Quality Progress - November 2014 - 45

INNOVATION IMPERATIVE BY PETER MERRILL Pillars of Progress How global competitiveness relates to quality and innovation IN NOVEMBER 2011, my QP article "All The WEF explains the pillars in complex An ice storm in December 2013 took out Over the Map" analyzed the findings of the language and 6,000 words-and that is only power for up to a week for some-again, World Economic Forum (WEF). I showed the introduction. I'm going to distill the the cause was fallen trees. These events how different countries perform from a essentials from the 12-pillar description to demonstrate a lack of preventive thinking global perspective in regard to their innova- show how quality and innovation be- for infrastructure. Prevention, of course, is tion capabilities. In November 2013, my QP come increasingly important as a nation's a fundamental principle in quality. article "Changing Tides" examined global economy develops, enhancing its produc- innovation trends from 2011-2013, revealing tivity and, as a result, the prosperity of its 3. Macroeconomics how innovation in the United States and people. Joseph M. Juran said: "You plan and man- 1 Canada was slipping compared to countries age quality in the same way as you plan such as Sweden, Finland and Germany, 1. Institutions and manage finances."4 Many miss this which I called the Nordic cluster. The legal and administrative framework in important link, thinking about quality and which a nation's people and its organiza- environmental management systems, but at 565 pages.3 In this QP issue, which focuses tions interact must be free of bureaucracy forgetting about the financial link. on global quality, I'm not going into the deep and corruption so it can provide efficient data analysis I've done in years past. Instead, services. There also must be freedom from if you go deep into debt, you start paying I will explain the process the WEF uses to political interference in the judiciary. China higher rates of interest because you are establish its global competitive index (GCI). and India's GCIs especially suffer in this a higher risk. A good example is Japan. Understanding this process helps in 2 The WEF report is a massive document One principle of macroeconomics is that regard, but you also may recognize some Although the country scores well in the in- understanding where to find fertile ground of these issues closer to home. This is why novative capability (pillar 12) it is beset by for quality and innovation on a global level. quality in government is vital. debt problems that hold it back globally. Apply this principle to your organiza- It also reminds us to apply these economic principles in our own backyard. It's easy to 2. Infrastructure tion. If you start running high debt, it will assume that everyone is open to the quality Well-developed roads, rail, sea and air com- get in the way of your ability to deliver principles, but that is not necessarily so. I'm munications enable the producers of goods quality products and services. You can't also going to show that all roads ultimately and services to deliver efficiently. Reliable take advantage of new innovative opportu- lead to innovation. electricity supplies and a telecom network nities if you can't finance them. mean business can be conducted without Competitiveness essentials impediment. The British government made 4. Health, primary education The WEF's GCI is based on 12 pillars: a fundamentally flawed decision in the It's now understood, even more so than just 1. Institutions. 1980s when it decided to invest North Sea 20 years ago, that investing in basic educa- 2. Infrastructure. oil revenues into entrepreneurship without tion is fundamental to a nation's success. 3. Macroeconomic environment. simultaneously investing in infrastructure. It must be open to all and enable everyone 4. Health and primary education. Most of that funding flowed offshore, and to contribute to the success of a business 5. Higher education and training. the country now has an inadequate road and a nation. Yet, there are still parts of the 6. Goods market efficiency. system in which travel times between world in which this is not an inalienable 7. Labor market efficiency. major cities can take two or three hours for right. 8. Financial market development. an 80-mile journey. 9. Technological readiness. In Canada and the United States in Health and safety are also fundamental to people being able to make that same 10. Market size. August 2013, a fallen tree caused a massive contribution. OHSAS 18001, soon to be ISO 11. Business sophistication. blackout in the Northeast, affecting more 45001, has become widely adopted and 12. Innovation. than 50 million people for two or three days. recognizes that to be able to draw on the November 2014 * QP 45

Table of Contents for the Digital Edition of Quality Progress - November 2014

Up Front
LogOn
Expert Answers
Keeping Current
Mr. Pareto Head
Finding Harmony
Multipronged Approach
Bank on It
The System Is the Solution
Innovation Imperative
Quality in the First Person
Career Corner
Statistics Roundtable
Standards Outlook
QP Toolbox
QP Reviews
One Good Idea

Quality Progress - November 2014

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