The W. Edwards Deming Institute Blog

Guided by Theory Not Figures

Managers must make decisions when data is unavailable or even impossible to collect.

A simple example is training. The only immediate evidence is its cost, expense. The effect of training will not be realized for months or even years in the future. Moreover, the effect can not be measured.

Then why does a company spend money for training? Because the management believe that there will in the future be benefits that far outweigh the cost. In other words, the management are guided by theory, not by figures. They are wise.

W. Edwards Deming, The New Economics for Industry, Government, Education – page 63

As Dr. Deming stated

It is wrong to suppose that if you can’t measure it, you can’t manage it – a costly myth.

page 10 of The New Economics.

Related: Can We Trust Our Memories?Unknown and Unknowable DataTheory of Knowledge

Deming Podcast #2: Kelly Allan Discussing the 2 1/2 Day Seminar

Deming Institute podcast icon

In this episode of The W. Edward Deming Institute Podcast Tripp Babbitt interviews Kelly Allan. Kelly serves on the advisory board of the Institute and is the senior associate of Kelly Allan Associates.

Kelly discusses the 2 1/2 day seminar and the current activities of the Institute in podcast episode number two (download).

Some of the highlights of the recent activity that Kelly mentions:

And of course this podcast series is another new initiative of The W. Edwards Deming Institute. Throughout the podcast Kelly also touches on various aspects of the Deming management method.

Subscribe to the Deming podcasts via rss or iTunes.

Related: Podcast with Kelly Allan on Dr. Deming and Peter ScholtesKelly’s book review of The Essential DemingDeming Seminar in Hong Kong, 12 to 14 June 2014

We have created a new Twitter account specifically for the podcasts @DemingPodcast.

The W. Edward Deming Institute Launches a New Podcast Series

Deming Institute podcast icon

The W. Edward Deming Institute is pleased to announce the Deming Podcast. We created a new Twitter account specifically for the podcasts: @DemingPodcast (our main Twitter account is @DemingInstitute).

In Deming podcast episode number one (download) moderator Tripp Babbitt interviews Kevin Cahill, the President of The W. Edwards Deming Institute and the grandson or Dr. Deming. Kevin talks about growing up with Dr. Deming and Kevin’s current work with The W. Edwards Deming Institute.

Kevin talked about how the NBC report If Japan Can Why Can’t We which aired in 1980 showed him his grandfather in a new light. The show introduced Dr. Deming name and ideas to many leaders in business in the USA.

Kevin was living at Dr. Deming’s house at the time (while getting a college degree) and he was a first hand witness to the amazing impact that program. Kevin frequently overheard phone calls from CEO’s of major companies (Ford, GM, etc.) from around the USA talking with Dr. Deming. Dr. Deming’s office was in the basement of his house.

Subscribe to the Deming podcasts via rss or iTunes.

Related: Business 901 Podcast with Joyce Orsini and Kevin CahillFirst post on the W. Edwards Deming Institute BlogDeming Seminar in Hong Kong, 12 to 14 June 2014

Sourced Quotes by W. Edwards Deming

Dr. Deming was very quotable. There are a great number of wonderful quotes. They capture ideas well and are powerful.

Without context though quotes can be mis-interpreted. And without context they lose much of the power they have when understood within the management system Dr. Deming had in mind.

I have been working on compiling a sourced list of quotes. While this process is far from complete I think it has reached a point where there is value in making it available online. So you may now view our collection of quotes by W. Edwards Deming.

photo of Dr. W. Edwards Deming from the 1950s.

Photo of Dr. W. Edwards Deming from the 1950s.

The collection includes pages for quotes from The New Economics and Out of the Crisis and also includes a large collection of attributed quotes.

Many of these attributed quotes are from the 4 day seminars, other seminars, consulting visits with companies and videos. Members of The W. Edwards Deming institute board, and others who were consulted, worked with Dr. Deming at the seminars and consulting visits. There are also contemporaneous notes from seminars that were used to confirm quotes. I also include links to passages in books (or videos) where Dr. Deming covers the same ideas using slightly different words.

