STRATEGIC QUALITY PLANNING
THROUGH QUALITY'S FIVE DIMENSIONS
by Richard E. Winder
Presented at: 40th Annual Minnesota Quality Conference
March 3, 1993
Copyright 1993 Richard E. Winder. All Rights Reserved
The Five Dimensions of Quality, coupled with the elements of leadership, provide an integrated structure for strategic quality planning and for assessment, implementation, and measurement of quality in an organization.
Significant developments in the past five years have uncovered new dimensions in quality, which provide a solid foundation for strategic planning and implementation. These developments include the movement from "customer satisfaction" to "delight the customer" as the standard for quality; the movement from "total quality management" to "total quality leadership"; and the movement from "quality function deployment" as a functional activity in the organization to "strategic quality planning" as a central function in the organization.
Each development has brought fuller use of quality's dimensions and greater concentricity to the quality function. Each brings quality closer to the central purpose of the organization, rather than keeping quality in its traditional role as a separate function which is deployed in the organization just as the marketing or manufacturing function is deployed. Quality has now become as essential to the marketing and finance functions as it is to the manufacturing and delivery functions. In fact, it is quality which has the power to blend and bind all the other functions in a common, integrated system.
Because of its integrative structure, strategic quality planning can now replace corporate strategic planning as the primary tool of strategic planning. It encompasses all the functions of strategic planning and in addition incorporates the voice of internal and external customers to build a framework to permit all customers to become "sustaining members" of the organization. Organizations which begin to use strategic quality planning as their primary planning tool will find themselves far better prepared to meet the demands of constantly changing markets as they find themselves in much better tune with customer needs and in a much better position to fulfill those needs.
To fully understand the new role of strategic quality planning, it is necessary to understand the dimensional nature of quality. Quality's five dimensions--experience, measurement, relationships, interconnectivity, and value sharing--provide a basis for understanding and defining quality. Furthermore, they provide the very structure for the strategic quality plan and provide a structural format for assessing, planning, and implementing quality in an organization.
In the five dimensional structure, quality is defined as the process of helping people and organizations move from a state of punishment, limitation, captivity, or victimization to a state of participation, liberation, captivation, and actualization. This is done through anticipating and fulfilling stated and implied needs. The quality process is effectuated by fulfilling all five dimensions, resulting in "customer delight."
THE FIVE DIMENSIONS OF QUALITY
Quality, in its highest state, exists in five distinct dimensions. These include (1) experience; (2) measurement; (3) relationships and systems thinking; (4) interconnectivity and paradigm logic; and (5) value sharing. The recent quality movement to "delight the customer" highlights the fifth dimension, value sharing. However, although value sharing provides the foundation for the integration of all other dimensions, it does not exist in a vacuum. "Customer delight" cannot exist or continue on a sustained basis without the utilization of the other four dimensions of quality. In fact, these dimensions are so integrated that they are holographic: each dimension reflects all the other dimensions. Since these dimensions provide the structure for the strategic quality plan, a basic understanding of them is essential.(1) The summary of these dimensions below, along with The Five Dimensions of Quality chart at the end of this paper, will provide the background for understanding the strategic quality plan.
1. The experiential dimension. In this single dimension things are actually done. "Vision becomes reality." Unless it is integrated with the other dimensions, it remains a string of incidents, such as a stream of consciousness story. However, when integrated with the other dimensions, it becomes the tool of actualization. Its power is that unless it is fulfilled, plans remain plans and are not put into action.
Experience provides the "footprint" of the system in place. By measuring and understanding that "footprint" we can evaluate whether the system is doing what is needed.
Experience also provides the learning needed for proper implementation of the continuous improvement cycle. It is the "Do" step of Deming's Plan-Do-Study-Act Cycle. If it is left out of the cycle, the learning which it provides never takes place. Some organizations kill innovative projects by studying them to death before the projects have a chance to prove their worth through actual implementation on a test basis (i.e., by ignoring the "Do" step of the experience dimension and moving directly to the "Study" stage).
The learning function of experience is also important in "on-the-job training." This "just-in-time" training is provided at the time and place it is needed for most effective learning. Since it is provided in the context of the job function, it has immediate application, increasing long-term retention of the training.
