Interviews with members of The Deming Institute community, including industry leaders, practitioners, educators, Deming family members and others who share their stories of transformation and success through the innovative management and quality theories of Dr. W. Edwards Deming.
Deming Lens #51 - Pay for Performance
In our 51st Deming Lens episode, host Tripp Babbitt shares his interpretation of wide-ranging aspects and implications of Dr. Deming's System of Profound Knowledge. This month he looks at supply chain and risk management.
Show Notes [00:00:14]
Deming Lens - Episode 51: Pay for Performance
A Journey with Pay for Performance
The New Harmony Project
The Result of Collectivism
Analytical vs Synthetic Thinking
Dr. Deming and Pay for Performance
Pay for Performance, Collectivism and Dr. Deming
Transcript [00:00:14] In the 51st episode of the Demning lens, we'll talk about. Pay for performance. Hi, I'm Tripp Babbitt, host of the Deming Institute podcast, and this is the fifty first episode of the Deming Lens. And as I was going back and searching through some of the old episodes I've done, I noticed I hadn't done one on pay for performance. And it kind of came to the forefront of my mind when I was going through some Tic Tacs. And there's a couple of people out there that are big advocates of pay for performance as ways to keep people in their organizations, which is becoming a problem now. You know, people aren't going back to work for variety reasons. The stimming check certainly plays a role in that, working from home, people being called back to work when they had got used to being at home. There's this thing that goes around on LinkedIn about you only live once and you might as well do something that that makes you happy. And organizations these days don't seem to be making people very happy. And so these are some of the topics that I think I want to talk about with regards to pay for performance. And I actually put a whole YouTube video together on my personal YouTube channel responding to Tessa White, who goes by the name Job Doc Tessa. And she used to get some pretty good advice. But one of the pieces of advice was if you're going to keep people that you got to pay for performance.
[00:02:19] So let's talk about that, because it's been an interesting journey with regards to pay for performance and at least in my own personal journey, doing public and private seminars where we would talk about pay for performance, which was something that Dr Deming obviously advocated against. And I'd often get a lot of pushback on this. You know, when you're talking about getting rid of incentives or paying for performance at almost every public or private seminar that I did, I get some pushback either allowed during the course of the seminar or privately afterwards that asking if Dr Deming was a socialist or a communist. And I've done other episodes on this particular subject, but I'm from Indiana and in Indiana. Back in the early 1980s.
[00:03:28] There was a project called and New Harmony, Indiana, that basically advocated for collectivism, which was put together as a utopian society by a gentleman, by the British industrialists, by the name of Robert Owen from 1825 to 1827. So let's have a look, maybe a little bit over a year. And then it was dissolved in 1827 because this whole concept of social education and equality did not work well for a lot of different reasons. But the idea of a utopian society in New Harmony, Indiana, was to eliminate crime and poverty and increase health, decrease misery and increase your intelligence and happiness. And this was what this community of equality was supposed to achieve in Indiana.
[00:04:33] And but what happened over time is that people discovered that the equality that this society was advocating, that there were certain rare and very hard working people, you know, putting together the agriculture that was needed for the society or building houses or whatever, is that the hard working realize that they were earning the same as the laziest of the people in the group and that caused conflict. And then people stopped working. So food wasn't being grown and houses weren't.
Deming Len's Episode #49 - Supply Chain and Risk Management
In our 49th Deming Lens episode, host Tripp Babbitt shares his interpretation of wide-ranging aspects and implications of Dr. Deming's System of Profound Knowledge. This month he looks at supply chain and risk management.
Deming Len's Episode #48 - Management (Still) Doesn't Know What Its Job Is
In our 48th Deming Lens episode, host Tripp Babbitt shares his interpretation of wide-ranging aspects and implications of Dr. Deming's System of Profound Knowledge. This month he looks at management's job.
Show Notes [00:00:14]
The Deming Lens - Episode 48
The Lost Art of Quality
The Source of Innovation
What's Happening in Organizations
Transcript [00:00:14] In the forty eighth episode of The Deming Lens, we'll look at Dr. Deming's last interview. Management doesn't know what its job is. For this month's Deming Lens, I was looking around for a subject, maybe something that I've talked about before, which after you've done a few podcast episodes, it's hard not to repeat yourself. But I came across an article from Industry Week and it was Dr. Deming's last interview with a gentleman from Industry Week. His name is Tim Stephens, and the article is titled Dr. Deming. Management today does not know what its job is. And it was a two part article. And I, as I started to read it, just brought back a lot of thinking and and it covered a lot of Dr. Deming's thoughts about quality, management, innovation and things of that sort. And it occurred to me that management still doesn't know what its job is. And in Dr. Deming's in this interview, the question was asked, what is management's job? And Dr. Deming responded, and I'm going to paraphrase a little bit. Here is Bob. They don't understand Mantid mean they management does not understand its responsibilities. They don't know the potential of the position. They lack knowledge or abilities, and there is no substitute for knowledge, which we've heard that phrase over and over again and. After you've studied the work of Dr. Deming for a long period of time, like I have when I went to his four day seminar in the 80s, you know, these things kind of resonate in your mind.
