The impact of Quality Standards on Firm Attractiveness Standards in Action The Impact of Quality Standards on Firm Attractiveness Author: Ekant Veer Lecturer in Marketing School of Management University of Bath

The impact of Quality Standards on Firm Attractiveness Standards in Action Overview What constitutes assured quality and reliability? How can quality be communicated effectively? What role do brands play in consumer perceptions and behaviour? Can Quality Standards represent a high quality brand for a firm?

The impact of Quality Standards on Firm Attractiveness Standards in Action Quality and Reliability Assurance A number of different authors have examined the question of what constitutes good quality. Before a firm can leverage its high quality procedures or products one must have an understanding of the antecedents of high quality.

The impact of Quality Standards on Firm Attractiveness Standards in Action Quality and Reliability Assurance From the literature 15 different factors were identified as being antecedents of quality assurance These factors include: –the use of benchmarking –supplier quality management –top management leadership –the role of the quality department –team work structures These 15 factors were then synergised into 5 Critical Success Factors (CSFs), or those factors that are essential to developing a high quality organisation.

The impact of Quality Standards on Firm Attractiveness Standards in Action Critical Success Factors 1.Senior Management Commitment 2.Internal and External Customer Relationship Management 3.Process Design 4.Process Management 5.Process Measurement

The impact of Quality Standards on Firm Attractiveness Standards in Action Senior Management Commitment This CSF relates to the way that senior management view quality and reliability assurance. The literature shows that it is essential for a top down approach to quality within an organisation. A culture of quality should be disseminated through all levels and all departments of an organisation, starting with the senior managers.

The impact of Quality Standards on Firm Attractiveness Standards in Action Internal and External Customer Relationship Management Long-term relationships and communicating expectations with both internal and external customers was seen as another CSF from the literature. Both communication and delivery of processes is crucial for quality to be assured. Gaining increased involvement from stakeholders in a quality regime helps improve relationships and communication regarding quality.

The impact of Quality Standards on Firm Attractiveness Standards in Action Process Design Much of the literature is devoted to the importance of good process design. Focusing on how to minimise double handling in a process, unnecessary paperwork or establishing minimum training requirements are some common examples. With a well designed process there is less need for costly reworking and redevelopment as problems arise.

The impact of Quality Standards on Firm Attractiveness Standards in Action Process Management This CSF relates to how a process is maintained and managed using a systemised approach. Documentation oriented quality systems play a key role in aiding process management. Removal of unnecessary bureaucracy and levels or management are common tactics in improving process management.

The impact of Quality Standards on Firm Attractiveness Standards in Action Process Measurement This CSF acts as a key feedback mechanism to aid in the management and development of the quality systems and processes. It is often seen as an underused element of quality assurance. Focus is on continual measurement of quality and reliability with an aim to aid continuous improvement of the process.

The impact of Quality Standards on Firm Attractiveness Standards in Action How the CSFs Interact

The impact of Quality Standards on Firm Attractiveness Standards in Action Task Take the conceptual diagram and apply it to your organisation. Remember, a process does not need to be restricted to a production line or manufacturing firm, but can incorporate services and other less tangible roles.

The impact of Quality Standards on Firm Attractiveness Standards in Action Communicating Quality If it was felt that quality assurance was key to building external partnerships then each of the CSFs would need to be communicated. The cost and complexity of this form of communication can be beyond most organisations. However, the importance associated with quality in some industries, such as pharmaceutical manufacturing, necessitates some means of reducing perceived risk in the eyes of potential partners.

The impact of Quality Standards on Firm Attractiveness Standards in Action Branding of Quality Branding offers a solution to these communication problems. A brand is a name, term, sign, symbol or design, or combination of them which is intended to identify the goods or services of one seller…and to differentiate them from those of competitors (Kotler, 1991). Brand equity is the differential effect of consumer response of brand knowledge on consumer response to the marketing of the brand (Keller, 1993).

The impact of Quality Standards on Firm Attractiveness Standards in Action Branding of Quality Therefore, an organization could associate themselves with a brand that symbolises high quality and, so long as this brand was strong enough, be able to change the perceptions and behaviour of potential customers. For example, a YSL business shirt may be preferred over an unbranded shirt from the same retailer. Similarly, a firm with ISO accreditation may be preferred over a firm without ISO accreditation when high quality is a key factor in ones decision making.

The impact of Quality Standards on Firm Attractiveness Standards in Action ISO as a Brand ISO has shown mixed results in actually improving the quality of a firms processes and products. However, ISO does offer an internationally recognised brand that helps alleviate risks associated with poor quality.

The impact of Quality Standards on Firm Attractiveness Standards in Action ISO as a Brand When the risks of partnerships with poor quality stakeholders is high the importance of reputable Standards, such as ISO, increases significantly. As such, the demands of attaining accreditation are often offset over time. However, the tangible benefits may be hard to quantify, e.g. how much does one attribute to keeping a long-term partner or ones reputation improving in the eyes of a new partner.

The impact of Quality Standards on Firm Attractiveness Standards in Action Task Recall a business dealing or occasion where a customer may have been swayed due to a perception of either poor or excellent quality levels in your or another firm. –Have you ever used your ISO accreditation to convince a potential partner to do business with you? –Has the lack of a Standard ever explicitly led to a lost deal? –Do you feel that Standards are appropriate for your industry? –Do you think Standards are seen as more important to some countries compared with others?

The impact of Quality Standards on Firm Attractiveness Standards in Action Conclusion Quality is a multi-faceted concept and as such requires a significant communications contribution to effectively show that ones firm is able to assure levels of high quality. Firms utilising quality Standards, such as ISO, are able to leverage associated meanings of the brand and communicate a sense of high quality more effectively and efficiently. The implementation costs of ISO are often offset by the improvements to brand image and brand equity if communicated to prospective stakeholders effectively and the industry demands high quality.