ETQ State of Quality Management Study Finds Quality Shifting From Operational Compliance to Strategic Business Driver, Delivering Significant Return on Investment
Good Quality Adding an Average of 11 Percent to Organizations’ Revenue Growth
ETQ, the leading provider of quality management solutions, released findings from a first-of-its-kind research study – The State of Quality Management: 2020. According to the survey, companies are investing more in quality as a strategic business growth initiative that brings a significant return on investment (an average 23 percent). The report also finds that poor quality is costing organizations $49M per year on average.
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“The results from The State of Quality Management: 2020 are eye-opening on many levels and reinforce the financial impact quality has on corporate performance”
ETQ commissioned a comprehensive study to uncover key trends and insights about quality management today and how it may evolve in the near future. Based on a survey of senior-level quality stakeholders in life science, food & beverage, and manufacturing firms, the study found that good quality is adding an average of $156M, or 11 percent to bottom-line revenues (based on average surveyed company revenue of $25M to $1B-plus). On the other hand, the high cost of poor quality is attributed to sweeping product recalls, with 96 percent of respondents experiencing a recall in the last five years.
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Results of the survey will be discussed during a live webinar today (April 14) at 2:00 p.m. ET— The Rise of Quality as a Strategic Business Initiative. It will be presented by ETQ leaders and industry experts, along with findings from a separate informal ETQ survey concerning the business and quality process impacts of COVID-19. To register, visit the ETQ website.
“The results from The State of Quality Management: 2020 are eye-opening on many levels and reinforce the financial impact quality has on corporate performance,” said Rob Gremley, CEO, ETQ. “As the survey shows, companies committed to quality as a strategic business driver benefit from stronger customer loyalty, less costly product recalls, competitive differentiation, and ultimately, stronger revenues.”
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