2. The measurement dimension. In this dimension, (two dimensions), we recognize not only that something was done, but also how well or how poorly it was done and its impact. This dimension provides us with knowledge of the system. It is knowledge of the system that builds trust in the system and facilitates "driving out fear" as everyone in the organization understands their role in the system.
The level of measurement is one indication of the level of the extent to which the organization understands and fulfills quality. The basic, first dimension level of measurement is inspection or detection. At the second dimension, performance is measured. Dr. Deming advises transcending beyond these levels of measurement ("Cease dependence on inspection"; "Avoid [performance] slogans such as 'zero defects'"; "Eliminate work standards"). It is third dimensional measurement (process measurement based on the system itself) that provides the ability to move beyond reliance on inspection to reliance on the system and then to make improvements to the system. By understanding and assessing underlying paradigms (fourth dimension measurements), an organization can begin to transcend beyond reliance on visible figures and can "remove barriers that rob people...of their right to pride of workmanship."(2) In addition, new developments in relational economic theory give us the power to measure the strength of relationships so that we can understand the extent to which the organization is "delighting its customers" (a fifth dimension measurement) and helping them become "sustaining members" of the organization.(3)
The measurement dimension is the "Study" stage of Deming's Plan-Do-Study-Act Cycle. It is measurement that gives us the ability to scientifically verify, after implementation on a limited or full basis, whether a proposed improvement should become a valuable part of the system.
3. The relationship and systems thinking dimension. This dimension (three dimensions) permits us to observe a correlation between activities and results of activities. It helps us see the interrelationship among people, plant and equipment, processes, policies and procedures, and environment. It permits us to standardize systems so that organizational learning is retained. It gives us the power to identify leverage points where action can be taken to generate improvements so that we can "improve constantly and forever the system of production and service...and thus constantly decrease costs."
This dimension also utilizes the power of interpersonal relationships to "build a long-term relationship of loyalty and trust" with suppliers so that we can avoid "awarding business on the basis of price tag." It permits us to "break down barriers between departments" internally within our organization so that the entire organization can function as an integrated system.
The relationship dimension is the "Act" stage of Dr. Deming's Plan-Do-Study-Act Cycle. It is systems thinking that permits us to standardize policies and procedures which have been implemented, which have been verified through measurement, and which are in alignment with the vision of the organization. This standardization helps the organization become "free of mortal risk" as the organizational learning is retained.
4. The interconnectivity dimension. This dimension is approached by looking at the same information through a new paradigm, a new set of eyes, a new set of rules, a new frame of reference. This new perception may be inconsistent with the traditional view, but the power of the paradigm shift is that it provides its own logic. Within that new logic, the new paradigm provides a perfectly valid means of understanding and interpreting the information. This provides a powerful foundation for innovation and change in an organization.
5. The value sharing dimension. This dimension is illustrated by the phrase, "If I give you something that has more value to you than it does to me, then together we are better off as a result of the trade." This dimension is expressed by "delight the customer" (give the customer more than he or she is paying for). This dimension has its foundation in relational economics, which provides the most efficient economic system. It is made operational through the leadership model.
Leadership incorporates all five dimensions. Effective use of all five dimensions through leadership can expedite corporate and cultural change to break down barriers and provide a complete foundation for continuous improvement efforts.
The leadership process is simple yet powerful. The leader develops a vision for the organization and shares it with the other participants. Then all participants engage in sharing vision, resources (human/time resources, information/knowledge resources, and financial/capital resources), and value. All of this is bound together by the vision and its logical implementation.
In the leadership model, leadership begins and ends with shared vision. Shared vision becomes the lifeblood of leadership. When vision fades, so does leadership. Vision is driven by the underlying paradigm of the participants, and as such, becomes the logic by which the activities of the participants are understood.
In the value sharing paradigm, the vision of an organization is a description of the common good that is derived from the relationship among its participants. Consequently, the vision cannot be fully defined until an understanding is reached as to who the participants are, since, in the quality process it is the satisfaction of the needs of these participants which drives the quality improvement process.
Vision is directed toward the needs of each and all participants. Vision is the node which binds the participants together. Consequently, in relational economics, if vision is not shared, it does not exist. If the vision does not address the needs of a participant, then the vision is not (and cannot be) shared by that participant.
