Quality Maturity: From Ignoring Customers to Chasing Hidden Customers
Organizations exist because they have customers. Try living a day without a customer!
The job of a manager is to solve problems. Without problems there is no real work for the manager.
Where is the Customer?
In the first stage of an organization’s Quality Maturity Cycle (QMC) problems manifest themselves as fires in processes. Here, the job of a manager is to simply put the fire out. In other words, treat the symptom of the problem. The problem solving methodology deployed at this stage is that of Quality Control, where one maintains the standard. As a result, processes perform Faster / Better. But do they deliver what customers want?
FASTER | BETTER
Improve to Reduce Costs and Customer Dissatisfaction
In the second stage of the QMC, managers discover that certain fires persist in processes, in spite of having been treated with quality control. These problems are termed as being chronic; and have enormous wasteful costs associated with them, particularly when customers are dissatisfied. These wasteful costs are referred to as the Cost of Poor Quality (COPQ). The job of a manager is to find and treat the root causes of the recurring symptoms of problems. The problem solving methodology deployed at this stage is Quality Improvement, where one challenges the standard. As a result, processes perform Faster / Better / Cheaper. And customer complaints also reduce.
FASTER | BETTER | CHEAPER
Process Innovation for Customer Delight
By the third stage of the QMC, organizations discover that their sterling processes are being benchmarked, formally and informally. Their process performance of Faster / Better / Cheaper is no longer a differentiator in the market place. Problems manifest as shrinking market share and lost customers. Here, the job of a manger is to proactively listen to the Voice Of Customers and design agile and flexible processes. The problem solving methodology deployed at this stage is Quality Planning, where one sets the standard, to satisfy changing customer needs. Therefore, processes must perform Faster / Better / Cheaper / Different. In other words, we need Process Innovation that delivers outputs for customer delight.
FASTER | BETTER | CHEAPER | DIFFERENT
Sustainabilty – Focus on Hidden Customers
In the fourth stage of the QMC, excellence in organizational performance demands that the definition of customer be updated to include: external customers; internal customers; hidden customers; shareholders. Problems of hidden customers come to center stage; namely, problems of society and the silent planet. The job of a manager is to expand Quality Planning, Quality Control, and Quality Improvement to address the needs of the hidden customers. This overarching problem solving methodology is referred to as Sustainability. As a result, processes perform
FASTER | BETTER | CHEAPER | DIFFERENT | RESPONSIBLY
So what is a Project?
And yes, a Project is a Problem Scheduled for Solution.
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About Suresh Lulla
SURESH LULLA is the Founder & Managing Director of Qimpro Consultants Pvt Ltd. The company offers a range of services that include: Process Management, Quality Life Cycle Management, Business Excellence, Benchmarking of Best Practices, Professional Certifications for Quality & Reliability, and Recognition of Excellence in Individuals, Teams, & Organizations. Under Mr Lulla’s leadership, Qimpro has saved its clients well over Rs 175 billion in terms of cost of poor quality, as well as significantly improved customer satisfaction levels in the manufacturing, service, and healthcare sectors. Apart from India, Qimpro has conducted assignments in Singapore, Indonesia, Malaysia, Thailand, Viet Nam, Pakistan, Sultanate of Oman, Bahrain, Iran, and Kenya.
Click here to buy his new book: Quality Fables–now available on Amazon Kindle
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