Note from Art: this distinctly non-holiday post couldn’t wait for a better time. There’s no time like the present for leaders and managers to be thinking deeply about their businesses and the road ahead.
Dr. Deming once stated that he hoped one of his life’s accomplishments was to keep American companies from committing suicide. The public spectacle of Detroit and Wall Street committing suicide in the same quarter would indicate that he failed in his mission.
The site of these firms begging in the streets for alms from taxpayers is nauseating. The impact that this gross mismanagement of the grandest kind is having on the welfare of American workers and families is also sickening.
Deming spoke, taught and wrote about what we should be doing. He was clear in his belief that the U.S. was the “single most under-developed country in the world,” principally due to our philosophically bankrupt leadership and business management approaches.
He talked to many of the leaders in the U.S. auto industry. He described a theory of management that if adhered to, would cure U.S. firms of the “Deadly Diseases” of traditional U.S. management practices. These were the very diseases that got automakers and so many other firms in such big trouble to begin with. Short-term thinking, ego, false leadership models, lack of constancy of purpose and so many others that are in plain sight for all to see and fix.
From the ashes of World War II, Japanese leaders and managers worked to develop a new style of management. This tiny country (in land mass) with no natural resource other than a motivated workforce and leaders and managers relentless in pursuit of quality and collective prosperity, rose in a few short decades from laughingstock to the world’s second largest economy. Peel back the layers of Japanese success and you will find Deming at the center.
Deming’s Theory of Profound Knowledge and 14 points offered (and still do) keys to many of the answers. They are not prescriptive, but rather they combine to create a philosophical approach to running a business, that if adhered to, will stand a chance of succeeding for customers, workers and partners on a global stage.
We now face the daunting task of regenerating our economy. All of us that work, manage and lead have an opportunity to contribute. While our ashes are paper and not buildings like Japan in 1950, the situation is just as dire.
One reader mentioned in an earlier post of mine that it was interesting how Deming was rolled out when things got bad. My perspective: it’s interesting how we paid him lip-service when we should have worked to understand, adapt and apply his principles.
Dr. Deming saw that much of American industry had sown the seeds of its own demise in flawed management practices, even when times and numbers looked good. If you are looking for ideas during this time of trouble, Deming’s philosophy of management is a good place to start.
*Suggested reading: Out of the Crisis, W. Edwards Deming
Art, your assessment of the current crisis is spot-on; however, I do not think it’s quite fair to say that Dr. Deming failed his mission, but more appropriately the so-called ‘leaders’ of these major organizations failed him. He laid out a clear direction that was specific to the mission of the companies that are now failing, and they turned their backs on him.
I don’t pretend to know why it happened, but it provides an opportunity for each of us to do some deep introspection and challenge some of our own beliefs. We have a great opportunity to start from where we are today and build the next generation of greatness. It will require leadership at all levels. -Michael
Michael, as always, thanks for your comments and for cogent thoughts.
I suppose my perspective on Deming is shaped by my recent deep dive into his teachings and content. He was profoundly frustrated with the failure of American management/managers and the U.S. Government to grasp the importance of his message. He as much indicated that he felt like he had not succeeded here in the U.S., especially via the impact that he had in reshaping Japan.
I do very much agree with you on the great opportunity ahead!
-Art
A great post. I too have been re-reading Deming recently and am reminded how on target he was. As Michael indicates, it is a time for every leader to reflect on our own beliefs, performance and the example each of us sets.
As disappointed as I am in what I read and see of the “leaders” in industry and government, I believe that change starts with each of us. Reflecting on Deming’s lessons and applying them in the areas in which we each can make a difference is the only way to drive change and recovery.
As always, I am a great admirer of your posts!
For those interested in more on Deming’s ideas, I have put together some thoughts on Deming’s Management philosophy. Also my Curious Cat Management Improvement blog Deming category includes many posts on the topic.
I just got through reading “Dr. Deming: The American Who Taught the Japanese About Quality”, which is not by Deming but by another author (Raphael Aguayo). It is the most digestible discussion of Deming’s principles that I’ve ever read. I now buy copies of this book and give it to people in management at the companies where I consult.
I do not believe that there is any hope for reversing the decline of the U.S. You never read about the third-generation rich kids who’ve squandered their grandparaents’ wealth suddenly waking up one day and realizing that absolutely everything they’re doing is destroying wealth rather than creating it. What really happens is that a new generation of wealth-makers arises from other families.
We have somehow adopted a self-defeating system that squanders our national resources by paying them out to the day-traders and cost-cutting managers who produce nothing of value. So long as these people can make more money than people who actually create wealth, we will be on the road to oblivion. The only question is when our lights will finally go out. I suspect it will be sooner than we can imagine (remember the Soviet Union?).
Dave, thanks for reading and for sharing your resource. I’ve added your book to my personal “need to read” list. I vacillate between a bit of naive optimism and your sobering pessimism. I do think that time is an important factor and we might lose the next few innings, but I’m not counting out out of the game. Thanks for sharing! -Art
Look at what is called “management” in the average company or government office today. Largely self-serving and inept. How can American workers rise above this?? I swear, the clowns they put into so-called “leadership” positions do everything but LEAD and stifle and kill any initiative and forward thinking they may be going on.