Managing Our Way to Economic Success

From Managing Our Way to Economic Success, Two Untapped Resources by William G. Hunter, my father. Written in 1986, but still plenty relevant. We have made some good progress, but there is much more to do: we have barely started adopting these ideas systemically.

there are two enormously valuable untapped resources in many companies: potential information and employee creativity. The two are connected. One of the best ways to generate potential information to turn it into kinetic information that can produce tangible results is to train all employees in some of the simple, effective ways to do this. Rely on their desire to do a good job, to contribute, to be recognized, to be a real part of the organization. They want to be treated like responsible human beings, not like unthinking automatons.

W. Edwards Deming has illustrated one of the troubles with U.S. industry in terms of making toast. He says, “Let’s play American industry. I’ll burn. You scrape.” Use of statistical tools, however, allows you to reduce waste, scrap, rework, and machine downtime. It costs just as much to make defective products as it does to make good products. Eliminate defects and other things that cause inefficiencies, and you reduce costs, increase quality, and raise productivity. Note that quality and productivity are not trade-offs. They increase together.

Potential information surrounds all industrial processes. Statistical techniques, many of which are simple yet powerful, are tools that employees can use to tap and exploit this potential information so that increasingly higher levels of productivity, quality, and innovation can be attained. Engaging the brains as well as the brawn of employees in this way improves morale and participation…and profits.

What is called for is constant, never-ending improvement of all processes in the organization. What management needs, too, is constant, never-ending improvement of ideas.

Related: William Hunter, articles and booksInvest in New Management Methods Not a Failing CompanyThe Importance of Management ImprovementStatistics for Experimenters

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