Question

Describe Deming’s Theory of Profound Knowledge. How do the four elements of his theory relate to improving performance?

Answer 1

Deming’s Theory of Profound Knowledge is a management philosophy grounded in systems theory. It is based on the principle that each organization is composed of a system of interrelated processes and people that make up the system’s components. The four elements of his theory are:

• Appreciation of a System - A business is a system in which any changes to one part will affect the other parts. By learning about systems we can better avoid these unintended consequences and optimize the whole system.
• Knowledge of Variation - Variation can be reduced by the use of quality checks at each step or for each process. To make good use of quality, managers must understand the variations in the business.
• Theory of Knowledge - Understanding the difference between theory and experience prevents shallow change. A Theory requires prediction and explanation. While we can never prove that a theory is right, there must exist the possibility of proving it wrong by testing its predictions.
• Understanding of Psychology - To understand the interaction between work systems and people, leaders must seek to answer questions such as: How do people learn? How do people relate to change? What motivates people?

If the managers possess these elements and are able to use them wisely to define, formulate, and run processes, the business performance will improve continuously.