“If Japan can ... Why can't we?”is the name of an American television show on the NBC network credited as the start of the worldwide ‘Quality Revolution.’ This movement came about in the late 70s and early 80s as countries worldwide took notice of Japan’s leadership in producing high-quality goods and services at a competitive price.
Other nations aimed to understand how Japan was achieving such success and began studying their methods and processes. They uncovered a set of principles laid out by Dr. W. Edwards Deming, guiding the Japanese through this process: better product design, uniform product quality, improved product testing, and greater global market sales.
From this discovery came Total Quality Management (TQM) — a U.S. sales strategy to emulate the Japanese’s successes. This piece will define TQM, explain its benefits, outline its fundamental principles, and give real-life examples for sales leaders to implement their strategy.
What is Total Quality Management (TQM)?
Total Quality Management is a managerial framework that improves customer experience and product value through a complete company buy-in and streamlined organizational process.
The definition of TQM comes from each word in its name. Firstly, Total describes the process as it involves all organization members, from order fulfillment to marketing to sales. Everyone is working towards the same goal, and all teams are accountable for results.
Management stems from managers and executives overseeing the process, identifying errors to be fixed, and focusing on improving efficiency. Quality is from the overall goal of TQM: an increase in product quality and the value it can provide to customers.
This managerial process can provide a variety of benefits to businesses that choose to employ the strategy:
Increased productivity in employees as all staff understand what is expected of them and how their job tasks contribute to overall company success.
Greater employee morale as all team members know what is expected of them and confidently work towards achieving their job duties.
Streamlined business processes as managers create a careful framework with strategic methods to follow so day-to-day tasks aren’t scattered and disuniform.
TQM increases customer satisfaction as business changes and processes are enacted specifically to provide higher quality goods and increased value to customers. Higher quality products, in turn, increase sales as customers take notice of its worth.
Free marketing through customer evangelism as loyal customers are more likely to become fierce promoters who recommend you to friends, family, and anyone who'll listen.
Principles of Total Quality Management
Since it is focused entirely on an overarching business strategy, sales managers need to understand the principles of TQM to be successful when implementing it for their business.
Total Quality Management is a customer-focused approach. It revolves around solving for the customer and working to modify how to create your product or service to provide them with increased value. To ensure that you do this, you need to determine your customers’ needs, desires, and roadblocks to success.
Overall, this means that although TQM can help your business (through increased productivity), the entire process you come up with should be based on solving for the customer.
Although it involves the entire company, TQM is a management style established, coordinated, and led by company leaders.
You, the manager, work to unite your organization and develop strategies and plans that provide your employees with the training they need to succeed and a sense of direction from the processes you layout for them.
Essentially, you’re one of the fundamental pillars of your TQM success. Without setting goals and objectives and actively communicating with employees, it will be challenging to achieve success.
Total Employee Buy-In
Another key element of TQM is the total aspect — all employees participate and work together to meet common goals. Without total buy-in, it will be difficult to achieve the successes you’re hoping for because your teams won’t all be aligned.
To encourage business-wide participation, provide employees with all necessary training. When employees feel prepared, and like their managers are working to help them feel prepared, they’re more likely to be willing to participate because they feel like they’ll be included and supported through the process.
You can also work to encourage buy-in by diminishing feelings of fear of punishment. Emphasize that TQM is a living management style, as there are bound to be changes and roadblocks along the way that will be addressed as a whole. Problems that arise result from changes that are being adapted to or because of something that has been troubleshot wrong, not because of an individual employee.
Encouraging this buy-in can also become more manageable when you acknowledge successes as they happen, so employees can feel proud of their accomplishments and understand that hard work is paying off. In turn, this also inspires retention, pride, and accountability in your employees.
This management style is also process-based. While you may realize that something needs to change, you can’t just say okay, let’s change and expect to succeed. You need to identify areas for improvement, understand failures and roadblocks, and develop a strategy that will help you encourage and empower your employees to succeed in their new job processes.
It’s also important to realize that, as a manager, failure isn’t a be-all-end-all. Failure can inform your process and help you uncover overlooked opportunities for change.
Just as TQM is process-based, it also heavily relies on strategic management of the many processes you’ve developed. By doing this, you can ensure that all teams are accurately sticking to their processes and producing products or services that will provide the most value to your customers.
You can think of it like this: since TQM is successful through company-wide participation, multiple teams work together. However, all of these teams don’t necessarily do the same work. You’ve likely created different processes and plans for each team according to their respective job descriptions, like different tasks for marketing, product teams, and customer-facing employees. The strategic aspect comes into play because you’re managing various processes and ensuring they work in conjunction with each other as a cohesive strategy.
You can’t just make assumptions about performance; you need concrete data to draw accurate conclusions to understand how your TQM process is going. Aim to continuously collect data and analyze it to make further decisions, changes, and improvements.
If TQM is an entirely new strategy for you, it’s also new to your employees. Effective and consistent communication plays a large role in maintaining employee morale, especially for a new approach that may make your employees nervous. If everyone knows what’s going on, and how your processes are going, employees will feel more confident in their job processes rather than floundering in confusion.
Consider creating official lines of contact with all teams, employees, and stakeholders and conducting regular group and individual check-ins to ensure that everyone is on the same page.
As mentioned before, TQM is a continuous, evolving process. Since it’s all about providing increased value to customers, continuous improvement to your process is imperative to better meet customer needs. Something that they may desire today may not be the same thing they want in two years. It’s important to recognize this and to address and make changes to your strategy whenever necessary.
While Total Quality Management is a model in and of itself, various strategies stem from key elements of the process. These models are suitable for differing business needs, and we’ll go over five of them below.
1. Quality Function Deployment
This model focuses on the customer pillar of TQM, where business leaders consult with customers, understand their needs and expectations, and create a relationship matrix that provides an understanding of how the business is (or is not) meeting the customer needs. The chart below is a common example of a TQM flowchart that managers use to decide a course of action and understand business performance in relation to customer needs.
The guru approach uses the knowledge and understanding of key thinkers of the quality management industry as a business’ North Star, so to speak, towards understanding any shortfalls. Since each person likely has their own interpretation, this method is valuable for organizations in a variety of industries as they can choose a leader that relates most to their needs.
A manager may attend a workshop discussion or simply study a thought leader’s writings and work to implement the methods they’ve discovered. The following are notable thinkers in quality management:
This approach focuses on studying other businesses employing TQM to understand how they’ve achieved their success. When these metrics are identified, the business then works to understand how they can benefit from these methods and works to incorporate them into their processes.
4. Award Criteria Approach
This strategy focuses on using the criteria of a reputable TQM quality award to identify areas of improvement. It’s essentially using the rubric for awarding the prize as a guide to discovering and implementing changes within a business because the award criteria define success.
Six Sigma is a strategy that aims to improve the quality of a business’ product or service by uncovering defects, identifying their causes, and improving upon faulty processes to produce better results. It’s a data-driven strategy that uses multiple statistical processes while following the DMAIC system: Define, Measure, Analyze, Improve, Control.
Industries that use this strategy are healthcare, finance, and education.
Focus on the Quality of Your Products and Services
All-in-all, TQM is meant to provide one of the elements of its name: quality. While it involves business changes, it is centered around creating these changes to ensure customer satisfaction and loyalty.
Take the time to understand the basics of TQM and choose an implementation strategy that works for your business. You’ll likely find yourself managing teams of employees that are inspired to work together and create products and services that your customers love to use.
Originally published Jan 25, 2021 8:00:00 AM, updated January 25 2021