From 2004 through 2007, we worked to apply Deming’s principles at Force Protection, a business faced with enormous opportunity and challenges. I attribute our transformation from start-up to established billion dollar company largely to the System of Profound Knowledge, which we worked to implement, not perfectly, but as best as we could.
By no means is it easy, or was the job complete, and transformation in the midst of growth is difficult, but without the System I do not believe we would have overcome these challenges. I attribute our success to the methods and theories developed by Deming.
Deming’s insight on complex social systems taught our management team to look at the company as a whole with a life of its own rather than as a loose collection of departments or individuals.
Deming’s theory is profound in its impact and amazing in its simplicity. As an American who taught these critical management theories to Japanese businesspeople after World War II, Deming quietly changed the world.
With these same theories and no natural resources except a motivated workforce along with committed leaders and managers, Japan developed the second largest economy in the world and a commitment to excellence and collective prosperity. Deming’s Theory of Profound Knowledge, his 14 Points for Management, and the practice of continual improvement are essential for any organization looking to compete successfully over the long-term.
In many ways, I believe that the current global economic crisis, especially as it is manifested in the United States, is the direct result of a departure from proven principles. What we are witnessing is the massive fallout that results from a systemic failure. Rather than functioning according to Deming’s principles and in accordance with the System of Profound Knowledge, individuals are striking out on their own and pursuing their own self-interests, in business and government, to the detriment of everyone.
Only by returning to the basics and the principles that have led to greatness can we ever hope to find a way out of the current crisis. The opportunities are tremendous. At Fort Ashford Funds, we are committed to helping our insurance and risk-related portfolio companies and the companies we invest in effectively pursue these opportunities through positive systemic transformation.
2 comments


Dear Frank. While I know this blog isn’t for this type of message, it’s the only way I could send my condolences to you at the passing of James this past 12/20/09.
I knew your father; your grand-father - was friends of Gerald Kott who worked for the Kavanaugh Agency back in the 1960’s, 70’s, etc.
Dr. Tom and Dr. John delivered 2 of my my four children; I named one of my sons after him since Dr. Tom delivered him on 10/14/1969.
I met James back in 1980; we had a friendship that I cherished - the entire 7 sons of the Kavanaugh family, have been most remarkable and have played a huge influence in my life, simply because of their outstanding commitment to doing right by their family; friends, and all the people that have become a part of their lives as they service their patients and others with such care.
I felt lucky to see that you had now taken the original agency to this newest level; I saw your picture, and can see the ‘Kavanaugh’ look, and while I know you will miss James as we all missed Dr. John and the other brothers when they passed, you look as though you are going to continue to make the name ‘Kavanaugh’ a name to be proud of for your family; your friends and of course your many clients.
I wish you a Happy New Year and much success.
Diane
I’m sorry for the typo’ - December 29, 2009 is when your uncle James passed.
I’ve read some of your other blog posts and enjoyed them very much. While I’m retired and no longer play much of a part in ‘big business’, I was intrigued by what your business philosophy is, and I can say you’re right on the mark.
Then again, your entire family history has a habit of being ever so ‘perfectly on point’ in all that they do - you carry the tradition proudly, I’m sure. Diane