Performance quality does not exist; quality is in the result produced from performance
Methods like Total Quality Management, Six Sigma, and ISO 9000 Standards do not provide the quality management needed
We have had structures like Total Quality Management (TQM) and the ISO quality system for ISO 9000 standards and certification, which were found lacking as a management method. We also reengineered our business process with BPR, specifically to help us manage performance quality. But, performance quality proved difficult to comprehend and manage. Six Sigma provides another structure for our final production quality. Now we have business process and performance management (BPM) to manage the quality of our processes and performance. Even with all this, we still have not found a way to manage quality as the business routine of everyone in the enterprise.
Customer-determined quality is managed result by result by managing the businss
Quality must be managed as part of the managed business defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. By definition, in the business, value and quality are attributes of results, the economic outputs produced across a managed business. Result-performance Management (R-pM) provides the knowledge and procedures to organize the business by organizing results produced across the business as one-off results or as result chains and by organizing the capital utilized as solutions in business performance to produce each result. With an organized business, the company can manage quality as an attribute of results, not performance, and can manage real quality for any result, not just final results from production. Every result has a customer who is willing to pay a result value for a determined level of quality. Quality and value of each result must be acceptable to the customer. To find out how manage result quality Join the R-pM community to download the R-pM Business Management Guide “How to Build Result Value-quality Chains“.
Business Process Re-engineering emphasized Performance Quality
Does “performance quality” make sense to you? When you buy something, are you concerned about “performance quality”? Even for a service, what is more important? The performance quality in delivering the service or the quality of the result of the service? The result of the service is your input result that you add value to in your result value-quality chain.
We need a way to understand quality consistently across the whole business, to understand the impact of unacceptable quality, and to isolate problems producing unacceptable quality.
As we see with our business processes, quality happens along the process. But how do we manage performance quality? Many set up performance checkpoints, but what are they really managing at these checkpoints? The fact is the only place we can formally manage quality of reengineered business processes is the quality of the final output result from the process.
Stop striving for quality performance, strive for quality results
Quality is an attribute of the result; not an attribute of performance. Effectiveness is an attribute of performance. Instead of managing performance quality, we need to define the specific results that are produced in the business process. We then need to define the specific capital solutions utilized in the process. Every capital solution implemented to produce a result must have the qualifications necessary to produce a high-quality result. Every capital solution then must be utilized effectively in performance to produce a high-quality result. A restaurant must have qualified human chef and waitress solutions to produce high-quality meal and satisfied-customer results. In addition, the performance of the chef solution must be effective to produce a high-quality meal result and the performance of the waitress solution must be effective to produce a high-quality satisfied-customer result.
Result quality and value is determined by the customer
Every result has an internal or external customer who is willing to pay a value that exceeds total performance costs in order to have the result produced. One factor in the value of the result is quality. Average-quality results have less costs and value than high-quality results. The customer determines the quality level desired in the result that is appropriate to the cost and value of the result. The result manager responsible for the result agrees to produce the result at a cost below value to produce value-added and with quality acceptable to the customer that uses the result.
Quality determinates are set for each result of a variable quality to show how quality is measured or determined. A level of performance effectiveness is required from qualified capital solutions that produce the determined quality in the result. Quality is managed for critical solutions to produce result quality specified in quality determinates set by the customer. Quality can be set for a one-off result like a special report or for results in a chain that lead to the final result for the external customer.
Business processes are organized as value-quality chains to manage quality along the chain
Our order fulfillment process is actually a value-quality chain that includes many results like order received, credit checked, inventory checked, order approved, inventory picked, invoice prepared, delivery organized, order delivered, customer receipt confirmed, etc. The only way to manage quality within the process is to manage the quality of these results. Any one low-quality result could lead to an unfulfilled order final result. If we have a defective result, we need to know the specific performance that produced the result to identify and correct the ineffective performance or an unqualified solultion. If the input was defective, and not caught, we trace back the chain to identify the low-quality result with ineffective performance or unqualified solution. We can do this because we become familiar with each variable-quality result in chain and the critical performance of capital solutions producing result quality.
If we only manage the output result quality at the end of a process and performance quality in the process, are we really doing what we should be doing?
Result-performance Management (R-pM) provides the knowledge for actual business and quality management
Result-performance Management (R-pM) is the only source of knowledge and expertise on how to manage the actual business. Forward-looking enterprises are now using R-pM guidance to organize and manage their business to gain breakthrough advantages over competitors burdened by unsolvable 20th century management problems. Business management is explained and documented in the Business Management Toolkit. The Toolkit provides procedures for actual business management and maintains emerging 21st century management conventions, definitions, and standards. Management consultants who base 21st century business management services on R-pM knowledge are licensed to help enterprises learn, organize, and manage the actual business. Business management knowledge and the Business Management Toolkit are available and supported today at result-performance-management.com.
The Solution to the Economic Crisis is explained in free downloads
Three free white papers explain the dead-end 20th century management problems, such as the failure to plan, account for, and manage the actual business, that caused the economic crisis, the way to eliminate the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building a structure for financial and economic management, and organizing local businesses to flourish in the eventual recovery.
- How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20th century management problems and the solution to eliminate the problems
- Business management; the only Solution to the Economic Crisis explains how to plan and manage the business to capture business data and provide management the information needed for actual business, corporation, industry, and economic management
- A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management, stimulate the economy, restore confidence, organize businesses to flourish in the recovery, and manage economic cycles to prevent future crisis
These three white paper downloads are available to R-pM Community Members at result-performance-management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email address and personal password. Your email address is protected and used only for download problems, product updates, and occasional R-pM Member news and white papers.
