TA B L E 1 . 2
Deming’s Seven Deadly Diseases of Management
1. Lack of constancy of purpose
2. Emphasis on short-term profits
3. Evaluation of performance, merit rating, and annual reviews of performance
4. Mobility of top management
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive legal damage awards
to change in the process variables. Then actions to improve the process can be designed
and implemented. Statistical methods, such as designed experiments and control charts,
can contribute to these activities.
Deming frequently wrote and spoke about the seven deadly diseases of management,
listed in Table 1.2. He believed that each disease was a barrier to the effective implementation
of his philosophy. The first, lack of constancy of purpose, relates to the first of Deming’s
14 points. Continuous improvement of products, processes, and services gives assurance to
all stakeholders in the enterprise (employees, executives, investors, suppliers) that dividends
and increases in the value of the business will continue to grow.
The second disease, too much emphasis on short-term profits, might make the
“numbers” look good, but if this is achieved by reducing research and development investment,
by eliminating employees’ training, and by not deploying quality improvement activities,
then irreparable long-term damage to the business is the ultimate result. Concerning the
third disease, Deming believed that performance evaluation encouraged short-term performance,
rivalries and fear, and discouraged effective teamwork. Performance reviews can
leave employees bitter and discouraged, and they may feel unfairly treated, especially if they
are working in an organization where their performance is impacted by system forces that are
flawed and out of their control.
The fourth disease, management mobility, refers to the widespread practice of jobhopping;
that is, a manger spending very little time in the business function for which he or
she is responsible. This often results in key decisions being made by someone who really
doesn’t understand the business. Managers often spend more time thinking about their next
career move than about their current job and how to do it better. Frequent reorganizing and
shifting management responsibilities is a barrier to constancy of purpose and often is a waste
of resources that should be devoted to improving products and services. Bringing in a new
chief executive officer to improve quarterly profits often leads to a business strategy that
leaves a path of destruction throughout the business.
The fifth disease, management by visible figures alone (such as the number of
defects, customer complaints, and quarterly profits) suggests that the really important factors
that determine long-term organizational success are unknown and unknowable. As
some evidence of this, of the 100 largest companies in 1900, only 16 still exist today, and
of the 25 largest companies in 1900, only two are still among the top 25. Obviously, some
visible figures are important; for example, suppliers and employees must be paid on time
and the bank accounts must be managed. However, if visible figures alone were key determinates
of success, it’s likely that many more of the companies of 1900 still would be in
business.
Deming’s cautions about excessive medical expenses—his sixth deadly disease—are
certainly prophetic: Health care costs may be the most important issue facing many sectors
of business in the United States toady. For example, the medical costs for current and