Total Quality Management, 2014

Vol. 25, No. 7, 763 775, http://dx.doi.org/10.1080/14783363.2014.904568

Quality management and a balanced scorecard as supporting

frameworks for a new management model and organisational
change

Lus Pimentel and Maria Joao Major

Accounting Department, ISCTE-IUL (University Institute of Lisbon), Av. das Forcas Armadas,
1649-026 Lisboa, Portugal

The purpose of this paper is to examine how the implementation of quality

management and total quality management (TQM) particularly contributes to
organisational change, and to analyse the impact of integration of TQM and of a
balanced scorecard (BSC) into a new management model and into the effectiveness
of an organisation. The paper adopts a descriptive longitudinal case study, and deals
with the implementation of innovative management frameworks in a Portuguese
government agency. The study was built on quality management/business excellence
and on performance measurement systems (PMS)/BSC literature. The main findings
of the paper show that a new management model of the organisation, based on a
quality management programme (particularly TQM), and on a performance
measurement programme (basically a BSC) proved to be efficient. Moreover,
evidence shows that TQM contributed to organisational change and to increase of
financial performance. The paper contributes to the literature on quality management
by highlighting the role of quality management and TQM as important tools to help
organisations to change and to improve efficiency and financial performance. It also
contributes to show that organisations can integrate successfully quality management
and PMS/BSC, which is a topic slightly investigated within scientific literature.
Furthermore, it covers a government agency where few practical situations have
been studied. These implications are important for academics and for practitioners.
Keywords: quality management; TQM; organisational change; balanced scorecard;
descriptive case study

1. Introduction
The performance of organisations is a central investigation issue to contribute to better
outcomes and results in private and public organisations (Hood, 1995; see also
Osborne, 2006). Therefore, the improvement of management systems and how organis-
ations should measure their performance has been challenging academics and practitioners
for many years (Fitzgerald, 2007, p. 223).
In the late 1980s, researchers found that financial performance measures did not
capture customer quality and the innovation demands of the changing environment.
Indeed, new demands required that organisations must adapt to the new business environ-
ment, marked by technological and organisational changes (Johnson & Kaplan, 1991).
Consequently, innovative managerial systems have been developed in the last three
decades to help organisations to become more efficient. Furthermore, concerns with
image, quality management and clients/customers (internal and external) satisfaction
began to be discussed as objectives of organisations.

Corresponding author. Email: [email protected]

# 2014 Taylor & Francis

764 L. Pimentel and M.J. Major

Examples of these new systems are strategic management accounting, management

control, management by objectives (MBO), activity-based costing, total quality manage-
ment (TQM), balanced scorecard (BSC) and new approaches, such as business excellence
models (BEM), business process reengineering, enterprise resource planning or organis-
ational change management (Dahlgaard, Chen, Jang, Banegas, & Dahlgaard-Park, 2013;
Hopper, Northcott, & Scapens, 2007). They have been adopted particularly in the
private sector, but also in the public sector.
This paper concerns an investigation about organisational change in a Portuguese gov-
ernment agency (Instituto de Gestao Financeira da Seguranca Social IGFSS1), which has
implemented a new management model. The investigation is based on a case study as a
research method. In this public organisation a change process has occurred since the
early 2000s and several management innovations were implemented, namely a quality
management programme, which followed the guidelines of TQM and performance
measurement systems (PMS), translated mainly into a BSC.
The research aims to investigate how the quality management programme and the BSC
were efficiently integrated into the management model of IGFSS.
The paper is structured as follows. Literature review on quality management and PMS/
BSC is presented in Section 2. Section 3 describes the methodology adopted in the inves-
tigation. In Section 4, the empirical study is developed. Finally, Section 5 presents a dis-
cussion of the findings and conclusions.

