Our Unemployment Debacle and the Deming Chain Reaction

W. Edwards Deming’s Chain Reaction is simple:

  1. Improve Quality
  2. Costs Decrease (by removal of waste and sub-optimization)
  3. Productivity Improves
  4. Capture the Market with Better Quality and Lower Price
  5. Stay in Business
  6. Provide Jobs and More Jobs

I have seen the “Chain Reaction” changed to “return on investment” from “provide jobs and more jobs.”  Rather self-serving to manipulate Deming’s thoughts.  The aim was to create jobs – a higher purpose.

Looking at the larger system called the US economy, there is great benefit to providing more jobs.  Less people in the welfare systems means less government spend and less government debt.  Something that has had our attention for the last two weeks.  An expensive system is the welfare system when over 9% of people are unemployed.

Private organizations are hoarding cash and are helping create a deteriorating economy in a Catch 22 – an attempt to protect themselves only worsens their condition.  More people go on the unemployment line meaning less people to spend money on products and services and then these same unemployed have to go through a welfare system wrought with waste that adds to the budget deficit.

We need a reset on corporate purpose.  A broader system is at stake than just our personal or corporate balance sheets.  Optimizing the American system will take a different approach.  The “me first” mentality has proven less than optimal.  Dr. Deming’s Chain Reaction is looking more brilliant everyday.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the 95 Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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