If these
activities do not add value to an organization or do not
align with its strategic direction, they will fail to make
a meaningful contribution to the bottom line and they
will be discarded. Many companies have fallen into this
“activity trap” in trying to implement quality improvement
initiatives.4
Several recent studies have suggested that quality
improvement, in its present form, may not be able to
claim the kinds of successes that would justify current
levels of investment.5 According to a study by Matthews
and Katel,6 Douglas Aircraft was troubled by poor
earnings and an inferior competitive position. In 1989
the company implemented an extensive quality improvement
program; by 1990, continued losses forced
them to abandon it. Matthews and Katel also reported
that winning the Malcolm Baldrige National Quality
Award did not help the Wallace Co., a Houston-based
oil supplier, stay profitable. And they cited a survey of
500 companies conducted by Boston’s Arthur D. Little
that found that
[A] slim 36 percent said the [quality improvement] process
was having “a significant impact” on their ability to [be
competitive]. Some companies complain that such management
techniques cost more than they’re worth . . . .6
In another study, MacFarland7 cited that “federal
managers are ambivalent about [quality improvement]
because they do not fully understand the concept or the
connection between improved quality and cost savings.”
She based her claim on a survey of 600 federal
executives and managers conducted by the international
consulting firm, Coopers & Lybrand. The study suggested
that critical steps are being missed in the implementation
of the quality improvement process.7 Blewitt8
reported that most quality improvement initiatives
spend too much time focusing on the processes and
mechanics of the improvement program instead of the
end result, which is customer satisfaction. He also
pointed out that “every company should strive for continuous
improvement . . . . They need to be continuously
refined to reflect changes in the business
environment and in customer needs.” To work, quality
improvement initiatives should clearly define leadership
and communicate a vision for organizational change.8
Wilkinson’s research indicated that many failed
quality improvement initiatives were “implemented in