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1、Value-Creation through the Balanced Scorecard Oriented TQM Concept(Authhors: Dr. Mikke C. K. Lam and Mr. Q.S. Renn)Beijiing WWesteern CConsuultannts (m)AbstrractThis papeer trries to ssolvee somme off thee isssues conccerniing ttotall quaalityy mannagemment (TQMM). FFirsttly, whatt doees a TQM (buss
2、inesss exxcelllencee) coonceppt/moodel lookk likke? AAre tthesee TQMM connceptts/moodelss theeoretticallly ssoundd? Woould the judgging frammeworrks aand ccriteeria of ssome quallity awarrds ssuch as HHong Kongg Mannagemment Assoociattion (HKMMA) QQualiity AAwardd be the TQM concceptss/moddels? Secc
3、ondlly, aare TTQM mmodells reelateed too othher mmanaggemennt coonceppts ssuch as tthe BBalannced Scorrecarrd (BBSC)? Thiirdlyy couuld wwe inntegrrate the TQM conccept withh BSCC fraamewoork tto foorm aa vallue-aaddinng coonceppt? Thee maiin aiim off thiis paaper conccernss witth thhe prrocessses of
4、 bbuildding up tthe BBalannced Scorrecarrd Orrientted TTQM cconceept ttheorreticcallyy, foor whhich the basees arre coonjoiiningg thee Kannjiss TQMM moddel aand tthe fframeeworkk of the BSC withh refferennce tto thhe juudginng frramewwork and critteriaa of HKMAA Quaalityy Awaard. Baseed onn thee con
5、nceptt of Systtems Theoory aand mmodell buiildinng teechniique, firrstlyy we triaangullatedd thee Kannjiss TQMM moddel aand tthe BBSC fframeeworkk to fit intoo thee Sysstemss Theeory. Seccondlly, wwe coomparred tthesee triianguulateed moodelss witth reefereence to tthe jjudgiing fframeeworkk andd cr
6、iiteriia off HKMMA Quualitty Awward systtematticallly. Thirrdly, aftter aanalyysis, we propposedd thee BSCC-Oriienteed TQQM coonceppt annd itts coonceppt maappinng foor reefereence and furtther testting in tthe rreal worlld. TThe eexpeccted outccomess of thiss ressearcch arre soolvinng thhe abbove-m
7、enttioneed reesearrch pprobllems. Thee ulttimatte aiim off thiis reesearrch iis too forrm thhe cooncepptuall moddel oof BSSC-Orrientted TTQM cconceept ffor ffurthher ttestiing bby prractiitionners and acaddemiccs off TQMM in ordeer too gaiin moore cconcrrete expeeriennces or tthe mmanaggemennt knnow
8、leedge of tthe wworldd.IntrooducttionThe oorigiinal or ttradiitionnal aapprooachees off quaalityy mannagemment weree verry muuch pproceess ooriennted. Witth thhe addventt of Totaal Quualitty Maanageementt (TQQM), orgaanizaationns beegan to ffocuss on the needds (rrequiiremeents) andd wannts (exceeed
9、inng thhe reequirremennts) of ccustoomerss botth exxternnallyy andd intternaally (Willkinsson, 19922). TTheree is no ddoubtt thaat thhe isssue of custtomerrs bbecommes tthe ffoci of all kindds off mannagemment toolls annd coonceppts. On tthe ootherr hannd, oone oof thhe baasic concceptss of TQM is t
10、the ssysteems ttheorry (iinputt-proocesss-outtput). Thhat iis too sayy, thhe innputss-proocessses-ooutpuuts (actiivitiies) of aan orrganiizatiion aare aaiminng att thee fullfilllmentt of the needds annd waants of tthe ccustoomerss succh ass thee connceptt of Too dellightt cusstomeers, whiich iis thh
11、e innput or sstartting poinnt off thee whoole vvaluee-addding chaiin off bussinesss prrocessses so tthat the outpputs are cusstomeers satiisfacctionn/dellightt annd thhus tthe ffinannciall perrformmancee. Iff we acceept tthis simpple llogicc of doinng buusineessess, wee stiill hhave to ssolvee, att
12、leaast, two majoor isssuess. Fiirstlly, llet uus asssumee thaat wee knoow ouur cuustommers thorroughhly. Howeever, in accoordannce wwith Ansooff (19844), Straategyy is a coonceppt off thee firrms busiinesss, whhich provvidess a uunifyying themme foor alll itts acctiviitiess. TThe pprobllem iis hoow
