W. Edwards Deming's "The New Economics for Industry, Government, Education" argues for a transformation to a new style of management, built on the Deming System of Profound Knowledge, to achieve cooperation, increased productivity, quality, and joy in work. This system, comprising appreciation for a system, knowledge about variation, theory of knowledge, and psychology, is presented as the underlying transformation for the 14 Points for Management. Deming asserts that the prevailing management style is restrictive, and applying his system leads to short-term and long-term market success.
The book advocates for practical changes such as abolishing performance reviews, looking beyond spreadsheets for improvement opportunities, and rethinking educational management. It details how organizations can make accurate predictions and offers guidance on implementing the Deming System of Profound Knowledge, supported by case studies from organizations that have adopted it. A new chapter in this edition clarifies the method's relevance and provides advice on its effective application.
Key concepts
- Deming System of Profound Knowledge — A four-part system consisting of appreciation for a system, knowledge about variation, theory of knowledge, and psychology, that drives organizational transformation.
- 14 Points for Management — A set of principles for management that are underpinned by the Deming System of Profound Knowledge.
- Appreciation for a system — Understanding how interconnected parts work together within an organization to achieve a common aim.
- Knowledge about variation — Understanding the differences between common cause variation and special cause variation to improve processes.
- Theory of knowledge — Recognizing that knowledge is a theory and can be improved through testing and observation.
- Psychology — Understanding the intrinsic motivation and needs of people in the workplace.