Is That A Knife In My Back?!?! Quality Digest (February 2002)

M

Michael T

#31
Re: Maybe I missed something

Originally posted by D.Scott
I'm having an awful time finding what the objection is to Mr. Harrington's article.

The article, as I read it, is predicated on "selling quality improvements to management", not on commitment of management to quality. He is simply saying we need to stop thinking in terms of improved Cpk and start thinking bottom line return to the company.

This is not saying to turn your back on quality tools but to "translate" the improvement into $$$.

The top management of the company is very committed to quality. They couldn't be more committed - they hired you! Harrington is saying as long as you hold up the quality end there is no need for the CEO to worry about quality.

If my system failed, I would feel I really fouled up. I wouldn't be much of an expert if the CEO had to concentrate on quality too. Translating my system improvements to a bottom line dosen't seem too unreasonable to me.

Although he said it in a different way, Mr. Harrington is saying the same thing we have recognized for years. If you want the top management to sit up and take notice, talk in dollars - not parts per million.

JMO - (I now prepare a pile of pillows for when I get jumped on) :ko:

Dave
DOG PILE ON DAVE!!!!! :vfunny: :biglaugh: :bigwave:

Yes, if my quality system fouled up, I'd feel terrible - UNLESS... I had been telling upper management that there were systemic issues that could not be resolved by a peon like me and needed the horsepower of the brass to take care of the issues. If they failed to assist, then they deserve what they get.

As soon as I have a title like Chief Quality Officer with the same authority as the Chief Operating Officer to make systemic changes to the corporate culture; to call into question the decisions of any other officer; to ensure that my decisions carry just as much weight as theirs - then, and only then, would I be willing to take on the sole responsibility of the quality system - it's success AND failure. As long as the chief advocate for quality resides in the middle management ranks - then he/she cannot be held responsible if the quality system isn't working. It isn't the Quality Manager that really fouled up - it's the culture that allows a flagrant disregard for quality that is really fouled up.l

While I have no discrepancy with talking $$$ vice PPM, what about those quality initiatives that have no attributable or measureable dollar value. What dollar value can I place on the reduced orders a customer is sending? If I use last year's figures and prognosticate into the future, I can guestimate that poor quality cost us XXX dollars - but that is only a WAG. How many in upper management will accept that?

Cheers!!!
 
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D

D.Scott

#32
Michael

then, and only then, would I be willing to take on the sole responsibility of the quality system - it's success AND failure. As long as the chief advocate for quality resides in the middle management ranks - then he/she cannot be held responsible if the quality system isn't working.
I guess that is the whole point. Harrington wasn't saying nobody else cared about quality. Of course you are responsible if the system falls apart, but that doesn't mean management is going to stand by and watch everything collapse. Harrington's last comment was that the CEO doesn't get involved unless there is a problem.

His point, and with this I'm sure you must agree, is that in the process of running our department must tune our corporate thinking to blend with the "bottom line" mentality when trying to justify continuous improvement projects.

His example of presenting an improvement which gained the company a six sigma status was perfect. The "pinnicle of excellence" has been attained. Sales can really use this. Under the "old quality" thinking, this is worth pursuing.

He asks us to look at the "bottom line" as well when presenting this initiative. In this case it was bad for the company because it put them into a monopoly situation.

Looking at continuous improvement initiatives from a purely quality perspective no longer is enough. He suggests we consider bottom line as well so we can make better corporate "sales pitches" for our continuous improvements.

I don't think he is advocating leaving quality issues unaddressed. If customer orders are falling off due to a quality issue, I would imagine those issues would be corrected without the involvement of the CEO (another of Harrington's points). If the CEO had to step in to correct it it must be a mess (another of his points). IMO he is saying use all the tools of quality to run the quality system but when you are looking for resources from management, present it in a way to get their attention - $$$$.

Dave
 
M

Michael T

#33
Hmmmmm

Hi Dave & all,

Perhaps it is Harrington's tone that set my teeth on edge... :confused:

You are correct, I doubt management will stand by and watch everything collapse, and, if everything is collapsing - then the Quality Manager has really fallen down on the job. However, the laissez faire tone really rubs me the wrong way ... Don't bug me until things are a problem and if things are a problem - you better start looking for another job.

Another thing that doesn't sit well is Harrington's list of "What concerns me as COO?" Second to the last on the list he finally mentions, "Are any of our current customers dissatisfed with our product?" This is not the same as, Are our customer satisfied with our product? It sounds to me like he doesn't care if customer are satisfied, just if there are any that are dissatisfed. And what if they are? As long as they are selling their quota for that quarter - what does it matter? As long as spending is within budget - what does it matter?

I don't want to beat a horse to death. I understand the financial aspects of business decisions and realize that there are a great many more considerations that go into business decisions than quality. I realize that in order to get the attention of the top brass we (quality professionals) have to speak their language. Perhaps that is the problem - we need a new language. However, I believe that relegating quality to the level I percieve Mr. Harrington has is extremely dangerous and one of the reasons why the United States has been trying to play catch-up with the Japanese for 20 years.

Am I way off base here?
 
M

M Greenaway

#34
Agreed

I agree entirely Michael.

Not only do quality professionals need to appreciate business realities, top managers such as the guy who wrote the article need to realise the role quality can play in them achieving their primary objective of increased profits. That is where the article fails in a very bad way.

Both parties need to understand that they both in fact have the same interests at heart.

I dont like the thread in the article that seems to automatically blame quality for any quality problems. Yes the quality function has a responsibility for assuring the quality of the product or service, but it takes two to tango.
 
K

Ken K

#35
I'm rather surprised a Harrington article could generate such a buzz. Some interesting thoughts have been presented here and it makes for interesting reading.

But all you need to read is the title;

"When quality professionals do their jobs right, COO's don't think about quality."

IMO, that's part of the whole problem.
 
J
#36
Just got back to catching up on this thread.
Very interesting discussion. I am intrigued by the Idea of shareholders as suppliers/customers/stakeholders. But I think there is another slant to this.

Maybe the "customers" the CEO is trying to delight aren't the same "customers" we are trying to delight.
Shareholders, at least the big ones, hold the key to many top managers jobs. If you don't run the company to our satisfaction then out you go and we'll bring in someone else.

The "shareholder/customer" will base his/her purchasing on what they consider to be the companies quality. Namely the price per share and the dividends received. If this "quality" is not delivered, then they sell their stake in the company - share price suffers - operating capital becomes tight - internal costs are cut etc etc etc.....

Downward spiral.

The long and the short of this is:
The CEO's de facto customers don't exactly match the ISO definition.

Cynical? Yes. Short sighted? Yes. The way of the world? Yes.

James
 

Kevin Mader

One of THE Original Covers!
Staff member
Admin
#37
There are many systems running within an organization. Some recognize many: some only recognize a few, couple, or one. I think Harrington’s tone is what is setting some of us off. I get the impression that the COO is so consumed with running one system (business) that he hasn’t the time to be involved with the other (quality system) and Harrington’s article serves as a pardon. The Quality Manager is left to deal with the quality system and deals with the outcomes. In a result-oriented business, I’m afraid it doesn’t look too good.

Many Quality Managers/ISO Management Reps are given the Responsibility to make Quality and Quality Systems happen, but how many out there have the Authority to do this (right on Mike!)? I’ll bet a very small percentage: most COOs are power freaks who rarely give up the reigns of control. Instead, the Quality Manager must achieve critical mass to be truly effective, and this is not an easy task when the mantra is one of making profit, the means by which we have seen are not always above the level. With tremendous personal effort, the QM makes it happen, for the short term anyway. In the long run, however, the QM is doomed (if not by the proverbial axe, one searches for greener pastures).
 

Kevin Mader

One of THE Original Covers!
Staff member
Admin
#38
James,

Shareholders are not Customers (unless they are buying the stuff you make). Even at that, it is a stretch to imagine that they are one in the same. It is a closer match to make the shareholder a supplier who supplies Capital in exchange for ROI in the form of dividends and higher stock prices. This should not be a short-term venture, but when one is looking at quarterly statements to run one's business, this is what you get.

However, your point is well taken: CEOs know who they need to please in order to remain in their position. However, many a time the game is played to maintain position at the cost of many others below. The higher you go, the harder it is to abandon a failing paradigm, the same one that brought you your current success.

Being the "way of the world": it is true of this time and this place (most places). However, this doesn't necessarily make it right .

Regards,

Kevin
 

Kevin Mader

One of THE Original Covers!
Staff member
Admin
#40
James,

No truce necessary. Your points are all valid and unfortunately so.

I would hardly think anything you said goes way out on the limb, so your backside is quite covered.

I am too much of a visionary for my own good sometimes. Dave usually gives me a shot here and there to get me back to reality, so I don't mind it much when others do it. I never take it personally.

My contention is this: those at the top risk the most when they play to the needs of the system. Investors/Boardmembers rarely have a systems view, and as such, see themselves at the center of it all. CEOs do what they can to create balance, and have better success when times are good. When things get tight, they start playing it closer to the needs of the Investors. They know where their bread is buttered and after all, they have families too.

The problem is that these folks are paid the best in the company. With risk comes greater compensation. However, if risk is mitigated through adherence to less than ethical/moral/legal practice, just what of theirs is hanging out? We will have to see how this Enron thing turns out. My guess: we might have Mr. Lay (?) in our backyard here in CT at the country-club prison. Just a slap on the hand.

Being paid more means you are compensated to do the right things in my opinion. If CEOs wave this responsibility/obligation, then in my opinion they are stealing the wage!!

Kevin
 
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