Critically Evaluate the Strategic Importance of Total Quality Management within Organisation
Critically Evaluate the Strategic Importance of Total Quality Management within Organisation
Favour E. Markson and E. E Markson
Abstract
Business environment is on the rapid change, competition in the global market is becoming very high in this digital era, hence for any organisation to improve business performance, it needs to strive to incorporate and align business strategy with quality management principles and standards so as to remain relevant in the market. This report will discuss the principles of quality management, quality assurance standards and guidelines, and demonstrate how quality management system aligns with Barclays strategic business objectives. It also performs the implementation of EFQM Business Excellence Model in Barclays to enhance better decision making and efficiency. This report further identifies key trends in quality management which include: Quality 4.0 and the Enterprise Quality Management Software (EQMS), and also points out the relevance of these trends to Barclays as well as limitations and issues with the adoption of these trends.
This report seeks to address the quality management practices, how the principles are being implemented in operations and aligned with the strategic objectives of Barclays Group Plc. Barclays a global consumer bank founded in the 17th century has its headquarters in the United Kingdom. Technology and operational strength are the major competitive advantage for future global banking; hence Barclays aims to incorporate quality management to enhance processes, and meet customer satisfaction. Barclays group Plc is diversified by business, different customers and by geography.
The concept of Total Quality Management (TQM) is an organized management procedure all through the business institution geared towards ensuring that the business constantly meet and (Arikkok 2016) exceed the requirement of customers. TQM is of great importance as this would enable Barclays to deliver quality products and services as quality services and products delivered can be determined by its reliability (Pratt 2019), performance as well as enhancing customer loyalty. However, delivering quality products and services is challenging because it requires deep (Gartenstein 2019) commitment and is cost intensive.
Implementing TQM within Barclays operations and services would help to ensure customer satisfaction and retention; thereby delivering sustainable value to customers. Satisfied customers would return to Barclays as well as introduce new customers to the organisation. Nevertheless, lack of customer satisfaction within Barclays would eventually result in customer defection and reduced profit (Khadka & Maharjan 2017). In addition, TQM enhances process improvement in operations within the bank, thereby scaling for growth efficiently (Chrisos 2020). Barclays in the year 2016, experienced uncertainty and volatility in the market, however, Barclays successfully improved operations by strengthening business processes, using data in more innovative ways as well as the introduction of mobile banking, leading to faster transactions and better customer experience (Barclays 2016). In contrast, process improvement can be challenging to implement where there is an existing system as most times employees are resistant to change (Aminu 2019).
Brief Description of Barclays Group Plc
Barclays Group Plc is a transatlantic bank, with major markets in the UK and international (America). The bank is focused on delivering quality service to customers, which is important in enhancing loyalty and lasting growth through providing products and services which include: Personal banking, wealth, entrepreneur and busines banking, Barclaycard consumer, corporate and investment banking, and consumer cards and payment (Barclays 2016).
Models and Approaches to Quality Management
There are different models and approaches to quality management. This includes: Quality Function Deployment (QFD), Failure Modes and Effect Analysis (FMEA), Statistical Process and Control (SPC). Table 1, below presents the models.
S/N | Models/ Approaches | Advantages | Limitations | Reference to Literature |
1 | Quality Function Deployment (QFD) |
|
| Prachi (2019); Tavakoli & Azizi (2018)
|
2 | Failure Modes and Effect Analysis (FMEA) |
|
| Carlson (2016); Hodge (2014) |
3 | Statistical Process Control (SPC) |
|
| Kiran (2017); Gordon (2019) |
4 | EFQM Business Excellence Model |
|
| Nwachukwu et al., (2017); Saleh (2017) |
From the table above, this report will adopt the EFQM model for Barclays other than Quality Function Deployment, because QFD leads to unproductive (Lohrey 2017) time as employees from different department are involved. Also, capturing, documenting and adding customer requirement into products (Wolniak 2018) consumes time as well as lack of cooperation among multidisciplinary work teams. On the other hand, Statistical Process Control is mostly used in manufacturing lines, while Failure modes and effect analysis is time consuming and some failure modes could be ignored if attention is not given to details. However, EFQM model, will enable Barclays to identify (Saleh 2017) areas that need improvements, there will be effective operations, enhanced satisfaction of customers and gain competitive advantage.
How Models and Approaches have been Implementation within Barclays Group Plc
The implementation of the EFQM model in Barclays Group Plc is shown in table 2 below.
