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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锹y诞Based炎ont炸hesi疯mple于conce源ptof遇Syst扇emsT销heory喜(Inp条ut-Pr遣ocess影-Outp即ut)a长ndmo增delb搬uildi飘ngte洒chniq捐ue,f烧irstl胃ywe艺rearr慢anged玩ort蓄riang减ulate躁dthe摄Kanj仰i’sT巴QMmo饭dela漏ndth兔eBSC百fram女ework压tof魂itin铺toSy娘stems董Theo店ry.S影econd群ly,w毙ethe方oreti别cally皆comp脂ared为these赤tria建ngula殿tedc身oncep饿tssy院stema肃tical宵ly.T佳hirdl销y,af都tera逝nalys允is,w骑epro能posed雹the馒BSC-O进rient趁edTQ调Mcon才cept厉forr侄efere毒ncea慌ndfu忘rther车test拼ingi晌nthe掏real袖worl忍d.岩Liter胶ature抱Revi助ew罩Syste润msTh着eory狗and/o鹿rMod狼elBu羽ildin火g话Accor郑ding竖toBo遮nini筛et,a虽l.(1破999),材real虑-worl奔dpro谋blems伤tend裤tob伞eeno惑rmous攻lyco捆mplex词such嗽ast塑hepr遮oblem雄sand内the绘main甚aimo申fthi醋sres爽earch掘pape丰r.Th陈erea瑞reli众teral妈lyan傅unco违untab翁lenu搂mber指ofin盘heren烛tfac殿ts(t慧acit拥orim田plici晴tkno斜wledg元e)in麻any蹲empir你ical填situa以tion.宫Furt嫁her,束every造pote冬ntial啦cour何seof买acti盯onst夹arts突acha被inof溉caus暴e-and蚕-effe访ctor疯inpu抚t-pro渡cess-回outpu懒t,an持dint富eract五iont料hatl害ogica乔llyi画swit伟hout赛end.装Amod统elis薯asi据mplif地iedr趋epres久entat猜iono慨fan铅empir毙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渗amod袍elth通atis呀asc或lose漂aspo责ssibl携eto静reali取tyin筹ever急yasp准ect,恭rathe群rtha胶n,re版searc寻hers屯want宴thes器imple猛stmo穴delt奖hatp免redic霞tsou虑tcome尝srea尽sonab击lywe肠llan崇dis占consi铁stent希with车effe净ctive受acti蜡on.T督hete肝chniq起uefo珍rdes访cribi住ngan时drel瞎ating或vari肃ousv但ariab园less慧ucha浊s粱驶exoge己nous,梯endo布genou脂s,in住terme锐diate校,dec孤ision欧and阁expec吃tedp逮erfor原mance酸vari招ables遥oro倚utcom轨es/me耕asure耕s(as泪per淡Figur喘e2),翅depe溪ndso员nlar泄geex心tend倍ofth沸enat暑ureo幕fthe湖vari妇ables江.The畅simp没lefo亏rmof劝syst经emst温heory膨and/闯ormo爆delb摸uildi劣ngis约asf液ollow蚁s:妨Total呈Qual垦ityM违anage供ment啦(TQM)接TQMh吵asbe创enwi字dely劫accep劲tedb怒ythe槐busi谷ness夏pract秤ition怨ersa悔ndac浅ademi喝csto蹈impr猾ovet鬼hequ猴ality以,if狠nott件heor晓ganiz价ation蜂effe紧ctive浪ness,切ofa椅norg晃aniza掌tion坐conti阳nuous辩ly.H滨oweve楼r,th讽erea伍rema祝nypr剥oblem鬼sof雾apply净ingt禾hepr芹incip液leso棵rcon涉cepts组ofT阔QMto侨the监real箩world编situ储ation栗s.Th奴emaj帜orpr转oblem裁ist膨he‘s引tanda毫rdiza袍tion’球ofd割iffer何entT挡QMmo尺dels/材conc傲epts妇thems务elves寇,if墙nott茂he‘u惜nific铲ation美’of花vario佳usTQ桨Mmod们els奖/希conce眨pt让s枯.(Th届isis靠one句ofth川eare昂as,w粉hich届needs泽furt好herr吊esear喝ch).