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Customer-Centric Business Principles

This document outlines several principles of quality management. Principle 1 discusses the importance of customer focus - understanding customer needs and striving to meet or exceed their expectations. Principle 2 covers leadership - establishing unity of purpose and direction within the organization. Principle 3 is about involvement of people - ensuring their full participation to benefit the organization. Principle 4 describes the process approach - managing activities and resources as processes for better efficiency. Principle 5 discusses the system approach to management - identifying and managing interrelated processes as a system.
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0% found this document useful (0 votes)
6 views14 pages

Customer-Centric Business Principles

This document outlines several principles of quality management. Principle 1 discusses the importance of customer focus - understanding customer needs and striving to meet or exceed their expectations. Principle 2 covers leadership - establishing unity of purpose and direction within the organization. Principle 3 is about involvement of people - ensuring their full participation to benefit the organization. Principle 4 describes the process approach - managing activities and resources as processes for better efficiency. Principle 5 discusses the system approach to management - identifying and managing interrelated processes as a system.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Principle 1 Customer Focus

Should understand current and future costumer needs


Should meet customer requirements and strive to exceed customer
expectations

Benefits
-

Increased effectiveness in the use of the organizations resources to enhance


customer satisfaction
Improved customer loyalty leading to repeat business

Result/ Leads to
-

Researching and understanding customer needs and expectations


Ensuring that the objectives of the organization are linked to customer needs
and expectations
Measuring customer satisfaction and acting on the results
Systematically managing customer relationships

According to Feigenbaum Quality begins by identifying the customer requirements


and ends with a product or service in the hands of a satisfied customer

External- one who uses the product or service, the one who purchases the product
or service or the one who influence the sale of the product or service
Internal- receives a product or service and in exchange, provides a product or
service
3 basic questions
What do you need from me?
What do you do with my output?
Are there any gaps between what you need and what you get?
External customer of a college funders and donors, employers, and graduate
schools
Internal customer- students (in their academic roles), for any employee of the
college
Quality can only be seen through the eyes of the customer

Principe 1: Customer Focus


This standard relates to customer needs and customer service: a business should understand their
customers and seek to meet their requirements. Where possible, they should aim to exceed
customer expectations.
The benefits of this are increased customer loyalty, increased revenue due to the ability to spot new
customer opportunities and increased effectiveness of processes related to customer satisfaction.

Principle 2 Leadership
-

Leaders establish unity of purpose and direction of the organization


Should create and maintain the internal environment in which people can
become fully involved in achieving the organizations objectives.

Benefits
-

Activities are evaluated, aligned and implemented in a unified way


Miscommunication between levels of an organization will be minimized

Result/ Leads to
-

Setting challenging goals and target


Creating and sustaining shared values, fairness and ethical role models at all
levels of the organization
Establishing trust and eliminating fear
Inspiring, encouraging and recognizing peoples contributions

James MacGregor Leadership book A leader strengthens and inspires the followers
to accomplish shared goals. Leaders shape the organizations values, promote the
organizations value and exemplify the organizations values
Burns Leaders and followers raise one another to higher levels of motivation and
morality..
Daimler Chryslers CEO Bob Eaton Someone who can take a group of people to a
place they dont think they can go Leadership is we, not me; mission, not my
show; vision, not division; and community, not domicile
Great leaders have great vision, great imagination, great ideas but they also
implement these ideas through hard work, commitment and flawless execution, In
doing so they motivate thousands of people
12 characteristics of quality leader
They give priority to external and internal customers and their needs
They empower rather than control
They emphasize improvement rather than maintenance If it isnt perfect, improve
it rather than If it aint broke, dont fix it
Little ones that keep the continuous process improvement on a positive track
They emphasize prevention

They encourage collaboration rather than competition


They train and coach rather than direct and supervise
They learn from problems
They continually try to improve communications
They continually demonstrate their commitment to quality
They choose suppliers on the basis of quality, not price
They establish organizational systems to support quality effort
They encourage and recognize team effort
Leadership
-

