go, Sue!”

Customer reviews can make or break a company in the USA. Especially now that the internet gives customers a way to instantly compliment or complain about service (and to make sure that their opinion is available for anyone to see) one good or bad review can drastically change the number of customers a company has.

In 2012, after Brandon Cook from New Hampshire posted a Facebook story about a Panera manager named Sue making a special order of clam chowder for his grandmother (and giving her a free box of cookies as well), the store became much more popular. Several people who would not otherwise have eaten at this restaurant went there, and commented about it online. Some of the Facebook comments that people made were: 

Cyrus Twirpwhirler My family is eating at Panera tonight because of this story. Way to go Sue and Panera!

Snow Casey That is so cool, I’m a customer already, but I like them even more now.

Daniel Julian that is so cool!!! Have to visit Panera soon.

Skeptical of deductive thinking

Americans are inherently skeptical of theory, theoretical thinking, and deductive approaches. They are empirical. For Americans „seeing is believing.“ Experience is real, factual, hard data. Experence informs. Americans prefer to build their processes from the bottom up, from „how the work is actually done.“

Process improvement: Americans asked to improve a process will imbed themselves in the inner workings of the team and the processes they use. They observe what does and does not work, what increases or decreases value, what is worth doing. They will then propose improvements, discuss these with the users of the process, then test, implement, improve upon. American process improvement is specific and experience based. It is not general and theory based.

Broad vs. Narrow: Americans distinguish between a narrow and broad process pragmatically. If the concrete actions to be taken are insufficiently spelled out in a process or a procedure, that process or procedure is not narrow enough. They are, in other words, too broad. If, on the other hand, a process or procedure demands too many deliverables, it is too narrow, focussed, inflexible.

Too many deliverables means too much time and too many man-hours are necessary without resulting in any clear value-added for the end-customer. Americans differentiate stringently between valuable and invaluable processes and steps in a process. Processes and procedures can be balanced or imbalanced. Balanced ones lead to a value-added ratio between work and results. Unbalanced processes and procedures are inefficient, costly, slow and cumbersome. They destroy value.

Inductive American science

Murray Gell-Mann, a theoretical particle physicist who won the 1969 Nobel Prize in physics, used the specific measurements of multiple particles with varying masses to induce the existence of quarks, half of the known elementary particles – the foundation of all matter, and what he called the eightfold way, a generalization of particle symmetries, which was able to predict the masses of yet undiscovered particles.

Linus Pauling, a chemist who is the only person to win two unshared Nobel Prizes, for chemistry in 1954 and peace in 1962, charted particular chemical bond angles and distances at Caltech following his fellowship. He then used these specific charts to formulate generalizations about atomic arrangements in crystals.

Guideline and more

Discipline: Punishment; a field of study; training that corrects, molds, or perfects the mental faculties or moral character; control gained by enforcing obedience or order; orderly or prescribed conduct or pattern of behavior; a rule or system of rules. Latin disciplina teaching, learning, from discipulus pupil.

Deviation: Deflection of the needle of a compass caused by local magnetic influences; the difference between a value in a frequency distribution and a fixed number; departure from an established ideology or party line; noticeable or marked departure from accepted norms of behavior.

Flexibility: Capable of being flexed, pliant; yielding to influence, tractable; characterized by a ready capability to adapt to new, different, or changing requirements.

Law: A binding custom or practice of a community; a rule of conduct or action prescribed or formally recognized as binding or enforced by a controlling authority; a rule or order that it is advisable or obligatory to observe; something compatible with or enforceable by established law; a rule of construction or procedure; a statement of an order or relation of phenomena that so far as is known is invariable under the given conditions; a general relation proved or assumed to hold between mathematical or logical expressions. From Old English lagu, of Scandinavian origin; akin to Old Norse lǫg law; akin to Old English licgan to lie.

Policy: Prudence or wisdom in the management of affairs; a definite course or method of action selected from among alternatives and in light of given conditions to guide and determine present and future decisions; a high-level overall plan embracing the general goals and acceptable procedures; a writing whereby a contract of insurance is made. From Middle French, certificate, from Old Italian polizza, modification of Medieval Latin apodixa receipt, from Greek apodeixis proof, apodeiknynai to demonstrate.

