Donald J. Klein - Its Not Magic: The Rebirth of a Small Manufacturing Company

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title	:	It's Not Magic : The Rebirth of a Small Manufacturing Company
author	:	Klein, Don.; Zawacki, Jim.
publisher	:	Michigan State University Press
isbn10 | asin	:	0870135007
print isbn13	:	9780870135002
ebook isbn13	:	9780585188164
language	:	English
subject	American fiction.
publication date	:	1999
lcc	:	PS3561.L3443I87 1999eb
ddc	:	813/.54
subject	:	American fiction.

Page iii It's Not Magic The Rebirth of a Small Manufacturing Company Donald J. Klein Jim Zawacki Michigan State University Press East Lansing

Page iv copyright 1999 Donald J. Klein and Jim Zawacki The paper used in this publication meets the minimum requirements of ANSI/NISO Z39.48-1992 (R 1997) (Permanence of Paper). Michigan State University Press East Lansing, Michigan 48823-5202 04 03 02 01 00 99 1 2 3 4 5 6 Library of Congress Cataloging-in-Publication Data Klein, Don, 1936 It's not magic: the rebirth of a small manufacturing company / Don Klein, Jim Zawacki. p. cm. ISBN 0-87013-500-7 (alk. paper) I. Zawacki, Jim. PS3561.L3443187 1999 98-043906 813/.54 21 CIP Cover design by Heidi Dailey. Book design by Michael J. Brooks. Visit Michigan State University Press on the World-Wide Web at: http://www.msu.edu/unit/msupress

Page v Contents Introduction 1 1 Peter Thompson Meets Professor John Keen 3 2 First Visit to Magic 5 3 Start with Basic Problems 11 4 Academician Learns from the Practitioner 17 5 Grow People First 21 6 Weakest Link 27 7 Fix the Problem, Not the Blame 33 8 Leads, Not Supervisors 45 9 Discovering the Weakest Link 53 10 Quality of Life Issues 57 11 Eliminate Waste 65 12 Trust, Relationships, Integrity, and Communication 71

Page vi 13 Energy Vampires 75 14 Leadership Should Have the Capacity to Educate 83 15 Safetyand Maintenance 89 16 Discipline 101 17 Lifelong Education 107 18 Culture 111 19 Financial Measurements 115 20 Suggestion System 121 21 Business Philosophy 127 22 Rearview Management 133 23 Robust Process 137 24 It's Not MagicContinuous Education 141 25 Reflections 145

Page vii Preface Think about IBM in 1990. In the previous decade its profits had averaged between eight and nine billion dollars per year. To put this in context in 1997, the two most profitable firms in America, Exxon and GE, each made about 8 billion dollars in profits. Seventeen years earlier IBM was making this amount of money. In 1990 IBM was to make between 10 and 11 billion dollars in profits. Before or after, no other firm has ever made this sum of money. IBM was the most profitable and the most admired firm in human history. Then God came to John Ackers much as he did to Moses and said, "John come up the mountain with me. I want to show you the promised land. The era of the mainframe computer is over. The PC is here. If you don't adjust to this new reality, profits will fall to zero in 1991, in 1992 you will lose 9 billion dollars, in 1993 this will be repeated, and in 1994 you will lose another 5 billion dollars for a total of 23 billion dollars in losses. No firm before or since has ever lost so much money. It is now your job John to go down the mountain and persuade 420,000 employees who have had the best decade in human history and the best year in human history that they must rip it all up and do something very different." Could you do that? Could anyone do that? I suspect that God himself could not have managed IBM successfully. It is important to remember that the ten commandments themselves had to be brought down the mountain twice by Moses before they were believed.

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