Redefining the Quality Profession - accelerating change

Transcription

1 Redefining the Quality Profession - accelerating change - reducing cost - protecting reputation Professor John Oakland

2 Professor John Oakland Chairman, Oakland Consulting LLP Emeritus Professor, Leeds University Business School John is also Head of Oakland's Research and Education Division, the European Centre for Business Excellence (ECforBE) Over 30 years he has researched and consulted in all aspects of quality management and business improvement in literally thousands of organisations He has directed several large business research projects on change management in Europe which have brought him into contact with a diverse range of organisations He is author of several best selling books, including: Total Quality Management, Oakland on Quality Management, Total Organisational Excellence; Statistical Process Control and Production and Operations Management He has written hundreds of papers, articles and reports on various topics in these and related fields Professor Oakland is a Fellow of the Chartered Quality Institute (Chair of its Professional Policy Panel) Institute of Directors and Royal Statistical Society. He is also a Member of the American Society for Quality

3 Oakland in 30 seconds Redefining quality Updating & sharing knowledge through research and education

4 What our clients say about us Oakland helped us to look at our business in a way we had never done before Standard Chartered Oakland spent time to understand my real needs, & worked closely to help me deliver my objectives American Express Oakland has a rare talent for bridging the gulf between management theorists and business pragmatists Airbus Group They are accomplished facilitators who have helped Car Care Plan on our change journey with significant benefits, including a simplified business that is making our IT replacement run more smoothly Car Care Plan (part of Ally Finance) It is rare that consultants can come into such a complex and dynamic environment and deliver such value on time and in budget Shell

5 Why Re-define Quality? The 21 st Century world of business never rests: speed of flow of information global markets consumer needs varying widely across time and space creates constant need for alertness and change If we re not keeping up with the pace, others will it s very competitive out there! But Quality must play a wider role in business to meet the challenges of 21 st century In the past Quality: synonymous with control, compliance & cost excessive focus on internal capability generated overly bureaucratic approaches that attracted negative perception, particularly in boardrooms We need to build: learning organisations that are quick to change, avoid excessive costs and reputational impacts of getting it wrong!

6 Why is Quality back on the agenda? Failure to manage quality - damaging reputations and financial returns of major global brands and corporations, e.g. Toyota recalls Care homes... inspections by the CQC found one in six nursing homes did not treat patients with dignity and respect" Quality failure eroding consumer trust, even in food we eat - horsemeat introduced into the supply chain for burgers sold in high-street supermarkets, without detection......"more than a third of food products tested were either mislabelled or not what they claimed to be, e.g. mozzarella contained only 40% cheese, slimming tea contained a banned prescription drug and fruit juice contained a flame retardant 3 electricity distribution firms fined total of 1 million for licence breaches in connections and admitted, "..system improvements should ensure there is no repeat.."

7 More Quality failures in the field Mattel Sony Company Quality Issue Impact Unauthorised use of lead paint - failure to detect in supply chain Inclusion of a choking hazard as a result of poor design Laptop batteries catching fire due to microscopic particles infiltrating the battery during manufacture 20 million toys recalled At least one high-profile class action lawsuit c. 40m costs Attention of the world s press Recall c.10 m laptops made by Dell, Apple, Lenovo, Toshiba, Gateway, Fujitsu Reputational damage to Sony & customers' brands Costs estimated at 400m Hangzhou Zhongce Rubber Missing or defective gum strips that could lead to separation c.450,000 tyres recalled Estimated cost of failure $50 to $80m

8 Scaling the Maturity Curve World Class Maturity level Improving Industrialized World Class Quality & Operations Maturity Level Industrialised Predictive Reactive Variable Variable Control Gaining Control In Control Reputation Journey Cost Time

9 How do you accelerate change? Oakland figure 8 model of effective change Missing focus Result External or internal drivers of change Need for Change Leadership & Direction Readiness for Change Planning Need for Change Leadership & Direction Planning No urgency and no action Never leave the start False starts and wrong directions Processes Processes Effort wasted on non-core Organisation & Resources Implementing Change Behaviours Organisation & Resources Systems & Controls Paralysis and frustration Driving blind Systems & Controls Behaviours Resistance endangers success Successful change is possible when all 7 key elements are addressed and readiness is achieved before you start changing processes and implementing other changes

10 How do you reduce cost? Waste Removal TIME Lean VALUE outputs Variation Reduction QUALITY Six sigma COST Improving customer satisfaction & increasing value for money Reduce process time Apply approaches such as Lean to remove the nonvalue adding waste from a process, pathway or service Reduce variation Use techniques such as Six- Sigma to reduce undesirable variation in customer facing and support processes Bust assumptions Assumption busting leads to paradigm shifts this can drastically reduce costs and create step changes in quality

11 How do you protect reputation? Protecting reputation starts with understanding performance and risk Use an assessment tool developed across the dimensions of quality management including: Leadership Policy Organisation Manufacturing Supply People management Performance improvement Bringing together your performance measurement across the supply chain will highlight areas of priority, risk and specific improvement actions

