Deming’s Business Transformation

Doctor W. Edwards Deming is undisputed authority in field of ensuring quality and increasing productivity. In his publications he dedicates a lot of place to common all over the world style of management and necessity of it?s transformation. Based on specific examples he proves, that measures of effectiveness based on accounting index leads employees to achieve imposed selling, margining and costs goals often by manipulations of process and data. Short-term management, caring about only the look of numbers in the end of quarter, management by goals or valuation of employees – those all are practices, which has to end as soon as possible. Transformation of current management style is necessary. It is a long-lasting process and should begin on managemnet level. Leader of transformation and involved managers needs to learn the psychology of the unit, group, system and changes. It?s also necessary to understand the theory of variation, including appreciation of stabile system and understanding natural and special causes of variation.

Transformation, according to Deming, needs a glance from the outside, some perspective, which will allow to understand the organization. This perspective is called System of Profound Knowledge. Its bases include four elements: system appreciation, understanding variation, knowledge theory and psychology.

Particular segments of System of Profound Knowledge can not be separated from each other, because they are formed as inseparable whole. So, psychological knowledge is not complete without knowledge about variation. Person managing the group of people needs to understand that everybody is different and efficiency of every human being largely depend on system he works in. In other words: it depend on management.