total quality management in higher education: myths and realities

Tertiary Education and Management, Vol.3, No.4, 1997, 285-291

Total Q.uality Management in Higher Education: Myths and Realities

Trevor FVatkins

Introduction

This paper highlights a number of issues sur- rounding Total Quality Management (TQ_M) and the applications of the concept in higher education (HE). These issues are expressed as a series of popular misconceptions about the topic, each accompanied by a commentary which attempts to put a more pragmatic perspective from one charged with overall responsibility for applying TQ.M at one major United Kingdom HE institution -Sou th Bank University.

Myth 1: TQ..M is a new wonder management tool

There are many management buzz-words and many management techniques for which great claims are made. TQ_M has its strong advocates, and has its converts who claim, with a certain amount of fervour, that TQM has 'turned round' their organisation. TQ_M also has a set of under- lying principles which adds credence to the claim that it is a new wonder management tool. But is it really new?

Reali~ The basic principles of TQ.M revolve around the concepts of."

• fitness for purpose

• customer satisfaction

• perceived value

• excellence. Many of the principles of TQM are based on established principles of marketing and produc- tion management. The roots of TQ_M lie in the manufacturing sector in which the aim is to produce physical products to the same defined quality standard - identical units of output in terms of quality. This aim is hardly consistent with the output aims in HEI

TQM, then, consists o f taking the basic principles of quality control and applying them to all elements of the organisation by getting commitment across the institution to a common goal of quality, defined as 'fitness for purpose as perceived by customers'. Customers can be both internal and external, as each process in the organisation can be seen as a system with inputs, transformations and outputs which add value to the total offering.

In my view, TQM in reality is a series of concepts which have been welded together with much success in some cases, particularly in the manufacturing sector.

Myth 2: TQM can be applied easily in HE

Converts to the principles of TQM have been quick to try to apply them in HE. The growth in TQM it the manufacturing sector in the 1980s

I The author draws attention to the fact that certain aspects of this paper have changed in the period since it was de- livered (August 1994).

Prof~sor Trcvor Pgaddm is the Depuff Vice-Cbancd!or and D~uff Cbio r Executive at South Bank Uniperst~ London, Soutbu~k Cempus, 103 Borough Road, London SE l OAA. Tel: +44 171815 601S. Fax: +44 171815 6098. Emeil: t~zkinu~.xbu.ec.uk.

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286 TREVOR WATKINS

led to a number of standards being set, notably the British Standard BS5750, established in 1987, for Q.uality Systems. This standard, which also forms the International Standard (ISO9001) is conceived and written in terms of products rather than services~

Reality In order to comply with this standard, full documentation of processes is required. Although HE institutions rely heavily on documentation, the format may not be immediately compatible with that required under the standard. However, in many cases the basic documentation may be well established. The role of the Registry in universities in validating, monitoring and quality control is usually well documented.

The basic issue is to translate a standard set for products into a sector supplying educational services. The supplier-customer relationship with products is relatively straightforward -wi th a physical product handed over, the quality of which can be checked in a relatively straightforward manner. The supplier-customer relationship in HE is much more complex, being a long series of interactions over the period of the quali- fication course. Ifa student fails is this necessarily a failure to deliver a quality service?

In order to apply these concepts of TQM in HE, there is a need for the HE organisation to be committed. Thus the corporate culture is likely to need to be changed and an acceptance of the need for change and continuous improvement is required.

Those who work in an HE institution will realise immediately that such culture change is no easy matter to bring about. Universities are di- verse organisations with many sub-cultures, perhaps be ing charac te r i sed by a lack o f commitment to a common culture.

There are positive featureg I do believe that most, if not all, academic staff come to work to do a good job and to contribute to students' education in a positive way. This feature is a strong basic building block for the application of TQM in HE. In TQM terms, it should be feasible for individuals to take responsibility for their own commitment to quality.

Another organisational feature in HE which can cause problems in terms of TQ_M is the traditional split between academic and administrative department~ This split needs to be healed if the concept of working together towards a common aim is to be achieved.

Clearl~ the basic tenets of TQM do not fit at all easily with many features of HE institutions - at least at first glance. The way we approached the issue of culture change at South Bank Uni- versity was to instigate a training project to develop our management resources. This pro- gramme, run for us by the Grubb Institute, had three major objectives:

• to involve management and staffat all levels in defining organisational and managerial practice so that it would further TQ_M

• to develop the management and leadership of the work of the university with students

• to facilitate the management of the university as an independent institution of HE account- able to its governing body.

The first stage, with deans and heads of department (academic and support), identified aim statements for each section of the university and stressed inter-relationships - t h e concept of internal customers and value chains in TQM terms.

