A new paradigm for managing people, systems and processes. Edwards Deming "Overcoming the Crisis"

The book is good, but very difficult to read. Maybe I think so because I'm spoiled by books like "Clients for Life" and "Selling the Invisible." But it's actually a bit heavy.

Firstly, despite the title "Overcoming the Crisis", this book is not about the modern crisis. It was written somewhere in 1980, and translated into Russian only in 2007. Of course, the production problems discussed in it are still relevant today. But the presentation form is “heavy” for today’s reader.

Secondly, the book contains many references to mathematical statistics. If you are not good at mathematics at all, you will be bored by all these variances, sigmas, limits, etc. And without them it will be completely incomprehensible.

Thirdly, the book simply huge amount examples from the author's work experience. Examples of errors with various enterprises. Not just different, but very, very different. I have always believed that the flaw of many business books is an excess of theory and a lack of examples. But it turned out that the opposite happens.

Once again I would like to clarify - the book good, but very heavy.

If I try to briefly convey the main thoughts, I think it will come out as follows:

1. A book about quality. The main idea, repeatedly proven in it, is that increased quality leads to increased productivity. If you're willing to just believe it, you don't have to waste time reading all this evidence. But basically the order is this: the higher the quality, the lower the cost of correcting errors. Perhaps if you consider how much it really costs you if you didn't do it right the first time, you'll understand right away.

2. Quality must be achieved not at the end of the production cycle, but from the very beginning. Testing, control, measurements, sampling - do not in themselves lead to improved quality. They only provide data for statistical analysis, which helps to separate common reasons from special ones. Using this data, it is necessary to direct your efforts to correct the process itself or the conditions in which it occurs in order to improve the quality of the resulting product. Quality must be "built into the product".

3. It is necessary to distinguish between general and special reasons for marriage. They can only be distinguished using statistical analysis methods. Common causes of marriage are those caused by the system and appearing consistently. Special causes are causes caused by special, episodic circumstances. Example: a worker sharpens nuts. The diameter of the nuts “floats” with a spread of 1 mm. If the scatter appears consistently ( "is in a statistically controlled state"), then it makes no sense to try to blame the worker for this. This means that the system itself (machine, workpieces, working conditions, worker training system) generates such quality. It makes no sense to motivate a worker to best quality. If the result is stable, it is most likely that he will not be able to improve it. These are common reasons. We need to change the system. Set up a machine, change supplier of workpieces, etc. But if deviations, say 2 mm, occur sporadically and "beyond statistical expectation", then these are most likely special reasons, and they may be associated with the worker themselves (he went out drunk, buried his mother-in-law, his eyesight deteriorated). When general and special causes are confused, the result is negative.

4. Management is responsible for everything. As should already be clear from point 3, the system is to blame for most marriages. And the system is controlled by managers. Therefore, only management should be responsible for quality, which has the power to influence the system (replace a machine or supplier, or the entire technical process in general). Management should use test results to detect problem areas and correct them. And not just to weed out defective parts and punish “guilty” performers.

5. Quality improvement is a continuous and constant process. Since 1950, Japan began to transform into a great industrial power, precisely relying on the work of Deming. They set themselves the national task of not just improving the quality to the designated tolerances, but constantly improving the quality. Always. The diameter of the nut began to deviate by only 0.001 mm? Great. We continue to think about how to improve it further. (Although here, of course, it is worth remembering Goldratt’s principles and directing your efforts primarily to what is the greatest limitation)

6. You should not give quantitative goals to employees. If an employee is motivated to fulfill the plan, he will do it “at any cost.” The plan does not allow the employee "proud of his work". Instead of such motivation, you need to improve the system itself so that it allows you to produce the volumes you need. And the employee must be motivated for quality. So that he can be proud of his work.

What practical conclusions could be drawn?

For software developers: To have fewer bugs, you don’t need to hire more testers. We need to work on the formulation of the problem and on the interaction between the director and the developer. Train programmers.

For restaurateurs: to keep guests happy, there is no need to change waiters and cooks like gloves. We need to train them. Investigate what prevents them from performing well and correct it. Broken stove? Freezing terminal? Rotten food? By the way, this also applies to suppliers. Deming recommends reducing the number of suppliers as much as possible and building long-term relationships with them. Motivate them with the terms of the contract for quality products and timely deliveries. Patiently train them too.

In general, the final thought is this: if you want to turn your enterprise into a superpower, work on quality!

Now I will think what practical application These principles can be found in the accounting system...