[00:02:39] And you reread them and read articles about them, people's comments about them. There is so much depth to even answering a question like what is what is management's job? And in a word, as Dr. Deming alludes to in this article, it's quality. And, you know, it's such a nebulous word. The word quality can mean a lot of different things to a lot of different people and even for organizations or customers. How do you define that? In this article, Dr. Deming basically said quality what we'll do a customer some good and that what was required was to study the customer, get ahead of him or her. The customer invents nothing we've heard thus, you know, over and over again, it's his famous line which is actually quoted in this article. No customer ever asked for an electric light, a VCR or a CD. And so these are some of the things that Dr. Deming would talk about in terms of quality.
[00:03:59] And I think as time has gone by and you look at quality, first of all, it's a word that's rarely used anymore. We talk about customer experience and we talk about innovation. And I think those are components of quality, but really understanding.
[00:04:17] To me, there's two areas. One is understanding customer expectations of what they're going to get and a product or service. And even their Dr. Deming would say, you know, you as the provider of a service or product, build the expectations of what the customer is going to get. Now. Over time, I've learned to be very critical of organizations because I've seen what they're what they're capable of and what they're performing, and there is a huge delta there between at least at my expectations and what they're delivering from a service standpoint. And there's the curse of W. Edwards Deming, I guess one might say. And so that's the first thing is this this whole thing about expectations, especially if you've experienced good service, then you exper
Deming Len's Episode #47 - SoPK: The Interaction of the Parts
In our 47th Deming Lens episode, host Tripp Babbitt shares his interpretation of wide-ranging aspects and implications of Dr. Deming's System of Profound Knowledge. This month he looks at the interaction of the parts of Dr. Deming's System of Profound Knowledge (SoPK).
Deming Lens #46 - The Art of Tampering
In our 46th Deming Lens episode, host Tripp Babbitt shares his interpretation of wide-ranging aspects and implications of Dr. Deming's theory of management. This month he looks at tampering.
Show Notes [00:00:15]
Deming Lens Episode 46 - The Art of Tampering
Shew hart Invents the Control Chert
Control Charts - Two Mistakes
The Knee-Jerk Reaction to Managing without Control Charts
Tampering in Action
Tampering - The Funnel Experiment
Using the Funnel and Control Charts to Play Golf
Overcorrection in Automation
Transcript [00:00:15] In the 46 episode of The Deming Lens, we'll discuss the art of tampering.
[00:00:29] Hi, I'm Tripp Babbitt, host of the Deming Institute podcast, and this month I wanted to explore tampering. And it really comes to me in a couple of different ways. One is you can identify tampering if you have control charts and also by virtue of the final experiment, whether your system is on target. And I want to go back to a time when I really started to see control charts. I was selling equipment for Mitutoyo here in the U.S. and I saw the front line using the statistical process control charts. And I thought, wow, this is good. And they told me kind of what they did and how they benefited, making better products and things of that sort. But I never really made the association back with control charts being used really for for any data that you have.
[00:01:38] And it was more of a handicap than I than I ever realized, that there were more applications for control charts than just the front line. So when we look at control charts that Dr. Shujaat put together and about, I think was 1925, you really had two different types of mistakes that you could identify.
[00:02:05] And on page 317 of out of the crisis, the first mistake as a scribe, a variation or mistake to a special cause when in fact the cause belongs to the system, common cause.And then the second mistake you can make is ascribe a variation or a mistake to the system, a common causes, when in fact the cause was special.
[00:02:28] Now as a young manager, I was more in charge of inventory, but we would get for an industrial distributor I worked for, we would get monthly reports with all the numbers for that particular month. And it was like getting a report card. You know, you wanted to see how things came out. How are we doing? Where were sales? Were expenses down? Was the inventory up or down? And that was obviously the one I watched more closely.
[00:03:02] And, you know, it was interesting because of the reaction that people would have. It was, you know, psychologically, you felt the need to do something if sales were down or expenses were up, and there would always be these knee jerk reactions. And I was in it to you know, I was watching the inventory of inventory all of a sudden shot up. Then, you know, why was shooting up and try and reduce it immediately. And was it until I started using control charts? Was it long after I worked for the industrial distributor? I just hadn't found the application for it at that time.
[00:03:50] And I wish I would have I would have understood a lot more about systems and variation and things of that sort. So control charts is the first the first way that you can identify whether you're tampering. So if you can imagine if you're you're looking at a monthly report and you're reacting to each month over month, you're going to make probably one of the two mistakes Dr. Deming and Dr. Shujaat identified. And it you know, it's just the way that we're built and it's typically we'll treat everything as a special cause for the most part, because we don't really you know, when you're looking at data and if you don't understand systems, that's just the way you're going to do it. And that can be, you know, say you got a 50 50 chance maybe of getting it right. But I found
Deming Lens #45 - Thank You, Ron Moen
In our 45th "Deming Lens" episode, host Tripp Babbitt shares his interpretation of wide-ranging aspects and implications of Dr. Deming's theory of management. This month he looks at some of the contributions of Ron Moen.
Enjoying the podcast
The content, guests and host have been very informative. Each episode is solid. I am impressed each time Tripp conducts another interview. I like hearing Tripp's interview style and the view each guest brings.
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This is a great PODCAST. Andrea understands Dr. Deming and the world. A great history of industry, and then some wonderful insights about Education today.