Good quality leads to higher revenue, profit, customer satisfaction, and employee satisfaction. The first step to achieving Good Quality is gaining leadership support and building a Culture of Quality. And for that you’ll need a compelling business case executives can’t ignore.
Addressing this topic, Gerben de Haan, Co-founder and CPO of AlisQI delivered an engaging webinar presentation. He talked about the significance of leadership support and culture in nurturing Good Quality, elaborated on why it’s important to track the Total Cost of Quality across the quality value chain, and shared best practices in building a compelling business case for quality management. This post is a short summary of Gerben’s presentation – sign up for a new session of this webinar here.
Investments in Quality – lacking or backing?
During the webinar, Gerben highlighted that quality is still not seen as a mature business function. This is why it often lacks leadership support and why making the business case for quality management is seen as a struggle.
After discussing the link between culture and strategy, he also points out that as quality professionals, it is our job to create a compelling business case and securing executive buy-in. When doing this, we need to consider that:
- business leaders speak the language of $$$
- we need to translate the quality operation into $$$ using ROI as a Rosetta Stone
- An ROI shows that Good quality is good business
Prove your investment is sound
No executive would reject a compelling business case that has a positive return on investment. That's why it's important to show how quality contributes to the bottom line and top line of the business, paint the bigger picture and show where the money is spent.
Tracking the Total Cost of Quality and considering all quality expenses across the value chain is therefore very important. Still, as research shows and as the webinar attendees also confirmed, only a small percentage of manufacturers do this. And of those who do, the majority focus on failure costs, neglecting the cost of good quality.
After showing how manufacturers can compare performance and cost allocation to industry benchmarks, Gerben explained how an ROI creates a baseline for tracking the Cost of Quality. He then added best practices to building the business case for quality management and how this can be done by using tools that help with the measuring of quality metrics.
Watch a full session of this webinar to learn all about the best practices in building a compelling business case and tools shared.
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