Anything less than leadership does not have the power to fulfill all the dimensions of quality. For example, management by objective, decried by Dr. Deming, uses only three dimensions. It operates on an incentive system in which ideally the goals of the organization are tied to incentives for the employees. As the employees do the work necessary to achieve the incentive (in the achievement paradigm), the work of the corporation is accomplished. However, if the goals of the corporation change to respond to new market needs, it is very difficult to change the incentives. Yet unless they are changed, the employees continue to work toward the wrong objectives.
Worse yet is the tyranny or autocratic model, which exists only in the experience dimension. The autocrat has no sensitivity to the needs of others and imposes his or her will on them. This breeds the punishment paradigm ("get back" or "get even") or the apathy paradigm ("I'll put in my 40 hours a week, but do not ask me to do anything extra.").
As leadership is implemented, it becomes synonymous with quality. The primary function of quality is in meeting the needs of internal and external customers. Strategic quality planning is accomplished through the Quality Leadership Plan, through which an organization identifies the participants and the vision, identifies which participants will provide what resources, and identifies how the value will be shared among participants.
STRATEGIC QUALITY PLANNING
The strategic plan of an organization does not exist in a vacuum. Rather it exists in relation to the entire environment in which the organization exists. If the strategic plan is to be useful and effective, it must reflect the dynamics of that environment.
The traditional strategic plan has a linear rather than a dynamic orientation. It breaks down the organization and its environment into components, makes assumptions about each of those components, and then tries to integrate those pieces. As Dr. Deming notes, this departmentalization is ineffective unless each of the components is integrated with all the others without departmentalization. The departmentalization leads to sub-optimization. It is only when each component understands and believes in its role in the entire system that true integration is achieved. The whole is a dimension of its own.(4)
Since the strategic quality plan must describe the environment and the dynamics of the entire system rather than focus on its components, it is important to understand what that environment is and how and why it is different from the traditional environment. The difference between the strategic quality plan and the traditional strategic plan is that the strategic quality plan focuses on cultivating the environment in which the components can freely operate and grow, while the traditional strategic plan focuses on the components and their growth. This is an extremely subtle difference but it has major implications. In a computer sales organization it has produced their best year yet on fewer sales than the two previous years.
What, then, is the environment for the organization's strategic quality plan? The quality planning environment simply reflects the five dimensions of quality. Its power comes from the manner in which those dimensions are portrayed. The most effective portrayal begins with the highest dimension (value sharing, or "delight the customer") as the foundation or environment in which all the other dimensions flourish, then follows Dr. Deming's Plan-Do-Study-Act Cycle for implementation of the other dimensions. This five-step process is as follows: (1) cultivate a consecration culture in which "delight the customer" becomes the driving force; (2) plan the paradigm (the Plan stage); (3) employ experience (the Do stage); (4) manage measurement (the Study stage); and (5) reinforce relationships (the Act stage).
1. Cultivate a Consecration Culture (the Environment). Joel A. Barker says that the quality paradigm is essential to excel in the 1990's, but by the turn of the century will be a necessary condition for even being in business.(5) This is a natural consequence of firm after firm turning its focus to "delighting the customer." This value sharing paradigm is the only paradigm which has the power to build and sustain long-term relationships with customers so that they become "sustaining members" of the organization. As more and more firms adopt the value sharing paradigm, firms which are content with mere "customer satisfaction" will find their support base deteriorating as customers move their loyalty to firms whose total focus is toward not just satisfying, but delighting, their external and internal customers.
A consecration culture is one in which value sharing is the central paradigm. In quality terms, value sharing is expressed in the phrase "delight the customer," or "give the customer more than he or she is paying for," or "consecrate resources to the customer." In relational economic terms, value sharing is expressed as follows: "If I give you something that has more value to you than it does to me, then together we are better off as a result of the trade. If it is worth $10 to you but $3 to me then after the trade we are worth $10 rather than $3, even if I do not receive anything in exchange."
