Performance measurement by TQM adopters

Organizations wishing to implement TQM face unavoidable profound changes in performance measurement and are in need of guidance and better understanding of the role of different performance measurement methods and systems. The objective of this paper is therefore to provide guidance for future TQM adopters through investigation of existing practices implemented by a group of finalists in the total quality category of Canada Awards for Business Excellence. Especially the usage and perceived appropriateness of different methods are of interest.

A sample of finalists in the total quality category of Canada Awards for Business Excellence was surveyed. The data were collected either through in‐depth personal interviews or by mail/phone using a questionnaire. Next, descriptive statistical techniques were used to analyze the data. T‐statistic tests were performed in order to determine the significance of the results.

Regarding the extent of use and appropriateness of the traditional and TQM‐related performance measures (PMs) and systems/methods (PMS) found in TQM environment, the findings reported that PMs and PMS, used and considered appropriate by TQM adopters, are predominantly process‐oriented (process sequence flow charts, Pareto chart, cause and effect diagram), long‐term‐oriented (market research/customer survey, percentage of sales from new products and absolute market share), and customer‐oriented (number of complaints, percentage on‐time delivery, overall customer satisfaction).

The small sample limited exclusively to finalists in the total quality category of Canada Awards for Business Excellence may be a limitation.

This research provides guidance for companies considering implementation of TQM or in the process of adopting TQM with regard to the design of a performance measurement system that would support their TQM efforts successfully.

This research is looking at extent of use of performance measures and methods and at their perceived appropriateness by TQM adopters at the same time. Thanks to this approach it provides valuable insights into performance measurement in TQM both for academics and for practitioners.