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The Following is the Nomination Form used to consider Peter for the Deming Medal. Nomination for the Deming Medal Question 1. Give evidence of the nominee’s understanding the new style of management as described by Dr. Deming. Peter Scholtes is best known for his work on use of teams in organizations and abolishment of performance appraisals (one of Deming’s deadly diseases). His graduate work in organizational development and adult learning and his experiences as a Catholic priest working with young people combined to help him provide a unique perspective to the application of Deming’s System of Profound Knowledge. As Dr. Deming noted: “The various segments of the system of profound knowledge proposed here can not be separated. They interact with each other. (1994, p. 93)1 Scholtes regularly integrated concepts of statistical theory (statistical thinking) into his lectures and consulting practice2. The evidence that Peter Scholtes understands Deming’s style of management takes several forms—1) his publications, 2) work with and comments from Dr. Deming, 3) professional seminars and presentations, and 4) awards and recognitions. Some illustrations of each are provided below. Scholtes’ professional career touched people on six continents (all but Antarctica), so the examples below are surely incomplete. Publications (Note: The following also constitute evidence of contribution to Dr. Deming’s Philosophy-question 2) The Team Handbook, originally published in 1988 and now in its 3rd edition, has sold more than 900,000 copies and has been translated into multiple languages (including Spanish, Portuguese, and French); there is also a specialized version: The Team Handbook for Educators. In the Introduction (1st edition), Scholtes describes the direction for the book saying that it: …focused on the pursuit of Quality as taught to us by Dr. W. Edwards Deming … and relies on the understanding and application of data. These data-based methods—which we call the scientific approach—draw from the discipline of statistics and classical logic, which characterize Dr. Deming’s teachings. (p. I-1) The Leader’s Handbook, 1998. A review of The New Leadership Competencies Scholtes identifies in Chapter 2 reflects the strength of his understanding of Deming’s style of management: 1. The ability to think in terms of systems and knowing how to lead systems 1 Deming, W. Edwards, The New Economics, (2nd ed.), Cambridge, MA: Massachusetts Institute of Technology Center for Advanced Engineering. 2 Scholtes retired in 1999 due to poor health. 3. Understanding how we learn, develop, and improve; leading true learning and improvement 4. Understanding people and why they behave as they do 5. Understanding the interaction and interdependence between systems, variability, learning, and human behavior; knowing how each affects the others 6. Giving vision, meaning, direction, and focus to the organization Articles: • “The Quality Manager’s New Job” with Brian Joiner, 1986, Quality Progress • “An Elaboration on Deming’s Teachings on Performance Appraisals,” 1987, Joiner Associates, Inc. • “Total Quality Leadership vs. Management by Control” with Brian Joiner, 1988, Center for Quality and Productivity Improvement, University of Wisconsin-Madison • “Beginning the Quality Transformation, Part 1” and “Six Strategies for Beginning the Quality Transformation, Part II” with Heero Hacquebord, 1989, Quality Progress (awarded the Brumbaugh Award by ASQ) • “Total Quality or Performance Appraisal: Choose One,” 1993, National Productivity Review • “Reward and Incentive Programs are Ineffective – Even Harmful,” 1994/95, Small Business Forum • “Teams in the Age of Systems,” 1995, Quality Progress • “What’s Pride Got to Do with It?” 1996, The Journal for Quality and Participation • “Communities as Systems,” 1997, Quality Progress • “Unnecessary Adversaries,” 1998, The Journal for Quality and Participation • “The New Competencies of Leadership,” 1999, Total Quality Management • “Performance Appraisal: State of the Art in Practice,” 1999, Personnel Psychology • “The Public Sector in the 21st Century: Case Studies of Successful Citizen-Government Partnerships” with Becky Meyers, Tom Mosgaller, Mark Popovich, and Dale Weeks, 1999, ASQ Quality Congress Proceedings Work with and comments from Dr. Deming • References by Dr. Deming may be found in both Out of the Crisis and The New Economics • Out of the Crisis, p. 247 acknowledging Scholtes assistance with the improvement work with the Motor Equipment Division of the City of Madison • The New Economics, p. 38 acknowledging Scholtes observations that 95% of changes made by management make no improvement. • Presenter in “Instituting Deming’s Methods for Management of Productivity and Quality” (with Deming, Baker, Hacquebord, Joiner, and Scherkenbach), Presented multiple times across the country by Quality Enhancement