1:05:31 Yes, yes. I'm on an accelerated track so next year one of my new books that's coming out is called The Greatest Business Success Story Never Told and How You Can Profit From It For your listeners, we'll let them all in on the secret because Deming is not in the title of the book on purpose. Here's a story that one in 10,000 might have an inkling of this gentleman's name but they won't necessarily know the impact so I'll put it as a thumbnail. Dr. W Edwards Deming was an American statistician who was born in 1900 at the turn of the century and he became a statistician, he was a systems expert not IT systems but understanding that everything we do in life is a series of steps, a system that leads to an outcome and the more we understand bird's eye view, the system were engaged in whether it's the system of our day
1:06:31 Right beginning middle and end or the system of a company, the delivery of product service when we understand that system continuously towards perfect. We can elevate quality at the output ok deming goes deming was involved in united states victory in world war two he's like this forest gump in history He wrote and taught the quality standards that largely determined the quality of everything the United States produced during the war. The quality of our ammunition, guns tanks planes, the whole nine yards was directly benefited from Deming's work such that everything we produced during the war exhibited made in Japan quality we know today."
1:07:13 Five years after the war ended in 1950, Dr. Deming was over in Japan to help with the census and at that point Japan had been bombed to the ground as we know it. We dropped two atom bombs on them and they were absolutely desolate. They were spiritually bankrupted, industrially bankrupt and just a defeated nation with nowhere to go but up. They were starving in the streets. It's hard to imagine but at that point Japan was literally destroyed as a country MacArthur is over there with the United States occupying forces and Deming's over there to help with the census. Fundamentally, the suggestion was given by Dr. Deming, why don't you share what we were doing during the war in America with Japanese industry? To help them rebuild their war shattered economy
1:07:55 Long story short, starting in 1950 Deming lectured. Within two years he had reached 80% of the leaders of Japan's remnants of industry and made a famous prediction in 1950. He said to the Japanese, ìLook if you will learn the essential principles and techniques I will teach you, I predict within five years that you'll be an exporting nationî. See, at that time Japan was importing everything. Food, fuel materials, the works. No one wanted anything made in Japan for those of us who remember Back to the Future with Doc and Marty McFly you know made in Japan was an international joke The toys and equipment that would break quickly and so forth no reputation whatsoever for quality quite the reverse Deming predicted the Japanese if you learn what I'm going to teach you put it into practice by 1955 you'll turn the tide
1:08:46 They put their head down and they beat the prediction by a year. In 1954, the balance of trade swung and it began a worldwide tidal wave of quality with Japan at the lead. That's why I call Dr Deming the Einstein of quality and success and I'm coming to why I submit he is the architect of the greatest business success story in history never told. The Japanese kept their head down and continuously improved everything they built and made. In the 1970s, they started to surpass America and American industry for General Motors, you know our electronic industry started to sink by the head rapidly because everyone wanted what the Japanese were making. Higher quality products and goods that performed more predictably and longer and kept their value longer and fundamentally eventually ended up costing less so Americans started to cry for protection from evil Japanese who had been taught by an American in fact the highest award you can win in Japan
1:09:45 Even today in 2015 going back to 1951 is called the Deming prize and it's awarded amidst great fanfare like the Oscars in the United States every year. It's televised, and it's considered the Nobel Prize of quality and success in Japan Imagine in the United States if our highest award for business success was called the Ishikawa Prize and it was named after a Japanese citizen, I think there would be a story there. So long story short in 1980, a friend and colleague of mine named Claire Crawford Mason who is NBC News producer and reporter was charged with figuring out why is American industry sinking by their head?
1:10:22 So she started to investigate. She interviewed the Japanese heads of companies and they all said, well it's Dr Deming! And she said doctor who? They said no not Doctor Who...Doctor Deming!! And she found out that he was 80 years old still practicing in his basement office 20 minutes from the White House and No one in the Carter administration had ever heard of this guy Okay, so she went to interview him and she figured you know It's worth at least stopping by and she goes into his basement office, Dr. Deming is 80 years old and he's muttering about how America is committing economic suicide and we've got to get quality back into America or our children are going to wake up on a land where their standard of living is lower than their parents' and so forth. And Claire thought well God this guy is really eccentric and has got a chip on his shoulder
1:11:06 Then he pulled out the headlines from the 1960s showing Emperor Hirohito awarding him the highest award you can award a non-Japanese born citizen for basically saving the Japanese economy and being responsible for the Japanese economic miracle. There might be a story here, but she put him on NBC News in what is now called in history the second most impactful documentary in history. Dr. Deming was reintroduced to the world at age 80 in 10 minutes on this special It was called if Japan can why can't we it's broadcast in June of 1980 on NBC and that? Reintroduce the science and art of quality To the world or talking all the service companies the manufacturing companies automotive power plants Military, we're talking every sphere of life on planet Earth now
1:11:55 Okay, and from that point forward quality became an imperative strategic elements in every single business on the planet you had quality not only survive your thrived you took the market. And so we know businesses and again doesn't matter if it's a service business an entrepreneur mom and pop or toyota, yes sink swim or fly depending on the quality of god your product your service and its delivery and so i'm told trillions of dollars in value and growing have resulted from the humble teachings of this unknown American, Dr. W Edwards Deming So he's the foundation for the work that I do on the corporate side and the retreats that I lead And of course Ho Shin which is the strategic planning system that Dr. Deming inspired is a methodology for basically setting the stage for highest quality in one's life
1:12:49 in one's business and in one's industry, and parallel. And I'll end with this it also sets the elements in place the cornerstones in place to invite the harmony and alignment of The Golden Ratio into ones business and life and practice. Man! I think that is a amazing story. I'm glad you told because today everybody thinks about the culture of Japan as being strives for excellence. All of our electronics are Japanese, everything I'm looking at on my desk here is Japanese and we take that for granted but there's a reason for that you know? There is a methodology that got them there and I think it's definitely important that everybody thinks about their own passion because I doubt its working in the cubicle AT&T for 40 years. I doubt it being the best burger flipper but if you take your passion
