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TQM Implementation in
Pakistan: Revolutionary vs.
Evolutionary approach
by
ABSTRACT
Intense global competition and diminishing trade barriers are making it more and
more difficult for companies to maintain their market share. To survive in such a
competitive environment a business must maximize total value that it delivers to the
customer while minimizing the real costs. To achieve this difficult task a successful
business needs to foster a culture where each and every member of the organization is
continually striving to delight the customer while minimizing wastage of resources. This
customer-focused culture, which also emphasizes continuous improvement, is called
Total Quality Management (TQM). Different approaches to developing this culture is
the main focus of this paper.
A very comprehensive definition of TQM has been given in the Report of the Total
Quality Leadership Steering Committee and Working Councils. This definition was
developed through a consensus of the Chairmen/ CEOs of 9 major U.S. corporations,
deans and professors of major universities, and eminent consultants in TQM methods
and principles, The definition is as follows:
“Total Quality (TQ) is a people – focused management system that aims at continual
increase of customer satisfaction at continually lower real cost. TQ is a total system
approach (not a separate area or program), and an integral part of high level strategy; it
works horizontally across functions and departments, involves all employees, top to
bottom, and extends backwards and forward to include the supply chain and the
customer chain. TQ stresses learning and adaptation to continual change as keys to
organizational success.
The foundation of Total quality is philosophical - a belief system. TQ includes
systems, methods and tool. The systems permit change; the philosophy stays the
same. TQ is anchored in values that stress the dignity of the individual and the power of
community action.”
TQM is neither solely a ‘Management System’ nor does it entail only using specific
‘Management Tools’. TQM is about developing a culture based upon the ‘philosophy’ of
absolute customer focus. The ‘systems’ and ‘tools’ are for the purpose of supporting
and reinforcing the philosophy within the organizational culture.
• TQM Philosophy
• TQM Systems & Tools
The core of the TQM philosophy is ‘absolute customer focus’. Beliefs of ‘employee
empowerment, involvement and ownership’, ‘continuous improvement’ and ‘the use of
systematic management’ help the organization achieve continual increase of customer
satisfaction at a continually lower real cost.
EMPLOYEE
EMPOWERNMENTI
NVOLVEMENT AND
DEVELOPMENT
ABSOLUTE
CUSTOMER
FOCUS
USE OF
CONTINUOUS SYSTMATIC
IMIMPROVEMENT APPROACH TO
IMPROVEMENT MANAGEMENT
Figure one graphically describes the individual components of the TQM philosophy
and their inter-relationships, which are further, discussed in subsequent sections.
A TQ organization strongly believes that its most valuable assets are its
people and aggressively seeks to achieve sustainable competitive
advantage through them.
The goals and vision of the organization are in absolute harmony with the
personal goals and visions of its employees. Everyone is fully committed to
delight their customers both internal and external. There is a strong feeling
of common destiny. Open communication exists at all levels and there are
no social barriers between management and workers at any level. Most
importantly, there is complete absence of fear.
The tasks required to be completed by each individual are clearly defined
and the employees are appropriately trained to successfully complete them.
Everybody is conscious of their contribution to the process of delighting
customers, both external and internal, and is fully motivated to do it better
every time. The individual is also fully empowered to use his mind to create
better value for the customer.
Systems and tools systematically inculcate and reinforce the TQ culture within an
organization. The philosophy initiates from top management but all levels of employees
need to develop commitment and ownership to sustain it. Much coaching, modeling and
reinforcement is required to achieve it. These tools may relate to teamwork, leadership,
human resources, process management, or collecting customer focus information, to
name just a few. It is not necessary that all the tools will be relevant for everybody.
Some tools may be very effective for one organization where as they may completely
fail in another. It is also possible that a tool may work for a while and then loose its
effectiveness. Therefore tools are replaceable and at time interchangeable period, but
the core philosophy of TQM never changes and always remains the same. Typically
when one tool looses its effectiveness another tool is selected to support and reinforce
the TQM philosophy. Therefore failure of a tool should not be interpreted as a failure of
TQM initiative but rather it’s a signal to use another tool.
Dobbs, (1994) reported that the top management support, strategic planning,
employee participation, and communication are essential to implement TQM in local
government and other public organizations.
Cameron and Quinn (1999) reported that TQM implementation was dependent on
quality being embedded in and reflected by the culture of the organization. Unless the
organization culture is congruent with the quality initiative, positive outcome were less
likely.
