A new edition of a book that details the system of transformation underlying the 14 Points for Management presented in Deming's Out of the Crisis .
It would be better if everyone would work together as a system, with the aim for everybody to win. What we need is cooperation and transformation to a new style of management. ” from The New Economics for Industry, Government, Education
In this book, W. Edwards Deming details the system of transformation that underlies the 14 Points for Management presented in Out of the Crisis . The Deming System of Profound Knowledge, as it is called, consists of four parts: appreciation for a system, knowledge about variation, theory of knowledge, and psychology. Describing the prevailing management style as a prison, Deming shows applying the System of Profound Knowledge increases productivity, quality, and people's joy in work and joy in learning. Another outcome is short-term and long-term success in the market. Indicative of Deming's philosophy is his advice to abolish performance reviews on the job, to look deeper than spreadsheets for opportunities, and even to rethink how we teach and manage our schools. Moreover, Deming's method enables organizations to make accurate predictions, which is a valuable tool in today's uncertain economic climate.
This third edition features a new chapter (written by business consultant and Deming expert Kelly L. Allan) that explains the relevance of Deming's management method, and case studies from organizations that have adopted Deming's System of Profound Knowledge, and offers guidance on how organizations can effectively “do Deming. ”
About the Author
W. Edwards Deming (1900–1993) was international consultant in management and quality. In 1987, he was awarded the National Medal of Technology and Innovation by President Ronald Reagan.
Table of Contents
Description of Figures vii
Foreword to the Third Edition ix
Foreword to the Second Edition xv
About the Author xvii
1 How Are We Doing? 1
2 The Heavy Losses 17
3 Introduction to a System 35
4 A System of Profound Knowledge 63
5 Leadership 79
6 Management of People 83
7 The Red Beads 107
8 Shewhart and Control Charts 119
9 The Funnel 131
10 Some Lessons in Variation 143
11 Why Deming? … Why Now More Than Ever! Kelly L. Allan 157
Appendix: Continuing Purchase of Supplies and Services 205
What People are Saying About This
Healthcare has made some strides to improve outcomes while reducing costs. But there is so much more that can be done. The opportunities are great and pathways are known. Deming showed them to us first in Out of the Crisis. He gave us even more guidance in The New Economics. Anyone in charge of a health care entity, or any other entity for that matter would benefit greatly from reading and studying both books.Donald M. Berwick, President Emeritus and Senior Fellow, Institute for Healthcare Improvement
Following Deming's teachings helped us weather the great economic recessionand then to move forward to double the size of the company, profitably, shortly thereafter. Deming's approach is a continuing source of competitive advantage and rapid growth. Sherm Moreland , CEO, DesignGroup Commercial Architects & PlannersWe started our Deming journey when I attended Dr. Deming's seminars and then began meeting privately with him decades ago. His book, The New Economics , with this new chapter, applies Deming's brilliance to everyday leadership challengesas well as to strategic ones. Deming once said, 'There is no substitute for knowledge. ' I believe there is no substitute for Deming. Our privately-held, international company runs on Deming. Paula Marshall , CEO, The Bama Companies, Inc.
Deming's profound insights stand the test of time. Every leader who cares about improving quality in the deepest sense of the wordthat of making people's lives bettershould be well-read in Deming's philosophy and methods. To understand Deming is to grasp how society and the economy can work smarter, not just in the name of efficiency, but in the cause of humanity. Jim Collins , author of Good to Great , coauthor of Built to Last Using Dr. Deming's leadership philosophy helped us scale up quickly and profitably. Our employees were delighted with this enlightened and effective approach. Within a few years the company went public on the Nasdaq stock exchange. Keith Sparkjoy , cofounder, PluralsightOur company owes a huge debt to Dr. Deming's insights about how to lead and operate. Pride and joy in work, client satisfaction, growth, and quality are all high and sustainable. Travis Timmons , health care entrepreneur and President, Fitness MattersHealthcare has made some strides to improve outcomes while reducing costs. But there is so much more that can be done. The opportunities are great and pathways are known. Deming showed them to us first in Out of the Crisis . He gave us even more guidance in The New Economics . Anyone in charge of a health care entity, or any other entity for that matter would benefit greatly from reading and studying both books. Donald M. Berwick , President Emeritus and Senior Fellow, Institute for Healthcare Improvement