The View from the Top: Chief Executives' Perceptions of Total Quality Management

Abstract

The chief executives of 49 member companies in Total Quality Management Institute (Australia) were surveyed regarding their perceptions of the effects of the Total Quality Management (TQM) processes in their companies. Average costs associated with implementing TQM were reported as steady over time, at around 0.5% of sales, while the average value of the benefits gained was around 2% of sales, giving an average benefit to cost ratio of 4:1. Just under 30% of the respondents indicated that TQM had resulted in a culture change in their company. About a quarter reported increased customer focus and satisfaction, and improved productivity, competitiveness and profits. Significant numbers also reported increased workloads and time commitment, and a high need for training. Many executives commented that implementing the TQM philosophy was difficult and that they needed to actively lead and drive the process. Many also commented that TQM is a central philosophy which is basic to all aspects of company operations.