2. Literature review
2.1. Quality management
Quality definitions have been related to two different approaches: (i) quality as an attribute
of a product, service or specific tools in organisations and (ii) quality as a global ultimate
outcome associated with the overall functioning of the organisation (Cameron & Sine,
1999). TQM is consistent with this latter approach and is the concept that appears most
frequently in organisational literature. Rad (2006, p. 607) describes TQM
as the development of an organisational culture, which is defined by, and supports the constant
attainment of customer satisfaction through an integrated system of techniques and tools;
TQM is the culture of an organisation committed to total customer satisfaction through
continuous improvement (see also Dahlgaard & Dahlgaard-Park, 2006; Hafeez, Malak, &
Abdelmeguid, 2006).
Kanji and Yui (1997) go further and introduce the concept of total quality culture; con-
cerning quality, culture can be influenced by the environment, strategy, management
system and people. Green (2012) mentions that cultural aspects of an organisation
could influence and impact on a TQM initiative, and Dahlgaard et al. (2013) conclude
that it is impossible to attain business excellence without the right organisational
culture (p. 527).
TQM strategy for achieving normative outcomes has been described as rooted in four
assumptions linked to: (i) quality; (ii) employees initiatives and training for quality
improvement; (iii) collective involvement in organisations and (iv) commitment of top
management to total quality (Hackman & Wageman, 1995; see also Rad, 2006, who
enhances the need to establish a strategic plan, aligned with quality culture, and to inte-
grate information systems).
To remain leaders, companies need to achieve business excellence. To support it,
Kanji (1998b) suggests a business excellence index to encourage organisations to
apply for quality awards, measuring customers, employers and shareholders satisfaction
 Total Quality Management 765

simultaneously. Regarding ISO 9000 standards (including ISO 9001 quality assurance
requirements), Kanji (1998a) mentions that they have been used for the quality assurance
of a system, to offer customer quality in products and services. Consequently, core
research themes within a broad scope of TQM implementation and effects are found to
be service quality measurement and customer satisfaction (Lo & Chai, 2012; Modell,
2009).
Oakland (2011, p. 517) states that the effectiveness of an organisation depends on the
extent to which people perform their roles and move towards the common goals and objec-
tives. To achieve excellence, TQM is the vehicle, and the model characterised by the four
Ps and four Cs provides a framework for this: Planning, Performance, Processes, People,
Customers, Commitment, Culture and Communication (Oakland, 2011; see also Dahl-
gaard, Petterson, & Dahlgard-Park, 2011, who propose a system for assessing and improv-
ing healthcare organisations based on leadership, people management, partnership/teams,
processes and product/service results). Synthetically, Dahlgaard and Dahlgaard-Park
(2006) mention that the human factor and the right company culture are the key factors
to successfully design a quality strategy, enhancing the importance of everybodys
participation.
Some researchers also developed investigation regarding application of TQM prin-
ciples to public administrations (PA). The European Foundation for Quality and Manage-
ment (EFQM), which has been proposing a supporting framework towards attaining
business excellence (Pesic & Dahlgaard, 2013), was the crucial source for these
approaches that aim at improving efficiency and effectiveness in public organisations.
In Sweden, a specific model inspired by TQM practices and EFQM guidelines was
launched in a government agency. This model may be characterised as a customer and
process-oriented model, emphasising a more pronounced citizen perspective, as an
alternative to performance management based on managing for results (Modell,
Jacobs, & Wiesel, 2007).
In Portugal, a similar quality model programme was launched by the Ministry of Social
Security and Labour (MSSL). The source of this programme was the common assessment
framework (CAF), a tool developed in the EU in 1999/2000, based on EFQM guidelines
and applied in several European countries. Beyond emphasising TQM, this programme
has as main objectives: (i) continuous improvement of public services; (ii) focus on the
client; (iii) strong leadership and collaborators involvement; (iv) process orientation and
(v) performance evaluation and measurement (Ministry of Social Security and Labor,
2004).