This book is for those who have already realized that business cannot be run traditional methods because the world has changed. Edwards Deming, outstanding consultant of the 20th century, one of the authors of the “Japanese economic miracle", poses an intellectual and moral challenge to the stereotypes of traditional management. His revolutionary theory offers the philosophy, methods and management technologies necessary to build a sustainable, efficient business that balances the interests of all stakeholders: consumers, employees, owners, suppliers, and society as a whole.

The proposed principles and concepts are illustrated by numerous examples from various industries, services and management. The book will be of interest to managers at all levels, entrepreneurs, engineering and technical workers, as well as teachers and students of organizational, management and engineering specialties.

Characteristics of the book

Date written: 1986
Date of translation: 2007
Name: Way out of the crisis. A new paradigm for managing people, systems and processes

Volume: 620 pages, 121 illustrations
ISBN: 978-5-9614-3893-2
Translator: V. Shper, Yu. Adler
Copyright holder: Alpina Digital

Preface to the book “Overcoming the Crisis”

My acquaintance with the management philosophy of Dr. Williams Edwards Deming began with a meeting with Grigory Nosonovich Fidelman, an admirer and popularizer of the ideas of the world-famous scientist in the Russian business community. Grigory Nosonovich gave me two books: “Alternative Management,” which he co-wrote with Yu.P. Adler and V.S. Dedikov, and “Dr. Deming’s Space” by Henry Neave. After reading both books, I realized that the management philosophy described in this book and those listed above is nothing less than the basis for developing a business that is capable of achieving an international level of competitiveness.

After reading this book, you will discover 14 principles for building a globally competitive business, get answers to questions about how to unite people around one goal, how to achieve teamwork in the true sense of the word, how to create an atmosphere of trust between employees, between employees and management, between managers and business owners. It is difficult to overestimate the importance of such a derivative teamwork, as “collective wisdom”, at the stage of qualitative development of the company and for further increasing the profitability of the business, nothing can replace it. The red thread running through the book is the meaning of the category “trust” for successful business, how difficult it is to cultivate it and how carefully you need to treat such subtle matter. An important aspect financial well-being- building business management not on the basis of even the most objective numerical indicators, but based on an understanding of the variability (variability) of these indicators and the nature of variation. Another aspect that is also of great importance is the commitment to quality. The reader will discover unlimited possibilities, which provides continuous improvement in quality, where both the company and the buyer benefit as a result.

This book is especially useful for owners and senior management of companies. I'm sure you won't be disappointed. Even if you just read this work and do not apply the principles set out in the book, you will gain food for thought, enrich yourself with knowledge about a completely different approach to business, and understand that in betting on winning long distance it is important and necessary to rely on the people working in the company, on their knowledge and experience. And you will definitely feel their gratitude for their trust, they will repay you with hard work and dedication.

Indeed, once you start reading “Overcoming the Crisis,” as well as Henry Neave’s book “Dr. Deming’s Space,” you understand the meaning of the word “consent.” IN lately Many tools have been developed for creating a successful business, one of the most popular is the balanced scorecard system (BSS) by Robert Kaplan and David Norton. The largest international companies began to hastily implement the BSC, because they believed that this was the very key that would give them a new impetus for development. At the same time, facts indicate that only less than 10% of Western companies have successfully implemented the BSC and thus implemented their own strategies. It has been noted that the main reason for failure is the low involvement of middle and below average level employees in the implementation of strategic plans. Naturally, various consulting companies specializing in the development of the BSC and its implementation offer all sorts of ways to solve this problem. However, all of the above is the tip of the iceberg, something that many have never seen hidden under water. Everything that is written in this book reveals to a greater extent the underwater part of this “ice mountain” and will give answers to many questions to which the dear reader, it would seem, has already despaired of getting an answer.

Foreword by scientific editors

This book appeared a quarter of a century ago and was first published in the USA. The reason for its writing was the crisis that American industry was experiencing at that time. The book caused heated debate and divided the debaters into enthusiastic supporters and irreconcilable opponents. The controversy continues to this day, although after the author’s death in December 1993 (at the age of 94), its character has changed somewhat. The book has been reprinted several times; this translation is based on the 2002 edition. So why are we returning to the problems of a bygone era?

There are works done on occasion that do not lose relevance years later, and perhaps they will live for centuries. This is exactly the book you are holding in your hands now. This book was an attempt to answer the question of the causes of the crisis of American industry in the context of the Japanese competitive offensive in the late 1970s and early 1980s. And as a result, a work appeared summarizing the principles and methods of a new approach to management, which can only be called revolutionary.