In my opinion those links provide evidence that the quote is reasonable to attribute to Dr. Deming and the links also provide context in which to understand what he meant.

There are also quotes often passed on as by Dr. Deming when really he quoted someone else in one of his books. When he did so, he made it clear who deserved credit for the quote but that is often lost in what people share. We are providing the proper attribution for quotes Dr. Deming attributed to others.

Related: Deming Library Video with Dr. Deming Discussing the 14 PointsProfit and growth come from customers that boast about your products and servicesArticles by W. Edwards DemingBlog post number one for The W. Edwards Deming Institute Blog

The W. Edwards Deming Institute 2014 Fall Conference, Oct 16-19

The W. Edwards Deming Institute® 2014 Fall Conference will be held at Airtel Plaza Hotel in Van Nuys, California. The theme for this years conference is Innovation for Success: creating a foundation for leading in business and education.

Annual Fall Conference
October 17 – 19, 2014

Pre-Conference Session on Education and Quality Learning
October 16 – 17, 2014

The W. Edwards Deming Institute, in collaboration with California State University, Northridge presents a weekend conference on innovation, the foundation for the future. Speakers from business and education will share their journeys with Dr. Deming’s teachings and the powerful impact they had on their lives, businesses and communities.

Join us for an introduction to Dr. Deming’s transformational philosophies, compelling personal stories from industry leaders, and moderated speaker panel discussions. You will also have an opportunity to meet with conference presenters, family members of Dr. Deming, and other attendees who are successfully using Deming’s teachings in their organizations. You’ll leave with new knowledge and inspiration to create a more successful future by leading through innovation today.

Plenary Sessions and Keynote Presenters:

  • Introduction to Deming’s Theories – for 2015 & Beyond: Discover how Amazing things happen, Kelly Allan, Senior Associate, Kelly Allan Associates, Ltd.
  • Kevin Edwards Cahill, President & Executive Director, The W. Edwards Deming Institute
  • It Takes an Enterprise: current neuroscience and knowledge of psychology, Edward Chaplin, Medical Director of Co-Management and Quality for Care Lines, Scripps Health
  • Harold Hellenbrand, Provost & Vice President for Academic Affairs, California State University, Northridge
  • Ron Moen, Co-Founder & Partner, Associates in Process Improvement
  • A Transformed Leader, Phil Monroe, US Navy Captain (Retired)

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Deming Library Video with Dr. Deming Discussing the 14 Points

The clip above begins with Dr. Deming discussing a facet of the Deming chain reaction:

With better quality and lower costs you can capture the market with better quality and lower price. It will help you to stay in business, provide jobs, and more jobs.

These clips are taken from the Deming Starter Library on the 14 points for management. Llyod Dobbins is the narrator and the animated character is by Pulitzer-prize-winning cartoonist Pat Oliphant. As is mentioned in the video Dr. Deming approved the wording, so when Lloyd Dobbins is speaking the wording represents Dr. Deming’s view.

Llyod Dobbins:

The 14 points will lower costs, but that isn’t the point. They will create better products for the consumer, quality will go up and so will our skills.

Dr. Deming:

Finding what is wrong is not improvement of the process. If there were a fire here in this building and somehow we put it out that is not improvement, that is putting out fires.

that is a path toward destruction because they are not studying the system, they are managing outcomes, managing defects instead of looking at the system that produced the defects.

In my opinion the video above is packed with great material. It continues with Llyod Dobbins saying:

Each of Deming’s 14 points is implicit in all of the others. The way not to depend on mass inspection (point 3) is to continually improve the process (point 5). To do that you will need quality supplies (point 4). If finding a quality supplier takes time, well remember point 1, constancy of purpose. And also remember to adopt the new philosophy, which just happens to be point 2. No one of Dr. Deming’s points stands alone, nor did he intend that one should. The 14 points are one philosophy, an original way of looking at business and industry or anything else.

