Quality Management Principles Your CFO Should Know

Posted by Jan Victor Valencia
May 20, 2020
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Understanding the ins and outs of your organization’s processes is important in achieving strategic success in your business. Among the things that you have to understand are how you can achieve continuous improvement, meet regulatory requirements, and satisfy your customers and stakeholders.

In this regard, having a quality management system in place is crucial. But what is quality management? Read on to learn more.



What is Quality Management?

Quality Management is the activity of overseeing all processes in an organization to maintain a degree of consistency in the quality of its output, may it be a service or a product.

7 Quality Management Principles

The Organisation Internationale de Normalisation (ISO) defined 7 quality management principles (QMPs) that serve as the bases of ISO 9000, ISO 9001, and other related ISO quality management standards.

1. Customer Focus

The primary purpose of quality management is to meet customer requirements and deliver a product or service that exceeds expectations. When you focus on retaining the confidence of your customers and other stakeholders, success can be achieved.

2. Leadership

The leaders of an organization at all levels should be united by a common purpose and direction. They should set up the framework for business operations wherein every member adheres to the group’s quality objectives.

3. Engagement of People

To create and deliver value, each individual comprising an organization should be recognized, engaged, and empowered to help them in performing their roles, which are crucial in achieving the group’s quality objectives.

4. Process Approach

Achieving consistent and predictable results can be possible when business activities and functions are regarded and managed as a vital part of an organic whole.

5. Continuous Improvement

This is vital for an organization’s success, as it helps maintain current performance levels, identify opportunities for improvement, and address any challenges that may arise.

6. Evidence-Based Decision Making

Decision-making should be informed by facts, evidence, and data analysis to ensure greater objectivity and confidence.

7. Relationship Management

Managing its relationship with suppliers and partners is crucial for an organization’s sustained success, as this has a significant impact on how an organization performs


There are many ways to apply these quality management principles depending on the nature and culture of your organization, as well as the specific challenges that you are facing.

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Increase the efficiency of your finance and accounting department with our help. Learn about our cost-effective service line designed to support your CFO when you read our guide, Premium CFO Solutions. Click the link below to learn more.


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