The second stage was intended to cascade this process to involve all other staffin the university to identify descriptions of actual best practice of this functions. The process involved heads and other senior staff (principal lecturers and senior administration staff}, who each in turn discussed with their colleagues the ideas raised in the formal sessions with the Grubb Institute facilita- tors. In turn, this process was intended to lead to the setting of performance standards and performance indicators for each of the major operating units of the universi~ A systems view was taken in which each operating unit looked at inputs, transformations and output& In TQM terminology this approach involved both value chains and quality circles (in-house discussion groups aimed at quality improvements).

It would be misleading to claim that this approach is the best one. It was conceived as an attempt to address the issue of quality head-on. It was not intended to seek B55750 approval initially. We were concerned with real improve-

TOP QUALITY MANAGEMENT IN HIGHER EDUCATION 287

ments in quality which could be demonstrated and would be appreciated by our customer~

Myth 3: TQM is a management tool in HE

It has been assumed by many that TQM is being used by managements in HE at a time of reducing units of resource per student (or efficiency gains as the Education Department would call it!) to get more work out of lecturing staff.

Rw./i~y TQ_M cannot be imposed by management. There is a need for commitment in all parts of the organisation if overall quality is to be improved at a time of diminishing resources. Certainly there is a need for top management commitment to the principles of TOM. However, as already noted, for the organisation as a whole to benefit, there must be commitment and ownership of performance standards in all parts of the organisation.

At South Bank, the output ofour TQ_M process was intended to be a set of performance standards which each member of the unit had helped to draw up and would be committed to and willing to be judged by. These standards cannot be imposed. A centrally imposed requirement that, say, 99 per cent of all lectures must start on time, is likely to have much less effect than the same standard drawn up by the lecturing staff concerned...thus owned by them. Their commitment is likely to be much stronger. Publishing a set of performance standards and indicators for each unit gives guidance to both internal and external customers as to what they can expect realistically in dealing with the unit. Service expectations are set and - at that stage - a complaints procedure can be instigated to monitor service quali~

It was intended that contributions to ways of improving quality would be sought from the quality circles exercise and that inhibitors on quality improvements would also be identified and acted upon.

Myth 4: We know what our customers want

Customers play a central role in TQM. If TQ_M aims to provide 'fitness for purpose' then custom-

ers need to define exactly what this term means to them. A way of measuring customer service requirements needs to be identified. Much more effort has been put into understanding customers and their needs in business than in education. Perhaps we can learn from this effort.

Redi~ HE institutions have many types of customer, each with their own agenda in quality terms. Here I shall deal predominantly with students as customers. I shall pose the questions of whether HE institutions really understand customer needs and, at a time of increasing competition for students, whethe r HE institutions really use customer care strategies as part of their marketing and TQ.M approaches. Thus in this sect/on I deliberately use the language of business in relation to customer (student) care.

Customer care is concerned with providing the customer with acceptable service at an acceptable cost, and with providing a better service than the customer expects.

The concept of customer care is difficult to quantify and is often regarded as an operational, rather than a marketing, function. The old adage that 'you can't please all of the people all of the time' may be true, but it is important to put systems and processes in place which minimise customer dissatisfaction. The HE .institutions in the UK each have thousands of customers and it is very easy to forget the needs of the individual. However, as sophistication grows, customers are likely to become more discriminating and to demand higher levels of service quality.

Another trend which has increased the importance of customer care is consumerism, which has developed a number of consumer rights such as:

• The right to be informed ofthe true facts of the buyer-seller relationship, for example the amount ofteaching input to be expected on a course and the hidden costs not revealed initially (e.g. field trips).

• The right to be protected. Customers' trust in organisations must not be abused. For example, the sale of mailing lists to third parties can lead to consumers receiving vast quantities of 'junk' mail.

288 TREVOR WATKINS

HE institutions need to take careful note of these consumerist pressures Their reputations must be protected at all costs. This requirement may well militate against aggressive marketing tactics and so, despite competitive pressures, the need to consider the best interests of customers should be paramount in a marketing strategy. The long- terra view is necessary rather than attempting to maximise short-term profits. The concept of academic standards, although difficult to apply in practice, is crucial to the long-term acceptability of HE institutions as providers of qualifications The 'universal' standard of a degree sits uneasily with league tables of preferences for particular institutions.

Recently, much marketing attention has been focused on the concept of service or service quality as an aspect of customer care. This attention has tried to identify ways in which the quality of the service offered can be developed. A number of advantages from increased service quality have been identified:

• Greater customer retention rates and customer loy- alty. If customers are satisfied with the service, they are less likely to switch to another supplier.

