Sometimes it’s good to be avoiding taxes. Yes, you should pay your income tax. But we’ve all heard of (and have probably paid into) the stupid tax, right? Well, we’re talking about something similar here.
A story of when Dave Thomas worked at Kentucky Fried Chicken tells of him throwing out a tray of chicken that did not meet his standards of quality. He had a choice of what kind of tax he was going to pay. The fee of poor quality is one an organization has the option of paying. When setting production assumptions, this cost is a factor to consider.
Understanding the tastes and expectations of the customer is critical. The failure to deliver on quality can destroy an organization. The twin tax of failing to obtain repeat customers along with the reputational damage of poor reviews is always a real and present danger. The quality program is critical but slows down production. It is a cost but a necessary one.
Dave Thomas threw out the chicken as he knew that if the customers had a bad experience, the damage would be lasting. In the haste to improve on speed, leaders always have to keep this in mind. When setting the threshold for productivity, finding the optimal rate for excellent quality should never get lost. Excellent performance minimizes the unnecessary expenses that come with poor quality and will help you to be actively avoiding taxes (at least the ones that don’t go to the IRS). Its reward is tangible and part of any performance management system.