The consecration culture is illustrated by the health care system in Rochester, New York. With the 1992 election year focus on health-care costs, Rochester has been praised for having more comprehensive health care for its residents at a cost of about one-third less than the national average. It is able to do this because the insurance ratings are done on a community base rather than a stratified company base. The major employer, Eastman Kodak, is well aware that it is actually paying more through the community-based rating than it would pay with a company-based rating, but it is willing to pay the extra (and thus consecrate resources to sustaining the system) because it recognizes that the system would break down without its participation.(6)
Value sharing is the ultimate expression of relational economic theory, which is described as follows: Where there is a relationship, a buyer will pay more and a seller will accept less. This expands the trading range, and increases the likelihood that a trade will take place. But more importantly, the trade takes on a new dimension. The trade begins to flow from the relationship, rather than the relationship existing merely because of the trade. Price becomes a less important consideration, and is adjusted to reflect the needs of the participants. Long-term relationships provide a continuous stream of income as customers become "sustaining members" of the organization. The focus turns from "selling to the customer" to "fulfilling customer needs." The resource base is expanded through more open sharing of human, information, and capital resources among all participants, both customers and suppliers.
Value sharing is exemplified by Direct Tire Sales in Watertown, Massachusetts. Direct Tire spends an extra $172,000 a year hiring and maintaining an experienced work force at 15% to 25% over average wage scale. It expended $24,000 on state-of-the-art diagnostic equipment and $48,000 in a computer system to support its experienced workforce in serving its customers. It maintains a fleet of loaner cars at a cost of $4,800 each per year so that customers are not held captive while repairs are being made. It maintains an inventory of 20% higher than normal, particularly in specialty tires, so it can provide immediate service to its customers. This consecration of resources by Direct Tire is reciprocated by its customers, who pay an average of 10% to 12% more for tire products at Direct Tire than they would at Direct Tire's competitors. Furthermore, 75% of Direct Tire's customers are repeat customers. All this translates into profit margins after taxes of twice the industry average, and virtually no turnover among employees (compared to an industry average of around 100% turnover per year).(7)
There are four conditions necessary for a consecration culture: First, there must be a relationship among the participants such that there is value in sharing value. Second, there must be a level of trust among the participants such that each can depend on the other participants not to abuse or take advantage of the relationship. Third, all participants must engage in mutual consecration of resources such that value sharing is reciprocated. Fourth, there must be no hoarding of resources by any of the participants.
The value of the value sharing paradigm is that as the needs of the participants (the "customers") are anticipated and fulfilled, resources are allocated most efficiently and most equitably because they are placed where they are needed when they are needed, resulting in optimization of value. Long-term relationships are enhanced as the trading flows from the relationship rather than the relationship existing merely because of the trade. Through the resulting long-term relationships, customers become "sustaining members" of the organization, providing a constant stream of income to support the organization.
The consecration culture is driven by vision, which, in the value sharing paradigm is defined as a description of the common good among participants. Thus, vision is directed to the needs of the participants rather than the greed of the organization. For example, Direct Tire's vision is directed to "developing and sharing its expertise in wheel care in a clean, professional environment," as opposed "making a lot of money" or "beating out its competitors." When the organization's culture is driven by the value sharing paradigm, the higher return on its investment is a natural result of its focus on customers.
In the consecration culture, participants are empowered to do what needs to be done rather than being limited to doing what the system restricts them to doing. For example, employees of Direct Tire are permitted to reduce a customer bill without supervisor approval if service was not as expected. In this environment, mistakes are tolerated (though not condoned) because the value of the information about the mistake is greater to the organization than it is to the individual because of the learning it can provide to the organization in preventing similar mistakes in the future. (If the organization punishes mistakes, then the organization has made the information about the mistakes of more value to the participant than the organization.) Because of the broadened trading range, the consecration culture creates an environment in which the participants are flexible enough to redefine their relationship (such as the price of product) as their needs change. For example, the customer of a chemical company voluntarily agreed to pay more for the chemical when the price of one of the key components went up dramatically the day after the long-term contract for the chemical was signed.
2. Plan the Paradigm (the Plan step). Paradigm logic is becoming one of the most powerful tools of strategic planning and cultural change. While a new paradigm may be inconsistent with the traditional view, it provides its own logic. It provides a perfectly valid means for understanding and interpreting behavior. The power of the paradigm stems from the fact that it drives behavior, rather than being driven by behavior. Behavior which appears inconsistent with one paradigm may be fully compatible with another paradigm. Since the paradigm is the source of logic for the behavior, a paradigm which is consistent with the vision of the organization has great power to drive the actualization of that vision.
