DOI: 10.13140/RG.2.1.4185.

1288

Application of Buddhist Teachings in Management with

Focus on the Deming-Cycle

Thomas Voss
M.A., B.Eng. (Hons)

Abstract
In this paper I compare the pivotal Buddhist teaching of the Four Noble Truths with the Deming-Cycle, a wide-
spread improvement tool in today’s management. The reader will be introduced into the origin and fundamentals of
this method which is then contrasted with a concise description of the Four Noble Truths. The characteristics of the
former are than compared and interpreted with the Buddhist teaching to discuss their similarities and to work out
that both are in fact equivalent in their qualities as problem solving and improvement tool. Therefore, the Deming-
Cycle can be treated as an application of the Buddhist teaching in management provided its use is motivated by the
same intentions abandoning selfish desire, hatred and delusion.

Keywords Continuous Improvement Model, Change Management, Four Noble Truths, PDCA, Buddhism

Introduction
“[I]t's not easy, living at home, to practice the holy life totally perfect, totally pure (…)”.1 This is what many lay
followers often realise quickly, when they try to practice the Buddha’s teaching in their everyday lives. The “Noble
Path” and the “real world” seem to contradict each other to such extend that a lay follower might consider any en-
deavour to practice as a completely hopeless and unrealistic task. This view might harbour even more momentum
for the Buddhist manager who, in today’s competitive business environment, finds himself overpowered in a notori-
ous greedy, hostile and beguiling environment, which demands him to either obey or being otherwise doomed non-
fit for survival.
Executives, however, who never came in touch with Buddhism before might be surprised and wonder how an an-
cient religion could offer anything useful at all to solve their daily problems. They might question how relevant a
system of faith and devotion can be in the deterministic world of business and without hesitation abolish further
enquiries altogether.
In this paper I will try to bring both attitudes closer together and contrast the Four Noble Truths (cattāri ariyasac-
cāni), the very foundation of the Buddhist philosophy, with a widely used management tool, called the Deming2-
Cycle or Plan-Do-Check-Act-(PDCA)-Cycle, illustrating, based on this example, the similarities of both concepts as
improvement models. I will show that the latter, even though being a concept developed around World War II, is in
its core the same as what the Buddha taught more than 2500 years ago.
Neither does this work aim to dig up so far uncovered insights of the deep meanings of the Buddha’s teaching nor
does it try to mould a western management practice into an Asian philosophy for the sake of showing off Buddhism
as a “Theory of Everything”. I am rather motivated by the quest to illustrate a quite obvious similarity – but as I feel
barely visible - between this very common management tool and what the Buddha taught. If through the study of
this piece of work the manager of either standpoint catch a glimpse of the virtues of these Buddhist teachings, I con-
sider my mission accomplished.
To do so, I will, after a short introduction into the nature of improvement, present the fundamental idea and usage of
the Deming-Cycle and reflect briefly on its history and importance. Likewise, I will provide a very condensed in-
sight of the Four Noble Truths and collect the fundamentals of this teaching before moving on to compare and con-
trast both models to lay open their striking similarities which will be summarised in my conclusion.

This work was initially submitted by the author as thesis for Postgraduate Diploma in Buddhist Studies to the Postgraduate
Institute of Pāḷi and Buddhist Studies, University of Kelaniya in Colombo, Sri Lanka (December, 2014).
1
Ratthapala Sutta (MN 82).
2
William Edwards Deming (1900 - 1993) was an American statistician, professor, author, lecturer and consultant in Quality
Control.

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 2

From The Seed of Causality to the Management Tool Jungle

Intelligent, rational beings all seem to share the strong urge and desire to ponder about the “Why” of sensual phe-
nomena (including thoughts) which they recognise in their environment. Despite of differences among their group
members’ capacities to verbalise this query or making use of its answers, which are debated by science,3 it seems
evident that the “Why” question is somehow genetically hard-coded in us underpinning the natural development we
call evolution. Therefore, Charles Darwin (1809-1882) concluded that “as natural selection works solely by and for
the good of each being, all corporal and mental endowments will tend to progress towards perfection.”4 In that way,
making sense of the sensual phenomena perceived by a living being is fundamental to nourish its craving for exist-
ence. Where such a seeking mind is gratified with ‘sense’, it schematises and conceptualises the solution process
and, if success can be repeated, develops causal disciplines and methods we e.g. find in philosophy and deductive
sciences. Where it is dissatisfied, running restlessly after answers, urge will turn into anxiety leading the mind to-
wards ‘making up an answer’ by belief, magic and superstition.5
This rudimental “Why” seeks to establish a connection between a perceived effect and its cause(s). Causality runs in
the veins of thinkers and scientists and throughout the human history we find manifold accounts dealing with its
nature, analysis and conceptual usage. Be it the sacred text of the Ṛgveda6 or the biblical Garden Eden7, in the an-
cient world Plato’s Phaedo8, Aristotle’s Four Courses9 or Archimedes of Syracuse’s “Eureka!” after finding the
method to determine the volume of an irregularly shaped object; Abu Ali al Hasan ibn al-Haytham (ca. 965-1039)10
and Galileo Galilei (1564-1642), both proclaimed by many scholars as the fathers of empirical science, or René
Descartes (1596-1650) and Isaac Newton (1642-1726) to name but a few of the many outstanding figures of the
scientific renaissance in the West, later profoundly advanced by Wilhelm Conrad Röntgen (1845-1923), Albert Ein-
stein (1879-1955), Werner Heisenberg (1901-1976) and many others.
Often, these idols stand out less for the phenomenon they discovered but for the concepts they have used to offer
their solution. To assign a scientific method of problem solving to one specific inventor or year of birth is a difficult
task and will not concern us here. More importantly, it seems the act of a genius to apply the right amount of simpli-
fication and practical bearing to turn a great solution into a workable tool. Such pragmatism is a result of constant
interplay of deductive and inductive reasoning, which has always accompanied our evolution - the former delivering
predictions based upon theories and hypotheses, the later concluding on thorough observation of the real world.11
As a consequence many successful solutions have been casted into models, tools, ready reckoners and recipes for
the hands-on practitioner to make use of its findings. It is when certain tools turn out to be extremely useful or their
coming about appears to us as an act of a genius, we trace back and ascribe the accomplishment to an inventor.12
Similarly, we ascribe the Four Noble Truths and the Noble Eightfold Path to Siddhārtha Gautama, The Buddha,
even though he clarified that “[…] I saw an ancient path, an ancient road, travelled by the Rightly Self-awakened
Ones of former times.…Following it, I came to direct knowledge of [the Four Noble Truths]... Knowing that direct-
ly, I have revealed it...”13 Even though there is nothing inherently Buddhistic about them, to a majority, both ‘tools’
are not yet available for managers.
We shall keep in mind that any tool, no matter how sophisticated, can be a blessing or a curse and shall be applied
with mindfulness. With the Industrial Revolution and its excessive focus on productivity and growth, plenty of tools
have been developed to methodically analyse shortfalls of present affairs and to identify the key control elements to
steer towards perfection. Today’s managers and executives are armed with an impressive reservoir of methods
ready to fire off at any enemy appearing on their growth radar. As profound and helpful many of these methods
undoubtedly are, and as important they have been as catalyst for the industrial development, they must be used
wisely and with the awareness that they are a product of simplification. Otherwise they might delude our perception

