Welcome back to thought engineering module seven, I hope you're having an absolutely superb day. Now in today's module, you're going to get some real gold. I'm going to teach you about how to see any issue in your business from a completely different solution based perspective that will impact your potential and your productivity beyond measure. Now, just before I kick into the content for today, I want to say congratulations, congratulations for sticking to the program. Thorough engineering is about precision and discipline. And as I said in module four, when we were talking about priming, it's easy to be unremarkable and to be average, to be extraordinary is special.

So I gret congratulate you for your commitment to being in Extraordinary for not being average for not being ordinary. Because I assure you your commitment to learning and applying the knowledge we deliver in this program will deliver you rewards beyond your absolutely wildest dreams. Okay, so, the module today is about comprehensive single system perspective and systems based solutions. I have a sign that I use when people are trying to explain things to me, I always say, Please explain it to me like I'm a three year old, because if a three year old can understand it, then I'm going to have no trouble whatsoever. Now, if that hitting comprehensive, single system perspective and system space solutions, the mouthful isn't it sounds complicated. If it sounds technical, or it makes your head hurt a little right off the bat, don't worry, because I'm going to break it down for you.

So the three year old can understand it and because communication is the response that you get right so The response I want is for you to completely comprehend this module. Okay. So let me start by asking, what is the first thing that generally happens when there is a problem in a business generally the boss or department head or whoever's in control comes out and says what? In some way shape or form there. The comment generally comes along the lines of this. who screwed up right?

So, look for somebody who made a mistake. So, in some way, shape or form, generally, someone is going to end up in the firing line. Think of the last time you heard a plumber or a builder speaking to their, their apprentice and saying something like, why did you do that blockade? And that's not an attack on plumbers or builders in any way, shape or form. It's just a it's one that I think we can all we've all probably heard or seen. But what happens when this occurs?

Does everyone put their heads out? Hands up, I should say and say, it was me. It was me. I did it. I made the mistake. Not likely, hey, generally, everyone shrinks into the smallest ball possible thinking, shit, I'm glad I'm not john or marry right now.

Correct. That's usually how it goes. However, what if I told you that 94% of the time, that approach would not solve the problem that 94% of the time, you would completely miss the target. Even if you found the person you thought was technically responsible, that 94% of the time that applies approach was incredibly detrimental to the the culture, the team and the enduring prosperity of your business. He say what Dr. Deming proved through statistical control methods through Measurement and Analysis was that 94% 94% of all issues in business that cause any undesirable outcome are a direct result of a defect in the system in the business 94% of the time. So let me ask you, if the defect that caused the undesirable outcome is in the system 94% of the time, does the optimal position for rectifying the issue lie in looking for the person who screwed up or was the optimal position in looking for where the system has a defect that allowed the undesirable result?

To be achieved. Now, you may have realized that I quote demmings work a lot. And there are two reasons why I do it. And I just want to cover those for you now. First, none of his knowledge, his opinion or ideas, it is statistically measured and proven theory that will produce a predictable and desirable result. It's not opinion.

And it wasn't just tested on a small business. It wasn't just tested on one industry, it was tested on the production, commercial, productive engines have an entire nation. Second, effectiveness is my measure of truth. So I've applied this knowledge and it works every time. So, if we now know that 94% of all issues in business are systems related, let me ask you again. Are we in an optimal position for forward motion if we are looking for An individual who may or may not have messed up, or are we in an optimal position, if we look for the system that is defective, that allow the undesirable result to be achieved, or to resolve, you see, you want to work on the 94% were the highest probability of successes first, not the 6%, not the people, you you're not in an optimal position when you come at it from that angle.

And consider this list of issues that occurs when you come at the space of all you you attack, repairing issues from the space of who screwed up. Firstly, it alienates the individual, the person, nobody enjoys being graded. So all you do is create a barrier between you and that person. Even if you are right, it still doesn't matter. Everyone else ducks their heads and runs for cover. Bye bye their mistakes, for fear of reprimand or losing their jobs.

And this causes more problems than you are even aware of at any point in time. There is no expensive synergy in that environment, other than the synergy of self protection. The culture you build is is one of the is one of suppression and survival. And the biggest problem of all is it doesn't actually address the defect that caused the issue, the root cause the defect still exists. So the problem is going to reemerge at some point in time. But when you address any issue from the aspect of locating the defect in the system that caused it by coming at it from that angle, or by coming at it from the angle of Hey, john, we got an issue here in your department.