Kane (1992) reported TQM implementation in a software house. The TQM initiative
started with a shared vision of the company’s future and continued with coordinated,
top-down design of business process that was capable of achieving desired results. It
led to continuous improvement effort that focused every associate and every work
activity on fulfilling the vision, and culminated in an organizational culture where quality
improvement was the business strategy and the management system.
Shea and Gobeli, (1995) concluded after analyzing the TQM implementation
experiences in ten small businesses, that TQM principles, procedures, and tools that
work for large organizations could be effective in small ones as well. After all, customer
orientation, employee involvement, and continuous improvement are not new
management concepts. Processes in a small business can be less complex and more
informal, so a structured approach to problem solving is not equally applicable or may
need adjustments. The owners and mangers led the way by using multiple sources to
understand TQM principles and how to apply them.
Kordupleski, et all (1993) reported that too often, quality initiatives fail to improve
quality because they concentrate on internal processes, which do not affect the
customer. They suggest that one way to avoid this problem would be to organize the
collection of customer satisfaction measures around the managerial process
themselves. This form a natural bridge from the customer to management and allows
management to track the impact of quality improvements all the way from internal
process measures to overall customer satisfaction and market share.
Hines (1998) reported the six phased procedure for implementation of TQM in a
manufacturing company. These six phases were (1). Initial TQM training, (2). First pilot
SPC programs. (3) Expansion of pilot programs (4) First TQM team (5) Expansion of the
TQM team concept (6) Creation of Quality council.
Eitan Naveh & Miriam Erez’s (1998) study lead to the conclusion that the
implementation of a quality initiative that involved; tools and measures; CEO’s vision;
and quality goals at the individual, team, and organizational levels proved to be the
most effective. Both performance quality and employee satisfaction and commitment
significantly improved.
Jick (1992) proposes the famous ten commandments for implementing change in an
organization which are given in Table one.
Industry # Of companies
Textiles 1
Engineering goods 2
Consumer products 1
Pharmaceutical 1
Automotive 1
All successful TQM initiatives come from the chief executive officer (CEO). The
CEOs get interested in TQM usually in one of the two ways: either they were asked by
their head office to start a TQM initiative (as in the case of most multinationals), or, they
were driven by the customer demands and market setbacks to start the TQM initiative
(as in the case of local companies). In the words of one CEO what made them start
TQM initiatives was “Due to the deteriorating quality of our products, some customers
had started to look for other buyers and the major customer of the company were
threatening to withdraw orders.”
Even though the original push for TQM in multinational organizations usually came
from the head office but success still required the full belief in the TQM philosophy and
complete ownership of the TQM initiative by the local CEO. Multinationals where the
local CEO did not believe in TQM philosophy or and or did not own the TQM initiative,
usually ended up in failure.
There were generally two approaches used by the successful Pakistani companies
in implementing TQM, first approach could be described as an revolutionary approach
where the whole organization collectively jumps into the change process at the
beginning, the process taken by these organizations is given in table two.
1. CEO commitment
2. Gaining top management commitment and training
3. Developing implementation team and structures
4. Mass initiatives to involve everybody in the organization in the
change process
Mass communication and discussion on common vision
4.2) Mass training
4.3) Large team initiatives
5. Elimination of old culture
Removal of barriers between hierarchy
Opening of two way communications at all levels
Removal of fears
Demonstration of shared destiny by action
6. Reinforcement of new culture
Development of systems to enhance value for the customer
Systematic training to enhance capability
Increasing empowerment and involvement by employees
Frequent recognition activities and rewards for achievements
7. Constant search for improvement
1. CEO commitment.
2. Gaining top management commitment and training
3. Implementing components of Total Quality culture in a small section of
the organization
4. Expanding the Total Quality implementation to other sections after the
first attempt has proven successful.
5. Individual Total Quality tools applied sequentially in a step by step
fashion
6. Training only on need bases
7. Total Quality culture not dominant in the beginning but slowly gains
credibility.
8. With the persistent commitment of CEO, TQM culture becomes
dominant while the old culture slowly fades away
Table five gives the break down of the approaches followed by the companies
studied:
Approaches # Of companies
Revolutionary 3
Evolutionary 2
Started with revolutionary and end up 1
with evolutionary
This process starts with the commitment of CEO. Once the CEO is fully
committed, then he involves the top management and seeks their commitment.
