Uncovering Hidden Problems in Organizations with Jacob Stoller of Conversation Builders

In the latest episode of the People Solve Problems podcast, host Jamie Flinchbaugh welcomes Jacob Stoller, an accomplished journalist, speaker, facilitator, and Shingo-Prize-winning author of The Lean CEO. Jacob, who is also the author of the upcoming book Productivity Reimagined, brings his extensive experience in demystifying complex business and technology topics to the forefront of the discussion. As the founder of Conversation Builders, Jacob has a deep understanding of organizational dynamics, and in this episode, he dives into the often-overlooked issue of how companies conceal and avoid dealing with problems.

Jacob begins by exploring the concept of productivity—a term that, despite its frequent use, is often misunderstood. He notes that many people equate productivity with simple metrics like GDP per worker, but such measures fail to capture the full picture. In Productivity Reimagined, Jacob redefines productivity by emphasizing the importance of quality in tandem with quantity. He argues that a superficial increase in output is meaningless if it comes at the expense of quality, using the metaphor of manufacturing defective products to illustrate this point.

A significant portion of the conversation centers on the cultural challenges that prevent organizations from addressing their problems effectively. Jacob highlights how traditional hierarchical structures, where authority flows from the top down, discourage the open discussion of problems. He explains that problems often cross departmental boundaries, but organizations tend to manage each component separately, leading to conflicts and inefficiencies. This fragmented approach makes it difficult for companies to recognize and address issues that affect the entire organization.

Jacob stresses the importance of creating a culture of trust within organizations, where employees feel safe to bring up problems without fear of retribution. He points out that for companies to truly solve their problems, leaders must be willing to prioritize long-term value over short-term gains. This involves pulling the "andon cord," a lean manufacturing term that refers to stopping production to address an issue, even when it might temporarily disrupt the workflow. Such actions, Jacob argues, are crucial for fostering an environment where problems are seen as opportunities for improvement rather than threats.

The discussion also touches on the issue of conflicting Key Performance Indicators (KPIs), which Jacob identifies as a common barrier to problem-solving. He gives the example of a mining company where the operations department's KPI for equipment availability conflicts with the maintenance department's KPI for preventing breakdowns. These opposing goals create a situation where short-term decisions lead to long-term failures. Jacob advocates for a value stream approach, where all stakeholders work together towards a common objective, thus eliminating the conflicts that arise from siloed thinking.

Throughout the conversation, Jacob and Jamie reflect on the broader implications of these challenges, drawing on examples from various industries. Jacob shares insights from his research, including the surprising ways that lean principles and productivity strategies are being applied outside of traditional business contexts, such as in environmental sustainability initiatives. He recounts a case where a winery reduced its environmental footprint and increased its output by addressing waste in its processes, an example that underscores the value of looking beyond conventional metrics.

As the episode concludes, Jacob leaves listeners with a powerful reminder: productivity cannot be reduced to a single number or metric. Instead, it requires a holistic understanding of the factors that contribute to or detract from a company's performance. He invites listeners to rethink their approach to productivity, considering the systems and processes that underpin it rather than focusing solely on outcomes.