The Neuroscience of Deming by JW Wilson

The contributions of W. Edwards Deming for improving quality were recognized by U.S. News and World Report as one of the nine turning points in world history and by FORTUNE Magazine as among the greatest contributions to business history.

Deming identified four components of change that are fundamental to any improvement related initiative. These components are:

 

  • Appreciation for a system (action),
  • Knowledge about variation (feedback),
  • Theory of knowledge  (learning),
  • Knowledge of psychology (motivation).

The video presentation – The Neuroscience of Deming by JW Wilson introduces the science that validates Deming’s system for improvement.

The “So What?” Application of the “new system” optimizes individual and group performance in any aspect of life.

 

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Corruption: Description and Context

I generally associated the term corruption with illegality.  The Pope identifies a broader definition and context.

Pope Francis: ‘I Am Not Afraid of Sin, I Am Afraid of Corruption’,  by Thomas D. Williams  PH.D.  23 Jan 2018, Breitbart.com

“Corruption – when a person’s conscience no longer registers right and wrong.”

“There is a big difference between corruption and sin, Pope Francis contends, because the sinner can always convert but the corrupt person sees no need for conversion.”

“The corrupt person goes through life taking the shortcuts of opportunism,” said the Pope, “with an air of innocence, wearing the mask of an honest person, which he begins to believe.”

“The corrupt person cannot accept criticism, discredits anyone who criticizes him, tries to belittle any moral authority who would question him, does not value others and insults anyone who thinks differently. If the balance of power permits, he persecutes anyone who contradicts him.”

“Unfortunately, Francis said, the problem is widespread.”

Future of Brown County IN – Part 1

The following post was published in a Guest Column in the Brown County Democrat on Dec 27, 2017 titled:  The role of process in the future of Brown County

The Maple Leaf Music Venue and Performing Arts Center (MLPAC) project and the process used to fast-track approval may represent a turning point for the future of the county. This article is a first in a series that will provide a perspective on our current reality and offer additional options that may contribute to Brown County remaining a desirable place, to live, work, play and visit.

  • To summarize, key points and issues associated with MLPAC include the following:
  • In the April 2017, owners of hotels and inns, who are also appointed to the Convention and Visitors Commission (CVC) and Convention and Visitors Bureau (CVB) decide to use the revenue collected from the innkeeper’s tax to invest in an asset that will promote tourism. The Innkeeper’s Tax is a pass-through tax paid by the party renting the overnight accommodations.
  • CVC members are appointed by the county commissioners and council. The CVB is a non-profit organization established to manage tourism related promotion on behalf of the CVC.
  • CVC/CVB members decided on a performing arts center and also determined the size, location, scope, cost (12.5 million), and overall governance plan for the facility. Given that this investment is expected to result in overnight stays, their businesses will directly benefit from the investment, and the asset values of their establishments will likely increase.
  • Initially, county citizens were told that revenue from the innkeepers tax would be used to pay the principal and interest on the mortgage for the venue. Any profits were to be used for community and county infrastructure priorities.  The final terms of the deal are that profits would be used to make the mortgage payment and the revenue from the innkeeper’s tax would only be used if profits were not sufficient to make the payment.  This arrangement provides more revenue to fund the expansion of tourism.
  • A common perception in the county that was reinforced by the president of the county council, may be that the revenue from the innkeeper’s tax is “their (CVC) money.” This inaccurate perception may have contributed to a lack of transparency over the years regarding the management and expenditure of these funds.  This revenue, per statute, is a county asset. Commissioners and Council (elected by citizens) appoint CVC members who are subordinate to the citizens and their elected officials.
  • The approval of a 12.5 million dollar loan using the revenue from the innkeeper’s tax as collateral was approved by the commissioners on Nov 15 and the county council on Nov 20. The commissioners approved another resolution approving the project on Dec 20. In case of default, the venue would become the property of the bank, and per the county council president and the county financial consultant, county taxpayers would not be obligated to assume the liability.
  • No public meetings expressly focused on this important project were scheduled by the commissioners or council before their meetings to approve the project. The League of Women Voters of Brown County offered to facilitate a public meeting to address citizen questions, concerns, and issues regarding the project. Members of the CVC, the CVB and the informal team working on the Maple Leaf project declined to participate, as did several key elected officials.
  • The editor of the only newspaper in the county – The Brown County Democrat, did recuse herself from being the primary reporter because of a conflict of interest — her husband serves on the CVC. The Democrat welcomed opposing opinions in Guest Columns and Letters to the Editor.

