HR

What Deming’s Red Bead Experiment Reveals About Performance Reviews (And How HR Can Do Better)

If you’ve ever sat through a performance review feeling frustrated or uncertain about the criteria, you’re not alone—and you’re not imagining things. One of the most powerful demonstrations of performance review pitfalls comes from Dr. W. Edwards Deming’s famous Red Bead Experiment, a timeless lesson for HR professionals, managers, and anyone focused on continuous improvement. Let’s explore how this simple experiment predicts many of the problems inherent in traditional performance reviews—and what effective leaders and organizations can do about it.