Historically, strategy and industry have evolved hand in hand and by the beginning of twentieth century industry had emerged as a major economic institution. During this time strategy was centered on big volumes, low prices and standardized product – success went to the firm with the lowest price. Over time newer firms emerged with focus on product differentiation, market segmentation, variety and promotion to capture the increasingly competitive markets. The decade of 1950s marked the beginning of a new era of unprecedented changes in the business environment, with the advent of newer technologies, ushering in products and services unimaginable till then. Focus shifted on higher investment in R&D to compress the time lags in the development and commercialization of new products, in order to maintain the competitive edge. And technology continues to change the world like never before, necessitating the industry to be on high alert ever since to sustain the advantages it holds.
It was at this time in 1950 that a renowned consultant, Dr. Edwards Deming on an invitation from Union for Japanese Scientists and Engineers (JUSE), inspired Japanese industry with the principles of statistical quality control, to such an extent that the implementation of these techniques changed the image of Japanese industry completely – Japanese products were now hallmark of quality, world wide, gaining a huge competitive advantage over the competitors. In appreciation JUSE, created a prize to commemorate Dr. Deming's contribution and friendship and to promote the continued development of quality control in Japan.
Malcolm Baldridge award recognizes achievement in TQM by companies based in USA, and thus promotes TQM in USA.
A framework to achieve such an excellence is provided by European Foundation for Quality Management (EQFM), a body initially formed at the initiation of presidents of leading business organizations in Europe in 1988 with a mission to promote, and where possible to assist industry in the understanding and application of total quality principles. EFQM Excellence model was launched in 1991 along the lines of the Malcolm Baldridge in USA and Deming prize in Japan as both these awards had demonstrable improvements in the organizations that adopted them.
BE Introduction |
BE Evolution |
BE Concepts |
BE Results orientation |
Customer Focus |
Leadership |
Management By Processes and Facts |
People Development |
Continuous learning, innovation and improvement |
Partnership Development |
Coporate Social Responsibility |
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