10 Things About Quality 211009

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    10 Things about Quality

    Making a difference

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    The world is in the midst of a recession the worst in 70 years.

    Doubtless many lessons and reforms will come out of this

    period, but the greatest lesson, perhaps, is the theme of this

    document the need for constant vigilance to preserve andprotect quality.

    For Deloitte the word quality has many aspects personal quality, organizational quality,

    work quality, and even client quality. Critical elements of quality also include independence,

    compliance, and investments in staying current through training. All these kinds of quality

    represent a commitment to our professional responsibility and are vital to our culture and

    traditions indeed, they are vital to our future.

    With quality, there can be no compromises. Moreover, because issues of quality and ethics

    involve complex judgments, those who make decisions may need mentoring by experienced

    leaders just as those leaders were mentored by their predecessors.

    Quality can never be assumed, just as integrity is never a given. Day by day, decision by

    decision, quality demands the relentless commitment of each of us, individually and as a

    community.

    Quality, then, is not just a part of our brand and our reputation, it is at the heart of who we are

    and what we offer trust.

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    1 Quality begins and ends with

    each of us

    In any market environment, nothing differentiates more

    powerfully than quality, and once it is compromised, tainted, or

    lost, nothing is more difficult to recapture.

    Clearly, quality is vital to the enduring success of any business, but for a people business like

    ours in which we literally are the product it is especially important. Customers depend on

    our accuracy and expertise.

    Markets depend on the independence and integrity of our judgments. And we depend on

    each other to deliver the consistent and exceptional quality for which we, as a premier

    professional organization, are known.

    In this context, quality has a host of distinct references and meanings. It refers to the quality

    of our work and the integrity behind it. It means quality in those we hire especially their

    character and ethics. And quality speaks to the uncompromising standards we apply when

    choosing those with whom we will do business. This kind of care and consideration is vital to

    our strategy to have the worlds best people and the worlds best clients one driving the

    other.

    In any market environment, nothing differentiates more powerfully than quality, and once it is

    compromised, tainted, or lost, nothing is more difficult to recapture.

    We need to look no further, then, to find the guardians of our values and our reputation.

    Quality is us. All of us.

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    2 Build quality in, dont bolt it

    on

    It is said that the pyramid builders of ancient Egypt were the

    first to create a systematic approach to quality. Take the Great

    Pyramid of Giza, built with more than 2.3 million limestone

    blocks and completed in 2560 BC. So exacting were the

    specifications that there was less than one-sixtieth of an inch

    between the white casing stones that covered it.Even by todays standards, thats a remarkable level of precision. Its not difficult to see why

    the ancient pyramid builders put such an emphasis on quality and precision. With millions of

    stones, there would have been no feasible way to fix compounded errors of measurement

    short of literally moving a mountain.

    Essentially the same lesson applies to our business today. Quality needs to be in place

    before work starts. To catch and fix errors after the fact means extra steps, wasted time, and

    unnecessary expense. Glitches also can harm our reputation. As Stanley Gault, a former

    Rubbermaid chairman and CEO, once observed, Our customers are not there to field test

    our products.

    Quality, then, cannot be an afterthought. It needs to be built-in, constantly reinforced, and

    celebrated as a hallmark of our commitment to flawless execution and continuous

    improvement.

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    Quality is remembered long after the price is forgotten.

    Stanley Marcus

    3 Through the eye of the

    beholder

    We have our own high standards of quality and they are

    nonnegotiable. At the same time, delivering the Deloitte Client

    Experience means understanding how each client perceives,

    defines, and measures quality.

    Consequently, we need to see quality and value through the eye of the beholder the client.

    Its also important to realize just how powerful that experience can be for the client. AsNeiman Marcus president Stanley Marcus once said: Its especially important to remember

    that quality is much more than simply a matter of accuracy and meeting deadlines. Its about

    the strength of our ideas and our understanding of the clients business and industry. Its also

    vital to remember that the quality of our work is judged through the eyes of many beholders:

    client management, their board of directors, and even the companys shareholders.

