W. Edwards Deming - A Pioneer of Quality, Efficiency, and Continual Improvement

W. Edwards Deming, the Father of Quality Control

William Edwards Deming, the Father of Quality Control, died 31 years ago today. He didn’t expect to be remembered after he died, but his advancements in management practices have been studied and advanced continuously for many decades. His influence continues to be felt today with advancements in quality control for manufacturing, computer programming, project management, etc. 

Deming’s process of continual improvement developed into the PDSA Cycle (an acronym representing Plan-Do-Study-Act) which is commonly referred to as the Deming Cycle. This was developed from a concept from Walter Shewart, an early pioneer in applying the scientific method to business applications. Deming and his quality control and improvement methodologies were largely responsible for helping with the economic recovery of Japan following World War II, with many successful manufacturers using his research and guidance to improve their operations and products. His attempts to share his techniques in his home country were less well received in the United States where the focus was on satisfying international demand. With much of their global competition being forced to rebuild their own manufacturing capacity, the US focused on expanding capacity rather than improving quality or efficiency.

It wasn’t until the 1970s, after high quality imports from Japan and other countries that were forced to adopt his techniques to compete, that the US started to embrace Deming’s teachings. The Ford Motor Company benefited greatly from his assistance not only in improving the quality of their products (reflected by adopting “Quality Is Job 1” as a new slogan) but also their management and company culture. This resulted in Ford overtaking GM as the most profitable American auto manufacturer within 4 years of adopting Deming’s techniques.

Deming continued to expand and share his body of knowledge over a long career that lasted into his 90s, consulting with companies around the world and publishing multiple books that are still taught in universities. His concepts and innovations can be felt today in the Toyota Production System, Lean Manufacturing, Six Sigma, Total Quality Management, Agile Software Development, and many other business systems used around the world. The W. Edwards Deming Institute, established the same year he died, continues to share his theories and teachings to business managers of all levels as well as other students with educational events as well as partnerships and scholarships.

While Deming did not expect to be remembered, his life’s works continue to shape our world and help people today. Thank you, Dr. Deming!

- John Thrush

Where Did The Year Go? Finish The Year Strong By Managing Your Time More Effectively...

The end of the year is quickly approaching and, if you’re like most people, there are a number of things you need to finish before 2025. This can be a source of stress and frustration, complicating not only your work life, but also taking away from your personal life. So what can you do to solve that problem?

Here are several suggestions for creating a strategy to better manage your time and achieve your end of year business goals:

  • Write down the goals you want to achieve by the end of the year - We like to believe we can manage our goals and schedule in our head, but documenting things helps to clarify what it is we’d like to achieve and helps hold us accountable.

  • Break goals into smaller tasks - One of the reasons many people procrastinate on tasks is the perceived complexity; however, many of these goals can be broken down into steps that are more easily understood and completed. This can also make it easier to estimate the time to complete each step as well as the whole project. Writing down these tasks and making them mini-goals will increase the likelihood of getting them done.

  • Prioritize your goals - Because time is limited, you must consider what can be completed based on the complexity of tasks as well as deadlines. Consider deadlines based on legal or financial ramifications for being missed as well as those that may challenge professional relationships or reputations.

  • Schedule your goals and tasks - Blocking out time for these steps greatly increases the chances of things getting done. It also increases the ability to focus by removing some opportunities for distractions.

  • Delegate or ask for help - While you may want to complete many things based on pride, you may have to accept that finishing a task with someone else’s help is the real win. Consider outsourcing a task if it means achieving a goal.

  • Communicate - If you need help, reach out to people sooner rather than later so you can find out if they can help. If you’re at risk of missing a deadline or achieving a goal, especially if it has ramifications, let the relevant people or agencies know so you can make adjustments or negotiate a schedule. It’s far better to inform people before a deadline than after so they can make their own adjustments.

Hopefully this list gives some ideas or suggestions that help you move you closer to achieving your goals!