Values, directions and expectations must address all stakeholders


The leaders need to ensure the creation of strategies, systems and methods
for achieving excellence
Strategies and values should help guide all activities and decisions of the
organization

Principle 2: Leadership
This standard relates to the direction of the organisation: a business should have
clear objectives and employees should be actively involved in achieving this.
The benefits of this are primarily employee engagement and increased motivation:
research has shown that if employees are kept in the loop with regards to business
vision they are likely to be more productive. One of the most comments employee
complaints is lack of communication; this principle seeks to rectify that.
Leadership
-

An education leader is the person who collaborates with the teacher and the
student guardians, meet distinct requirements and expectations of the
customers and direct the resources of the society to the school.
Must have knowledge not only as the law, regulations, management
processes and applications but also content of the curriculum, program,
assessment and development

Principle 3 Involvement of People


People at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organizations benefit.
Key Benefits

People being accountable for their own performance

People eager to participate in and contribute to continual improvement.

Result/ Leads to
People understanding the importance of their contribution and role in the
organization
People accepting ownership of problems and their responsibility for solving
them
People evaluating their performance against their personal goal and
objectives
People actively seeking opportunities to enhance their competence,
knowledge and experience
-

People openly discussing problems and issues

Changing the behavior is the goal. People must come to work not only to do their
jobs but also to think how to improve their jobs
To give the right people direct access to the customers
Involvement of People
-

This can be done by providing a good corporate work culture, providing an


interesting work system and environment, and building the capability of
people to perform assigned tasks in the organization

People
-

85% organizations system; 15% for individual employees

Principle 3: Involvement of people


This principle recognizes that an organisation is nothing without its staff and that their abilities should
be used to full effect for business success.
The benefits of this principle are employee motivation and increased innovation. When people feel
that their skills are being used well they are more likely to work to their maximum potential and
contribute ideas. This principle also emphasises the importance of making employees accountable
for their actions, leading to a greater feeling of responsibility.

Employment
To ask people to change work habits without providing them with the tools for
change only increases resistance to the change process

Most people appreciate and value the trust and responsibility inherent in an
environment that supports empowered people and their actions
Involvement/ Empowerment
-

Every employee is regarded as a unique human being and each employee is


involved in helping the organization meet its goal
Employee empowerment means that management recognize this ability and
provides employees with the tool and authority required to continuously
improve their performance

Principle 4 Process Approach


-

A desired result is achieved more efficiently when activities and related


resources are managed as a process

Key Benefits
-

Lower costs and shorter cycle times through effective use of resources
Focused and prioritized improvement opportunities

Result/ Leads to
-

Systematically defining the activities necessary to obtain a desired result


Establishing clear responsibility and accountability for managing key
activities
Focusing on the factors- such as resources, method, and materials- that will
improve key activities of the organization
Evaluating risks, consequences and impacts of activities on customers,
suppliers and other interested parties.

Process given more importance than the end results


-

End does not justify means.

Proper means will ensure quality results

Process Approach
-

A desired result is achieved more efficiently when related resources and


activities are managed as a process.

Principle 4: Process Approach


The process approach relates to efficiency and the understanding that appropriate
processes will speed up activities.
The main benefits of this, aside from efficiency, are reduced costs due to effective
use of resources, improved and consistent results and focussed improvements

Process approach
Resultscanbeachievedmoreefficientlyifnecessary
activitiesandresourcesarebundledandmanagedasa
[Link],individualprocessstepsneed
tobedefined,inputsandoutputsdeterminedandthe
interfaceswiththeorganizationsfunctionidentified.
Finally,inordertoensurethesmoothrunningoforga
nizationalprocesses,possibleerrorcausesneedtobe
identifiedandresponsibilitiesdetermined
Process Approach

A Process can be defined as a set of interrelated or interacting activities,


which transforms inputs into outputs.

