McKinsey ACQUA Assessment of Capabilities in Quality. Making the organization flow to Quality Excellence

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1 McKinsey ACQUA Assessment of Capabilities in Quality Making the organization flow to Quality Excellence

2 What is McKinsey Assessment of Quality Capabilities (ACQUA) and which impact can it bring to your organization? Capability building is a priority for organizations according to our global survey of executives, with 50% of CXOs ranking capability building among the top 3 priorities in their organization. The results also indicate that few organizations have a robust approach to assessing their current capabilities and identifying skill gaps, as only 18% of respondents indicated their organizations use structured, objective third-party diagnostics. Instead, manager and selfassessments are the most common methods of identifying capability needs. Results from the survey also show that credible metrics are a growing concern. When asked about their companies biggest challenges in building capabilities, 37% cite a lack of creditable metrics. One in five respondents say their organizations do not measure the impact of their learning programs at all. In our experience, companies are best able to build strong capabilities when they systematically identify the capabilities, both institutional and individual, that can have the most positive impact on the business. Objective assessments are an important tool in this process. Diagnostics not only help companies assess their skill gaps relative to industry peers but also help them to qualify the potential financial impact of addressing capability gaps. By diagnosing these gaps in a systematic, objective way, companies can better establish a foundation for the effective design of learning programs that link learning results to the business and include meaningful quantitative targets. With this in mind, we have developed an assessment tool which objectively assesses skills in various Quality Management areas. ACQUA is an objective multiple-choice individual capability assessment covering the essential elements that define the quality process by focusing on what matters. The assessment can be used to benchmark capabilities relative to industry peers, identify capability gaps, customize a learning journey, and track learning progress. 50% 56% 37% 2 of CXOs rank capability building among the top 3 priorities for their organizations SOURCE: Expert interviews of organizations link learning to individual performance of CXOs cite lack of credible metrics as challenge with leadership (35%) and functional (31%) skills as the most important to develop

3 ACQUA source of distinctiveness comes from the combination of three key factors Scalability across functions and levels Use of a common framework that can be can be extended to other functions Purchasing, Supply Chain, Product Development, R&D, Production, Support functions, etc Deployment at different levels from top management to shop floor or lab analysts Adaptability to different client contexts and levels of maturity Helps clients by identifying spikes and improvement opportunities in every quality capability level The tool can be easily applied in every context, indistinctively of location and size of the client, since it is fully adaptable Leverage of digitalization, Advanced Analytics and knowledge of the Quality Service Line Uses a digital interface to record participants inputs and display results Leverages Advance Analytics to gather new, more powerful insights and cross-relations between the different outcomes Leverages knowledge from the Quality Control and Remediation Service Line 3

4 ACQUA assesses 8 different dimensions and 28 Quality capabilities, with over ~100 competences covered Leadership 25 Role modeling 26 Coaching and feedback 27 Capability building 28 Reward mechanisms Quality strategy Strategic planning and execution Strategy understanding and cascading Partnership with other functions Resource management 4 Organizational design 5 Capacity management Improvement mindset 22 Speed of change 23 Process standardization 24 Continuous improvement ACQUA Regulation and compliance Regulatory updating mechanisms Regulatory knowledge External relations Performance management skills 20 KPI design and deployment 21 Performance discussions Functional capabilities 14 Knowledge transfer 17 Supplier quality 15 Quality assurance 18 CMO quality 16 Quality control 19 Quality technology Technical capabilities 9 Problem solving methodologies 10 Structured thinking 11 Risk management 12 Change management 13 Company IT systems Each dimension is structured according to specific capabilities and competences, enabling to perform accurate deep-dives without missing on the big picture Each dimension has more than 12 competences adding up to a total of ~100 competences assessed 4

5 Outputs provide a granular view on performance, ranging from individual to company-wide scores and benchmarking Global scoring benchmark Overall score Score by dimension Score by capability Score by role Score by department 4 5

6 which serve as a basis for defining the journey to bring company Quality to a whole new level Weak-spot identification Learning journey definition Model factory trainings On-site trainings e-learning modules Continuous coaching 4 5

7 ACQUA is fully digitized from online assessment to automated individual reports, and organization-level dashboards Online assessment Online assessment Individual report Organization dashboard 6

8 ACQUA insights help chart the Quality capability building journey for your organization Which Quality skill gaps are the most important to your organization? Do they vary by role? In which areas would it make sense to invest to reach a mastery level of proficiency? How can you maximize the impact of the existing skills for your current category strategies? How can you leverage existing strengths within the organization to engage and build the skills of others? Participation in ACQUA is easy and follows three main steps 1 Gather information for ACQUA launch 2 3 Launch and complete assessment Feedback discussion and customized learning journey Determine who will participate and main contacts Customize role titles, etc. Work with IT to prepare smooth launch Communicate to participants the scope and objectives Allow participants to self-register for the assessment Participants complete assessment within designated timeframe Participants receive individual reports and can discuss take-aways with supervisor Customize learning journey grounded in real work 7

9 Contact Sponsors Paul Rutten Partner Amsterdam Alvaro Carpintero Partner Madrid Miguel Ángel Morán Manufacturing & Quality Expert Madrid January 2018 Copyright McKinsey & Company