#51 – TQM & ERM SIMILARITIES AND DIFFERENCES – GREG HUTCHINS

Enterprise risk management (ERM) and total quality management (TQM) share some similarities.

Both grew to prominence as a result of policy circumstances, quality as a result of Japanese competitiveness and risk as a result of financial excesses in corporate America and homeland security.
Both share common concepts and techniques, but use different words for them
Both have similar methodologies.
Both follow a similar deployment mechanism.
Both follow a capability maturity model (CMM) curve.
Both rely on the board of directors and senior management to set the example and lead the initiatives.
Both focus on variance from targets or objectives.

Both emphasize that ultimate responsibility for quality and risk rest with process owners.
Both are company wide initiatives.
Both focus on achieving business objectives.
Both are process based.
Both have a hard technical side and soft people side.

The differences between the two are also compelling.

Risk management is relatively in its infancy, while quality is a mature technology.
Quality, even six sigma, seem to have a tactical focus, largely emphasizing execution and metrics.
Risk management is a board level, CEO, and CFO concern.
Risk management is largely driven by financial regulatory and statutory compliance concerns.

As you can see the similarities between ERM and TQM are more pronounced than the differences.

Hot Tip: The following are analogous:

Bio:

Greg Hutchins PE and CERM (503.233.101 & GregH@QualityPlusEngineering.com) is the founder of:

CERMAcademy.com
800Compete.com
QualityPlusEngineering.com
WorkingIt.com

He is the evangelist behind Future of Quality: Risk®. He is currently working on the Future of Work and machine learning projects.

He is a frequent speaker and expert on Supply Chain Risk Management and cyber security. His current books available on all platform are shown below:

CERM ® RISK INSIGHTS