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.

Epistemology
Despite 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 workshop
For 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, India
Download:
https://docs.google.com/file/d/0B01S
7vBog6jINnlmSjRQM05aOGM/edit?
pli=1
Jayaraman Rajah Iyer
jayar.ibcm[a]gmail.com
+919869972349
Sustainable efficiency
ensures Profits
Sustainable value system
ensures 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-
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Rationale for adopting CREAM Report - Deming Way

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