Total Quality Management is the dedicated
effort to providing a continuously-increasing level of quality in an effort to
retain the attention (and repeat business) of your customers. Widely practiced
throughout the world, large corporations are continuously examining their
products and services through the practice of TQM to optimize their
competitiveness, paying particular attention to their core customer base. So
why can’t small businesses do the same?
The short answer is: they can. But if you’re
a small business owner and you want to apply the analytic practice of TQM to
your company, there are a few pitfalls to be aware of, each of which could lead
to excessive costs to your bottom line.
Benefits
of Total Quality Management
When stacking the pros and cons, the
potential for boosting your company’s success makes the implementation of a TQM
business philosophy extremely attractive.
Those who’ve initiated a Total Quality
Management analysis have routinely experienced an improved understanding of
their customers’ needs, an overall increase in customer satisfaction,
streamlined communication within their organization and better problem-solving.
Plus, TQM has enabled many businesses to unify their workforce though enhanced
levels of motivation – a key reward many hope to achieve as a result of the
process.
All of these revelations lead to stronger
relationships with suppliers, fewer product and supply errors and a noticeable
reduction in waste related to business processes.
The
Downside of TQM for Small Business
Though the valuable insight delivered through
TQM makes it extremely attractive, nothing comes without a cost. And that cost
can be excessive, even for large-scale organizations.
Revealing both the strengths and weaknesses
of your organization, the findings from a Total Quality Management analysis can
result in significant increases related to additional employee training as well
as a disproportionate consumption of management’s time. In addition, the
process may include an increase in paperwork and the failure to address the
individual needs of your small business due to an emphasis on ‘process’ rather
than ‘results’.
Where
Your Efforts Should Be Focused
It would seem obvious, but the ultimate goal
of any customer-driven organization, whether large or small, should be customer
service. And when it comes to implementing Total Quality Management for
small businesses, this is exponentially vital.
Small businesses often have limitations on
finances, personnel and equipment while suffering under the added burden of
vulnerability related to unpredictable shifts in consumer behavior. The surest
way to offset this weakness is to operate like a turn-of-the-century specialty
shop, catering not only to a specific niche but, more importantly, developing a
relationship with your customer base.
Before the days of Costco, Walmart and other
national grocery chains, specialty shops that included bakers, butchers and
vegetable grocers provided food for every family in their local neighborhood –
often for multiple generations – by getting to know each family personally and
anticipating exactly what they’d need based on their buying habits, as well as
those of other family members.
In doing so, these early shop owners set the
standard for both product management and customer satisfaction, cultivating a
level of care and attention that often extended to their employees, who were
also taken care of like family.
To promote this essential component of Total
Quality Management, it’s crucial to have a staff that understands the overall process
and is committed to its successful execution. Therefore, just as the shop
owners of old, the savvy small business owner should recruit and retain quality
employees while training and motivating them to work cohesively as a
cross-functional team, resulting in more efficient problem-identification and
resolution, process execution and overall productivity across all business
processes.
These “TQM-enhanced”
employees will have more control over their work and a greater sense of
ownership in the company, translating to a natural drive toward customer
satisfaction and noticeable increases in the overall success of the venture.
