Quality strategy

Quality strategy
See also
Context of the organization Business needs Balanced scorecard perspectives Functional strategy Quality of management Management by culture Hospitality product quality Structure follows strategy Business capabilities

Quality strategy is the part of organization strategy related to quality. Quality strategy is part of market and productivity strategies with very high significance. In addition to product innovations in formulating quality strategy the company must take into account the requirements of the markets and abilities of producer (service provider). There is no doubt that quality is a key concern for the company. It stands out from the others and is the only effective way to beat competition. quality and cost competition play a key role in determining the place of the company's products on the European market.

Factors influencing strategy

The development of an appropriate quality strategy does require to take into account a number of factors:

• external - environment - on the one hand, the challenge for the company, and on the other hand limit to its capabilities; they are: political, cultural, technological progress, changing needs of consumer, market volatility, increasing competitiveness, integration, globalization, lack of energy resources,
• internal - which are associated with capabilities of the company and its employees; it is mainly connected with skills and competences in management, marketing, design, research and technology (S. Sudoł 1992, s.46-74).

Principles of quality strategy

In formulating the quality strategy managers should be guided by the following principles:

1. Quality strategy must be comprehensive,
2. The crew is aware of the existence of the quality strategy and feels the need to participate in its implementation,
3. Quality is the central value and constitutes a source of all the other values in the company (the so-called. Model 7-S's by McKinsey: system, strategy, organizational structure, style, skills, selection of the people),
4. New quality strategy requires substantial changes to the organizational culture of the company by changing the substance of the action necessary to meet the expectations of the customer, (CEO of SAS in 1981. noted that every customer of Scandinavian Airlines had contact with 5 employees of this company and experienced 5 "moments of truth". Because in a year airline has 10 million passengers, SAS's success depends on 50 million such "moments of truth") (J. Carlson 1987, s.3),
5. Adopted strategy should require the full involvement of employees in the implementation of change,
6. Creating a new quality can be divided into three phases that should be included in the adopted strategy:
   • First phase - focus of organizations on creating new products, working without mistakes as the main objective of quality management,
   • Second phase - business attitude focused on economic process (decision-making and implementation) involving quality and improvement of processes,
   • Third phase - achieving fair marketable quality by creating quality as a way of life,
7. Quality strategy should assume implementation of TQM principles in organization, "leadership by quality" as a main purpose, quality is a fundamental principle for the company and all employees participate in its improvement,
8. The introduction of new working methods and management, which will adopt creative talent and energy inherent in all employees
9. Quality is value, therefore, the implementation of the quality strategy must lead to cost reduction and rewarding for the high quality by productivity growth,
10. Realization of quality strategy must lead to the implementation of the mission and clearly set purpose of the organization,
11. Strategy must be based on the idea that the adoption of the active and positive attitude to problems in organization is conducive to their effective overcome.

Quality strategy implementation

The implementation of quality strategy requires defined product strategy. The most important factors determining the success of the product strategy are:

• the level of income and price elasticity of demand for manufactured products,
• knowledge about the needs and preferences of customers,
• information on market size and its range,
• the ability to understand the design of products and to remove its weaknesses and threats,

See also:

• Functional strategy

Examples of Quality strategy

• Establishing a Quality Management System (QMS): A QMS is an important tool that can help an organization achieve its quality objectives. It helps to ensure that processes and products are of the highest quality and comply with regulations. A QMS should include policies, procedures and processes that ensure that the organization is regularly monitoring and improving its performance.
• Implementing Quality Control: Quality control involves the inspection of products to make sure they meet the required standards of quality. It helps to identify any potential problems or defects in the products before they reach customers. Quality control can also be used to identify areas where improvement is needed.
• Investing in Quality Training: Quality training is an important part of a quality strategy. It helps to ensure that employees have the necessary skills and knowledge to produce and deliver products of the highest quality. Quality training also helps to increase employee engagement and motivation.
• Implementing Continuous Improvement Strategies: Continuous improvement strategies help to ensure that an organization is constantly striving to improve its processes and products. This can include the use of data analysis, customer feedback and process audits to identify opportunities for improvement.
• Establishing Quality Metrics: Quality metrics are important for measuring the performance of an organization’s quality system. Quality metrics should be regularly monitored and used to track progress towards quality objectives. They can help to identify areas where improvement is needed and ensure that the organization is meeting its quality goals.

Advantages of Quality strategy

• Quality strategy helps to create a competitive advantage for organizations. It helps to differentiate products and services from competitors, improving the customer experience and increasing customer loyalty.
• Quality strategy increases operational efficiency, as it allows organizations to streamline processes, reduce costs and increase profits.
• Quality strategy helps organizations to develop a better understanding of customer needs and expectations, enabling them to deliver better products and services.
• Quality strategy helps to ensure that products and services meet the highest standards of quality, safety and environmental sustainability.
• Quality strategy helps to strengthen an organization's reputation, as customers are more likely to choose a product or service with a good reputation.
• Quality strategy helps to improve employee morale and engagement, as employees are more motivated to work on quality initiatives.
• Quality strategy encourages innovation, helping organizations to stay ahead of the competition and develop new products and services.

Limitations of Quality strategy

• Quality strategy is limited by the resources available to the company. For example, the company may not have the financial resources to invest in the highest quality materials or services.
• Quality strategy is limited by the capabilities of the organization. It is not possible to create a quality product or service if the organization does not have the skills and expertise necessary to do so.
• Quality strategy is limited by the market. If the market does not demand a certain level of quality, the company may not be able to invest in quality as much as it would like.
• Quality strategy is also limited by customer expectations. The company must be able to meet the customer's expectations in terms of quality, or else the customer may go to another company.
• Quality strategy is limited by time. Companies may not have the time to implement the necessary quality control measures in order to ensure the quality of their products and services.
• Quality strategy is limited by technology. The company must have access to the latest technology in order to be able to produce high quality products and services.

Other approaches related to Quality strategy

• Customer focus: Organizations must focus on customer needs, wants and expectations and strive to meet them in order to succeed.
• Process-based approach: Organizations must view the quality of their products from a process-based approach, by looking at the entire process from beginning to end and ensuring that each step is completed with the highest possible quality.
• Quality improvement: Organizations must continuously strive to improve their quality standards, by introducing new technologies, employing innovative processes and investing in training.
• Quality assurance: Organizations must have an effective system of quality assurance in place, to ensure that their products adhere to the highest quality standards.
• Quality culture: Organizations must create a culture of quality, where quality is seen as an integral part of the organization’s mission and is embedded in all activities.

In conclusion, quality strategy is an important part of an organization’s strategy and involves customer focus, process-based approach, quality improvement, quality assurance and quality culture. These approaches must be taken into account when formulating a quality strategy, in order to ensure the success of the organization.

References

• Barclay Ch.A. (1993), Quality Strategy and TQM Policies: Empirical Evidence, Management International Review, Vol. 33
• Belohlav J.A. (1993), Quality, Strategy, and Competitiveness, California Management Review, Vol. 35 No. 3
• Ittner Ch.D., Larcker D.F., Quality strategy, strategic control systems, and organizational performance, Accounting, Organizations and Society, Volume 22, Issues 3–4