Seminars (1987-1993) • Featured in “The Prophet of Quality,” introductory volume for The Deming Library Tape Series, Films, Inc., 1992 • In the foreword to The Team Handbook, (1988) Deming writes: “Change is required. There is a process of change, just as there is a process of manufacturing, or for growing wheat. How to change is the problem. Mr. Scholtes provides the route in this book for change. He has my respect and best wishes.” Professional Seminars and Presentations • “The Case Against Performance Appraisals” and “What to Do Instead of Performance Appraisals” Volumes I and II of the Implementing Deming: The Philosophy in Practice Video Tape Series, 1992, Films Incorporated • Featured in “The Deming Revolution” videotape, CC-M Productions, 1995 • Collaborated with others to present “W. Edwards Deming: His Learning and Legacy” Video Conference, October 14, 1994 • Regular speaker at the annual Hunter Conference (Madison Area Quality Improvement Network), Deming Conference (Ohio Quality and Productivity Forum), Deming Forum (British Deming Aassociation) • Speaker at W. Edwards Deming Institute Conference; ASQ National Congress; Association for Quality and Participation National Conference; Federal Quality Conference; Australian Quality Council (Scholtes spoke at some of these conferences several times) • Member of The W. Edwards Deming Institute Design Council • Chairman of the Development & Outreach Committee, The W. Edwards Deming Institute • Regular lecturer in Deming Scholars MBA Program at Fordham University (as well as guest speaker in several other academic programs) • Presenter of “Quality in the Service Sector” workshop sponsored by George Washington University • Presenter of “Organizational Change for Quality Improvement,” 1991, seminar sponsored by Ohio Quality and Productivity Forum • Presenter of “Review and Inquiry: Powerful Tools for Leading Quality,” 1989, seminar sponsored by Ohio Quality and Productivity Forum Awards and Recognitions • 1989 recipient of ASQ’s Brumbaugh Award (with Heero Hacquebord) • 1995 recognized as one of the 50 Quality Leaders of the decade by Quality Digest • 1999 ASQ Ishikawa Medal recipient A quote from the nomination illustrates characteristics related to qualification for the Deming Medal: People who have had the privilege of working with Peter uniformly report that through their interactions with him, they gained a deeper understanding of quality. Textbook ideals have a living model in Peter. His actions speak even more profoundly than his words. He collects pertinent data and acts on it. He distinguishes between special cause and common cause. When things go wrong, he looks for a systemic cause, not a culprit. He treats people with dignity. He creates (and follows) open, systemic policies and processes that enable people to treat each other with dignity. He sees the gift in everyone. Nomination for the Deming Medal Nominee: Peter R. Scholtes ___________________________________________________ Question 2: Give evidence of contribution to Dr. Deming’s Philosophy. Scholtes’ contributions to Dr. Deming’s philosophy follow two paths—communicating Dr. Deming’s message to a wider audience and extending Deming’s ideas. The publications and presentations listed in Question 1 provide evidence of contributions. The Team Handbook, The Leader’s Handbook, and Scholtes’ work on the controversial topic of performance appraisals are his most significant contributions to Dr. Deming’s philosophy. In his publications, Scholtes has integrated ideas about variation, human behavior, learning, and systems. As already mentioned, Scholtes was a regular presenter at Deming related conferences as well as other conferences related to Quality, Employee Involvement, and Teamwork. In addition to numerous presentations in the United States, he also presented in England, Australia, New Zealand, Russia, Brazil, and Canada. The content of Scholtes’ presentations and writings are clearly rooted in Dr. Deming’s teachings. He ties Deming’s theory to today’s world and to traditional management theory (by contrast). He provides direction for the practitioner who wants to know “How?” Other people who have documented the work of Dr. Deming have also referenced Scholtes. For example, Scherkenbach references him in Deming’s Road to Continual Improvement; Walton describes some of his work with the Philadelphia Area Council for Excellence in The Deming Management Method; and Neave says, “There are more references to Peter Scholtes in my own book [The Deming Dimension] on the Deming philosophy than virtually anybody else other than Dr. Deming and Shewhart.” Peter Scholtes was a founder of Madison Area Quality Improvement Network (MAQIN), served on national American Society for Quality and Association for Quality and Participation committees, and served as a consultant to numerous business organizations, and to local, state, and federal agencies. In each of