Managing Quality Through Accountability Performance measurement and the Balanced Scorecard TQM failures Keys to success

Performance measurement and the Balanced Scorecard Using a scorecard a company can achieve superior performance if its leadership can effectively manage the trade-offs that arise among the four areas.

Performance measurement and the Balanced Scorecard

Customer perspective It measures business performance in those areas that matter most to them The aim is to try to see the organization through the eyes of the customers Ask such questions as: -What do our customers think of us? -What do they think of the job we are doing? -Can they trust us?

Pleasing customers: the centre of the quality inspired management culture

Quality Quality measures should reflect the customer’s point of view Appropriate measures can focus on: 1.Design issues 2.Service features 3.Consistency

Time This measure reflects how long it takes to deliver expected service It can also measure an organization’s responsiveness to changes in consumer requirements.

Flexibility and Dependability Flexibility- is the capability to handle a large variety of products, small batches and mass customization. Dependability- measures how well the organization delivers on its promises.

Customer loyalty This is one of the most important of the customer perspective measure  Disadvantages: 1.Data may be difficult to collect 2.Likely to be qualitative and subjective

Internal business perspective Measures organizational performance in the core competency areas. In order to achieve this organizations must ask questions such as: 1.What set us apart from our competitors 2.How do we cultivate customer loyalty?

Quality at the source Process Measures- include factors such as output quality, cycle times and yield, employee skills and productivity

Use of teams Teams are typically used to achieve incremental improvements. Teams can be more effective than individuals acting alone because they are self-policing and self-motivating

Internal business objectives These are derived from corporate strategy. Objective setting is a cascading process whereby each level sets objectives consistent with those of the immediate level above it.

Innovation and learning perspective This focuses on the organization’s ability to continuously improve Continuous Practice- a concept in which people with similar work interest focus on learning those things that have direct relevance to their jobs Learning counselors- individuals who provide guidance, furnish resources and facilitate learning.

Financial Perspective Takes a critical look at a firm’s financial performance by asking questions such as: 1.How do we look to our share holders and other investors? 2.Do our creditors consider us to be low risk?

2 - TQM Failures Major Causes of Failure  Flawed approach  Misguided  Failed implementation plan

Top Causes Leading to a breakdown in TQM implementation: Trying to partially implement TQM by selecting some, but not all, of the key TQM principles Being unable to change culture or generate truthful commitment and participation Lack of trust in the organization’s leadership

Failing to take a holistic approach of effectively integrating quality into existing management systems Failure to pay sufficient attention to organizational culture and organizational design Top Causes Leading to a breakdown in TQM implementation:

Some Common Myths Myth 1: Change can occur top down, and all employees will be willing participants Myth 2: Training and education can change individual and organizational attitudes and behaviours

Keys to success Critical Factors:  Implementation must be led and resourced from the top Key to Success Top Management commitment A clear and concise policy that focuses on the customer Creation of a culture committed to quality

A committed workforce Emphasis on consistent, relevant and application- based training Continuous improvement of processes Effective two-way communications Adequate rewards and recognition Keys to Success