S/N | EFQM Concepts | EFQM in Barclays Group Plc | References |
1 | Adding Value for Customers |
| Edinger (2012), Barclays (2016) |
2 | Creating a Sustainable Future |
| Weir (2018),
|
3 | Developing Organisational Capability |
| Abasdesco (2015); Barclays (2016) |
4 | Harnessing Creativity and Innovation |
| Coon (2021) |
5 | Leading with Vision, Inspiration and Integrity |
| Barclays (2016) |
6 | Managing with Agility |
| Donnelly (2016) |
7 | Succeeding through People’s Talent |
| Barclays (2020) |
8 | Sustaining Outstanding Result |
| Barclays (2020); Rompuy (2015) |
Critically Evaluate what is Involved in Creation of Quality Management System and how Business Objectives Align with it in the case Organisation
The concept of Quality Management System (QMS) according to literature is a recognised system that comprises of documenting the (Hellman & Liu 2013) structure, as well as process, responsibilities and procedures necessary to achieve efficient quality management. However, QMS has received criticism, that it is time consuming and capital intensive (Pavlovic 2018 & Kilburn 2021).
How the Company’s Quality Management Systems is Formed
Nevertheless, table 3 below shows how QMS is created in Barclays Plc.
S/N | Steps | Creating QMS within Barclays | Reference |
1 | Defining and Mapping of Processes |
| Mehrotra (2018) |
2 | Defining Barclays quality policy |
| Duffy (2021) |
3 | Defining quality objectives |
| Barclays (2020) |
4 | Develop records and documents |
| Mehrotra (2018) |
5 | Defining quality process |
| Barclays (2021) |
6 | Ascertain training needs |
| Duffy (2021) |
7 | Use QMS |
| Mehrotra (2021) |
8 | Measure and monitor performance |
| Mehrotra (2021) |
9 | Act to improve performance |
| Duffy (2021) |
Key Quality Management Building Blocks and Elements
Several scholars assert that Quality management building blocks are a set of basic values adopted by Barclays to improve the performance of the bank, increasing stakeholder satisfaction by (Dragolea et al., 2011) meeting their needs so as to attain a leading position. Below is figure 1 showing the quality management building blocks.
Quality management building blocks, adapted from CFI (2021)
- Customer Focus: Literature states that customer focus drives quality management; a strategy that aims to put customers first in decision making. Organisations rely on customers, hence should endeavour to meet customers requirement (Chambers 2021). However, inability of organisations to meet customer satisfaction results in reduced profit and loss of organisation reputation (Lesonsky2017). Nevertheless, Barclays would put clients and customers at the centre of the business by tailoring various set of services and products to client’s needs (Barclays 2021).
- Leadership: literature has established that leadership is leading persons as well as managing (Mistry 2019) processes; leaders in organisations establish direction, and develop conditions whereby employees can be involved in achieving (Fleser 2011) quality objectives of the organisation. On the other hand, inability for leadership to provide (Hopkin 2018) direction to the employees due to lack of vision, will result in frustration. However, Barclays for effective coordination of business processes has respected and experienced leadership team that communicates the vision, strategy and processes of the bank to all stakeholders (Barclays 2020).
- Engagement of People: Literature points out that Barclay’s involvement of empowered and competent employees all through the organisation enables employees’ abilities to be utilised to the advantage of the organisation; this requires senior management to encourage individuals to contribute through their knowledge and experience to promote (Barclays 2021) worthful ideas with respect to continuous improvement. However, there are drawbacks associated with involvement of people which is that it leads to communication complexity (Kokemuller (2019).
- Process Approach: Dawson (2019) suggest that process approach is the ability to improve the business through managing as well as improving processes that impact the ability of the organisation to serve the customer directly. Harrington (1997) sited by Luburic (2015) stated that processes play a significant part in success achievement implying that top executive establish vision and guidelines, team members resolve issues, business partners contribute creativity, nevertheless processes, make possible task performance within the organisation. However, Barclays as a multinational bank should endeavour to improve the business processes and use data innovatively in order to meet customer requirement (Barclays 2016).
- Improvement: Research reveals that (Dragolea et al., 2011) continuous improvement should be the global objective of every organisation and for any organisation to keep up with present performance level, the organisation must engage in improvement activities. However, Smith (2014) argued that lack of senior management support and the use of poor tools for process management would affect continuously improving activities in organisations. But Barclays has constantly been on the watch out for latest technology to restructure process of operation (Barclays 2016).
