Linking Business and Quality Planning

Article

Beecroft, G. Dennis   (1999, ASQ)   University of Waterloo

Quality Management Conference, Charlotte, NC    Vol. 11    No. 0
QICID: 18904    January 1999    pp. 1-6
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Article Abstract

Many organizations fail to link their quality performance with bottom line profits. Quality improvement efforts rely on improvement teams or projects, assuming that financial performance will improve as a result of these efforts. But for quality improvement efforts to reflect actual dollar savings, projects must use both financial and non-financial measures. Business planning must link strategic vision, short and long term business goals, and quality improvement initiatives. Quality, like other dimensions of business, must be managed strategically. An excellent tool for strategic quality planning is the Japanese planning model hoshin kanri. Unlike the management by objectives approach where if goals are not achieved the implementation plan fails, with hoshin kanri plans can be modified or adjusted during the project if it becomes obvious that the goal will not be met. By focusing on processes rather than results, the processes can be improved to achieve better results.

Keywords

Strategic planning,Process management,Financial industry,Business plans,Performance objectives,Quality improvement (QI)


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