13、coould we oorgannize all the actiivitiies oof ann orgganizzatioon unnder a unnifyiing tthemee, whhich is, the straategyy of an oorgannizattion? Seccondlly, eeven thouugh aan orrganiizatiion hhas sstrattegy, howw couuld wwe knnow tthe iimpleementtatioon off thee strrateggy iss rigght? The answwer oof
14、 thhese two issuues llies on tthe sstrattegicc mannagemment of aan orrganiizatiion wwith the helpp of the BSC. Accorrdingg to Kanjji annd Assher (19995), the ultiimatee aimm of TQM is tto acchievve buusineess eexcelllencce (ccompaany pperfoormannce) suchh as finaanciaal annd noon-fiinanccial resuult
15、s/meassuress. Hooweveer, ffrom our conccretee expperieence and obseervattion and refllectiions, thee praactittioneers aand aacadeemicss of TQM are faciing mmany probblemss. Too namme a few, firrstlyy, whhat ddoes a TQQM coonceppt/moodel lookk likke? WWouldd thee juddgingg fraamewoorks and critteriaa
16、 of somee quaalityy awaards suchh as the Malccolm Balddrigee Nattionaal Quualitty Awward (USAA) orr Honng Koong QQualiity MManaggemennt Asssociiatioon Quualitty Awward (herreaftter wwe caall HHKMA Quallity Awarrd) bbe thhe TQQM (bbusinness exceellennce) concceptss/moddels? Seccondlly, aare tthesee T
17、QMM connceptts/moodelss theeoretticallly ssoundd/ baased?The rreseaarcheers oof thhis ppaperr havve beeen iinvollvingg thee ressearcch, ttrainning, eduucatiion aand iimpleementtatioon off TQMM (Kaanji, 19998) aand tthe BBalannced Scorrecarrd (KKaplaan & Nortton, 19922, 19993, 19944,19996 a, 19996b,
18、20000) too varriouss cliientss in Chinna, oof cooursee, inncludding Hongg Konng SAAR (ssee ). Wee (inncludding our teamms off connsulttantss) haave bboth the expllicitt (coodifiied) and taciit (uuncoddifieed) kknowlledgee. Baased on oour ppractticess of the conccept of Ba (Nonnaka and Konnno, 11998)
19、, whhich is aa knoowleddge ccreattion proccess, andd Kollbs Expeerienntiall Leaarninng Cyycle (Kollb, RRubinn andd McIIntyrre, 11979), wee advvocatte thhat iit iss higghly likeely tto inntegrrate” or “cconjooininng” tthe fframeeworkk of the BSC withh thee TQMM moddels suchh as the Kanjjis TQM modeel
20、 (11998) witth reefereence to tthe fframeeworkk andd juddgingg criiteriia off HKMMA quualitty awward as aa kinnd off TQMM (busiinesss exccelleence) conccept for refeerencce. TThe eexpeccted resuult oof thhis rreseaarch is ssolviing tthe sstateed reesearrch pprobllems of tthis papeer annd thhe ulltim
21、aate aaim iis too forrm thhe cooncepptuall moddel oof BSSC-Orrientted TTQM cconceept ffor ffurthher ttestiing bby prractiitionners & accademmics of TTQM aand BBSC iin orrder to ggain moree conncrette exxperiiencees. (Pleaase rreferr to Figuure 11)Backggrounnd off thee StuudyThe aauthoors oof thhis p
22、paperr havve beeen iinvollvingg thee ressearcch annd thhe immplemmentaationn of TQM (Lamm andd Yu, 19999, 22001), annd thhe BSSC (LLam 22002 a, bb, c) forr tenn yeaars (conccretee expperieence). Mooreovver, the authhors havee beeen reesearrchinng thhe thheoreeticaal baases of ssome TQM modeels ssuch
23、 as KKanjiis TTQM mmodell. Baased on tthe KKolbs Exxperiientiial LLearnning Cyclle (PPleasse reefer to FFigurre 1), thhe auuthorrs diiscovveredd (Obbservvatioon annd Reeflecctionns) tthat therre arre maany ssimillaritties betwween the Kanjjis TQM modeel annd thhe baasic critteriaa of variious qualli
24、ty awarrds aand tthe fframeeworkk of BSC. Thee autthorss of thiss papper aattemmpt tto buuild on tthe cconceept oof BSSC annd Kaanjis TQQM moodel, forr whiich, compparedd to the judgging frammeworrk annd crriterria oof HKKMA QQualiity AAwardd to formm thee BSCC-Oriienteed TQQM coonceppt (FFormaation