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The Principles and Methods for Improvement are the Same in Manufacturing and Service Companies

All that we learned about the 14 points and the diseases of management applies to service organizations, as well as manufacturing. In this chapter we focus on service organizations.

A system of quality improvement is helpful to anyone that turns out a product or is engaged in service, or in research, and wishes to improve the quality of his work, and at the same time to increase his output, all with less labor and at reduced cost. Service needs improvement along with manufacturing.

The principles and methods for improvement are the same for service as for manufacturing. The actual application differs, of course, from one product to another, and from one type of service to another

W. Edwards Deming, Out of the Crisis, page 183

For some reason some people think Dr. Deming only talked about quality improvement on the factory floor. That isn’t at all accurate. Even in talking to manufacturing companies most of his effort was focused on changing the behavior, thinking and processes in the executive suite not the factory floor. He did also focus on improvements on the factory floor but it was always in the context of the entire company including many areas for improvement that were like other service or knowledge work (sales, purchasing, customer research, accounting, education, managing people, research and development, training, customer service, etc.).

While great strides were made at companies like Toyota and Ford (both on the factory floor, in the executive suite and in many non-factory floor areas of the companies) there was also great work at many organizations that were not manufacturers. Chapter 7 of Out of the Crisis specifically discusses examples from service companies: banking, insurance, government, electric utility, railway, telephone company, municipal transit system, hotel, postal service, airlines, restaurant, etc..

I do find that some of the service examples show the age of the book. It is amazing the thrust of the book is just as relevant today as when Deming wrote it. The management ideas have aged very well.

Sadly the problems with existing management mentioned throughout his books are also stubbornly prevalent today. It seems to me a great deal of good thinking on process improvement has been adopted by a fair number of companies. And there is a much greater use of quality tools and thinking today. There is a much better, though still very inadequate, appreciation for systems thinking and understanding the need to fix the management system in order to fix persistent problems.

The successful improvement on the factory floor seems to show the greatest improvement over the last 50 years, in my opinion. In the last 10-15 years there has been a great deal of good work in health care and software development. And there have been great efforts in hundreds of organizations across most any industry I can think of.

There is still plenty of room for improvement on the factory floor, in health care, software and everywhere else. Unfortunately, the room for improvement in the executive suite is nearly as great as it was when Dr. Deming first focused on addressing the need for transforming the management of our organizations.

Related: Dr. Deming’s Ideas Applied in High School EducationFree, Perfect, and Now by Robert RodinFewer Patients-In-Process and Less Safety Scheduling; Incoming Supplies are SecondaryDeming and Software Development

Using Deming’s Management Ideas to Reduce Violence in Prison

In the last post we began to look at the efforts to improve the Maine State Prison. The efforts to adopt a management strategy and practices guided by an understanding of Dr. Deming’s management system are hampered by the overall management system. This is a common situation. The current state could best be seen as what David Langford discussed at the 2012 Deming Institute conference’s ago, where those interested in Deming’s ideas seek to adopt systemic management improvement thinking where they have authority.

Bill Feuss, Jon Parker and Michael Rubell at the Deming Research Seminar

Bill Feuss, Jon Parker and Michael Rubell at the Deming Research Seminar. The efforts to improve the performance of the prison using Deming’s ideas have been presented at 2011, 2012 and 2013 Deming Research Seminars at Fordham University. Photo by Judy Cahill

As Jon explained the experience so far at the Maine State Prison, where he is able to use Deming’s in his area of authority (within his team of officers):

My Officers that work directly for me have worked to understand and use Dr. Deming’s philosophy. As I have explained the approach and used it to solve and understand many of our immediate problems; they have come to realize the potential and actual power of using it themselves. The Officers that have read the New Economics have been amazed by how well it explains our organizations problems, and more importantly how to solve them. Unfortunately we are but one small part of a much larger system that does not understand itself.

