Culture of Quality

Accelerating Growth and Performance in the Enterprise

A strategic collaboration between ASQ and Forbes Insights

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Why Explore Culture of Quality?

In Recall Blitz, G.M. Risks Its Reputation

- The New York Times, July 1, 2014

Bad VA Care May Have Killed More than 1,000 Veterans

- CNN, June 24, 2014

Irresponsible to Keep Using deadly Infant Seat After Recall

- Boston Globe, June 8, 2014

Several Drugs in Gov’t Hospitals Fail Quality Tests in Random Checks

- The Indian Express, June 26, 2014

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Forbes: A Powerful and Iconic Brand

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Forbes Insights Survey

Worldwide• 50% C-Suite• 50% Senior Executives

Revenue Groups

• 50% with less than $500 million

• 50% with more than $500 million

Industry Groups

• Manufacturing• Health Care• Transportation• Financial Service• Technology• Consumer Goods• Food & Drug• Industrial Products

1,010 Responses

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Concurrent ASQ Member Survey

Worldwide• Surveying its

worldwide membership.

Revenue Groups

• From organizations of all sizes.

Industry Groups

• From all industry groups.

1,281 Responses

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Dan Afseth, Business Excellence Content Leader, Intuit

Aleksandra Djordjevic, Product Leadership Business, Intuit

Rodney Donaville, Director-Quality Culture, HP

Dr. Kate Goonan, Associate in Health Policy, Massachusetts General Hospital; CEO, Goonan

Performance Strategies LLC

Cesar Diaz Guevara, Presidente Ejecutivo, Coporacion 3D Calidad

Elizabeth Keim, Managing Partner, Integrated Quality Resources

Fan Qing, Senior Manager of International Exchange Dept., China Association for Quality

Roberto Saco, President, Apioria Advisors

Paulo Sampiao, Prof. of Quality Engineering and Management, University of Minho-Portugal

Ernest Phoon Kok Sen, Senior Associate Consultant, IDSC Pts Ltd

Kandy Senthilmaran, Worldwide Services Director, Microsoft Corp.

E. David Spong, Retired, The Boeing Co.

Michael L. Swenson, Supplier Quality Senior Manager, Boeing Defense Space and Security

Joal Teitelbaum, Presidente, Joal Teitelbaum Escritorio de Engenharia

Alex Yap, Principal Consultant and Trainer, Centrex Training and Consultancy

Liu Zhuohui, Vice President, China Association for Quality

Advisory Panel

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Key FindingsOrganizations that self-describe their quality programs as world-class or state-

of-the-art rate C-suite and senior leadership often have a more positive outlook of their

quality program than those with quality-focused titles.

Customers’ demands are a main driver of a quality culture, but executives contend with other factors, like quality’s role in profitability.

More than half of the respondents plan to increase investment in quality in the next 18 months, 17% of which call the investment ‘substantial.’

Only 60% of respondents say their quality vision and values are clearly stated. Quality vision and values are key to a successful quality culture.

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Forbes Respondents

ASQ Respondents

Total Respondents

75%

47%

59%

What Organizations Exhibit a Culture of Quality?

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Why Such Different Views?

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“CEOs and the C-suite tend to receive filtered, big-picture material

that has been ‘prettied up’ for management.”

Elizabeth Keim, Managing Partner, Integrated Quality Resources

Why Such Different Views?

“If you’re close to the challenge, you see the precise changes still

needing to be made – and there are a lot of them. Whereas from the

top, you see great progress.”Dan Afseth, Software Development Leader, Intuit

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“There will always be room for improvement. (Creating and sustaining

a culture of quality) is the responsibility of all leadership of all

organizations from the beginning to the end of our value stream.”

Ken Shead, Vice President of Integrated Quality, Boeing Defense Space & Security

Developing and Sustaining a Culture of Quality

“…Leadership sets the tone, clearly articulates the vision and

expectations.” From there “you need to define what quality means,

define quality goals … and reward those who are making it happen.”

Jeffrey Ray, Director of Operations and Quality, Strategic Missile & Defense Systems,

Boeing Defense Space & Security

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Quality Goes Beyond Primary Offerings

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• Quality’s positive impact on effectiveness and profitability

• Quality is a core leadership value

Executives Drive Quality for Profits, More

In addition to customers, executives cite additional reasons to drive quality:

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• Quality’s ability to serve as a key competitive differentiator

Linking Key Performance Indicators to Quality

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Challenges Abound in Worldwide Quality Adoption…

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Generation Y

Born Mid 1970 to about 2000

Challenges Abound in Worldwide Quality Adoption…

How challenging is it to make quality programs relevant for Baby

Boomers, Generation X and Generation Y?

Very Challenging

10% Baby Boomers

Challenging

35%Generation X

Very Challenging

17% Generation Y

Challenging

36%

Very Challenging

6%

Challenging

50%28

Companies are planning substantial improvements to quality programs over the next 18 months.

…But Positive Change is on the Horizon

• 54% of all respondents plan to increase investment in quality programs.

• 73% of executives say they are making investments in technology to improve performance against quality objectives.

• 90% of respondents say they are investing in technology to meet end customer needs

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What’s Next - Whitepaper

• Deeper Analysis

• Qualitative and Quantitative Analysis

• Available at cultureofquality.org in August 2014.

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What’s Next – Online Self-Assessment

In addition to the whitepaper, Forbes Insights and ASQ will develop a self-

assessment tool that will allow organizations to measure and

benchmark their “culture of quality.” The tool also will offer opportunities

to improve a company’s culture.

The tool will be available at cultureofquality.org for World

Quality Month in November 2014.

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For More Information

Laurel Nelson-Rowe ASQ Managing Director lnelson-rowe@asq.org

+1 414-298-8789 ext. 7433.

Email: CultureOfQuality@asq.orgWebsite: CultureOfQuality.org

For further details on the research contact:

Michael BarryASQ Communications Manager

mbarry@asq.org+1 414-298-8789 ext. 7263.

Kevin BraleyASQ Senior Media Relations Specialist

kbraley@asq.org+1 414-298-8789 ext. 7587.

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