Improving the Quality of Life for Humanity 2014 BES Business Excellence Solutions, Ltd. 1 Gregory H. Watson Management Seminar China (Shanghai) Pilot Free Trade Zone 24 July 2014 Implementation of Social Responsibility: Improving the Quality of Life for Humanity Module 1: Understanding how Corporate Social Responsibility Relates to the Obligations of Organizations
Module 2: Implementing the Principles of Social Responsibility Using the Methods of Quality Management
2014 BES Business Excellence Solutions, Ltd. 2 2 IMPLEMENTING THE PRINCIPLES OF SOCIAL RESPONSIBILITY USING THE METHODS OF QUALITY MANAGEMENT 2014 BES Business Excellence Solutions, Ltd. 3 Part 2: IMPLEMENTATION OF SOCIAL RESPONSIBILITY: IMPROVING THE QUALITY OF LIFE FOR HUMANITY Corporate culture and corporate responsibility merge! 4 2014 BES Business Excellence Solutions, Ltd. Laozi or Lao Tzu [] Zhou Dynasty [6 th Century BCE) These two together merge; they have different names yet theyre called the same; that which is even more profound than the profound the gateway of all subtleties.
Lao-Tzu Te-Tao Ching, Chapter 1 3 What challenge? Economic growth or development? What do organizations need: growth or development? Russell Ackoff described the difference between these ideas this way: Growth: increasing more of what is already existing. Development: changing the state of what already exists.
Should organizations focus just on their financial or bottom line performance or should they expand to consider what is called the quadruple bottom line of the economic, social, environmental and spiritual aspects of doing business. If this change is made then how would an organizations financial accounting and work performance measurement systems be required to change? The spiritual component focuses self- fulfillment of individuals, not on religious aspects of belief.
More specifically: How should a Chinese organization prepare itself to become a leading global brand? What must change in their fundamental CSR policy and activities to gain this level? 2014 BES Business Excellence Solutions, Ltd. 5 Concept of a social contract The idea of the social contract originated in the so-called Age of Enlightenment and it was expressed by such diverse philosophers such as Britains John Locke (1689) and Frances Jean-Jacques Rousseau (1762). The idea describes a balance between the rights of the society and the rights of individuals as well as the question of the authority of the state over the individual. From a legal perspective, the rights of people have been assigned to corporations and they act as an accountable entity in society just as individuals do. What is the purpose of granting such a charter to businesses? Achieving the greatest prosperity or greatest good for society! Question to consider: Under what circumstances does either a corporation or an individual participate in society to achieve mutual benefit through coordinated activities that results in the achievement of this greatest good? 2014 BES Business Excellence Solutions, Ltd. 6 4 Concept of prosperity proposed by Frederick Taylor: 2014 BES Business Excellence Solutions, Ltd. 7 .
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One of the dangers to be guarded against, when the pay of a man or woman is made in any way to depend upon the quantity of the work done, is that in the effort to increase the quantity the quality is apt to deteriorate. The system must be first. But, you cannot inspect quality into products! Frederick Winslow Taylor (1856-1915) Founder of Scientific Management
Principles of Scientific Management (1911) Efficiency in business delivers a fair deal to employees: 1. Need for clearly defined objectives with delegation of authority 2. Application of common sense to define principles of management 3. Competent counsel to challenge ways of thinking and working 4. Self-executing discipline must be created with esprit de corps 5. Need for equity in working assignments and tasking (fair deal) 6. Reliable, immediate, and adequate work records are required 7. The flow of work must be controlled 8. Establish rational work schedules and standards 9. Need to control the performance of working processes 10. Requirement of a systematic approach to standard operations 11. Necessity of written standard practice instructions 12. Management must provide recognition for efficient performance 8 Harrington Emerson (1853-1931) Engineering Consultant Twelve Principles of Efficiency (1908)
Was the first to raise questions regarding the efficiency and productivity of large scale operations (1908). Developed twelve principles of operating efficiency to systematize the lessons learned throughout the industrial revolution: 2014 BES Business Excellence Solutions, Ltd. 5 Henry Fords definition of prosperity: 2014 BES Business Excellence Solutions, Ltd. 9 Thinking men know that work is the salvation of the race, morally, physically, socially. Work does more than get us our living: it gets us our life. Since the public makes a business, the primary obligation of business is to the public. Those who work for and with the business are part of this public. An this settles on the fundamental corporate policy to whom shall the benefits of improvements accrue? A business cannot serve both the public and money power. A business that does not make a profit for the buyer of a commodity, as well as for the seller is not a good business. The test of the service of a corporation is in how far its benefits are passed on to the consumer. The essential law of prosperity . . . we can make prosperity continuous and universal. Men must be led into prosperity. Henry Ford (1863-1943) Founder of Ford Motor Company Today and Tomorrow (1926) The wisdom of Russian dissident Alexander Ilyin: 2014 BES Business Excellence Solutions, Ltd. 10 Scrutinize the history of Russia, the fate of its people, ponder upon its wreck and humiliation and you will see, that all its basic difficulties came from an over-emphasis on volume and quantity.
