Blog by Dr. Ryan Neinstein
Profound Knowledge: How A Statistics Geek Changed The World
I started to recognize a common trend in many of the business books I’ve been reading recently – many would refer to W. Edwards Deming (“Ed” to his friends) and his systems of work.
This was new to me, so what did I do? I did a deep dive. When I think of Dr. Deming I think, “Einstein meets Forrest Gump”.
He has been referred to as the prophet of quality and was a real imaginative out of the box thinker when it came to systems of work. This perspective on the world coupled with his statistical knowledge helped change the future of Japan and America.
He had an uncanny ability to have epiphanies that predicted organizational success or failure.
His life’s path helped him create the universal system of Profound Knowledge. This philosophy is summarized in 4 pillars.
4 Pillars of Profound Knowledge
1. Appreciation for a System
Understanding that every system is a network of interdependent components working towards a common aim and that actions in one part of the system affect other parts.
2. Knowledge About Variation
Recognizing that variation is inherent in all processes and understanding the sources of variation, both common (natural) and special (assignable).
3. Theory of Knowledge
Recognizing that management in any form requires prediction, and that prediction must be based on some theory, and that the theory must be tested and refined.
4. Psychology
Understanding human behavior and motivations, including how people are influenced by management policies, the desire for pride in work, resistance to change, and other psychological factors.
The Impact of Dr. Deming’s Systems
Dr. Deming’s systems had 3 significant changes to human history:
- In 1942 when the US declared war against Japan, Germany, and Italy it was quickly realized that the American war effort was at a significant disadvantage to the overwhelming success both Japan and Germany had in manufacturing. Deming who was at the census bureau was brought in. The American manufacturing concept of command and control where the senior executives would make commands and the mid level executives would control the execution would not work because all of the mid level executives were send to the theatre of war. Furthermore the work force was largely going to be replaces by women, children, and the elderly. With time and materials at a premium Deming went to work. It was challenging but Deming did convince executives to get behind quality control statistics in manufacturing and start leading shoulder to shoulder with the front line workers. This is how we outperformed the axis powers
- The Japanese economic miracle- The recovery after World War 2. After World War 2 General MacArthur was sent to Japan to help rebuild after the mass destruction that occurred. It was bad, I mean really bad. You could not get food, you could not get clean water, and you could not even drive a car down any road. The General’s frustration boiled over when the phone lines went down. He asked for help. America sent a soft spoken professor named Dr. Deming. He was largely ignored in America after the war but the Japanese took his evolving philosophies and ran with it. The Japanese took all of his concepts to create “Kaizen”. The core concept underpinning modern lean and agile business practices.The Japanese word kaizen means “improvement.” That’s the most basic definition of kaizen.As a business concept, the Japanese term kaizen refers to improvements that are incremental and ongoing. In the kaizen management system, everyone at a company is involved. Regardless of position. It takes advantage of the brainpower and intrinsic psychological motivations of team members. From frontline workers up to the CEO. The country’s GDP grew year-on-year at a great pace in the immediate postwar decades, and so did the quality of exports. By the 1970s the Japanese economy was really taking off. And by the 1980s Japan was a preeminent global economic power with the world’s second largest GDP
- His system of knowledge in Manufacturing has extended to today and can be found in the principal of DevOps in IT. Better culture and communication between teams could and would create better results.
How does all of this help Neinstein Plastic Surgery (its team members and its patients)?
Well, look at this story:
When he was speaking with the workers on the line at Toyota he asked them to not to think they are putting a window on or installing a break system but to think about the family that will be in the car. Think about how this car will have to safely deliver the family where they need to go to live their lives and how what they do on the line will impact each family member
At Neinstein Plastic Surgery we try and think wider and deeper about the impact of an operation. The operation is not just on a person but on a mother, a sister, a wife and that we are all dramatically influencing the family. This adds more intensity and passion to each and every operation
In another example, Deming once shared that an American CEO said, “we don’t make cars we make money”, while a Japanese CEO at Toyota said, “we don’t make cars we make great people that make great cars.” I feel the same way. Through work we don’t just have the honor and privilege of making meaningful impact on patients and their families lives but through work we make meaningful impact on our own lives