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Page 1
Management, Values and Dr. Deming
Introduction
This paper is intended as background for a workshop or discussion so will probably stay
in a draft kind of format, at least in places. It starts by looking at some issues for
organisations and on studies of ‘learning organisations’. Various ways of looking at Dr
Demings’ views are explored. There are implications that may contribute some solutions.
‘Management’ is used in the title, as this is the term most often used when describing
quality systems. This paper follows a previous one for the first ‘Theory at Work’
conference. This looked at the 2000 version of ISO 9000. Some of the themes are
repeated but issues around leadership development will be covered in the later section
looking at the implications. It will be shown that leaders can develop by recognising their
role within a quality system and their own knowledge of quality theory, something that is
also under development.
In a keynote for the previous conference John Burgoyne spoke about the ‘virtual,
knowledge-managing, learning’ organisation as a general description of many situations.
This remains widely relevant. As one of the papers in this workshop is about eLearning I
will only expand on this to explain some examples I am directly concerned with.
‘Disruptive technology’ from the computer industry has been impacting print for at least
twenty years. A recent Printweek editorial argued that UK print is not ‘falling off the edge
of a cliff’ though clearly there are some problems that raise the question. Technical
changes can create similar problems for computer companies. There are two sections at
the end looking at Network Publishing and the use of PDF with e-learning. Disruptive
technology could have an effect on university bookshops or on archives so some of the
issues are fairly general.
Figure B has some elements that need re-arranging. Instead of a historical sequence it
could show how people move between positions depending on circumstances. One aspect
of a workshop is an invitation for people to take from it what makes sense for them.
Page 2
Failing Difficulties in
Organisations application of theory.
Problems
because of non- Very few examples of
for
learning learninmg organisations.
practitioner
Based on ‘the problem solving process’ figures 2.6 to 2.9 in ‘The Learning Company’
Mike Pedlar, John Burgoyne, Tom Boydell
McGraw Hill 1991
A
Figures A and B are there to be changed. Available as Word files as well as PDF.
NOT
Action
Learning
Organisational
Learning Critique
Co-ops
Social Economy Learning
Organisation
Ethics
B Managerialism
Part of the debate is a view of knowledge in two modes (Gibbons, '94), described by
Chris Grey as “mode 1 - theoretical and discipline based” and “mode2 - problem-focused
and transdisciplinary”. Academics seem to prefer mode 1. Combining disciplines happens
rarely. For example at Lancaster, Management Science is unlikely to be considered at a
conference linked to Management Learning. (Obviously this bit will be changed if people
from Management Science turn up…..) Soft Systems Methodology is arguably a support
for learning (Checkland '95), yet it is hard to find any published connection with work on
learning organisations.
Chris Argyris and Donald Schon hang on to the word 'Productive' in the Preface to
'Organizational Learning II'. "We are mainly interested in productive (their italics)
organizational learning, recognizing that the meaning of this term can be defined only in
general outline and requires specification in each particular context in which it may
occur'. Meanwhile looking at the website for the forthcoming conference on Critical
Management Studies, a word such as 'managerialist' is more likely to be used as part of
'crit-speak' .
This kind of transition is not limited to the UK. Kenneth N. Ehrensal explains his own
experience in an introduction to a paper on how Critical Management Studies are viewed
in the US. “In 1985 I obtained my first appointment on a business school faculty. At the
time, I was there to be an anthropologist on the Management faculty to teach aspiring
international managers about culture and cross-cultural relations. In the last five or six
years I have repositioned my career, becoming an anthropologist of the business school
faculty.”
Brad Jackson’s book on ‘Management Gurus and Management Fashions’ takes this
further into a study of how management ideas work as drama and/or rhetoric. The
emphasis is on a critique of the ideas rather than a consideration of how they might work
in practice. One of the sections is on “Senge and the learning organisation” and this
includes comments on links with quality that will be covered later. However the
introduction to the book covers “fads” from the ‘90s and the influence of a few
individuals. TQM is included in the “fads” and the “founders” are stated as W. Edwards
Deming, Joseph Juran and Philip Crosby. Although they were each active in the 90s, their
history is worth looking at more closely. For the purpose of this paper, the next section
concentrates on W. Edwards Deming.
