by Andrzej Gorecki
[As published in The Quality Magazine, 1996]
Quality Management is not popular in the Australian industry. Productivity
gains and new retail concepts are usually driven by the adoption of US
technology and ideas, rather than by our own creative thinking and continuing
process improvement.
It can be argued that there is nothing wrong with this approach. There
are some stunning success stories in the US retail industry. Companies
such as Wal-Mart and Home Depot have become the target of pilgrimages
by retail executives from all around the world, hoping to identify and
learn the magic ingredient.
This desire to learn by travel and observation is commendable, but I
feel that most of the money spent on organised and individual 'study tours'
is wasted. Why? Because the current modus operandi ignores some of the
fundamental principles of Total Quality Management which were laid down
by W Edwards Deming.
Dr. Deming warned repeatedly against relying on examples and copying
outside solutions. He also urged caution in adopting numerical targets
and quotas, making the currently trendy benchmarking and pursuit of the
world's best practice at least questionable. After all, if it was as easy
as that to copy someone else's success, there would be no failures.
So, what would need to change to make overseas success stories useful
and applicable for our local retail industry?
We need to convince our retailers to master the principles of Quality
Management. We need to expose them to the benefits of good management
theory, as this would make their overseas (and local) experiences far
more meaningful. DR Deming clearly stated that without theory, experience
is of little value.
A good manager operates using a set of theories, which are continually
reinforced and improved through experience. In contrast, most managers
try to match individual past experiences to their current challenges.
At times this is an inadequate basis on which to make good decisions.
Unfortunately, the task of winning the retail industry over to Deming's
Management Method is not easy. This is because the first, most crucial
step towards Quality Management is the recognition that TQM is not just
a technique to supplement the current way of managing an organisation.
It is a totally different way of thinking which produces distinct corporate
culture.
This is a real hurdle, as it requires senior retail managers to accept
that there is a body of important knowledge which they don't have, and
to make an effort to acquire this knowledge. Such acceptance requires
a degree of humility, as well as a strong desire to learn.
Retail managers, often with many years of reasonably successful performance,
find it incomprehensible that they could have survived for so long in
their jobs if some truly important information was missing. What they
obviously don't see are the opportunities they missed; the money they
didn't make, and the time and money they wasted on activities which were
of little use or even counterproductive.
If you are a retail manager who is prepared to learn, the best way to
gain this new knowledge is to rely on the primary source. Two books written
by Deming - "Out of the Crisis" and "The New Economics" are vital for
any serious practitioner of TQM. These books need to be read a number
of times until the reader fully comprehends this new way of thinking.
Only after the senior managers in an organisation master the principles
of TQM, is it possible to embark on its gradual introduction to the business.
This is the time to learn from external examples and get value from study
tours. Equipped with good theory, one sees and understands more - not
only what happens, but also why.
Quality Management is not easy. It requires that we unlearn our past
habits and embrace a new management paradigm. It needs time and effort
to understand and put to practice, but it can make your business stronger.
TQM delivers better business decisions, even in areas such as marketing
and merchandising, improves employee relationships and attitudes, enhances
customer service, and results in better use of resources due to the constancy
of purpose. The bottom line: less waste, more sales, and more profit.
If you are in the retail industry, what more could you ask for?
Andrzej Gorecki is a Director and principal
consultant with Melbourne-based Retail Directions Group, which develops
and supplies state-of-the-art software solutions for retailers worldwide.
Copyright (c) 1996 Andrzej Gorecki
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