3
E.g compare Vaesen, K.: “The Cognitive Bases of Human Tool Use”, Behavioral and Brain Sciences 35, No. 4 (2012), p. 203–
128.
4
Darwin, C.: “On the Origin of Species” (1859), p.489.
5
As it was e.g. argued by David Hume in “The Natural History of Religion” (1889) putting forward the rise of polytheism pre-
ceding monotheism as a result of ‘unknown causes’.
6
Since the Mandalas of the Ṛgveda periodically establish a ‘cause-and-effect relationship’ by ascribing the gods as ‘maker’ and
‘giver’ of things such as in “Ataḥ parijmannā gahi divo vā rocanādahi. Samasminnṛñjate giraḥ.” (RV 1.6.9).
7
About how the evil came into the world (Genesis 2:4-3:24).
8
Gallop, D.: "Plato - Phaedo", Oxford University Press (1975), 96a 6ff.
9
Barnes, J., ed.: "Physics - Aristotle", Vol. 1, Bock II, §3 (1996).
10
Ibn al-Haytham is credited for his theory of vision as in Gorini, R.: “Al-Haytham the Man of Experience. First Steps in the
Science of Vision”, JISHIM 2 (2003), p. 53–55.
11
All in all, tool building, their usage and their adoption to new contexts is what the homo sapiens sets apart from other living
beings.
12
Putting aside selfish and economic interests of occupying the fame and rights going along with such inventions.
13
Nagara Sutta (SN 12.65).

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 3

if taken as real and lead to severe side effects if stretched unskilfully beyond their limits. As George E. Box put it
“[e]ssentially, all models are wrong, but some are useful.”14
Also nowadays, all this ‘tool knowledge’ has become big business for countless consultants, self-help book publish-
ers and the like. They cater for an insatiable demand of answering our “Whys” while we keep trying to hack the
lives we live for the better. The tool industry constantly reinvents, reshapes and rebrands its products selling old
wine in new bottles. Yet, behind the curtain of fancy names many tools are so fundamental that they were already
practiced even 2500 years ago, at the time of the Buddha. Whether being a Buddhist or not, if we can acknowledge
that this man tried to solve the most fundamental problem of mankind, studying his problem solving techniques
should be very valuable to everyone. Moreover, despite of the spiritual and philosophical context these teachings
come from, their core concepts are very similar to one basic improvement tool most managers and executives are
familiar with: the Deming-Cycle.

Origin, Fundamentals and Usage of the Deming-Cycle

Dr. W. Edwards Deming (1900-1993) was an U.S. American engineer, statis-
tician and key figure behind the Japanese post-war “Golden Sixties” of eco-
nomic growth. In his early career as Professor of Statistics in New York he
was introduced to Dr. Walter A. Shewhart (1891-1976), a pioneer of statistical
quality control, who’s statistical methods are nowadays widely used among
industries worldwide. What was initially meant for controlling the quality of
manufacturing processes, Deming applied to processes by which entire enter-
prises are led and managed. Later, while he worked in Japan, he trained hun-
dreds of engineers, managers and top executives in quality control technics
laying the foundation of Japan’s reputation in quality products still living on
today.16 His work initiated the Kaizen17 improvement philosophy in Japan and
developed later into the Total Quality Management (TQM)18 movement of the
1970s and 1980s as well as the Six-Sigma-Methodology19. The Deming Prize, a
global quality award recognising individuals and businesses for their quality
excellence, is awarded every year since 1951 in recognition of Mr Deming’s Fig. 1 W. Edwards Deming
15
work. He was awarded the 2nd Order Medal of the Sacred Treasure for his (1982)
contribution to the Japanese industry by Emperor Hirohito in 1960.20
The Deming Cycle, or Plan-Do-Check-Act-(PDCA)-Cycle, as it is often
called,21 “is a continuous quality improvement model consisting of a logical
sequence of four repetitive steps for continuous improvement and learning”
[Figure 2].22 In the Plan-Phase, a problem is defined and possible causes and
solutions are hypothesised. The most promising solution is selected and put
into practice in the Do-Phase from which results are derived e.g. by collecting
data. These data are examined and analysed in the Check-Phase which are re-
viewed in the Act-Phase. Activities are concluded, like standardising the posi-

14
Box, G. E. P., Draper, N. R.: “Empirical Model Building and Response Surfaces”, John Wiley & Sons, New York (1987), p.
424.
15
Source: The W. Edwards Deming Institute.
16
Compare with Wikipedia (2014). “W. Edwards Deming”, [online] Available at:
http://en.wikipedia.org/wiki/W._Edwards_Deming [Accessed 31 Oct. 2014].
17
Kaizen (改善); lt. “good change”, in common language refers to any kind of improvement. In the industrial usage it refers to a
continuous effort to improve all organisation functions and activities involving everyone from CEO to assembly line worker in
the organisation. In reference to the mind-set involved it is often called a philosophy. The main aim of Kaizen is to eliminate
wastes (muda, ), in the sense of non-value adding matter and activity to the stakeholders of the organisation. A simple ex-
ample of a Kaizen initiative might be a suggestion from canteen workers to invest into coffee dispensers after tracking the
amount of coffee wasted by distributing coffee pots to individual tables and presenting a positive return of investment.
18
Total quality management (TQM) is defined by the International Organisation for Standardisation (ISO 8402:1994) as “a man-
agement approach centred on quality, based on the participation of an organisation's people and aiming at long term success”.
19
Invented by Motorola, Inc. in 1986 as a metric for measuring defects and improving quality. Since then, it has evolved to a
robust business improvement methodology that focuses an organization on customer requirements, process alignment, analytical
rigor and timely execution. The term ‘six sigma (6σ)’ is derived from a statistical term. A six-sigma-process is one in which
99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defective parts/million).
20
Johnson, N. L., Kotz, S.: “Leading Personalities in Statistical Sciences”, John Wiley & Sons (2011), p. 359.
21
Also: Deming Wheel, Shewhart-Circle.
22
Isixsigma.com (2014), “Deming Cycle, PDCA | iSixSigma”, [online] Available at:
http://www.isixsigma.com/dictionary/deming-cycle-pdca/ [Accessed 31 Oct. 2014].

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 4

tive results (lessons learned) to prevent falling back into the previous state, and
management decisions are made to leverage on further improvement potentials
when returning to the Plan-Phase. This way, the improvement process is con-
tinued consistently in the quest for excellence [Figure 3].
Ronald Moen and Clifford Norman trace the roots of this tool back to the late
19th century Pragmatism Philosophy of C. S. Peirce (1839-1914), William
James (1842–1910) and John Dewey (1859–1952). 23, 24, 25 C. I. Lewis’s (1883-
1964) book Mind and the World Order (1929), which formulated the episte-
mology of Conceptual Pragmatism,26 had a profound influence on Shewhart
and Deming.27 Shewhart introduced the first “Shewhart Cycle” in 1939 and
wrote related to its application in manufacturing that “[t]hese three steps must
go in a circle instead of in a straight line, as shown [in Figure 4]…It may be
helpful to think of the three steps in the mass production process as steps in the Fig. 2 The Four Phases Of The
scientific method. In this sense, specification, production, and inspection cor- PDCA Cycle
respond respectively to making a hypothesis, carrying out an experiment, and
testing the hypothesis. The three steps constitute a dynamic scientific process
of acquiring knowledge.”28
The 39 years old Deming was his editor at that time who stressed later, with
reference to the “Old Shewhart Cycle” [Figure 4, top], the importance of what
we today would probably call a ‘reality check’. In his bestseller Out of the Cri-
ses (1986), he wrote: “Manufacturers used to think of manufacturing in three
steps[…]. Success depended on guess-work – guessing what type and design
of product would sell […]. In the old way, the three steps […] are independent.
In the new way, management introduces, usually with aid of consumer re-
search, a fourth step: […] Test it in service; find out what the user thinks of it,
and why the nonuser has not bought it.”29 It is in reference to this, the four
steps where named by him Design, Production, Sales (results), Research stress-
ing the need for constant, interdisciplinary effort of improvement (Deming
Wheel). Masaaki Imai (born, 1930), the spearhead of the Kaizen movement in
Japan, translated and abstracted the four steps of the Deming Wheel, as pre- Fig. 3 Continuous Improvement
sented in one of Deming’s seminars in 1950, into the PDCA-Cycle for problem by repetition of the PDCA
solving. Kaoru Ishikawa (1915-1989) introduced determining goals and stand-
ardisation of the achieved results into the cycle which by the 1960’s had
evolved into a management tool in Japan.30

23
Moen, R., Norman, C.: “Evolution of the PDCA Cycle” (2009), p.5.
24
Peirce opposed the prevailing hair-splitting sophism, as he coined it, in mainstream philosophy by claiming to “consider what
effects” and went on that “it will sometimes strike a scientific man that the philosophers have been less intent on finding out
what the facts are, than on inquiring what belief is most in harmony with their system. It is hard to convince a follower of the a
priori method by adducing facts; but show him that an opinion he is defending is inconsistent with what he has laid down else-
where, and he will be very apt to retract it. These minds do not seem to believe that disputation is ever to cease; they seem to
think that the opinion which is natural for one man is not so for another, and that belief will, consequently, never be settled. […]
On the other hand, all the followers of science are animated by a cheerful hope that the processes of investigation, if only pushed
far enough, will give one certain solution to each question to which they apply it. So with all scientific research. Different minds
may set out with the most antagonistic views, but the progress of investigation carries them by a force outside of themselves to
one and the same conclusion. This activity of thought by which we are carried, not where we wish, but to a force-ordained goal,
is like the operation of destiny. No modification of the point of view taken, no selection of other facts for study, no natural bent
of mind even, can enable a man to escape the predestinate opinion. This great hope is embodied in the conception of truth and
reality. The opinion which is fated to be ultimately agreed to by all who investigate, is what we mean by the truth, and the object
represented in this opinion is the real. That is the way I would explain reality.” (Peirce, C.S.: “How to Make Our Ideas Clear”,
Popular Science Monthly 12 (January 1878), p 282-302).
25
Dewey drew a cyclic relationship when he wrote: “When we experience something we act upon it, we do something with it;
then we suffer or undergo the consequences. We do something to the thing and then it does something to us in return: […] The
connection of these two phases of experience measures the fruitfulness or value of the experience.” (Dewey, John: “Democracy
and Education”, Macmillan, New York (1930), p. 163).
26
Wikipedia (2014). “Pragmatism.”, [online] Available at: http://en.wikipedia.org/wiki/Pragmatism [Accessed 2 Nov. 2014].
27
Also compare Peterson, G.T.: “The Influence Of C I Lewis On Shewhart and Deming”, Excelsis Business Advisers (1998).
28
Shewhart, W. A.: “Statistical Method from the Viewpoint of Quality Control”, Department of Agriculture. Dover (1986), p. 45.
29
Deming, W.E.: “Out of the Crisis: Quality, Productivity and Competitive Position”, Cambridge University Press (1986), p.
180.
30
Moen, R. D., Norman, C. L.: “Evolution of the PDCA Cycle” (2009), p. 7.

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 5

Deming reintroduced the Shewhart Cycle in the 1980’s, referencing it to the

1950 version, and modified it once again in 1993 calling it the ‘Shewhart Cycle
of Learning and Improvement (PDSA-Cycle)’31 as an attempt to establish it as
a management tool distinct from the PDCA-Cycle as a mere quality control
tool.32 The PDSA-Cycle was then further developed by Thomas Nolan and
others to a basic framework for implementing changes that will lead to im-
provement.
Today, the Deming-Cycle with all its alterations is deeply ingrained in our
modern lives without our conscious awareness. Already well-known before to
quality experts, the PDCA-Cycle was introduced into the ISO 9001:2000 Qual-
ity System Standard, not as a requirement but as an underlying improvement
principle, and with the harmonising efforts of the International Organisation of 33
Standardisation (ISO) found its way into an entire eco-system of standards Fig. 4 Shewhart Cycle (1939)
concerned about environment, work safety, project management, risk manage-
ment, medical appliances, food safety and hygiene, all based on the principles
of the ISO 9000 standards. Worldwide, this basic quality management certifi-
cate is received by more than 1.1 million companies every year which practice,
knowingly or not, the Deming-Cycle.34, 35

The Quintessence of the Four Noble Truths

It is said that about 2500 years earlier when the Indian Siddhārtha Gautama had the realisation of the four encoun-
ters36 he abandoned his career and family life for the forest to seek in solitude a sustainable fix to the persistent un-
satisfactoriness of life, which troubled him even in the sheer comfort of his royal upbringing at the Śakyan37 court.
The plan, he was determined to put in practice led him follow several teachers of his time and made him practice,
mortifying try-and-error approaches so desperately that it brought him to the fringe of self-annihilation. Constantly
reflecting on the results of his venture,38 he took actions and amended his approach until to the very night he finally
attained full insight.39 Seven weeks later, according to tradition, the Buddha gave his first teaching to five earlier
companions called The Four Noble Truths (cattāri ariyasaccāni).40 They are:

1. The fact that the very nature of life is unsatisfactory or dukkha (dukkha ariyasacca);
2. The cause of the arising of this dukkha (dukkhasamudaya ariyasacca);
3. The cessation of this dukkha (dukkhaniroda ariyasacca);
4. The counter-measure(s) leading to the cessation of dukkha (dukkhanirodhagāmini-patipadā-ariyasacca).

As for the first truth, it is fundamental to understand that dukkha, often rendered as ‘suffering’, is not to be under-
stood as a hopelessly pessimistic, miserable, all happiness denying ‘suffering’.41 Rather it is from the final analysis

31
Plan – Do – Study – Act.
32
Meon, R. D., Norman, C. L.: “Circling Back - Cleaning Up Myths About the Deming Cycle and Seeing How It Keeps Evolv-
ing”, Quality Progress, November Edition (2010), p. 26.
33
Source: Moen, R., Norman, C.: “Evolution of the PDCA Cycle” (2009), p. 5.
34
Iso.org (2014). “The ISO Survey”, [online] Available at: http://www.iso.org/iso/iso-survey [Accessed 2 Nov. 2014].
35
On the benefit of the ISO 9001 to the economy compare: Scholar.lib.vt.edu (2014). JOTS v39n1 - A Review of the Impact of
ISO 9000 and ISO 14000 Certifications. [online] Available at: http://scholar.lib.vt.edu/ejournals/JOTS/v39/v39n1/aba.html [Ac-
cessed 2 Nov. 2014].
36
The four sights are (1) sickness, (2) old age, (3) death and (4) an ascetic. It should be noted that no account is given in the ear-
ly Palī Canon itself that the Gautama Buddha personally encountered the four sights as it is often described in its life tale. The
story derived from the Mahāpadāna Sutta (MN 26) where the Buddha is talking about prince Vipassī, one of the former Bud-
dhas, before his enlightenment. However, Gautama Buddha made the same realisation, which urged him to seek for liberation as
described in the Ariyapariyesanā Sutta (MN 26); also compare with Sukhumāla Sutta (AN 3.39).
37
The family clan, to which Siddhārtha belonged to, ruled an independent Śakya state, with capital Kapilavastu, in Iron Age
India at the foothills of the Himalayas.
38
Compare with Mahāsaccaka Sutta (MN 36).
39
“I directly knew as it actually is: ‘This is suffering’;…‘This is the origin of suffering’;…‘This is the cessation of suffer-
ing’;…‘This is the way leading to the cessation of suffering’”; Ibid.
40
The Dhammacakkappavattana Sutta (SN 56.11), “The Setting in Motion of the Wheel of Dharma”-Sutta,
41
If this were the case, it would contradict the Teaching of the Middle Way (The avoidance of extremes) and the Third Noble
Truth since this view would be an extreme and there would be no escape at all from dukkha. It should also be noted that in the
very first place the quest of the Buddha was to increase the happiness among mankind. E.g. compare Anaṇa Sutta (AN 4.62)
and Dighajānu Sutta (AN 8.54).

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 6

that any happiness in life,42 as far as we normally have access to it, does not qualify for absolute, lasting happiness
and so is always tainted, in one way or the other, with unsatisfactoriness. Dukkha is the cardinal disease (read: dis-
ease) of all living beings. Dukkha is further classified into three kinds:43 (1) ordinary (dukkha-dukkhaṃ),44 (2) due to
impermanence (anicca) or constant change (vipariṇāma-dukkha),45 (3) due to the conditioned nature of things
(sankhāra-dukkha).46 Ven. W. Rahula emphasises the latter as “the most important philosophical aspect of the First
Noble Truth, and it requires some analytical explanation of what we consider as a ‘being’ […]”.47 He calls for a
better understanding of what we really are leading us to the concept of The Five Aggregates (pañcakkhandhā)
which, however, to outline here is beyond the scope of this paper.48
The second truth identifies the cause and requisite condition of the arising of dukkha as being craving (taṇhā; lt.
(selfish) ‘thirst’).49, 50 Craving for what? 51 (1) We crave for sensual pleasures (kāma taṇhā),52 (2) for becoming or
being (bhava taṇhā)53 and (3) for non-being (vibhava taṇhā).54 Despite of knowing the origin of dukkha, part of this
truth also is that taṇhā itself is conditioned55 as well as the realisation that all dukkha we experience is caused by
factors within us.
The third truth is the good news. It assures us that dukkha can cease56 and that it will, when craving is eradicated.57
This truth is much more than just the reverse of the second truth. Firstly, it proofs the causal relationship between
dukkha and craving;58 secondly - latest at this stage - it triggers for further investigation,59 as we can do in medita-
tion, and establishes faith (saddhā)60.

42
This should not be understood as an absolute statement because of the Fourth Noble Truth.
43
Dukkhata Sutta (SN 45.165); do note that the classification is matching the Three Marks of Existence (tilakkhaṇa): (1) unsat-
isfactoriness (dukkha), (2) impermanence (anicca), (3) non-self (anatta).
44
such as illness, pain, sorrow etc.
45
Which is dukkha caused by the illusion that things remain constant; such as anxiety and frustration.
46
A subtle form of dukkha rooted in ego-clinging manifesting itself as a sense of dissatisfaction and constant lack of meeting our
expectations.
47
Rahula, W.: “What The Buddha Taught”, Grove Press (1974), p. 20.
48
In brief, according to the Five Aggregates (pañcakkhandhā) a living being comprises not more and not less than of (1) form or
‘body’ (rūpa) plus four mind (nāma) aggregates which are (2) feeling (vedanā), (3) perception (saññā), (4) mental formation
(sankhāra) and (5) consciousness (viññāna). All five are subject to the tilakkhaṇa (see [43]) and can be further discriminated
along the six senses (see [52]).
49
It is a common misconception the Buddha taught kamma to be the cause of dukkha keeping beings imprisoned in an endless
cycle of re-becoming (Saṃsāra). Kamma is the teaching of causality applied to the plane of morality (which is basically what is
conducive to bring about happiness for oneself and others). Buddhism teaches kamma as a natural force (and not any mechanism
of ‘moral justice’) in which motivated action - be it bodily, verbal or mental – as a form of energy brings about results which
correspond to the respective action. These kamma results (kamma vipaka) condition our existence (beside of other factors) for
the better or worse, sooner or later. Hence, a being that completely eradicated taṇhā would not be reborn despite of (past) kamma
present.
50
Here, craving should neither be understood as the ultimate first cause nor as the only cause as it is interdependent according to
the Doctrine of Dependent Origination (Paṭiccasamuppāda); also compare Taṇhā Sutta (AN 10.62).
51
Dhammacakkappavattana Sutta (SN 56.11).
52
Note that Buddhism considers six senses (eye, ear, nose, tongue, body (feeling, touch), mind (thoughts)). Consequently, there
are six kinds of sensual cravings (taṇhākāya): craving for sounds, craving for smells, etc.
53
The will to live, to be and to be someone, the urge to achieve something and to become more.
54
The will to escape dukkha altogether, not to be, the urge for (self-)destruction and illusionary escape from Saṃsāra through a
‘back door’.
55
See [50]; most notably ignorance (avijjā).
56
does not arise.
57
Hence, there is an ultimate state of extinguished craving (that is, Nibbāna).
58
If dukkha remained without taṇhā, it would violate the second truth and no causality could be established according to the
General Principle of the Doctrine of Dependent Origination (Paṭiccasamuppāda): “When this is, that is. With the arising of this,
that arises. When this is not, neither is that. With the cessation of this, that ceases.” (Assutavā Sutta (SN 12.61))
59
The third truth could be misunderstood the Buddha would preach us salvation like a saviour. However, one should pay close
attention to this passage of the Kalama Sutta (AN 3.65): “[D]on't go by reports, by legends, by traditions, by scripture, by logi-
cal conjecture, by reference, by analogies, by agreement through pondering views, by probability […]. When you know for your-
selves that, 'These qualities are unskilful; these qualities are blameworthy; […] these qualities, when adopted and carried out,
lead to harm and to suffering' — then you should abandon them.” To rightfully name it a truth, we must ultimately know it by
ourselves as true, that is, having wisdom about it, and not believe it to be true.
60
Compare with [59]; If we believe, we have blind faith which is to be abandoned. However, by investigating and understanding
trust and confidence will develop which is termed saddhā. Since our capacity to directly investigate the entire scope of what the
Buddha taught by ourselves is limited (take i.e. rebirth), we need trust that things will be all right once we reach the same capaci-
ty to investigate it by ourselves. Seung Sahn says: “Great faith […] is like a hen sitting on her eggs. She sits on them constantly,
caring for them and giving them warmth, so that they will hatch.” (Seung Sahn, Dropping Ashes on the Buddha, New York,
Grove Press, 1976).

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 7

The fourth truth is how to bring the cessation of craving about. Since it is so deeply rooted in us, there is no magi-
cal hot-fix. Instead, it takes a wholehearted approach to accomplish this. This Noble Eightfold Path (ariyo aṭṭhaṅgi-
ko maggo) is in itself a set of tools comprising eight trainings,61 which support and complement each other like
strands forming a rope. For our purpose, it is enough to remember that these eight strands can be grouped into three
trainings, that of (1) moral virtues (silā), (2) mental concentration (samādhi) and (3) wisdom (paññā).62

Comparison
As we have now gained some better understanding of the Deming-Cycle and the Four Noble Truths, let us now
compare and contrast both concepts based on their (1) structure, (2) construct and (3) aim:
Structure: At first glance, both models comprise of four steps but their content do not seem to match so easily
[Table 1].63 While step 1 is quite straight forward, step 2 already differs in that the Do-step is an action whereas the
Samudaya64-step is a result. Moreover, identifying the origin or root cause can be understood as part of the Plan-
step. The Niroda65-step seems to be even more ahead of the Check-step and so does step 4. However, we must note
that the Deming-Cycle is intended as a framework for a problem to be solved (→ action) whereas the Buddha pre-
sents the Four Noble Truths in the Dhammacakkappavattana Sutta as his findings (→ results). We further have to
take into account the scale of problem to be solved, which in the case of Siddhārtha Gautama was no other than to
solve the mystery of dissatisfaction of life. In that way we can render his ‘improvement plan’ as to pin down the
core problem (→ plan), carrying out a thorough investigation to isolate the origin that makes the problem arise (→
do), studying whether the abandonment of the origin is possible in order to eliminate the problem (→ check) and
cultivating the skills required to abandon the origin (→ act). In the Dhammacakkappavattana Sutta the Buddha also
describes three phases of (1) apprehending the truth, (2) knowing the task that needs to be done (as in Table 1, right
column) and (3) knowing the accomplishments of the task, he went through on every step. This could be interpreted
as a sub-improvement-cycle, which reminds us of the early three-phased Shewhart Cycle discussed above.

Step Deming Cycle Four Noble Truths

Plan: define the problem, design the Dukkha: Defines the problem;
1 “which is to be understood”
solution → disease
Do: carry out the plan, monitor and Samudaya: Identifies the origin;
2 “which is to be abandoned”
record. → diagnosis
Check / Study: analyse the results Niroda: Identifies the cure;
3 “which is to be realised”
and outcomes → treatment
Act: reflect on the findings and take Magga: defines the therapy;
4 “which is to be cultivated”
further measures → medicine
Table 1 Step-Comparison of Deming-Cycle and Four Noble Truths

Construct: Already Shewhart suggested that his steps should be seen as a cycle which profoundly shaped the idea
of the continuous improvement approach. Latest in Kaizen we find the concept of consistently solving smaller prob-
lems in repetitive cycles in favour of fewer, big ‘solutions’ [Figure 5].66 In contrast, we normally do not see the Four

61
The eight trainings of the path are (1) right (read: ideally, perfectly skillful) view or understanding (sammā diṭṭhi), (2) right
intention (sammā sankappa), (3) right speech (sammā vācā), (4) right action (sammā kammanta), (5) right livelihood (sammā
ājīva), (6) right effort (sammā vāyāma), (7) right mindfulness (sammā sati), (8) right concentration (sammā samādhi).
62
This scheme is sometimes visualised as a pyramid with silā as the foundation, hinting its importance for the training as its lack
will trouble the mind to attain deeper mental concentration, samādhi in the middle layer, as the analytical methods to transcend-
ent logic and reasoning, to develop paññā, which forms the top.
63
As we have seen in the introduction of the Deming-Cycle, the method itself underwent several amendments and reinterpreta-
tions to match a specific need: Be it a quality control problem in manufacturing or an improvement task at management level.
Even though the model has been renamed and reshaped several times to the extend of separating strains from each other, it
should deem fit for our purpose to harmonise these variations.
64
Samudaya [saŋ+udaya] rise, origin (Dsalsrv02.uchicago.edu (2014). The Pali Text Society's Pali-English dictionary. [online]
Available at: http://dsal.uchicago.edu/dictionaries/pali/ [Accessed 9 Nov. 2014]).
65
Nirodha […] oppression, suppression; destruction, cessation, annihilation (Ibid.).
66
The PDCA-Cycle is often envisioned as a cycle wheeled up a hill symbolising the level of perfection achieved.

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 8

Noble Truths presented as a circle but rather the fourth truth alone, the Noble Eightfold Path, in the form of the
Dhamma67 Wheel (dhammacakka) [Figure 6].
Also the very name of the Dhammacakkappavattana Sutta (“Dis-
course on the Turning of the Wheel of Law“) itself,69 mentions the
wheel. In fact, the wheel is a very popular symbol in Indian cul-
ture. In his book The Buddhist-Praying Wheel, William Simpson
pointed out its use as the symbol of power of the kings70 and
writes: “The Vedas and Upanishads being the oldest documents in
India [ …] show that the wheel was a familiar idea at least as far
back as 1500 B.C. that being the date generally accepted when the
Veda was compiled, the hymns having existed in an unedited con-
dition long before that.”71 He goes on that "[b]oth the Jains and the
Bauddhas [or Buddhists] borrowed the Dharmachakra from the
Brahmanas who mention it as the symbol of the 'undisputed reign Fig. 5 Continuous Improvements vs.
68
of the sacred law'".72 Solution Approach
To understand the focus on the fourth truth we find in the
Dhammacakkappavattana Sutta, right after The Buddha had pre-
sented his teaching: “Gratified, the group of five monks delighted
at his words. And while this explanation was being given, there
arose to Ven. Kondañña [profound understanding]: Whatever is
subject to origination is all subject to cessation. And when the
Blessed One had set the Wheel of Dhamma in motion, […]the
Blessed One exclaimed: "So you really know, Kondañña? So you
really know?" And that is how Ven. Kondañña acquired the name
Añña-Kondañña — Kondañña who knows.”74 Further in the
Sammādiṭṭhi Sutta we read that "[w]hen a noble disciple has thus
understood [the Four Noble Truths]... he here and now makes an
end of suffering. In that way too a noble disciple is one of right
view…and has arrived at this true Dhamma."75 From here we can
Fig. 6 The Dhamma Wheel at Jokhang
conclude that once the Four Noble Truths have been fully compre- 73
Temple, Lhasa (Tibet)
hended, the focus, in the sense of what method the Buddhist practi-
tioner should use to accomplish the goal himself, is on the Noble
Eightfold Path, and not so much on the first three truths anymore.
It therefore makes sense for the Buddhist practitioner to schema-
tise the former rather than the latter.
Does this finding mean the Four Noble Truths loose the function as a framework for improvement entirely in favour
of the Noble Eightfold Path? We can counter this question based on two arguments. First of all, we need to go by
context seeing the function of the Four Noble Truths as a kind of meta-framework. Once it is known, the Buddhist
practitioner will focus on the Noble Eightfold Path as the daily tasks to aim towards his goal. While undergoing this
training, the practitioner will experience roadblocks76 that will make him reflect onto what extend dukkha has less-
ened in him. He will also fall back into old mental patterns that make him experience dukkha again. Somehow, he is
back to where he started and ponders about dukkha again (the first truth). But having made progress to some extend

67
Often translated as ‘absolute truth’, ‘universal law’ (the meaning depends on context; for a full explanation also compare:
Dsalsrv02.uchicago.edu (2014): “The Pali Text Society's Pali-English dictionary”, [online] Available at:
http://dsal.uchicago.edu/dictionaries/pali/ [Accessed 9 Nov. 2014]).
68
Source: Stocker, G. (2012): “The PDCA Cycle: Is It Really That Simple?”, [online] Lessons in Lean. Available at:
http://leadingtransformation.wordpress.com/2012/01/22/the-pdca-cycle-is-it-really-that-simple/ [Accessed 6 Dec. 2014].
69
Prof. Rhys Davis notes that “the name given to it by the early Buddhists [means], as I have shown elsewhere, not 'the turning
of the wheel of law' as it has been usually rendered, but 'the inauguration, or foundation, of the Kingdom of Righteousness”.
(Davids, R.: “Buddhist Suttras”, Sacred Books of the East, Vol. xi, Oxford (1881), p.ix.).
70
Like it can be seen in the base of the Four-Lion-Capital of king Aśoka (3rd Century BCE). Since the 1950s, the capital is the
official emblem of India.
71
Simpson, W.: "The Buddhist Praying-Wheel", Macmillon, New York (1896), p. 75.
72
Ibid., p. 67.
73
Image courtesy of Johan Siolander.
74
Dhammacakkappavattana Sutta (SN 56.11).
75
Sammādiṭṭhi Sutta (MN 9).
76
Buddhism considers Ten Fetters (dasa saṃyojana) standing in the way of enlightenment: (1) personality belief (sakkāya
diṭṭhi), (2) sceptical doubt (vicikiccā), (3) adherence to wrongful rites, rituals and ceremonies (sīlabbata parāmāsa) (4) sensual
desire (kāma rāga), (5) ill-will (vyāpādo), (6) attachment to the bodily existence (rūpa rāga) and (7) formless existence (arūpa
rāga), (8) conceit (māna), (9) restlessness (uddhacca) and (10) ignorance (avijjā).

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 9

already, he gained a more elevated view and will realise the Noble Truths, one by one, on a deeper level, returning
again to the practice of the Noble Eightfold Path. In this way the Four Noble Truths can be seen as a meta-tool
forming a cycle.77
Secondly, the Four Noble Truths is frequently found in the Suttas to be used as a framework. To draw an example,
we find in the Sammādiṭṭhi Sutta, already mentioned above, a succession of explanations like this on ‘conscious-
ness’: "When, friends, a noble disciple understands consciousness, the origin of consciousness, the cessation of con-
sciousness, and the way leading to the cessation of consciousness, in that way […] has arrived at this true Dhamma
[=knowledge]. And what is consciousness, what is the origin of consciousness, what is the cessation of conscious-
ness, what is the way leading to the cessation of consciousness?” (Then the Buddha answers his rhetorical questions
one by one.)
Aim: From our earlier definition of the Deming-Cycle we can draw three main targets: (1) a continuous improve-
ment model, (2) a logical sequence of repetitive steps aiming towards (3) excellence. In the previous sections we
have covered the Four Noble Truths as ‘steps’ and as a ‘framework’ (model) already. To study in what way the Four
Noble Truths are ‘continuous’78, a ‘logical sequence’ and ‘repetitive’ we can go back once again to the ‘Turning of
the Wheel’ discourse. Earlier we saw the symbol of the wheel itself already suggest continuity and repetition: A
wheel turns another round once an imaginary point on its circumference described a 360 degree turn around the hub
arriving at the position it initially started. By doing so it counts mileage continuously until it either breaks or is
blocked by external events or the driving force is exhausted. Hence, while possessing qualities we are looking for,
not the model itself but external forces determine whether it turns continuously. We can call those in our context
management culture or discipline.79
The steps of the Deming-Cycle claim to be in logical sequence. A ‘logical (con-) sequence’ is a conclusion that
follows from one or more premises.80 Without diving deeply in the complex philosophical discipline of logic, it
should be sufficient for us to understand ‘logical sequence’ as a number of logical consequences in which each step
is an evident conclusion of the former. John Dewey, whom we met earlier, wrote: “A problem well put is half
solved.”81 And goes on that “[t]he way in which the problem is conceived decides what specific suggestions are
entertained and which are dismissed; what data are selected and which rejected; it is the criterion for relevancy and
irrelevancy of hypotheses and conceptual structures.”82 In this way the path to a solution unfolds with the deep in-
quiry into the problem; its outcome is the result of this solution and the further actions the trade-off of those results
and what remains of the initial problem. We can find an analogous conclusion for the Four Noble Truths as de-
scribed in the Gavampati Sutta: “Monks, one who sees suffering also sees the origin of suffering, also sees the ces-
sation of suffering, also sees the way leading to the cessation of suffering.”83 That is to say, if one truth is fully
comprehended the other truths reveal by themselves.84
Finally, it goes without saying that the Four Noble Truths evidently aim towards excellence since they have been
fully comprehended and revealed by a buddha, an ‘awakened one’ perfectly enlightened by even these truths. Such
person, as described in the Anuradha Sutta, is the Tathāgata, “the highest type of person, the supreme person, the
attainer of the supreme attainment”85 and knowing the Four Noble Truths directly, “reveal[s] it to monks, nuns,
male lay followers and female lay followers”86 “for the benefit of the many, for the happiness of the many, out of

77
It should be noted, however, that several Buddhist schools held different views whether or not the realisation of the Four Noble
Truths happens to the spiritual practitioner gradually or all at once.
78
In the quality context, ‘continuous’ is often contrasted with ‘continual’. Even though both describe a frequent succession of
events, the former emphasises on an uninterrupted sequence.
79
Apart from the given figurative explanation we can also argue that due to the very fact that Buddhism teaches khanikavada
(theory of momentariness) and aniccavada (theory of change), culminating in the Law of Continuity as a universal law, The Four
Noble Truths must posses the quality on continuity - in the sense of continuous change - in order not to disaccord with the entire
body of Buddhist philosophy.
80
Beall, J.C., Restall, G.: “Logical Consequence The Stanford Encyclopedia of Philosophy” (Fall 2009 Edition), [online] Availa-
ble at: http://plato.stanford.edu/archives/fall2009/entries/logical-consequence/ [Accessed 12 Nov. 2014].
81
Dewey, J.: "Logic the Theory of Inquiry:, Henry Holt and Company, New York (1938), p.108.
82
Ibid.
83
Gavampati Sutta (SN 56.30).
84
While in that way the Four Noble Truths as a model is a logical sequence, we should note that the true knowledge (Dhamma) it
is intended to bring about is itself beyond the sphere of logical reasoning. In the Ariyapariyesana Sutta (MN 26) we read:” This
Dhamma that I [the Buddha] have attained is deep, hard to see, hard to realize, peaceful, refined, beyond the scope of conjecture
[or logic], subtle, to-be-experienced by the wise. But this generation delights in attachment, is excited by attachment, enjoys
attachment. […]'.”
85
Anuradha Sutta (SN 22.86).
86
Nagara Sutta (SN 12.65).