Principle 5 System Approach to Management


Identifying, understanding, and managing interrelated processes as a system
contributes to the organizations effectiveness and efficiency in achieving its
objectives.
Key benefits
Integration and alignment of the processes that will best achieve the desired
results
Result/ Leads to:
Structuring a system to achieve the organizations objectives in the most
effective and efficient way
-

Structured approaches that harmonize and integrate processes

Providing a better understanding of the roles and responsibilities necessary


for achieving common objectives and thereby reducing cross-functional barriers
-

Continually improving the system through measurement and evaluation

Systems Approach to Management


-

Identifying, understanding and managing a system of interrelated processes


for a given objective contribute to the effectiveness and efficiency of the
organization.

Principle 5: System approach to management


Closely related to system 4, ISO define this principle as:

Identifying, understanding and managing interrelated processes as a system


contributes to the organisations effectiveness and efficiency in achieving its
objectives.
This means that multiple processes are managed together as a system which
should lead to greater efficiency.
When implemented, this principle allows a business to focus their efforts on the
processes that are key to their success as well as aligning complementary
processes for improved efficiency. This process fosters a greater understanding of
the interrelation of various business elements.
System approach to management
Each organization is a complex entity; that is why it is important to identify, manage
and understand individual processes and their interactions within the organizational
workflow. This is the only way for organizations to establish objectives effectively
and efficiently
Principle 6 Continual Improvement
-

Continual improvement of the organizations overall performance should be


permanent objective of the organization.

Key benefit
-

Performance advantage through improved organizational capabilities


Flexibility to react quickly to opportunities

Result/ Leads to:


-

Employing a consistent organization-wide approach to continual improvement


of the organizations performance
Providing people with training in the methods and tools of continual
improvement
Establishing goals to guide, and measures to track, continual improvement

Continuous Improvement
-

Whatever quality level youve achieved today wont be good enough


tomorrow
To reach ever higher performance levels every year out, an organization
needs to think systematically about the constant improvement of all
processes that deliver value to its customer
It needs management, production, personnel, information, supplier, and
reward systems that are in gear and geared to the tasks.

Continuous improvement

Think outside the box

Principle 6: Continual improvement


This principle is very straight forward: continual improvement should be an active business objective.
The benefits of this are clear: increased ability to embrace new opportunities, organisational
flexibility and improved performance. Especially in difficult economic times, the businesses that
thrive are those that can adapt to new market situations.

Continuous Development Principle. The process development principle means how


the school designs, manages and improves the education processes. It is possible to
observe the elements such as decision-making, planning, organization,
communication, effectuating, coordination and assessment directed towards the
purpose of the organization within the frame of the continuous development
principle. As regards the school, such elements may contain studies such as student
affairs, personnel affairs, teaching affairs, education affairs, managerialism, etc.
An organization will not begin the transformation to TQM until it is aware that the
quality of the product or service must be improved
Awareness comes about when an organization loses market share or realizes that
the quality and productivity go hand-in-hand
For a change to be accepted, people must be moved from a state of fear to trust
Principle 7 Factual Approach to Decision Making
-

Effective decisions are based on the analysis of data and information

Key benefits
-

An increased ability to demonstrate the effectiveness of past decisions


through reference to factual records
Increased ability to review, challenge and change opinions and decisions

Result/ Leads to:


-

Ensuring that data and information are sufficiently accurate and reliable
Making decisions and taking action based on factual analysis, balanced with
experience and intuition

In order to improve a process you need to measure the effect of improvement ideas.
Access to data and quick retrieval is necessary for effective process
Quantitative data are necessary to measure the continuous quality improvement
activity.
Data based Analysis

In many situations the raw data themselves will provide solution to problems
or atleast provide useful clues

Documentation for traceability


-

Stakeholders are assured of the quality through documentation

Documentation will amount to standardization

To err is human; Documentation helps in curbing human errors

Management by fact
-

Quality has to be specified and monitored.


Anecdote, complaint, keep track, dig out the facts, find the systematic
problem or root cause

Principle 7: Factual approach to decision making


A logical approach, based on data and analysis, is good business sense.
Unfortunately, in a fact paced workplace, decisions can often be made rashly,
without proper thought. The efficiency that will have been imbued in the
organisation after the implementation of prior principles will allow decisions to be
made with clarity.
Informed decisions lead to improved understanding of the marketplace as data is
collated and analysed, and the ability to defend past decisions.
Principle 8 Mutually Beneficial Supplier Relationships
-

An organization and its suppliers are interdependent and a mutually


beneficial relationship enhances the ability of both to create value

Key benefits
-

Flexibility and speed of joint responses to changing market or customer


needs and expectations
Optimization of costs and resources.

Result/ Leads to:


-

Establishing relationships that balance short-term gains with long-term


considerations
Pooling of expertise and resources with partners
Clear and open communication
Establishing joint development and improvement activities

A partnership relationship rather than adversarial one must be developed

The focus should be on quality and life costs rather than price. Supplier should be
few in number so that true partnering can occur
Principle 8: Mutually beneficial supplier relations
This principle relates to supply chains and acknowledges that the relationship between an
organisation and its suppliers is interdependent. A strong relationship between the two will enhance
productivity and encourage seamless working practices.
ISO state that the benefits of this principle are optimisation of costs and resources, fostering long
term relationships and the flexibility of joint responses to changing market or customer needs and
expectations.

Principle 9 Vision based


-

Give a sense of direction


Motivate human resources
Help organization to stay focused
Without vision an organization will fail
Absence of vision will lead to confusion

Principle 10 Reward/ Recognition Assured


-

Recognition is one thing that every human being long for

Motivation is the key factor for sustaining quality initiatives

Rewards may be helpful in motivating non-performers to join quality initiators


Motivation Principle Potential and the performance of the employees is
dependent on high morale and motivation levels and satisfaction and
commitment to the work and the environment and the organization. In this
regard, every supervisor must endeavor to keep the morale and motivation
levels of their inferiors high. In this context, the school management must
conduct studies to increase the morale level of all internal and external
stakeholders of the school. Teachers with high motivation level are more likely to
achieve success at classroom and other activities.

Principle 11 Communication Level Principle Determination and correction of


the mistakes and prevention of reoccurrence of such mistakes lies at the very
foundation of the total quality management. The fundamental approach for mistake
prevention at the total quality insight is to forecast the problems and develop
solutions. In order to enable the total quality management to succeed in this
context, the teachers must be in constant interaction with the students and their
guardians
Practices of Quality Management

Project Management Institute Project Management Book of Knowledge (A Guide to the Project
Management Body of Knowledge). The practice of quality management is usually broken into 3
processes: quality planning, quality assurance, and quality control. The concept of continuous
improvement is an overarching process that is driven by Plan, Do, Check and Act.
1. Quality Planning identifies which standards are relevant and how to satisfy them (examples:
cost-benefit analysis, benchmarking). Components would be creation of a quality management plan,
identification of measures and metrics, acceptance criteria for go-live.
2. Quality Assurance Activities that ensure that the service will have all processes needed to
meet requirements (example: quality audits).
3. Quality Control Iterative process to ensure that quality standards are being met. These are
defined in the quality management plan. The outcomes would be acceptance decisions, rework, and
process adjustments.

