The W. Edwards Deming Institute has posted Dr. Deming’s 1984 video on the 5 deadly diseases of western management.
- Lack of constancy of purpose
- Emphasis on short term profits – “creative” accounting, focus on quarterly profits
- Annual Performance Appraisals – management by objective, management by fear
- Mobility of management – [see Toyota for a great example of a company that operates on different principles – where the leadership has been with Toyota for decades]
- Running a company on visible figures alone – many important factors are “unknown and unknowable.”
Personally I believe all 7 of those diseases are still prevalent and causing damage. I do think some progress has been made on longer term thinking but far too many organizations still are extremely short term focused. And I would add two new deadly diseases of management: excessive executive compensation and an outdated intellectual property system.