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Vince Desmond, the CQI’s CEO, looks at the importance of considering the difference between cost cutting and chasing efficiencies, and how leaders can create a core system so that their organisations can do it right, do it better, and do it right first time.
You may hear governments and organisations announce that ‘costs must be reduced’ or ‘economies must be found’. Often, however, these phrases are used when competitiveness and productivity are being overlooked, and cutting costs are prioritised over improving value.
It seems to me that leaders and policy makers too often refuse to consider the simple idea of how work is done. They’d prefer to focus either on grand, top-down management plans to ‘transform’ how people do work, or simply chop cost.
The cost of getting things wrong
The quality management community generally considers that an organisation that does not measure the cost of poor quality work is potentially losing up to 30% of its cost base by doing things inefficiently and incorrectly. Take, for example, the construction industry’s Get-it-Right campaign which has found that up to 25% of the cost of projects is consumed simply by getting things wrong. Removing that waste will not only make our construction sector more competitive, but create better value for customers and the environment.
And this is not simply a private sector issue. The UK 2008 Darzi Report, High Quality Care for All, was founded on the principle that improving the quality of care for NHS patients is both beneficial for patients, and offers better value for money for the taxpayer.
Creating the right environment for quality
There are two simple tricks to achieving this organisation-wide shift. The first is putting in place the right environment and equipping people with the tools to evaluate how work is done and to improve. The second is not to treat this as a one-off campaign (‘this year we are improving quality’) but as a way of doing business. Leaders set the tone. Quality professionals offer these easy-to-use tools.
The role of policy makers and leaders is to lead the core system of creating value for customers, and to unleash the innate human desire to do the right thing, to do it right and to do it better.
The rest relies on the very nature of humans. The vast majority of people go to work to do a good job. Most have an appetite to do it better. In fact this is a human trait we see in our daily lives, not just in our work. I see this in my teenage children who have perfected the process of getting up and arriving at school in the most effective and efficient way, ensuring they meet the strict requirements of school for smartness, homework and so on. Small improvements are made to allow precious extra minutes in bed or to video call friends.
This lack of focus on business process improvement goes to the heart of national strategies. The UK industrial strategy worries, amongst other more political things, about UK productivity, although interestingly not competitiveness. In response it focuses on investment in innovation, research and development, skills and digitalisation. All good stuff, but not a word about the main challenge: improving the efficiency and effectiveness of work. Simple quality tools combined with the leadership to empower people to improve business process has the potential to reduce huge amounts of wasted effort and resources, improve outcomes for customers and thereby improve productivity and competitiveness.
Leaders have little visibility over how well work is done and what happens between the cells on a spreadsheet, but a huge impact in setting the culture and tools for doing work well and improving. The role of policy makers and leaders is to lead the core system of creating value for customers, and to unleash the innate human desire to do the right thing, to do it right and to do it better. To do otherwise is a waste and misses a key component in the productivity and competitiveness puzzle.
Read more on our World Quality Week 2022 theme, 'Quality conscience: Doing the right thing'.
Costain shapes, creates and delivers pioneering solutions that transform the performance of the infrastructure ecosystem across the UK’s energy, water, transportation and defence markets. Here, Martin Davies, their Quality Director, Nuclear, shares five key learnings for achieving success through quality, in environments that are heavily regulated.
The delivery of safety-critical major projects across the infrastructure ecosystem is incredibly complex. Even more so when set against a backdrop of the energy crisis and the government’s drive for efficiencies. It has never been more important that as an industry, we demonstrate respect for the public purse and deliver value to the taxpayer, whilst maintaining the highest standards of quality.
For an organisation such as ours, a key way we can do this is by considering our projects as a portfolio, and rather than delivering them in silo, actively seek to exploit opportunities for sharing knowledge. By implementing a systems approach and examining the synergies between projects in the nuclear and defence, rail and energy sectors, we can turn key learnings into actionable insights. These can be used to redraw the model for successful programme delivery, ensuring that we are delivering value outcomes, efficiently – while never losing sight of the fundamental imperative of assuring quality.
As practitioners in the infrastructure market, we have taken our cross-industry experience from energy, defence and rail, to share five key learnings for achieving success through quality, in heavily regulated environments.
Our vision – what does best practice look like?
We believe that there are core foundations which have to be in place to assure high standards of quality. In safety-critical projects, the importance of process safety thinking needs to be established and embedded as a culture from the outset and underpinned by a strong quality culture. What do we mean by this? An integrated project team which is defined by a ‘one team’ mentality with a clear vision of what success looks like and the role of individuals in realising it, enhancing decision-making throughout the lifecycle of the project.
‘Production thinking’ and ‘building information modelling’ techniques are at the heart of this vision; a vision of standardisation where we only create bespoke assets where absolutely necessary, where we use data insights to fuel collaborative working and digital rehearsals to maximise the opportunity for off-site assembly, testing, trialling and commissioning.
Our five key learnings
- Adopt a holistic systems view.
- Establish and measure culture and behaviours.
- Embrace the power of digital.
- Standardise wherever possible.
- Establish a systems integration facility where the interaction of systems can be fully assessed before onsite installation.
Quality should play an ever more prominent role in transforming the performance of our infrastructure. If a strong quality regime is established at the mobilisation stage of complex major projects, with cross-functional buy-in, we can minimise the risk of unanticipated costs or delays to schedule. Furthermore, by adopting a systems approach which identifies synergies across the whole programme lifecycle, through standardisation and the use of digital tools, we can de-risk the trialling, testing and commissioning of safety critical systems and assure delivery to client expectations. This means eliminating waste wherever possible, while also creating social, economic and environmental value.
More on quality conscience
Read more of our World Quality Week 2022 blog series.
After its successful return in 2022, the CQI’s flagship awards will be back as part of a brand-new event, Quality Live, with a focus on professional development.