The implementation of total quality management into public sector agencies: a case study of the Tennessee Valley Authority

Abstract

Growing foreign competition has encouraged many managers to reappraise traditional management practices. Managers are now realizing that the quality of their products and services must be enhanced to remain competitive in a global market. Many US companies have redirected their company philosophy through the adoption of total quality management (TQM) techniques. TQM has been utilized in the private sector since the mid‐1980s to help struggling US companies recover their profitability. Many governmental agencies have recently decided to implement TQM in their organizations, with hopes that it will have the same effect as it has had in the private sector. The idea of applying TQM principles in the government has resulted because of the overall shift in business philosophy to focusing on customer needs. Outlines the TQM implementation process in a government agency. Tennessee Valley Authority (TVA) is an agency in the government that started the implementation process of TQM in January 1990 as a means of achieving world‐class quality. A strategic quality plan has been developed, and an appropriate infrastructure has been set up to facilitate the implementation process. Also presents how TVA is using the Malcolm Baldrige criteria to guide and measure progress in the implementation and outlines steps followed using a departmental example. Concludes that, based on the TVA success, if the Federal Government does apply TQM, it would have a positive effect on the economy and other business industries.