12 Redefining Quality Redefining Quality with understanding and applying what quality means in the 21 st century How are you going to accelerate change, reduce costs and protect reputation? You need to: Understand your customers Set your strategic direction Diagnose the problems in your business Improve your efficiency and effectiveness Transform the way you do business Help change happen in your organisation so that it is sustained Collaborate with your partners much more effectively Transform Business Improve Performance Diagnose Problems Understand Customers Set Direction

13 Today s lunch... is being stolen The executive team does not look to the QP to address matters that it might consider to be in its domain Business Improvement, Change Management, Six Sigma, Strategic Process Management, Lean, Operational Excellence

14 and tomorrow s lunch... will be stolen too Whether the title is CPO, Vice President of Business Process Management or something else, the process management leader in the organisation needs to be able to take a process-centric view of the organization and be comfortable creating, managing and improving process assets... To achieve this the leader should be seen to represent the organization s broader interests and should be well networked and respected across the organization.

15 Problem Definition The quality professional fails to deliver optimal value to organisations with respect to: the elimination of unnecessary cost, improved stakeholder value and reduced risk CQI PPP

16 Envisioning a new QP Where The Quality profession is valued for offering organizations: Assurance with Agility Effectiveness and Efficiency Culture of Change CQI PPP

17 Implications for CQI scope Expanding from a middle-management compliance-focussed professional body to one for influencers & leaders Chief Vice President Director Head of Value Compliance Voice of Customer/Stakeholder Business System/Process Assurance Transformation Scope and Business Influence

18 Envisioning the New QP How we wish the Quality Professional brand to be perceived Essence Core Identity Driving organisational excellence We are agents for change, transforming processes, behaviour and culture. We protect the business, identifying appropriate standards for business performance and providing assurance those standards are being achieved. We are leaders who create, manage and improve organisations strategic business process systems to deliver lasting superior performance. We are a progressive and outward looking profession which understands the realities of managing organisations in dynamic environments. We look across business function and hierarchy, advocating a broad process and customer-centric view of the organization. Value proposition Functional benefits We protect reputation We enhance reputation We improve profitability We transform at pace Emotional benefits Avoiding the potentially catastrophic risks of getting things wrong Optimizing operational effectiveness to maximize value for the customer Optimizing operational efficiency by eliminating unnecessary cost and waste Reducing time to market of new ideas, strategies and products Confidence from knowing that the organisation has the capability to deliver on its commitments combined with the agility to change and improve at pace Self-expressive benefits Employing Quality Professionals reflects organisational values associated with the aspiration for organisational excellence and improvement Relationship Collaborating with leaders and managers to develop the culture of excellence and improvement CQI PPP

19 CORE IDENTITY for the quality profession is proposed We must be perceived as driving organisational excellence, by being: Agents for change, transforming processes, behaviour and culture Guardians who protect the business, identifying appropriate standards for business performance and providing assurance those standards are being achieved Leaders who create, manage and improve organisations strategic business process systems to deliver lasting superior performance Progressive and outward looking, understanding the realities of managing organisations in dynamic environments Holistic, looking across business functions and hierarchy, advocating a broad process and customer-centric view of the organization

20 VALUE PROPOSITION for the quality profession Functional benefits Through Governance, Assurance and Improvement we: Protect reputation Avoiding the potentially catastrophic risks of getting things wrong Enhance reputation Optimizing operational effectiveness to maximize value for the customer Improve profitability Optimizing operational efficiency by eliminating unnecessary cost and waste Transform at pace Reducing time to market of new ideas, strategies and products we drive change

21 VALUE PROPOSITION for the quality profession Emotional benefits Confidence from knowing that the organisation has the capability to deliver on its commitments combined with the agility to change and improve at pace Self-expressive benefits Employing Quality Professionals reflects organisational values associated with the aspiration for organisational excellence and improvement Relationships The quality profession collaborates with leaders and managers to develop the culture of excellence and improvement

22 Quality Leadership Skills Framework Governance Ensures that organisation strategy is reflected in plans, policies, processes and projects, and that these meet customer, organisation and stakeholder requirements Assurance Uses the overall Assurance landscape to ensure that plans, policies and processes are effectively implemented, positioning Assurance as a valuable stewardship activity that protects reputation and provides confidence to management, customers and stakeholders Leadership Uses leadership behaviours to develop a culture of excellence and improvement that supports business strategy Context Uses domain and/or industry specific knowledge essential for the effective implementation of governance, assurance and improvement capabilities to deliver business strategy Improvement Facilitates a culture of learning and improvement which drives more effective, efficient and agile ways of working that support business strategy, enhance reputation and increase profitability

23 Research Quality Leaders for C21 st Quality leaders for the C21 st will need first and foremost to be business people, with multifunctional experience, who understand and speak the language of business and can relate to those running the business The lack of that type of person in Quality is the root cause of complaints about top management from most quality people but it is because they are not the right people! Bosses need to be able to turn to the quality guys to set the standards, and drive improvement Quality leaders will need to be of that ilk

24 Managing in a TOTAL Quality way Using proven holistic frameworks for managing, assuring & improving performance

25 No great improvements in the lot of mankind are possible, until a great change takes place in the fundamental constituting of their modes of thought John Stuart Mill Oakland Consulting LLP West One 114 Wellington Street Leeds LS1 1BA