Innovation and the Future of Quality Name ASQ title Date

About the Presenter

Need for Innovation “Organizations…must embrace innovation.” “The need for innovation…is greater than ever…” “For any company to survive and thrive it is essential to satisfy the stakeholders through continuous innovation…”

Innovation Defined Instituting change that adds value to the organization by: Increasing efficiency Increasing effectiveness Reducing costs

Does Quality fit? Increased customer satisfaction leads to greater revenue Product design improvements result from employing good quality methods Product innovation often results from organizational development improvement

Does Quality Fit? “…must think of innovation as a systematically planned and organized activity.”

ASQ’s 2005 Futures Study The Forces of Change

History of Futures Study 1 st Study nd Study rd Study th Study

Three-step process Identifying the key forces that will shape the future of quality Developing scenarios of how the forces might unfold Considering the possible implications

 Key Forces

Globalization Key Force # 1

Threat or opportunity? Fluidity of the Internet Shifting trade politics New kinds of collaboration

Innovation/Creativity/Change Key Force # 2

Quality’s contribution to the top line Knowledge is king Nanotechnology, biotechnology, mass customization and personal manufacturing Innovation is critical Increased demand for “sensing” systems

Outsourcing Key Force # 3

First cousin to Globalization Work becomes more independent of place or space Emergence of virtual companies Swinging pendulum of outsourcing back to developed countries

Consumer Sophistication Key Force # 4

Rising expectations of product quality, seamless delivery and fresh features Quality is essential, but not sufficient Instant Internet knowledge empowers consumers National loyalty traded for cost/benefit Anticipatory skills grow in value

Value Creation Key Force # 5

Requires clarity and definition from stakeholder’s viewpoint Management systems must adapt Sustainability, waste elimination and the triple bottom line Quality must create value in everything

Changes in Quality Key Force # 6

Redefined to fit the needs of 21 st organizations Systems approach is key Premiums on anticipation, first to market, agility, and supplier network management People skills are critical

 Scenarios

How will the Key Forces play out in the future? What is most important to the future of quality? How can we use our knowledge to our strategic advantage?

Four scenarios of the future

Reality Therapy The same path we’re on

Global Warming Too little, too late

Pluralistic World Cooperation and collaboration

Innovative Edge Best of all possible worlds

 Implications

What does it mean for... Quality professionals Organizations and the quality field The American Society for Quality

Quality professionals The future is bright Learn the language of business and strategic quality New skills in: anticipation, change, innovation and systems New languages and cultural knowledge Basic quality tools are here to stay

“I see nothing but blue skies for the quality professional. There is enough work out there for all of us. It takes personal initiative to seek the skills and abilities associated with the career path we prefer.” Grace Duffy Quality consultant and ASQ Fellow

“The development of quality leaders should include development of critical thinking skills, strategic thinking, open-mindedness, predictive modeling, and value creation analysis." Cecilia Kimberlin Vice President, Abbott Laboratories

35 0pportunities a Day Everyone has over 35 opportunities a day to do something differently Some people recognize the opportunities, some don’t

Diversity is the key Understanding individual styles:  Idea Creator  Idea Embellisher  Idea Perfector  Idea Implementer

Promoting Innovation Creating the right climate Selecting and using idea generating techniques Selecting ideas for further exploration

Innovative Thinking Tips Search for possibilities – not solutions Go beyond the first best answer Think about your thinking plan What tools will you use?

Architecture for Sustained Innovation Shared vision and strategy Environment supports Resource allocation Process networks Programs Skills development Rewards and recognition External stakeholder innovation

Organizations and the quality field Systems approach to quality Speed Anticipation Change and transformation Sustainability

“Quality, environmental, safety and health are all coming together, along with finance and security. Our profession is no longer focused only on quality. We use Six Sigma tools for Sarbanes-Oxley, sales and supply chain management.” Dennis Arter Auditing expert and ASQ Fellow

Getting Leadership to Listen Make the Economic Case for Quality

ASQ ASQ must influence and lead the way for the quality community Implications help with strategic planning Futures Study being used to plan new offerings and future product/service portfolios

The Future: Taking Quality in Bold New Directions

It’s up to you! How will you shape the future of quality in your own work? What skills will you need to succeed in the future?

ASQ. Make Good Great ™