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The New Economics

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Summary of The New Economics
Written by W. Edwards Deming, this book outlines his philosophy of management, emphasizing systems thinking, continuous improvement, and the importance of understanding variation to achieve organizational success and economic stability.

Book Recommendations

1. Best Alternate on the Same Topic: Out of the Crisis by W. Edwards Deming – Deming’s foundational work on his management principles and quality improvement practices.
2. Best Tangentially Related Book: The Fifth Discipline by Peter Senge – Explores systems thinking and learning organizations in a similar vein to Deming’s ideas.
3. Best Diametrically Opposed Book: The Wealth of Nations by Adam Smith – Advocates for free-market mechanisms and individual decision-making, contrasting Deming’s focus on structured systems.
4. Best Fiction Book Incorporating Related Ideas: Atlas Shrugged by Ayn Rand – While ideologically opposite, it explores economic systems and the role of innovation and leadership, themes tangentially related to Deming’s work.

Random Notes

• How modern American management sucks
• How to do better
• System of Profound Knowledge
  • Appreciation for a system
  • Psychology
  • Variation
    • Statistical Process Control
      *
    • Common causes vs special causes
  • ?

Notes by Chapter

1. How Are We Doing?

2. The Heavy Losses

3. Introduction to a System

4. A System of Profound Knowledge

5. Leadership

6. Management of People

The Role of a People Manager

4. Increasing learner
5. Coach & council, not a judge
6. Understands a stable system
7. Has 3 sources of power
   1. Authority of office
   2. Knowledge
   3. Tact
8. Studies results to improve his management abilities
10. Creates trust
11. Does not expect perfection
12. Listens & learns without passing judgement
13. 1on1 once per year

7. The Red Beads

8. Shewhart and Control Charts

9. The Funnel

10. Some Lessons in Variation

11. Why Deming? Why Now More Than Ever?