2.2. PMS and the BSC

Literature and empirical studies show that PMS are a powerful tool, particularly when
rewards are linked to targets (Fitzgerald, 2007; Kaplan & Norton, 1996). Moreover,
research confirms that organisations with formal PMS outperform organisations without
it (Fitzgerald, 2007).
One of the frameworks conceived to help organisations to measure performance in this
perspective is the BSC. It seeks to translate organisations strategy and vision into: (i) the
financial perspective; (ii) the customer perspective; (iii) the internal business perspective
and (iv) the learning and growth perspective (Kaplan & Norton, 1992, 1996).
Considering the limitations of the use of solely financial measures to evaluate man-
agers performance, the implementation of PMS has been developed to supplement tra-
ditional financial measures with non-financial performance measures, linked to
766 L. Pimentel and M.J. Major

corporate strategy (Fitzgerald, 2007). This perspective enables organisations to follow the
continuous improvement demanded by todays competitive environment and to consider
the impact of customer satisfaction and good employee relations, beyond the shareholder
perspective. The challenge then becomes to develop non-financial performance measures
that capture the quality, service and flexibility issues of todays customer-oriented com-
petitive strategies (Fitzgerald, 2007, p. 224).
Initially, organisations used BSC for measurement, combining financial and non-finan-
cial measures. Later, BSC included strategy maps and developed cause-and-effect chains
to link strategic objectives to drivers. Finally, BSC has evolved to a management system,
including incentives, structures and rewards (Fitzgerald, 2007).
Developing objectives and performance measures linked to strategy, BSC must be
integrated with strategic plans and management control systems. The tool contributes
with a specific role of communication (improving motivation and reaching agreement
between the managers), clarification of priorities or improved coordination across func-
tions, thus providing the vehicle for the organisation to move forward (Atkinson, 2006;
see also Kumar, Kumar, de Grosbois, & Choisne, 2009; Oakland, 2011). Accordingly,
the BSC is an effective strategy implementation tool (Atkinson, 2006, p. 1454).
Strategy management is an imperative in the public sector and BSC has been recently
the framework (with an improved design) that can be deployed as a strategic control tool in
public sector governance (Andersen & Lawrie, 2002). Complementarily, BSC in the
public sector has as unique challenges those that come from the fact that, instead of share-
holders, the nature of its accountability are clients/citizens in the community (Sharma &
Gadenne, 2011).

2.3. Integration of frameworks

Literature has not approached many cases of bundling and/or integration of quality man-
agement frameworks (CAF, TQM, ISO 9000 standards, EFQM guidelines) and PMS, par-
ticularly BSC. This is surely a gap in the literature. Indeed, more case studies on such a
subject must be conducted. So far, some real situations have been reported. Anecdotal evi-
dence shows that there are multiple benefits of combining TQM with BSC. For instance,
Hafeez et al. (2006), after conducting a survey on 40 European organisations, concluded
that the TQM framework based on the BSC type performance measuring system provides
a good metric for the companies to realize TQM efforts in terms of financial and non-finan-
cial business performance (Hafeez et al., 2006, p. 1228). Furthermore, empirical research
indicates that quality programmes/awards such as TQM seem to encourage the adoption of
BSC, management control systems or PMS in general (Malmi, 2001). Complementarily,
Kumar et al. (2009, p. 613) mention that performance measures and PMS are less finan-
cially and more process-oriented in a TQM environment, and that the mechanisms used to
design new performance measures and systems by TQM adopters are based on employee
training and employee involvement.
Kanji (1998a) mentions that to achieve business excellence, organisations must show
leadership and top management sponsorship, and follow four governing TQM principles:
(i) delighting the customer; (ii) people-based management; (iii) continuous improvement
and (iv) management by fact. These principles are fully aligned with the four BSC per-
spectives (Kaplan & Norton, 1992, 1996). Actually, delighting the customer is aligned
with the customer perspective. People-based management implies the recognition of the
role of people in achieving the outcomes (which is aligned with the learning and
growth perspective), where employees morale has a crucial role. Continuous
 Total Quality Management 767