We trust and are confident that the hour will come when Russia will rise from disintegration and humiliation and begin an epoch of new development and greatness. But it will revive and blossom only after the Russian people understand that they must search for salvation in quality. Ivan Aleksandrovich Ilyin (1993-1954) Russian Dissident Philosopher
Essay: Salvation through Quality (1928) Translated by: Gregory H. Watson Quality is the outcome of a cooperative social system! Productivity and capacity are false measures of value! 6 What is the meaning of freedom for the greatest good? 2014 BES Business Excellence Solutions, Ltd. 11 Ama-gi (2350 B.C.) an historical imperative for mankind:
The Sumerian cuneiform that means a return to mother and expresses the idea of freedom that occurs from the process of reform. It is the earliest concept related to quality.
Freedom from waste, loss, bigotry, abuse, hunger, debt, fear, defects, failure all of the negatives in lifes experience which destroy the quality in the lives of all humanity.
Mankind must cooperate in order to achieve this quality level! Considering quality as a common global value Quality is socially responsible: mankind must not squander the worlds scarce resources by consuming them poorly. In the end, quality outcomes generate economic value! Economic freedom is an essential ingredient of democracy. What is this freedom? A form of equality establishing characteristics that are equal in terms of quality or value. But we must view quality beyond the micro-economic requirements of one business. Quality is an obligation of social responsibility. The idea of quality for prosperity is a macro-economic application of quality thinking and doing so that it can become a cultural way of being that applies to society as a whole. To achieve macro-economic quality, the whole of a society must embrace this way of quality; prosperity must become the objective for all mankind through a pursuit of quality! Ilyin was right: mankinds salvation is through quality! 2014 BES Business Excellence Solutions, Ltd. 12 7 What do most organizations believe that CSR involves? Related international standards and business guidelines: ISO45001/OHSAS18001 Occupational Safety and Health ISO14000 Environmental Management ISO26000/SA8000 Social Accountability United Nations Global Compact Moral Imperatives
However: There is no global agreement on the specific content of CSR elements Minimum international agreement CSR company makes safe, quality products; while others add: Secure employment for employees Corporate philanthropy and charitable projects Positive contribution to social needs (e.g., health care and education) Fair trade and labor practices Creating Shared Value (CSV) corporate success and social welfare will operate in an interdependent manner (e.g., the triple bottom line of profit, people and planet) 2014 BES Business Excellence Solutions, Ltd. 13 So, what is CSR and how can it be managed for quality? Corporate Social Responsibility (CSR) became popular in the 1960s and has remained a term that is used (often in a very indiscriminate manner) to describe the set of legal and moral responsibilities that have been assumed by an organizations. CSR has been added to the mission statements of organizations to describe what the company believes in and what it will support regarding social, environmental and human aspects of its citizenship in exercising its social contract.
