Rationale for adopting CREAM Report - Deming Way

IBCM© Research 2014

Rationale for adopting CREAM™ Report - Deming way

An IBCM© Research Presentation


CREAM™ Report


Deming

Deming1 is best known in the United States for his 14 Points (Out of Crisis, by Dr. W. Edwards Deming, Preface) and his system of thought he called the System of Profound Knowledge, consisting of four components, or "lenses" through which to view the world simultaneously:

An appreciation of a system,

understanding of variation,

psychology

and Epistemology, or a theory of knowledge.


EpistemologyDespite being honoured in Japan in 1951 with the establishment of the Deming Prize he was only just beginning to win widespread recognition in the U.S. at the time of his death in 1993.

The first half of 20th century saw stalwarts such as Andrew Carnegie, Amadeo Peter Giannini, Thomas Watson Jr and many more contributing to US growth of value system. In the second half great valued companies were overshadowed by persons who shifted their base from Las Vagas to Wall Street. No wonder Deming was not listened to.


Amadeo Peter Giannini

Men of stature did live among us and one was Amadeo Peter Giannini, the man who turned Bank of Italy to Bank of America. "When Giannini died

at age 79, his estate was worth less than $500,000. It was purely by choice. He could have

been a billionaire but disdained great wealth, believing it would make him lose touch with the

people he wanted to serve. For years he accepted virtually no pay, and upon being granted a

surprise $1.5 million bonus one year promptly gave it all to the University of California. "Money itch is a bad thing," he once said. "I never had

that trouble."2


Banking and NPAs

With CREAM™ Report

Banking eliminates NPA altogether

measuring the external risk appetite,

spreading the internal risk culture


Corporate and CDRs


Corporate avoids reaching to a CDR stage

Accelerating Corporate Energy in Sustainable

State [ACCESS]


Corporate Pension fund assets in OECD countries hit a record USD 20.1 trillion but return on investment fell

below zero,with an average negative return of -1.7% [US -3.00%]3


Fund Managers select the cream

reversing the negative trend


Value System

Andrew Carnegie for Industry, Amadeo Peter Gianini for Banking and Thomas Watson Jr. for Services ushered in the US corporate value system.


identify what is crucial, bring the abstractions into

reality, acknowledge value where value is due,

and deconstruct what is valueless.


Product Quality ~ Management Quality

Deming award winners are a class by themselves, nurturing quality and building industry over several years, the backbone of global economy.

Product Quality does not necessarily guarantee Management Quality, as Joseph Murphy disputes OECD's conclusion that large multinational companies generally have adequate internal compliance controls; adding: One need only look at the record at Siemens (whose code of conduct was described as the ―read, laughed and filed code), or the long, legalistic (and ineffective) code that existed at Enron to see the great danger in such sweeping conclusions.4


CREAM™ Report viewed by 'lenses' of Deming 14 Principles

CREAM™ Report is based on study of Intangible, unique in its structure, well defined and applied measuring metaphysical concepts for corporate management.

Deming 14 principles are used as 'lenses' to view CREAM™ Report.


Principle 1: Constancy of purpose

Deming: Principle 1: Create constancy of purpose toward improvement of product and service, with the aim to become competitive, to stay in business and to provide jobs.

CREAM™Report enables Constancy of purpose. CSR is divided into CER

+ CFR, Ethical and Fiscal Responsibility, in three issue areas: 1. Sustainability of Value System, 2.

Sustainability of Efficiency and 3. Sustainability of Profits.


Principle 2: Adopt the new Philosophy

Deming: Principle 2: Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

CREAM™Report aligns Fiscal Responsibility with Ethical Responsibility in a framework of Corporate Atomic Structure.

CREAM™Report exhorts companies to adopt Ethical Responsibility as the new philosophy, crucial for accelerating economic growth.


Principle 3: Self-Governance

Deming: Principle 3: Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place.

CREAM™Report defines a product as a tangible object the end result of a creative process - IPR, mandatory as well as non-mandatory policies, code of conduct, business principles etc. besides a manufactured product, covering the entire corporate spectrum.

open ended structured process blocks are spread throughout, owned by a team of 5 sets of people, yoked together but act independently, with delegated authority, establishing self-governance.


Principle 4: Code of Business Principle

Deming: Principle 4: End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust.

CREAM™Report measures conflict of interest, differentiates conflict of personal interest, conflict of conscience, risk appetite, risk culture, insider trading, code of business principle etc.


Principle 5: Costs monitored

Deming: Principle 5: Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

CREAM™ Report knocks down the entire structure to as many identical manageable blocks of operating structure under 1. creative process and 2. action process, former defining quality and latter sticking to its relative unique Quality, in infinite succession of finite purposes.

Corporate strategy of cutting costs is enabled by big data being compressed within the corporate atomic structure, spread throughout in each process block, at the root level.


Principle 6: Training

Deming: Principle 6: Institute training on the job.

