A Bare Bones Look At the Bottom Line

Quality makes money. Though money that comes through the door with customers is the traditional way to measure profit, quality also focuses on unexpended funds that gravitate to the bottom line as a result of improved practices. Even corporations whose profits fluctuated after winning the Malcom Bal...

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Bibliographic Details
Published inQuality progress Vol. 38; no. 5; p. 29
Main Authors Townsend, Pat, Gebhardt, Joan
Format Magazine Article
LanguageEnglish
Published Milwaukee American Society for Quality 01.05.2005
Subjects
Bank failures
Corporate profits
Customer satisfaction
Customers
Employees
Free markets
Leadership
Product quality
Productivity
Quality of service
United States > US
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Summary:Quality makes money. Though money that comes through the door with customers is the traditional way to measure profit, quality also focuses on unexpended funds that gravitate to the bottom line as a result of improved practices. Even corporations whose profits fluctuated after winning the Malcom Baldridge National Quality Award believe subscribing to quality practices gave them the best chance to regain their vitality when the business climate became more favorable. Quality practices bring profit to the bottom line through customer satisfaction, customer retention, lower overhead and greater capacity for work. Quality, and the expectation of quality, is a vital force in the marketplace for customer satisfaction and retention. Profit is the compelling motivation for beginning a quality process. And profit is an argument employees understand. Top managers have the obligation to explain the importance of quality in ways employees find compelling.
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ISSN:0033-524X