Bridging business boundaries

Examines the fact that Philips adopted a quality campaign in 1983 with mixed results, culminating in a $2.2 billion loss in 1990, and the reasons for the failure. Illustrates, for example, that the quality initiative became part of existing rivalries and was considered separate from “normal” work, and that the answer lies in quality planning: integrating mechanisms of policy deployment, alignment between levels and process management with integration across all functions. Suggests steps for instigating quality planning, largely through quality workshops that address each element in a planning model outlined in the article, concluding that contention must be replaced by integration and alignment to a common purpose in order to survive.