Global total quality management in financial service industries
Total quality management
The business leaders face immense pressure in today’s turbulent competitive environment that’s move forward by globalisation, macro-environment factors and advanced technological growth of internet. The strong market forces within this competitive environment have developed global customers who are more aware of changes in the global market.
Total quality management is an important tool in any business to surmount future challenges within the turbulent financial service environment. TQM provides the financial business leaders with a formalised process in setting clear and achievable corporate objectives and at the same time guides the management in planning strategies to maximise resources and to achieve win-win partnership.
Total quality management (TQM) is an organization-wide process that revolves around the Total Quality Triad. It assumes that there is never a state of perfection (Kelada, 1996). Hence, in order to that plans are developed in an integrated manner, three important total quality principles must be adhered to – participation and commitment by stakeholders and senior management team, employee involvement and continuous improvements to meet customer satisfaction.
Source: Bradford University
Total quality management in global financial services environment
In the global financial services environment, Total Quality Management (TQM) provides the overall concept that fosters continuous improvement in an organization. The implementation of a Quality Management System (QMS) does not equate to self-generated results.
Continuous improvement of the QMS is of paramount importance for meeting and satisfying clients’ ever changing needs and requirements. The purpose of the project is to identify quality improvement through Kaizen program, performance measurements; benchmarking with appropriate key performance indicators; and essentially designing a balanced scorecard to achieve continual improvement.
Practices by non-financial organisation
Good practices implemented by construction organizations in strategic partnerships alliances and knowledge management was identified and developed recommendations for improvements to gain competitive advantage in the construction industry.
TQM not suitable for financial services environment
TQM is not really suitable for any service organisations but it really helps the service organisations to focus on the participation of senior management team, involvement of all employees and managing internal process towards achieving customer satisfaction.
Long Term client relationship
In global financial services environment business strategy is building on long-term client relationships. Over 90 percent of the work is repeated business from loyal clients. This strategy yields cost advantages, profits, and growth, allowing them to attract and retain investors and thus fuel further growth.
There are a number of writers whose work dominates the quality movement. Their ideas and approaches have stood the test of time and have come to from a body of accepted knowledge, to lead and advise their own movement in quality.
They have become known as ‘gurus’
- Crosby Philip B.
- Deming W. Edwards
- Feigenbaum Armand V
- Ishikawa Kaoru
- Juran Joseph M
- Oakland john S
- Shingo Shigeo
- Taguchi Genichi
All the above Gurus have presented their own work on quality management and have made a considerable impact on the world through their contributions to improving not only businesses, but all organizations including state and national governments, military organizations, educational institutions, healthcare organizations, and many other establishments and organizations.
Global inventory planning and control management
What is planning and control?
The purpose of planning and control is to ensure that operations are working effectively and the production of products and services as required. There is another purpose of planning which is to minimise uncertainty and risk and a clear view of future forecasting.
Financial planning and control
It is a well known fact that a successful business helps organisations to generate enough cash in order to cover costs and make some profit.
The difference between sales and cost is profit. The businesses are not always expected to be profitable from the very first day but there should be an expected plan for them to become profitable.
There should be proper financial controls for all the businesses. The records should be accurate and complete and should fulfil the legal requirements. The tight financial control always helps the financial organisations or any organisation to monitor their current situation and always predict the future environment.
The information derived from financial statement analysis can be used to establish future operating goals (financial planning) and to determine how to meet established goals (financial control).
Developing pro forma financial statements is an important part of the planning and control processes.
Inventory planning and control in financial services environment
Inventory planning and control in financial services environment is the method of organising the difference between demand and supply of financial products and services.
Inventory control is not a small matter from a financial perspective way. Inventory is really important and major current asset for any business including financial services organisations.As a result, there are always policies of businesses to keep the inventory as low as possible because too much cash hold up in inventory. The objective of reducing the inventory can be accomplished with modern inventory management processes that are working effectively.
Global change management strategies in financial environment
In today’s world of economic and technological development, the organisations have changed significantly. The change had only been possible through restructuring, technological improvement and merging with other businesses.
The most important challenge for the organisations is to implement such change to achieve the behavioural and cultural change that is most likely required to achieve the planned benefits.
Behavioural change does not just happen in the organisation. Change will only occur if there is leadership, clear goals and planned benefits for its stakeholders. All of these should be properly communicated in a timely manner.
Strategy for Change
Three important principles to manage change are:
- Change management is not the goal in itself:
For an organisation to be successful, change management plays an important role. Change management is all about managing the process effectively and leads to an environment where an improvement in performance are realised.
- The change targets must play an active role in realising the change:
Change in projects will identify and successfully communicate the image, therefore letting the employees know that the planned benefits have changed and play an active role in realising those planned benefits.
- Employees are the greatest asset for any organisation:
Employees are potentially the greatest challenge for any organisation. The image or goal of any purpose can only become reality if the employees believe in the project and have the desire to achieve it.
Financial services environment
In the last decade, financial services sector has undergone major changes. The financial sector is a rewarding field in which there is every chance to make or improve a career, particularly if staff is loyal, hard working and have given the correct back up support. It cannot be ignored that the current process of globalization and market deregulation has often led to restructuring within organisations. If these major changes have been mis-handled, then it would bring job insecurity and resulting increased pressure on work forces, which in turn can lead to higher work related stress, and a possible lack of commitment and motivation.
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Change requirement in current financial environment
Capital, currently, is grossly overvalued. Company objectives are all about maximizing value for shareholders, the providers of capital. This can lead to companies adopting strategies that do not necessarily benefit stakeholders such as customers and staff. The same emphasis on capital, and shareholder value, breeds an unhealthy focus on short-term results. Shareholders of stock listed companies want better results every quarter, leading management to take decisions that are not necessarily in the longterm interests of the company and its stakeholders. This needs to change.
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