The Role of Leadership in Commitment to quality

PEPSICO - The Role of Leadership in Commitment to quality

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The most prominent part of any enterprise increase strategy, the most productive enterprise marketing idea, is stock quality. If one looks at the true 'built to last' companies that Jim Collins writes about they have at their heart a fundamental, unquestioning, authentic commitment to quality. Every enterprise talks about their reliance in, and pursuance of, potential but for most it is just that - talk. They have potential procedures and potential standards and they strive to meet them. But - and this is the real test - they don't assuredly strive to exceed them and if they need to compromise on potential occasionally to hit the bottom line target, they will.

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The best companies commit a valuable part of their profits to continual improvement in potential and never, ever compromise potential for profit. These are companies like Mars, Procter & Gamble and Frito Lay. Mars, still a family run business, that has those family values of hard work and pursuance of excellence at its core, are sublime for the fact that every one of their citizen live and breathe stock quality. It is not an apocryphal story - their output and marketing teams not only regularly sample the confectionary products but their cat and dog foods as well. Procter & Gamble virtually invented the phrase 'new and improved' but unlike many others these improvements are real and discernable, the follow of years of high-priced research, improvement and testing.

Martin Glenn was for many years the Ceo of Pepsico Uk which included the flag ship company, Walkers - the Uk potato chip version of Lays in the Usa. He talks of the role of the leader of the enterprise in nurturing a restless pursuance of perfection in stock quality. As he says, "It may just be a potato chip to you but it is what we do and we do it to the very best of our ability, never satisfied that there is not some better way just nearby the projection if we work hard enough". Easy for leaders to spout the words but what is more impressive is what Martin's team say about him. His Vp of Sales, Tom Cuzeo, said in an interview that every person knew that if there was a smallest question with a batch of chips they would throw away the lot and start again - they did not need to ask Martin, they knew what his standards were.

Stories are told by Mars employees about how the brothers come on to the output line in their factories nearby the world and know every particular aspect of the process, the machines and how they should be working. They led from the front. August Busch Iii was similarly passionate about his beer, Budweiser. He visited Ireland once, a market where the brand was very successful, and, legend has it, went in to a busy Irish pub. He was not happy with the potential of some of the Bud they were serving and told the publican they were struck off the distribution list until they could get it right. every person watched in amazement as this billionaire enterprise leader then proceeded to give every person a lecture on how Bud should be poured, and what they were to look for in a great beer. His pride in his stock was clear - for him it was personal. Richard Branson rarely sits down on a flight on Virgin - he walks the aisles checking every person is getting the contact on board they paid for, in fact manufacture sure they get more than they expected.

All very worthy and great for the consumer but does it make money? Yes, it does but it is not easy to say exactly how much behalf can be attributed to this kind of obsession with quality. There is evidence you can point to. Martin Glenn compares the size of the potato chip markets in France and Switzerland. In France per capita consumption is much lower than it is across the border in Switzerland. The difference is, he believes, that in the land of William Tell one constructor dominates the market and sells a very high potential product. potential grows the market and commands higher prices and this can be seen in beer, confectionery, pet food and any other category.

However, it is not easy to quantify this and perform strict calculations on return on venture in quality. It is an act of faith and faith needs leadership. Leaders like August Busch Iii, Richard Branson, John and Forest Mars instil in their organizations an unquestioning commitment to potential and to its continual improvement. They don't seek to satisfy customers, they seek to pleasure them. An exact price cannot be settled on this - it is in fact priceless.

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