"The Lightning Speed Internet Sales Success Course" LESSON #18 © 1997 B.S.A. / F.M. http://web.idirect.com/~bsa/index.htm _______________________________ THE TOPIC: Why the process behind your business is the only thing that matters - and the 14 ways to develop that process while avoiding the "7 Deadly Diseases". THE ANSWER: To quote Dr. W. Edwards Deming, the guy who transformed Japan's attitude towards business decades ago and gave them the philosophy that has made them a giant today ... "The 14 points are the basis for transformation of American industry. It will not suffice merely to solve problems, big or little. Adoption and action on the 14 points are a signal that the management intend to stay in business and aim to protect investors and jobs. Such a system formed the basis for lessons for top management in Japan in 1950 and in subsequent years. The 14 points apply anywhere, to small organizations as well as to large ones, to service industry as well as to manufacturing. They apply to a division within a company." DR. DEMING'S FOURTEEN POINTS 1) Constantly improve product or service, with the GOAL of providing jobs. 2) Take on leadership for change. 3) Create quality in the first place; eliminate the need for constant inspections. 4) Maintain long-term relationships of loyalty and trust instead of moving from one source to another on cost alone. 5) Constantly improve the SYSTEM towards perfect quality and productivity. 6) Train people on the job. Make training part of the job. 7) Supervise workers, management, machines. Institute leadership. 8) Eliminate fear from the job so that people may work effectively. 9) Break down divisions between divisions. 10) Do not ask workers for specific low levels of defect or high levels of productivity. Productivity and quality are a result of the SYSTEM (or PROCESS), not a result of the workers! 11) Eliminate quotas and other numerical "standards" of performance. Substitute leadership. 12) Don't manage by numerical goals or objectives. Substitute leadership. 13) Make self improvement and education part of everyone's job. 14) The transformation is everybody's job! ---------------- DR. DEMING'S SEVEN DEADLY DISEASES 1) Lack of consistent purpose to keep a market and provide jobs. 2) Emphasis of short term profits (boy, do most North American companies drop the ball on THIS one!) 3) Evaluation of performance, merit rating or annual review - or any process that assigns a number or judges a worker. 4) Job hopping. 5) Management by numbers alone. 6) Excessive medical costs. 7) Excessive costs of liability, brought about by high paid lawyers.