- Evidence Based- Decision Making (EBDM): Briggs (2016) suggest that this a decision-making process that is founded on data evaluation and analysis, leading to improved operational effectiveness and efficiency; data adopted for decision making must be accurate, accessible to relevant business functions and decision should be based on evidence and supported with experience. Nevertheless, critics have argued that (Baba & Hakemzadeh 2012, Young 2020) evidence possibly will not at all times be measured correctly and analysis is not bias free. However, Barclays utilise feedback from customers to improve processes and maintain customer loyalty (Barclays 2021).
- Relationship Management: Literature points out that organisations and their suppliers are mutually dependent on one another which enhances value creation thereby leading to increase in profitability (Dragolea et al., 2011). However, this approach is limited in that sharing of information with partners is an (Garg 2021) area that is difficult as it presents some level of risk. In spite of this limitation, Barclays should endeavour to build useful relationship with clients to provide appropriate financial (Barclays 2016) solutions.
Main Quality Assurance Standards / Guidelines in Place
The concept of Quality Assurance Standards as highlighted by literature is a process of ascertaining whether a service or product meet stated requirements (Gillis 2021). Below are two major quality assurance guidelines:
- ISO 9000 Series: ISO 9000 is a group of quality management standard that is established on “conformance to specification”; the aim is to ensure that organisations deliver services and products that meet already determined standards with the goal of putting a stop to “non-conformity” The quality standards are divided into three sets namely ISO 9001, ISO9002, and ISO 9003. However, ISO 9001 as stated by (Naden 2021) can be adopted by any company irrespective of the field of business because it is centred on some quality management (QM) principles which include focusing on customer, continuous improvement and process approach as observed in Barclays. In spite of the benefits of ISO 90001, it has been criticised that the process of certification is complicated and takes much effort.
- ISO 14000 Series: As suggested by ASQ (2021) ISO 14000 specifies the decisive factor to enhance environmental management system (EMS) in companies; In addition, it helps organisations to gain competitive advantage and trust from stakeholders as environmental performance is improved through waste reduction (Matsudo 2015). In contrast, ISO 14000 has been criticised that its implementation is expensive and time consuming. However, Barclays in gaining competitive advantage ensures that the organisation’s environmental operating procedures are (Barclays 2021) aligned with ISO 14001 requirements.
How TQM System is Mapped with the Company’s Strategic Business Objectives
Below is mapping of TQM System with Barclays strategic business objectives.
Figure 2 Mapping of TQM System with Barclays Strategic Objectives
How Quality is Ensured for All the Organisation’s Stakeholders
Freeman (2019) maintained that Quality is an approach to improving customer satisfaction and eliminating errors. However, in Barclays, quality is ensured for its stakeholders (investors, customers and clients) by:
- Continuous improvement: Literature points out that (CFI 2019) organisations that continuously engage in improving business processes experience customer satisfaction and efficient delivery of services. However, the limitation is that there is inadequate communication of objectives. Nevertheless, Barclays is focused on improving its core (Bhasin 2019) business processes so as to deliver quality services to stakeholders.
- Communication: Buckby (2011) suggest that effective communication with customers and clients enables organisations to tailor products and services towards meeting customer needs, however, lack of communication with clients leads to low productivity and no improvement. Barclays in ensuring quality establishes quality relationship with customers and clients, through face-face interactions (Barclays 2019)
- Training and development: Reddy (2021) assert that training and development of employee is an asset to an organisation as this leads to sustainable growth of the business and delivery of quality service. However, there are drawbacks to training and development which include: lack of senior management involvement and employee resistance to change (Periyasamy 2020). Nevertheless, Barclays is committed to developing employee digital skills in other to deliver quality service.
Critically Evaluate key Trends in Quality Management as they Relate to the case Company, and its Development and Adoption
Quality Management (QM) according to (CFI 2021) has evolved over the years a great deal, to increase continuous improvement, organisations across different businesses have welcomed the change towards smarter procedures. Moreover, as quality has become the main focus of business there are trends in QM that have been identified to help organisations in the pursuit of quality
This report critically examines the key trends which includes: Quality 4.0, Enterprise Quality Management Software and Six Sigma. Table 4 below shows the critical evaluation of the trends.
