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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
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igh
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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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me
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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