improvement is aligned with the internal business processes perspective. Finally, manage-
ment by fact implies the involvement of the whole organisation, which is one of the crucial
assumptions of successful BSC (Kaplan & Norton, 2001). Consequently, financial per-
formance develops more advantageously for companies that have implemented TQM
more successfully than competitors (Erikson & Hansson, 2003; see also Dahlgaard
et al., 2013).
BSC is a fashionable framework because it supports quality programmes and various
types of quality awards, and other change agendas (Malmi, 2001). To succeed and obtain
long-term benefits, the decision to implement quality management tools must be made in a
strategic context. BSC as a management system, where objectives cascade to the bottom-
line of the organisation (encompassing measures and targets) and strategy is everyones
business, can imply a better integration with quality management frameworks (ISO
9000 standards, EFQM BEM or TQM) (Andersen, Savic, & Lawrie, 2004). Lawrie
(2004) emphasises that balanced scorecard can be seen as an umbrella concept that
links organisational philosophies and management tools (p. 18). Moreover, compared
with the EFQM BEM, Lawrie (2004) states that BSC helps organisations to do the
right things, while BEM do things right; used together they can ensure that the organ-
isation does the right thing right (p. 19).
If one of the main goals of BSC is to help managers to identify objectives, measures
and the inherent connections, the EFQM BEM is basically used for measuring the organ-
isations success in the achievement of objectives and excellence (Pesic & Dahlgaard,
2013). Thus the BSC and the EFQM Excellence models may be considered as comp-
lementary models (Pesic & Dahlgaard, 2013, p. 653; see also Dror, 2008, who mentions
the advantages of BSC being integrated with EFQM BEM, such as sequential objectives,
or the existence of two feedback levels; and Modell, 2009, who identified a gradual
process of bundling elements of TQM and BSC, which influenced a new PMS in an organ-
isation, emphasising customer orientation).
To assume the tool effectiveness, Dahlgaard et al. (2013) proposed the business excel-
lence framework (BEF) for companies facing difficulties in implementing BEM, due to
practical problems (too-sophisticated assessment criteria, cumbersome procedures or
lack of focus). Concretely, BEF recommends adaption, where BEM implies an adoption
(Dahlgaard et al., 2013).
In the public sector, performance measures already include changes that highlight
effectiveness (meeting customer requirements) and efficiency (economical use of
resources). In private and public organisations, beyond financial measures, non-financial
measures, such as employee satisfaction or customer service, are widely found
(McAdam & Saulters, 2000). Therefore, in the public sector, quality measurement frame-
works are often combined with financial performance measures in a single basket. Inte-
gration was found among the EFQM BEM, ISO 9000 standards, BSC and benchmarking
(McAdam & Saulters, 2000). Other case studies with similar results were reported in
Belgium (Bernard, 2010), where several public organisations integrated successfully
CAF and BSC.

3. Methodology
3.1. The field site
IGFSS is a government agency that manages the social security system in Portugal, par-
ticularly the debt of debtors to the system. The organisation develops its activity under
the supervision of the MSSL and integrates the indirect administration of the state.
768 L. Pimentel and M.J. Major

However, the institute has administrative and financial autonomy, and manages its own
assets. Three hundred and seventy nine collaborators work in IGFSS.
Within the scope of the new management model implemented in 2004/2005, as a con-
sequence of a deep institutional and organisational change process, IGFSS has its mission
clearly defined the financial management of economic resources established in the social
security budget (around 36,300 million euros in 2012). Concerning the vision, the organ-
isation intends to be a leader in the quality of public service.
IGFSS activity is divided into four business units (BUs): (i) budget and accounting of
the global social security system; (ii) debt management (DM); (iii) real estate and (iv)
financial management. There are also five support areas. The main activity is the manage-
ment and recovery of debts from debtors to the social security system, carried out by
decentralised BUs, all over the country the debt recovery local services. Coercive col-
lection is included and, today (2012), DM manages about 1940 thousand processes of debt
collection (583 million euros). The institute has registered a significant evolution in the
adoption of innovative management tools and frameworks. Its policies, results and out-
comes are mainly oriented to the satisfaction of the citizens/clients needs, and to continu-
ous improvement, which are very relevant to the certification of the system of quality
management (ISO 9001) and to the 5 star recognized for excellence awarded by
EFQM, among other awards.

