IS YOUR ORGANISATION
TRULY QUALITY CULTURED?
DANIEL KWOK
Managing Director Asia Pacific, Philip Crosby Associates II, Inc.
With the Enron / Arthur Andersen situation, the whole world now knows in no uncertain terms that a signature on a document is not necessarily a representation of truth. What Enron was and what Arthur Andersen certified it to be are two different stories.
In Japan, a well-known food business - went under as a result of labelling its domestic beef as imported beef. (Domestic beef is currently avoided due to fear of the mad cow disease.) Its reputation was earlier diminished severely by the surreptitious inclusion of expired
dairy products in its manufacturing process.
Enron and Arthur Andersen are companies that would have been regarded by the markets as “quality” companies. The word “quality” is an emotive word, alluding to a level of goodness, and capitalised for
image building. Usually when this word – quality – is used, there is a silent and subjective assumption of what it means.
We see quality objectively as “meeting the right requirements” – doing what we said we would do. Another word for this is “integrity”. Any lack of integrity will sooner or later lead to negative
consequences.
A ‘truly quality cultured” organisation is one where it is routine for people to “do what they said they will do”. Such a culture is formed
only when leaders are serious, and are known to be serious, about establishing what are the right things to do and getting them done right every time. This is practised whenever anything is done.
Whether it is an annual account statement or a quality assurance document, an auditor’s signature on a document may merely be evidence of an organisation being “audit-smart”. It does not guarantee the reality of what an organisation really is. It does not guarantee truth.
In the 80’s many corporate leaders saw the value of building organisational cultures based on operational integrity, that is: doing the right things right routinely. This is really a lifestyle choice that is an antithesis to endless, cyclical firefighting.
In the 90’s, however, the certification business emerged as a popular way of fulfilling “quality management” as a fundamental agenda item. Certification to an “international standard” became an easier objective to achieve than the development of the right culture. Sadly, for many,
certification of systems and procedures did not bear fruit. This is because leaders mistakenly thought the pursuit of passive systems and procedures could bring the same results as the pursuit of the right culture.
Where are you in the 21st Century? You may not be exactly on the path of the Enrons or the Arthur Andersens of this world. But if integrity is not in reality embedded into your day-to-day operations from the office of the chairman down to the floor you will continually be dealing
fires. The next one may be one that will bring you down. Is your organisation TRULY quality cultured? Or are you living an illusion? ◘
© 2002, Philip Crosby Associates II, Inc.