Fear and Loathing: The Danger of Numerical Goals



In this episode of the Why They Fail Podcast, we take on one of the biggest traps in modern management: the obsession with numerical goals.
Dr. W. Edwards Deming warned against this decades ago in his famous Point 11, which calls for the elimination of management by objectives. Today, those warnings still apply.



Our guest is John Dyer, bestselling author of The Facade of Excellence and a Master Black Belt who spent decades at General Electric and Ingersoll Rand.
John has also written many articles for IndustryWeek magazine, which you can read here:
https://www.industryweek.com/home/contact/22028785/john-dyer



He also hosts the Behind the Curtain: Adventures in Continuous Improvement podcast on IndustryWeek:
https://www.industryweek.com/podcasts/behind-the-curtain



John explains how the focus on hitting numbers breeds fear and manipulation instead of real improvement. Together, we break down how to fix the system, not the people, and how real leadership drives long term excellence.





The Root Cause of Failure: Management by Objectives



Deming’s 14 Points shaped the foundation of modern quality management. Yet, the most misunderstood remains his call to end management by objectives.
When leaders impose numerical targets without improving the system or providing the right tools, they set teams up to fail. It creates a culture of blame and fear, the very opposite of trust and innovation.



John shared powerful examples. In one case, a company proudly reported a 99% first-pass yield, while customer returns hit 20%. The numbers looked good, but the truth was hidden. This Facade of Excellence proves why chasing targets over truth destroys credibility and improvement.



Learn more about Lean and Six Sigma here





Substituting Leadership for Numerical Goals



So, what replaces management by numbers? Leadership.
Deming’s Point 11 calls for leaders who coach instead of command. A good system helps good people succeed. A bad system defeats even the most skilled team.



John emphasized that unrealistic goals do more harm than good. Setting unreachable targets, like jumping from 90% quality to 99% overnight, only frustrates teams and drives shortcuts.



Instead, focus on leading improvement, not demanding results. Six Sigma Black Belt certification teaches this principle in depth.





The Power of Celebration Points



Instead of rigid objectives, John promotes Celebration Points - small, achievable wins that create momentum and pride.
For instance, a team aiming for 100% quality could celebrate at 92%, then 94%, then 97%. These steps build confidence and enthusiasm.
Continuous improvement isn’t about perfection overnight. It’s about steady progress and consistent leadership support.



This mindset reflects the true spirit of Kaizen, where every improvement, no matter how small , matters.





The Hidden Barrier: Managerial Fear



One of the most surprising insights John shared was that the biggest barrier to lasting change isn’t tec...
Chapters
(00:00:00) - Why Continuous Improvement Efforts Fail(00:01:15) - Six Sigma: The Facade of Excellence(00:02:25) - Sigma: The Process of Excellence(00:08:59) - The 14 Points of W. Deming(00:14:10) - Management by Accommodations(00:22:06) - The Facade of Excellence vs. Empowerment Organization(00:27:55) - What is the biggest inhibitor of Continuous Improvement Initiative?(00:34:19) - John Deming on the Red Beat(00:41:11) - John Dyer

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