I recently listened to the April 2022 Deming Institute podcast, “In Their Own Words”, entitled and linked: Kevin Cahill’s Reflections on Dr. Deming and the Deming Institute (April 2022). Andrew Stotz hosted. Andrew Stotz is an awarded, successful financial analyst.
Mr. Stotz indicated how Deming’s work had impacted his thinking and career. Deming also provides a solid basis for all I do with health. His ideas about continual improvement of the process so the product takes care of itself and systems appreciation are at the basis of all I have done. Personal and planetary health are interconnected and as we continually improve the lifestyle process with an understanding of how it impacts everyone and everything – we can achieve the desirable aim of regenerative communities by living regenerative lifestyles. You will see Dr. Deming mentioned often in multiple posts on this blog and he has also been a basis for many of my peer reviewed published articles.
The part that caught my attention in the recent Deming institute podcast was when Andrew Stotz, despite being a financial analyst, said, “Finance adds no value” He went on to explian:
“Finance adds no value….Ultimately it’s the products and the service, and finance is a support function just as human resources… it’s when finance starts being the head of the business that you get into trouble…Never make the right finance decision over the right business decision.”Andrew Stotz
This may be a stretch, however, to me his statement that finances cannot provide value is similar to how I have adopted what I learned from Dr. Deming. As I have noted, Prevention Can’t Work and Problems are Irrelevant! if improvement is the goal. He even states, good finances are a by-product, and cannot be the aim, just as research has shown prevention is the by-product of good health, not its aim. Prevention and problem solving only stop bad things from happening but do not make things better than where we were before the problem occurred. We could not get healthy after COVID occurred, we had to create a better life first and the protection against COVID from good health was a beneficial by-product. Those without co-morbidities have done better.
Mr. Stotz comments about finances by explaining that money desires should not drive actions, because earning money is the necessary result or by-product. These ideas were outlined in this post, Money Is a Lagging Not a Leading Indicator which demonstrated that
Money must follow, it cannot lead.
Businesses, as Kevin Cahill explains, often want to just seem to be keeping up so they go with the new management fads or “the flavor of the month” rather than maintaining a constant aim. As he notes, this does not work out well, especially over the long term. This linked 4/24/2022 Close to Home comic humorously captures this idea about just doing something because it is a current idea.
Mr. Cahill then provides a great example of the outcomes from a focus on value or money when he contrasts Apple and Enron. One company was guided by financial statements while the other was guided by providing value. Apple, which he cites from Walter Isaacson’s book, Steve Jobs, says Apple had the aim or mission to create “insanely great products”. In contrast, the now defunct Enron’s mission was to make more money. The result: Apple is worth a trillion dollars and Enron went bankrupt.
In looking back, I realized I have cited Steve Jobs and things he has done almost as often as I have cited Dr. Deming. To me both provide great examples of how we can help generate comprehensive improvements by creating net-positive, pervasive, reciprocal, selfish, selfless, synergistic interactions so everyone and everything benefits.
I hope you listen to the Deming podcast and that it motivates you to study Deming’s methods. Deming was my inspiration and it has helped me a lot in my career. Please share what you learn and how you implement his ideas to benefit everyone and everything so “everybody wins” as Dr. Deming used to say!
Please share your thoughts and questions below.
Contact me: BeWellr@gmail.com