Out of the Crisis.Org

[Louis Altazan]

Dr. W. Edwards Deming’s Fourteen points

In point Seven: Adopt and institute leadership what a leader might do to improve the organization was touched on. I have seen many businesses where it is common to have internal competition, people being rated and compared, management by numbers and a great deal of fear. To me this is not management or leadership. Leading people does not require these techniques. With leadership the aim is clearly conveyed, obstacles removed and workers are allowed to enjoy a job well done.

Point Eight: Drive out fear.

I believe fear serves several purposes. In some instances it can be helpful. A certain amount of fear of the unknown can serve to protect a person from danger. There is also illogical fear, which has little basis in fact. It is toward this type of fear I feel point eight is directed.

Illogical fear [hereafter, fear] may have many faces but one primary result in business, loss. Looking around the trade, I see fear in many places. As prevalent as I believe it is, I have rarely heard it discussed.

I think managers are often afraid to trust their workers to do their best. They appear afraid to share company information with workers. For instance how much profit the company makes, the true aim and future plans. I also think workers, often with good reason, are afraid to trust their management.

One hotly contested topic is incentive pay. I believe this system is largely associated with fear. Proponents state the system allows people to earn more money and this drives them to produce more. The other side of the coin is, unless the worker meets the established conditions, the employer is not obligated to pay the incentive. To this extent an incentive is simply a conditional promise.

My thought is people are capable of producing a certain amount under ideal conditions. I would prefer to pay them the top amount they might earn, without regard to output. Such a system cannot exist in an environment of fear. The manager must trust employees do their best. More to the point, it places responsibility to make the conditions for production better where it belongs, with management.

I think the reason this may be unpopular with many managers is fear. They may fear people will not produce unless there is a penalty [lack of pay.] I also believe there is fear, management may not be able to inspire people to do their best without repercussion [loss of the incentive.]

The fact is a person can produce a given amount in a given time. The amount can be increased by changing the process that produces the service [increasing efficiency.] It cannot be increased by offering a prize nor a threat. What can happen is the figures can be faked, shortcuts taken, risk increased and so on in order to meet the goal or avoid the penalty. None of these are in keeping with sound management principle.

Alternatives have not often been considered. This unknown increases fear. Many managers experience poor results with cost, relative to production. Logic dictates change should be sought. Perhaps fear prevents a change?

Other forms of fear might be, posting an artificially low rate per hour/unit and charging more hours/units than spent. The price arrived at may be the same, but it may call the shop’s integrity into question. "Why am I being billed four hours when you only spent three?" I believe it is fear that keeps shops from simply facing clients with a more representative rate?

Promoting a rate lower than necessary to produce needed profit and inflating part prices also suggest fear, in my opinion. Again the final price may be the same, but clients can be loss forever, when the same parts are seen elsewhere for considerably less?

Other suggestions of fear, seem to me, "The shop down the street, everyone else, the dealer, etc., only charges . . ."

In my experience fear of new ideas and concepts is also very widespread. I feel those with the greatest fear may try to attack and discredit change. Perhaps they hope others may not follow suite and they may be spared having to face the change? Fear of change, has served to hold many people back, for a long time, in my opinion.

I have found the best cure for fear is facing it head on. From that I fear most, I feel I stand to learn the most, if nothing else, about my fear. Being guided by firm, ethical and long-term principles is key. Such practice can make current situations, no matter how threatening, appear as what they are, temporary.

Learning and practicing management methods such as Plan, Do, Study, Act, has also been very beneficial to me. I can try new things with much less risk [fear.] Playing "what if," is another powerful means of preparing for the unexpected and has greatly reduced my fear of the future. I may simply pick a scenario and think it through. What if . . . happened?

A major step forward for me was realizing, I am wrong is not failure. Instead it is just the next step toward improvement or becoming more correct.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA