Economic Development and Continuous Improvement
October 31, 2025
Communities are increasingly realizing that a strong local economy cannot be taken for granted, but rather requires a concerted effort by citizenry to constantly renew the economic base and supporting infrastructure. This constancy aligns well with the kaizen philosophy of continuous improvement. W. Edwards Deming, the renowned business theorist, economist, statistician and management consultant, posited the pursuit and benefits of continuous improvement via the initiation of a chain reaction.
Deming’s Chain Reaction in a business context is primarily applicable to products and services. In applying Deming’s Chain Reaction to communities, the principle of continuous quality improvement is adapted from a business model to a framework for achieving civic wellbeing. While a successful business organization continuously seeks to improve products, services and quality of work life, a successful community works through its representative government to continuously improve its processes, services and quality of life for its citizens. In both cases, this leads to a cascade of benefits, from reduced costs in public services to improved quality of life for residents.
Deming developed the chain reaction to illustrate how improving quality creates a virtuous cycle of growth and prosperity:
1. Improve Quality: Reduce waste, defects and rework.
2. Costs Decrease: With fewer errors and less rework, operational costs go down.
3. Productivity Improves: Better use of time and resources increases output.
4. Capture the Market: Better quality at a lower price attracts more customers.
5. Stay in Business: Increased market share ensures long-term survival and stability.
6. Provide Jobs and More Jobs: Growth and success lead to more direct, indirect, and induced employment opportunities.
The corollaries as they relate to civic improvements and economic development are apparent and useful. The core principle of the chain reaction is maintained, but the progression can be reimagined for a community where the “customer” is the citizen, “market share” is the broadening of community trust and satisfaction and “improved quality” is applicable to various components of community and economic development, particularly investments in improving infrastructure and amenities.
A useful description of quality improvement via an economic development chain reaction is the continuous identification, assessment, attraction, alignment, enhancement, integration and deployment of assets and infrastructure within a given region in a manner that creates, retains and reinvests wealth to the betterment of its citizens.
Note the reference to infrastructure. Undergirding any vibrant economy and all economic development efforts is the development and maintenance of infrastructure. A survey of our region reveals glaringly that infrastructure plays a distinct role in achieving the decades long economic development success we have experienced. Economic development is a competitive process, and the aforementioned success requires constant renewal of the multimodal infrastructure that supports and enhances the mobility of citizens, freight and workforce, and the integration with community amenities that contribute to enhanced societal wellbeing.
Over time, while not immediately visible, the qualitative and quantitative return on investment or ROI of these elements is substantial. It is important to understand these investments not as discrete projects, but as integrated, systemic efforts to build, maintain and support the physical infrastructure and public services that enable citizens to participate more in an inclusive economy.
Citizens play a critical role in supporting municipal investments that positively impact their communities. By putting capital to work thoughtfully, we can continue this virtuous cycle of growth and prosperity.