TQM is a concept that originated in the 1950s in Japan.
However, it has its roots in the American way of looking at things since the founding father of TQM, Deming, was an American.
In the beginning, total quality management or TQM was meant to take care of certain aspects in an enterprise.
Unfortunately, over last several decades, TQM fans have tried to project it as something more than it was meant to be.
That is one of the key reasons behind the problem with TQM’s positioning.
For the fans, the key principles of TQM are like biblical truths.
These principles are, however, not original, or innovative.
They have their basis in the concepts and theories related to general management.
Like there is nothing original or innovative about following a process-based approach, using data for decision-making, etc.
Also, the use of the terms total and quality in TQM is quite misleading.
Total in TQM means all parts of the enterprise and the focus is on how the individual parts support quality of the products and services.
That is a problem since for an enterprise to succeed the various parts need to focus on many other aspects much beyond the quality of the products and services.
Quality in TQM pertains to how well something functions and how every process in every part of the enterprise should work at its optimal best.
That is another problem since it extends the scope of the term quality to mean everything under the sun beyond its core meaning, where quality means quality of design or quality of conformance to the design.
The core need of any enterprise is first to survive and then to grow, organically or otherwise.
The way to achieve the above is quite simple - remain competitive and stay profitable.
For example, Nokia or Kodak were probably doing perfect as far as TQM principles go.
What was missing was the lack of right strategy due to serious misreading of the shifts in the competitive landscape and market dynamics.
At this point, TQM fans will jump and say, "doing that is also a part of TQM".
Well, not really.
That way everything that goes right is due to TQM and everything that does not go right is due to lack of TQM!
That is quite ludicrous.
Achieving enterprise success is hard.
And sustaining the success achieved is even harder.
The key thing for enterprise success is to focus on enterprise excellence (EEX).
Achieving and sustaining EEX is inextricably linked to and profoundly dependent on two broad aspects:
- Enterprise Strategy - Setting and calibrating the direction and strategy the enterprise will follow in the near and distant future which includes markets the enterprise will operate in and product/services it will sell
- Enterprise Operations - Adjusting and optimizing the effectiveness and efficiency in the operations of the enterprise at the overall level as well as in its various parts which includes the quality of products/services it will create
It is certainly true that application of TQM is beneficial to ensure quality of products/services.
However, there are many other aspects that can impact enterprise success.
For example, the way the enterprise does cash flow management is very important to ensure its profitability and solvency.
Ask any CEO or CFO and they will tell the same.
But that has nothing to do with TQM.
As a matter of fact, the overall use of TQM is limited to specific aspects of the continuum of EEX ecosystem.
It can be said that TQM is more of an engineering and technical thing that uses lot of general management practices to strengthen itself.
It should, however, not try to become overarching like EEX.
Many enterprises focus on blindly putting TQM in place while missing the larger EEX context.
Focusing on TQM for TQM sake may be a good idea for TQM advisors, TQM consultants, TQM trainers, TQM program in-charges, etc. but not for EEX and certainly not for the enterprise.
Like TQM talks about customer first and primacy of process.
There is a lot that is wrong with that.
Sometimes customers may not be reasonable and fair and need to be dealt with accordingly.
From EEX standpoint, the enterprise may even refuse to continue its association with such customers.
Using standardized processes is fine as far as the routine operational activities and transactional tasks are concerned.
However, for innovations and strategic initiatives there cannot be standardized processes.
From EEX standpoint, for such things the enterprise may employ certain philosophies and principles and not be hung up on using a defined process because there would be none.
Unfortunately, the TQM fans think that TQM is the be all and end all of everything.
That is not a correct view.
Like the other methods and tools, TQM has its place in the continuum of EEX ecosystem and can be effectively leveraged when used in an appropriate manner in the right context.
