I just read through the latest View from the Q post and related white paper discussing CEO challenges for 2012.  Not surprising stuff here…

What CEOs are failing to recognize is how the majority of what “they’re thinking about” all ties together with a quality program that is closely knitted into all of the organization’s strategies and subsequent activities.  The issue is ongoing and quoted from the report referenced, but I argue we’re in the process of a management evolution that is drifting away from this paradigm.  It’s just happening kind of slow…

“For some organizations, ‘quality’ remains a set of tools and techniques associated almost exclusively with quality control. For others, quality has evolved into a critical partner, closely linked with business model development and the enterprise-wide execution of long-term strategy to achieve results.”

This has been THE issue when it comes to “selling quality” and rationalizing with executives regarding the investment in terms of returns and not costs.  But, it seems this remains the challenge, and changing thinking is not easy.  Going from short-term thinking to long-term thinking requires more than just a mandate.  Fayol gave us four functions of management that start with planning… Start there.

Some positive examples that we are moving in the right direction to address the issues that are keeping these CEOs up at night include:

1) I’ve noted a change in textbooks, in as short of a time as six years, where quality is concerned.  Where it wasn’t mentioned at all when I started, there’s now a focus on ensuring quality though continuous improvement and not just how it relates to production control.  It wasn’t something we focused heavily on even through my graduate program.  In speaking with other professors and students, this is changing as well.  Super good news here!

2) Social media has only scratched the surface of how CEOs stay connected with successful case studies and current research.  I see these executives taking advantage of this more often and their primary source of media is moving into the digital age as well.  Podcasts, interactive publication apps and public forums are talking more and more about quality throughout the supply chain as an absolute must.  Let’s face it… quality is “in.”

3) I see younger people starting to care more.  I think their power lies in what kind of consumers they’ll be.  And, with an education system focusing on how to get it right, I expect they’ll be good decision makers as well.  If today’s CEOs pave the road, the executives of tomorrow will follow.

I recently read an article in Harvard Business Review that included an interview with Unilever’s CEO, Paul Polman.  It was such an inspiring interview to read because it was obvious that he got it.  He got how all of these things CEOs say bother them most come down to meeting and exceeding expectations with a focus on the long-term.

Innovation, human capital, global political/economic risk, government regulation, global expansion, cost optimization, customer relationships, sustainability, corporate brand and reputation, and investor relations… Incorporate quality into corporate culture and strategy and the rest falls in place.  Use the tools to keep you on track.  Quality control certainly has a purpose, but it’s not the goal.

Carletta Ooton, VP & Chief Quality, Safety & Sustainable Operations Officer for Coca-Cola, spoke at the recent ASQ event and changed my mind about this company.  Don’t get me wrong… I have a soft spot for Coca-Cola, but I also don’t hesitate to question what their role is in promoting bad habits through several products that arguably offer no nutritional value.  I’m all about free markets, but you have to at some point ask yourself what happens when people just can’t figure out how to make the best consumer choices.  Obesity and other health conditions related to several of their products are not a victimless crime and directly contribute to taxpayer burden down the road.    I really did want to know what she thought about this.  And, as I sat there squeamish at the thought of asking that question during the keynote, someone else sucked it up.  Not too surprising is that Carletta answered the question quite well and without a note of hesitation.  And, it actually made sense and tied in seamlessly with the corporate direction.  They really do offer a business model worth benchmarking.  What they do with marketing is magical!

I listened to Carletta talk about their 2020 vision and it was impressive.  Unless she was an amazing performer, she was genuinely passionate about it as well.  Everything she said focused on stakeholder value (strategic focus areas, 6Ps, etc.).  And, they take everything across the supply chain, which is an absolutely amazing feat considering the size of the company.  We’re talking about over 800 brands spread out to almost every area on the planet! (Sidenote: I learned that Coke is the 2nd most recognized word in the world after OK).

At the end of the day, what they’ve managed to accomplish is quite impressive and turns out to be a win-win from a profitability standpoint and from a stakeholder standpoint.  By owning the beverage market, they’re diversified enough to serve all demographics.  Who doesn’t need hydration? They offer choices and listen to their local markets.  They innovate.  They do as much as possible to reduce their impact on the planet.

Do I, or should I, blame Coca-Cola for me buying that Coke at the convenient store earlier… Not really.  Should someone else tell them they aren’t allowed to sell that product… Probably  not.  Should they just stop providing products that create profits and jobs… Unlikely.  So, it is what it is. (Simon Sinek would appreciate that one)

“Sometimes the simple things are best.”

“Protect the brand through strong quality governance and drive continuous improvement through quality excellence.”

~Carletta Ooton

Dorie Clark has me thinking about a recent blog post in which we’re asked to stop doing five things this year.  They’re totally reasonable, and I’m going to do this.

1) Responding like a trained monkey – I am an admitted “send-receiver”… I feel the need to check my email and respond to things at completely unreasonable times.  I think I can handle a simple once per hour check.  What can’t wait an hour? Anything urgent is going to notify me via iPhone anyway, right? Can I do the same with Facebook? That’s kind of asking a lot!

2) Mindless traditions – I’m already there… sick of the mindless and just need some creative inspiration and action!

3) Reading annoying things – I won’t get rid of The Economist print subscription, but I have cleaned up my Google Reader and think I have my stream of information well organized and condensed.  Also, Luke had recommended podcasts for the commute to HCC, so I’m thinking this will be a great way to multitask and even reduce my number of annual speeding tickets. (Note that also checking emails once per hour will likely improve my driving success as well)

4) Work that’s not worth it – I really need to give up the HOA this year.  I gave up one last year, but I keep hanging onto this responsibility because I feel like it’s my civic duty.  But, I’ve come to realize that HOAs are powerless to government legislation and people are going to do whatever the hell they want to anyway.  I do love the other members and our CAM though, so it makes it hard.  I’m keeping all the other stuff! It doesn’t take that much time, and I get enjoyment from being busy.

5) Making things more complicated than they should be – Been there, done that!