Unfortunately, until recently the Russian reader did not have the opportunity to become familiar with Deming’s teachings in any detail. And although the first attempt to publish this work of the professor in Russian was made back in 1994 (1), the quality of the translation and publication did not allow the book to win the mass reader.

As far as we know, the first publication about Deming in Russian appeared in the journal “Course on Quality” (1991) (2). It was magazine version first chapter of Nancy Mann's book (4). Almost immediately after this great article about Deming appeared in the magazine “America” (5), published in Russian. It was written by the talented American journalist L. Dobyns, the author of the text for the famous television report “If Japan Can, Why Can’t We?”, which was shown by NBC in 1980. It was after this report that Deming became famous in America. In 1998, the book by Yu. Adler and L. Makhovikova, “Should a Country Be Poor?”, was published, which briefly described the essence of Deming’s teachings (6).

However, no matter how much they write about Deming and his teaching, so far, in everyone’s opinion, the best introduction to the world of the management concept he created is the book by his student and friend Dr. Henry Neave. The path of this book to the reader was also long and difficult. The first part of the translation of the book was published by the Committee for higher school Russian Federation in 1996 (7). We had to wait five years for the second part until it was published by the publishing house “Standards and Quality” (8). It was only in 2005 that both parts finally came together in the book “Dr. Deming’s Space: Methods for Building a Sustainable Business,” published by Alpina Business Books (9). In the preface to this publication, we said that for complete happiness, the Russian-speaking reader only needs an adequate Russian translation of Deming’s book “Exiting the Crisis.” And now I want to believe that the happy moment has arrived. Now the Russian reader can get acquainted with Deming’s teachings not only through talented, but still retellings and interpretations, but also “hear the voice” of the doctor himself, which will undoubtedly give a synergistic effect.

Deming created an innovative theory of management. According to Albert Einstein, the sign of a truly new, breakthrough theory is that it seems “abnormal” or “crazy” to its contemporaries. From the very moment of its appearance, Deming's theory has posed not only an intellectual, but also a moral challenge to everyone who tries to study it, much less apply it in practice. And evidence of this is the numerous and often harsh criticism of Deming. And although his arguments are based on systematic approach and the theory of variability, apparently, modern society for the most part is not ready to accept these arguments (10).

This means that the stated theory offers not only a new conceptual, scientific and methodological basis for management, but also a different worldview, a different value orientation. It requires a profound transformation of modern practice, in which the interests and needs of people - consumers, employees, managers - and society as a whole are subordinated to a narrow, myopic interpretation of the economic interests of capital owners. It was not for nothing that Deming’s contemporaries in the United States called him the “pink professor” and “revolutionary of capitalism.”

You can understand the origins of this revolutionary theory if you remember who Deming studied with and whose ideas he relied on.

Way out of the crisis. A new paradigm for managing people, systems and processes - Edwards Deming (download)

(introductory fragment of the book)

Edwards Deming

Way out of the crisis. A new paradigm for managing people, systems and processes

Translators Yu. Adler, V. Shper

Scientific editors Y. Rubanik, Y. Adler, V. Shper

Technical editor N. Lisitsyna

Editor N. Velichenko

Production editor S. Turco

Corrector O. Ilyinskaya

Computer layout K. Svishchev

Art director S. Timonov

Illustrator D. Izotov

All rights reserved. The work is intended exclusively for private use. No part of the electronic copy of this book may be reproduced in any form or by any means, including posting on the Internet or corporate networks, for public or collective use without the written permission of the copyright owner. For violation of copyright, the law provides for payment of compensation to the copyright holder in the amount of up to 5 million rubles (Article 49 of the Code of Administrative Offenses), as well as criminal liability in the form of imprisonment for up to 6 years (Article 146 of the Criminal Code of the Russian Federation).

* * *

Preface to the Russian edition

With agreement, the small grows; with disagreement, the greatest is destroyed.

From Sallust

After reading this book, you will discover 14 principles for building a globally competitive business, get answers to questions about how to unite people around one goal, how to achieve teamwork in the true sense of the word, how to create an atmosphere of trust between employees, between employees and management, between managers and business owners. It is difficult to overestimate the importance of such a derivative of teamwork as “collective wisdom” at the stage of qualitative development of the company and for further increasing the profitability of the business; nothing can replace it. The red thread running through the book is the meaning of the category “trust” for a successful business, how difficult it is to cultivate it and how carefully one must treat such a subtle matter. An important aspect of financial well-being is the construction of business management not on the basis of even the most objective numerical indicators, but based on an understanding of the variability (variability) of these indicators and the nature of variation. Another aspect that is also of great importance is the commitment to quality. The reader will discover the unlimited possibilities that continuous quality improvement provides, with both the company and the customer benefiting as a result.

