The principles of quality management, as also total quality management, and process improvement, as also process excellence, are truly important for any organization.
The above principles strongly and directly impact the product and service delivery operations of an organization but are still cogs in the wheel as far as sustained organizational success is concerned.
The term "sustained organizational success" is a beautiful concept that can only be understood well when dissected inside out, stretched apart and pinned down throughout the edges.
The first and foremost criterion for success is the organization's ability to remain a "going concern" from financial accounting point of view.
In the most fundamental sense, an organization is a financial system which earns money through certain means and burns money while earning.
Though there are several financial parameters which are important to track and control, the primary secret of staying afloat financially and not become insolvent is to have positive free cash flow.
Profit to an organization is like water to human body.
Human beings can survive without water for certain time but must consume adequate water on an average to stay hydrated and alive.
Similarly, organizations can survive without profit for certain time but must gather adequate profit on an average to stay profitable and afloat.
Human beings need water to stay alive but don't stay alive just for water.
Similarly, organizations need profit to stay afloat but don't stay afloat just for profit.
Where do the principles of quality management and process improvement fit in the big picture as far as the wheel of sustained organizational success is concerned?
They are simply like cogs in the wheel, important but still cogs at the end of it!
Sometimes, this notion is there with some quality and process folks that quality is the answer to all that is ailing organizations.
That is simply not right.
Organizations can run into rough weather on account of issues and challenges in respect of factors beyond just the quality of product and service delivered.
These issues and challenges are generally beyond, much beyond, the principles of quality management and process improvement.
Here are some of the major factors that determine sustained organizational success.
- Economic environment (both domestic and global)
- Government regulations (both local and international)
- Technology innovations (including disruptions and black swan events)
- Leadership and strategy (competency and character of CXOs)
- Organizational structure (work assignment based on merit and not loyalty)
- Financial performance (net income and free cash flow)
- Operational performance (quality of product and service delivered)
For any and every organization the core problem is the one and the same.
How to attain sustained organizational success?
Whatever is the final solution, one thing is quite clear.
One needs to certainly look at the principles of quality management and process improvement to seek a solution.
At the same time, one needs to look beyond, much beyond, quality management and process improvement to get to the right solution to the core problem.