Takes on Dr Deming
Dr. Deming is regarded in various ways. Some link him to a discredited TQM. Others
seem to question whether his ideas have yet been widely tried in the US and UK. It is
proposed to examine the values that might support the application of his ideas. These
include Asian values, for example in ‘50s Japan, US pragmatism and collective working
in co-operatives and the social economy. The guide to his ‘fourteen points’ below is taken
from an article by Kosaku Yoshida. In a discussion on this, William A.Gomolski wrote
that Deming’s work has had three lives – from Japan, from the US, and in books. There
was also an earlier life as a student and editor for Walter Shewart. Henry Neave has
covered the history recently in a lecture for the Institute of Quality Assurance (IQA).
Some of the material is available on the web from his inaugural lecture at Nottingham
Trent.
In 1925 and 1926 Deming had summer jobs at Western Electric in Chicago. There he met
Walter Shewart and learnt about statistical process control. The sequence of ‘plan-do-
study-act’ was presented as part of systems thinking. Deming worked in the ‘40s on the
government census and this was the subject for his first post-war visit to Japan.
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“A second visit to Japan, again to work with the census people, was planned for summer
1950. By this time, Dr Deming's name and reputation had become known to Ken-ichi
Koyanagi, Managing Director of JUSE, the Japanese Union of Scientists and Engineers,
an organisation set up soon after the war ended, having the aim to help Japanese industry
get on its feet again. Koyanagi issued an all-important invitation for Dr Deming to also
teach concepts and methods for the achievement of quality in industry. During that visit
his teaching not only reached hundreds of engineers, plant managers, research workers,
and so on: it also reached top management. A particularly famous meeting was held in
July 1950 with the 21 top industrialists of Japan present, a meeting later described as the
occasion at which Dr Deming had in that one room 80% of the industrial capital of Japan
right in front of him. Deming regarded that as the breakthrough: that those top people
came to listen and learn from him.”
This extract from Henry Neave’s lecture is worth quoting in full as it shows how the ideas
were first formulated. The section is headed "The theory of a system, and co-operation".
The involvement of management is a major contribution to make this possible. Kosaku
Yoshida argues that Japanese approaches to management are holistic while American
approaches are analytic. He also sees another factor as being Japanese approach to
‘desirability’ as a source for continuous improvement. Americans will work within
acceptable limits. Yoshida categorises most of the 14 points as having to do with ‘holistic
thinking, including co-operation’.
Henry Neave points out that in Japan Deming relied on others to teach statistics while he
concentrated on “the theory of a system, and co-operation.”
In the US, interest in quality followed competition from Japan. In 1980 Deming was
interviewed for a programme on NBC with the title: If Japan Can, Why Can't We? Henry
Neave’s questioned Deming’s narrow focus in this interview. “He was mainly back to just
talking about statistical methods in a manufacturing context again - just where things had
been 55 years earlier!” Deming explained that at that time he thought that was all people
would be able to take.
“Although the words total quality have now been borrowed from Japan and are widely
used in America, they may not have the same meaning. Total quality in the American
context too often means impossibly high, theoretical standards foisted by engineers on
workers, in short, business as usual.”
However, in ‘Mastering the Infinite Game’ (1997) the same authors recognise Deming’s
contribution to Japanese quality and show a circle of quality as ‘plan-implement-check-
act’. (See below for another version of this). They state that this circular thinking is
culturally compatible for Japanese managers. “The circle exemplified action-learning, not
the hypothesis and deduction of traditional inner-directed science.”
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There do seem to be two different people, the Deming associated with ‘80s TQM in the
US and the Deming associated with ‘50s Japan. The question is how far his ideas have
been actually applied. Henry Neave draws attention to an interview in The Washington
Post, January 1984:
“Question
You've been very successful in attracting people to these seminars.
Isn't that encouraging to you?
Dr Deming
I don't know why it should be. I want to see what they're going to do. It will take years.”
These sections look at three aspects of Deming’s work that could be used in finding
current relevance. Asian values are a starting point. The roots of the ‘system of profound
knowledge’ relate to American pragmatism. The word ‘co-operation’ is often used
without a tight definition. However since people writing about Deming often use it, it is
worth looking for connections with ways of working in co-operatives and the social
economy.
Asian values
There is only space here to mention some sources. There is another paper during the
conference – Towards an Understanding of Organisational Transformation through
Ethical Enquiry by Bronwen Rees & John Wilson. I assume this will probably establish
some basis to refer to, guessing some of the approach from earlier writing. There has been
a version as ‘Organising Realities: A Buddhist Perspective’ and some of the content from
this appeared as part of an article in Topics by Bronwen Rees on ‘Organising for global
change: who takes responsibility?’ This includes ‘Rather than attempt to draw up ethical
principles…organisations need to build a process for developing a joint ethical practice-
thereby enhancing and inviting true collaboration at the level of values.’
In ‘Cultures and Organisations’, Geert Hofstede shows how surveys that work well for
much of the world need to be adapted for ‘Confucian values’. He bases this on a 1987
survey by Michael H. Bond and others- ‘The Chinese Culture Connection’.
At the ‘Connecting Learning and Critique’ conference there were various starting points
for alternatives to mainstream business thinking. One paper was on Wuwei Management,
based on Confucian values. The project is based at the Department of Product Design
Engineering, Norwegian University of Science and Technology with some help from
Peter Senge from MIT. There is no reluctance to consider some practical results. The
projects are mostly in Europe so the implication is that Asian values can be interpreted.
This section has not taken up much of the paper but could take a higher proportion of time
at the workshop.
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Pragmatism
Again this section is a more like a set of links than a full exploration of the issues raised.
Exploring ‘the system of profound knowledge’ could take up the time for many future
meetings of Deming studies.
Pragmatism needs to be looked at, as it seems to be a major influence on Deming and also
could be a contribution to whatever develops in an Asian context. In ‘Metaphysics and
Management', Robert Chia discusses Western empiricism and quotes William James-
“May not the flux of sensible experience itself contain a rationality that has been
overlooked, so that the real remedy would consist in harking back to it more intelligently,
and not in advancing in the opposite direction away from it…to the pseudo-rationality of
the supposed absolute point of view. I myself believe that this is the real way to keep
rationality in the world, and that traditional rationalism has been facing in the wrong
direction.” (James, 1909/96: 73)
Robert Chia comments that ‘this turn towards experience and away from abstract
representations marks a genuine alternative to realism. It is a world view that resonates
deeply with Eastern thought.’
The links back from Deming to pragmatism have been explored by William C. Towns,
concentrating on C.I. Lewis.
If this area was explored more, it might be possible to present John Dewey’s ideas on
education as based on the same sources as quality assurance. Currently most people in
education seem to regard anything to do with quality as a monstrous imposition and very
little energy is put into study of alternative quality ideas. For example Ted Wragg
(Guardian Education June 4 2002 p7) suggested that trust in the world of education could
only be restored by “an explosion destroying every single tickbox, mission statement,
spurious kwality assurance document etc etc.”
It might be relevant that quality assurance started with the aim of getting rid of inspection.
J.M. Juran writes about the 1920s Hawthorne Works of Western Electric in his chapter on
‘A History of Managing for Quality in the USA’. One problem he identifies is that the
reliance on inspection and test fostered a belief that only the inspectors needed to be
concerned with quality. In 1928 there were 40,000 people in the plant, “of whom 5,200
were in the quality department”. The whole direction of quality assurance has been to
reduce this kind of proportion and reduce the need for inspection.
Deming made specific comments on the use of grades in education. “Improvement is cut
off at an early age – children are told to get a good grade.” There is more on this in the
book ‘Four Days with Dr Deming’. There is more on grades in general below.
In one of the articles in ‘Schools That Learn’, James L. Evers recalled how rote
memorization became popular in the US after the Russian Sputnik. “The John Dewey-
inspired principles for meeting individual learning needs, under which I had been
schooled and where I had developed my love for learning, were denounced as
‘progressive education’ and blamed for the student’s failure.” Possibly e-learning is an
opportunity to re-introduce an emphasis on individual learning needs. Also e-learning
happens through organisations so a developed quality system is relevant.