Can you please take a look at it and and let me know what's going on and let me know where the breakdown in the system is that led to the characters Although the production that you didn't want, so the result you didn't want, and how we can improve it or solve it, that'd be greatly appreciated. Or something like to production team. We've been having a quality issue with the internal bypass of the flux, flux capacitor, no, could you please get your heads together and, and determine where the defect is in the system that is producing it and and come up with a solution to cause it so that we can we can make a decision on how to fix it. If you could do that. That'd be greatly appreciated. Or in the case of the plumber, for example, that I gave you a minute ago.

Hey, Paul, can you help me understand why you dug that hole? Where when I wanted it, or why you dug it here when I wanted over, he asked him at the time where the breakdown in the communication system happen so that you can stop it from happening again. When you get anyone or everyone together? I waited the system breakdown that allowed or produce the undesirable result and focus your energy on solving the actual defect. What happens is no one feels targeted or scared, you get unity in addressing the issue, not division, people open up and then become part of the solution rather than continuing to be part of the problem. The synergetic combination of bringing all those heads together to solve the issue is off the charts.

And the culture you build is rooted in expansion and support. By addressing issues from this angle, you are optimizing your opportunity and position at all times. If you were in a desert, and I said to you, you have a 94% statistically proven chance of finding water in survival by going east and a 6% chance if you go west, which one would you choose? Of course, you would choose east. Now, let me digress for just a moment to help you understand this on an even deeper level. Who is responsible for the systems or the redesign of systems in any business?

And if you don't have systems or you think you don't, you'd be mistaken. You have the CMS or the chaos management system, or, or the TMS, the triage management system, but regardless of what you have, who is ultimately responsible for the creation of the systems? Is it management, or is it the work is its management, right? And since 94%, of all problems are attributable to this system, and it's only management can redesign the systems, then only management can be blamed if they're wrong. The ultimate responsibility of almost every issue in the business lies with men. Management, that's you and me for that matter.

But just as the workforce has to be trained and improved, so does leadership, which is what we're working on here. So I'm still stunned at the number of businesses I see and business owners on meet, who still do things like performance reviews. You know, let's be honest, aren't they a lot of fun. You sit down and you speak about your last six months or 12 months work and you go over in detail how productive you were and what your output was, etc, etc. What was done well and what needs improvement. The person taking the tape, sorry, the person being reviewed, leaves feeling pressured, and, you know, I have to watch their back and improve otherwise I might lose a job.

And the person doing the interview doesn't really enjoy it either. It's not an entertaining situation, to be in. On the other side of the coin, but if 95% of all issues, and that includes potential for improvement is in the system, is your time being optimally invested by performance reviews? No. If you want to improve the performance of your business in any place, then first look at the system for improvement. Focus on that area first, and then providing the individuals and trained appropriately on a train changes.

The improvement will materialize automatically. A number of years ago, I was asked to consult to a factory in Asia to improve the operations. They were a decent size operation roughly 1000 staff give or take. Not big Asia but still a reasonably sized enterprise. Primarily they want to be to improve the productivity and profitability, which is what businesses always want to do. After being in the factory for a week, the owner asked me if I was okay, to which I replied Yeah, of course.

Absolutely. I then asked him a clarifying question, Steve, is there a reason why you asked me that? And his reply was this. And I'm not going to do it in a Asian accent. But this is where he said, You've been here for a week. And you've only spoken to a couple of my workers and you haven't spoken to any my management staff yet.

You see, I wasn't interested in speaking with management yet, because I knew the optimal position for improvement was in the system. And who understands the systems better than anyone, the workers who are actually using them. over the previous four years, Steve have only been able to achieve what you would call marginal improvement in the business, even though he invested huge sums of money into monitoring and and driving the performance of his workforce. Because his focus was on pushing the people to improve Steve's theory was that the Limitations were in the people, a theory that he was perfectly reasonable and perfectly logic logical. Steve was relying on his management to create the improvement but they were all working on the same theory focused primarily on the individuals, the people in their business. And, and this links directly actually, right now, these two links directly to the second part of this module.

The other critically misaligned assumption that Steve and his management team were working on was their departments were independent systems, they were missing the comprehensive perspective that there is no such thing as multiple systems in a business. It is all one system. For example, for the production line to function well, the raw materials procurement and stock systems had to be improved. For the for this to be improved the purchasing department and the literature sticks department needed to be improved. For the purchasing departments to be improved. The sales department communications needed to be linked improved and made seamless, and so on and so forth.