SN | QM Trends | Advantages | Limitations | References |
1 | Adoption of Quality 4.0 |
|
| Kupper et al., (2019); Sony (2020) |
2 | Enterprise Quality Management Software (EQMS) |
|
| Hayes (2021); Joshi (2020) |
3. | Six Sigma |
|
| Miller (2014); Joshi (2020) |
What is The Relevance of These Trends to Barclays
This report further demonstrates the relevance of Quality 4.0 and Enterprise Quality Management software to Barclays other than Six Sigma because, Six Sigma is rigid and does not (Miller 2014) allow technically the introduction of ideas for creativity and innovations even when it is beneficial to the organisation, while on the other hand, Quality 4.0 will digitally transform processes in Barclays while, EQMS will enable Barclays to enhance processes. Table 5 below shows the relevance of the trends to Barclays.
S/N | QM Trends | Relevance to Barclays Plc | Reference to literature |
1 | Quality 4.0 |
| ASQ (2021); Jacob (2017); Kupper et al., (2019) |
2 | Enterprise Quality Management Software (EQMS) |
| Littlefield (2012); Ach (2021) |
S/N | QM Trends | Benefits to Barclays Bank |
1 | Quality 4.0 |
|
2 | Enterprise Quality Management Software (EQMS) |
|
1.3.3.1 What are the Expectations of Aligning QM System with these Trends
Research shows that expectations of aligning quality management with the aforementioned trends will lead to:
- Digital Transformation (DT): Literature reveals that DT is the incorporation of digital (Hamilton 2021) technology across business functions, basically transforming how organisations operate so as to meet and exceed client’s expectations. Therefore, Barclays embraces the initiative of digitisation by improving mobile and internet banking so as to deliver (Barclays 2016) value to stakeholders.
- Business Process Change: According to literature business process change is an initiative or approach to redesign and improve business processes so as to attain a (Harmon 2019) competitive advantage in the global market, through the change in technology, and core processes; thereby increasing profitability. However, Barclays is focused on reengineering core business processes, build the organisation on a world-class technology and operations with the capacity to use data innovatively (Barclays 2019).
How Can the Adoption of these Trends Be Supported
Research shows that the adoption of the trends mentioned in Barclays would need the support of:
- Leadership Support: Research reveal that (Lotich 2017) for any change to be effective in the organisation, there is need for the support of leadership to champion the change initiative; it is important that leadership demonstrate support for process change as this creates comfort in employees when leadership is seen supporting business process change (Sumitani 2020). Nevertheless, Barclays would require the support of senior executives for the adoption of quality 4.0 and EQMS for the business process change.
- Involvement of Employee: Heathfield (2019) suggest the importance of involving employees early in the process change so as to avoid resistance, misunderstanding and hurt; process change either small or large should be properly communicated and explained to employees in other to benefit from the business process change. Therefore, Barclays would involve the employees in execution of quality 4.0 and Enterprise Quality Management Software to improve performance.
- Effective Communicate of Change: Nevertheless, for Barclays to deploy the trends afore mentioned, there is need for effective communication of process change to employees cutting across the different business functions (Operations, Finance and Marketing); as effective communication of change would enable employees to embrace the initiative and should be (Fanning 2020) done purposefully. Barclays would communicate to employees through emails and scheduled meetings.
Limitations and Potential Issues with these Developments.
Literature reveals that the adoption of the earlier discussed trends would improve Barclays’s performance. However, there are limitations and potential issues associated with the development, this includes:
- Resistance to Change: According to Heathfield (2019), change most times is unavoidable, as well as resistance to change which is the act of struggling with transformations in a workplace; employees possibly would realise they are not comfortable with proposed change from management and resist outrightly. However, Barclays in other to overcome resistance from employee to organisation’s core process restructuring and digitisation would have to employ the strategy of open communication where leadership can interact with (Francino 2011) employees and also be persuasive thereby clear all anxieties.
- Challenge of Culture: Roe (2019) point out that shaping the culture of the organisation is crucial to successful change of operation processes and digital transformation; top executives would have to proactively build in digital culture in to the organisation’s system. Nevertheless, Barclays to successfully transform to digitisation would need to intentionally instil digital culture into the organisation.
This report has offered understanding of the subject area. It highlighted the importance of total quality management to Barclays as well as quality management models applicable to the organisation. The report demonstrated the steps to creating quality management system in Barclays, identified the building blocks of quality management and mapping between total quality management with Barclays strategic business objectives. Furthermore, the report highlights quality 4.0 and Enterprise Quality Management Software as key trends to quality management, the relevance and how the trends can be adopted by Barclays so as to gain competitive advantage.
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