If all the top management is on board and ready to actively support the TQM
initiative then the enabling structure are developed, resources are allocated
a quality support organization is established, and a quality champion is
hired. Quality champion and his team’s primary responsibilities are to
support, guide, and motivate the people through the change process, but
the primary responsibility of active leadership for the change initiative still
lies with CEO.
The mass introduction to the TQM initiatives starts with the speech from
CEO, where he introduces the TQM philosophy and emphasizes the need
for customer focus culture in the organization. This usually is a very
emotional affair. Therefore two typical responses to the CEO’s speech,
some of the employees will be motivated and willing to change, whereas
others would be skeptical about the sustainability of top management
commitment towards initiatives. This would also depend upon how many
failed starts has the organization taken in the past. To ensure the
momentum several steps are taken immediately after the mass introduction,
this includes initiatives to introduce and inculcate ownership of the
corporate vision by all of the employees, introduction of the TQM philosophy
and, few of the basic tools for its implementation. Some team initiatives are
also introduced at this time to develop ownership by the employees.
One company started a weekly town hall meetings where the employees
could discuss the corporate vision and TQM implementation with the senior
managers. Another company started formal preaching sessions where the
corporate vision, core values and TQM philosophy was indoctrinated.
Most of the companies had all their employees go through three to five days
of basic training in TQM philosophy and tools by outside consultants. All the
companies stated some forms of team initiatives, these included, quality
circles, and kaizen, 5S, or cross-functional teams.
While the above mentioned activities are going on, major initiatives are also
taken to eliminate the old culture. Traditionally these companies had lot of
hierarchical and departmental barriers that had to be removed. Cross-
functional teams were used to remove the functional barriers and several
joint activities between different levels of management hierarchy helped
remove the hierarchical barriers. The separate dinning and bathrooms
facilities for managers were some of the first barriers to be removed from all
the companies. Joint activities like sports were also started.
All the companies also started some form of suggestion schemes. The
major determining factor of the success of these schemes was a quick and
fair response to the suggestion.
The most common sources of fear in these organizations were job security
and unknown appraisal and promotion system, in order to remove this fear
most of CEO’s guaranteed that no body will be fired due to the
improvements from the TQM initiatives. These companies also developed
an open and transparent appraisal and promotion system.
In all interactions with the employees, top and senior management always
emphasized the common vision and the shared destiny. The companies
started sharing the detailed profit and loss information with their employees
and some of the companies also set up a transparent profit sharing
mechanism which everybody could see for themselves.
Frequent recognition activities were held at all levels and super achievers
were publicly recognized and awards were given. Usually the rewards on
quality achievements were primarily symbolic. Some companies did give
monitory awards for suggestions, but they usually worked well in the
beginning but their effect deteriorated later. Although rewards based on
increased productivity did work well in the TQM culture but the productivity
needed to be defined by accepting only the output which met the quality
standards, therefore non-standard output was not considered at all.
The first step for the evolutionary process of TQM implementation is the
same as that for the revolutionary approach i.e., commitment and ownership
of the CEO for the TQM initiative. Although this does not necessarily have
to be a very strong commitment. Next step is also similar to the
revolutionary approach where a workshop is organized to get the top
management commitment for the TQM initiative. In the evolutionary
approach, it is not necessary to have the commitment from all top
management, the process can continue with some of the top management
not fully committed to the TQM initiative.
After the first stage has shown some positive results, the TQM
implementation is expanded to few others sections, and new tools may be
added to initiative. The basic premise being that success of one area will
bring about the commitment of those who were not convinced of the
benefits of TQM culture in the beginning. The evolutionary process moves
very slowly but it requires the strong, consistent and visible support from the
CEO to survive.
One of the companies which started with the revolutionary approach was
later forced to convert it into an evolutionary approach because they were
unable to gain the support of their directors and were unable to let them go
for a variety of reasons. Another company also abandoned the
revolutionary approach where one of the key regional executive refused to
support the TQM initiatives.
If this process is not managed carefully the chance of its failure increases
significantly, as the people in the top management who did agree with TQM
initiative get a chance to sabotage it, thereby proving the correctiveness of
the initial view that TQM would not work in their company. There is also a
danger of CEO’s focus being diverted to some other initiative and CEO
support for TQM may disappear which will ensure the failure of the TQM
implementation.