• Attraction o f new customersfiom word of mouth recommendation. Customers are more likely to recommend a high quality service to their friends, family and business colleagues than they are a poor quality service. If, in conver- sation, the topic of quality of service arises, the opportunity for recommendation may be taken up if the customer is satisfied by the service. Such recommendations are much more potent than other forms of promotion because the customer is seen as an objective judge. Word of mouth recommendations can lead to new business. It is common for universities to educate a number of members of the same family - often over several genera- tions.

• Greater market shar~ This advantage flows from the first two. If maintained, higher levels of customer care can lead to greater market share. In education this can occur

through higher student retention rates. Higher levels of service quality are more difficult for competitors to copy; price competition can be matched by rivals quickly, but a system of higher service quality takes much longer to embed into the rivals' operating procedures and so increased market share is maintained for longer.

Improved employee moralc Higher service quality means fewer customer complaints and higher levels of satisfaction with the service. Service personnel are more likely to gain job satisfaction than if they are faced by a con- stant stream of complaints and abuse. Em- ployees are thus more likely to have positive attitudes to their jobs, to feel more profes- sional and to be more committed to their organisation. As a result, staff turnover is likely to be lower and fewer mistakes are likely to be made; both of these in turn lead to higher service quality and lower costs (e.g. in training). As a group ofstaffwork together over time, team spirit develops and the group cohesion further reduces staff turnover and associated costs. There is an obvious lesson here for HE institutions.

Insulation flora price competition. If customers evaluate suppliers in terms of value for money, rather thafi in purely cost terms, then service quality is more difficult for competitors to copy. As noted above, it is relatively easy for competitors to reduce their prices in the short term. If is not So easy to improve their service quality in the short term. Thus higher service quality is likely to insulate the supplier from price competition.

Lower advertising and promotion costs. As noted above, word of mouth recommendation is much more potent than paid-for advertising in gaining new business; it is also cheaper. Thus the supplier may see gains in numbers of customers without the need to increase advertising and other promotion costs.

Lower operating costs. Costs can be saved in a number of ways:

• from reduced staff turnover • in training and retraining costs • in rectifying transaction mistakes • in administrative costs

2 The author is indebted to Dr Barbara Lewis of UMIST for this section on service quality.


• from customer complaints being reduced.

• Increased productivity should f l o w from thise advantages and should lead to increased financial perjbrmance and profitability.

FEATURES OF SERVICE QUALITY

Service quality can be seen to have a number of identifiable features:

• Technical quality o f the service encounter - that is, what is received by the customer. This is based on the technical knowledge of the staff. It can be backed up by a range of teaching and learning aids.

• Functional quality o f the service encounter - that is, how the service is provided. This feature relates to the psychological interaction between the lecturer and student and is typically perceived in a very subjective way. It can contain elements such as the attitudes and behaviour of the lecturers and inter-relationships between lecturers and customers.

For instance, are the lecturers well presented? Are they positive about the HE institution and its courses? Do they appear competent, knowledge- able and aware? Do they seem to care about the customer? Do they appear welcoming? Do they treat the customer as important? Do they give the customer their full attention? Do they appear to be more interested in their lunch-break than in meeting customers' needs?

• Service-mindedness ofthepersonnel. Do they appear to understand and identify with the needs of the customer? Are they interested in what they are doing? Do they clock-watch? Do they convey competence?

• Accessibility ofrheservice to the customer. Do the lecturers explain the service in language which the customer can understand? Are the teaching aids easy to follow, sensibly written?

• Approach~il i ty o f service personnel. Do the service personnel appear alert, interested and welcoming? Do they appear to be willing to be interrupted or do they give the impression that they want to carry on with what they are doing? Are they gossiping with their colleagues?

Corporate image is an important dimension of service quality which arises as a result of how

consumers perceive the HE institution. This dimension can be affected by many factors indud- ing advertising and past experience with the institution.

DETERMINANTS OF SERVICE QUALITY

The major determinants o f service quali ty can be

seen to fit into a number o f dimensions, some o f which are more easily measured than others:

• Tangibles - the physical evidence: for example, the quality of fLxtures and fittings of the service area.

• Rdiability - getting it right the first time.

• Rerponsiveness - the apparent (to the customer) willingness to deal with the customer's queries.

• Communication - explaining to customers in non-technical language which they can understand rather than trying to confound customers with technical language.

• Creditability - perceived honesty and trust- worthiness seen as acting in the best interests of customers.

• Security - the customer needs to feel that, when necessary, conversations with staffare private and confidential.

ACHIEVING IMPROVEMENTS IN SERVICE QUALITY

The features of service quality and their determinants identified above lead to the need for a focus on customers in terms off

• customer satisfaction

• putting the customer first

• anticipating customer needs or problems

• tailoring courses to customer needs

• establishing lasting customer relationships.

These factors identify the need to appreciate fully the important role in the organisation of the service encounter - the organisation-customer interface. This recognition needs to come from the top, perhaps by means of a mission statement. Strategically, there is a need to create an internal environment which supports customer con- sciousness amongst the staff.

