Decision Making

The New Role of Management
The Decisions Making – Jordi Cabre

This is an approach to management based upon the teachings of the late W. Edwards Deming. The goal is to improve enterprises and organizations by giving them a robust and scientific set of tools to change the way management makes decisions.

The New Role of Management
The Decisions Making

The current situation
Management’s job is one of the most difficult while at the same time having a very high responsibility as their decisions affect all of society.

Often management is faced with challenges that are the result of a culture, teachings and paradigms, which influence the effectiveness of their decisions. The future of organizations depends on their degree of success, but to succeed and do the right things, management must have the right “knowledge”. Hard work and best efforts will not by themselves help.

The current crisis is a clear indication that something is amiss. Apart from both financial and Industrial causes, decisions made by management boards seem to lack a proper scientific and technical base. The high responsibility that lies on them requires more robust decisions tools.

Today it is generally accepted that the way enterprises are managed needs a new approach. In a 2010 study by IBM “Capitalizing on Complexity”, which interviewed 1,541 senior executives, IBM concluded that as the complexity of the different forms of interaction, both within and outside organizations increases, managers must acquire new skills and knowledge.

W. Edwards Deming, arguably the most influential thinker on management, already pointed out these and other findings in his book “Out of the Crisis.” Furthermore, errors and problems of management continue to be the same as listed in his work. Deming’s accuracy was uncanny as he is the only thinker of management, as far as I know, who anticipated the current crisis based on “… the failure of top management in its mission to manage1.”

Some of the errors and diseases of management pointed out by Dr. Deming are: emphasis on short-term profits, cost reduction policies, management by use only of visible economic figures, evaluation of performance, merit rating, etc.

The purpose of any organization is to get results; they represent its aim and the common purpose of its members. In a business organization2 that purpose is, important, but so is its survival.

Get the full article Decision Making plus
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PDCA…PDSA, Is it as simple as a “C” or an “S”
Deming Quotes with sources