Performance quality does not exist; quality is in the result produced from performance
Methods like Total Quality Management and ISO 9000 Standards did 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.
R-pM manages customer determined quality result by result
Result-performance Management (R-pM) organizes the business by organizing results produced across the business as one-off results or as result chains and by organizing the capital utilized as performance solutions 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 Reengineering 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 performance solutions utilized in the process. Every performance solution must be effective to produce a quality 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 critical performance 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. If the input was defective, and not caught, we trace back the chain to identify the low-quality result with ineffective performance. We can do this because we become familiar with each variable-quality result in chain and the critical performance 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?
R-pm is the only method for consistent result quality management through effective performance
The only way to understand quality consistently across the whole enterprise is to manage the quality of results across the enterprise business. The only way to understand the impact of unacceptable quality is to manage quality along the chain of results. The only way isolate problems producing unacceptable quality is to manage the effectiveness of the performance producing the result.
So, stop striving for performance quality, organize the business and manage quality results.
The answer is Result-performance Management (R-pM) to manage performance effectiveness to produce quality results across the complete business as the business routine. To learn more about R-pM visit result-performance-management.com.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the performance quality problem and other costly 20th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st century management.
Download the R-pM Toolkit to manage value-quality results
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
