The System of Profound Knowledge provides a lens. It provides a new map of theory by which to understand and optimize that we work in, and thus to make a contribution to the whole country.
A system must have an aim. Without an aim, there is no system.
Defects are not free. Somebody makes them, and gets paid for making them.
The merit rating nourishes short-term performance, annihilates long-term planning, builds fear, demolishes teamwork, [and] nourishes rivalry and politics. It leaves people bitter, crushed, bruised, battered, desolate, despondent, dejected, feeling inferior, some even depressed, unfit for work for weeks after receipt of rating, unable to comprehend why they are inferior. It is unfair, as it ascribes to the people in a group differences that may be caused totally by the system that they work in.
I should estimate that in my experience most troubles and most possibilities for improvement add up to the proportions something like this:
94% belongs to the system (responsibility of management)
The greatest waste in America is failure to use the abilities of people.
American management thinks that they can just copy from Japan—but they don’t know what to copy!
the system that people work in and the interaction with people may account for 90 or 95 percent of performance.
Best efforts are essential. Unfortunately, best efforts, people charging this way and that way without guidance of principles, can do a lot of damage.
The idea of a merit rating is alluring. The sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good.
The effect is exactly the opposite of what the words promise. Everyone propels himself forward, or tries to, for his own good, on his own life preserver. The organization is the loser.
The merit rating rewards people that conform to the system. It does not reward attempts to improve the system. Don’t rock the boat.