Three Sigma Systems

Obstacles to Deming’s Transformation

Mencius (Meng Tse) said, “Don’t suspect that the king lacks wisdom. Even in the case of the things that grow most easily in the world, they would never grow up if they were exposed to sunshine for one day and then to cold for ten days. It is seldom that I have an audience with him, and when I leave, others who expose him to cold arrive. Even if what I say to him is taking root, what good does it do?”

Quote Posted by Bill Scherkenbach on the DEN List

As is true for most on the DEN list, I think Deming offered more than a glimmer of sunshine in an otherwise darkening world. From both theoretical and methodological standpoints, I believe his ideas were fundamentally valid, though there may be a bit of utopianism in there. As a consultant, I have had to confront the business leader’s “realities”. I have learned that even the wisest of Kings are unable to surmount some of the barriers. How would you answer their “hard” questions?

Me: Well King, it’s time to start transforming yourself and your organization. First you need to start thinking long term. Stop focusing on the quarterly balance sheet. Get your eyes off the rear view mirror and aim to create a new world that delights customers, embraces workers, and kicks ass in the marketplace.

The King: Right, I want to do that! There’s just one thing. If I don’t do whatever it takes to make the quarterly numbers, the board will have my head. What good would I be to my employees and customers if my head was rolling around on the ground? (The King spins his index finger round and round.)

Me: (Spinning my index finger with the King.) Well if you keep tampering with the system—doing whatever it takes, things will start to spin out of control. The system will be unstable and unimprovable. In the long run everyone will lose.

The King: But what about my head?

Me: You should go to the board and explain your long term vision and aims. You’re a smart guy. Show them the wisdom of your designs.

The King: Even if I could convince them, which is very, very, unlikely, the shareholders are my principle responsibility. You know, Business 101 - the CEO’s fiduciary responsibility, blah, blah, blah. I have to keep showing profits that are increasing at an increasing rate. It’d be positively unethical if I failed to do whatever it takes to make the numbers.

Me: Damn the shareholders. They’re motivated by greed and stupidity. They’ll eat ‘til their bellies burst. Buck up buddy! You’re the King!

The King: Next our share values will plunge as investors head for greener pastures. Our operations will start to suffer for want of resources. We’ll start to slide into ignominy. Then they’ll chop off my head. (The King spins his index finger again.)

Me: You need march to the beat of a different drummer. Transform the company at a gradual but steady pace. Start by training your managers and employees to understand systems and variation. Stop relying on inspection. Get your processes under control and monitor them. Get everyone involved in the transformation.

The King: Transformation, shmanz-formation. I’ve got some nasty competitors breathing down my neck—American, EU, Korean, Japanese, and Chinese. Look, the marketplace is really, really, competitive. Even if I go slow with this transformation thing, my commitment will bleed the organization drop by drop. What’ll happen to my productivity numbers when I put my mangers and workers into classrooms? How long will this transformation thing take?

Me: A long time.

The King: Too long. Once my competitors figure out that I am playing a long term game, they’ll nail me to the wall in the short run. A few three penny nails and it’s game over. Then the board will sharpen their axe. There goes my head, rolling down the steps—bump, bump, bump. Do you think it’s true when they say that in your last few moments you can actually see your body back there at the top of the stairs? That really freaks me out!

Me: You need to work from a position of strength, King. It’s all about commitment. Commit and stay the course. In the long run your efforts will pay off-you know it and I know it!

The King: What I know is that I’m only as strong as my last quarterly report. Nobody cares about my long term vision. Shareholders don’t want my ideas. They want results! My employees don’t want another program. They just want their paychecks. And my customers—what do they know? Like P.T. Said, “There’s one born every minute.”

Me: But the Japanese have managed to implement many of these ideas with great success. They’ve eaten our lunch in the automotive sector.

The King: The Japanese don’t chop off your head if the numbers don’t climb the chart every three months. They regard their industrial development as a national enterprise.

Me: Yeah, there’s a lot to learn from them. Japanese business leadership sees it’s responsibilities in a wider light—customers, employees, the nation. They take their leadership responsibilities very seriously. Ever heard of Hari Kari?

The King: If I don’t make the numbers, they’ll Hari Kari me!

Me: Didn’t you read Deming? Don’t you get it? It’s all so clear.

The King: Clear as can be. They’ll chop off my head!

Me: Then in the long run we will all fail—personally, as a company, and as a nation.

The King: I don’t know about nation and company, but my salary keeps going up with the big quarterly numbers. Whatever happens, I’ll be a fat cat and first in line for the next Kingship. That’s good for me and my family, and that’s the way it works in the “Land of the Free”.

Me: But our national wellbeing is at stake here. We are in an economic war and we are losing ground in the global marketplace. We need to think strategically and work smarter. Doing what makes sense and what’s right is good for business and good for America. Don’t give in to that cold, cold, darkness. Bask in the sunshine of Deming’s wisdom.

The King: You know, you’re right!

Me. So what are you going to do?

The King: Keep my head.