CHAPTER 1
Quality: Foundation of Success
Principles of Total Quality Management
For the past ninety years successful organizations have subscribed to some or all of the principles espoused in Total Quality Management (TQM). Most of these organizations have been for profit and many in the manufacturing sector. Indeed, it was for these organizations and within them that the theories were devised and in which they have been best and most often practiced.
Over the past twenty five years the base of the world's economy changed from the predominance of the manufacturing sector to the service sector. Many areas of the world have seen the disappearance of manufacturing firms in favor of technology companies and the growth of service industries, such as, hospitality, entertainment, education, retail, health and social services.
At the same time traditional nonprofits (501)(c)(3) have struggled for survival, and some have not prevailed. We read and hear monthly of symphonies that have either reduced their offerings or folded. Museums have reduced staff, programming and visiting hours. Arts organizations have competed for new audiences; some sacrificing their mission to "win the battle". Social service agencies have competed for diminishing government, corporate and philanthropic resources. Nonprofit boards and staff in attempts to address the situation have hired consultants, merged with other organizations, and downsized; all in the name of survival.
This book is written as an attempt to address the very real challenges facing the (501)(c)(3) nonprofit organizations. It posits that the principles of total quality management, which were designed for the manufacturing sector of the last century, have relevance and significance for the nonprofit today. It further takes the position that the solutions to many of the contemporary challenges nonprofits face can be found in the tenets and practices of total quality management.
At the outset it is appropriate to summarize the operational principles that drive a total quality management approach.
First and foremost, the preeminence of a focus on the customer/client and her/his needs is essential to an organization's quality performance. All systems are designed to meet and exceed these needs and to make it easy and pleasurable for the customer/client to approach the organization and to benefit from its services and offerings. Ken Blanchard (2007) in his work, Leading at a Higher Level, refers to this as an organization's "relentless focus on customer service." It is the main objective of a quality organization to engage the customer/client in a long term positive relationship. Some management theorists have actually said that the goal of a quality organization is to create "delighted customers".
Some within non-profit organizations resist this total customer focus because they believe that in order for the organization to accomplish this customer focus the organization has to subscribe to the adage: "the customer is always right." Especially in education and health care this concept is looked upon with suspicion, because the service deliverers believe they have knowledge or skills that the customer/client lacks. This indeed may be the case, but the principle of a customer/client focus doesn't imply that the knowledge and skills don't exist or that they are to be put aside, but rather that in their delivery the recipient of the service or offering is treated as valued, important and ultimately "delighted".
Customer focus informs all of the other principles and practices; hence, is essential. It often requires a systemic restructuring to ensure that all facets of the organization are equally committed to the customer/client orientation and the quality delivery of the organization's services and offerings.
The second principle governing a quality organization is the concept of continuous improvement. Simply put, an organization that commits to quality management can never be satisfied that what service it offers and how the service is delivered is perfect, and therefore not in need of any improvement. Often this aspect is frustrated by a chorus of "we've always done it this way". Rather, today's success is but preamble to tomorrow's new or improved service or its revised or improved delivery. This function should not be relegated to a particular department to oversee, but rather be ingrained in the corporate culture, for while there are technical aspects to the process; it is an attitudinal characteristic.
In addition to the attitudinal support of the organization's associates and leadership, continuous improvement requires systemic support in terms of developing, implementing, and monitoring a process driven by the customer focus.
The same customer focus that benefits the external user applies, as well, to the internal customers: the associates and organization's leadership. In such an environment, information flows openly and regularly with a goal of rendering the associates as engaged employees. It is only by such practices that the common development of a culture of quality caring in the delivery of services can exist. With the exception of personnel matters, there are no compelling reasons why all other information cannot be shared with everyone in the organization, thereby creating an engaged partnership to develop and sustain the process of continuous improvement.
The cultural aspects of continuous improvement drive the quality process, but the improvement process needs to be equally supported and directed by a consistent assessment of the services delivered and a sharing of the data with the associates. Based upon these data, decisions can be made to change either delivery systems or the services delivered.
Change is a constant in an organization truly committed to continuous improvement. Not everyone is comfortable in such an environment, but if the connection to customer satisfaction is made and those associates most engaged in the development and delivery of services are involved in the process, change can actually be a liberating and enhancing experience for the associates and the harbinger of the organization's quality performance and its ultimate success.
Organizations committed to the principles of customer satisfaction and continuous improvement support these goals structurally by the development of operational teams. Ideally, these teams should be interdisciplinary or cross functional. Membership on cross functional teams is determined...
