From The Practice of Management by Peter Drucker, The Demands of the Enterprise on the Worker (page 268): The enterprise must expect of the worker not the passive acceptance of a physical chore, but the active assumption of responsibility for the enterprise’s results. This attitude not only is necessary for organizations to prosper today, it [...]
Martin Fowler offers insightful details on the problems with using sales commissions (click on the right arrow button at the very top middle to see the next slide). Some quotes from his presentation: there are serious problems with the sales commission model, problems that led ThoughtWorks to get rid of all sales commissions in 2013 [...]
Joe Dager, Business 901, has published an interview with me in a podcast: Dr. Deming on Lean in 2012. I hope you enjoy the podcast. Download podcast directly or via the Business901 iTunes Store. I discussed some of my history with Dr. Deming’s ideas on management and my thoughts on the application of those ideas [...]
The greatest waste in America is failure to use the ability of people. … Money and time spent for training will be ineffective unless inhibitors to good work are removed. Page 53, Out of the Crisis by W. Edwards Deming The power of Dr. Deming’s ideas on management increase the more deeply they are explored. [...]
Dr. Deming explained that paying sales commissions to staff introduced distortions into the organization that damaged overall performance. Each topic has different connections to Deming’s system of profound knowledge, as he laid it out in the New Economics. The problems with sales commissions heavily touch on all of the four areas of the management system. [...]
In Out of the Crisis, page 101, Dr. Deming states the following as one of the seven deadly diseases: Evaluation of performance, merit rating, or annual review… The idea of a merit rating is alluring. the sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people [...]
The System Of Profound Knowledge® (SoPK) is the culmination of W. Edwards Deming’s work on management. The four areas of the system are: appreciation for a system, knowledge of variation, theory of knowledge and psychology. This post explores the psychology in the context of Dr. Deming’s management philosophy. Many only recall Dr. Deming’s thoughts on [...]
From page 3 of Out of the Crisis Improve Quality —> Costs decrease because of less rework, fewer mistakes, fewer delays, snags, better use of machine-time and materials —> Productivity Improves —> Capture the market with better quality and lower price —> Stay in Business —> Provide jobs and more jobs The prevailing action during [...]
Dr. Deming added 2 diseases to the lists after this video. He was always learning and updating his thoughts and recommendations. As we have stated earlier, this blog attempts to continue that practice by examining Dr. Deming’s ideas and also looking at how those ideas have evolved as they have been applied. List of the [...]
The W. Edwards Deming Institute is proud to announce our first blog. The aim of The W. Edwards Deming Institute® is to foster understanding of The Deming System of Profound Knowledge™ to advance commerce, prosperity and peace. With the blog we aim to further the aim of the institute. Dr. Deming’s personal aim was to [...]