This post I want to talk about Deming’s insight into what he called “The Seven deadly Diseases."
1. Lack of constancy of purpose
2. Emphasis on short term profits
3. Evaluation by performance, merit rating, or annual review of performance.
4. Mobility of top management (too much turnover causes numerous problems)
5. Running a company on visible figures alone.
6. Excessive Medical Costs
7. Excessive legal damage awards swelled by lawyers working on contingency fees
I want to focus in on point one first. It is pretty much saying what I mentioned last post concerning priorities. In his own words in his book, “Out of the Crisis” he says it in this way concerning the first of the deadly diseases:
Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs.
He knew that there could be no job and no company if there were no market. That’s another way of saying if there were no profits. Planning products and services i.e. developing a market is the strategy that leads to the rest.
He mentions the short-term outlook of American industry by focusing in on only the quarterly dividend. Rather he says that it is far better to increase profits by working toward constant improvement of processes and services and products that will bring the customer back over and over again.
That is the first thing that Deming says, if neglected will eat away at our company like a disease, eventually killing it.
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