Exetreme has worked on websites for the Centre for Evidence-Based Social Services.
These are not e-learning sites as such but some of the ideas influence design. Clearly
there are claims for ‘objective evidence’ but also encouragement for critical appraisal
skills. Pragmatism can be used as a basis for critique, as demonstrated by work on
‘knowledge management’ by Narayanan and Fahey. There could be another workshop
around this at another time.
Page 7
Co-operation / Social Economy
The scope of discussion about co-operatives has got wider recently. The European
Commission has used the term ‘social economy’ to include different forms of
organisation throughout Europe. New Labour has discontinued reference to ‘common
ownership’. The Co-op Party is now interested in ‘mutualism’ as a way to be more
inclusive.
However co-operative principles have been well documented by the International Co-
operative Alliance (ICA). A useful reference for this conference is the book ‘Principled
Management', published by the Co-ops Research Unit. Two connections are shown
below. The whole table might infringe copyright. The table shows how ‘modern
management ideas look as if they were born within the co-operative movement’
Another relevant link is through a version of Kolb’s learning diagram, part of a discussion
on learning at the group level. This could be related to single-loop and double-loop
learning. The structures may be different in co-operatives but some of the features of
organisations are the same.
I think it is interesting that some of the businesses connected with the Friends of the
Western Buddhist Order were at one point structured as co-operatives. There could be
some kind of benchmarking; for example a warehouse operation compared with Suma.
Suma has been studied at several stages in development and has implemented Investors in
People. My own view is that some sort of formal quality system would help as well but
IIP seems to work for them. Again, this is an area to come back to.
Leadership
The paper will not cover history in much detail. Details on Deming and Juran in Japan are
included in ‘The Recent History of Managing for Quality in Japan’ by Izumi Nonaka. It
seems more useful to look at the elements contributing to Deming’s work in the ‘50s and
consider how to interpret them in future. Without looking at Asian economies in detail,
we can consider texts as they influence policy in the west. Two examples could be the
picture in ‘Mastering the Infinite Game’ and the argument in Kosaku Yoshida’s ‘revisit’
to Deming’s 14 points. In discussion, Yoshida admits that his article is not based on
empirical evidence and ‘has a tendency to overgeneralise the nature of American and
Japanese organisations’. The article was written in 1996 and even then there were
changes happening away from traditions such as lifetime employment. However Yoshida
stated that ‘Japanese management will never easily throw away advantages such as long-
term commitment to its employees, securing trained workers, emphasising the solidarity
of the entire company, and accenting trust between management and employees.’
Yoshida looks at Deming’s 14 points in two groups associated with two main distinctions
between American and Japanese approaches. One is that Americans are analytic,
believing that if each part is perfect then the aggregate should also be perfect. Japanese
are holistic, encouraging co-operation and long-term views. Also Americans tend to
accept results within limits, while Japanese seek the centre of desirability. This connects
with continuous improvement. The points shown below are in a shorter form than in the
original text. References to leadership are in bold.
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Founded on desirability
Point 3.
Eliminate the need for mass inspection by building quality into the product in the first place.
Point 5.
Improve constantly and forever the system of production and service to improve quality
and constantly decrease costs.
Point 6.
Institute training on the job.
Point 13.
Institute a vigorous program of education and self-improvement.
Point 4.
Stop purchasing based on cost. Move towards a single supplier for any one item. Build a
long-term relationship of loyalty and trust.
Point 7.
Institute leadership. The aim of leadership is to help people and machines and gadgets
to do a better job.
Point 9.
Break down barriers between departments.
Point 11 A
Eliminate work standards (quota) on the factory floor. Substitute leadership.
Point 11 B
Eliminate management by objective. Eliminate management by numbers, numerical
goals. Substitute leadership.
Point 12 A
Remove barriers that rob the hourly worker of the right to pride of workmanship. The
responsibility of supervisors must be changed from sheer numbers to quality.
Point 12 B
Remove barriers that rob people in management and in engineering of their right to pride
in workmanship. Abolish annual merit ratings and management by objective.
Point 14
Put everybody in the company to work to accomplish the transformation.
