Reviving Deming’s Wisdom: Innovating with His 14 Points in the 21st Century
By revisiting Deming’s timeless wisdom, we can chart a path toward fostering sustainable innovation in the 21st-century business landscape.
When W. Edwards Deming published his book “Out of Crisis” in 1982, the business world, particularly the manufacturing environment, was undergoing a tectonic shift. For the first time since the early 19th century, the United States of America was facing global competition as Japanese and European auto manufacturers slowly gained market share. Deming had a front-row seat as Japan rebuilt its economy and manufacturing capacity. His observation of American and Japanese cultures gave him a unique perspective on the roadblocks American companies would face in this new competitive landscape. His 14 points, which have stood the test of time, aimed to simplify and explain how companies could reinvent themselves and keep pace with the swirling tides of change around them.
In today’s fast-paced, competitive business environment, companies face a similar challenge: the need to reinvent themselves as emerging technologies like artificial intelligence, cloud computing, and robotics call for a “new way forward.” Innovation has become the latest buzzword as a critical differentiator for organizational success. At first glance at Deming’s 14 points, one may fail to grasp how relevant his observations are to today’s technological landscape. But as anyone who has studied quality and innovation will tell you, the principles that foster sustainable innovation are deeply rooted in quality management.
In 2024, ASQ’s Innovation Division published the Innovation Body of Knowledge as a quick primer for quality professionals who want to understand what innovation is and how you can use quality tools to support innovation. It frames the essential elements of innovation as a knowledge domain, with or without technology.
This article examines how Deming’s 14 Points align with modern innovation practices described in the American Society for Quality’s (ASQ) Innovation Body of Knowledge (IBoK), which emphasizes Strategy, Structure, Process, Culture, and Leadership as the foundation for innovation. By revisiting Deming’s timeless wisdom, we can chart a path toward fostering sustainable innovation in the 21st-century business landscape.
Deming’s 14 Points and the Innovation Body of Knowledge
1. Create Constancy of Purpose (Innovation Strategy)
Deming’s first point, “Create constancy of purpose,” to sustain the business and stay competitive. This point directly ties to the strategy element in the IBoK, which emphasizes long-term thinking and the importance of maintaining a clear strategic focus. For an organization to remain competitive and innovate, it must prioritize long-term objectives over short-term gains. The constancy ensures that innovation efforts are aligned with broader organizational goals, resulting in a sustainable, competitive advantage. The IBoK describes innovation strategy differently and calls for “embedding innovation into the organization’s DNA.” As Deming points out, the IBoK discusses the importance of long-term planning and allocating resources to identify, shape, and target viable opportunities.
2. Adopt the New Philosophy (Innovation Strategy and Leadership)
Deming’s second element, ‘“Adopt the new philosophy,” maps to Strategy and Leadership in the IBoK. The new philosophy embodies a different way of thinking, a commitment to quality and continuous improvement, and focusing on long-term objectives. Deming calls on leadership to “awaken to the challenge” and “learn their responsibilities.” This philosophy is best tied to what the IBoK calls innovation leadership in the current innovation landscape. The leadership style embraces change, enables risk-taking, and fosters creativity. Both call on leadership to rise to the challenge of owning their role in setting standards that will drive value creation and operational excellence. It is not all about beating the competition. It is about creating a sustainable environment that ensures the firm’s innovation initiatives fully align with its strategic ends.
3. Cease Dependence on Inspection (Innovation Structure and Process)
Deming’s third point, “Cease dependence on inspection to achieve quality” emphasizes the importance of building quality into the product from the beginning, rather than relying on after-the-fact inspections. In the quality world, we tend to see this through the lens of lean six sigma or the concept of built-in-quality. But if we expand our scope to encompass processes' role in creating variation, we can better see how this point ties into modern innovation. In modern innovation, this approach aligns with the need for robust processes that ensure continuous quality improvement, allowing organizations to innovate without sacrificing product integrity.
In the IBoK, structure and process are considered foundational elements to successful innovation. There is a way to structure your innovation initiative and a process-oriented way of executing that leads to better outcomes.
4. End the Practice of Awarding Business on Price Tag Alone (Innovation Strategy and Process)
Deming’s fourth point, “End the practice of awarding business on price tag alone,” underscores the importance of a long-term, systems-oriented view when selecting suppliers and partners. This principle ties to both Strategy and Process in the IBoK, which emphasizes the need for strategic partnerships that foster innovation.
Organizations focusing solely on cost often compromise quality and innovation in the modern business world. By cultivating long-term relationships with suppliers and partners who share a commitment to innovation, organizations can create systems that support both continuous improvement and disruptive innovation.
5. Improve Constantly and Forever (Innovation Strategy and Process)
Deming’s fifth point, “Improve constantly and forever,” is closely aligned with Strategy and Process in the IBoK. Continuous improvement, or kaizen, is the foundation of Deming’s philosophy and modern innovation. In addition to incremental improvements, Deming also recognized the need for discontinuous improvements—what we today call breakthrough or disruptive innovation.
