Citation: Business Horizons, May-June 1993 v36 n3 p11(4) --------------------------------------------------------------------------- Title: How to stop talking about, and begin progress toward, total quality management. Authors: Mears, Peter --------------------------------------------------------------------------- Subjects: Total quality management_Planning Quality circles_Management Reference #: A13183231 =========================================================================== Abstract: TQM is a continuous, long-term improvement in quality that leads to customer satisfaction. The steps in implementing a TQM system include involving all employees in the process of meeting customer needs and establishing a quality council to address ideas. =========================================================================== Full Text COPYRIGHT Foundation for the School of Business at Indiana Univer 1993 How many quality programs has your firm tried in the past ten years? Do any of the programs in Figure 1 sound familiar? If you have undertaken and subsequently abandoned two or more of these programs, it's time you got a handle on the quality issue. Stop approaching the quality problem with a passionate longing: attack the problem head-on by installing a total quality management (TQM) system in your firm. TQM has a universal appeal because it is an ongoing, long-term system to achieve customer satisfaction by continuously improving the quality of a firm's goods and services. Perhaps the most important point to consider when implementing total quality management is to avoid creating the impression that "Here comes another program." To prevent this from occurring, you need a two-step approach. First, involve all departments in the process of identifying customer needs. Then create a quality council to provide a structure for quality improvements. THE EMPLOYEE AS A CUSTOMER Examples of poor customer service are all too common. Rather than rehashing traditional problems in achieving customer satisfaction, perhaps the problem is that it is simply easy to forget the importance of satisfaction when handling everyday problems. Training programs can undoubtedly help fill this void, but you need an ongoing system to reinforce the training. You can reinforce the importance of providing quality services by involving the entire firm in the process. This is accomplished by expanding the definition of a customer to include internal as well as external users of services. Employees are internal customers of support departments, yet few support departments systematically attempt to identify their user needs. Customer satisfaction is something management preaches but doesn't practice. The functions performed by support departments frequently remove them from direct external customer interaction. This situation in itself is not bad, but many support groups compound the problem by isolating themselves through procedures that require administrative approval before processing user requests. For example, if facilities should be updated to improve customer services, numerous, lengthy justifications will be required to satisfy payback periods and ROI criteria. The requesting department has to furnish the data-- not the support department, which assumes the historical role of "evaluating" the request. All these hurdles take their toll by slowing down the process of adapting to meet customer needs. The point is not that requests for funds shouldn't be reviewed; rather, support departments must move from being reactive to becoming active in the drive to improve quality. Support groups should develop an understanding of customer needs so that recommendations come from them, not to them. In addition, support departments should systematically survey their users and subsequently modify services as needed. Although this sounds simple, it rarely occurs in practice. Frequently one is left with the impression that support departments are not really concerned about providing high-quality services. For example, when was the last time: * the accounting department surveyed users to determine if its reports were useful? * facilities management asked if their janitorial services met expectations? * inventory control asked if their service was prompt? * the computer department asked if their instruction manuals were easily understood? A positive environment for quality improvement is created when all departments adapt their services to meet customer needs. However, as Figure 2 illustrates, various departments interact differently with their external and internal customers, so a multitude of methods will be needed to identify customer needs. Consumer-oriented departments such as sales and customer services have a high frequency of external customer interaction. A friendly, positive attitude coupled with a smile can go a long way toward enhancing a customer's satisfaction with the product or service. Short surveys can help fine-tune the process. Support departments, such as shipping, interact with external customers and internal departments such as inventory control, accounting, and sales. In addition to using surveys to identify areas for possible improvements, "coffee breaks" or luncheons with internal users can be used to open up lines of communication. Hybrid departments (accounting, transportation) have a more complex quality mission. Sections within these departments, such as billing, "react" to external customers in that they respond to a problem brought to them. Surveys tend to measure the efficiency with which the department provides the desired information, and the degree to which the customer is satisfied with the services. Hybrid departments need to act by categorizing problems and modifying services to prevent the problem from initially emerging. Pure internal departments (legal, auditing) seldom interact with external consumers, devoting most of their attention to internal interactions. The role of such departments is often to develop policies for other departments to follow. For example, the legal department may advise human resources on hiring and promotion procedures. Consequently, the information flow tends to be filtered before it reaches internal departments. Because of this "filtering," some of the potential impact of the information may be lost. Instead of relying on other departments for information regarding policies, internal departments should make every effort to open up lines of communication with all users to obtain information firsthand. The appropriate departments can identify specific customer segments for surveys and focus groups that can provide feedback regarding the appropriateness of policies. An example of such an organization is shown in Figure 3. CREATING A STRUCTURE FOR QUALITY IMPROVEMENT A new employee comes to work enthused, wanting to make a contribution and frequently offering suggestions. Although some ideas may lack practicality, a refusal given with a logical explanation is part of the learning process and is not viewed negatively. The problem occurs when a good suggestion is placed on the "back burner" because its implementation would cut across functional lines. In other words, "It is a good idea but it is too much trouble to install it." Employees soon recognize that life is easier if they simply keep quiet and just do their jobs. This presents a hidden problem whenever top management stresses the importance of quality. Many employees feel they have tried to make improvements but the system restricts their efforts. Motivational speeches accomplish little, if anything. What is needed is an ongoing process to focus a firm's quality efforts. A quality council should be established to place worthwhile suggestions on an authoritative agenda, coordinate cross-functional teams, oversee schedules, and provide a continuous mechanism to reinforce the need for high quality. The council should be composed of key management people and chaired by a powerful vice president who is also a member of the executive committee. Reporting relationships for the quality council are shown in Figure 4. Many CEOs are aware that a quality council alone cannot bring about the attitude changes necessary to sustain continuous quality improvements. Top management support is definitely needed. Although there is nothing wrong with the CEO personally chairing the quality council, practicality suggests that there is a limit on the CEO's time. Therefore, the council should be chaired by a senior VP, and the CEO's time should be used for reinforcement and recognition programs after the council becomes operational. Quality council planning guidelines are shown in Figure 5. A multiphase implementation is suggested because of the large, complex task facing the council. Allow at least six months to get started and make management aware of fundamental TQM concepts. Keep all employees informed about the nature of TQM and what is happening in the firm. In Phase II, department managers will have to implement TQM concepts. This is a critical phase of the process, because without middle management support, TQM is doomed to failure. Therefore, all managers should participate in improvement projects to gain firsthand experience. In Phase III, select a test department for implementation. Employees in the test department should be trained in TQM concepts, and self-empowered teams should be formed. A good beginning point for employee teams is to define what constitutes high quality. This is undoubtedly difficult to do, but improvements in quality can occur only if the process is understood. Remember, "service with a smile" often helps achieve customer satisfaction. Topics such as how a customer should be greeted and the importance of eye contact, a friendly smile, and referring to the customer by name should be discussed. During this time, the council should refine its procedures and develop skills in working with employee groups. As such, the council is changing from a planning role into an interactive role, as shown in Figure 6. Ultimately the quality council may want to consider monthly quality awards for outstanding achievements. If this is the case, then award winners should sit on the council, perhaps on a two-month rotational basis. two-step approach is needed to install total quality management. First, involve all departments in the process of identifying and adapting to customer needs. Then install a quality council to add a focus to your improvement efforts. The council should develop empowered task teams, coordinate task groups, and develop mechanisms for reinforcing the importance of high quality. Once this is accomplished, you will have begun the process of continuous quality improvement. Peter Meats is a professor of management at the College of Business and Public Administration, University of Louisville, Louisville, Kentucky. ===========================================================================