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.
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