Re: Deming and Toyota

[John Dowd <jsdwd@comcast.net>]

Thank you John for an interesting message:

Below you mention two issues that I have dealt with for years with regard to
Deming's teachings and Japanese practices.

People have said, "Deming says to abolish the performance rating" and,
"Deming says to eliminate numerical goals", yet many Japanese companies do
both.  How can that be?

There are three responses I have given over the years.

First, much of what Deming wrote in Out of the Crisis and the New Economics
has to do with prescriptions for 'Western' management.  Deming was quite
clear about this with the 14 points.  So, what Deming advocates for the
Western style managers and what he prescribed for the Japanese are different
(of course).

Second, just because the Japanese do something doesn't make it correct.  One
must beware of blindly copying practice without an understanding of the
thinking behind it (theory).  It may be that Toyota enjoys it's success in
sprite of the annual merit rating.  How would one know?

Finally, there is a general issue and that is a  western predilection for
action over thought. Deming used to say, "There's no substitute for brains"
and dropped it as being (I suppose) too harsh.  He replaced that with,
"There's no substitute for knowledge."  He always emphasized strongly the
necessity for understanding as opposed to blind action.

So there is no simple series of steps, or any particular formula to follow;
no "instant pudding" as he would have said.  Thought and change will be
required to enjoy the kind of success that Toyota enjoys.  Management will
have to move from looking for simple actions that will lead quick success
toward a deeper understanding of the antecedents of success.  Long term
'constancy of purpose' as it were.

That approach runs through all that you discover about Toyota and their
success.  Whether you read about it in the links John has provided or read
The Toyota Way by Jeff Liker (which I suggest), one sees that more than
anything else what is required is thought.

That is central to Deming and to competitive success.  Each organization
must undertake to understand how all the principles and actions will play
out in their location, with their special and varying requirements, with
their  unique group of people, etc.

Let's remember that if this were easy to do, everyone would already be doing
it and Toyota's success would not have taken decades to become noticeable.


> I do not believe Toyota has "abolished the annual rating or merit
> system" - I may be wrong (I just figure I would have heard of it if
> they had).
> 
> One point that I believe people confuse is, "eliminate numerical
> goals, numerical quotas and management by objectives." Toyota does
> mention numerical goals. However, the way they talk about numerical
> goals I do not feel conflict with Deming's point. For example, see: