Introduction
Organizations are comprised of various departments with different functions but the same objective. Thus, leaders need to understand how each system is related to another to establish a way of maximizing the contribution of each segment and enhancing the performance of the business. The management should have theoretical knowledge of the systems to predict the possible impact of their current input. The rational forecasting needs theoretical knowledge as it builds knowledge through procedural revisions and extension of the framework based on comparing the future expectations with recent observation. The objective of this paper is to discuss Deming’s model concerning how it can be applied in today’s enterprises in creating and adapting to change.
Brief Background of Deming
William Edwards Deming was an academician who specialized in Mathematics, Physics and Statistics. Deming gained popularity after the Second World War when he was requested by Japan to assist them in rebuilding their economy by teaching statistical methods. At the age of 80 years, Deming returned to the United States and was featured as the main protagonist in a documentary. The title of the film was If Japan Can…Why Can’t We? This further escalated his fame, and he received many seminar invitations where he taught people about the basic tenets of quality in an organization. His work as a consultant and belief that there should be joy at work earned him the title, father of Quality Management Movement. Inspiring business to apply his principles and realize positive transformation became his ultimate function up to the time of his death.
Background on Deming’s Systems Management Model
Deming’s model of System thinking approach to management is based on his portrayal of an organization as a set of related and interconnected components that function together to accomplish the same aim. The firm needs to have a shared vision which is the capacity to regard a shared image of the future that the people desire to create. One of the beliefs that Deming held is that a system cannot manage itself; hence the leaders should guide the company through system thinking. In addition, the managers should be aware of incremental threat to avoid falling into blind sport, which emanates from failure to distinguish special and common causes of variation.
Organizational managers should understand the interaction between the people in an organization and the environment. The system is a representation of synergy formed collectively by the team of workers and can therefore not be achieved by a single employee. Thus, everyone should share the unifying purpose and remain consistent in owning the vision. The nature of democratic participation means that the managers have to give up control and make decision making to be decentralized. Deming gave fourteen proposals for managers who want to succeed in their business. They include consistent purpose, adoption of contemporary philosophy, stop depending on inspection for quality, cease price tag awards, continuous improvement, better training, institute leadership, and drive out fear. The other proposals are break barriers, eliminate slogan and standards, enhance pride in workmanship, self-improvement and teamwork.
Use of System Thinking Today
There are four paradigms shift of system thinking, which are essential for today’s organizational success. The first one is managing through the improvement of processes to realize results instead of merely making demands. For a company to improve and remain innovative, it must understand how to initiate highly capable processes that can aid in predicting the future and the desired result. To achieve this, the management needs to be empowered to create and record best practices using the standardize-Do-Study-Act cycle (SDSA). In addition, workers need to be motivated to innovate best practice method through following the Plan-Do-Study-Act framework. The management should nurture an environment that encourages and supports planned experimentation. Noteworthy, the current business environment is characterized by intense competition hence the need to differentiate the business model from rivals through this paradigm.
The second prototype is managing through balancing intrinsic and extrinsic motivation for each person. The former emanates from the pure joy of completing a task, while the latter comes from desire to be rewarded and fear to be punished. The workplace should not have barriers that limit individuals from utilizing their skills and knowledge. The other lesson for business is to always hire workers for positions that are well suited for their personality and experiences to enjoy the work.
Next, the application of the third paradigm requires that current organizations promote cooperation rather than competition. Most firms have long followed the wisdom of scholars and theorists who advocate for rivalry within an industry. Many enterprises fail because they aim for more than they can achieve and compare their profit with other big companies, leading to discouragement and jealousy. Cooperation through such activities as benchmarking and partnership will help businesses learn and enhance their strategy for better success. Finally, the corporations need to manage by optimizing the entire system, not just its components. Central to this idea is that failure in one department or stakeholder negatively affects the business as a whole. Therefore, a sustainable model for today’s business can cater to the needs of investors, employees, customers, suppliers, regulators, and the community. The supply chain needs to be intact for the enterprise to withstand changes.
Creating Competitive Advantage through Innovative Engineering
Companies need to constantly develop new ideas to improve their processes and achieve a better competitive niche. Deming utilized statistical control to aid in engineering innovation. One of the basic proposals for the theory was that business owners must have faith that a future will come. To make a stable foundation for the days to come, the management must declare an unshakable commitment to productivity and quality. The implication is that the leaders need to understand not just the short-term but also the long-term process. When an individual has an idea about how the future outcome will be, they are more likely to start thinking of strategies to mitigate the challenges before they emerge.
The other recommendation that Deming gave was that organizations must have constancy of purpose and utilize the PDSA cycle to achieve innovativeness. The firm managers must understand the vision of the company and influence the rest of the stakeholders and partners to work together in achieving the purposes. The first step after understanding the goal is to make a plan and standardize the formula for being successful. Doing is the next step in the cycle which implies the actual implementation. As the business leader engages in the practice for a period of time, they can see a pattern which needs to be evaluated. The decision to act, fully integrate the idea is based on the results of the assessment. The process helps to ensure that every idea is tested for viability before its full adoption.
Conclusion
It is increasingly essential for organizations to incorporate system thinking in all business systems to enhance innovativeness. Deming used his theoretical knowledge in statistics to help Japan improve its economy after the devastating effects of the Second World war. He went ahead to provide consultancy services to companies in the United States. The model provides managers with practical advice that they can use in planning for the future. In addition, it can be used to create an enabling environment for employees implement innovative ideas and create a better competitive edge.