So, the focus was transformed from managers attempting to improve just their own departmental systems to understanding that the success of their area depended upon the health of the entire single system. The synergetic impact of every manager now focused and interested, excuse me and interested in the success in every other area, because now they realized they were all part of the one system was remarkable. In the end, after the re education process, we made a substantial change across the entire business. The change resulted It was huge, was a 42% increase in the profitability in 18 months and it's 70% 77% reduction in the overrun and defect affected items, once the business and the teams had learned and embodied this different method of assessment for improvement, and then understood that there was no such thing as individual departments, and that they that they success, the success, I should say, of each department was bound up in assessing success of all.

Hence, they learned a comprehensive single system perspective. They no longer needed me, my work was done. Now, let me make this very clear. I'm not saying you can't get improvement from focusing on your people. Of course you can. And you should absolutely invest in training and enhancing this skills.

Training Steve and his team on one having a comprehensive single system perspective and to that their ultimate or their optimal opportunity was in Improving the system was the beginning of how they achieved the results that they did. The the retraining, this retraining I should say, It drove them to to look at and address their business from a vastly different position and ask vastly different questions, engage vastly different strategies and ultimately produce vastly different results. The purpose of this module is to readjust the way that you look at issues and problems in your business and illustrate that the system is where the optimal probability for quality and productivity improvement lies. And now that you know that you are empowered to do exactly what Steve and his team did, ask vastly different questions, engage vastly different strategies, and ultimately produce vastly different results. Work with the existing reality, don't find it and the existing reality is 94% of all issues are in the system.

Now, before I summarize and finish up with me, we'll finish up with this module. Let me clear something up. Yes, there will come a time when the problem is not in the system. And you may need to handle an individual who is let's just say out of line. And there are rules for doing that to support the business, the team and the individual. Now, rule one is this.

Never address an individual on an issue in any public space. You are only going to alienate them. You want to deal with them in private. So because otherwise all you do is build animosity and discount In your team and that's not going to serve you. Once again, that's not optimal rule to remember the universal rule. When emotion goes up, intelligence goes down.

They are inversely and proportionally related related. Do not deal with an issue or team member. When you are emotional, you are highly likely to say something that you regret or that is detrimental to the enterprise in some way, shape or form. There is nothing to be gained from winning the battle and losing the war. Remember, we don't want to be right We want to get it right. Being right is the booby prize.

So keep in mind that when emotion goes up, intelligence goes down. Now, rule number three, handle the issue with this. Questions, not statements. We want to handle the issue with questions, not statements such as Peter, please help me understand how you think coming back from lunch 15 minutes late every day is acceptable in this environment. And yes, I know that's a very basic example. But what you will find is that most often by hand During the issue with questions, not statements, you won't even need to give any direction at all, the individual in question will come to the realization that their behavior or actions, whatever, unacceptable, and that will be the end of it.

Okay. So that was another slightly heavy piece of content and yes, you may need to watch it again, this module, but that's cool. That's no dramas, I suggest you do that. You may even be feeling like, okay, so you told me that 94% of my problems are in my systems. So how do I create systems to fix that? Or?

Or what are the systems in my business new? The simple truth is that systems development is a completely different program. That's what we're covering in this program. Please keep in mind that thought engineering is a contextual in a contextual programming program that says Funny, doesn't it, we are building the framework of your vessel so that it is optimally prepared and positioned for opportunity, potential prosperity, profitability and abundance. This knowledge permits optimal productivity and organization. So in summary, there are two main points you need to add to your bank of thought engineering knowledge.

190 4% Of all issues in business are system related. So don't get everyone together and say, who screwed up, get everyone together and say something like, hey, there's an issue with the outcome he, let's get together and work out how we can improve the system so we don't get the same result again, ever solve the problem? don't divide your team, unite it and you'll be amazed at the result. And second, be aware that there is no such thing as systems The plural in your business, you only have a single system, and the welfare of any individual or department is bound up completely in the welfare of all. Now, just before I finish this module, I'd like to say this, the work of wV Deming is remarkable. There is no other way to describe it.

However, to be very frank, his entire knowledge base is incredibly complicated and convoluted. If you want to study it, I've thoroughly recommend it, no doubt without question or hesitation. However, the reason I created thought engineering was so that you could avoid the incredibly complicated and convoluted mountains of content out there. I wanted to give you access to a set of distilled key components, knowledge and theories from a diverse range of sources that will have the biggest impact on your development. real wealth, abundance and freedom in the shortest amount of time. So that's what that's what thought engineering is all about.

In the next module, we're going to cover the principle of Nexus points and you're gonna love this one, and principally, why you're not making the money that you should be, and how you can instantly solve that problem. So until we meet again, in the next module, please think clearly be superb and have an absolutely incredible day.