Since W. Edwards Deming began to profoundly influence American manufacturing in the early 1980s, many American companies have been focusing significant resources on product quality.  Unless you’re living under a rock, you can’t get through a week without hearing about ISO standards, Total Quality Management (TQM), Six-Sigma or the Malcolm Baldrige National Quality Award.   

So, after more than two decades of quality-focus, we’re all now overwhelmed with the quality of goods and services we receive each day, right?  That’s clearly not my perception – is it yours?

In fact, I’m often astounded that my father is still using many of the same electrical appliances he bought when I was growing up.  He really does still use the same toaster, telephone, box fan and many other items we had in the 1960s!  I, on the other hand, have had 8 toasters, dozens of telephones, and half a dozen different fans since my bride and I established our own household just 23 short years ago.  What’s wrong with this picture? 

Many companies have focused only on the quality of their products, but many have neglected the quality of their processes and the quality of their relationships. 

It has been said, “your processes are perfectly designed to produce the quality of the products you’re making today.”  TQM teaches that faulty process gives people the opportunity to make mistakes that translate into poor quality.  Yet, companies still seek to lay the blame of poor quality at the feet of their employees.  Instead of continuous improvement, we see continuous erosion of employee morale. 

EVERY quality problem has a solution in modifying a process so as to prevent the problem in the future.  Developing and implementing these process changes can be done in harmony with the people who perform the work. 

Though I’m a big fan of Deming, a fellow Iowa native, quality business is still all about relationships.  If you want your company to be known for quality, start with treating your people like they’re valued.  If they know you care, they’ll communicate care to your customers by what they produce and how they communicate.  If your customers feel appreciated, they’ll tell their friends and family, and you’ll have lots of new business coming your way.  Is it really that easy?  YES – and no. 

The equation of relationship really is simple – treat others as you would like to be treated.  

But building those relationship chains is a long-term strategy.  Unfortunately, most companies today think short-term virtually all the time.  They choose the short-term because, they say, they must “return value to the shareholder.”  It’s a high-sounding justification, but focusing on the short-term does an enormous disservice to the very shareholders who truly seek value.  

Without a strong relationship chain, that connects company values through its employees and customers, that company is not built on a solid foundation.  At the first storm of financial trouble, an unforeseen product defect, or a leap in technology taken by a competitor, the company without the firm foundation of quality relationships is likely to crumble or be gobbled up by a strong competitor.  The shareholder typically gets left holding the (empty) bag. 

For my money, I’d rather buy my products and services from a company built by people who truly care about their work – even if there is no quality system in place.  But the two are NOT mutually exclusive. 

If you want to create a true sustainable competitive advantage – BUILD BOTH!

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