What is quality culture?
The term quality culture refers to the goal of an organization and its members to ensure quality in the long term and to develop it sustainably. However, the word contains a contradiction in terms of organizational culture. The concept of quality is usually defined top-down by the organization’s management. The term “culture”, on the other hand, refers to a bottom-up process. Quality culture therefore includes perspectives from the management that incorporate the cultural aspects of the workforce. In concrete terms, quality culture means creating a culture of trust, participation and communication in which quality goals are underpinned by employee participation.
A quality culture that is implemented sustainably and practiced by the workforce also creates a positive dynamic within the supply chain. A distinctive quality culture can be another unique selling point (USP) for customers. In cooperation with suppliers, a procure-to-pay process geared towards quality measurement can also have a positive effect. Quality culture connects suppliers and customers and creates space for a sustainable A culture of trust!
What is a culture of trust and what influence does it have on quality?
The term “culture of trust” refers to a culture in companies that is characterized by mutual trust and in which employees communicate openly with each other across hierarchies and functions and give each other feedback on their performance, behaviour and impact without fear. Due to internationalization as well as increasing complexity and acceleration in companies, control-oriented organizations are continuously being replaced. However, results-oriented and trust-based corporate cultures are becoming increasingly important. The constant control in a company, which has a demotivating influence on the workforce, is giving way to employees’ own initiative and trust in the company. (see Schmitt 2015, 22 – 23).
A lack of a culture of trust can lead to a loss of quality in the value chain and stagnation. In terms of employees, a lack of trust often leads to faulty processes, misunderstandings and conflicts. The company can suffer a loss of image when recruiting employees and, in the worst case, fall victim to a competitor’s predatory strategy in terms of competitiveness. (see Schulte 2012, 5).
Quality culture at suppliers and the internal supply chain.
With the aim of sustainably securing the entire supply chain from procurement to the customer, the first step is to optimize processes along the supply chain. This includes areas of sales and budget planning, procurement management, scheduling, production and assembly processes and sales. Successful collaboration in the supply chain requires a standardized planning basis and innovations to increase transparency.
In order to optimally supply the supply chain, supplier relationships must be carefully cultivated so that an integrated, complete supply chain can function optimally. There are three key points that are crucial for this, which promote cooperation and contribute to risk prevention:
- Trust
- Contracts
- Networking
Mapping, controlling and monitoring company processes using a holistic and transparent IT infrastructure is far from being exhausted. Different ERP and MES systems, production and project planning or simply non-existent standardization lead to interrupted, faulty information flows within the company. Even more difficult is the linking of external and internal processes and vice versa. Rarely do players in the value chain access a common database, thereby wasting a great deal of potential for agile process sequences.
Trust, partnership underpinned by contractual security and a networked system landscape are the drivers for a comprehensive, cross-company quality culture. This requires digitalization and the right applications to enable the rapid exchange of relevant information.
How can a change process be designed?
The so-called change process affects all facets of entrepreneurial activity. Companies inevitably have to continuously adapt to new trends and dynamics on the market and constantly change. Some changes have to happen quickly and agilely in order to be a player in new market opportunities right from the start. However, there are also strategic change processes, which generally relate to organizational management, digital transformation, environmental or ethical standards as well as product and service orientation. A normal change process starts with the realization of the change, followed by the understanding of the change and acceptance of the change. This is followed by the development of a firm belief and the ability to implement. The desire for change then grows and, ideally, the status of acquiescence is achieved. However, change can only work with the encouragement to change and broad support. So much for the theory!
Interestingly, the diagram in the above article also provides information on how a change decided from above can work from right to left. The steps must be taken in exactly the reverse order. At the same time, however, this also means that the more changes are decided, the more pressure is created in the overall organization.
A new methodology would be advisable to decide on top-down strategic adjustment processes at an early stage and to develop a long-term change strategy by deriving a vision from the company’s DNA. Even radical transformations can succeed through early communication with potential technology partners. The necessary creativity for future technologies and their significance for change processes comes from the market and in the suppliers’ own interests. Not only quality but also change arise in the broadest sense from trust, i.e. the collaborative interaction between customers and suppliers.
The combination of compliance, change and trust management in a comprehensive openhouse methodology!
The essence of the blog article on compliance is the need for a comprehensive compliance management system. Without an appropriate documentation and audit system, it is not possible to continuously monitor and document all relevant processes. With regard to the variety of regulations to be observed from contractual origins, it is also essential to create a further scalable level of communication in which cross-company networking and cooperation is possible. Internal company agreements often lack a verification and documentation solution involving employees. The key is open communication with all stakeholders in the respective process and access to relevant information for exercising the dedicated control obligations.
In the areas of quality culture, change management and trust culture, a widespread structural problem can be seen in the organizational units of primarily larger companies. While the participation of employees is a real added value and also a driving force for change, the involvement of too many decision-makers and consultants is a stumbling block and an insurmountable barricade on the road to digital transformation.
What would an optimized decision-making process look like if we could reinvent it? Which approach promises the greatest success? How can an established organization reinvent the wheel and reposition itself for the future?
Let’s imagine that at the start of every change process there is an open house procedure in which various solutions are discussed in an open discussion at eye level both internally with the specialist departments and externally with potential suppliers and solution providers. A subjective definition of the current situation and a rough objective would be completely sufficient as the basis for such a mood test. With minimal use of resources, a very detailed picture from all relevant perspectives would emerge over time, which could be directly translated into a kind of recommendation for action. Based on these orientation discussions, trust is built at all levels and a basic understanding of the impending change is established. This consolidated view is the basis for concrete requirements and detailed service descriptions. Without this foundation, the company is standing on very sandy ground.
To get back to compliance management, we need to bear in mind that the compliance of companies and the diversity of rules from laws, contractual and internal agreements require comprehensive quality and process management, which cannot be implemented efficiently and sustainably without appropriate IT solutions. These specific IT systems in the areas of process, contract, document, quality and audit management form the basis for a comprehensive culture of quality and trust within the company. And it is precisely this culture that forms the foundation for every successful change process.
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