A government best practice for determining the optimum investment options for revenue from the innkeeper’s tax would be identified in a Comprehensive Plan or an annex to the plan that includes a strategy for tourism.  Such a plan has yet to be developed. A good “plan” includes expected outcomes, actions and milestones, and required resources.

To provide the needed objectivity regarding the feasibility of this project, it was initially suggested by the county attorneys that the County Redevelopment Commission (RDC) become involved which would have helped ensure a thorough review on the feasibility of the project.

The plan by the RDC was to involve all affected government offices to include holding several public meetings to solicit input and feedback from the citizenry.  The process would have included identifying, quantifying and acknowledging opportunity costs and the risks associated with the project  The outcome may have been the same but the public may have had more assurance that the government performed their due diligence.

Before the RDC could hold their first public meeting to discuss their plan, they were told by two of the three commissioners at their July meeting, that their involvement would no longer be needed.  Before the county council approved the project on Nov 20, a member of the council confirmed that they did not commit funding for an independent feasibility study of MLPAC.

Renowned inventor and visionary Buckminster Fuller remarked that “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” 

My next article in this series will include two objectives:  Identify likely effects of MLPAC and identify “a new model” of citizen engagement that can result in outcomes where everyone can benefit, or at least, will not be any worse off in the long term.

More Info:  Maple Leaf Project – For the Record

How to make a great country, better

The U.S. system of government is designed to be continually improved with the aim of “We the People” making progress toward “a more perfect Union.” The opportunity is to consider applying a proven method for reducing imperfection that will produce results where we all gain or, at least, are not any worse off.

“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”Preamble to the U.S. Constitution

A problem with the word “perfect” is that the term can be used in a context where perfection can be perceived as being obtainable. The U.S. Founding Fathers were careful to prevent citizens from drawing this conclusion by using the phrase “more perfect.” Legendary football coach Vince Lombardi reinforced the “more perfect” theme in his statement: “Perfection is not attainable, but if we chase perfection we can catch excellence.”

A 2016 Gallup survey indicated that 89% of Americans believe in God or a universal spirit. Many of the Founding Fathers were influenced by the biblical philosophy that only God is perfect and that man is imperfect but is expected to improve. Consequently, it might be concluded that life is all about reducing imperfection.

W. Edwards Deming, who is the founding father of many effective quality improvement methods, concluded that if he was to reduce his message to just a few words, it all had to do with reducing variation. Reducing variation is synonymous with reducing imperfection. A description of variation in a context that supports the interrelationship between variation, perfection, excellence, and quality is as follows:

American Society for Quality: What Is the Law of Variation?

“In simple yet profound terms, variation represents the difference between an ideal and an actual situation.

An ideal represents a standard of perfection—the highest standard of excellence—that is uniquely defined by stakeholders, including direct customers, internal customers, suppliers, society, and shareholders. Excellence is synonymous with quality, and excellent quality results from doing the right things, in the right way.

The fact that we can strive for an ideal but never achieve it means that stakeholders always experience some variation from the perfect situations they envision. This, however, also makes improvement and progress possible. Reducing the variation stakeholders experience is the key to quality and continuous improvement.”

Ideals are derived from basic human needs. America’s ideals were identified in the Declaration of Independence:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

Deming concluded that, without knowledge of common and special cause variation, 95% of actions taken to improve a situation results in no improvement and can make things worse. Knowing the difference between common and special cause variation results in a higher success rate because it leads to improving systems. Further, it leads to knowledge through assessments to determine what worked, what did not work, and what might be done differently next time to successfully reduce variation. (Assess your knowledge of the variation paradigm.)

By implementing the methods proven to be effective in reducing variation, the United States has the potential to surpass and then sustain the economic boom and prosperity it experienced after WWII (1947-1977) when the country had a global competitive advantage. But as Deming often remarked: “It is not necessary to change. Survival is not mandatory.”

Despite the conclusion drawn by major media outlets such as FORTUNE magazine and U.S. News and World Report that Deming’s work represents one of the most fundamental improvements in business if not human history, Deming’s work is still virtually undiscovered.

