Redefining Quality - accelerating change - reducing cost - protecting reputation

Professor John Oakland

“Quality is not recognised within the business – it’s down to us to change this”

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Over thirty years working with some of the World’s most successful organisations

Oakland in 30 seconds…

Redefining Quality

Research & Education

Knowledge into Results

Sustained Improvement

At the forefront of emergent thinking in quality and operational excellence

Leading-edge thinking on what quality means in the

21st Century

Pioneering applied research coupled with practical hands-on experience

Helping companies improve the quality, cost and delivery

of products and services

Addressing real business needs

Transferring skills & knowledge

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The 21st Century world of business never rests

Why ‘Redefine’ Quality?

Research into 21st Century trends and views of business leaders and senior quality professionals has revealed six key challenges in delivering quality:

Customer choice and time

to market

Low-cost and fast access to performance

data

High-profile failures

Complex Value Networks

Ever-increasing stakeholder

demands

Quality can enhance business

value

….. Quality must play a wider role in business to meet these challenges of 21st Century

The Consumer Challenge

The Reputation Challenge

The Confidence Challenge

The Supply Chain Challenge

The Transformation Challenge

The Improvement Challenge

In the past, Quality synonymous with: • Control, compliance & cost • Excessive focus on internal capability • Overly bureaucratic approaches

Building ‘learning organisations’ that are quick to change, avoid

excessive costs and reputational impacts of getting it wrong!

Quality as a strategic force

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Increasing levels of maturity

The Journey to World Class

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Products, services, processes and organisations progress on a

change journey, from idea to implementation, where quality

maturity increases over time

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Costs associated with maturity

The Journey to World Class

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As the journey progresses costs accumulate – the

rate increases early in the journey and falls as

maturity is increased

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Increasing levels of maturity

The Journey to World Class

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As the journey progresses the desired

outcome reputation lags by customer

response time

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Scaling the Maturity Curve

The Journey to World Class

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Variable control

Gaining control

In control

Improving – “Industrialized”

World Class

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Oakland’s figure of 8 model for effective change

How do you accelerate change?

TRIGGERS (Internal/external)

READINESS FOR

CHANGE

IMPLEMENTING CHANGE

Leadership & Direction

PROCESSES

Systems & Controls

Need for Change

Leadership & Direction

Planning

PROCESSES

Organization & Resources

Systems & Controls

Behaviours

Effort wasted on non-core

Driving blind

Paralysis and frustration

Resistance endangers success

No urgency and no action

Never leave the start

False starts and wrong directions

Missing focus Result

Waste removal and variation reduction work together

How do you reduce cost?

TIME QUALITY

Waste Variation

Lean 6 Sigma

Apply approaches such as “Lean” to remove

the non-value adding waste from a process,

pathway or service

Use techniques such as “Six-Sigma” to reduce undesirable variation in customer facing and

support processes

COST

Reduced costs, reduced risks, enhanced confidence and increased customer satisfaction

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Assumption busting leads to paradigm shifts that can

drastically reduce costs and create step changes in quality

Protecting reputation starts with understanding performance and risk

How do you protect reputation?

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Comprehensive framework for assessing organisational maturity

Bringing together your performance across the entire end-to-end value chain will highlight areas of priority, risk and specific improvement actions

Understanding and applying what quality means in the 21st century

Redefining Quality

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How are you going to accelerate change, reduce costs and protect reputation?

Understand Customers

Set Direction

Diagnose Problems

Improve Performance

Transform Business

You need to help MA&I:

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

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Some case examples in global organisations

The Business Case for Increasing Maturity

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Realised £20m in savings over 5 years

by assuring strategic supplier

relationships

Service

Manufacturing Invoicing process time reduced by 50% - RFT assurance

Reduced unnecessary billing calls by 30% saving £1.2m by assuring

first point of contact

Reduced process time by 40%,

reduced cost by 20% (£15m) through

process assurance

NPS increased 8% by assuring the customer

experience

£22m savings identified through

assurance process for quality based projects

£60m savings delivered from a corporate-wide Lean Six Sigma

programme

Eliminated £17m warranty costs by cross plant

assurance assessment & benchmarking

Research in Quality

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What quality means in the 21st Century

