It also highlights the significant contribution that quality makes to the growth of organizations and countries, as well as to overall prosperity.
In fact, as early as 1959, Japan had been designating November as "Quality Month," and other Eastern nations later adopted this timeframe. But why are continuous improvement and quality so important from a business perspective, and how does this impact organizations?
Clearly, quality management is not just a cliché, and even less a sort of corporate "OCD." In reality, the concept of quality has both a moral and an economic dimension, which are by no means mutually exclusive.
From a moral standpoint, we are almost obligated to try to do the same thing better each time, or to achieve more with what we already have. Behind this lies an idea of economic ecology: being more efficient and generating less waste.
From an economic standpoint, the underlying factor is a business commitment to increasingly better meet expectations.
Quality management is born the moment someone forms an expectation about something. From there, two fronts open up: first, getting to know those expectations better; and second, being able to respond to them in an increasingly efficient way—doing, as we mentioned, more with the same resources, or doing the same thing but in a better way.
Impact on Business
Why should a business executive care so much about quality? First and foremost, it must be noted that a business only exists as long as it satisfies a need or an expectation. In other words, quality guarantees that all of an organization's efforts are directed toward answering a specific need. Without responding to a need, there is no business.
Furthermore, there are two factors that constantly raise the bar.
- Competition: The existence of competitors means not only that someone else might have a better read on market needs, but also that, given the same read, someone else might respond more efficiently.
- Adaptability to Change: This requires acting faster—although it is also true that sometimes, in the name of speed, actions are taken to the detriment of quality.
Therefore, quality is critical because it ensures that efforts are directed at solving concrete problems. It assures the customer that there will be no deviations; the service they receive on day 1 will be exactly the same as the service they receive on day 15.
Superior Efficiency
Quality also signifies that the right internal conditions are being fostered within the company to maximize efficiency. In turn, superior efficiency indicates that the organization is better equipped to manage the various variables that drive competitiveness.
Continuous improvement is the mother of modern management philosophies, even though the history of quality dates back several centuries. Furthermore, it brings together two powerful core ideas: first, that everything can be perfected; and second, that there are cycles of improvement that lead to incremental value.
Ultimately, quality and the concept of continuous improvement must be deeply rooted in the organization's culture. However, in this regard—as in so many others—it is always wise to question taken-for-granted ideas and review core assumptions. Quality cannot be a mere cosmetic issue; it must drive a true transformation that reaches the customer and genuinely improves their satisfaction.
To round out these concepts, we share a Japanese glossary of quality terms.
Does your organization have a quality policy? It would be interesting to hear how you manage the topic!