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Out of the Crisis

By 24. November 2008 No Comments

Crisis are as old as mankind. Many people have survived several, even two world wars. But what did we learn from it? One great book and thinker I like to introduce to the young ones and refresh the knowledge of the old ones: My Master of the Crisis is Edward Deming. He wrote the book: Out of the Crisis. It was originally published in 1982 by Edward Deming aged 82 at this time, just right for his second career. He offers a theory of management based on his famous 14 Points for Management. Management’s failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

He was much more accepted in Japan, and he was one of the consultants to start the Production Process of the automibile cars in the 50ies. Taiichi Ohno transformed it into the Toyota Way – and his philosophy is still living in the process and leadership style of the Toyota Company.

1. Intrinsic motivation
2. Self esteem
3. Dignity
4. Collaboration
5. Curiosity
6. Yearning for learning

But this is easier said than done and with his 93 years he was a bit fustrated when he said: They did not listen to me, they used what they wanted and did not understand the whole. I talked about transformation and they did optimisation of the existing structures. (Get the whole idea in a video on youtube). I took the job to transcribe the video text, as it is not easy to understand. Please find the text here. video-edward-deming-on-transformation.doc

When I am reading the Toyota Way now – published 50 years later when the story began, it is still the same as Deming. But some can take it better from a success story, even if they think it is from Japan. But perhaps people in Asia have the talent to see, go down to the workfloor (gemba) and watch before you take actions.

Now the challenge in this crisis: Combine this knowledge of Deming with CASH FLOW. Get the company perspective, the workers perspective, the engineering world and the finance world – and let them see the big picture of value creation. All knowledge is there – just be creative and make it now – deconstruct the reality and build a new future. This is what Schumpeter called „Innovation“ – use the destructive energy of economy.Crisis are as old as mankind. Many people have survived several, even two world wars. But what did we learn from it? One great book and thinker I like to introduce to the young ones and refresh the knowledge of the old ones: My Master of the Crisis is Edward Deming. He wrote the book: Out of the Crisis. It was originally published in 1982 by Edward Deming aged 82 at this time, just right for his second career. He offers a theory of management based on his famous 14 Points for Management. Management’s failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

He was much more accepted in Japan, and he was one of the consultants to start the Production Process of the automibile cars in the 50ies. Taiichi Ohno transformed it into the Toyota Way – and his philosophy is still living in the process and leadership style of the Toyota Company.

1. Intrinsic motivation
2. Self esteem
3. Dignity
4. Collaboration
5. Curiosity
6. Yearning for learning

But this is easier said than done and with his 93 years he was a bit fustrated when he said: They did not listen to me, they used what they wanted and did not understand the whole. I talked about transformation and they did optimisation of the existing structures. (Get the whole idea in a video on youtube). I took the job to transcribe the video text, as it is not easy to understand. Please find the text here. video-edward-deming-on-transformation.doc

When I am reading the Toyota Way now – published 50 years later when the story began, it is still the same as Deming. But some can take it better from a success story, even if they think it is from Japan. But perhaps people in Asia have the talent to see, go down to the workfloor (gemba) and watch before you take actions.

Now the challenge in this crisis: Combine this knowledge of Deming with CASH FLOW. Get the company perspective, the workers perspective, the engineering world and the finance world – and let them see the big picture of value creation. All knowledge is there – just be creative and make it now – deconstruct the reality and build a new future. This is what Schumpeter called „Innovation“ – use the destructive energy of economy.

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