Measuring and Demonstrating the Value of Quality Initiatives

The study found 86% of the firms that described their quality programs as mature/world class had established a correlation between cash flow and a specific quality metric.

Quality initiatives can pay off for organizations, although developing reliable measures to link quality to financial results is difficult, according to a study from Best Practice, LLC. However the more mature the quality programs, the greater an organization's ability to link business outcomes to specific quality metrics.

The study found 86% of the firms that described their quality programs as mature/world class had established a correlation between cash flow and a specific quality metric. Only 57% of the study's total benchmark class, however, was able to make the same claim.

Other findings include:

  • 100% of mature quality organizations employ benchmarking to drive operational improvements, nearly 20% more than average performers.
  • 89% of mature quality organizations employ Kaizen -- continuous improvement tactics -- nearly 30% more than less mature quality-driven firms.

The study was based on survey results and interviews with 28 companies, including, 3M, Becton Dickinson, GlaxoSmithKline, Kraft, MetLife, J&J and Xerox.

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