Quotes in business
It is not necessary to change. Survival is not mandatory.
Does the customer invent new product or service? The customer generates nothing. No customer asked for electric lights. There was gas and gas mantles, which gave good light. The first electric lights had carbon filaments. They were fragile and inefficient. No customer asked for photography. No customer asked for the telegraph, nor for a telephone. No customer asked for an automobile. We have horses: what could be better’? No customer asked for pneumatic tires. Tires are made of rubber. It is silly to think of riding on air. The first pneumatic tires in the United States were not good. The user had to carry with him rubber cement, plugs, and a pump, and know how to use them.
The aim proposed here for any organization is for everybody to gain - stockholders, employees, suppliers, customers, community, the environment - over the long term.
Deming’s First Theorem: “Nobody gives a hoot about profits.”
Deming’s Second Theorem: “We are being ruined by best efforts.”
You don't find customers for your products. You find products for your customers.
In the modern world of business, it is useless to be a creative original thinker unless you can also sell what you create. Management cannot be expected to recognize a good idea unless it is presented to them by a good salesman.
I'm not saying that advertising is going away. But the balance is shifting. If today the successful recipe is to put 70 percent of your energy into shouting about your service and 30 percent into making it great, over the next 20 years I think that's going to invert.
There are four prongs of quality and four ways to improve quality of product and service:
Innovation in product and service
Innovation in process
Improvement of existing product and service
Improvement of existing process
The common mistake is the supposition that quality is ensured by No. 4, improvement of process, that operations going off without blemish on the factory floor, in the bank, in the hotel will ensure quality. Good operations are essential, yet they do not ensure quality. Quality is made in the boardroom.
A bank that failed last week may have had excellent operations— speed at the tellers’ windows with few mistakes; few mistakes in bank statements; likewise in the calculation of interest and of penalties and loans. The cause of failure at the bank was bad management, not operations.
A company could put a top man at every position and be swallowed by a competitor with people only half as good, but who are working together.
Top management should publish a resolution that no one will lose his job for contribution to quality and productivity.