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Value-CreationthroughtheBalancedScorecardOrientedTQMConcept(Authors:Dr.MikeC.K.LamandMr.Q.S.Ren)BeijingWesternConsultants(bscchina)AbstractThispapertriestosolvesomeoftheissuesconcerningtotalqualitymanagement(TQM).Firstly,whatdoesaTQM(businessexcellence)concept/modellooklike?AretheseTQMconcepts/modelstheoreticallysound?WouldthejudgingframeworksandcriteriaofsomequalityawardssuchasHongKongManagementAssociation(HKMA)QualityAwardbetheTQMconcepts/models?Secondly,areTQMmodelsrelatedtoothermanagementconceptssuchastheBalancedScorecard(BSC)?ThirdlycouldweintegratetheTQMconceptwithBSCframeworktoformavalue-addingconcept?ThemainaimofthispaperconcernswiththeprocessesofbuildinguptheBalancedScorecardOrientedTQMconcepttheoretically,forwhichthebasesareconjoiningtheKanji’sTQMmodelandtheframeworkoftheBSCwithreferencetothejudgingframeworkandcriteriaofHKMAQualityAward.BasedontheconceptofSystemsTheoryandmodelbuildingtechnique,firstlywetriangulatedtheKanji’sTQMmodelandtheBSCframeworktofitintotheSystemsTheory.Secondly,wecomparedthesetriangulatedmodelswithreferencetothejudgingframeworkandcriteriaofHKMAQualityAwardsystematically.Thirdly,afteranalysis,weproposedtheBSC-OrientedTQMconceptanditsconceptmappingforreferenceandfurthertestingintherealworld.Theexpectedoutcomesofthisresearcharesolvingtheabove-mentionedresearchproblems.TheultimateaimofthisresearchistoformtheconceptualmodelofBSC-OrientedTQMconceptforfurthertestingbypractitionersandacademicsofTQMinordertogainmoreconcreteexperiencesorthemanagementknowledgeoftheworld.IntroductionTheoriginalortraditionalapproachesofqualitymanagementwereverymuchprocessoriented.WiththeadventofTotalQualityManagement(TQM),organizationsbegantofocusontheneeds(requirements)andwants(exceedingtherequirements)ofcustomersbothexternallyandinternally(Wilkinson,1992).Thereisnodoubtthattheissueof‘customers’becomesthefociofallkindsofmanagementtoolsandconcepts.Ontheotherhand,oneofthebasicconceptsofTQMisthesystemstheory(input-process-output).Thatistosay,theinputs-processes-outputs(activities)ofanorganizationareaimingatthefulfillmentoftheneedsandwantsofthecustomerssuchastheconceptof‘Todelightcustomers’,whichistheinputorstartingpointofthewholevalue-addingchainofbusinessprocessessothattheoutputsare‘customers’satisfaction/delight’andthusthefinancialperformance.Ifweacceptthissimplelogicofdoingbusinesses,westillhavetosolve,atleast,twomajorissues.Firstly,letusassumethatweknowourcustomersthoroughly.However,inaccordancewithAnsoff(1984),‘Strategyisaconceptofthefirm’sbusiness,whichprovidesaunifyingthemeforallitsactivities.’Theproblemishowcouldweorganizealltheactivitiesofanorganizationunderaunifyingtheme,whichis,thestrategyofanorganization?Secondly,eventhoughanorganizationhasstrategy,howcouldweknowtheimplementationofthestrategyisright?TheanswerofthesetwoissuesliesonthestrategicmanagementofanorganizationwiththehelpoftheBSC.AccordingtoKanjiandAsher(1995),theultimateaimofTQMistoachievebusinessexcellence(companyperformance)suchasfinancialandnon-financialresults/measures.However,fromourconcreteexperienceandobservationandreflections,thepractitionersandacademicsofTQMarefacingmanyproblems.Tonameafew,firstly,whatdoesaTQMconcept/modellooklike?WouldthejudgingframeworksandcriteriaofsomequalityawardssuchastheMalcolmBaldrigeNationalQualityAward(USA)orHongKongQualityManagementAssociationQualityAward(hereafterwecallHKMAQualityAward)betheTQM(businessexcellence)concepts/models?Secondly,aretheseTQMconcepts/modelstheoreticallysound/based?Theresearchersofthispaperhavebeeninvolvingtheresearch,training,educationandimplementationofTQM(Kanji,1998)andtheBalancedScorecard(Kaplan&Norton,1992,1993,1994,1996a,1996b,2000)tovariousclientsinChina,ofcourse,includingHongKongSAR(see).We(includingourteamsofconsultants)haveboththeexplicit(codified)andtacit(uncodified)knowledge.Basedonourpracticesoftheconceptof‘Ba’(NonakaandKonno,1998),whichisaknowledgecreationprocess,andKolb’sExperientialLearningCycle(Kolb,RubinandMcIntyre,1979),weadvocatethatitishighlylikelytointegrate”or“conjoining”theframeworkoftheBSCwiththeTQMmodelssuchastheKanji’sTQMmodel(1998)withreferencetotheframeworkandjudgingcriteriaofHKMAqualityawardasakindofTQM(businessexcellence)conceptforreference.TheexpectedresultofthisresearchissolvingthestatedresearchproblemsofthispaperandtheultimateaimistoformtheconceptualmodelofBSC-OrientedTQMconceptforfurthertestingbypractitioners&academicsofTQMandBSCinordertogainmoreconcreteexperiences.(PleaserefertoFigure1)BackgroundoftheStudyTheauthorsofthispaperhavebeeninvolvingtheresearchandtheimplementationofTQM(LamandYu,1999,2001),andtheBSC(Lam2002a,b,c)fortenyears(concreteexperience).Moreover,theauthorshavebeenresearchingthetheoreticalbasesofsomeTQMmodelssuchasKanji’sTQMmodel.BasedontheKolb’sExperientialLearningCycle(PleaserefertoFigure1),theauthorsdiscovered(ObservationandReflections)thattherearemanysimilaritiesbetweentheKanji’sTQMmodelandthebasiccriteriaofvariousqualityawardsandtheframeworkofBSC.TheauthorsofthispaperattempttobuildontheconceptofBSCandKanji’sTQMmodel,forwhich,comparedtothejudgingframeworkandcriteriaofHKMAQualityAwardtoformtheBSC-OrientedTQMconcept(FormationofAbstractModel)forfurthertesting.Thedrivingforceofthisresearchisthenotionof‘valuecreationoradding’asweobservedthattoomanyorganizationswastedtoomuchresourcesofusingdifferentkindsofmanagementtoolsorconcepts.Itwouldbeverymuchvalue-addingifwecouldconjoinfewmanagementtoolsorconceptsunderoneconceptormodelsuchastheBSC-OrientedTQMconceptweproposedinthispaper.TheultimateaimistoinvitepractitionersofboththeTQMandBSCtotesttheproposedconcept/modelandcontributingtothemanagementknowledgeoftheworld.埋Metho境dolog鍬y誕Based炎ont炸hesi瘋mple于conce源ptof遇Syst扇emsT銷heory喜(Inp條ut-Pr遣ocess影-Outp即ut)a長ndmo增delb搬uildi飄ngte灑chniq捐ue,f燒irstl胃ywe藝rearr慢anged玩ort蓄riang減ulate躁dthe攝Kanj仰i’sT巴QMmo飯dela漏ndth兔eBSC百fram女ework壓tof魂itin鋪toSy娘stems董Theo店ry.S影econd群ly,w斃ethe方oreti別cally皆comp脂ared為these赤tria建ngula殿tedc身oncep餓tssy院stema肅tical宵ly.T佳hirdl銷y,af都tera逝nalys允is,w騎epro能posed雹the饅BSC-O進rient趁edTQ調(diào)Mcon才cept厲forr侄efere毒ncea慌ndfu忘rther車test拼ingi晌nthe掏real袖worl忍d.巖Liter膠ature抱Revi助ew罩Syste潤msTh著eory狗and/o鹿rMod狼elBu羽ildin火g話Accor鄭ding豎toBo遮nini篩et,a雖l.(1破999),材real慮-worl奔dpro謀blems傷tend褲tob傘eeno惑rmous攻lyco捆mplex詞such嗽ast塑hepr遮oblem雄sand內(nèi)the繪main甚aimo申fthi醋sres爽earch掘pape豐r.Th陳erea瑞reli眾teral媽lyan傅unco違untab翁lenu摟mber指ofin盤heren燭tfac殿ts(t慧acit擁orim田plici晴tkno斜wledg元e)in麻any蹲empir你ical填situa以tion.宮Furt嫁her,束every造pote冬ntial啦cour何seof買acti盯onst夾arts突acha被inof溉caus暴e-and蠶-effe訪ctor瘋inpu撫t(yī)-pro渡cess-回outpu懶t,an持dint富eract五iont料hatl害ogica喬llyi畫swit偉hout賽end.裝Amod統(tǒng)elis薯asi據(jù)mplif地iedr趨epres久entat猜iono慨fan鉛empir斃ical野situa禾tion.淡The燕origi懂nala清imso蔬fres示earch交ersa陪reno循tto然const腔ruct滲amod袍elth通atis呀asc或lose漂aspo責ssibl攜eto靜reali取tyin籌ever急yasp準ect,恭rathe群rtha膠n,re版searc尋hers屯want宴thes器imple猛stmo穴delt獎hatp免redic霞tsou慮tcome嘗srea盡sonab擊lywe腸llan崇dis占consi鐵stent希with車effe凈ctive受acti蠟on.T督hete肝chniq起uefo珍rdes訪cribi住ngan時drel瞎ating或vari肅ousv但ariab園less慧ucha濁s粱駛exoge己nous,梯endo布genou脂s,in住terme銳diate校,dec孤ision歐and閣expec吃tedp逮erfor原mance酸vari招ables遙oro倚utcom軌es/me耕asure耕s(as淚per淡Figur喘e2),翅depe溪ndso員nlar泄geex心tend倍ofth沸enat暑ureo幕fthe湖vari婦ables江.The暢simp沒lefo虧rmof勸syst經(jīng)emst溫heory膨and/闖ormo爆delb摸uildi劣ngis約asf液ollow蟻s:妨Total呈Qual墾ityM違anage供ment啦(TQM)接TQMh吵asbe創(chuàng)enwi字dely劫accep勁tedb怒ythe槐busi谷ness夏pract秤ition怨ersa悔ndac淺ademi喝csto蹈impr猾ovet鬼hequ猴ality以,if狠nott件heor曉ganiz價ation蜂effe緊ctive浪ness,切ofa椅norg晃aniza掌tion坐conti陽nuous辯ly.H濱oweve樓r,th諷erea伍rema祝nypr剝oblem鬼sof霧apply凈ingt禾hepr芹incip液leso棵rcon涉cepts組ofT闊QMto僑the監(jiān)real籮world編situ儲ation栗s.Th奴emaj幟orpr轉(zhuǎn)oblem裁ist膨he‘s引tanda毫rdiza袍tion’球ofd割iffer何entT擋QMmo尺dels/材conc傲epts婦thems務elves寇,if墻nott茂he‘u惜nific鏟ation美’of花vario佳usTQ槳Mmod們els獎/希conce眨pt讓s枯.