Traditional – functional, does it work (meets standard or not)

But in the world today Quality includes everything – design, colour, shape, price

Quality is about ensuring that the organisation is delivering what it needs to deliver to satisfy all stakeholders

Environmental issues are now very much part of Quality – Carbon Management will become part of this century’s big Quality issue

The Quality Function assures what you need to do to satisfy stakeholders gets done, and directs quality improvement in the most important areas

Research in Quality

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The top three things that affect quality

Supply Chain Management

Culture

Continuous improvement

Critically important – business must care – quality of leadership – clarity of vision and direction – measurement of quality

The impact of price on quality and the potential lack of control through outsourcing arrangements

Linked to measures & objectives and, therefore, to culture

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The value chain is much more extended than ever before

Challenges Achieving Quality in the 21st Century

Customers

FES†

FE

S†

BU1 BU2 BU3 BU4

YOU

Sub 2

Sub 1

Suppliers

Orders/ Revenues/ Cash

Goods/Solutions/Services

The main challenges in achieving Quality across the entire extended supply chain: Assess the customer needs & business value of meeting them

Find the right processes & partners and select the optimum solutions

Prove and implement the right solutions

Make the proven solutions sustainable and continuously improve

Promote the spread of internal and external best practices

† FES = Front End Sales, External System Integrators etc

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The Quality Profession needs to step up and meet the challenges of the 21st Century

Quality Professionals must: Possess a broad set of skills Facilitate the integration of the entire

end-to-end value network Be agents for broad-based business change Talk the language of the business Help their colleagues in other functions to

make better use of their skills and experiences

Acquire the status necessary to meet these bigger and broader challenges

Research in Quality Leaders

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Expanding from a middle-management compliance-focussed profession to one of influencers & leaders…

Getting Quality Recognised in the Business

Low

er

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igh

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valu

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Lower scope of influence Higher scope of influence

V.o.Customer/Stakeholder Business System/Process

Assurance Transformation

Chief… Vice President…

Director… Head of…

Compliance…

Context

Leadership

Imp

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A new approach from the CQI to achieve what is needed

Redefining the Quality Profession

Uses domain and/or industry-specific knowledge to ensure effective

implementation of governance, assurance and improvement

Context

Facilitates a culture of evaluation (both qualitative and quantitative) learning and improvement which

drives more effective, efficient and agile ways of working to support

business strategy, enhance reputation and increase profitability

Improvement

Ensures that all organisation requirements are reflected in

operational frameworks, policies, processes and plans and that these meet all stakeholder requirements

Governance

Embeds a culture of assurance to ensure that policies, processes and plans are effectively implemented and that all outputs (both internal

and deliverable) are consistent with requirements

Assurance

Uses leadership behaviours to maximise influence and develop a

culture of evaluation and improvement

Leadership

The New Quality Professional

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The Eight Leadership Roles

Collaborator

System Thinker

Coach

Planner

Fact-Based Thinker

Quality advocate

(reputation)

Stakeholder advocate

(relevance)

The New Quality Professional

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Our colleagues recognise us as:

Leadership

The quality advocate Articulates a clear vision for quality as a strategic imperative that supports the organisation’s broader aims and objectives. Develops and implements strategies to maximise the contribution of the quality profession within the organisation

The stakeholder advocate Acts as the conscience in the organisation, making interventions whenever necessary to ensure customer and stakeholder requirements are addressed

The systems thinker Looks across business functions and hierarchies to promote a holistic view of the organisation and its requirements

The fact-based thinker Promotes a culture of decision-making based on factual evidence and the measurement of performance

The quality planner Advocates the principle of planning for quality to prevent potential problems with product and service quality

The quality coach Develops knowledge of quality principles and capability in quality tools, techniques and approaches throughout the organisation

The quality motivator Motivates and empowers others to take accountability for achieving and improving standards of performance

The quality collaborator Works with all internal and external stakeholders to resolve issues associated with organisation performance and delivery of quality products / services

Managing in a TOTAL Quality Way

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Using proven holistic frameworks for managing, assuring & improving performance

www.oaklandconsulting.com

“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

johnoakland@oaklandconsulting.com