One firm changed its bereavement policy (which had required extensive documentation to take a three-day leave) to a simple policy (which permitted bereavement leave upon approval of the supervisor) when it assessed that it could trust 95% of its employees to not abuse the policy. This movement from a non-trust paradigm to a trust paradigm resulted in a significant increase in the use of bereavement leave, but a 47% decrease in the number of days actually taken.(8) Thus, by shifting the paradigm the firm was able to accomplish a serendipitous change in behavior. If the firm had simply asked employees to reduce their use of bereavement leave, the firm would have would have only strengthened the "distrust" paradigm. Employees would have felt victimized by the firm's attempt to take something away from them. Through the shift in paradigms, the employees actually felt that they were receiving a new benefit rather than giving up a benefit.
Another firm's move to a responsibility paradigm resulted in less time taken by employees at break time. The firm eliminated the buzzer signaling the beginning and end of the break when there was confusion about what the buzzer meant (should the employees leave the break room or be back at their position when the buzzer sounded?). Had the owner simply requested employees to take a shorter break time, the "irresponsible" paradigm would have been emphasized, and the attempt at behavioral change would have been resisted by employees. As it was, they felt they were receiving a benefit.
There is a universal paradigm associated with each dimensional level. In a one-dimensional world the punishment and apathy paradigms prevail (with focus on "getting back" or "getting even" or "why bother?"). As participants add measurement to experience (two dimensions) they begin to look around at what others are doing, and the competition paradigm emerges ("get ahead of them"). As participants employ three dimensions and begin to understand the power of the system, the focus turns toward the achievement paradigm ("get ahead"). In the fourth dimension, participants begin to understand that "what goes around comes around," and engage in developing partnerships for mutual growth. It is in the fifth dimension, where parties are willing to dedicate resources to assist other participants that the value sharing paradigm emerges, providing the basis for quality's highest fulfillment: "Delight the Customer."
Strategic planning is most effective when it involves planning the paradigm rather than planning the behavior. If the principle paradigm of the organization is not understood and planned, it will seek an equilibrium level of its own. However, equilibrium will take place around the lower dimensional levels. For example, an organization that refuses to "break down barriers between departments" as advocated by Dr. Deming suffers from competition among its various departments as each department hoards its resources, even though those resources may be more valuable to other departments. Consequently, sub-optimization results, and the competition paradigm is reinforced, and if left unbridled, can even lead to punishment or apathy between departments. Similarly, the achievement paradigm can lead to competition among participants as each seeks allocation of scarce resources (e.g., customer base or capital resources) to achieve its goals.
As noted above, quality is driven by the value sharing paradigm. Unless this becomes the principle paradigm of the organization, the organization will lack the capacity to achieve the dedication of its participants that is necessary to sustain the organization over the long term.
3. Employ Experience (the Do step). Experience is the only dimension through which actualization of the vision is achieved. It is experience that builds the frame of reference of participants and increases the firm's ability to respond to the needs of customers. The attorney who has had experience in handling a particular type of case is, in general, better able to serve clients with similar cases than attorneys without experience in that type of case. Direct Tire Sales employs people with experience because they are less likely to make mistakes, thus reducing the cost of serving the customer.
Experience is also employed through utilization of the "Do" step of Deming's Plan-Do-Study-Act cycle. By actually implementing the proposed improvement on a test or full scale basis, the firm gains knowledge that it would not obtain through attempting to logically deduce the results without actually implementing. This is because the success of the project may be explained by a new paradigm that would appear illogical under the existing paradigm. The success of the project and the new underlying paradigm would not be discovered without actually implementing the project.
4. Manage Measurement (the Study step). In some organizations, measurement is mismanaged, producing results inconsistent with the true needs of the organization. For example, the computer consulting firm that began measuring "quality" by the number of lines its computer programs wrote in a day were actually encouraging longer, more memory consumptive programs which were actually inconsistent with the needs of their customers. Similarly measurement of performance, with the implication that the participant has control over the performance when 85% of the control belongs to the system and not the participants, can lead to sub-optimization inconsistent with the needs of the firm. Some organizations waste their time measuring everything and, as a consequence, create an environment in which measurement is not taken seriously, or worse yet, encourage behavior inconsistent with the true vision of the organization.
