“The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside. The aim of this chapter is to provide an outside view—a lens—that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in. The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people. Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to.”

— W. Edwards Deming

The New Economics for Industry, Government, Education (1993)

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W. Edwards Deming 33

American professor, author, and consultant 1900–1993

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“To successfully respond to the myriad of changes that shake the world, transformation into a new style of management is required. The route to take is what I call profound knowledge - knowledge for leadership of transformation.”

W. Edwards Deming (1900–1993) American professor, author, and consultant

The New Economics for Industry, Government, Education (1993)

“Analysis of a system reveals its structure and how it works. It provides the knowledge required to make it work efficiently and to repair it when it stops working. Its product is know-how, knowledge, not understanding. To enable a system to perform effectively we must understand it—we must be able to explain its behavior—and this requires being aware of its functions in the larger systems of which it is a part.”

Russell L. Ackoff (1919–2009) Scientist

Source: 1990s, Re-Creating the Corporation (1999), p. 12.

“Knowledge, then, is a system of transformations that become progressively adequate.”

Jean Piaget (1896–1980) Swiss psychologist, biologist, logician, philosopher & academic

Genetic Epistemology (1968) http://www.marxists.org/reference/subject/philosophy/works/fr/piaget.htm – First lecture
Context: Knowing reality means constructing systems of transformations that correspond, more or less adequately, to reality. They are more or less isomorphic to transformations of reality. The transformational structures of which knowledge consists are not copies of the transformations in reality; they are simply possible isomorphic models among which experience can enable us to choose. Knowledge, then, is a system of transformations that become progressively adequate.

“Faced with new realities, our systems have to transform — as the society has transformed. They have to learn to co-change (co-evolve) with their constantly changing environments. Thus, it is imperative that we understand what these transformations and new realities are. We have to grasp their implications for systems, and apply our understanding of these implications to the transformation of our systems. We need to learn how to recreate our systems, how to redesign them so that they will have a “goodness of fit” with the emerged new realities. No small task by any means!”

Béla H. Bánáthy (1919–2003) Hungarian linguist and systems scientist

Béla H. Bánáthy (1994) Creating our future in an age of transformation. p. 1; Cited in: Sherryl Stalinski (2005) A Systems View of Social Systems, Culture and Communities: The Legacy of Bela H. Banathy. Saybrook Graduate School. p. 11.

“Management’s job. It is management’s job to direct the efforts of all components toward the aim of the system. The first step is clarification: everyone in the organization must understand the aim of the system, and how to direct his efforts toward it. Everyone must understand the damage and loss to the whole organization from a team that seeks to become a selfish, independent, profit centre.”

W. Edwards Deming (1900–1993) American professor, author, and consultant

The New Economics for Industry, Government, Education (1993)

“The core of a root definition of a system will be a transformation process (T), the means by which defined inputs are transformed into defined outputs. The transformation will include the direct object of the main activity verbs subsequently required to describe the system.”

Peter Checkland (1930) British management scientist

Source: Systems Thinking, Systems Practice, 1981, p. 223 as cited in: Gillian Ragsdell, Daune West, Jennifer Wilby (2002) Systems Theory and Practice in the Knowledge Age. p. 82. In the original quote Checkland summarised his earlier work with Smyth published in 1976.

“The relations that define a system as a unity, and determine the dynamics of interaction and transformations which it may undergo as such a unity constitute the organization of the machine.”

Francisco Varela (1946–2001) Chilean biologist

Source: Autopoiesis and cognition: The realization of the living (1980), p. 137

“The relations that define a system as a unity, and determine the dynamics of interaction and transformations which it may undergo as such a unity constitute the organization of the machine.”

Humberto Maturana (1928) Chilean biologist and philosopher

Source: Autopoiesis and cognition: The realization of the living (1980), p. 137.

“Analysis of a system reveals how it works; it provides know-how, knowledge, not understanding; that is, explanations of why it works the way it does.”

Russell L. Ackoff (1919–2009) Scientist

This [understanding of why systems work] requires synthetic thinking... Analysis is the way scientists conduct research. Synthetic thinking is exemplified by design.
Ackoff & Greenberg (2008) Turning Learning Right Side Up. p. 61 as cited in: Stephen M Millett (2011) Managing the Future: A Guide to Forecasting and Strategic Planning. p. 52.
2000s

“The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down, starting with a view of the CEO as the "leader" who shapes the organization's strategy, structure, culture, and performance potential. The nature of work and the role of the workforce enter the analysis much later, after considerations of technology and organization design have been considered. However, if the key source of value in the twenty-first-century organization is to be derived from the workforce itself, an inversion of the dominant approach will be needed. The new perspective will start not at the top of the organization, but at but at the front lines, with people and the work itself — which is where value is created. Such an inversion will lead to a transformation in the management and organization of work workers, and knowledge. This transformation was signalled by McGregor, but we must go further.”

Wanda Orlikowski American computer scientist

Thomas Kochan, Wanda Orlikowski, and Joel Cutcher-Gershenfeld. "Beyond McGregor's theory Y," in: Douglas McGregor (1960), The Human Side of Enterprise; Annotated Edition, 2006, p. 366

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