CSR is a self-regulated element in an organizations business model and acts as the corporate conscience which may also be stated as a governing policy to define the expectations that stakeholders may reasonably anticipate that the organization will embrace as its agreed responsibility for community social action and how it will encourage positive impact through its activities on the environment, consumers, employees, and the local communities in which it operates. 2014 BES Business Excellence Solutions, Ltd. 14 8 How could Chinese companies design CSR systems? China Quality Outline encourages development of global brands by leading members of Chinese industry. However, this requires development of organizations that have an ability to operate effectively in the global marketplace which in turn requires that these organizations become aligned with all global systems especially those related to brand identity and reputation. This particular imperative means that Chinese leading companies must translate their cultures from the view of being excellent in China to being excellent globally. Such a transition will require development of global social systems that are more compatible with the value systems that are prevalent within the major world markets. This objective may be accomplished by an imaginative or creative extension of an organizations system of managing for quality as defined by its regional customers in terms of their respected and desired value propositions. 2014 BES Business Excellence Solutions, Ltd. 15 How to develop a best practice global CSR system? 2014 BES Business Excellence Solutions, Ltd. 16 Developing a CSR system is secondary to developing the core business. It is essential that a business operate effectively and efficiently and that it delivers an economic benefit that allows it to sustain its operation (or deliver strength in the long-term). Thus, profitability is a pre-condition for an effective CSR system. CSR contributes to increasing competitiveness of an organization that is already competitive and is now seeking to achieve an enhanced level of excellence by becoming the best of the best within its industry. Basic CSR mitigates various risk elements and the operational impact that they generate and supports the organizations relationships with its external partners, customers, and governmental authorities. Advanced CSR increases the value of organizations by developing the human capital of the organization relative to society and integrating the business into the local and global communities where it operates. Thus, CSR implements the long-term organization strategy and it must become a planned aspect of the corporate development program.
9 What is the strategic value of CSR for organizations? 2014 BES Business Excellence Solutions, Ltd. 17 Environmental Analysis Strategic Plan Customer Expectations Investor Expectations Strategic Benchmarking Operational Plans - Strategic Intent - Core Competence - Process Capability - Product Line - Strategic Alliances - Technology Portfolio Organization - Strategic Intent - Core Competence - Process Capability - Product Line - Strategic Alliances - Technology Portfolio Competitor Operational Benchmarking Situational Awareness Long-Term Sensemaking Short-Term Sensemaking The obligation of management is to deliver profit in the short-term and strength in the long-term. This requires elimination of waste and increasing efficiency in the short term and building organizational competence and capability in the long-term.
Each of these perspectives has a different challenge for reducing waste and potential for loss in the organization. Head-to-Head Comparison Search for Competitive Advantage Advantage by positioning, technology, or policy Waste elimination and efficiency improvement. Advantage in productive value through efficiency, effectiveness, or economics. What is a natural sequence to expand CSR values? Most organizations that have been in business for some time already possess the foundation of a CSR system the base is an ISO9000 approach to quality management. However, the ISO9000 standard does not specify what an organization must do to operate it only identifies areas to address in which the organization must develop the content of its specific practices. Likewise, mature organizations have already implemented their safety and product quality methods to reduce risk of injury to workers and to increase the probability to make good products for their customers. These items represent the core aspects of a comprehensive risk management system for a business. After this base has been developed, then management must define what will be their next step to advance performance. Developing a mature, value-enhancing CSR system means that senior managers must identify topics will increase the value of their business model and a sequence in which to address them. 2014 BES Business Excellence Solutions, Ltd. 18 10 Corporate Social Responsibility System Architecture: 2014 BES Business Excellence Solutions, Ltd. 19 B r a n d
A w a r e n e s s
B r a n d
R e p u t a t i o n
B r a n d
L o y a l t y
Basic CSR Advanced CSR Level 1: Risk Management Level 2: Social Alignment Level 3: Corporate Philanthropy Level 4: Value Creation Social Responsibility Framework International and National Laws, Regulations and Guidelines Level 1: CSR as Risk Management Quality Management System Environmental Management System Safety Management System Occupational Health Management System Supplier Management System Customer Experience Management System Business Risk Management System 2014 BES Business Excellence Solutions, Ltd. 20 The initial focus for development of a CSR System must be placed upon the tangible quality aspects of product and service quality. This first level serves as a foundation for CSR and must be designed to fit an organizations culture. The second level will round out the basic CSR competence by aligning CSR to the locality in which it operates. Theme: doing what is required and doing it well Components of the Risk Management System 11 Establishing a foundation for responsible action:* 2014 BES Business Excellence Solutions, Ltd. 21 ISO9000 Quality Management ISO3100 Risk Management ISO14000 and EMAS - Environmental Management OHSAS18001 and ISO45001 Occupational Safety and Health ISO/IEC27000 Information Technology Security ISO26000 and SA8000 Social Accountability * Note that these steps are illustrative and not prescriptive. Specifically, they do not imply a recommended sequence for implementation of these standard and systems. Color Code: Third-Party certification is available. Third-Party certification is not available. Note that in most Western companies the certification need is a choice by the top management. Most organizations focus only on achieving voluntary standard compliance. Build core flexibility into the system; not core rigidity! 2014 BES Business Excellence Solutions, Ltd. 22 * Leonard-Barton, D. A. (1992), Core Capabilities and Core Rigidities, Strategic Management Journal, 13, pp. 111-125. Harvard professor Dorothy A. Leonard has described a circumstance whereby traditional sources of the core capabilities of a firm (e.g., technical systems, personnel skills and human competence, and organizational management systems) create a dysfunctional state that she calls core rigidity a condition where the organizations innovation becomes restricted by a state of inertia that is induced by inflexibility in the design of its organizational components. To overcome this situation, flexibility must be consciously designed into the infrastructure of the organizational values and norms that define the CSR system. Such systems invoke essential behavioral characteristics of social systems through engagement of motivations of individuals thereby persuading people to align their personal energy and commitment to the organizations strategic direction. This distinct core CSR capability responds to externalities in flexible ways by linking psychological factors with external dynamics needed for organizations to response to changing market circumstances in all dimensions: legislative, regulatory, economic, competitive and technical all which can increase risks to the organizations business model. 12 Level 2: CSR as Social Alignment Providing benefits to employees that are beyond the legally required social benefits. Expanding education and training to development of community feeder systems for key employee skills and capabilities that are required for future development of the corporation Development of community infrastructure that will also support targeted objectives for corporate development for future infrastructure (e.g., roads, IT system access, etc.)
