Welcome to Mind Tools' Video Learning Series. Does your organization struggle to retain key staff? Or, leap from one new initiative to another without letting them properly play out? Maybe there's too much focus on quick wins rather than long-term success? If so, your organization may be suffering from one or more of Deming's Five Diseases of Management. These are five common problems that can derail your business. Let's take a look at each "disease," and explore ways to avoid them.
Disease 1: No Consistent Purpose. Deming's first disease is all about inconsistency. If your company introduces lots of new objectives or initiatives before allowing existing ones to come to fruition, it can result in wasted time and energy. It can frustrate and demotivate people, and contribute to high staff turnover. To avoid this, revisit your company's mission and vision statement, as well as its values. Align your people's goals to these and demonstrate how their work contributes to the bigger picture.
Disease 2: Focusing on Short-Term Profits. It's good to celebrate wins "in the moment." But Deming warns against chasing fast profits, as this can harm the future health of your organization. Keep your view on the long term. Think about why you want to launch that new initiative. Is it for a quick buck? Or to nurture innovation and gain an edge over your competition in the years to come?
Disease 3: Managing by Fear. Shortsightedness can also affect performance appraisals. Deming warns that this can lead to "managing by fear." To avoid this, give people regular, constructive feedback. Highlight what they do well and areas for development. Set up coaching or mentoring programs to share knowledge, build trust, and develop skills. And score performance fairly. If you genuinely feel everyone deserves a 10 out of 10 for effort, then so be it! Celebrate their successes.
Disease 4: High Staff Turnover. Organizations that have a high staff turnover will never reach their full potential. After all, it takes time for managers to gain a deep understanding of the business, develop customer relationships, and build expertise. But they can't do this if people are constantly coming and going. If people are leaving, find out why. Ask your team what is and isn't working. And conduct exit interviews to uncover – and address – the root causes of dissatisfaction.
Disease 5: Focusing on "Visible" Metrics Only. Finally, consider the key performance metrics your organization pays most attention to. Profit is clearly important. But if its only focus is what's on the balance sheet, managers may begin to prioritize cost over value, which can stunt growth in the long term. Consider other important metrics, too – for example, innovation, team productivity, customer satisfaction, or employee engagement levels – to gain a wider perspective.
To learn more about Deming's Five Diseases of Management, see the article that accompanies this video. © 2022 Mind Tools by Emerald Works Ltd.