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The Summit: A Quality Management Systems Blog

Applying QMS Principles to everyday life, or how the Eagles can finally win a Super Bowl part 2

In part one of this series examining the eight quality management principles of the ISO 9000 series, I looked at the principle of customer focus and how it applies to the Philadelphia Eagles. Now I am going to shift my focus to the second principle, leadership. Athletics and leadership are a natural fit, but applying it to the overall business is a bit more complex.

 The second quality management principle is summarized thusly: “Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.” With an NFL franchise, you can delineate between the organizational leaders and the team leaders. The organizational leaders include the owner, GM, and other members of the front office responsible for business decisions while the team leaders are the players and coaches directly involved in on-the-field results.

 Since 1994, the Eagles have been owned by Jeffrey Lurie. By almost any measure the team has been a model franchise during this time. The Eagles have been to the playoffs 11 times since Lurie took over, which is only slightly less than the 14 times they reached the post season in their first 62 years of existence. The construction and opening of Lincoln Financial Stadium is further proof of Lurie’s commitment to the team. The organization he purchased for $185 million is now worth $1.16 billion, so he has clearly proved himself to be a strong and positive leader.

 Arguably the second most important figure regarding the success and leadership of the Eagles is head coach Andy Reid. Hired following the 1998 season, Reid is now the longest-tenured coach in the NFL. In addition, Reid has served as Executive VP of Football Operations since 2001 (giving him the final word on football matters for the organization). Reid’s time with the Eagles has been the most successful in franchise history. He has compiled a record of 126-81-1 in the regular season and 10-9 in the postseason. Those 136 total victories are more than twice as many as the second most accomplished coach in franchise history (Greasy Neale had 66 wins from 1941-50).

 Stability under the stewardship of Lurie and Reid has been a perfect recipe for success for the Eagles. However, during this time Eagles have not won a Super Bowl. In the first decade of the 21st century, the Eagles won more games than any other team in the NFC  (103) and played in five conference championship games. Sadly, this resulted in a single Super Bowl appearance: a 24-21 loss to the New England Patriots in Super Bowl XXXIX.

 From an on-the-field personnel perspective, talent has not been an issue for the Eagles. Since 1999 the team has sent 66 players to the Pro Bowl. Was the problem simply former quarterback Donovan McNabb, who despite being the franchise leader in every meaningful passing category just couldn’t seem to inspire his teammates and fans like Tom Brady, Drew Brees, or even Eli Manning? Despite all the success McNabb had, I fondly recall his substitute Jeff Garcia’s “Merry Christmas Philadelphia” game in 2006 as my favorite win of the decade.

 Or is it Reid, who as head coach has a reputation (well deserved) for botching end-of-game clock management? New England’s Bill Belichick is the second longest tenured coach in the league after Reid and he has led his teams to five Super Bowls and three championships. Those two Super Bowl losses came at the hands of the New York Giants and Tom Coughlin, who this year coached his team to their second championship in four years with a roster that seemingly has no discernible advantage over Philadelphia in terms of the on-the-field product. What is missing for the Eagles?

Leadership has repeatedly brought the Eagles to the brink of the Promised Land but failed to push them over the edge. Reid will be back next season, so hope for an intangible change lies with quarterback Michael Vick (who, it should be noted, was on the other side of the Eagles’ lone NFC Championship victory of the last decade). This past summer, elite players flocked to the Eagles for the chance to play with Vick. Though the results from his first full season were disappointing, I’m eager to see if his leadership – perceived or real – is what the Eagles have been missing.

So what can we learn from this and how does it apply to you? Businesses with strong leadership find ways to align their team’s performance with the organization's vision. Do you understand your vision, have you communicated this to your team, and have you aligned your team’s activities to help achieve your vision? If you have then you should take heart. While you may not reach or win the Super Bowl of your industry, you will probably consistently contend for it. Being in the top echelon of players in your field is a noteworthy achievement, and applying quality management principles will go a long way to getting you to where you want to be.

Applying QMS Principles to everyday life, or how the Eagles can finally win a Super Bowl - part 1 of 8

As noted on this blog previously, having a functional Quality Management System (QMS) in place is simply good business. The ISO 9000:2008 standard is based on eight quality management principles, which are:
1) Customer Focus 5) System Approach to Management
2) Leadership 6) Continual Improvement
3) Involvement of People 7) Factual Approach to Decision Making
4) Process Approach 8) Mutually Beneficial Supplier Relationships

These broad categories represent the most basic tenets of a successful QMS. While there is not a single universal QMS model that will fit all businesses, the main principles should always be considered. Today, I am going to start a new series of posts that takes a deeper look at the basic principles of a QMS and applies them to an unusual business, but one that is near and dear to my heart – the Philadelphia Eagles. Why should a sports team consider quality management principles? One big reason is that although a professional sports team’s product is primarily entertainment it is still a business. The performance of the business year in and year out  can have a  substantial effect on revenue from various sources for itself and its economic ecosystem (i.e. the city where it’s located).