寇There融are竹many汽famou帝squa奇lity竞gurus本such少as钥Phili巧p.N碰Crosb州y(Fo壤urtee净nste父psto握qual黑ityi悦mprov消ement愧),掀Josep者hMJ俩uran玉(Ten纪steps直toq反ualit屡yimp政rovem畅ent),励and泡Edwar单dsDe蜜ming丹(Four副teen行point油sfor陷mana显gemen齿tor燥thef基amous供Plan轮–Do–胃Check愿–Act范/PD观CACy润cle).吧Like迈many均othe茧rman年ageme拦ntco每ncept卖sor纤tools浪,TQM邮does叼have午some译prob若lems.领Firs禾tly,希thep涌hilos系ophie寺sof闪these知guru告sor明their虾“ste期ps/奋point针s”ar滥enot株buil希ton罚thet识echni棕ques攀ofmo该delb寺uildi水ngas于such嗽.It宁takes览time轿for含thef勉ollow卸erso闭rbel资iever势sof估TQMt昆ocom汁prehe忘ndth夏e‘bi见gpic而tures疲’of埋their守prof拌ound交philo按sophi陷es.N呜evert奖heles轿s,fo类rthe虽sake薯oft风hepu垄rpose躬sof绪this绑resea崭rch,邪wede泉liber痰ately膊sele课cted立theK美anji’辅sTQM损mode滑l椅/叶conce释ptfo役rfur膛ther竖discu殃ssion悦and骑inves咽tigat傅ion,铅asit乐ise仰asily项bein乒gund判ersto后od.T木hemo港delc安onsis毁tsof帖the怕‘prim忌e’(L包eader记ship)气,fou登rpri失ncipl家es(d身eligh忘tcus妻tomer继,man少ageme堆ntby琴fact列,peo轧ple-b刘ased策manag兼ement颗and扬conti赴nuous晕impr寸oveme潜nt)a哀nd宅州eight膝sub-塘break充down研conce皮pts(剑Pleas匹eref兰erto祖Figu瓶re3)哄.垂Aswe线argu听etha皆t绪theu添ltima缸tepu猛rpose贼of喂allb奔usine车sspr貌ocess喘es合is隔aimi钞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俩oft甘hetr涝aditi丈onal田divis雅iono叨fcus惕tomer狮sint贱oext蜜ernal轻and趴inter险nal,蓬wewo俭uldl惠iket皆oadd杏one毙more脂dimen手sion改toun条derst亲andt行heco伏ncept亭ofc于ustom雕ers:足prese教nt(a踏rticu麦lated优)and宾pote谣ntial傅(una府rticu中lated琴).No畏wthe美conc诞ept/d乳efini懒tion乘ofex昂terna滋lcus姓tomer极sis膏quite厅stra腾ightf中orwar浪d.Ho猫wever竿,the艇conc思ept/d然efini缘tion花ofin贝terna群lcus拦tomer荐sis失somew嘉hatb梳lurre鼻d.Fo马rthe闸sake但oft钟hear请gumen械tsof比this堤pape卖r,we拳deli戴berat垂elyd芬efine义the网inter凡nalc河ustom初ersa节s‘st易akeho煮lders滋ofa遇comp启any’.涉Let犯usas姓sume劈leade政rship穷运or匠prime历oft薄heKa撑nji’s抱TQM锹model傻,whi矩chis事focu骨sing阅onth朵enot界iono具f‘To腔deli您ghtt甚hecu底stome辉rs’a窝sthe焦inpu堵t呼ofth替esys耗tems席theor搭y.央迁T爹hepr滑ocess剖esco阶nsist叼ofm朗anage丢ment滴byfa涂ctan刷dpeo摩ple-b反ased烟manag东ement蹦and肠theo识utput绳sare型deli章ghtc帐ustom计eror链cust史omer怎satis评facti遗onan闯dthu撇sthe晌‘bus梁iness腥exce膏llenc至e’(p房erfor蚁mance蔑)皆.连What辉made绘TQM醒diffe须rent羽from跳other英mana加gemen蚂ttoo穿ls/fr能amewo似rksi乳sthe烫‘com也mon’社notio反nof玩‘怠conti袜nuous拉impr栋oveme移n截t’(v优irtua航llya裕llTQ的Mmod绸els/c娇oncep济tsfo撑cuso歪nthe曲noti用on),密which退ist包hefe刑edbac凉kloo传pof候syste秃msth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