Although they are more difficult to obtain, measurements of the higher dimensions of quality provide better information for strategic quality planning. For example, process control measures (third-dimension measurements) are far more effective at reducing defects and improving quality than inspection of the completed product (a first-dimension detection method). Measurements of paradigms can provide significant leverage for shifting corporate culture, as illustrated by the bereavement policy example. In contrast, measurement and control of behavior can actually be counter productive.
Value sharing is measured through measurements of the strength of relationships. There are three measures of the strength of relationships: first, the level of consecration; second, the level of repeat business; and third, the level of referral business. The level of consecration is measured by the degree to which the participants are willing to pay more to this organization than they are willing to pay to a competitor. For example, Direct Tire customers are willing to pay 10% to 12% more for similar products because of the service Direct Tire provides. The level of repeat business is an indication of the extent to which customers have become "sustaining members" of the organization. The level of referral business reflects the extent to which the customer has truly become a participant in sharing the vision of the organization by seeking other participants to contribute resources to (and to share value with) the organization.
5. Reinforce Relationships (the Act step). Since it is long-term relationships that provide the sustaining lifeblood of the organization, those relationships need to be constantly nourished and reinforced. These relationships are built and strengthened through the firm's willingness to share value with its internal and external participants.
Another type of relationship which must be reinforced is the delivery method or system which is developed for serving internal and external customers. There is a direct relationship between a successful process and "customer delight." This relationship is reinforced by standardizing the process and making it part of the system. Full application of the Act stage of Deming's Plan-Do-Check-Act cycle does not take place until any improvements generated through the Plan and Do portion of the cycle are verified through measurement and are made a part of the system. All the innovation in the world will be meaningless if the firm does not have the ability to see how the innovation fits into the system and the ability to incorporate the change into the system. It is this standardization step which assist the organization in retaining its learning, which would otherwise be lost upon the death or termination of the employees who developed the improved processes. It is through this standardization that the organization becomes "free of mortal risk."
Another relationship that must be understood and reinforced is the relationship of the organization in its socioeconomic environment. The firm that understands the dynamics of its environment and its own role in those dynamics can more effectively use those dynamics for its benefit. The firm which does not understand the dynamics or its role will be "tossed to and fro" by those system dynamics.
THE STRATEGIC QUALITY PLAN
The first step in constructing a strategic quality plan is to assess the existing dimensions of quality in the organization. This assessment can then be used as a foundation for planning.
The Quality Assessment simply identifies the characteristics of each of the Five Dimensions of Quality in the organization. The following checklist can be used for this assessment.
a. How does the organization translate vision into reality?
b. How does the organization utilize experience?
2. Measurement. What does the organization measure and how?
a. Inspection/Detection measurements.
b. Performance measurements.
c. Process control and measurements of Relationships.
d. Paradigm measurement.
e. Value Sharing measurements (consecration, repeat, referral).
3. Relationships and Systems.
a. What systems does the organization have in place?
b. How does the organization build long-term relationships with customers and employees?
4. Interconnectivity and Paradigm Logic. What is the principle paradigm under which the organization operates and what does the organization do to support that paradigm?
5. Value Sharing.
a. What does the organization offer that has more value to the customer than it does to the organization?
b. What evidence is there of mutual consecration of resources and social capital reserves (to what extent do participants pay or provide more than expected)?
c. To what extent have customers and employees become "sustaining members" of the organization (providing repeat business or continuing services, or recommending referral business)?
The format for the Strategic Quality Plan utilizes the elements of the leadership model and the Five Dimensions of Quality to describe the existing environment and the future state of the organization and the means the organization will use to achieve that future state.
THE QUALITY LEADERSHIP PLAN
VISION. What is the common good among the organization and its participants? (What does the organization have that has greater value to other participants than it does to the organization? How can the organization use this to help other participants move to a state of liberation, freedom, actualization, and participation? How will the organization cultivate the consecration culture with a focus on "delighting the customer"?)