Training can be used in part to achieve these aims, but only within a corporate culture which recognises and fully supports the importance of the customer. Recruitment and selection policies

290 TREVOR WATKINS

also have a part to play; the characteristics of good service personnel should be stressed in recruitment. Working conditions and fringe benefits should also make service personnel feel an important and integral part of the organisation. A happy workplace is likely to transfer these feelings through the service encounter to the customer.

IMPROVING CUSTOMER CARE

• Step 1. Identify key dimensions of service quality, both inside and outside the organisation. This process of identification may well involve market research to identify ex- isting levels ofsatisfaction of both customer and service personnel. The research could also be used to identify expectations,of service quality and thus identify the gaps between expected and actual levels of service quality.

• Step 2. Set standards for service delivery. These should be quantifiable and potentially attainable.

• Step 3. Set up systems for service delivery. It is pointless setting targets if there is no operating system in place which can enable service staffto meet the targets.

• Step 4. Analyse employee training needs. Be- fore setting up training programmes it is necessary to decide on their content.

• Step 5. Develop training programmes to include customer awareness and interpersonal skills, as identified by the analysis of training needs. Internal education and communication programmes should also be set up.

• Step 6. Set up systems to measure and monitor success in terms of achievement of set targets. Again, market research may well be involved to examine levels of employee performance and satisfaction, and customer expectations and perceptions of actual service quality.

CONCLUSION ON CUSTOMER CARE

In summary, it is easy for the management of an organisation to pay lip service to the need for better customer care. In reality, higher service quality can only be achieved by careful planning and implementation of operating systems, which can be monitored to ensure that they meet set performance standards. Cultural change is much

easier to write about than it is to achieve. In practice it involves the following actions:

• Breaking down barriers. An essential element, in large, stable organisations particularly, can be to change the typically traditional, autocratic, paternalistic and hierarchical culture and structure. Examples of how to achieve this aim include:

• mixing staff from widely different levels of the hierarchy at training sessions

• promoting the use of first names between management and staff

• sharing facilities, including single status restaurants and meeting rooms

• reducing the number of tiers of management.

• Improving internal communicatio~ Adequately informing staffabout their role in the organisation is very important; both vertical and horizontal communications often need to be improved.

• Overcoming inflexible attitudes and behaviour by some staff who do not accept the need for chang~ Such staff resist change and often do not want to accept new concepts ofdevelopment of responsibility and authority. Apathy and open resistance to change can be very difficult to overcome.

Myth 5: Performance indicators cannot be applied in HE

The identification of suitable performance indicators has been occupying much time in HE of late. The need to assess value for money in HE has led to much effort in trying to identify means of comparing institutions and departments. In TQ_M terms, having set up an initial system, it is necessary to monitor performance over time.

Reality

The true measure of HE performance is educational value added to students. Despite many research efforts, no simple way of measuring this ultimate performance indicator has been identified. We need a simple input measure and a simple output measure along with a means of comparing the two. In the absence of an aggre- gate measure of this type, intermediate proxy measures are necessar~


At the institution level, a series of institution indicators have been identified which need to be related to the individual institution's aims and objectives. These are:

• student population

• course completion rates

• student achievement

• index of revenue resource

• index of capital resource (equipment)

• index of capital resource (buildings)

• index of output cost (relating course completion rates to the index of revenue resource)

• ratio of students to staff"

• ratio of public funds to total income

• ratio of private fees to public funds.

Within institutions, the use of performance indicators, whilst needing to fit with the institutional mission, should be closely linked to the TQ.M process. Ownership of, and commitment to, particular performance standards is essential to their subsequent achievement. In my view, performance indicators to be associated with these standards should be:

• as simple as possible

• related to the core business

• relevant to customer needs

• capable of comparison between institutions and over time.

The need to set up a practical system suggests a trial and error approach to the selection of which indicators to use. Finally, the need to monitor achievements suggests that the measurement of indicators over time is a key consideration.

The conclusion is that TQ..M has much to offer HE but that it is not just a case o f translating BS5750 from a product-based to a service-based system. Sensible application of TQM principles in HE in order to show a realistic improvement will take time, commitment and considerable investment by top management. In my view the starting point should be a better understanding of customer needs, which can then be addressed through a process of service quality improvement which permeates the organisational structure.

Summary

This paper has addressed a number of issues inherent in the adoption of the principles of TQM by the HE sector. It has not set out to provide all the answers but has intended to stimu- late discussion and to suggest possible approaches. Where applicable, it has used South Bank University's experience as a case study. Issues have been addressed in terms of popular misconceptions in TQM along with suggested approaches thought to be more realistic.

total quality management in higher education: myths and realities

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