these instances he brought his own personal talents for working with individuals and groups along with his commitment to challenge people to “ask really good questions and listen.” (“Reflections on 9/11,” posted at http://www.pscholtes.com/pscholtes/articles/apr2003.pdf) Nomination for the Deming Medal Nominee: Peter R. Scholtes ___________________________________________________ Question 3. Show how the nominee has applied the theory of management to effect a transformation or be well underway. Since Scholtes spent much of his professional career as a consultant, lecturer, and writer, it is difficult to completely document the impact he has had on a large number of organizations. However, it is clear that he was an important force in many improvement efforts. From his early efforts working with the City of Madison’s First Street Garage to his later efforts working with W. Edwards Deming Institute Tacoma Project, Scholtes influenced the thinking and actions of numerous individuals in the public sector, education, healthcare, profit and non-profit business enterprises. Organizations that benefited from his assistance include the U.S. Department of Defense, the Federal Quality Institute, the White House Communications Agency, the University of Wisconsin-Madison, Waukesha Area Technical College, Madison Metropolitan School District, Aurora University, Meriter Hospital, Parkview Medical Center, Columbus Regional Hospital, and JX Enterprise (a holding company that owns seven Peterbilt dealerships and a finance company). One could argue that Scholtes’ greatest contribution to transformation is affecting the way people think about the management of people. Through The Team Handbook, The Leader’s Handbook, and all of his work related to performance appraisals, he emphasizes a systems view of an organization and the interactions among individuals and groups that are necessary to optimize the performance of the organization. Both books and many other presentations and articles include tools for understanding and reducing variation in systems. Among the organizations that report using at least one of these books to train employees and direct improvement efforts are American Family Insurance, Wisconsin Public Service Corporation, Placon, Gillette Stationery Products Group, and the Department of Defense. With more than 900,000 copies of The Team Handbook in circulation, it is safe to say that many more organizations than these have used Scholtes’ book as a resource. One of Scholtes’ professional contributions directly linked to Dr. Deming’s philosophy was the Tacoma Project. It was Scholtes’ leadership that led to the selection of Tacoma as an early undertaking for the W. Edwards Deming Institute, and he guided this project through its early stages. The demonstration project — known as the Community Collaborative on Family Violence —increased the safety of victims of family violence and increased the confidence and abilities of those who provide services and manage programs in the areas of child abuse, domestic violence, elder abuse, sexual assault and legal/law enforcement. Examples of the types of results achieved from twelve improvement teams include stimulating multi-agency cooperation that greatly reduced the time between issuing warrants and arresting perpetrators of domestic violence and establishing safe housing alternatives for victims of elder abuse that were more compatible with their lifestyles and age. As a result of involvement in this project, several members of the initial group have taken their learnings and applied the same model in other communities. In addition, leaders of the Tacoma project have received inquiries about using the same model from Florida, Hawaii, Massachusetts, Wyoming, Texas, England, and Sweden. The currency of Scholtes’ work is evident. Consider the cover story of the June 12, 2006 Fortune Magazine —“Secrets of Greatness: Teamwork!” The issue includes 51 pages of stories, tips, and advice. Many of Scholtes’ themes are included in the content; e.g., break down silos, listen to customers, develop a culture of trust, teams are not just a bunch of all-stars. Also, consider a follow-up letter on “The Rewards of Teamwork” in the July 10, 2006 issue: Ironically, despite the evidence on the importance of teams to corporate success, compensation consultants tell companies to provide most pay increase to top performers, leaving the majority—all those team members—behind. This encourages employee competition, not cooperation. … Team-based approaches will never work unless companies reward everyone equitable for working together.” Corey Rosen, Executive Director, National Center for Employee Ownership Peter Scholtes has contributed immeasurably to the transformation Deming envisioned. Nomination for the Deming Medal Nominee: Peter R. Scholtes ___________________________________________________
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