Systems thinking

Many of us in business wonder why we cannot make a change embed itself or even work at all. One of the ways of thinking about change and understanding it is to look at organisational culture and how that affects what we are trying to do.

For many people in business we want to get it right particularly today when finance is critical and businesses are failing at spectacular rates. Is getting right though the same as doing the right thing?

Perhaps we fail because we are trying to get it right rather than doing the right thing.

W. Edwards Deming invented systems thinking a way of thinking about how each part of a system affects the way other parts work. Determining how the whole system works is key to understanding what is the right thing to do. All tasks and functions of a business then are interdependent.

Deming used  14 points for the basis of the transformation of industry and many of them are key to improving sales and performance.

1. Constancy of purpose - create constancy working towards continual improvement of a product or service in order to become competitive and stay in business.

2. A new philosophy. We must embrace leadership for change. Continuous improvement means that we are flexible to changes in the market and customer demands. Change never stops which is why we need to be flexible.

3. Cease dependence on mass inspection. Routine inspection is like planning for defects, you cant inspect quality but you can require that there is statistical evidence that quality is built in. Improve processes so that defects arent produced in the first place.

4. End lowest tender contracts. Dont award business on the price tag alone but minimise total cost by moving towards a single supplier on a long term relationship of loyalty and trust.

5. Improve every process; this will decrease the cost of production. Accept that nothing is ever good enough.

6. Institute training on the job. When training people need to understand what the job is and why it is being done. Seems simple but how often do we train for things which are not really about the job?

7. Institute leadership of people. The aim of management is to help people do a better job. Coach staff to improve the system.

8. Drive out fear so that everyone may work effectively for the company. Build trust, collaboration  and cooperation.

9. Break down barriers between departments. People in every department shoudl work as a team not parts which dont interconnect.

10. Eliminate exhortations. Slogans asking for productivity are not helpful. management by numbers and objectives are not helpful. If the system is built around quality it will be done right the first time.

11. Eliminate arbitrary numerical targets. Work standards which prescribe quotas and numerical goals are not helpful the focus shoudl be on quality.

12. Remove barriers to pride of workmanship. Let people take a pride in a job well done.

13. Encourage education and learning. Institute a system of self improvement.

14. Transformation is everybody's job.

Learn more about LEAN Leadership which came from Demings work at our masterclass at the Oyster and Otter on Tuesday 22nd November at 18.00. Find out more here http://www.facebook.com/pages/Community-Business-Partners/225187080841375