This book is especially useful for owners and senior management of companies. I'm sure you won't be disappointed. Even if you just read this work and do not apply the principles set out in the book, you will gain food for thought, gain knowledge about a completely different approach to business, and understand that when betting on winning over the long haul, it is important and necessary to rely on people working in the company, on their knowledge and experience. And you will definitely feel their gratitude for their trust, they will repay you with hard work and dedication.

Indeed, once you start reading “Overcoming the Crisis,” as well as Henry Neave’s book “Dr. Deming’s Space,” you understand the meaning of the word “consent.” Recently, many tools for creating a successful business have been developed, one of the most popular is the balanced scorecard system (BSS) by Robert Kaplan and David Norton. The largest international companies began to hastily implement the BSC, because they believed that this was the very key that would give them a new impetus for development. At the same time, facts indicate that only less than 10% of Western companies have successfully implemented the BSC and thus implemented their own strategies. It has been noted that the main reason for failure is the low involvement of middle and below average level employees in the implementation of strategic plans. Naturally, various consulting companies specializing in the development of the BSC and its implementation offer all sorts of ways to solve this problem. However, all of the above is the tip of the iceberg, something that many have never seen hidden under water. Everything that is written in this book reveals to a greater extent the underwater part of this “ice mountain” and will give answers to many questions to which the dear reader, it would seem, has already despaired of getting an answer.

E.N. Begimbetov, Chairman of the Board of Insurance Company "London-Almaty"

Foreword by scientific editors

Message from a Troublemaker

Only knowledge can change the world, and nothing else.

Yukio Mishima

As far as we know, the first publication about Deming in Russian appeared in the journal “Course on Quality” (1991) (2). This was a magazine version of the first chapter of Nancy Mann's book (4). Almost immediately after this, a large article about Deming appeared in the magazine “America” (5), published in Russian. It was written by the talented American journalist L. Dobyns, the author of the text for the famous television report “If Japan Can, Why Can’t We?”, which was shown by NBC in 1980. It was after this report that Deming became famous in America. In 1998, the book by Yu. Adler and L. Makhovikova, “Should a Country Be Poor?”, was published, which briefly described the essence of Deming’s teachings (6).

However, no matter how much they write about Deming and his teaching, so far, in everyone’s opinion, the best introduction to the world of the management concept he created is the book by his student and friend Dr. Henry Neave. The path of this book to the reader was also long and difficult. The first part of the translation of the book was published by the Committee on Higher Education of the Russian Federation in 1996 (7). We had to wait five years for the second part until it was published by the publishing house “Standards and Quality” (8). It was only in 2005 that both parts finally came together in the book “Dr. Deming’s Space: Methods for Building a Sustainable Business,” published by Alpina Business Books (9). In the preface to this publication, we said that for complete happiness, the Russian-speaking reader only needs an adequate Russian translation of Deming’s book “Exiting the Crisis.” And now I want to believe that the happy moment has arrived. Now the Russian reader can get acquainted with Deming’s teachings not only through talented, but still retellings and interpretations, but also “hear the voice” of the doctor himself, which will undoubtedly give a synergistic effect.

Deming created an innovative theory of management. According to Albert Einstein, the sign of a truly new, breakthrough theory is that it seems “abnormal” or “crazy” to its contemporaries. From the very moment of its appearance, Deming's theory has posed not only an intellectual, but also a moral challenge to everyone who tries to study it, much less apply it in practice. And evidence of this is Deming’s numerous and often harsh criticism. And although his arguments are based on a systems approach and the theory of variability, it seems that modern society for the most part is not ready to accept these arguments (10).

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ISBN: 978-5-9614-3893-2
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Business book description:

This book is for those who have already realized that business cannot be conducted using traditional methods, because the world has changed. Edwards Deming, an outstanding consultant of the 20th century, one of the authors of the “Japanese economic miracle,” poses an intellectual and moral challenge to the stereotypes of traditional management. His revolutionary theory offers the philosophy, methods and management technologies necessary to build a sustainable, efficient business that balances the interests of all stakeholders: consumers, employees, owners, suppliers, and society as a whole. The proposed principles and concepts are illustrated by numerous examples from various industries, services and management. The book will be of interest to managers at all levels, entrepreneurs, engineering and technical workers, as well as teachers and students of organizational, management and engineering specialties.

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