Wednesday, September 4, 2013

BALANCED SCORE CARD OVER TQM: SME

In my research I find that there is a miss conception that management principles and policies can only be adopted by large organization since they are too big for failing. But I hold an opposite thought where SME who are the biggest future leaders should adopt the principles. These management principles would help the SME to grow his business. Bankers and stake holders always prefer companies with the highest principles and standards. In my research I find that most of the companies thrive to get ISO 9000 certification.

Well ISO 9000 is the family of standards is related to quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders, while meeting statutory and regulatory requirements related to the product. The standards are published by ISO, the International Organization for Standardization, and available through National standards bodies. ISO 9000 deals with the fundamentals of quality management systems, including the eight management principles on which the family of standards is based. ISO 9001 deals with the requirements that organizations wishing to meet the standard have to fulfill.

In my research I find that SME business segment needs to go for ISO 9000 certification levels. But I find very few companies are in the race for the same. I find the implementation of balance score card in SME business segment linking it through total quality management would leads to a stupendous growth in the long term. In my research I find that there are couples of similarities between TQM and Balance score card.TQM looks for growth opportunities which will provide an end result to stakeholders of the organization. This one perfectly matches with the ‘Financial Perspective’ of the balance score card. TQM focuses on customer satisfaction employee empowerment which reflects the management style. In Balance score card we find that customer and employee perspective deals with advanced level of expertise which is linked with the internal control process.

Overall TQM focuses to improve poor company performance if the company is not doing well. Balance score card designs a metric which would help to measure the same TQM principles but links them with advanced expertise of BS score board numbers. SME looks for better quality and better financial perspective which can be achieved if the SME adopts the balance score card metrics. TQM fails to identify the changing customer expectations even for organizations seen to be doing well. Balanced score card works to be a genius in these terms.

It would help an SME to present his business and financial in a more constructive manner followed with better management principles. Bankers and stake holders would find more value based proposition of doing business when an SME adopts balanced score card strategies. Serious problems faced by the small business manager when trying to implement TQM 1) reduced training budget 2) owner/manager's lack of business experience and knowledge, and the shortage of financial and human resources required. Balanced score card helps to overcome both hindrances and design management road map followed with measurement metrics which would help the SME to grow his business in the initial days. SME should make a clear planning that at the least possible time they should go for the ISO 9000 certification. Since this hunger would lead them to focus more on sound business principles and practices which can be measured internationally by any one. Balanced score card is one of the such international standard which can be measured.

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