Culture of Quality Accelerating Growth and Performance in the Enterprise

1. Culture of Quality Accelerating Growth and Performance in the Enterprise A strategic collaboration between ASQ and Forbes Insights 1

2. Why Explore Culture of Quality? In Recall Blitz, G.M. Risks Its Reputation - The New York Times, July 1, 2014 Bad VA Care May Have KilledMore than 1,000 Veterans - CNN, June 24, 2014 Several Drugs in Gov’t Hospitals Fail Quality Testsin Random Checks - The Indian Express, June 26, 2014 Irresponsibleto Keep Using deadlyInfant Seat After Recall - Boston Globe, June 8, 2014 2

3. Forbes: A Powerful and Iconic Brand 6

4. Forbes Insights Survey 1,010Responses 7

5. Concurrent ASQ Member Survey 1,281Responses 8

6. Dan Afseth, Business Excellence Content Leader, Intuit • Aleksandra Djordjevic, Product Leadership Business, Intuit • Rodney Donaville, Director-Quality Culture, HP • Dr. Kate Goonan, Associate in Health Policy, Massachusetts General Hospital; CEO, Goonan Performance Strategies LLC • Cesar Diaz Guevara, PresidenteEjecutivo, Coporacion 3D Calidad • Elizabeth Keim, Managing Partner, Integrated Quality Resources • Fan Qing, Senior Manager of International Exchange Dept., China Association for Quality • Roberto Saco, President, Apioria Advisors • Paulo Sampiao, Prof. of Quality Engineering and Management, University of Minho-Portugal • Ernest PhoonKok Sen, Senior Associate Consultant, IDSC Pts Ltd • Kandy Senthilmaran, Worldwide Services Director, Microsoft Corp. • E. David Spong, Retired, The Boeing Co. • Michael L. Swenson, Supplier Quality Senior Manager, Boeing Defense Space and Security • JoalTeitelbaum, Presidente, JoalTeitelbaumEscritorio de Engenharia • Alex Yap, Principal Consultant and Trainer, Centrex Training and Consultancy • Liu Zhuohui, Vice President, China Association for Quality Advisory Panel 9

7. Organizations that self-describe their quality programs as world-class or state-of-the-art rate Key Findings C-suite and senior leadership often have a more positive outlook of their quality program than those with quality-focused titles. Customers’ demands are a main driver of a quality culture, but executives contend with other factors, like quality’s role in profitability. Only 60% of respondents say their quality vision and values are clearly stated. Quality vision and values are key to a successful quality culture. More than half of the respondents plan to increase investment in quality in the next 18 months, 17% of which call the investment ‘substantial.’ 10

8. What Organizations Exhibit a Culture of Quality? 75% 47% 59% 12

9. Why Such Different Views? 13

10. Why Such Different Views? “CEOs and the C-suite tend to receive filtered, big-picture material that has been ‘prettied up’ for management.”Elizabeth Keim, Managing Partner, Integrated Quality Resources “If you’re close to the challenge, you see the precise changes still needing to be made – and there are a lot of them. Whereas from the top, you see great progress.”Dan Afseth, Software Development Leader, Intuit 13

11. Developing and Sustaining a Culture of Quality “There will always be room for improvement. (Creating and sustaining a culture of quality) is the responsibilityof all leadershipof all organizations from the beginning to the end of our value stream.” Ken Shead, Vice President of Integrated Quality, Boeing Defense Space & Security “…Leadership sets the tone, clearly articulates the vision and expectations.” From there “you need to define what quality means, define quality goals … and reward those who are making it happen.” Jeffrey Ray, Director of Operations and Quality, Strategic Missile & Defense Systems, Boeing Defense Space & Security 16

12. Quality Goes Beyond Primary Offerings 18

13. In addition to customers, executives cite additional reasons to drive quality: Executives Drive Quality for Profits, More • Quality’s positive impact on effectiveness and profitability • Quality is a core leadership value • Quality’s ability to serve as a key competitive differentiator 22

14. Linking Key Performance Indicators to Quality 26

15. Challenges Abound in Worldwide Quality Adoption… Generation Y Born Mid 1970 to about 2000 28

16. Challenges Abound in Worldwide Quality Adoption… How challenging is it to make quality programs relevant for Baby Boomers, Generation X and Generation Y? Challenging 36% Very Challenging 6% Challenging 50% 28

17. …But Positive Change is on the Horizon Companies are planning substantial improvements to quality programs over the next 18 months. • 54% of all respondents plan to increase investment in quality programs. • 73% of executives say they are making investments in technology to improve performance against quality objectives. • 90% of respondents say they are investing in technology to meet end customer needs 29

18. What’s Next - Whitepaper • Deeper Analysis • Qualitative and Quantitative Analysis • Available at cultureofquality.org • in August 2014. 30

19. What’s Next – Online Self-Assessment In addition to the whitepaper, Forbes Insights and ASQ will develop a self-assessment tool that will allow organizations to measure and benchmark their “culture of quality.” The tool also will offer opportunities to improve a company’s culture. The tool will be available at cultureofquality.org for World Quality Month in November 2014. 31

20. For More Information Email: CultureOfQuality@asq.org Website: CultureOfQuality.org For further details on the research contact: Laurel Nelson-Rowe ASQ Managing Director lnelson-rowe@asq.org +1 414-298-8789 ext. 7433. Michael Barry ASQ Communications Manager mbarry@asq.org +1 414-298-8789 ext. 7263. Kevin Braley ASQ Senior Media Relations Specialist kbraley@asq.org +1 414-298-8789 ext. 7587. 33