Superior Quality For Sustainable Profits

How To Create Superior Quality For Sustainable Profits

Why take the risk?

Being innovative and creating superior quality can be very difficult whether it is a landmark construction project or other unique projects. Budget blowouts and quality issues often occur when you try something different. Some of the risks are evident.

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Being innovative is not enough!

Many innovative projects have failed because of poor quality management. Having been involved with billion dollar projects, nothing is more disappointing than seeing innovative projects fail because of poor quality management. Innovation and quality need to go hand in hand for sustainable profits and you have to own the right risks.

Is the western world loosing the ability to combine innovation with quality?

Most of the new landmark construction projects are now in Asia or the Middle East. The same trend is affecting the manufacturing industry. There was a time when they could not produce good quality in Asia, but now they can. We know that we need to innovate in the west if we want to be able to compete, but let's not forget about quality management. Asian countries are now using Northern European quality management systems to beat the west at their own game. Both Volvo and Mercedes Benz are now manufacturing high quality vehicles in China.

Directors and Senior Managers need to focus stronger on quality & reputational risk

Companies had to cut costs as a result of the GFC and this had an adverse effect on the quality management in many organisations. The most common mistake we saw was that they failed to recognise the danger of reputational risk factors and this came at a great cost. It takes many years to build a great brand, but not long at all to create permanent damage when the reputation is damaged. Directors and senior managers need to take a greater responsibility for the quality & reputational risk management within their organisation and set the pace for other staff members to follow.

More proactive and broader quality audits and inspections need to be carried out

ISO 9001: 2008 is a great international standard for quality management systems when used proactively. An external auditor of this standard can take a more impartial and broader view of the organisation during external audits. These do not have to be certification audits and when the objective is to create sustainable profits, there will be more support within the organisation. Individual contracts and sections can also be audited when necessary.

Auditors focusing on sustainable profits and productivity will help the most

Qualified auditors and consultants who focus on sustainable profits and improved productivity will help the organisation the most. Not the ones who will just nag about all minor mistakes. Deficiencies can then be identified, risks mitigated and improved operating procedures can be developed. If they are too bureaucratic they will not get enough support within the organisation and the quality can suffer as a result. The auditors/consultants also need full support from the directors and senior management so that hey can help you creating superior quality for more sustainable profits.


Posted on 10/04/2014 by Peter Karlsson

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