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Our Purpose
To transform the organization from the traditional model and behavior,
to one that incorporates "Systems Thinking." Recognize that those who produce the product know best
how to improve the product and improve the system of production.
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Dr. Deming saw the potential gains in quality and productivity that could be achieved through work on Point
8: Drive out fear. He related the existence of fear to the practices of management.
"No one can put in his best performance unless he feels secure. Se comes from the Latin,
meaning without, cure means fear or care. Secure means without fear, not afraid to express ideas,
not afraid to ask questions. Fear takes on many faces. A common denominator of fear in any form anywhere, is loss
from impaired performance and padded figures..."
Out of the Crisis, pg. 59
"To manage, one must lead. To lead, one must understand the work that he and his people are responsible
for. Who is the customer (the next stage), and how can we serve better the customer? An incoming manager, to lead,
and to manage at the source of improvement, must learn. He must learn from his people what they are doing and must learn
a lot of new subject matter. It is easier for an incoming manager to short-circuit his need for learning and his responsibilities,
and instead to focus on the far end, to manage the outcome - get reports on quality, on failures, proportion defective, inventory,
sales, people. Focus on outcome is not an effective way to improve a process or an actiity.
"As we have already remarked, management by nunerical goal is an attempt to manage without knowledge of
what to do, and in fact is usually management by fear."
Out of the Crisis, pg. 76
Taken from the Spring edition of Deming InterAction
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Thanks to In2In Thinking for the following article.
THINKING ABOUT SUSTAINABILITY By: H. Thomas Johnson
Sustainability currently
ranks as one of the most popular programs being touted by management consultants, business gurus and MBA educators. As with
so many programs for "business excellence" that have gained popularity in the past fifty years - including synergy, strategic
cost management, total quality, reengineering, organizational learning, lean manufacturing, leadership, innovation and more
- sustainability promises great benefits. But just like those past programs, it does not encourage business leaders to reconsider
conventional thinking about what it means to do business. Consequently, sustainability programs build on the flawed assumption
that economic well-being depends upon endless growth - a growth that is now occurring at a suicidal rate.
"...sustainability promises great benefits...[but] it does not encourage business leaders to reconsider conventional
thinking..."
It is a well-known fact
that our push for ceaseless economic growth is creating very adverse conditions for life as humans have always known it on
Earth. Driven for fifty-some years by the imperative to maximize their owners' financial wealth, businesses relentlessly produce
more and more goods for humans to consume. "Restraint" and "moderation" are no more words in their lexicon than is awareness
of Earth's inability to sustain this wild production pace. Addressing the adverse impact of this production on Earth's system
calls for new ways to think about doing business.
Today, the industrial economy uses Earth's resources at rates that
hugely exceed the capacity of Earth to regenerate and restore those resources. Making this possible is the fact that humans
in the past century began to generate energy from Earth's fixed supply of fossil fuel at a rate several thousand times the
rate at which the Sun supplies energy to the Earth each day. Over a few billion years, Earth's life-support systems adapted
remarkably well to the Sun's daily supply of energy. Then, the human economy recently imposed a wildly extravagant flow of
new energy onto those support systems, significantly dislocating the chemical balance of Earth's atmosphere and causing increased
and intensified human occupation and degradation of Earth's habitat. In turn, this atmospheric dislocation and habitat disruption
have resulted in long-term climate change and a sharp rise in extinction of non-human life species.
If, as many experts
claim, business activities are primarily responsible for severely diminishing Earth's resources and throwing the ecosystem
into dangerous imbalance, surely business leaders must revise the way they think about their mission. However, sustainability
programs do not seem to be altering their basic, conventional assumptions about the role of business in society. Advocates
of sustainability do propose changing the way businesses design, produce, and sell the products that most humans consume.
These sustainability programs advocate that businesses promote "eco-efficiency," the steady pursuit of ways to produce each
unit of output with less energy and less raw material, especially less fossil fuel. Unfortunately, sustainability programs
do not introduce new ways of thinking about the purpose of business, notably the notion that a business exists to maximize
its owners' financial wealth. Because sustainability programs do not question conventional thinking, they do not mitigate
the drive to sell more and more. That imperative remains intact, unchallenged. Consequently, gains in resource efficiency
that sustainability programs achieve are invariably offset by increases in total output.