The focus in the efforts at the prison started with making visible the underlying processes. As Jon says, “you can’t fix what you can’t see.” Flowcharts are also very helpful in getting people to think about process instead of just outcomes. Flowcharts make it easier for many to visualize the organization as a system. At the prison, Jon says:

The most powerful effect that flowcharting has had for my officers has been to understand and to see what is creating the negative outcomes. Thus bringing to life the power of the tool and validating the work they had to do to collect the data. This then allows us to tap into the direct knowledge, intrinsic motivation, and creativity of my officers to begin PDSA.

Reading the New Economics has also been a valuable method to help officers open their minds to new ways of viewing the workplace. This new vision allows them to more effectively seek systemic solutions to achieve reliable results that are sustainable over the long term.

They have also intentionally attempted to increase intrinsic motivation and decrease reliance on rewards and punishment within the prison.

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Applying Deming’s Management Ideas at the Maine State Prison

Jon Parker learned about Deming’s management ideas while serving in the United States Navy. The Navy had a huge effort to use Deming’s ideas (under the Total Quality Leadership) in order to improve performance, especially during the 1980′s and 1990′s.

After leaving the Navy Jon went to work at the maximum security Maine State Prison and found another environment in which applying Deming’s management ideas could help. As he pursued attempts to bring this thinking into the prison he had challenges (as we always do) and also found others very interested in finding new ideas on how to improve results at the prison.

Early in his efforts one of his officer’s said: “You’re like a laser understanding and isolating problems; how the hell do you do it?”

Jon’s response was that “Dr. Deming’s work gives us a special set of glasses to see what is normally hidden in our organizations.”

Jon’s colleagues that work with him on the front line of the prison “are motivated to solve their own problems, not simply because it will simplify their work environment, but because their lives depend on it.”

Applying Deming’s Principles in a Prison

When he [Jon] began working at Maine State Prison, Parker was shocked that his colleagues were unable to see the systemic problems that reinforced violence in the prison.

He set out to find a way fix the violence by applying Deming’s principles. Lacking formal institutional support, Parker began examining the way things worked at the prison. He discovered a lack of communication between management and front-line corrections officers, lost information, and a top-heavy management.

“This is where conflict is invited by management. When [an officer] has a confrontation with an inmate, what do you think happens? It may be a screaming match between the two of you; the inmate may remember it and wait until later on to get you,” Parker said. “And often blood is associated with this.”

One of the areas they decided to tackle was reducing violent confrontations at the prison.

By taking a systems view it is possible to address not just individual symptoms as they appear but to work on reducing the conditions that lead to problems. This is not always easy and when you are working in a stressful environment, like a prison, that magnifies the challenges.

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Sustainability as National Imperative

Mark ‘Puck’ Mykleby, USMC Colonel (Ret.), Senior Fellow, New America Foundation and co-author of A National Strategic Narrative.

Mark provided a very large global systems view of where we are and the future we face. From the largest macro systems risks can be seen to the national security of the USA (and all other countries). Addressing these issues requires thinking systemically.

We cannot just put the old system on life support, we need a new system.

We have to start with the economy. And by the way it is not about doom and gloom… We can design anew, think anew and act anew.

In the clip Mark discusses the present danger and the grand strategy to address the challenges we face. He discussion opportunities that we can direct capital to that will provide economic profits and address sustainability: walkable communities, regenerative agriculture, productivity revolution (to provide for the demand of 3 billion new members of the global middle class).

I liked the statement he included in the talk: “If you want a new idea, read an old book.” while discussing good new ideas from an old book. And from an old document he quotes some pretty powerful words:

“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”

from the preamble to the United States Constitution.

Related: Approaching Sustainability Using Deming’s ThinkingProcess Thinking at PatagoniaBrian Joiner Podcast on Management, Sustainability and the Health Care System