A New Lens with Balaji Reddie (Part 6)

What happens when an organization gets so focused on results that it forgets why it exists? Andrew Stotz and Balaji Reddie dig into the first of Deming's 14 Points, constancy of purpose, using stories like Harvard's answer to Deming's challenge to define a business and Indian manufacturers who pivoted to build PPE during the pandemic. This conversation may change how you think about success, profit, and the real aim of a business.

TRANSCRIPT

0:00:02.4 Andrew Stotz: My name is Andrew Stotz and I'll be your host as we dive deeper into the teachings of Dr. W. Edwards Deming. Today I'm continuing my discussion with Balaji Reddie, an educator and trainer in the teachings of Dr. Deming and quality management generally. I'm really excited for today's topic, which is the 14 Points. Take it away, Balaji.

0:00:27.5 Balaji Reddie: Thank you. Thank you, Andrew. So the last time we spoke, we had discussed all the four sciences that Dr. Deming put together. In a nutshell, we said his words, appreciation for a system. That means appreciating that there are no events, there are eventualities, and there is a huge myriad or a huge system of myriad components that create these outcomes. So we need to understand that. We need to appreciate the fact that these are all interconnected, interdependent, these components. Right. And we saw some other attributes that when they interact with each other, the cause and effect are not closely related in time or space. Seemingly disconnected events then turn out to be connected. There exist synergistic relationships. So you can't just straightaway say, "I know." You can say, "From what I understand or what knowledge I have right now about the system, I think."

0:01:34.7 Balaji Reddie: And you always dig deeper. Right. And that gave us the next thing, that the performance of any system, the outcomes are subject to Variation. You will never get the same outcome every single time. It keeps on fluctuating. And then we realize there is a difference between normal and abnormal fluctuations. The typical term that Walter Shewhart said was Variation, and Deming took that forward. He said, "Understand Variation." I would say learn how to think statistically. Right? And statistical thinking is about knowing when to act and when to leave a process alone. Okay. So we said understand the Variation, and you should know when to... There's that normal fluctuation, you would need to work on it continually. But abnormal fluctuation is a little ea