5.09a Describe crucial elements of a quality culture Creating A Quality Culture • Creating a quality culture within your business is not as difficult as it may seem but it can require a shift in thinking. • Quality can no longer be defined by international standards or statistical measures of defects alone. – Today quality is defined by the customer and delighting the customer must be the focus of a quality culture. • Traditionally quality has been defined by statistical measures of error rates and quality improvement has been focused on reducing variation in linear processes and eliminating errors in production. – These measures of quality have been imposed from the top down with little input from front line staff. • Producing a perfect product according to internal standards however does not guarantee the product will meet customer expectations of quality. Creating A Quality Culture • Any cultural change requires engagement and ownership by all levels of staff within an organization. – When the customer perspective is made central to the definition of quality it makes sense to use front line staff to be the architects of a quality culture. • It is the front line staff in your business who have the most frequent contact with your customers. – They engage on a personal level and obtain information that cannot be gained from impersonal surveys. – They have intimate knowledge of what is required to meet and exceed customer expectations. • Often front line staff are resistant to change. – This resistance is not because they want to keep the status quo but because they have been through multiple change programs, driven from the top that had little impact and fewer results. • Taking a practical approach that involves staff and recognizes the value of their knowledge will engage staff more quickly than a business wide conceptual launch of a new change program. Steps to introducing a quality culture. • Step 1: Set up discussion groups of front line staff with the specific purpose of identifying the three most common complaints by customers from a front line perspective. • Step 2: Conduct workshops with front line staff to precisely define the problems and create solutions. Prepare action plans to present to management for approval to proceed. It is important that the decision is made at the close of the workshop so action to implement can take place immediately. • Step 3: Empower front line staff by delegating the necessary authority for them to implement the solutions. Action plans require clear responsibilities, accountable drivers, identified sponsors and an implementation deadline within three months. • Step 4: Encourage regular discussions about current customer dissatisfaction • and provide permission for front line staff to take action. This tactical approach allows staff to take control over improving quality for the customer. They will see and receive credit for the improvements and rather than being an intangible concept, improving quality will become embedded as a way of doing business. Identify ways in which quality can affect a business. • An organization’s commitment to quality culture more often than not is reflected in the quality of service over the quality of product. A clear-cut free replacement policy, an excellent and timely after sales service support during warranty period, professional competence displayed in politely and efficiently delivering the service – all these reflect the quality culture exiting in the organization. • Business houses can develop these qualities by making their policies simple and transparent and by excellent training of the staff towards the mission. Moral commitment to satisfy the customer rather than the legal correctness should be the guiding principle in case of disputes. == • • • • • Creating quality culture in money matters == Not encouraging bribery, not entering in to shady business deals, not intentionally cutting quality in order to cut losses or to increase margins, promptness in paying employees and sub-contractors, not engaging in unfair trade practices to thwart competition or to escape taxation etc are some of the principled practices that businesses should follow to ensure quality culture in money matters. == Creating quality culture in relationships == A business house should have commendable quality culture when it comes to relationship with the management and staff, with the sub-contractors and suppliers, customers and any other stakeholders with the organization. A good quality culture in relationship with suppliers can be ensured by transparent policies, by paying proportionately for the quality of supplies and not by squeezing the suppliers’ profit margins adamantly. Cut-throat behavior should be avoided in the dealings with all stake holders. Relationships should be aimed to last long with each other for the well being of both the Identify ways in which quality can affect a business. • • • • • • • • • • • Cheap prices may sell in the short run, but it is quality that sustains a business in the long run. Commitment to quality is a culture to be consciously developed, nurtured and constantly watched, if a business organization wants long term success. The quality culture should be natural like water flow, as it should percolate from the top down to bottom. Unless the top echelons in management have a demonstrable commitment to quality, the same cannot be expected to run in the lower rungs of the organization. The quality culture in the organization needs to be created broadly under four categories, if the business organization wants all round health and excellence in performance. They are 1) quality in products 2) quality in services (3) quality in financial dealings and 4) quality in relationships. == Creating quality culture in products == Quality has a price and business organizations must first of all have a clear perception about the level of quality of their products which they want to commit at the given prices. When the price is comparatively high, the quality expectation from the customer is also proportionately high. Making huge profits by projecting a product as a “premium” but not delivering a commensurate quality, is in reality, an indication of lack of quality culture. To correctly define the quality level and then assiduously sticking to that quality is assured by ISO Quality accreditation. Organizations can get a “systematic” approach to quality through such procedures. A good quality culture is not totally ensured by such procedures, but at least, the “systems” are established and to that extent they are desirable. The true quality culture comes when the norms are exceeded; when the systems are not merely implemented as a mundane paper work; when such systems are never allowed to be tampered with, through dubious means. == Creating quality culture in service == An organization’s commitment to quality culture more often than not is reflected in the quality of service over the quality of product. A clear-cut free replacement policy, an excellent and timely after sales service support during warranty period, professional competence displayed in politely and efficiently delivering the service – all these reflect the quality culture exiting in the organization. Business houses can develop these qualities by making their policies simple and transparent and by excellent training of the staff towards the mission. Moral commitment to satisfy the customer rather than the legal correctness should be the guiding principle in case of disputes. == Creating quality culture in money matters == Not encouraging bribery, not entering in to shady business deals, not intentionally cutting quality in order to cut losses or to increase margins, promptness in paying employees and sub-contractors, not engaging in unfair trade practices to thwart competition or to escape taxation etc are some of the principled practices that businesses should follow to ensure quality culture in money matters. == Creating quality culture in relationships == Explain reasons that businesses focus on quality strategies • Cheap prices may sell in the short run, but it is quality that sustains a business in the long run. • Commitment to quality is a culture to be consciously developed, nurtured and constantly watched, if a business organization wants long term success. • The quality culture should be natural like water flow, as it should percolate from the top down to bottom. Unless the top echelons in management have a demonstrable commitment to quality, the same cannot be expected to run in the lower rungs of the organization. • The quality culture in the organization needs to be created broadly under four categories, if the business organization wants all round health and excellence in performance. They are – – – – 1) quality in products 2) quality in services 3) quality in financial dealings and 4) quality in relationships Explain considerations in developing a quality culture • involving everyone • breaking down barriers among employees and management • eliminating numerical quotas • instituting training • developing leadership • recognizing employees’ contributions to quality • communicating the quality policy/message, etc. Discuss the importance of top management commitment in a quality culture • A business house should have commendable quality culture when it comes to relationship with the management and staff, with the subcontractors and suppliers, customers and any other stakeholders with the organization. • To sum up, the quality culture in an organization can be developed only through a total moral commitment to quality by the top management. – Through transparent policies, education, training and visibly practicing what is preached, the quality culture has to be nurtured in the organization on a continuous basis. Describe the role of suppliers in a quality culture. • A good quality culture in relationship with suppliers can be ensured by transparent policies, by paying proportionately for the quality of supplies and not by squeezing the suppliers’ profit margins adamantly. – Cut-throat behavior should be avoided in the dealings with all stake holders. – Relationships should be aimed to last long with each other for the well being of both the parties. • To sum up, the quality culture in an organization can be developed only through a total moral commitment to quality by the top management. Through transparent policies, education, training and visibly practicing what is preached, the quality culture has to be nurtured in the organization on a continuous basis. Discuss the role of the customer in a quality culture. Discuss barriers to the adoption of a quality focus.