The two other points are ‘Drive Out Fear’ (point 8) and point 2 – ‘Adopt a new
philosophy’. According to Yoshida, an earlier version of point 2 was “We are in a new
economic age, created by Japan”. ‘Drive Out Fear’ could be in either of the groups above.
Control charts are not used to impose targets but to show a holistic view of the process.
From this version of the 14 points it appears that a role for leadership is to support a
holistic view of organisations. Yoshida reports that Deming would not use the term TQM.
Yoshida’s conclusion is that “TQM as practised in the US is analytic, and the Deming
philosophy is a holistic approach that is most absent within the American business
culture.”
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Systems
This diagram is shown in ‘The Learning Organisation’ (see above) in connection with
‘80s TQM but is actually from lectures in Japan in 1951
Recently the IQA has included a Deming special interest group. An amended version of
the diagram shows management instead of design. Versions of this have been used to
show how this could relate to ISO 9000 and to double-loop learning. These are A4 within
this paper so they can be printed separately and amended.
There are objections to models such as double-loop learning. Chris Grey describes it as
‘performative’ so limited to the aims of an organisation. Maybe this has to do with
philosophical questions of how knowledge exists outside of experience. There is
something about pragmatism and Asian values that supports Deming’s approach. In
‘Mastering the Infinite Game’, there is reference to several Western scholars “who
originated the concepts East Asian now use.” These include Deming as well as Peter
Senge, Chris Argyris and Donald Schon who are also covered in ‘Against Learning’.
‘System Review’ can be based on what Deming called the Shewart cycle. This is
effectively a model of learning.
Page 10
----------------------
From here the rest is currently in note form. There will be
amended versions later. This 'paper' is intended for a
workshop so is not intended to be conclusive. Most of the
notes below show where other contributions would connect.
There will be a web page version so some of it may go into
'chat mode'.
Management Learning
Page 11
Enterprise Viewed as a System
Strategic Level
Context &
Creative Input
Market
Support Processes
Operational Level
Copyright 1998-2002 Alan C. Clark With acknowledgement to W. Edwards Deming. Elaine Torres, Terry Petersen, Geri Jones and Michael Simmons
Enterprise Viewed as a System
Strategic Level
Strategic
Leadership:-
Refine the Aim
Context &
Creative Input Design and Understand Market
Redesign of Customers
System and & Market
Outcomes Double or Context
Loop
Single
Loop
Suppliers Learning
Customers
Inputs
Outcomes
Primary Processes
Copyright 1998-2002 Alan C. Clark With acknowledgement to W. Edwards Deming. Elaine Torres, Terry Petersen, Geri Jones and Michael Simmons
Enterprise Viewed as a System
Strategic Level
Strategic
Leadership:-
Refine the Aim
Context &
Creative Input Design and Understand Market
Redesign of Customers
System and & Market
Outcomes or Context
System Review
Customer Complaints
Contract Review
Reports of Production Problems
Primary Processes
Copyright 1998-2002 Alan C. Clark With acknowledgement to W. Edwards Deming. Elaine Torres, Terry Petersen, Geri Jones and Michael Simmons
Conclusion on Leadership
Other Conferences
Page 14
This diagram is for the European Excellence Model. Versions
go back to the Baldridge criteria.
History
Page 15
References
Web
http://www.iqa.org
Institute of Quality Assurance
http://www.difl2003.com/index.htm
Data, Information and the Future of Learning
July 23rd - 26th, 2003 The Peabody Hotel, Memphis, Tennessee
http://www.olk5.org
Organizational Learning & Knowledge
5th International Conference
30th May - 2nd June 2003 - Lancaster University
http://www.cms3.org
Critical Management Studies 3 Conference
7th - 9th July 2003 - Lancaster University
Hard Copy
Page 16
Against Learning
Chris Grey
JIMS Working Paper 0104
http://www.jims.cam.ac.uk/research/working_papers/abstract_01/0104.html
PDF direct
http://www.jims.cam.ac.uk/research/working_papers/abstract_01/wp0104.pdf
Page 17
Organising Realities: a Buddhist perspective
Bronwen Rees, Atula, Danavira
Paper presented at the Employment Research Unit, Cardiff, September 2002
www.fieldbook.org
Page 18