Quality Management Best Practices


The following are recommended best practices for Quality Management:
Document Quality measures and metrics should be centrally documented.
Involve Stakeholders/ Collaborative Involve participants and stakeholders in the identification and
definition of service quality standards.
Solicit Feedback - Solicit feedback from customers, stakeholders, and implementation team
regarding quality metrics, proposed measures, and quality baselines.
Be Proactive Focus on detecting and addressing quality early in development before it becomes
an issue.
Iterative - Quality Management is an ongoing, iterative process that is conducted throughout the IT
service lifecycle.
Track Trends Trend quality metrics and measures over time to provide a graphical representation
of the trend of conformity to defined quality metrics.
Review A regular review of quality standards, metrics, and measures is good practice. Depending
on the complexity of the service the review process can be as frequent as weekly.
Thresholds Establish agreed upon threshold that define when certain corrective action needs to
be taken to bring an IT service back within acceptable boundaries of performance.
Analysis Analyze the impact of quality on the product, development, and service.
Act Quickly Obtain quality feedback as quickly as possible to avoid escalation of potential quality
issues.
Archive Quality Quality measures and metrics should be archived as historical data and
incorporated in lessons learned.

Disseminate Quality Disseminate appropriate quality measures and metrics data to


product/service team and appropriate stakeholders.
Continuous Improvement Constantly look for ways to increase service quality.
Triple Constraints Plus One-- Analyze quality based on scope, time and cost impact to the
service. This evaluation will help understand the costs and benefits of applying an appropriate level
of quality. Ensure users expectations are met.

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Quality Planning
-

Identifying which organizational and/or regulatory quality standaards are


relevant to the project and how to satisfy them.
Outlines the rules that define the quality needs of the project, therequired
standards for the projects product or service and how it will be confirmed
that the plannedrequirements are provided in the projects final product.
Quality Management Plan- projects policies, objectives, principles,
responsibilities, and accountability; outlines how the project team will
implement, perform, and measures those policies
Quality Metrics & Measures parameters or ways of quantitatively assessing
a projects level of quality
Acceptance Criteria- pre-established minimum standards or requirements
that a project or product must meet before deliverables are accepted

Quality Assurance
-

The application of planned, systematic activities to ensure that the project


will employ all processes needed to meet requirements.
QA provides the confidence that project quality is in fact being met and has
been achieved.
These actions and the metrics used to measure them are defined in the
projects QMP.

Quality Control
-

interactive process that should be performed throughout the projects life and
involves monitoring and controlling project results to determine whether they
comply with defined quality standards outlined in the QMP and then
identifying ways to eliminate causes of unsatisfactory results.

Best Practices
Document Quality measures and metrics should be centrally documented.
Collaborate Involve project participants and stakeholders in the identification
and definition of project quality standards.
Solicit Feedback Solicit feedback from the project team, customers, and
stakeholders regarding quality metrics, proposed measures, and quality baselines.
Be Proactive Focus on detecting and addressing quality early in the project life,
before it becomes an issue.
Iterative - Project Quality Management is an ongoing, iterative process that is
conducted throughout the project lifecycle.
Track Trends Trend quality metrics and measures over time to provide a
graphical representation of the trend of the projects conformity to defined quality
standards.
Review - A regular review of quality standards, metrics, and measures is good
project management practice. Depending on the complexity of the project the
review process may happen daily but should happen at least weekly for even the
simplest projects.
Thresholds - Establish agreed upon thresholds that define when certain corrective
action needs to be taken to bring project performance back within acceptable
boundaries of performance which are outline within the QMP.
Analysis - Analyze the impact of quality on the product, project, and program.
Act Quickly - Obtain quality feedback as quickly as possible to avoid escalation of
potential quality issues.
Archive Quality measures and metrics should be archived as historical project
data and incorporated into the organizations lessons learned.
Disseminate - Disseminate appropriate quality measures and metrics data to the
project team and appropriate stakeholder.
Continuous Improvement Constantly look for ways to increase project quality.
Triple Constraints - Analyze quality based on scope, time, and cost impact to the
project. When managing competing requirements, evaluate how a change in one
constraint affects one or both of the remaining two constraints. This evaluation will
help the project team understand the costs and benefits of applying a level of
quality

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