This chapter covers several misunderstandings that are prevalent about the TQM
and its applicability in a Pakistani environment. It also presents a set of do’s and don’ts
that needs to be considered when implementing TQM in Pakistan.
TQM starts with a philosophical base-systems and tools are relevant after the
philosophy is established. Most of the TQM efforts fail because organizations try to
implement TQM techniques (Tools and Systems) without adopting the TQM philosophy.
They start the journey from the wrong point (Fig.3). Instead of starting with the
philosophy they try to first use the tools and the systems without ensuring that at the
very minimum, the philosophy is absorbed by the top management. The correct way to
implement TQM within an organization is to start with a firm belief in and commitment to
the philosophy of TQ by the top management. Then, development of systems to
inculcate this philosophy at all levels of the organization initiated. During this process
specific tools can be utilized to delight the customer.
WRONG RIGHT
MANAGEMENT SYSTEMS
AND TOOLSMANAGEMENT
PHILOSOPHY
In most cases, deficiencies of TQM systems and tools are mistaken to be that of the
philosophy. It is not necessary that a tool which works for one organization will also
work for another. The size, the organizational structure, the processes, motivational
variables and a host of other endogenous and exogenous variables give a company a
particular character. The duration and manner by which the TQ culture is embedded in
the organization will thus vary from company to company. There is no one size fits-all
framework.
A study carried out by Earnest and Young in 1993 suggested gradual transformation
and adoption of the TQ culture to be the best approach. It suggested that ‘low
performing companies’ should concentrate on the development of their people,
customer interaction, process improvement, and cost reduction instead of trying to do
too much too soon. ‘Medium performing companies’ were advised to focus on vendor
quality, employee training, cycle time analysis, and process simplification. Complex
practices such as benchmarking and employee empowerment were only beneficial for
‘higher performing companies’. However, they specified that inputs from customers and
employee training are key issues at all levels of performance.
Now what does the Islamic values system say about this transaction between the
buyer and the seller. Several Ahadis and Quranic injunctions insist on “fulfilling
promises and contracts” as a pre-requisite to becoming a pious Muslim. There are
several Ahadis relating to ‘selling of goods,’ which highlight the responsibility of the
seller to explain all the shortcomings of the product explicitly so as to adjust the buyer’s
expectations to the appropriate level. After a clear understanding of all the weaknesses
of the product, when the buyer experiences the actual product, he would, at the
minimum, be satisfied if not delighted.
Therefore we can safely conclude that the Islamic norms of business transactions
insist on ensuring customer satisfaction (i.e., meeting customer expectations that have
been agreed upon). Overall, the focus of the TQM philosophy is exactly the same, i.e.
to create a satisfied or, preferably, a delighted customer. Therefore, it would be
incorrect to say that the TQM philosophy is alien to our cultural or religious norms. As a
matter of fact it is possible that it may have been drawn from our own value systems
many centuries ago.
First and the foremost risk to the successful implementation is the loss of top
management commitment. This loss will have an impact on the implementation process
regardless of whenever it happens. Changing culture requires many years of top level
commitment which needs to be publicly demonstrated at all times. The top
management has to perform a continuous leadership role to sustain the TQM culture.
It is also very important to link all the TQM tools and activities with how they are
actually impacting the customer and the bottom line, there is a risk of loosing focus
while implementing TQM tools which could substantially reduce the advantages of these
activities.
Usually the resistance to TQM culture comes from the middle management as they
are the most effected party due to the empowerment of the workers. This has to be
considered in the planning activities and special initiatives are needed to get the middle
management on board.
Continuous reinforcement of the Total Quality culture is very important. This needs
to be incorporated into the regular activities of rewards and recognition. Special care
needs to be taken that these rewards and recognition activities do not become a
routine, as they could loose their effectiveness. New and innovative ways should be
used to recognize and reward super achievers.
At the beginning of TQM initiative the employees are given a guarantee that no body
would loose their job due to the improvements achieved from the TQM process. This
ensures that they can focus on changing the culture and not worry about loosing their
jobs. There always will be some people who will refuse to change and there would be
need to remove them in order to allow the change process to continue. These people
should only be removed from the organization after a clear and unambiguous case is
presented to the whole organization that they were given all the chances to participate
in the change process but they consistently refused. If this process is transparently
handled, then the removal of these individuals will not have any detrimental impact on
the commitment of other employees to the TQM culture rather it will strongly reinforce
the commitment of the top management towards TQM culture.
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