Integrating Strategic Business and Quality Planning or "Improved Profits from Quality Programs"

Article

Allred, Don   (1993, ASQC)   QualTech Management International; Colorado Springs, CO

Annual Quality Congress, Boston MA    Vol. 47    No. 0
QICID: 9948    May 1993    pp. 134-140
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Article Abstract

A company should integrate its strategic quality planning and strategic business planning. Otherwise, when there is a conflict between the two plans, the quality plan probably will lose out. A good match between quality activities and the business situation requires: (1) motivation, so that everyone has a reason for doing a quality job; (2) knowing what the customer needs; (3) tools, including training, information, and time to implement improvements. An example of a mismatch between quality and business plan is extensive training in quality function deployment when few new products are planned. An example of a match is teamwork training in a business whose structure is flattening. Some business strategies may unavoidably jeopardize quality, but good quality planning allows for this as long as business decisions are made with full awareness of their effect on quality. But even when the business situation calls for cost reductions and layoffs, an analysis of the impact on quality may show that efficiency improvements can reduce the need for such cutbacks. To tell if a company has a good match between business strategy and quality requirements, evaluate quality performance. One method is benchmarking to other companies and even to customer expectations.

Keywords

Business plans,Customer expectation,Financial industry,Strategic planning


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