LEADERSHIP AND PARTICIPANTS. Who leads in formulating and sharing the vision? Who are the participants? What are the principal paradigms and how can those paradigms be used to reinforce the value sharing paradigm? What experience base is provided by the leadership and the participants and what will be done to expand that experience base?
RESOURCES. What human, information, and capital resources are needed to accomplish the vision, and who will provide them?
SHARING OF RESOURCES. What evidence is there that participants are mutually consecrating resources to the fulfillment of the vision? How will the organization cultivate an environment in which its participants continue to be "sustaining members."
STANDARDIZATION OF PROCESSES (SYSTEMS).
a. What are the system dynamics of the socioeconomic environment in which the organization exists (the industry and the geographic market)? How can the organization utilize those dynamics?
b. What are the systems and subsystems in place within the organization to implement the vision? What other systems are needed?
MEASUREMENT. What is currently being measured to assure implementation is properly taking place? What else should be measured and how? How and when should the organization use inspection or detection measurements; performance measurements; process control or measurements of relationships; paradigm measurement; or value sharing measurement?
By assessing its utilization of experience, measurement, systems and relationships, paradigm logic, and value sharing, the organization can gain a clear understanding of its level of quality development. Then it can use this understanding to assess and formulate its vision, to identify and involve its participants, and to create an environment (supported by its experience, measurement, and systems) in which its total focus is directed toward delighting internal and external customers.
1. A detailed discussion of each of these dimensions is included in Winder, Richard E., "The Five Dimensions of Quality," Quality and Productivity Conference Transcripts 1992, Kitchener Ontario, November 17-18, 1992; and Winder, Richard E., "Fulfilling Quality's Five Dimensions," 47th Annual Quality Congress Transactions, May 24-26, 1993.
2. References from Dr. Deming's Fourteen Points and Seven Deadly Sins are from Deming, W. Edwards, Out of the Crisis, Massachusetts Institute for Technology, Center for Advanced Engineering Study, 1986, Chapters 2 and 3.
3. See Robison, Lindon J., "Deductive Implications of Social Distance Models," Appendix B, in Richard E. Winder, Lindon J. Robison, and Daniel K. Judd, Value Sharing: A Foundation for Value Building, (Haslett, Michigan: Leadership Press), 1991.
4. Michael Beck of GM Powertrain illustrates this by cutting up a Nerf ball into pieces representing each department (e.g., finance, manufacturing, marketing, or quality) and then asks each department to improve itself. The true function of the nerf ball is destroyed when it is broken down into pieces.
5. Barker, Joel A., Future Edge.
6. CNN News, October 26, 1992.
7. Brown, Paul B., "The Real Cost of Customer Service," Inc., September, 1990, pages 49-60.
8. Scholtes, Peter R., "Teamwork in the Quality Era," televised broadcast on April 14, 1992 in cooperation with the U. S. Chamber of Commerce, George Washington University, and GW National Satellite Network.
Barker, Joel A., Future Edge, New York: William Morrow and Company, Inc., 1992.
Brown, Paul B., "The Real Cost of Customer Service," Inc., September, 1990, pages 49-60.
Deming, W. Edwards, Out of the Crisis, Cambridge, Mass.: Massachusetts Institute for Technology, Center for Advanced Engineering Study, 1986.
Judd, Daniel K., "Agentive Theory as Therapy: An Outcome Study," Dissertation, Brigham Young University, 1987.
Robison, Lindon J., "Deductive Implications of Social Distance Models," Appendix B, Richard E. Winder, Lindon J. Robison, and Daniel K. Judd, Value Sharing: A Foundation for Value Building, Haslett, Michigan: Leadership Press, 1991.
Robison, Lindon J. and A. Allan Schmid, "Interpersonal Relationships and Preferences: Evidences and Implications, Handbook of Behavioral Economics, Vol. 2, Roger Frantz and Harinder Singh, eds., J.A.I. Press, 1989.
Scholtes, Peter R., "Teamwork in the Quality Era," televised broadcast on April 14, 1992 in cooperation with the U. S. Chamber of Commerce, George Washington University, and GW National Satellite Network.
Senge, Peter M., The Fifth Discipline, New York: Doubleday/Currency, 1990.
Winder, Richard E., Lindon J. Robison, and Daniel K. Judd, The Quality Leadership Plan, Leadership Press, 1991.