Leadership & Management

Stop Accepting Problems as Normal: Deming’s Point #2 for Small Business Growth

Learn how Deming’s second point, 'Adopt the New Philosophy,' helps small business leaders stop accepting recurring problems, reduce waste, improve quality, and build a culture of continuous improvement.

Bobby Walls 3 min read

Stop Accepting Problems as Normal: Deming’s Point #2 for Small Business Growth

One of the biggest obstacles to business growth is something many of us do without even realizing it:

Accepting problems as normal.

You may have heard statements like:

  • "We always have customer complaints."
  • "That's just part of the industry."
  • "We always have some rework."
  • "Employees always make mistakes."
  • "Our processes have always worked this way."

When I first learned about Deming's second point, it challenged me to look at these statements differently.

Adopt the New Philosophy

Deming's second point is simple but transformative:

"Adopt the new philosophy."

Deming argued that leaders should stop accepting poor quality, waste, delays, and inefficiencies as a normal cost of doing business and instead commit to continually improving the system.

For many small businesses, this may be one of the most impactful ideas in the entire 14 Points for Management.

The Small Business Advantage

Large organizations often struggle to make change happen quickly.

Small businesses don't have that problem.

When a small team decides to improve:

  • Decisions happen faster.
  • Communication is easier.
  • Improvements can be tested quickly.
  • Results can be seen almost immediately.

That agility is a tremendous competitive advantage.

The challenge is that many small businesses become trapped in a cycle of reacting rather than improving.

We get busy.

We put out fires.

We solve today's problem.

Then we repeat the cycle tomorrow.

Deming's message was simple:

Stop treating symptoms and start improving systems.

What This Looks Like in Practice

Old Philosophy

  • ❌ Employees need to be more careful.
  • ❌ Mistakes happen.
  • ❌ Customers will complain sometimes.
  • ❌ We're too small to improve our processes.

New Philosophy

  • ✅ What in our process made the mistake possible?
  • ✅ How can we prevent this issue from recurring?
  • ✅ What would make this easier for employees?
  • ✅ How can we create more value for customers?

The difference is subtle but powerful.

One approach blames people.

The other improves systems.

Real-World Example: Toyota

Toyota is one of the most recognized examples of adopting a philosophy of continuous improvement and refusing to accept defects, waste, and recurring problems as inevitable.

Rather than focusing solely on short-term financial performance, Toyota built a culture where identifying and solving problems became part of everyday work. This long-term commitment helped establish Toyota's reputation for quality, reliability, and operational excellence.

The lesson is not that every small business should become Toyota.

The lesson is that successful organizations create a culture where improvement is everyone's responsibility.

Five Practical Actions for Small Business Leaders

1. Stop Asking “Who Made the Mistake?”

Start asking:

What allowed the mistake to happen?

That single question changes the conversation.

2. Track Recurring Problems

For the next 30 days, write down every instance of:

  • Customer complaints
  • Rework
  • Delays
  • Missed deadlines

Look for patterns.

Patterns reveal system issues.

3. Improve One Process Per Month

Not ten.

One.

Small improvements compound over time.

4. Ask Employees for Ideas

The people closest to the work often know exactly where the problems are.

Create an environment where they can safely share those ideas and participate in improvement efforts.

5. Reward Improvement, Not Heroics

Many companies celebrate people who save the day.

Start celebrating people who prevent the problem from happening in the first place.

Final Thought

The businesses that achieve lasting success are not perfect.

They simply refuse to accept preventable problems as normal.

Deming's second point reminds us that improvement begins the moment we stop saying:

"That's just how things are."

And start asking:

"How can we make this better?"

Reflection Question

What's one problem in your business that you've accepted for too long?