System Variation
Why Performance Rankings Hurt Teams: Evidence from the Red Bead Experiment
In today’s competitive business environment, organizations often turn to performance rankings, stack rankings, or forced distribution methods to drive higher output from their teams. These controversial HR practices rate employees against each other, rewarding the “top performers” and penalizing or even terminating those who fall at the bottom. On the surface, this may appear to be a fair and merit-based approach. However, Dr. W. Edwards Deming’s Red Bead Experiment provides compelling evidence that these practices are deeply flawed and can actually harm organizational performance.
Dr. Deming’s 14 Points for Management: How the Red Bead Experiment Illustrates Each Principle
Dr. W. Edwards Deming revolutionized the world of quality management with his philosophy and teachings, most notably summarized in his 14 Points for Management. Perhaps no demonstration captures the essence of these principles better than the famed Red Bead Experiment. Used in seminars globally, the Red Bead Experiment provides a compelling, hands-on way to visualize the power—and the limits—of management intervention in improving organizational performance.
In this in-depth article, we’ll explore each of Deming’s 14 Points and see how the Red Bead Experiment uniquely brings these concepts to life. Whether you’re a continuous improvement professional, quality manager, or simply seeking to drive excellence in your organization, understanding the connection between the experiment and Deming’s teaching can deepen your impact.