As noted above, the first principle of a QMS is customer focus. A business does not operate in a vacuum, but rather it must fill a need. A great business will fill that need better than its competitors. The most tangible product of a successful operation is happy customers. As the principle states, all “Organizations … should understand current and future needs, should meet customer requirements and strive to meet customer expectations.” In professional sports, it is easy to determine how you are doing compared to the competition because performance is literally measured in wins and losses. The win/loss record in turn drives a secondary yet critical measure of success and that is customer satisfaction, which can be expressed through ticket and merchandise sales, web boards, or local radio call-in shows. In the case of the Eagles, the roughly 6.5 million residents of the Delaware Valley – as well as numerous ex-pats throughout the world in places like Los Ranchos, NM – are happy to let management know how they are doing.

In some areas the the 2011 Eagles can show evidence that they were a customer focused organization. The team acquired several players during the off season with the goal of having a team that would play in the Super Bowl. Unfortunately for fans, the team that started the year with high aspirations needed a late season surge to attain a mediocre 8-8 record. So while you can make the case that the Eagles were customer focused as evidenced by their investment in new personnel, the team failed to effectively manage customer expectations since they completely missed the play-offs. The team repeatedly frustrated fans with their inability to play competitively for four quarters on a consistent basis. The Eagles were not a bunch of scrappy ne’er-do-wells with little chance or expectation of success. Their roster included ten former Pro Bowl players. If they had managed to hold just one fourth quarter lead, they would have won the NFC East with a still underwhelming 9-7 record and hosted a play-off game. With four consecutive wins to end the season, who can say how the Eagles would have fared once they reached the post-season?

What is the bottom-line impact of the Eagles’ poor performance this season? According to the Philadelphia Convention & Visitors Bureau, it starts around $10 million. At least, that is the amount of money that a single home play-off game is estimated to bring in to the city. Furthermore, there is the lost goodwill and support of the customers. Instead of cheering the team on through a post-season run and buying championship merchandise, some fans are instead putting their efforts (through chants, mobile billboards, and t-shirts) towards calling for the firing of head coach Andy Reid.

So the bottom line for your business is are you making the right investments in your product or service offerings, do your customers know what to expect from you, and do you have a means of determining how well you are fulfilling your customer’s expectations? These questions might not be easy to answer, but you should ask and answer them nonetheless. Periodically you should reassess your answers as you collect new data, and use the information to continuously improve on this important QMS principle of being a  customer focused organization.

Meanwhile I  will have to wait until next year when the Eagles will have another chance to meet and hopefully surpass my expectations.

Why Do Companies Become ISO Registered?

If you have ever wondered why companies choose to register their quality management systems with international standards then you may be interested in this. The most recent issue of ISO Focus+ details the results of a far-reaching survey launched last year to gauge current and potential user interests in the Quality Management System (QMS) series of standards, chiefly ISO 9001 and ISO 9004. The survey responses were demographically diverse, with returns coming from 122 countries and covering small-to-large companies and as well as representing the services, manufacturing, and software industries.  With nearly 12,000 responses, the results give a clear understanding of the benefits of implementing a QMS.

 

From a total of 11,722 respondents to the user survey I’ve selected the top three reasons. A total of 4,222 companies cited customer satisfaction as the key influencing factor behind certification, 3,689 indicated “market need”, and 3,290 stated it was a customer mandated requirement.  I found these results quite interesting. While the ISO standard is focused on improved operations the reality is that the primary benefit, at least initially, is more closely tied to a marketing advantage.

 

Digging deeper into the survey results show several additional tangible benefits for QMS users.  These include increased management commitment, better supply chain management, and improved financial performance.  Finally, the survey shows that for users looking to integrate ISO 9001 with another management system standard the most feasible option was an environmental management system, which is covered under the ISO 14001 standard.

 

Treeline Consulting is positioned to help you achieve the benefits of the adoption of ISO 9001, AS9100, ISO 13485, and ISO 14001. We have already shepherded industry-leading companies in New Mexico through the certification process.  It may not be too long before your customers require that you register to one or more of these standards, so it may be in your best interest to take a proactive approach and look into this sooner rather than later. Contact Treeline today at (505) 508-5161 for more information.

Why Do You Need a Quality Management System?

Current State
Business owners and managers all agree that quality is an important part of a successful business. Whether your Quality Management System (QMS) conforms to a recognized international standard such as ISO 9001, or whether you have developed and implemented your own program, every successful business needs an effective QMS. By investing in a quality program you can avoid the expense associated with product recalls or missed sales from customers lost as a result of quality system failures. More importantly you have better control over the day to day operations that define your business.

The Problem
In a small business it is often impractical to budget for a full time quality department. A common solution is to double or triple “hat” your existing staff and add “quality” to their assigned responsibilities. Your staffs are already stretched thin though, so the effectiveness of your quality program can be compromised despite the fact that everyone is putting in extra hours to keep up with the needs of the business.

A Solution
Sometimes outsourcing the responsibility for your Quality Management System makes good sense. It allows you to focus on your core competencies, while still deriving all the benefits from an in-house quality department. The tasks are performed by a subject matter expert, and there is the proper organizational separation of the quality function. Another benefit is that you can adjust the level of involvement from basic conformance with quality standards to full integration of the quality management system with every aspect of your business. For more information or to find out how a quality management system or outsourcing your quality function can help your business, please contact us at 505/508-5161.

Treeline Consulting, LLC
www.treelinenm.com

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