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QUALITY MANAGEMENT IN BUSINESS AND NON-BUSINESS
SECTORSThe differences and the similarities A
new strategic vision The stakeholder in the
excellence models

• Dr. Fulvio Paparo
• Tartu 09/12/2005

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Introduction

• My participation at this event wants to value the
  present listeners supplying you the opportunity
  to get a criteria to see if there are fundamental
  differences between "QUALITY MANAGEMENT IN
  BUSINESS AND NON-BUSINESS SECTORS" through a
  specific view and concept of what must be an
  organisation oriented to excellence.

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The scope of the enterprise

• Which is the primary scope of every enterprise?
• The primary scope of every enterprise is to reach
  the institutional objectives, those for which it
  exists.
• Such scope implies the ability to generate value
  from the plurality of subjects.

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The definition of stakeholder

• ISO 9000 definition "Persons or group of
  persons having an interest in the performances or
  in the success of the organization".
• ISO 9004 explicitly says The parts interested
  of an organization comprise the customers, the
  staff, the property, the suppliers and the
  partner, the society".
• EFQM All those who have an interest in an
  organisation, its activities and its
  achievements. These may include customers,
  partners, employees, shareholders, owners,
  government and regulators.

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• From a point of view of the enterprise there
  exists a variety of actors who contribute to the
  success of the organization and what happens is
  conditioned from the mutual satisfaction in the
  total relationship.
• If the argument in the previous sentence is true,
  the excellence of the enterprise depends on the
  maximization of the contribution of its
  stakeholders, of their level of satisfaction.
  Such actors must enter in the strategic picture
  of the organization.
• Aware or less, the modern "models of excellence"
  have carried out a large problem.

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• The policy of the enterprise on regarding its
  stakeholder become a characterizing feature of
  the visible and declared profile of the
  enterprise. It is important not only for the
  financial analysts but also for employment
  issues, for business partner or aspirants, for
  educational institutes.
• It is a relationship do ut des that however in
  the excellent organization often exceeds the
  contractual scheme in order to become "pact for
  the success of the enterprise", mutual
  collaboration, and this is worth for the profit
  and not profit organizations.
• The final ideal is the satisfaction of all the
  interested parts. That demands a true
  relationship of partnership.

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Figure 1. Value flows in order to reach the
results
Area of means of the organization
Area of the results of the organization
Preferences of the customers
Systemic factors - leadership - organization
- strategies, plans - human resources - other
resources
Processes
Institutional results of the organization
Maximum synergic effect company-stakeholder
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Figure 2. The flows of value exchanged between
the organization and its stakeholders
Organisation
Stakeholder
Results of the organization
Results of the stakeholders
A true relationship of partnership involves
interchange and a fair division of the benefits.
The necessity to fairly satisfy the requirements
of the organization and the stakeholders is
clearly bilateral.
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Figure 3. Strategically balanced satisfaction of
the customers, the company, the stakeholder
Area of means of the organization
Balanced Maximization of the results
Clients satisfaction
Processes
Systemic factors - leadership - organisation
- strategies, plans - human resources - other
resources
Company satisfaction
Stakeholder satisfaction
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The organizations are social bodies more than
technical systems.

• The satisfaction of the stakeholder in a balanced
  relationship of giving and to have (win-win
  relationship) is an intrinsic factor to the
  relationship, is an ethic matter. It represents
  the assumption of the knowledge of the necessity
  to stretch to a harmonic equilibrium of powers in
  the multiple relationships of the enterprise and
  also of the public organizations, with the
  market, the shareholders, the society, the
  dependents, the business partners. The various
  relationships are not separate among them, but
  interacting.
• The real acceptance of such logic would represent
  a sort of revolution in the vision of the
  enterprise and of the organisations in general.
• In the focus of the enterprise there must be the
  person.

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Political organizations

• Particularly important considerations can be made
  also in the relationship between the
  representative organisations and the political
  government.
• Taking under consideration that in the liberal
  democracies the fundamental rights are personal
  rights the person is the original stakeholder in
  relation to any of the organization represented
  in the figure at the next slide.

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Figure 4. A stakeholder to the political system,
with rights and duties that must be specified to
him.
Political organizations to world-wide level
Political organizations to supernational level
Political organizations to national level
Complexity of the organization
Political organizations to locale/regionale level
Level base of the organizations of persons
Company
Association of citizens
Association of consumers
Non-profit organization
Level base of the persons like individuals
The organizations to the higher levels would have
to consider the organizations to the inferior
levels and the individuals like stakeholder (not
like "slave", as often it happens in the
hierarchical-authoritarian organizations).
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Political Organizations

• Each one of the entities evidenced in figure 4
  represents a internal stakeholder to the
  political system of belongings, with rights and
  duties that must be specific.
• The system will work well and much better if
  there will be more harmonic and balanced division
  of the duties and the benefits between the
  various categories of stakeholder.
• Systems in which a stakeholder, or a group of
  them, who acts dishonestly on others, will be
  unavoidably unbalanced.
• These concepts make part of a strategic vision of
  the stakeholder. It stretches to the maximum
  involvement and contribution to the organization
  and at the same time to their maximum
  gratification.

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Pathologies provoked from a lack of strategic
management of the stakeholder
The distortions that carry to serious
organizational pathologies lead back in general
to two causes, often concomitant
1) the customer is not more to the centre of the
attention of the company
2) a stakeholder (or a group of them) assumes the
windward on the others
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Conclusive synthesis /1
1- Total quality management has born as a
strategy of quality focused on the complete
satisfaction of the expectations of the customers.
2- Todays models, so called models of
excellence", place the satisfaction of the
customers to the first place between the business
priorities, but they evidence also the necessity
to satisfy the requirements of other actors,
defined interested parts or stakeholders.
3- These topic have been developed however
prevalently on the customer, with the consequence
that the problem of the other stakeholders have
not been, today, adequately deepened.
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Conclusive synthesis /2
4- The deepening of the theme of the stakeholder,
in a generalized manner and in the specificity of
each category, helps to comprise the evolution of
the roles in action in the enterprises and in the
other types of organization and the future
evolutions, in order to make to grow the quality
of the organizations and their performances.
5- The more meaningful implications of the models
of excellence in relation to the stakeholder,
those of greater strategic importance, are not
still well perceived.
6- To perceive these models is necessary to
verify the real will of the enterprises and the
public organizations to apply this concepts in
their fullness.
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