Strategic Planning Steps - Total Quality Management Approach

Once the vision of the organization and the mission of the internal work groups have been identified and communicated, a documented business plan of the organization is followed upon and the results are compared and analysed against the objectives.

Total Quality Management (TQM) is a powerful, yet simple method of process improvement to achieve customer satisfaction, without the need for substantial additional resources. TQM anticipates customers’ needs and encourages employees’ participation and ownership of work processes. It is an essential first step, which allows an organization to define its own quality standards, compete on a higher level, exceed customers’ expectations, and increase profitability. Successful implementation of TQM requires a focus

on processes, systematic thinking, teamwork, cross-functional management, and an understanding of how and why the output or result of one’s work can have an impact on the next process. That means coordination and communication across, as well as through the hierarchies of the organization is essential.

Applying TQM requires understanding and applying methods to identify and solve problems, and improve on process cycles. The approach is an applied variation of the scientific method and process of problem-solving, called PDCA, “Plan-Do-Check-Act”.

 

The cycle (Shewhart cycle) below consists of the four steps from which the basic systematic analytical approach can be applied to improve quality and raise business standards. In short, to elevate the quality of the entire business process in a dealership, four basic steps must be taken as follows;

Step 1: Develop a business plan.

Plan to improve your operations first by finding out what things are going wrong (that is identify the problems faced), and come up with ideas for solving these problems. A business plan by definition is a written document describing the nature of the business, the sales and marketing strategy, and the financial background, of which contains a projected profit-and-loss statement. A business plan is also a road map that provides directions so a business can plan its future to avoid bumps on the road. Once the business plan is thorough and accurate, and kept up-to date, it will be an investment that pays big dividends in the long term.

Step 2: Operate according to this plan.

Do changes designed to solve the problems on a small or experimental scale first. This minimizes disruption to routine activities while the changes are tested for their workability. This can be summarised as testing the theory, recommending the action, and implementing the planned change, initially on a small scale. Measures are also to be established and data is to be collected.

Step 3: Understand and analyse the results of the plan.

Check whether or not the small scale or experimental changes are achieving the desired result. At the same time, continuously check nominated key activities to observe the results. With these results, summarise the data, identify the root causes, analyse, evaluate, and compare the effects, of the actual change with expected or planned outcomes.

Step 4: Take necessary countermeasures so that results are reflected in the future plans.

Act to implement changes on the results. Make changes in the “plan” where expectations are not met. At the same time, involve other persons (other departments, suppliers, or customers) affected by the changes and whose co-operation is needed for the changes to be implemented on a larger scale, or those who may simply benefit from what has been learned (of course, these people could already have been involved in the Do or Check stage). Grab this advantage and repeat the process to

achieve higher performance levels.

Planning is vital to increase profitability. Despite criticisms, many researchers suggest that formal planning systems do help managers make better strategic decisions. For strategic planning to work, it is important that top-level managers plan not just in the context of the current competitive environment but also in the context of the future competitive environment. To try to forecast what the future will look like, managers can use scenario planning techniques to plan for different possible futures.

The great virtue of scenario planning is that it can push managers to think outside the box, anticipate what they might have to do in different situations, and to learn that the world is a complex and unpredictable place that places a premium on flexibility rather than on inflexible plans that may turn out to be incorrect. Managers can also involve operating managers in the planning process and seek to shape the future competitive environment on strategic intent by prioritization of opportunities, management of risks, co-ordination of activities, communication of expectations, motivation of

organization and personal learning.