Organisational Change Management Volume 1

Framework 21 14 Points and 5 Deadly Sins

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(Edward Deming)

The 14 Points

1. Create constancy of purpose for improvement of product and service - the organisation's role is more than making money; it is to stay in business and provide jobs through innovation, research, constant improvement and maintenance

2. Adopt the new philosophy - intolerance of poor workmanship and service, and mistakes and negativism are unacceptable

3. Cease attention on the inspection - inspection at the end of a production line is counterproductive, ie in effect, workers are being paid to make defects and then to correct them. Quality comes not from inspection but from improvement of the process

4. End the practice of awarding business on price tag alone - should seek the supplier with best quality

5. Improve constantly and forever the system of production and service - improvement is not a one-time effort; it is a continual process of reducing waste and improving quality

6. Institute training - too often, workers have learned their job from another worker who was never trained properly

7. Institute leadership - the job of a supervisor is not to tell people what to do, or to punish them, but to lead. Leading consists of helping people to do a better job, and of learning, by objective methods, who is in need of individual help

8. Drive out fear - many employees are afraid to ask questions or to take a position, even when they understand what the job is or what is right or wrong. People will continue to do things the wrong way, or to not do them at all. The economic loss from fear is appalling whereas better quality and productivity enhances feelings of security.

9. Break down barriers between staff areas - often staff areas such as departments, units, etc are competing with each other or have goals that conflict. As they do not work as a team, they cannot solve or foresee problems. Worse, one department's goals may cause trouble for another

10. Eliminate slogans, exhortations and targets for the workforce - instead of management allow the staff to develop these

11. Eliminate numerical quotas - quotas take account only of numbers, not quality or methods. They are usually a guarantee for inefficiency and high cost, ie sometimes a quota is met at any cost and without regard to damage to the organisation

12. Remove barriers to pride in workmanship - people are eager to do a good job and become distressed when they can't. Too often misguided supervisors, faulty equipment and defective materials stand in the way. These barriers must be removed

13. Institute a vigorous program of education and retraining - both management and the workforce will have to be educated in the new methods, including teamwork and statistical techniques

14. Take action to accomplish the transformation - management and workers need to work as one

It is interesting to note that 7 of these 14 points are rational and the other 7 are non-rational. Most organisations are better at implementing the rational ones than non-rational. In fact the latter are generally ignored.

5 Deadly Sins

1. Lack of constancy of purpose - need to have long-range plans

2. Emphasis on short-term profits - an aim to increase quarterly results can undermine quality and productivity

3. Evaluating pay performance, merit rating, or annual review of performance - they can encourage rivalry, build fear, and leave people feeling shattered. Furthermore, they encourage mobility of management to other organisations

4. Mobility of management - job-hopping managers never understand the organisations that they work for, and lack commitment to long-term changes linked with quality and productivity

5. Running an organisation on visible figures alone - the most important figures are unknown and unknowable, such as customer referrals

(source: Mary Walton, 1986)

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