|
Research, Books,
and Honors
Return On Quality
(ROQ)
What is ROQ?
Many companies have been disappointed
by a lack of results from their quality
efforts. The financial benefits of
quality, which had been assumed as a
matter of faith in the "religion of
quality," are now being seriously
questioned by cost-cutting executives,
who cite the highly publicized financial
failures of some companies prominent in
the quality movement. In this
increasingly results-oriented
environment, managers must now justify
their quality improvement efforts
financially.
The return on quality (ROQ) approach
is characterized by the following
assumptions:
- Quality is an investment,
- Quality efforts must be
financially accountable,
- It is possible to spend too much
on quality, and
- Not all quality expenditures are
equally valid.
ROQ in the Media
(Coverage of Dr. Roland Rust's
work.)
Does Service Equal Profit?
Customer Satisfaction Leads to
More Sales
ABC World News Tonight;
November 4, 1998
by Judy Muller
"Quality: How to Make It Pay."
Cover Story: Business Week;
August 8, 1994
by David Greising
AT&T CEO Robert E. Allen, for
example, receives a quarterly report
from each of the company's 53 business
units that spells out quality
improvements and their subsequent
financial impact.
"This is the most important thing that
AT&T has ever done," CEO Robert Allen
told a meeting of top managers the day
before his June board presentation.
"And for the first time since Deming
launched the quality imperative,
companies can start developing precise
tools to measure results. With a
well-implemented return-on-quality
program, they can get more than a sense
of a job well done and the opportunity
to spout lofty rhetoric about valuing
their customers. They can get the kind
of results that they can take to the
bank."
Publications
Paper "Getting Return on Quality:
Revenue Expansion, Cost Reduction,
or Both" (Journal of Marketing
October 2002, Volume 66, Number 4,
pp. 7-24).
Winner, 2002 MSI / H. Paul Root
Award (formerly the Alpha Kappa
Psi Foundation Award), for this
article in the Journal of
Marketing that was judged by the
Editorial Board to most
significantly advance the practice
of marketing.
Return on Quality paper.
Winner, 1995 Alpha Kappa Psi
Foundation Award, for the
article in the Journal of
Marketing that was judged by the
Editorial Board to most
significantly advance the practice
of marketing.
Return on Quality book.
Roland T. Rust, Anthony J. Zahorik,
Timothy L. Keiningham, 1994, Irwin
Publishing.
Obtain abstracts, reviews and
ordering information for relevant
books and suggested readings.
| 
