A strategic collaboration between ASQ and Forbes Insights

ACCELERATING GROWTH AND PERFORMANCE IN THE ENTERPRISE

Why Explore Culture of Quality?

Honda Grandees Chide CEO Over Quality, Recalls

- Reuters, Nov. 12, 2014

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

- CNN, June 24, 2014

Konkan Railway imposes fine on caterer for poor quality food

- The Times of India, Sept. 4, 2014

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

- The Indian Express, June 26, 2014

“Since the launch of our Quality Driven Management program in 2008 … we have been able

to achieve hundreds of millions of dollars of cost savings.”

Culture of Quality Benefits

Rebecca Yeung, Managing Director, Service Experience Leadership,

FedEx

Survey Demographics

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

• Technology

• Consumer Goods

• Food & Drug

1,010 Responses

Worldwide

• Surveying its worldwide membership

Revenue

Groups

• From organizations of all sizes.

Industry Groups

• From all industry groups.

1,281 Responses

Forbes Survey ASQ Survey

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.

Self-Described World-Class Organizations

Senior Executives

Quality Professionals

Total Respondents

75%

47%

59%

What Organizations Exhibit a Culture of Quality?

“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

Developing, Sustaining a Quality Culture: Vision, Values, Leadership

Values

• 60% describe their quality values as clearly stated

• 50% say such values are clearly understood throughout the organization

Vision

• 60% say their quality vision is clearly stated

• 32% view their quality statement as compelling

Developing, Sustaining a Quality Culture: Vision, Values, Leadership

*Respondents believe their company’s quality programs are among the strongest and most advanced in the world.

“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

What Drives Your Company’s Pursuit of Quality?

Competitors consistently "raising the bar"

High quality serves as a barrier to entry to competitors

Quality is a core leadership value

Product/Service quality is a key competitive differentiator

Quality drives effectiveness and profitability

Customer demands for quality

49%

58%

74%

78%

80%

90%

Percentage of respondents who selected Significant or Very Significant

How Involved Are Customers in Quality?

0%

20%

40%

60%

53%

42%33% 30%

44%

28% 24%19%

Senior Executives Quality Professionals

“Hig

hly

App

licab

le”

Customers and Quality

“I believe the best definition of quality is to … give the

customers what they want.”

Paulo Sampaio, Professor of Quality Engineering and Management,

University of Minho-Portugal

Intel “enshrines” a set of core values, “all of which can

be traced to a customer focus. The customer wins.”

Stan Miller, Director of Enterprise Quality and Reliability Capability, Intel

Challenges Abound in Worldwide Quality Adoption

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

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

Access the ResearchLearn more about the research and

download the white paper at

cultureofquality.org.

Online Self-Assessment

In addition to the whitepaper, Forbes Insights and ASQ

developed a free self-assessment tool that allows organizations to

measure and benchmark their culture of quality.

Assess your own culture of quality today at cultureofquality.org.