Total Quality Management and Business Excellence in New Zealand

Factors for successful implementation of total quality management in the organizations

Organizations with successful implementation of total quality management from the case studies had seven major similarities that resulted in their success. First, the organisations has a major focus on customers characterised by prioritising customer satisfaction, responding to their complaints, and setting clear specifications for managing internal and external customers (Lo & Chai 2012). Second, the companies embraced continuous improvement of system activities and processes through ongoing monitoring and evaluation of staff performance in addition to guaranteeing quality and identifying of areas for improvement.

Third, there is teamwork and engagement of stakeholders in quality processes, teams focusing on quality, effective rewarding and well defined structures to ensure quality in teams. Fourth, successful organisations in the case studies revealed leadership commitment and understanding the significance of total quality improvement for the organisation (Venkateswarlu & Nilakant 2005). Indeed, the companies showed significant commitment from the management and recognition of employee efforts, which contribute to further quality improvement. Fifth, the companies have continuous training and development for employees through total quality programs such as teamwork, techniques for statistical improvement and other quality related programs.

Training also involves other stakeholders such as suppliers to improve quality in the entire value chain. Sixth, the companies had effective communication channels, which enhanced collaboration between functional units and team in the organisation that resulted in cross functional problems solving. Finally, feedback and performance measurement were common in the companies as they measured financial and non financial performance and used a feedback mechanisms to maximise sharing of innovative ideas for quality improvement (Metaxas & Koulouriotis 2014).

Factors for implementation of total quality management

From the companies discussed in the case, many reasons inform their desire to implement total quality improvement. The factors include improving processes, to focus on priority areas, measuring system capacity, support teams in decision-making, differentiating between trivia and vital business needs, to prevent defects, establishing cost-effect relationships, to implement improvement procedures, establish effective operating procedures, and observing change of behavior over time.

These objectives support the major business goals of attracting and retaining customers, as seen in the example of company C, which needed to improve occupancy rates in their hotel rooms through quality services to customers at all levels. The objectives also respond to the goal of maintaining a competitive advantage over competitors, as seen in the cases of company M and company E, which must improve quality and deliver value for customers otherwise risk losing business to competitors.

Total quality management is a major aspect in enhancing business efficiency, which contributes to cost cutting. The implications are increased revenue and sustainable profitability for organisations in the case studies (Venkateswarlu & Nilakant 2005). Finally, as seen from the case studies, total quality management contributes to better responses to external requirements, as seen in company E, which successfully implement quality management following acquisition by a multinational company (Lo & Chai 2012).

Role of total quality management in organisational change

TQM plays a major role in guiding the change process in organisations as companies in the case studies used it to transform operations for better service delivery and maintenance of strategic advantage. Indeed, the companies discussed in the case studies indicated a positive relationship between development and practicing total quality management (Venkateswarlu & Nilakant 2005). As seen from companies in the case studies, the desire to implement organisational change indicated more willingness to practice TQM. The companies implemented changes in different functional units of the organisation.

As it is clear from the cases, TQM doe not always result in positive change, which highlights the need to consider other factors critical for the success of total quality management. Nevertheless, it is apparent that companies with significant faith in total quality management make major changes in infrastructural aspects and promoted the practice of continuous improvement as a major part of the organisational culture. For TQM to succeed in driving change, the companies must make a cultural artifact within the organisation used to integrate various value addition activities in the organisation (Metaxas & Koulouriotis 2014).

Kottler’s 8-step model of change to implement TQM

Kottler’s 8-step model of change to implement TQM

The steps in Kottler’s model for change indicate the significance of TQM as a major component of change, as seen in the case studies especially company C, which fits in this model. Creating urgency is important and the company was able to involve everyone by determining threats to the organisation, developing scenarios, evaluating opportunities, engaging in honest discussions and seeking the support of customers (Venkateswarlu & Nilakant 2005). The companies formed a strong coalition among stakeholders by selecting leadership, asking for commitment, building teams and supporting weak areas in teams.

The companies developed a vision for change through identification of central values, developing a clear vision, developing strategy for the vision and implementing it to achieve customer satisfaction. Communication of the vision, especially expressing the desire for change, being honest in dealing with individual concerns and applying change in all operations is important for success. Other factors that ensure success as reflected in the model include removal of obstacles, creating short-term successes, building on change and indoctrinating the change in the organisational culture and behavior (Metaxas & Koulouriotis 2014).

References

Lo, QQ, & Chai, KH, 2012, ‘Quantitative analysis of quality management literature published in total quality management and business excellence (1996–2010)’, Total Quality Management & Business Excellence, vol. 23, no. 5, pp. 629-651.

Metaxas, IN, & Koulouriotis, DE, 2014, ‘A theoretical study of the relation between TQM, assessment and sustainable business excellence’, Total Quality Management & Business Excellence, vol. 1, no. 2, pp. 1-17.

Venkateswarlu, P, & Nilakant, V, 2005, ‘Adoption and persistence of TQM programmes–case studies of five New Zealand organizations’, Total Quality Management & Business Excellence, vol. 16, no. 7, pp. 807-825.