    Delivering quality work identifies us as trusted professionals of uncompromising integrity.

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    4 Give it to them straight

    One of the things clients hire organizations like ours to do is to

    seek out the facts to analyze those facts and then to present

    honest findings and answers. This is sometimes easier said than

    done.

    In the real world, as we know, the facts that reveal the truth about a situation dont have a

    bright line drawn under them or a halo shining over them. Nor, in fact, may the truth be what

    the client really wants to hear. None of that matters. However gray, complex, or fuzzy the

    situation, our responsibility is to find and report the facts and present the truth.

    But lets face it: Doing so can be uncomfortable, difficult, and extremely delicate.

    Nevertheless, thats our job. It is our responsibility to be completely straight framing issues

    so that a person or organization gains a full understanding of our position. In the extreme

    case, we could even lose a client as a result of standing by our responsibilities.

    But we find that straight talk tends to foster respect and strengthen relationships with clients.

    After all, our reputation is as much on the line as theirs.

    When all is said and done, what do we want to be known for? The short answer is this: That

    we are an organization whose people always stand for quality, integrity, and transparency.

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    5 Judged by the company we

    keep

    Your mother was right: We are judged by the company we keep

    as is our entire organization. That is why we are so careful

    picky, frankly about whom we work with.

    For example, in the client vetting process, many factors are taken into account. What is the

    prospective clients reputation? How does the client operate? What kinds of risk might its

    business and its stakeholders face? Are there any conflicts of interest?

    And there are other considerations: Does the prospective client share our values? How does

    the organization treat its people? Does it give back to its communities? These are important

    questions that need to be asked and answered to ensure that the clients values truly align

    with ours.

    But it doesnt stop there. Our reputation is the collective responsibility of each and every one

    of us. How and with whom we interact, both inside and outside of Deloitte, reveals a lot about

    us, especially in these times of increasingly open social media. In a world in which anyone

    can contact anyone else and get information about them in a matter of seconds, our online

    behavior has become nearly as important as our face-to-face conduct.

    So, regardless of the complexity and growing number of ways we connect with one another, it

    is important to remember that we are all judged by the company we keep.

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    6 Dont fall short through

    shortcuts

    Although we are always on the lookout for ways to deliver

    service more efficiently, we must be careful not to take the kinds

    of shortcuts that can compromise work quality. In the face of a

    prolonged downturn, it may be especially tempting to cut

    corners, so we must use extra caution.

    In reaction to the downturn, it appears that we are now in an extremely value-conscious era.

    Just as there are shoppers in upscale department stores who are demanding a discount on

    non-sale items, some of our clients are pushing back on fees. And some of our competitors

    are on the unsustainable path of practically giving away services to bring in new clients.

    Whatever the pressures, our way forward must remain resolute: excellence in execution,

    continuous improvement, and enhanced quality.

    Here we might be inspired by Ed Viesturs, the legendary mountain climber and guide who

    scaled the worlds 14 tallest and most dangerous peaks, including Mount Everest. The

    famously cautious Viesturs never let his desire to reach the top cloud his thinking, and

    avoided the brash shortcuts that might have compromised the safety of his party.

    Lets apply the same sense of balance and perspective to our own business sticking to our

    principles.

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    7 Focus on the basics

    Independence, objectivity, compliance, and education are

    fundamental to our business, and they all are directly connected

    to how we deliver quality and excellence.

    And in this harsh economic downturn accompanied as it is by broad distrust of financial

    institutions and skepticism of big business in general these fundamentals are all important

    when it comes to defining who we are as an organization and how we are seen by clients and

    their stakeholders.

    Fortunately, our organization was built on a strong foundation. Consider our roots: One of ourfounders, E. W. Sells, was among the first to qualify as a CPA in New York, in 1896, and he

    was active in the creation of the AICPA, serving on its governing council. Today, the 86-year-

    old prize that bears his name the Elijah Watt Sells Award recognizes outstanding

    achievement on the Uniform CPA Examination and signifies the highest standards of

    performance.

