Red Bead Experiment
Dr. Deming used the Red Bead Experiment to clearly and dramatically illustrate several points about poor management practices. This includes the fallacy of rating people and ranking them in order of performance for next year, based on previous performance.
The Red Bead Experiment uses statistical theory to show that even though a “willing worker” wants to do a good job, their success is directly tied to and limited by the nature of the system they are working within. Real and sustainable improvement on the part of the willing worker is achieved only when management is able to improve the system.