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 10

sympathy for the world, for the welfare, benefit, and happiness of human[s …].”87

Conclusion
I have compared two models which field of application could hardly be further apart. The Deming-Cycle, with its
variations, an indispensable tool for today’s managers, and The Four Noble Truths, a core teaching of Buddhism. A
comparison, which to embark on might have appeared to the reader as grotesque in the beginning, since in our mod-
ern world spiritual teachings and business normally do not go well together. Yet we have seen that these models do
not appeal to each other merely because they both consist of four steps. We can find similarities in their sequence;88
they form a repetitive cycle or wheel with the nature of repeating the steps all over again towards a perfect goal
within the relevant value system: business excellence for the executive, Nibbāna for the Buddhist. Further, we have
seen that in both cases we can talk about a model or framework that can be used as a problem-solving tool.
Critics might counter-argue a lack of proof on a ‘real-world example’ as a problem solution tool in regards to the
Four Noble Truths, since, like with its other qualities also, promoting arguments have been drawn from Buddhist
scriptures alone. Those might not appeal much to the non-Buddhist reader questioning their historical authenticity
and authority. Instead of engaging into this discussion, it can at least be said that these Buddhist scriptures form the
core body of Buddhist philosophy which have been practised by the Buddhist community for over two millennia.
This comparison should also not be seen as the attempt of pressing a western model into an odd Buddhist mould as
such fusion cooking seems to be en vogue nowadays. On the contrary, it is my intention to unveil stunning similari-
ties between these two worlds and in that way, bring them closer to each other.
But the real value of both models is not to present findings in a scheme. The real value is to guide the user in the
problem-solving process so that he investigates the problem thoroughly without jumping into conclusions. The
practitioner is asked to work his way, step by step, towards the goal, not taking the next step before the former has
been comprehended to his full capacity, to reflect the outcome of his efforts against starting point and goal and to
follow on the path persistently. Good tools are in high demand and indispensable to us. However, as we can also see
from this comparison, the impotence of solving our most fundamental problems is often not due to a lack of me-
thodical skills. Therefore, managers should relax and trust in the tools they know and have practised instead of
blaming the tool, because a problem could not be solved yet. Nor should managers practise tools for the tool’s sake
or in devotion to its inventor.89 We can see that a tool might be ancient, yet it can still perform like a ‘modern tool’.
The Gautama Buddha did not ‘invent’ the Four Noble Truths’ but discovered a forgotten tool other buddhas had
discovered before him. As non-Buddhists we can still appreciate the findings of a great teacher.
Instead, managers - whether Buddhists or not - shall rather focus on the intentions behind the tools they are using.
We saw in the second of the Four Noble Truths that taṇhā, the selfish craving, brings about dukkha. Buddhism
teaches us that this selfish craving is in itself caused by the three Unwholesome Roots (akusalamūla) in us: selfish
attachment (greed), aversion and ignorance. We must reduce craving in order to lessen our sufferings and those
from others.
However, in today’s economy we find companies still predominately shareholder-conscious90 than stakeholder91-
conscious, value propositions are rather investor-centric than holistic and nourished by infatuated greed acting out
of control. Alan Greenspan, Chairman of the Federal Reserve of the United States from 1987 to 2006, wrote in his
analysis about the global financial crisis of 2008 that “[t]he global bubble was exacerbated by the heavy securitiza-
tion of American subprime and Alt-A mortgages92 that found willing buyers at home and abroad, many encouraged
by grossly inflated credit ratings. More than a decade of virtually unrivalled global prosperity, low inflation, and
low long-term interest rates reduced global risk aversion [= increased greed, craving] to historically unsustainable
levels.“93 Umesh Sharma has traced moral failure as shaping the financial crises and suggested that Buddhist Eco-
nomics, a term coined by E. F. Schumacher in 1955,94,95 can prevent its reoccurrence by concluding that “[t]he eth-

87
Āyusama-Osajjana Sutta (UD 6.1).
88
Considering the different point of view (solver vs. findings).
89
As a familiar saying goes: “To a man with a hammer, everything looks like a nail.”
90
Any legal person that owns a share in a company.
91
Any party that has an interest in an enterprise such as investors, employees, customers, suppliers, society etc.
92
Compare with http://en.wikipedia.org/wiki/Alt-A.
93
Alan Greenspan, “The Crisis”, Greenspan Associates LLC (2010), p. 47.
94
Lloyd Field writes: ”Buddhist economics, as articulated by Schumacher, is not an economic concept in the traditional sense,
but rather an idea […]. That there can […] be a notion of Buddhist economics follows from the Guiding Principle of Skilful
Livelihood, one of the lessons of the Buddha’s Fourth Noble Truth, the Noble Eightfold Path. This guiding Principle embodies
Causing No Harm – to sentient beings or to the environment – in its most inclusive sense. Because people must live, and live
skilfully, they must resolve their economic needs without causing suffering. The keynotes of Buddhist economics are simplicity,

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Application of Buddhist Teachings in Management with Focus on the Deming-Cycle 11

ics of management and economics provide the moral legitimacy which may restrain future financial crises. [Bud-
dhist Economics] provides an example of a possibility preferable alternative. [Its adoption] is not a question of
choosing between ‘modern growth’ and ‘traditional stagnation’. It is a question of finding the right path of devel-
opment, the middle way between materialist heedlessness and traditionalist immobility.”96
This paper might give more confidence in how managers can practice and learn from Buddhism. As long as the
manager is guided by skilful means and their motivation to improve their organisations is not driven by selfish lust,
aversion and delusion, making use of the Deming-Cycle is a very Buddhist way of problem solving. By implement-
ing these principles, dukkha within our organisations and among our stakeholders will lessen and might even deliver
a very unique value proposition to customers in the future.

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