CREAM™ Report the 3-day workshop on Sustainability of profits is designed as a training on preparation of CREAM™ Report for subsequent DIY CREAM™ Report.

Each process block owner, the same 5 sets of people throughout, understands the implication of binary value of Action and Inaction applied to each.


Principle 7: Leadership

Deming: Principle 7: Institute leadership. The aim of supervision should be to help people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

CREAM™ Report The case study adopted for the 3-day workshop identifies the managerial capability, wanting in every area of corporate strategies from innovation to marketing, by the three issue areas - Sustainability of - value system - efficiency - profits, with an Index of Inactivity. Leadership is measured in each area for optimising performance by self-governance.


Principle 8: Corporate fears

Deming: Principle 8: Drive out fear, so that everyone may work effectively for the company.

CREAM™ Report 3-day workshop measures corporate Intellectual Value Capital and Emotional Value Capital, independently by each process block to arrive at the Intangible Value capital of a company.

The only energy resource of a company, the pulsating energy, is measured. Encouraged to collide with the non-pulsating ones the study shows how to optimise the pure energy. Fear of anything disappears, replaced by energy force that each contributes.

Corporate fears are unfounded.


Principle 9: Restructure Organisation

Deming: Principle 9: Break down barriers between departments. People in research, design, sales, and production must work as a team, in order to foresee problems of production and usage that may be encountered with the product or service.

CREAM™ Report: Each goal is managed by 5 KPIs represented by 5 categories of people, common throughout each process block, fusions the corporate energy force to - a constancy of purpose. Departments and products disappear replaced and identified by non-pulsating energy.


Principle 10: substitute with leadership

Deming: Principle 10: Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

Eliminate work standards (quotas) on the factory floor. Substitute with leadership.

Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership.


Principle 10: substitute with leadership

CREAM™ Report analysis by corporate atomic structure endorses what Deming says under principle 10 - as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

CREAM™ Report by Subject - Object Distinction of Qualitative and Quantitative elements of management buttonholes on 3 Ps - Policies, Practices and People - and measures the extent of performance by each process block. Index of Inactivity is derived to perform at optimum level by the 5-sets of KPI owners.

Each single KPI is owned by individuals who are yoked together as a team but perform independently, with a healthy competition between them.


Principle 11: Removing the barriers

Deming: Principle 11: Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.

CREAM™ Report recognises Ethical Responsibility that equates the highest and the lowest paid. Diversity in working environment are the gems strung together that may vary in colour and species, but the supporting string of ethical responsibility is the same all through.

Corporate that realises this dictum, a huge really huge energy force is awaiting them for tapping.


Principle 12: Reward Policy

Deming: Principle 12: Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objectives

CREAM™ Report analyses Reward Policy linking performance to the three issue areas: Sustainability of - value system - efficiency - profits. Besides each goal set is a result of a team work with each input resource acting independently.

To quote5: “Ask senior HR practitioners and employees about the least popular workplace practices, and the bell curve-based performance appraisal system will rank right up there.” n-dimensional problems are converted to n-problems of 1 dimension by CREAM™ Report


Principle 13: self-improvement

Deming: Principle 13: Institute a vigorous program of education and self-improvement.

CREAM™ Report endorses Deming's System of Profound Knowledge, that program of education by IBCM© Research, would benefit individual employees, immensely. Case study reveals the distinct possibility of whistleblower protection superfluous, once the CREAM™ Report is put through.


Principle 14:

Deming: Principle 14: Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

CREAM™ Report's ratings by Return on Intangible, the pole-shift theory of management, with pulsating energy of each individual as the denominator and action or inaction by each the numerator, transformation is assured.


3-day workshopFor details of:3-day Workshop on CREAM™ Report Measuring Sustainability of Profits: ACCESS - Accelerating Corporate Energy towards Sustainable State July 11,12,13 - 2014 At Kodaikanal, Tamil Nadu, IndiaDownload: https://docs.google.com/file/d/0B01S7vBog6jINnlmSjRQM05aOGM/edit?pli=1

Jayaraman Rajah Iyerjayar.ibcm[a]gmail.com+919869972349

Sustainable efficiencyensures Profits

Sustainable value systemensures sustainable profits


Acknowledgement

1. http://en.wikipedia.org/wiki/W._Edwards_Deming#cite_note-5

2. Amadeo Peter Giannini, Consumer banking owes a big debt to a produce seller who refused to say no By DANIEL KADLEC, http://www.time.com/time/time100/builder/profile/giannini.html, The TIME 100

3. Source OECD 21 Oct. 2012

4. Mr. Joseph E. Murphy (Corporate Compliance and Ethics Professional): Review of the OECD antibribery instruments: compilation of responses to consultation paper: 31 March 2008

5. Why companies hang on to the bell curve - http://content.timesjobs.com/why-companies-hang-on-to-the-bell-curve/?fromsite=toi&utm_source=toi&utm_medium=referral&utm_campaign=toi-tj-whitelabel

Rationale for adopting CREAM Report - Deming Way

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