Maintain an emerging synthesis by diagnosing continuously.

Keep in mind that diagnoses should produce outcomes.

Remember that if you have the same people doing the same things, you should expect the same results.

Use the following “drill-down” technique to gain an 80/20 understanding of a department or sub-department that is having problems.

Understand that diagnosis is foundational to both progress and quality relationships.

Design Improvements to Your Machine to Get Around Your Problems

Build your machine.

Systemize your principles and how they will be implemented.

Create great decision-making machines by thinking through the criteria you are using to make decisions while you are making them.

Remember that a good plan should resemble a movie script.

Put yourself in the position of pain for a while so that you gain a richer understanding of what you’re designing for.

Visualize alternative machines and their outcomes, and then choose.

Consider second- and third-order consequences, not just first-order ones.

Use standing meetings to help your organization run like a Swiss clock.

Remember that a good machine takes into account the fact that people are imperfect.

Recognize that design is an iterative process. Between a bad “now” and a good “then” is a “working through it” period.

Understand the power of the “cleansing storm.”

Build the organization around goals rather than tasks.

Build your organization from the top down.

Remember that everyone must be overseen by a believable person who has high standards.

Make sure the people at the top of each pyramid have the skills and focus to manage their direct reports and a deep understanding of their jobs.

In designing your organization, remember that the 5-Step Process is the path to success and that different people are good at different steps.

Don’t build the organization to fit the people.

Keep scale in mind.