(Th屆isis靠one句ofth川eare昂as,w粉hich屆needs澤furt好herr吊esear喝ch).寇There融are竹many汽famou帝squa奇lity競gurus本such少as鑰Phili巧p.N碰Crosb州y(Fo壤urtee凈nste父psto握qual黑ityi悅mprov消ement愧),掀Josep者hMJ倆uran玉(Ten紀steps直toq反ualit屢yimp政rovem暢ent),勵and泡Edwar單dsDe蜜ming丹(Four副teen行point油sfor陷mana顯gemen齒tor燥thef基amous供Plan輪–Do–胃Check愿–Act范/PD觀CACy潤cle).吧Like邁many均othe繭rman年ageme攔ntco每ncept賣sor纖tools浪,TQM郵does叼have午some譯prob若lems.領Firs禾tly,希thep涌hilos系ophie寺sof閃these知guru告sor明their蝦“ste期ps/奮point針s”ar濫enot株buil希ton罰thet識echni棕ques攀ofmo該delb寺uildi水ngas于such嗽.It寧takes覽time轎for含thef勉ollow卸erso閉rbel資iever勢sof估TQMt昆ocom汁prehe忘ndth夏e‘bi見gpic而tures?!痮f埋their守prof拌ound交philo按sophi陷es.N嗚evert獎heles轎s,fo類rthe雖sake薯oft風hepu壟rpose躬sof緒this綁resea嶄rch,邪wede泉liber痰ately膊sele課cted立theK美anji’輔sTQM損mode滑l椅/葉conce釋ptfo役rfur膛ther豎discu殃ssion悅and騎inves咽tigat傅ion,鉛asit樂ise仰asily項bein乒gund判ersto后od.T木hemo港delc安onsis毀tsof帖the怕‘prim忌e’(L包eader記ship)氣,fou登rpri失ncipl家es(d身eligh忘tcus妻tomer繼,man少ageme堆ntby琴fact列,peo軋ple-b劉ased策manag兼ement顆and揚conti赴nuous暈impr寸oveme潛nt)a哀nd宅州eight膝sub-塘break充down研conce皮pts(劍Pleas匹eref蘭erto祖Figu瓶re3)哄.垂Aswe線argu聽etha皆t緒theu添ltima缸tepu猛rpose賊of喂allb奔usine車sspr貌ocess喘es合is隔aimi鈔ngat幼the司fulfi歪llmen挑tof如then坦eeds姑andw告ants掠ofcu刺stome端rs.O就ntop倆oft甘hetr澇aditi丈onal田divis雅iono叨fcus惕tomer獅sint賤oext蜜ernal輕and趴inter險nal,蓬wewo儉uldl惠iket皆oadd杏one斃m(xù)ore脂dimen手sion改toun條derst親andt行heco伏ncept亭ofc于ustom雕ers:足prese教nt(a踏rticu麥lated優(yōu))and賓pote謠ntial傅(una府rticu中l(wèi)ated琴).No畏wthe美conc誕ept/d乳efini懶tion乘ofex昂terna滋lcus姓tomer極sis膏quite廳stra騰ightf中orwar浪d.Ho貓wever竿,the艇conc思ept/d然efini緣tion花ofin貝terna群lcus攔tomer薦sis失somew嘉hatb梳lurre鼻d.Fo馬rthe閘sake但oft鐘hear請gumen械tsof比this堤pape賣r,we拳deli戴berat垂elyd芬efine義the網(wǎng)inter凡nalc河ustom初ersa節(jié)s‘st易akeho煮lders滋ofa遇comp啟any’.涉Let犯usas姓sume劈leade政rship窮運or匠prime歷oft薄heKa撐nji’s抱TQM鍬model傻,whi矩chis事focu骨sing閱onth朵enot界iono具f‘To腔deli您ghtt甚hecu底stome輝rs’a窩sthe焦inpu堵t呼ofth替esys耗tems席theor搭y.央遷T爹hepr滑ocess剖esco階nsist叼ofm朗anage丟ment滴byfa涂ctan刷dpeo摩ple-b反ased煙manag東ement蹦and腸theo識utput繩sare型deli章ghtc帳ustom計eror鏈cust史omer怎satis評facti遺onan闖dthu撇sthe晌‘bus梁iness腥exce膏l(xiāng)lenc至e’(p房erfor蟻mance蔑)皆.連What輝made繪TQM醒diffe須rent羽from跳other英mana加gemen螞ttoo穿ls/fr能amewo似rksi乳sthe燙‘com也mon’社notio反nof玩‘怠conti襪nuous拉impr棟oveme移n截t’(v優(yōu)irtua航lly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