Doctor W. Edwards Deming is undisputed authority in field of ensuring quality and increasing productivity. In his publications he dedicates a lot of place to common all over the world style of management and necessity of it?s transformation. Based on specific examples he proves, that measures of effectiveness based on accounting index leads employees to achieve imposed selling, margining and costs goals often by manipulations of process and data. Short-term management, caring about only the look of numbers in the end of quarter, management by goals or valuation of employees – those all are practices, which has to end as soon as possible. Transformation of current management style is necessary. It is a long-lasting process and should begin on managemnet level. Leader of transformation and involved managers needs to learn the psychology of the unit, group, system and changes. It?s also necessary to understand the theory of variation, including appreciation of stabile system and understanding natural and special causes of variation.

Transformation, according to Deming, needs a glance from the outside, some perspective, which will allow to understand the organization. This perspective is called System of Profound Knowledge. Its bases include four elements: system appreciation, understanding variation, knowledge theory and psychology.

Particular segments of System of Profound Knowledge can not be separated from each other, because they are formed as inseparable whole. So, psychological knowledge is not complete without knowledge about variation. Person managing the group of people needs to understand that everybody is different and efficiency of every human being largely depend on system he works in. In other words: it depend on management.

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Expected Training Results

This training allows to understand System of Profound Knowledge and thereby new angle to look at business, associated events, numbers and interactions with people. Understanding the principle of System of Profound Knowledge forms base to business choices’ evaluation and allows to begin the road to transformation consistent with philosophy of continous improvement.

  • Highest Management
  • Medium Level Managers
  • Leaders

Training Plan

DAY 1-2

Need of transformation, consequences of currently applied management practices lecture
Introduction to System of Profound Knowledge: system appreciation, understanding variation, knowledge theory and psychology lecture + case study

Managing system as a whole:

  • What is the system?
  • Process Map as a basic tool to understand the system
  • Meaning of correlation of particular elements of the system
  • Communication and principles of cooperation between particular elements of the system as base for effective business management

Understanding variation:

  • Introduction to variation and theory of statistics. Common and special causes of variation
  • Quincunx: practical exercise which shows why the distinction between common and special cause variation is so important
lecture + practical exercise

Knowledge theory:

  • Managing is predicting
  • Using data requires predicting


  • Inside and outside sources of employees motivation
  • Excessive justification effect, consequences of abusing outside sources of motivation (over-motivation)
  • Deming?s experiment – process simulation performed by participants, illustrating various aspects of managing human resources:
    • goals vs. instructions (determination of goal is not enough, it?s necessary to understand what sort of task this is – who is responsible, what kind of help does employee need)
    • motivation vs. supervision, system of awards and punishments
    • employee evaluation vs. continous development (how to perform difficult process as employee evaluation is to ensure effectiveness and continuous development)
lecture + practical exercise
Workshop summary discussion