What are the benefits and challenges of using TQM and balanced scorecard together?

1 Aligning strategy and quality

One of the main benefits of using TQM and BSC together is that they can help align the strategy and the quality of an organization. TQM provides a framework for identifying and eliminating waste, defects, and variation in processes, products, and services, while BSC provides a framework for defining and communicating the strategic objectives, targets, and initiatives of an organization. By integrating TQM and BSC, an organization can ensure that its quality improvement efforts are aligned with its strategic direction, and that its strategic goals are supported by its quality performance.

2 Engaging stakeholders

Another benefit of using TQM and BSC together is that they can help engage the stakeholders of an organization. TQM emphasizes the importance of involving and empowering the employees, suppliers, and customers in the quality improvement process, while BSC emphasizes the importance of balancing the needs and expectations of the different stakeholder groups, such as shareholders, customers, employees, and society. By combining TQM and BSC, an organization can create a culture of participation, collaboration, and accountability among its stakeholders, and foster a shared vision and commitment to quality and excellence.

3 Measuring and improving

A third benefit of using TQM and BSC together is that they can help measure and improve the performance of an organization. TQM provides a set of tools and techniques for collecting and analyzing data, identifying root causes, implementing solutions, and monitoring results, while BSC provides a set of metrics and dashboards for tracking and evaluating the progress and outcomes of the strategic plan, and identifying gaps and opportunities for improvement. By integrating TQM and BSC, an organization can establish a systematic and comprehensive approach to performance measurement and improvement, and use data and feedback to guide decision making and learning.

4 Balancing trade-offs

One of the main challenges of using TQM and BSC together is that they can create trade-offs and conflicts among the different perspectives and dimensions of quality and performance. TQM aims to achieve optimal quality in every aspect of the organization, while BSC aims to achieve a balance among the four perspectives of the organization. Sometimes, these goals may not be compatible or mutually reinforcing. For example, pursuing higher quality may increase costs, reduce efficiency, or lower profitability. Conversely, pursuing higher profitability may compromise quality, customer satisfaction, or employee morale. Therefore, an organization needs to balance the trade-offs and find the optimal point of integration between TQM and BSC.

5 Adapting to change

Another challenge of using TQM and BSC together is that they can require constant adaptation and adjustment to the changing environment and conditions. TQM and BSC are not static or rigid methods, but dynamic and flexible ones. They require an organization to continuously monitor and evaluate its internal and external factors, such as customer needs, market trends, competitor actions, technological innovations, regulatory changes, and social issues. They also require an organization to continuously review and revise its quality standards, strategic objectives, performance indicators, and improvement initiatives. Therefore, an organization needs to adapt to change and embrace innovation and learning when using TQM and BSC together.

6 Implementing effectively

A final challenge of using TQM and BSC together is that they can demand a high level of commitment and resources from the organization. TQM and BSC are not quick fixes or easy solutions, but long-term and holistic approaches. They require an organization to invest time, money, and effort in developing and implementing a quality culture, a strategic plan, a performance measurement system, and a continuous improvement process. They also require an organization to overcome potential barriers and resistance from the culture, the structure, the leadership, the staff, and the stakeholders. Therefore, an organization needs to implement effectively and sustainably when using TQM and BSC together.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?