4

A Middle East Point of View - Deloitte US · PDF fileA Middle East Point of View ... risk management practices or about ... quality product or service in the first place, then its

Embed Size (px)

Citation preview

A Middle East Point of View | Spring 2012 | 45

Pick up the business section of anewspaper or tune in to one of the manybusiness programs on TV and there is agood chance someone somewhere will bearticulating a view on the quality agenda,about organizations having sound (orpoor) risk management practices or aboutexecutives effectively (or ineffectively)managing reputational issues faced bytheir organization.

On theroad toquality

Quality

Not unreasonably, the casual observer may be forgivenfor thinking that, if the organization had delivered aquality product or service in the first place, then itsexecutives would not now have to be spending valuabletime looking backwards, revisiting past decisions andconcentrating on fire-fighting risk and reputationissues – with their implied threat of serious damage toboth, brand and image in the marketplace. Effectivequality management would have allowed for significantavailable time instead, to concentrate on theorganization’s main goals – including the delivery ofsuperior value to stakeholders.

As a corollary and a reasonable, but not excessive,amount of management time would then be needed toconcentrate on the business of risk. Effective pursuit ofthe quality agenda can be regarded as an importantcontributory step in the successful management ofpotential risk and reputational damage. This is not to saythat achieving quality is a panacea that will guarantee asmooth, trouble-free ride. Far from it: there are alsomany external threats to an organization, includingphysical security, counterparty and political risk and evenover-the horizon risks that are presumed to be out therebut have not yet been identified – all of which areoutside the direct delivery orbit of a quality product orservice. However, it would also be reasonable to expectan enlightened organization to have a comprehensiveenterprise risk framework in place, or at minimum abusiness continuity plan that would anticipate and setout a blueprint for the navigation of potential threats.

Nailing down qualityWhether the organization is delivering products orproviding services, in order to successfully manage thequality agenda it is necessary to define what theorganization and its end users perceive as quality,capture it by having an operational framework in placeand then devise a plan to achieve and maintain thestated quality objectives. It is as important to ensure thatall personnel within the organization are on the samewavelength when it comes to the pursuit of theseobjectives. Similar to the proverbial “attempting to nailjelly to a wall,”1 determining what quality is exactly canbe challenging, as it comes in many shapes and formsand can be rather difficult to pin down in relation to anorganization’s goals. Webster’s Dictionary, for example,offers various definitions of quality, such as “a peculiarand essential character,” “an inherent feature,” “degreeof excellence,” “superiority in kind.” Unfortunately,today’s vocabulary has rather overworked the qualityconcept and applies it on a daily basis to a wide varietyof situations, so we now also understand quality in thecontext of, for example, fathers spending quality timewith their children, soccer players delivering a qualityball into the box or people who read a qualitynewspaper.

Preparing for the journeyRealistically, organizations are typically concerned withthe quality agenda when they recognize the need topublicly demonstrate their capabilities or to improvetheir services, ultimately with a view to increasing theirmarket share. Sometimes management will recognize inprivate that they need to do better and will voluntarilyundertake a comprehensive overhaul of their existingsystems and procedures. For those that procrastinate,the marketplace tends to do the job for them.

As mentioned, management should initially determinewhat quality means and what it stands for in terms oftheir products or services, with a view to determiningwhere improvements can be made and how ‘superiorityin kind’ can be achieved. This assessment should alsotake into account the marketplace perception of theofferings. Some organizations will have in place a

46 | Spring 2012 | A Middle East Point of View

Determining what quality is exactlycan be challenging, as it comes inmany shapes and forms and can berather difficult to pin down in relationto an organization’s goals

A Middle East Point of View | Spring 2012 | 47

Quality Management System (QMS) manual to definethe procedures they require in order to achieve theirquality objectives, but many others will not. For thoseorganizations that are embarking on the journey for thefirst time, the appointment of a focal point within theorganization to take ownership of the quality project isstrongly suggested. Do not underestimate the numberof man-hours that will be required to complete theinitial set-up. As the QMS manual builds, a number ofgaps will likely become evident between policies andprocedures the organization has in place and what itultimately needs in order to achieve its quality objectivesand those gaps may take time to plug and could proveexpensive to implement. When a QMS manual is inplace, management will want some assurance thatoperations are in fact being conducted in accordancewith stated policy and this is where a Quality Auditdepartment proves its worth in ensuring that proceduresare being followed and expected standards are in factbeing met. It is also important that the system producesdocumentary evidence of performance to enableeffective audits to be carried out and for processes to be performed again as necessary.

Quality is not just about process, work quality ororganizational issues. A quality management system can only be as effective as the people who will beresponsible for maintaining it. Effective, regular trainingfor all personnel is essential. The goal is to embedquality into the very fabric of the organization so that its pursuit becomes almost second nature. Quality canalso be reflected in the way the organization isperceived, how it treats its people and what it does for the community. Sometimes, simple solutions are the most effective – for example, an employee free toreport unethical or shoddy work practices to superiorswithout fear of retribution is a very powerful tool. Forprofessional services firms, avoiding the wrong type ofclients, acting independently at all times and hiring goodquality talent might be the answer.

In conclusionFor those organizations wishing to explore the qualityagenda further, there are a number of both, nationaland international standards bodies, such as the

International Organization for Standardization (ISO), that encourage organizations to become quality certifiedand they provide extensive resources to support thatobjective. When a QMS is embedded into theorganization’s culture it can then be used as afoundation for developing and implementing othermanagement systems such as an Information SecurityManagement System (ISMS) or a Business ContinuityManagement System (BCMS). ISO certification in theseareas is also possible.

It would be only fair to point out that, depending on the niche the organization is intent on building for itselfin its marketplace, there is also a perfectly acceptableand legal market demand in many parts of the world for low-cost, low-quality offerings.

No doubt, the quality journey is an interesting one. Theroad can be bumpy but there is much scenery to admirealong the way. However, beware, there is no finaldestination as this is a journey of continuousimprovement unless, of course, quality inertia orcomplacency is the goal.

by Graham Lucas, Risk and Reputation leader, Deloittein the Middle East

1 hint: the secret for nailing jelly to a wall is to nail the concentratedcubes, but not to mix with water – alternatively, try increasing thedensity of the jelly by adding more powder and less water thanthe recipe says

Quality is not just about process,work quality or organizational issues.A quality management system canonly be as effective as the people whowill be responsible for maintaining it

Quality