What if most CEOs misunderstand their real job? It's a question the legendary management thinker Dr. W. Edwards Deming loved to ask. Too often, leaders make decisions that seem smart for one department, only to create bigger problems somewhere else in the organization. In this episode, systems strategist Dr. Sheila Ronis shares what she learned working alongside Deming at Bell, Ford, and General Motors. She takes you inside the breakup of the Bell System, when the whole country still needed to hear a dial tone, and explains why leaders must understand the whole system, not just its individual parts. If you've ever wondered why well-intentioned decisions sometimes make things worse, this conversation will give you a simple, practical way to look at your own organization. 🎧 Listen to discover what Deming believed a leader's real job should be, and why his thinking matters today. TRANSCRIPT 0:00:03.0 Andrew Stotz: My name is Andrew Stotz. And I'll be your host, as we continue our journey into the teachings of Dr. W. Edwards Deming. Today, I'm here with featured guest, Dr. Sheila Ronis. And I am excited to hear about you and your journey. So are you ready to share your journey, Sheila? 0:00:23.5 Sheila Ronis: I certainly am. 0:00:25.1 Andrew Stotz: You've had quite a journey. I want to introduce you to the audience here. So I'm really delighted to welcome Dr. Sheila Ronis, President of The University Group Partners, a systems strategist, educator, and consultant who learned from, and worked with, Dr. W. Edwards Deming. She has applied systems thinking to business, government, national security, and strategic foresight, for more than five decades. And what you're gonna hear, as you listen to this story, is this journey that she's been through, from the Bell Systems, which is going back all the way... I think it was originally founded in 1870s, or something like that. And your journey from working at Bell Labs, and Bell System; to Ford, another giant; to GM, another giant; and then to the ultimate giant, the US government. So why don't you tell us a little bit about your journey? 0:01:26.2 Sheila Ronis: Okay. Well, I was really fortunate because I met Dr. Deming in 1979, when he gave lectures to every new Bell executive who was hired, and especially, young people who were in their high potential group. And I came to Bell, already having my doctorate, and a major assignment with Oak Ridge National Laboratory, before the Department of Energy even existed. And it was really wonderful, because it was very clear to me that the way he thought, was very similar to the way I thought. We were both educated as classical physicists. And so at the break, I went up to him and was just visiting, and saying how excited I was that he had his degrees in physics and mathematics, and that although, it was only my undergraduate degree in physics and mathematics. And he said, "Yes. But it says doctor on your tag." And I said, "Well, that's because my master's and doctorate, were in large complex social system behavior." And his eyes lit up, because he said, "Oh, my goodness." He said, "You and I need to talk more." 0:02:56.2 Sheila Ronis: And it began a dialogue and a discussion, that really didn't end until he passed away in 1993. And I was just so lucky to be able to work with him, first, in the Bell system, and during the Bell system reorganization, from 1982 to 1984. And then shortly thereafter, I worked with him at Ford Motor Company. And it was after that, that I worked with him, with Bob Dorn at General Motors. Bob Dorn then, was the chief engineer for the entire portfolio of General Motors vehicles. First, he was at Cadillac. And Cadillac won the Malcolm Baldrige National Quality Award while he was there, because he took... Bob took Dr. Deming very seriously. And it was just a tremendous experience to work, both with Bob, and with Dr. Deming. 0:04:04.6 Sheila Ronis: In fact, Bob and I wrote a paper that Dr. Deming helped us write. And I think we presented it at one of the Deming Institute events. And that was in 1990, I believe. And anyway... 0:04:26.3 Andrew Stotz: I wonder if we can go back to that first meeting, when you first... Yeah. Let's just try to understand, was it 20 people in the room? Was it 500 people in the room? And what was your first impressions, as you started listening to this guy that you'd never heard of before? 0:04:45.9 Sheila Ronis: That's true. I didn't know who he was. But it was really interesting. There were only about 30 of us, because we were hired into management directly. And that was very unusual for the old Bell System. They hired people, first, to be in the line, usually. And you didn't get into management automatically. But people, like me, who already had higher education and advanced degrees, we were in a special category. But I was very interested in becoming a line executive, because I wanted that experience, to actually manage people, not just be in a staff position of some kind. And it was really amazing, because it was very clear from his discussions... Even though he talked a great deal about statistical process control, and the need for the use of statistics in the management of process... He, really, was conveying a management philosophy toward people. And that was obvious from the beginning. 