Background
The point under discussion is Dr. Deming’s principle of “adopting a new philosophy.” This point focuses on the critical flaws of the existing managerial practices imposed by Western philosophy. Dr. Deming believes that the basic principles of this philosophy cannot be applied to American companies and are likely to impede their progress. There is a series of problems that cannot be tolerated. First, Dr. Deming points out the problem associated with the commonly accepted mistakes. He believes it should be eliminated, and employees should realize they do not have a right to make a mistake whatever insignificant it might appear.
Poor quality should not be allowed under any conditions. Second, Dr. Deming considers the employees’ awareness of the jobs they perform to be poor. Thus, they do not have a clear vision of the responsibility scope and the strategies they should apply to achieve the set targets. Third, the existing training methodology is antiquated – the entire system needs revision and update.
Additionally, he points out that modern supervision practices are ineffective because managers are not rooted in the relevant companies – they constantly shift from one department to another. As a result, they are not interested in understanding the corporate values and promoting them among their subordinates. Thus, it is the misleading objectives set by managers that result in the poor quality of companies’ performance. Therefore, Dr. Deming proposes that the entire corporate culture should be revised and improved.
Current Condition
Analyzing the way Costco applies the discussed principle to its operations, it might be suggested that the company neglects some principles even though it is generally committed to quality and continual improvement. Thus, the principles of consistent training and corporate culture are established at all levels of the organizational structure. Common mistakes are not tolerated and required to be immediately eliminated whenever they appear. The managers, as well as their subordinates, have a perfect understanding of the cost of delays and setbacks in the modern market.
The employees’ awareness of their job responsibilities is likewise high. Meanwhile, it might be suggested that the vision of corporate goals and values might differ within the divisions. This phenomenon can be determined by the “job-hopping” that Dr. Deming describes. As a result, the objectives set by some supervisors might sometimes be inconsistent with the company’s needs and the interests of its key stakeholders. Thus, Dr. Deming’s principle of adopting a new philosophy should be implemented to raise the corporate culture and enhance the quality of its performance.
Target Condition
The adoption of Dr. Deming’s point opens numerous prospects for Costco’s improvement. The updated philosophy that Dr. Deming promotes will help to establish consistent supervision policies and enhance the corporate culture. As a result, the company will be more effective in targeting and meeting the needs of its customers.
Since the strategy of the quality and continual improvement will help to align the departments’ activity to the common goals and values, Costco will show better performance and offer high-quality services and products. As a consequence, it will strengthen its competitive advantage in the market and increase the revenues from a long-term perspective. A clearly-defined philosophy will serve to be the basis for designing effective supervision strategies and outlining the expectation scope for the employees to raise their awareness of the work they need to perform.