- John Thrush

Navigating the Differences: Legal Avoidance vs Illegal Evasion

Tax Evasion Is Theft!

Being profitable is a major goal for any business. Many people who’ve never run a business may not realize how challenging it can be to make a profit because, though they may see how much revenue can be generated, they rarely understand how much it costs to operate a business. And, while there are many legitimate costs in running a business, some business owners or managers sometimes attempt to count things as expenses when they aren’t allowed. The difference between an illegitimate and a legitimate business expense is important as it can cost more in penalties and fines later and possibly even lead to jail time if it’s serious enough. The difference between the two is tax avoidance and tax evasion, the former being legal and the latter being illegal.

Tax Avoidance utilizes the legal forms of deductions, credits, and other strategies within the framework of the law. This includes contributing to retirement accounts, investing in tax-advantaged accounts, accelerated depreciation, utilizing established tax credits, and other opportunities and incentives established by federal, state, or local governments.

Tax Evasion involves deliberately misrepresenting or concealing information to reduce tax liability. This could include underreporting income, inflating or misrepresenting deductions, or hiding money in offshore accounts. Sometimes this is done unintentionally such as deducting more than the legal limits for gifts. Other times it’s deliberate such as charging personal expenses to the company.

What often happens is that a mistake is made and the owner realizes it later and feels like it’s acceptable because they got away with it. This may then turn into a habit or even escalate. If that happens, the chances increase greatly that it will trigger an audit and they’ll get caught. If (or when) this happens, the benefits and feeling of getting away with it disappear very quickly with the aggravation and time as well as the money that it costs to correct the issues. Instead of getting caught, the smarter course of action is to recognize what happened and make adjustments to the accounting. This may involve filing amended tax returns or making other changes, but these are better than the alternative of getting caught breaking the law.

There are a great many ways to legally use tax avoidance to decrease your company’s tax burdens and to benefit both the individuals and the company itself. This is why it helps to work with experts to not only review your past actions, but to also create a strategic plan to reduce your taxable income while providing financial benefits for the business, employees, and owners. Brightleaf loves to help small business plan for the future and to help make corrections if mistakes were made in the past. Reach out to us to see how we can help your business!

Beginning Networking for Small Business

Networking Is Easy!

One of the things that many people don't think about when getting started in a small business is how important it is to start in-person networking. They may know about needing a website or using social media to promote the business, but going out and actually meeting other people face to face may be something they didn't think about doing. For some, especially for introverts, this can be intimidating or even anxiety inducing.

It really shouldn't be.

If you're just getting started with business networking as a business owner or employee, the first thing you need to do is just meet people and have conversations. That's all. Get to know them. Help them get to know you. It really is that simple.

Of course the reason people network for a business is because they want to sell their products or services. And yes, you're going to start selling through networking... but if you expect that you're going to go to a networking session or have a coffee and get sales immediately, you're going to get discouraged. That's not how it works.

The basic concept that anyone new to neworking needs to keep in mind is "Know, Like, Trust". The reason many people buy from a company and especially an individual is because they know the person, like them, and trust that they'll do right buy them. There is, of course, more to making a sale than just this; however, you don't need to worry about those when you're just getting started. More importantly, doing those things now may actually make things worse. Your goal is very simple... meet people. Introduce yourself, ask their names, and start a real conversation.

Yes, you're going to talk about their business and what they do, but one of the best things you can do is talk about things that aren't related to work. Where'd they grow up? What's their family like? What are their hobbies? What did they do last weekend? Where'd they get their shoes? Really find out who this person is that you're speaking to and get to know them and let them get to know you.

If you don't talk about business more than 10% of the time, it's fine. If they remember you as a person and not as something just trying to extract money from their pockets, you've done well. When they get to know you and get to like you, they'll eventually trust you to help them with a need they have and will gladly compensate you for doing so. But that's later. Right now, your goal is to get people to know and remember you as you get to know and remember them.

Now get out here and meet some people!