Summary
The central argument of "The New Economics for Industry, Government, Education" is that adopting the Deming System of Profound Knowledge is essential for organizational transformation, leading to increased productivity, quality, and market success. This system, composed of four parts—appreciation for a system, knowledge about variation, theory of knowledge, and psychology—replaces a prevailing management style described as a prison with a cooperative, systemic approach focused on mutual benefit. The book details how applying this knowledge leads to better outcomes, including the abolition of detrimental practices like on-the-job performance reviews and a deeper understanding beyond superficial data.
By illustrating the system of transformation underlying his "14 Points for Management," Deming guides readers toward a new style of management. This edition includes contemporary relevance and practical application through case studies and guidance on implementing the Deming System of Profound Knowledge. Readers will learn how to make accurate predictions, improve work environments, foster joy in work and learning, and achieve short-term and long-term success.
Key concepts
- Deming System of Profound Knowledge — A four-part framework (appreciation for a system, knowledge about variation, theory of knowledge, psychology) for organizational transformation.
- Appreciation for a system — Understanding how interconnected parts work together to achieve a common aim.
- Knowledge about variation — Distinguishing between common cause and special cause variation to manage processes effectively.
- Theory of knowledge — Recognizing that knowledge is an ongoing process of learning and adaptation, not static fact.
- Psychology — Understanding the motivations and interactions of people within an organization.
- 14 Points for Management — Principles presented in "Out of the Crisis" that are supported by the Deming System of Profound Knowledge.
From the book
Description: 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…
Snippet: 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 ...