Eco-efficiency is not sufficient
to eliminate the problem that our industrial growth economy poses for Earth's ecosystem because it does nothing to question
the thinking that originally created the problem it is trying to solve. New thinking is required that challenges the accepted
idea that economic welfare requires humans to consume more and businesses to grow year after year after year. Whereas sustainability
programs currently encourage people to improve how efficiently they perform an activity, they ought to be asking instead, whether people should be engaged in the activity at all. Every business that advocates sustainability should ask:
Is our way of doing things compatible with stable, just communities and a robust planetary ecosystem that sustains all life?
Sustainability programs will only make a profound, lasting, and constructive difference for society and Earth when they
reflect new thinking based on new values. Programs in place today place a high value on finding environmentally efficient
ways to produce more and more goods for consumers and gaining increased financial wealth for owners of capital. At best, they
reflect the interest of companies that want above all to do business as usual but that are willing, to their credit, to make
some modifications to limit the destruction. Limiting the destruction, however, is not enough. Sustainability programs need
to value something other than merely helping businesses contain the damage as they sell more and increase total output.
If they are to genuinely
help humans survive on this planet, sustainability programs must reflect new thinking. New thinking informed by modern science
recognizes that as long as business activities center on helping only humans thrive, the planet's health will decline rapidly.
The only truly sustainable business practices are those that permit all life to continue undiminished, indefinitely. Practices
designed to achieve this end must balance two imperatives. First, they must be able to provide humans the things they need
to flourish in their unique habitat. Second, they must do nothing to impair the ability of all other life systems to thrive
in their habitats. The level of thinking implicit in this definition of sustainability radically shifts the focus of economic
discourse. Instead of focusing on the imperative of growth and the problem of "externalities" the discussion now shifts to
the issue of fulfilling human needs and nurturing human talents in the context of Earth's capacity to produce and regenerate
resources. And instead of turning to abstract theories of markets, prices and finance to define economic and social questions,
attention now shifts to concrete knowledge of bio- and geo-systems that enlightens us about Earth's capacities - and limits
- to support all life.
When sustainability programs
raise informed questions that reflect a deep knowledge of ecology and cosmology, sustainability leaders will inevitably reject
many currently popular answers to human social and economic problems. They will see, for example, that "competitive free market"
solutions to such problems actually weaken the cooperative, communal bonds that characterize, and preserve, all living systems.
Moreover, they will understand, just as surely as the concept of "flat earth" is wrong, so the concept of independence as
a condition that supports life is wrong. Bonds and relationships pervade Earth, uniting all living systems. These relationships,
not competitive struggle among independent systems, sustain and enrich life. Finally, as their scientific knowledge of Earth's
system further deepens, sustainability leaders will realize that private ownership of more than one's immediate living space
is inconsistent with any system that operates like Earth's ecosystem.
Sustainability is not something
for we humans to define in terms compatible with human intellectual abstractions. It is not a practice we invent to apply
to economic and social affairs. Sustainability is a condition that already exists. It is there, where it has been for over
4 billion years, in Earth's magnificently evolving system. The relationships in this intricate system nurture and sustain
all life. Any human theory of economic or social activity that is not grounded in, and supportive of, Earth's system is not
going to help us keep this planet a comfortable home "unto the seventh generation." For example, "triple bottom line" is a
concept not grounded in a sound understanding of Earth's dynamic system of interrelationships. It invites us to think about
the dynamic and multi-dimensional interrelationships between Earth's ecosystem and human activity through the one-dimensional
and linear quantitative language of finance, economics and accounting.
Instead of using the triple
bottom line to reduce all human and environmental issues to the language of economics and finance, true sustainability programs
require a concept that discourses about economic issues using the language of relationships and community, the language of
Gaia. What if our behavior makes it impossible for Earth to sustain human life as we know it? All the sustainability programs
in the world that seek results by making adjustments to the status quo cannot do enough to guarantee true sustainability.
Only thinking at a new level can do that. Sustainability programs need to transcend our conventional economic and social ideas
and focus with laser-like attention on one paramount concern: living in harmony with Earth's entire biosystem, with all life,
and maintaining the bonds and relationships that enable such harmony. We need to live nature's way, fitting in and cooperating,
not compelling, competing and destroying.
Dr. Tom Johnson, a Professor
of Business Administration at the Portland State University School of Business Administration, has authored numerous papers
and books including Profit Beyond Measure and Relevance Lost, and was a featured keynote speaker and workshop
leader at several In2:InThinking Network conferences.
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