Monday, August 04, 2008

Best-Ever Entrepreneurship Quotes, Week 96

Here’s your weekly motivational message, personally selected to get your week off to an inspired start.

This week: a formula for success.

Quality = Results of Work Efforts (divided by)
white typewh Total Costs

W. Edwards Deming, 1900-1993. Consultant, Statistician and founder of the “quality” movement

Dr. Deming believed that when people and organizations focus primarily on quality, defined by the above ratio, quality tends to increase and costs fall over time.

Alternatively, when people and organizations focus primarily on costs (standard human behavior), costs tend to rise and quality declines.

Why? Deming blames the failure to monitor and minimize waste, ignoring amount of rework occurring, taking staff for granted, not rapidly resolving disputes, failing to notice lack of product improvement... Plus, over time, the loss of customer loyalty.

What's your choice?

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