2014 BES Business Excellence Solutions, Ltd. 23 The focus for development of the second level in a CSR System is upon the integration of social systems that are beyond the level that is required by common practice or law. This second level completes the basic components of a CSR system by aligning it with the locality in which it operates. Theme: doing more than what is required Components of the Social Alignment System Level 3: CSR as Corporate Philanthropy In this level focus of CSR activity shifts to more intangible areas of outreach beginning with the building of external relationships with organizations that are close to home. Organizations will typically choose a vital few of the philanthropic causes to develop innovative relationships based on alignment with its strategic intent and future direction. Local community social outreach and support Local charity and social engagement CSR enables corporate brand development 2014 BES Business Excellence Solutions, Ltd. 24 Components of Corporate Philanthropy Development of a third level CSR System concentrates on the generosity in financial donations for the good of the local society. This level initiates the outreach efforts of an organization by making financial donations to the local charities or encouraging employees to participate in the projects of these charitable groups. Emphasis is on local beneficiaries that contribute to the community. Theme: giving back to society from financial benefits 13 Level 4: CSR as Value Creation Commitment is directed by the Board of Directors of the corporation and is included in strategic planning of the organization. Development of a global leadership position occurs through a formal philanthropic foundation which is a participant in the organizations budgeting process and acts as a vehicle for concentrating on external outreach on a global basis. At this level the corporation is an active participant in global activities (e.g., World Economic Forum, United Nations Global Contract, etc.).
2014 BES Business Excellence Solutions, Ltd. 25 The focus for development of the highest level of a CSR System is on value creation by leveraging investment to differentiate a corporation from its competitors by its approach to the pursuit of corporate responsibility. This creates a competitive advantage by building brand value through CSR: an action-based commitment to pursue its responsibilities in the world for the benefit of humanity. Theme: doing well by doing good Components of the Value Creation System 2014 BES Business Excellence Solutions, Ltd. 26 Big Q Strategic Quality Little Q Operational Quality Culture (Company) Vision, Mission and Values Policy and Philosophy Competition (Business Learning) Innovation Leverage Benchmarking Change (Renewal) Strategic Operational Cascade (Alignment) Improvement Projects Objectives and Targets Measures Communication (Awareness) Message Media Competence (People) Individual and team development Training/development program Capability (Process) Daily process management Data bases and analytic software Compliance (Product) Quality management system Performance agreements Certification (Standardization) System certifications/standards Functional certifications/standards Industry certifications/standards Conformity (Learning) Business and operational reviews Correction (Repair & Improvement) Corrective / Preventive Actions Business Excellence in Corporate Culture Operations Excellence in Local Culture How can CSR become embedded into work processes? 14 Key Point: The global system becomes the local system! There is a need for diversity in culture as an organization expands from its initial national base to become a global competitor.
However, your international customers anticipate that an infrastructure will be consistent across all interactions and engagements on a global basis.
Therefore, your global system devolves into a local system!