When Deming described the scope of the needed transformation, he used the term metanoia, which he defined as “penitence, repentance, reorientation of one’s way of life, spiritual conversion.”Norman Todd elaborated on this premise in his paper Metanoia and Transformation II.

A Way Ahead

Perhaps if more leaders recognize the connection between imperfection and variation, they might become more aware of the connection between science and spirituality. This, in turn, might lead to the broader application of Deming’s teachings.

Leading this change will require that a critical mass of leaders embrace the new paradigm for Quality Leadership that will support a Vision for Transformation.

A Critical Flaw in the U.S. System of Government

Note: This article was re-posted on Linkedin (with a few minor word changes) under the title: “How to make a great country, better.”   

The U.S. system of government is designed to be continually improved with the aim of “We the People” making progress toward “a more perfect Union.” The flaw is that we lack a shared method for reducing imperfection that will produce results where we all gain or, at least, are not any worse off.

“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”Preamble to the U.S. Constitution

A problem with the word “perfect” is that the term can be used in a context where perfection can be perceived as being obtainable. The U.S. Founding Fathers were careful to prevent citizens from drawing this conclusion by using the phrase “more perfect.” Legendary football coach Vince Lombardi reinforced the “more perfect” theme in his statement: “Perfection is not attainable, but if we chase perfection we can catch excellence.”

A 2016 Gallup survey indicated that 89% of Americans believe in God or a universal spirit. Many of the Founding Fathers were influenced by the biblical philosophy that only God is perfect and that man is imperfect but is expected to improve. Consequently, it might be concluded that life is all about reducing imperfection.

Edwards Deming, who is the founding father of many effective quality improvement methods, concluded that if he was to reduce his message to just a few words, it all had to do with reducing variation. Reducing variation is synonymous with reducing imperfection. A description of variation in a context that supports the interrelationship between variation, perfection, excellence, and quality is as follows:

American Society for Quality: What Is the Law of Variation?

“In simple yet profound terms, variation represents the difference between an ideal and an actual situation.

An ideal represents a standard of perfection—the highest standard of excellence—that is uniquely defined by stakeholders, including direct customers, internal customers, suppliers, society, and shareholders. Excellence is synonymous with quality, and excellent quality results from doing the right things, in the right way.

The fact that we can strive for an ideal but never achieve it means that stakeholders always experience some variation from the perfect situations they envision. This, however, also makes improvement and progress possible. Reducing the variation stakeholders experience is the key to quality and continuous improvement.”

Ideals are derived from basic human needs. America’s ideals were identified in the Declaration of Independence:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

Deming concluded that, without knowledge of common and special cause variation, 95% of actions taken to improve a situation results in no improvement and can make things worse. Knowing the difference between common and special cause variation results in a higher success rate because it leads to improving systems. Further, it leads to knowledge through assessments to determine what worked, what did not work, and what might be done differently next time to successfully reduce variation. (Assess your knowledge of the variation paradigm.)

By implementing the methods proven to be effective in reducing variation, the United States has the potential to surpass and then sustain the economic boom and prosperity it experienced after WWII (1947-1977) when the country had a global competitive advantage. But as Deming often remarked: “It is not necessary to change. Survival is not mandatory.”

Despite the conclusion drawn by major media outlets such as FORTUNE magazine and U.S. News and World Report that Deming’s work represents one of the most fundamental improvements in business if not human history, Deming’s work is still virtually undiscovered.

When Deming described the scope of the needed transformation, he used the term metanoia, which he defined as “penitence, repentance, reorientation of one’s way of life, spiritual conversion.”Norman Todd elaborated on this premise in his paper Metanoia and Transformation II.

A Way Ahead

Perhaps if more leaders recognize the connection between imperfection and variation, they might become more aware of the connection between science and spirituality. This, in turn, might lead to the broader application of Deming’s teachings.

Leading this change will require that a critical mass of leaders embrace the new paradigm for Quality Leadership that will support a Vision for Transformation.

Business Culture and Financial Success

 

Top Bridgewater exec explains how its intense, unique culture helped the world’s largest hedge fund make $50 billion

Interesting insight on the correlation between culture and success.  Ray Dalio provides further insight in his e-book titled Principles by Ray Dalio,

W. Edwards Deming estimated that only 5% of management actions applying traditional methods resulted in improvement. Appears that Bridgewater has a higher success/failure ratio.