Deming's System of Profound Knowledge

If you work in quality and improvement, you know W. Edwards Deming (October 14, 1900 - December 20, 1993).  He was an American statistician, professor, author, lecturer and consultant.  He is perhaps best known for his work in Japan.  There, from 1950 and onward, he taught top management how to improve design and service, product quality, testing, and sales through various methods.  He received the Distinguished Career in Science Award from the National Academy of Sciences in 1988.

In 1993, Dr. Deming published his final book, The New Economics for Industry, Government, and Education, which included the System of Profound Knowledge and the 14 points for management. The key is to practice continual improvement and think of manufacturing, not just bits and pieces.  The prevailing style of management must undergo transformation.  A system cannot understand itself. The transformation requires a view from the outside.  For example, many hospitals in the country will have to transform to meet coordination of health care like the Accountable Care Organization (ACO). It is imperative, as hospitals are required to start following mandates and guidelines set forth by the ACO, that current systems in place, which are broken and not producing results, are viewed from an objective, "outsiders" view, from top to bottom, to truly make an effective transformation. 

Deming advocated that all managers need to have what he called:
The System of Profound Knowledge, consisting of four parts:

1. Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services;
2. Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements;
3. Theory of knowledge: the concepts explaining knowledge and the limits of what can be known;
4. Knowledge of Psychology: concepts of human nature.

Deming explained, "One need not be eminent in any part nor all four parts in order to understand it and apply it. 

An example of an organization that found Deming's System of Profound Knowledge to be highly effective was the North Shore-Long Island Jewish Health System.  By following the parts of The System of Knowledge and completing a true transformation, this health care system was able to become a high-performing learning organization.  What they found through their transformation was that, traditional top down leadership, which encompasses: directing, controlling, change initiating, being project oriented,  decisions being made by one or a few individuals, and a "turf" and "silos" mentality, was NOT producing results for their organization.  By implementing an ideal top down leadership, which met employees half way, a transformation was achieved.  The results of following an ideal top down leadership model were: guiding, leading, communicating vision, developing strategy, being process focused, making decisions as a team, disciplined problem-solving, systematic organizational change, and empowered cross functional teams and individuals.

The biggest asset in an hospital are the employees and stakeholders.  When you make your transformation make sure all employees and stakeholders use The System of Profound Knowledge.  You will harvest knowledge from employees and stakeholders to drive the new system into to the next 10 years and beyond.