Rule: A prescribed guide for conduct or action; an accepted procedure, custom, or habit; a usually written order or direction made by a court; a regulation or bylaw governing procedure or controlling conduct; a standard of judgment; a regulating principle; a determinate method for performing a mathematical operation and obtaining a certain result; the exercise of authority or control; a linear design produced by or as if by such a strip. Middle English reule, from Anglo-French, from Latin regula straightedge, rule, from regere to keep straight, direct.

Guideline: A line by which one is guided; a cord or rope to aid a passer over a difficult point or to permit retracing a course; an indication or outline of policy or conduct.

Value-add: A product whose value has been increased especially by special manufacturing, marketing, or processing.

Richtlinie or guideline

Americans have a higher tolerance for deviating from processes. Americans see processes and procedures fundamentally as tools. Whereas a German colleague sees in a process a Richtlinie (order, instruction), his American counterpart often sees a guideline. The term guideline is often translated into Richtlinie. This translation is false and misleading.

Like their German colleagues, Americans seek that fine line between process-discipline and -flexibility. The moment a process makes unnecessary demands which do not serve the overall goals, that process is deemed rigid. Americans will deviate by reevaluating the most important factors: risk, resources, back-up contingencies, and the final value-added for the end-customer.

Results delivered in a timely fashion, even if the product of a process is not followed step-by-step, are preferred over results delivered too late, but the product of a process vs followed step-by-step. Americans, both as customers and suppliers, can “sleep at night” with the so-called 80%-solution, as long as the missing 20% is compensated by the advantage of speed, responsiveness or price (cost).

When to deviate: Americans are quick to deviate from steps within a process or procedure if: it does not add value, does not help, does not move their work forward; external forces demand it, such as schedule, budget or customer demands; after getting input from experienced colleagues and/or permission from their team lead or process owner; and as long as the deviation conforms (compliant) with laws and regulations.

Americans speak of taking a down and dirty approach, of doing whatever it takes to get the job done, of being pragmatic.

Jeff Bezos 1999

Look at his eyes. Listen to his statements. Total focus. On the needs of the customer. The interviewer is struggling. Because he thinks about Amazon as an internet or tech company. Bezos is very patient with his inability to listen carefully.

Consultare

To consult means to seek advice, to refer to, to take into account, to consider, as one would consult an attorney or a physician. To consult also means to exchange views, to confer. As with service, consult has its roots in Latin: consultare, meaning to deliberate, counsel, consult or take counsel.

And consult means to advise, to recommend, to suggest, to provide an opinion about what could or should be done in a certain situation or in response to a certain problem. The consultant, therefore, is the expert applying her knowledge and expertise to improve the situation of a customer.

But essential to consulting a client is understanding his needs, his situation. This is done by first consulting with, meaning listening to that customer.

Advise: To give (someone) a recommendation about what should be done; to give information or notice to; to give a recommendation about what should be done; to talk with someone in order to decide what should be done.

Confer: To compare views or take counsel; to bestow from (or as if from) a position of superiority; to give as a property or characteristic to someone or something. From Latin conferre to bring together.

Counsel: Advice given especially as a result of consultation; a policy or plan of action or behavior. Middle English conseil, from Anglo-French cunseil, from Latin consilium, from consulere to consult.

Recommend: To present as worthy of acceptance or trial; to endorse as fit, worthy, or competent; to make acceptable. From Latin recommendare, from Latin re- + commendare to commend.

Suggest: To seek to influence; to call forth, evoke; to mention or imply as a possibility; to propose as desirable or fitting; to offer for consideration or as a hypothesis; to call to mind by thought or association; to serve as a motive or inspiration for. From Latin suggestus, past participle of suggerere to pile up, furnish, suggest, from sub- + gerere to carry.

Apply: To put to use especially for some practical purpose; to bring into action; to put into operation or effect; to employ diligently or with close attention; to have relevance or a valid connection; to make an appeal or request especially in the form of a written application. From Latin applicare, from ad- + plicare to fold.

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