Sunday, October 19, 2008

Build a strong business with a Total Quality Management System (Wired)

Build a strong business with a Total Quality Management System

The TQM or EFQM Quality Management System is based on two parts. Part one is concerned with your actions. In the article it is represented by the numbers 1 to 5. The second part is all about the results you get. It is in measuring the results keeping metrics and using them as a platform for learning and adjustments. Applying both parts in a continuous fashion, that will make your business a success. We at Arguna Consulting have been consulting lots of companies into and through this process. It had been allways a "winning game" for all sides. For more information see http://www.efqm.com/ or [1]. It does not matter, if you have a small business, a medium sized company or a big cooperation.

Total Quality Management System (TQM or EFQM) Part 1

1. Leadership
You need to develop a thriving vision, a touching mission and the values of your business and act as a model for a culture of excellence. This can mean that you contribute actively and personally to improvement-actions.

2. Business strategy and business politics
Business politics and business strategy should be based on the present and future needs and expectations of all relevant groups concerning the company. Plans or methods are created for the purpose of achieving a goal.

You can collect information and process it in order to define market and market-segments, in which the organization wants to operate today and in the future.

3. Staff - Your People
The staff is rewarded, acknowledged and taken care of. Manage the recruitment and the career-development wisely. This can mean to have an ongoing program for talent scouting in your business. Produce training and development plans in order to guarantee that the staff will meet the present and future qualification-requests.

4. Partnership
External partnerships and finances are managed systematically. Increase the partnership relationship structures in order to achieve an added net value for all people involved.
Only if an increase of value is attained for all partners, will the partnership be working in a good spirit.

5. Business processes
Products and services are produced, delivered and taken care of. Another value to your business is to entertain and deepen the customer-relationships. As a businessman, you must shape the processes in the organization including those key-processes that are necessary to realize company politics and your business strategy.

Total Quality Management System (TQM or EFQM) Part 2

6. Specific results concerning the customer
Here you are to plan, to analyze and to improve and, in order to predict, how external customers perceive the performance of your business, your company.
Metrics concerning your sale and customer service-performances should be:
- Advice and support; - Abilities and behavior of the co-workers; - technical support; - product-specific trainings; - Reaction time; - Guarantee and guarantee-regulations.

7. Results concerning employees
This occasion is about measuring results, which show, how the co-workers perceive, on the basis of surveys, interviews, focus-groups, structured judgment-conversations, the business.
You can measure factors of motivation like:

- Communication; - Career-development; - Participation; - Equal opportunity.

8. Society specific results
Statements about measures that contribute to the protection and lasting protecting of resources:
- Selection of transportations; - Effects on the ecology; - Reduction and avoidance of waste and package; - Substitution of raw material and other business-means.

9. Key-results
How does the business do - with reference to its planned performances?
Finances (Example):

- Total-capital-yield; - Maintenance costs; - Cash flow; - Balance-positions; - Deduction; - Personal capital-yield; - Net profit; - Budget-observance.

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