This presents a problem in terms of how to align the way organizations operate in alignment with the diversity of cultures at the local level when they conflict with a global cultural framework for the corporation! 2014 BES Business Excellence Solutions, Ltd. 27 Establish a Common Purpose Build Shared Objectives Lead the Local Action Evaluate Results and Process C o n t i n u a l
I m p r o v e m e n t
Develop an Integrated Plan 2014 BES Business Excellence Solutions, Ltd. 28 So, how to develop a universal process of managing? * * Hewlett-Packard Corporate Quality, The Process of Management, 1987. The Process of Management (POM) is distinct from content or work that the people manage.
This process applies PDCA (Plan-Do- Check-Act) continual improvement to the tasks of management. Content is a set of actions and issues that flow through this sequence of activities.
Thus, management has two aspects: one related to content or the what that is managed and another related to the process by which this content is defined, developed, deployed and monitored to generate a state of the continual improvement for the whole organization. Adapted from Hewlett-Packard 15 Competitiveness emanates from process and content! 2014 BES Business Excellence Solutions, Ltd. 29 2014 BES Business Excellence Solutions, Ltd. 29 Quality is required in both the content of deliverable as well as in the delivery process itself. The content that is
delivered to customers. The process for delivering content to customers. We often use the word quality to refer to the attributes of a product (its content) as well as the methods by which these attributes are produced (the process). Quality outcomes what is known about quality: 30 2014 BES Business Excellence Solutions, Ltd. Theory of Attractive Quality Noriaki Kanos Mental Model: Degree of Performance Customer Satisfaction High High Low Low Indifferent Feeling Indifferent Function 16 Quality processes discovering and delivering quality: 31 2014 BES Business Excellence Solutions, Ltd. Quality Journey
What the Customer Wants What the Customer is Promised What the Customer Gets Design Gap Conformity Gap Customer Entitlement Customer Expectation The basis for Customer Perception Quality Loss Excellence Reliability by Design Quality by Management Creative Ideas Implementation in Practice Quality Design Process Gregory H. Watsons Mental Model: Customer Feedback 2014 BES Business Excellence Solutions, Ltd. 32 Raw Aptitude Skills Knowledge ABILITY
Customer Requirements CAPACITY Resource Limited Constraints (Cp) CAPABILITY Entropy ( d Cpk) Actual Achieved (Cpk) Targeted Capability (Cpm)
Continual Improvement Loop (+ d Cpk) Human Competence
+ Experience MASTERY Experience will either increase or degrade the process capability
Organizations purchase capacity! Organizations develop competence! Social systems develop capability from inherent ability: 17 What is waste? Waste is any activity that adds cost or time, and does not add value or that increases risk to employees through hazardous work conditions. Japanese quality uses three words to describe waste: Muri (): No waste from bad thinking irrational waste. This type of waste arises from poor decision-making.
Mura (): No waste from unbalanced working flow waste. This type of waste arises from poor integration.
Muda (): No waste in work discipline process waste. This type of waste arises from poor operations. 2014 BES Business Excellence Solutions, Ltd. 33 Each of these wastes may occur at any level of an organization! Waste of all resources represents poor management responsibility! How does management create systemic waste? Management decisions are constrained by a bounded level of rationality as all decisions are subject to three issues: Ability of the manager to make the decision (competence) Integrity of the data to properly describe the observation (the cost of bad data is the illusion of knowledge Steven Hawking). Timing urgency or rapidity with which decisions must be made. Problematic decisions about mergers and acquisitions, capital equipment investments, organization design or restructuring, product commercialization, operations expense management, or personnel development and promotion can all be classified as muri waste (irrational) which may cause the business system to flow unevenly (mura waste) and also create the various categories of totally useless waste within all the operating areas of the organization (muda waste). Thus, management can be a stimulus by which organizations create waste in all of its forms! 2014 BES Business Excellence Solutions, Ltd. 34 18 Financial measures distort operational decisions: Management decisions must support setting expectations for financial performance to satisfy organizational investors. However, distortion in understanding the drivers of operating performance occurs when we attempt to convert production units into financial units this is because financial values are based on an uncontrollable :customer willingness to pay or an external reality of market value, rather than the internal value that attempts to achieve cost payback and achieve the profitability targets of the investors. Product pricing is based on estimates of standard costs the average cost (therefore a central tendency or expected cost for production and service delivery) and ignore the variation that occurs in the components of cost. Distortion also occurs due to a fundamental misunderstanding of the concept of quality costs as taught in business schools. 