Managing change: a barrier to TQM implementation in service industries

Abstract

Purpose This paper focuses on six change management issues that address quality management practices in the service sector, difficulty in taking a holistic approach to total quality management (TQM) implementation in the service environment, and the challenges of delivering organizational reform through TQM. Design/methodology/approach The study employs a quasi‐qualitative case study methodology. Twenty service companies from health care, insurance, consulting, and banking and financial services were studied over a period of two years to assess their change management practices for implementing TQM. Findings The findings point to a less than total implementation of TQM in the studied companies. Among other issues, unrealistic expectations of employee commitment, absence of process focus, lack of organization around information flow, holes in education and training, and failure to create a continuous improvement culture contributed significantly towards failure. More successful companies focused on avoiding these potholes with strong leadership that emphasized strategic and tactical planning. Research limitations/implications Based on one successful company, the study provides a guideline for successful TQM implementation in a service setting. However, with only one successful company, it would be difficult to generalize to other companies unless future research investigates other successful companies in similar industries, similar economic environment, and market conditions. Originality/value The value of the paper lies in the lessons learned that when real and actual approaches to change management follow academic models and techniques of change management, the ability to develop and implement organization‐wide change progresses more smoothly.

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