The IBoK emphasizes that companies must build innovation on a framework of continuous improvement. While the focus is different - “fail fast and learn quickly” - both have the same aim. Deming includes the “improvement of the improvement process” and the IBoK calls for continued expansion of strategies. Organizations that continuously refine their products, services, and processes create incremental and dramatic innovation conditions.
6. Institute Training (Innovation Culture and Strategy)
Deming’s sixth point – ‘Institute training’ – directly relates to Culture and Strategy in the IBoK. Employees have to learn new skills as innovation unfolds, adjust to new technologies, and generally continuously develop; a firm with a culture of education and skill development is one in which employees feel like they can make a meaningful contribution. Both recognize that the people are part of the system as much as the machinery and that strategy should articulate how the worker’s work contributes to the bigger picture.
7. Institute Leadership (Innovation Culture and Leadership)
Deming’s seventh point, “Institute leadership,” connects to Culture and Leadership in the IBoK. Deming clearly emphasized the critical role of leaders and management systems in helping companies compete in the marketplace. He called on inspirational leadership to support workers in reaching their full potential.
In the IBoK framework, leadership is also called out as a critical driver of innovation. Effective innovation leaders foster a culture where new ways of doing are embraced and encouraged. Both Deming and the IBoK speak to the supportive role that leaders play in cultivating the people and the environment.
8. Drive Out Fear (Innovation Culture)
Deming’s eighth point, “Drive out fear,” speaks directly to the Culture component of the IBoK. Fear stifles creativity, collaboration, and innovation. For organizations to innovate, they must create a culture where employees feel safe to share ideas, take risks, and challenge the status quo without fear of reprisal.
Innovation thrives in environments that encourage open communication, experimentation, and learning from failure. By driving out fear, organizations can unlock the full potential of their employees and foster a culture of innovation.
9. Break Down Barriers Between Departments (Innovation Structure and Strategy)
Deming’s ninth point, “Break down barriers between departments,” aligns with Structure and Strategy in the IBoK. Innovation often requires collaboration across multiple departments, functions, and disciplines. Silos hinder the free flow of ideas and limit the potential for breakthrough innovations.
Deming and the IBoK speak to the need for creating structures encouraging knowledge-sharing, teamwork, and collaboration across departments to drive innovation efforts.
10. Eliminate Slogans and Exhortations (Innovation Culture)
Deming’s tenth point, “Eliminate slogans and exhortations,” ties to Culture in the IBoK. Empty slogans that call for innovation without providing the means to achieve it can create frustration and disengagement. Instead of relying on slogans, organizations must build systems and processes that support real, actionable innovation.
In the IBoK, culture is about creating an environment where innovation is a natural outcome of how people work. Organizations that focus on building a supportive culture—rather than relying on slogans—can create the conditions for sustained innovation.
11. Eliminate Numerical Quotas (Innovation Leadership)
Deming’s eleventh point, “Eliminate numerical quotas,” connects with Leadership in the IBoK. Quotas and management by objectives can force employees into a short-term, transactional mindset, which can hinder innovation. Instead, leaders should create a work environment that encourages creativity, collaboration, and long-term thinking.
In the IBoK, leadership fosters an environment where innovation can thrive. By eliminating numerical quotas, leaders can focus on building a culture that encourages experimentation and long-term success.
12. Remove Barriers to Pride in Workmanship (Innovation Culture and Structure)
Deming’s twelfth point, “Remove barriers to pride in workmanship,” ties to both Culture and Structure in the IBoK. Employees take pride in their work when they have the tools, resources, and autonomy to contribute to innovation. Organizational structures that limit creativity or micromanage employees can stifle innovation and reduce morale.
The IBoK also emphasizes the importance of creating a structure that supports innovation. By removing barriers to pride in workmanship, organizations can foster a culture where employees feel empowered to contribute to innovation efforts.
13. Institute a Vigorous Program of Education and Self-Improvement (Innovation Culture)
Deming’s thirteenth point, “Institute a vigorous program of education and self-improvement,” aligns with Culture in the IBoK. Continuous learning is critical for fostering innovation. Organizations must invest in their employees' ongoing education and development as technologies and market conditions evolve.
While the IBoK does not specifically address worker education and self-improvement, it does establish the importance of organizational learning as a basis for continuous innovation. Thus learning is embedded as a principle within the organization.
14. Put Everyone to Work (Innovation Culture)
Deming’s fourteenth point, “Put everyone to work,” speaks directly to Culture in the IBoK. Innovation is not the responsibility of a single department or team—it is an organizational effort that requires everyone's engagement and contribution. Organizations can harness their workforce’s collective creativity and expertise by involving all employees in the innovation process.
Through this brief overview, I hope you can see that Deming’s 14 points are as relevant now as they were in 1982. We must take what he taught us and see it with new eyes.
Rebecca Mott is principal owner of ReThought LLC with more than 30 years of experience in the utility industry. She has a passion to help leaders leverage the expertise of their knowledge workers by equipping them to see their world differently. Her experience leading projects, managing teams, and launching new initiatives has given her unique insights into how to help companies reimagine their workplace. She currently serves as Chair of the ASQ Innovation Division for 2024/2025. You can contact her on LinkedIn at https://www.linkedin.com/in/rebeccahmott/