    In a time of great change and complexity, clients, investors, and markets want high

    performance. They want quality. So when it comes to matters of independence, conflicts of

    interest, and strict adherence to licensing requirements and the education it calls for, we must

    do a lot more than simply comply.

    Remember, the actions of one individual can tarnish an entire organization. It is imperative

    that each and every one of us embraces the fundamental obligations that come with being a

    professional. In short, we must remain close to our roots and concentrate on the basic that

    are at the heart of this business.

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    8 Pass it on

    Virtually all organizations of any size have written codes of

    ethics. These include guides being offered on eBay from

    companies now defunct owing to ethical meltdowns.

    Granted, no one is completely immune to the risk of making occasional ethical breaches.

    What makes all the difference, I think, is the culture, or ethical DNA, of an organization

    especially when it comes to passing behavioral messages down from one generation to the

    next.

    In our case, we are fortunate to have a strong history of apprenticeship. Its a proud tradition,and to uphold our standards of quality it has been updated to fit with current realities,

    especially as teams grow in size and time becomes more of a premium.

    Nevertheless, there is a definite mentoring challenge that must be met. People dont arrive

    here already equipped with all the knowledge and experience necessary to make complex

    ethical decisions. At the same time, they need to learn the art of professional skepticism

    and to apply it as the rule, not as the exception, in a way that is seen as professional and not

    merely adversarial. This vital part of our tradition, like the teaching of other aspects of

    professional judgment, requires time and patience.

    Think about it: Each of us can name a person often several people who helped usbecome the kind of caring, ethical professional that we wanted to be. So make the time to

    nurture the ethical awareness of the next generation. Its our responsibility and our future.

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    9 Stop the bus if necessary

    Everyone knows what its like to ride a roller coaster. They lock

    you in and off you go, no steering wheel and no brakes.

    When organizations lack a clear ethical direction, the same roller coaster-like dynamic can

    take hold. Feeling locked in and propelled into uncontrollable actions or reckless decisions,

    people can zone out, relinquish control, and then just hold on, hoping that things will soon

    settle down.

    In contrast to this soaring white-knuckle image, I picture a bus with a cord to pull if we need to

    stop an ethics and quality cord, if you will. Toyota, a recognized standard-bearer of quality

    worldwide, has just such a philosophy. On Toyotas assembly lines, any employee can

    literally pull a cord and stop the line if he or she spots a quality problem.

    Lets face it, though: It takes fortitude to point out something that threatens to compromise

    work quality or reputation. The call may be controversial, even largely unpopular. If so, people

    need to believe that, if they do take that critical step, they will be supported for having the

    courage to take it, not blamed or penalized.

    So please, if something doesnt feel right stop the bus. Its not only the right thing to do, its

    your job. Just as it is our job to stand behind your decision.

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    10 Stand up, and stand as one

    No one client is so important that we should ever compromise

    quality, whether it is a matter of ethics or otherwise.

    Still, in a world of grays, standing up for a principle can sometimes be stressful and morally

    complex. Few such calls are open-and-shut cases, and often there will be disagreements.

    Nevertheless, like jurors doing the right thing, our job is to devote ourselves to the process

    and not to a foregone conclusion.

    When making such calls, there is no need to operate in a vacuum quite the contrary. Reach

    out. Consult. Our resources are broad and vast. Whether it is a question regarding ethics, a

    technical topic, or a quality control issue, you do not have to arrive at the answer alone.

    Talk to trusted colleagues and even leadership, if necessary. But when its clear what the call

    should be, make it and stand your ground. Say what needs to be said.

    And remember that when making the tough calls, we stand together as one organization with

    an unyielding commitment to quality.

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    Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple

    industries. With a globally connected network of member firms in 140 countries, Deloitte brings world-class

    capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's 165,000 professionals

    are committed to becoming the standard of excellence.

    Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and

    clients, commitment to each other, and strength from cultural diversity. They enjoy an environment of continuous

    learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to

    strengthening corporate responsibility, building public trust, and making a positive impact in their communities.

    2009 Deloitte & Touche. Member of Deloitte Touche Tohmatsu

    Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of

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