2014 BES Business Excellence Solutions, Ltd. 35 Uncommon wisdom about the Quality-Cost trade-off: 2014 BES Business Excellence Solutions, Ltd. 36 The Common Wisdom of quality cost: Quality Investments result in diminishing returns where further increases in quality are off-set by additional cost of achieving this quality performance. After this point an economic trade-off must be made to achieve additional quality performance by compromising with higher product cost. Defect Rate Cost of Control Point of Diminishing Economic Returns from Quality Investments Failures Cost 99% Good = 4s Timeline of Improvement and Investment The model was created in the 1950s to describe the relationship between quality and costs. The failures identified are defects that escape to end customers while the costs account for increasing the number of inspectors to sort out defects! Where did this model originate and how was this improvement level achieved? Does it still hold true in operations today? What do you think? 19 Weaknesses in standard cost accounting: Standard cost accounting bases price calculations on the average costs of work performed to produce a fixed volume of units. This standard cost accounting methodology divides cost into two categories: fixed and variable costs which are further divided into direct and indirect costs. Actual expenses are allocated by a system that assigns indirect costs to direct costs (loading costs) so that all costs can be absorbed into the financial structure and are supportive of the pricing process. When evaluating benefits of capital equipment purchased an equipment utilization factor is calculated to check the value of parts produced compared to the cost to see if the investment is being fully absorbed into the pricing. This accounting approach has a distorting influence on the outcome as it encourages production of inventory to assure that the capital payback for an individual asset is optimized, even if production of unrequired units occurs and it must be held in inventory and not contribute to immediate revenue generation. 2014 BES Business Excellence Solutions, Ltd. 37 How does cost change as muri and mura are reduced? 2014 BES Business Excellence Solutions, Ltd. 38 Apply the principles of activity-based costing to understand transaction costs. Quality improvement is achieved not by adding inspectors, whose work is not very efficient, but by improving the process to eliminate the root cause(s) of poor quality, so problems are permanently resolved and work is standardized on best practice so that mistakes are not replicated in the next generation of new products. Defect Rate Process Costs Cost of Quality:
Process control Training Inspection Testing Audits Redesign Automation Failures Cost Timeline of Improvement and Investment Process costs actually decrease as quality improves! 4s 5s 6s 20 Remember that costs are an artificial results indicator! Production processes produce units which are assigned value based on accounting rules. Value of these goods changes as the market perception changes (e.g., depreciation) so that the decision made at one point of time to produce goods with a certain value will appear to be a bad decision when its market value is diminished in the future. While we produce units we value them monetarily. Because the value of goods is dependent on market conditions, it is necessary for judgments about process costing to be based on the lowest total cost of operations (both internal for the company and external at suppliers and customers) because estimates of beneficial value are subject to market variability and are out of the control of internal managers. The public must be willing to pay the price! We only produce things we assign value to things to get cost. Value is what changes as a function of customer perception! Thus, no matter how a process is designed, it must be implemented with minimal waste in all circumstances! What happens as process waste is eliminated as expressed by activity costs? Value increases! 2014 BES Business Excellence Solutions, Ltd. 39 How effective and efficient are our improvement tools? The most important quality methods for CSR relate to the set of strategic quality management practices: Hoshin Kanri Strategic direction setting and implementation Business Excellence Management process self-assessment Strategic Benchmarking Discovering better ways to work Performance Measurement Integrated measurement system Strategy Management Search and decision-making for change Change Management Designing and implementing change Business Review Reviewing operational performance results Structural Design Managing the structure of the organization Resource Management Managing efficient use of all resources
40 2014 BES Business Excellence Solutions, Ltd. Which quality methods and tools apply to competitive CSR? Taking a systems approach to managerial engineering of the business! 21 How will quality develop in the future? Impact of Technology: Cloud computing, data mining, and automated control systems will drive changes in the way we apply the methods of quality and also how we coordinate and collaborate to solve universal problems. Impact of Culture: Shifting political realities will create a more diverse culture around quality where emphasis will be on the science of quality and its theoretical basis rather than emulating a particular national culture. Impact of Crisis: Foreseeable economic and environmental crisis will affect all global societies and require collaborative actions on behalf of humanity to resolve root causes, rather than the nationalistic, self-centered way to deal with such issues as characterizes current approaches. 2014 BES Business Excellence Solutions, Ltd. 41 The Challenge: Increase quality (process) in social institutions to assure superior quality of life (content) for all people (customers). 2014 BES Business Excellence Solutions, Ltd. 42 Thank you! Any questions?