25、n of Absttractt Moddel) for furtther testting. Thee driivingg forrce oof thhis rreseaarch is tthe nnotioon off vaalue creaationn or addiing as wwe obbservved tthat too manyy orgganizzatioons wwasteed tooo muuch rresouurcess of usinng diifferrent kindds off mannagemment toolls orr connceptts. IIt woo
26、uld be vvery muchh vallue-aaddinng iff we coulld coonjoiin feew maanageementt toools oor coonceppts uunderr onee connceptt or modeel suuch aas thhe BSSC-Orrientted TTQM cconceept wwe prropossed iin thhis ppaperr. Thhe ulltimaate aaim iis too invvite pracctitiionerrs off botth thhe TQQM annd BSSC too
27、 tesst thhe prropossed cconceept/mmodell andd conntribbutinng too thee mannagemment knowwledgge off thee worrld.MethoodoloogyBasedd on the simpple cconceept oof Syystemms Thheoryy (Innput-Proccess-Outpput) and modeel buuildiing ttechnniquee, fiirstlly wee reaarrannged or ttrianngulaated the Kanjjis
28、TQM modeel annd thhe BSSC frramewwork to ffit iinto Systtems Theoory. Secoondlyy, wee theeoretticallly ccompaared thesse trrianggulatted cconceepts systtematticallly. Thirrdly, aftter aanalyysis, we propposedd thee BSCC-Oriienteed TQQM coonceppt foor reefereence and furtther testting in tthe rreal w
29、orlld. Literraturre ReeviewwSysteems TTheorry annd/orr Moddel BBuilddingAccorrdingg to Boniini eet, aal. (19999), rreal-worlld prrobleems ttend to bbe ennormoouslyy commplexx succh ass thee prooblemms annd thhe maain aaim oof thhis rreseaarch papeer. TTheree aree litterallly aan unncounntablle nuumb
30、err of inheerentt faccts (taciit orr imppliciit knnowleedge) in any empiiricaal siituattion. Furrtherr, evvery poteentiaal cooursee of actiion sstartts a chaiin off cauuse-aand-eeffecct orr inpput-pproceess-ooutpuut, aand iinterractiion tthat logiicallly iss witthoutt endd. A modeel iss a ssimpllifi
31、eed reepressentaationn of an eempirricall sittuatiion. The origginall aimms off ressearccherss aree nott to consstrucct a modeel thhat iis ass cloose aas poossibble tto reealitty inn eveery aaspecct, rratheer thhan, reseearchhers wantt thee simmplesst moodel thatt preedictts ouutcommes rreasoonablly
32、 weell aand iis coonsisstentt witth efffecttive actiion. The techhniquue foor deescriibingg andd rellatinng vaariouus vaariabbles suchh as exoggenouus, eendoggenouus, iinterrmediiate, deccisioon annd exxpectted pperfoormannce vvariaabless or outccomess/meaasurees (aas peer Fiiguree 2), deppendss on
33、largge exxtendd of the natuure oof thhe vaariabbles. Thee simmple formm of systtems theoory aand/oor moodel builldingg is as ffolloows: Totall Quaalityy Mannagemment (TQMM)TQM hhas bbeen wideely aacceppted by tthe bbusinness pracctitiionerrs annd accademmics to iimproove tthe qqualiity, if nnot tthe
34、 oorgannizattion effeectivvenesss, oof ann orgganizzatioon coontinnuoussly. Howeever, theere aare mmany probblemss of appllyingg thee priincipples or cconceepts of TTQM tto thhe reeal wworldd sittuatiions. Thee majjor pprobllem iis thhe sstanddardiizatiion of ddiffeerentt TQMM moddels/ connceptts th
35、hemseelvess, iff nott thee unnificcatioon oof vaariouus TQQM moodelss/concceptss. (TThis is oone oof thhe arreas, whiich nneedss furrtherr ressearcch). Therre arre maany ffamouus quualitty guurus suchh as a) Philiip. NN Croosby (Fouurteeen stteps to qqualiity iimproovemeent),b) Josepph M Juraan (TTe
36、n sstepss to quallity imprrovemment), annd c) Edwarrds DDeminng (FFourtteen poinnts ffor mmanaggemennt orr thee fammous PlannDo Cheeck Act / PDDCA CCyclee). Likee manny otther manaagemeent cconceepts or ttoolss, TQQM dooes hhave somee prooblemms. FFirsttly, the phillosopphiess of thesse guurus or tt
