The basic problem anywhere is quality. What is quality? A product or service possesses quality if it helps someone and enjoys a sustainable market. Trade depends on quality.
There are four prongs of quality and four ways to improve quality of product and service:
- Innovation in product and service
- Innovation in process
- Improvement of existing product and service
- Improvement of existing process
The common mistake is the supposition that quality is ensured by No. 4, improvement of process, that operations going off without blemish on the factory floor, in the bank, in the hotel will ensure quality. Good operations are essential, yet they do not ensure quality. Quality is made in the boardroom.
A bank that failed last week may have had excellent operations— speed at the tellers’ windows with few mistakes; few mistakes in bank statements; likewise in the calculation of interest and of penalties and loans. The cause of failure at the bank was bad management, not operations.
Does experience help? No! Not if we are doing the wrong things.
Government service is to be judged on equity as well as on efficiency.
Profit in business comes from repeat customers, customers that boast about your product and service, and that bring friends with them.
Stamping out fires is a lot of fun, but it is only putting things back the way they were.
It will not suffice to have customers that are merely satisfied. An unhappy customer will switch. Unfortunately, a satisfied customer may also switch, on the theory that he could not lose much, and might gain.
Putting out fires is not improvement of the process. Neither is discovery and removal of a special cause detected by a point out of control. This only puts the process back to where it should have been in the first place.
One gets a good rating for fighting a fire. The result is visible; can be quantified. If you do it right the first time, you are invisible. You satisfied the requirements. That is your job. Mess it up, and correct it later, you become a hero.
Long-term commitment to new learning and new philosophy is required of any management that seeks transformation. The timid and the fainthearted, and people that expect quick results, are doomed to disappointment.
Quotes by W. Edwards Deming that W. Edwards Deming referenced.