Total Management

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BT Retail|
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M Mwelase|
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Contents
1. Executive Summary……………………………………………………………………………………………1 2. Question 1………………………………………………………………………………………………………….2 3. Question 2………………………………………………………………………………………………………….8 4 .Question 3…………………………………………………………………………………………………….…..9 5. Recommendation…………………………………………………………………………………………….11 6. Conclusion………………………………………………………………………………………………………..12 7. Bibliography……………………………………………………………………………………………………..12

Executive Summary
BT Group a world leader in telecommunication started a new division called BT Retail. This division was providing telecommunication solutions to 21 million customers in the UK. Their first CEO, Pierre Danon, instilled a culture that saw the division excel for a number of years. This culture was driven by all top management and its employees in order to realise their set targets. The culture that was adopted by BT Retail was total quality management (TQM) throughout the organisation. This meant that all top management displayed and practised TQM. The author takes us through what is TQM and what are the principles that BT Retail instilled in order to gain customer satisfaction. The following principles were discussed:

* Customer Focus
* Continuous Improvement
* Employee involvement and Empowerment
* Systems Thinking.
These four pillars made sure that BT Retail was able to reduce the cost of poor quality, through continuous improvement methods and early identification of problems. In turn there was a decline in defective work, decline in dissatisfied customers, very little inspection was required and an increased sense of prevention. BT retail remained to be successful because all stakeholders were involved and quality was a way of life from managers to employees.

In the next session we will answer three fundamental questions on the success of BT Retail.

Explain in detail the role customer satisfaction played in BT’s total quality journey. Customer satisfaction was the key fundamental goal for BT Group. The leadership of the group understood the significant role it would play in market dominance and profit maximization. In an attempt to answer the question we will look at the role of a customer and how they influence quality by being satisfied with the product, service, cost and time it takes to deliver. Pierre Danon CEO of BT Retail took a prescriptive approach in making sure that their clients were satisfied with the product and services that they render. The “Revitalizing Quality” approach was indeed an approach that looked at: * General customer requirements

* Concentrated on drivers of innovation
* They intently maintained the 16 principle of operations management * The entire organisation adopted the CRM and CSM approach * And maintained their TQM philosophy
The author will now explore the above five mentioned approaches in detail to try and elaborate the link between customers and quality. General customer requirements
The BT Group has over the years realised that focusing on what the client wants will inevitably result in market domination and profit maximization. This statement is verified by BT Group’s focus in customers. * We see this in their values: “We put our customer first” * We also see this in the mission statement made by the CEO of BT retail, “New customer centric…” * Lastly we also note that in their new planned approach, they still want to focus on customers, “put customers at the heart of what we do” By focusing on the client you then address the six general customer requirements as stated by (Operations Management, third edition: 16).

Quality
Flexibility
Service

Service
Quality
Flexibility
Service

Service

Costs
Response times
Variability
Costs
Response times
Variability

These attributes as listed by the above diagram are
* Increased Quality – the entire organisation must adopt the TQM principle as guiding principle. * Increased...
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