37、heirr “stteps / poointss” arre noot buuilt on tthe ttechnniquees off moddel bbuildding as ssuch. It takees tiime ffor tthe ffolloowerss or beliieverrs off TQMM to comppreheend tthe big pictturess off theeir pprofoound phillosopphiess. Neeverttheleess, for the sakee of the purpposess of thiss ressear
38、cch, wwe deelibeerateely sseleccted the Kanjjis TQM modeel/conccept for furtther disccussiion aand iinvesstigaationn, ass it is eeasilly beeing undeerstoood. The modeel coonsissts oof thhe pprimee (LLeadeershiip), fourr priincipples (dellightt cusstomeer, mmanaggemennt byy facct, ppeoplle-baased man
39、aagemeent aand ccontiinuouus immprovvemennt) aand eighht suub-brreakddown concceptss (Plleasee reffer tto Fiiguree 3). As wee arggue tthat the ultiimatee purrposee of all busiinesss proocessses iis aiimingg at the fulffillmment of tthe nneedss andd wannts oof cuustommers. On top of tthe ttradiitionn
40、al ddivission of ccustoomerss intto exxternnal aand iinterrnal, we woulld liike tto addd onne moore ddimennsionn to undeerstaand tthe cconceept oof cuustommers: preesentt (arrticuulateed) aand ppotenntiall (unnartiiculaated). Noow thhe coonceppt/deefiniitionn of exteernall cusstomeers iis quuite str
41、aaighttforwward. Howweverr, thhe coonceppt/deefiniitionn of inteernall cusstomeers iis soomewhhat bblurrred. For the sakee of the arguumentts off thiis paaper, we deliiberaatelyy deffine the inteernall cusstomeers aas sstakeeholdders of aa commpanyy. Let us aassumme leeaderrshipp or primme off thee
42、Kannjiss TQMM moddel, whicch iss foccusinng onn thee nottion of To ddeligght tthe ccustoomerss ass thee inpput oof thhe syystemms thheoryy. The pproceessess connsistt of manaagemeent bby faact aand ppeoplle-baased manaagemeent aand tthe ooutpuuts aare ddeligght ccustoomer or ccustoomer satiisfacctio
43、nn andd thuus thhe bbusinness exceellennce (perrformmancee). Whaat maade TTQM ddiffeerentt froom otther manaagemeent ttoolss/fraamewoorks is tthe commmon notiion oof ccontiinuouus immprovvemennt (virttuallly alll TQQM moodelss/connceptts foocus on tthe nnotioon), whicch iss thee feeedbacck looop oof
44、 syystemms thheoryy or one of tthe ffour comppetittive advaantagges (C.A.) ass sugggestted bby Kaanterr (19990). Havving saidd thaat thhe maajor probblem of tthe ttrianngulaated modeel sttill remaains on tthe iinputt, thhat iis, wwhat leaadersship connsistts off? Siince mostt of the orgaanizaationna
45、l sstruccturees arre sttill hierrarchhicall, thhereffore, we can broaadly diviide tthe rrespoonsibbilitties of tthe sstakeeholdders of aan orrganiizatiion iinto threee leevelss, naamelyy, sttrateegic, opeeratiionall andd funnctioonal. Strrateggic mmanaggemennt (wwe shhall disccuss moree in the straa
46、tegiic maanageementt secctionn) iss traaditiionallly bbeingg reggardeed ass majjor rrespoonsibbilitty off topp mannagemment and one of iits ooutpuuts iis straategyy. Mooreovver sstrattegicc mannagemment has receeivedd inccreassing recoognittion in mmanaggemennt liiteraaturee inccludiing TTQM. As aa
47、mattter of ffact thatt strrateggic mmanaggemennt iss witthin the priime or lleadeershiip off thee Kannjiss moddel; therreforre, wwe deelibeerateely eextraactedd it out as aa sepparatte isssue for furtther disccussiion iin thhe foollowwing secttion. As mostt of the TQM modeels aare nnot ssysteematiicallly buuilt as ssuch, at leasst, lliterrallyy. Thhereffore, we triaangullatedd thee aboove-mmentiionedd fouur prrinciipless of Kanjjis TQM mode