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- From: gadfly@cbnewsi.cb.att.com (Gadfly)
- Subject: Re: The Baldridge award (was "AT&T Universal Card (tm? by AT&T)")
- Organization: AT&T
- Distribution: usa
- Date: Thu, 5 Nov 1992 22:38:19 GMT
- Message-ID: <1992Nov5.223819.18119@cbnewsi.cb.att.com>
- Summary: Say what?
- References: <9a7q03Nob4P.00@amdahl.uts.amdahl.com> <45YE03kPb8uL00@amdahl.uts.amdahl.com>
- Keywords: AT&T UNIVERSAL CREDIT CARD VISA
- Lines: 85
-
- In article <45YE03kPb8uL00@amdahl.uts.amdahl.com>, jsp@uts.amdahl.com
- (James Preston) quotes me:
- > }> U.S. companies
- > }> are _already_ in a competition with the rest of the world. Why
- > }> hasn't that been sufficient to spur them on to higher levels of
- > }> quality?
-
- > }Because they didn't understand the concept. Because American
- > }management's fixation with quarterly profits destroys any
- > }consistent effort for the long term. Because until recently
- > }American industry dominated the world and never had to deal
- > }with serious competition, and so its organizational principles
- > }are the very antithesis of what is needed for quality...
-
- > I hope you didn't intend it this way, but the above sure sounds like
- > an apologist for American companies.
-
- What??? I state some of the biggest problems with American business
- today, and you take it to be an *apology*??? Those are the
- facts--those are what have to get fixed in order to produce quality
- products and services. Should they have attended to it decades ago?
- Sure. Did they have sufficient incentive--in the purest capitalist
- tradition--to do so? No. Do they have the incentive yet? God I
- hope so. Do they know what to do? A few do; most don't. Yet.
-
- > }If not, well, how would *you* do it?
-
- > I knew that the award came out of Congress. I was remarking on how
- > sad it is that U.S. businesses are so short-sighted that our government
- > felt it necessary to create this award in order to give companies a REASON
- > to improve their quality; it's sad that competition with the rest of the
- > world STILL isn't sufficient reason for those who run our companies to
- > get off their fat butts and start competing. How would I do it? I have
- > answered that already: I would not have created this incentive in terms
- > of a prize that companies can choose to "go for".
-
- But as I stated, that's not it's principal purpose, although businesses
- can--and some do--misuse it that way. Its purpose is to be an auditing
- tool for process improvement, and on the way to identify role models to
- emulate.
-
- > The reward for improving
- > quality is more customers, or better satisfied customers, or lower costs
- > or better products.
-
- Exactly--which is why we *don't* need the kind of award you describe
- below. Their satisfied customers--and the resulting P&L statements--
- are their awards. Businessfolks know who the stars are. But they don't
- always know why.
-
- > That is the message that I would send out. I would
- > have the Baldridge people going out looking for quality, and the first
- > place I'd have them start is Japan.
-
- Already been done. It's called the Deming Prize. And besides, many
- American companies now on the road to quality are very busy benchmarking
- Japanese processes.
-
- > You know the story of the mule that
- > you have to hit on the head with a two-by-four to get its attention before
- > it will listen to you? Well, I think that U.S. companies still aren't
- > really paying attention. Someone needs to really rub their noses in the
- > fact that companies in other countries are BETTER. As long as we still
- > blindly hold on to this romantic notion that American business is the
- > best, nothing will change.
-
- You're way behind the times. American companies know that the Japanese
- are better--because the Japanese are driving them into bankruptcy. The
- CEO of Xerox tells of his attaining enlightenment--2x4 style--when he
- figured out that Japanese makers were *selling* copiers more cheaply
- than Xerox could *produce* them. They embarked on an ambitious quality
- improvement program (winning a Baldrige in 1989), and have since regained
- their eroded market share and then some. All the US auto makers have
- been to Japan. Hell, Ford owns 40% of Mazda.
-
- What US companies usually don't know is what the root causes of their
- quality woes are and how to fix them. And as I've stated so many times,
- the Baldrige was created to do just that.
-
- *** ***
- Ken Perlow ***** *****
- 05 Nov 92 ****** ****** 15 Brumaire An CCI
- ***** ***** gadfly@ihspc.att.com <- New address.
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