0:06:14.6 Sheila Ronis: And I thought to myself, "My goodness. This is not just a technical person. This is a very intense individual, but with a depth of understanding in the truest, Verstehen, German sense." And of course, that Verstehen led to Profound Knowledge, and his ultimate System of Profound Knowledge. And it was his management philosophy that, in my view, at that time especially, put him heads... And just way above all the other people who I had been reading about, who were trying to technically control processes in manufacturing sectors, and things like that. And it just made him a completely different kind of person, and a completely different kind of consultant, and somebody who really understood the human dimension of an institution, and an organization. 0:07:30.1 Sheila Ronis: And without that, US industry was going nowhere. Because they didn't care about the human dimension. They thought that, what they called, soft issues, were of little value, and were not even important enough to invest in. And of course, they were dead wrong. Whereas, as Dr. Deming started to address the issues with the Japanese, he basically said, "It's the human dimension. You lead people, you manage process. And when something goes wrong, it's the system you have to look at, not the people. You give them the right tools, they will do fine, because they want to do a good job for you." And it was that philosophy that was very much conveyed in that very first day of that meeting, of that training. 0:08:36.3 Andrew Stotz: There was no ambiguity of what he was saying. You were... How old were you, roughly, at that time? 0:08:42.2 Sheila Ronis: 29. 0:08:43.8 Andrew Stotz: Okay. So '79, and... 0:08:47.2 Sheila Ronis: He was 50 years older than me. 0:08:48.8 Andrew Stotz: Yeah. 0:08:50.9 Sheila Ronis: And it was after he passed away, that I learned that he gave the famous 1950 lecture, literally, while I was being born on the same day. At about 8:30, it was an after-dinner speech, he made to all the industrialists of Japan, or 75% of them, or something. Well, at 8:30 in the morning, which was about the same time as he was speaking in Japan, I was born. 0:09:19.1 Andrew Stotz: Mm-hmm. A connection. 0:09:20.8 Sheila Ronis: I always knew I had a karmic relationship with this man. 0:09:23.7 Andrew Stotz: Yeah. And I was just thinking about, I was 24 in 1989, so 10 years later, when I first sat in front of him. And I got the same thing. And I was working on the factory floor at Pepsi, in manufacturing, and warehouse distribution. And I saw all the troubles. And it was clear, as a young guy with no experience, really, of managing anything, it was clear to me... Everything he said, was just so clear. And I think what you've expressed, is something that people that never have met him, or study with him, don't realize that he really is a humanist, and he believed in the potential of people, and he believed in the potential of intrinsic motivation. So that's a great, great way to start of the... Think about that. Day one, of your Deming journey, started with this incredible awakening. Or maybe, it's not even an awakening, because part of what he was trying to teach was that it's inherent in us. He was just letting it... "Hey, here's how we bring it out." 0:10:33.8 Sheila Ronis: And it was very contrary to a lot of the scientific management principles, that I think led a lot of people astray in many ways. Because they treated the human being as a cog in a wheel. And people are not cogs in wheels. They are agents. And the moment you put an agent into a system, first of all, it's nonlinear, it is complex, and you can't predict it. And management is supposed to be able to predict and control. And yeah, they can predict and control some things, like process, if they're in control. But people are a whole different story. 0:11:22.3 Andrew Stotz: Exactly. And okay. So let's go from 1979, to... Where is the next time that you have the next meaningful interaction? But before you go there, I just want to highlight one thing that you mentioned about when you went up to him to talk at the break. Here's a guy, 79 years old... And when I saw him, he was 89... And he just welcomed people coming up and talking. And that was his break time. For me, I'm like, "I need a rest." 0:11:47.6 Sheila Ronis: He was. He was so approachable. And I was so excited that he would talk to me. Who was I? This little girl from Cleveland, Ohio. And of course, it was later that I realized he was from Wyoming. So it was okay.