...is failure to use the abilities of people...”
In a recent LinkedIn post, the conversation centered on the Dr. W. Edwards Deming quote, “94% of problems in business are systems driven and only 6% are people driven.”. This is a quote we’ve used many times with our business coaching clients in our conversations around process improvement and systems development. Our latest reference is
linked here from our most recent podcasting guest appearance. In the LinkedIn discussion, it centered on whether the quote implied Dr. Deming’s teachings did not emphasize people development rather focusing on systems development.
In truth, the title quote of this article is also attributed to Dr. Deming. The quote ends with, “...to learn about their frustrations and about the contributions that they are eager to make.” Two months ago, we wrote of the importance of ensuring business systems stay relevant, primarily with the Dr. Deming “94%” quote referenced earlier in mind. In this conversation, we focus on the human element of systems thinking every leader must address for sustainable success. We will use the full title quote above as our outline.
The greatest waste... ~ One of our more popular business seminars centers on the concept of continuous improvement. In the seminar we address the seven most common operational wastes (Over-production, Excessive inventory, Unnecessary motion, Unnecessary transportation, Waiting, Over-processing, Defects) that are the focus of operational efficiency and effectiveness. Notice that none of the longtime waste references directly address the human element. It is only within the turn of the century that businesses started recognizing the 8th waste: Underutilizing human skills!
...is failure to use the abilities of people... ~ This idea is making headlines due to the ascendency of artificial intelligence (AI) platforms. Many leaders jumped headfirst into the hype-pool that AI would replace hundreds of human jobs. Most recently Salesforce admitted to making that very mistake as quality suffered in the transition. Even the CEOs of the AI platforms are walking back their audacious predictions of what their platforms would do versus the human workforce. Our response online to the Salesforce situation was merely two words, “Unintended consequences.”
...to learn about their frustrations and about the contributions that they are eager to make. ~ From our own business leadership experiences, we fully understand the importance of alignment of people and systems. It is clearly built into our Business Alignment Maturity Model™ (BAMM) by listing the Structure layer breakout in order of priority: People, Process, Technology. Based on our experience, any business leveraging these structural operating elements in any other order than they are listed above will struggle with sustainable success.
People are what makes business work, regardless of which stakeholder label leaders put on them (employees, associates, vendors, customers, clients, etc.). The implication of this conversation for leaders is the importance of leveraging their team’s intrinsic motivations. As we often say, “We lead people and manage processes.”. So, when people are solely managed and not led, it is a form of waste in underutilizing human skills. Of equal importance is leaders ensuring the systems supporting the people doing the work are also aligned to prevent the underutilization of human skills. Closing out with one more Dr. Deming quote, “ Put a good person in a bad system and the bad system wins, no contest.”
How are your people and systems aligned for sustainable success? If you’re not sure, we can help.
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