3.2. Research methods and methodology

A longitudinal case study was carried out in IGFSS to understand the way the new man-
agement model was implemented during the period under analysis (2003 2012), and the
way the several management frameworks (quality management, based on TQM, and a
BSC) were bundled and integrated. This understanding implies the identification and
description of the implemented management model, and the main frameworks that
support the model and the practical procedures. Thus, this study is basically a descriptive
case study and intends to investigate and determine a best practice (Ryan, Scapens, &
Theobold, 2002).
Research has followed the main research steps/stages delineated by Ryan et al.
(2002) and Yin (2009) to conduct a case study. First, a research design was developed,
which is the logic that links the data to be collected (and the conclusion to be drawn) to
the initial questions of the study (Yin, 2009, p. 24). The collection of evidence (second
stage) comprised interviews with collaborators of the organisation and collaborators of
the environmental organisations (basically, EU and MSSL), and also analysis of data
and written documentation (among others, annual financial reports, annual activity
plans and budgets, strategic plan, CAF, quality manual, intranet newsletters, BSC fra-
mework, EFQM documentation). The research took place between January 2010 and
February 2012, and comprised three phases. The first phase, regarding the pilot case
study, spanned from January to May 2010 and comprised 24 interviews, lasting 34
hours.
Then, two research questions were posed: (i) how did TQM contribute to organis-
ational change in the organisation? and (ii) how were TQM tools and BSC duly integrated
into the new management model? The interviewees were mainly top managers and tech-
nicians of IGFSS, in particular the head of the board support (BS) department, who led the
change process, and her staff. The second phase, which started in October 2010 and fin-
ished in April 2011, sought to obtain confirmatory evidence from the organisation and
from key people outside it. Thus, the BS department head, former members of the
 Total Quality Management 769

board of directors (BD), the former minister of MSSL and collaborators of EU were inter-
viewed. Specific questions concerning the environmental pressures and the characteristics
of the change process were posed. Eleven interviews were conducted, lasting 14 hours and
40 minutes. Finally, during the third phase (September 2011 February 2012), questions
concerning the bundling of TQM and BSC were posed and doubts clarified. Members
of the BD and BS department, and new top managers were interviewed. Twelve interviews
totaling 14 hours and 40 minutes were conducted.
Globally, 47 interviews were conducted, lasting 63 hours and 20 minutes. About 80%
of interviews were tape-recorded and transcribed. Interviews were triangulated with notes
taken during and after the interviews. The interviews were semi-structured, and open-
ended discussion was usually carried out. Previous and direct questions were included
in a guide but non-direct questions were sometimes posed to develop a specific reasoning.
Evidence was assessed before being analysed, following Yins (2009) recommendation.
Several informal and telephone contacts also took place to specify issues and to clear
up doubts.

4. The empirical study

4.1. The implementation of the frameworks
A deep organisational change occurred in IGFSS since the early 2000s. Mainly after 2003/
2004, an MBO process, CAF, TQM (quality management programme) and a BSC, were
implemented, among others. Later, these management tools and frameworks were devel-
oped and integrated, and allowed the organisation to successfully respond to regulatory
demands. The integration of the frameworks facilitated the development of a three-year
strategic plan.
Figure 1 presents a timeline diagram where the evolution of the process of implemen-
tation of the several management control frameworks and other important events can be
highlighted.
Like most public institutes in the 1980s and 1990s in Portugal, IGFSS used, as a
support management mode, the traditional PA. This mode was orientated to the compli-
ance of legislation, a commitment to budget and a bureaucracy policy (Osborne, 2006).
There was no concern about efficiency, outcomes or concept of clients/citizens. Infor-
mation was sometimes missing and, when existing, was available too late for decision-
making.

Figure 1. Change process and evolution of management control systems.

770 L. Pimentel and M.J. Major

In the 1990s the Portuguese government launched a global PA reform (PAR). The
environment was favourable to the introduction of reforms in public services in the
2000s, due to the growing criticism addressed to the mismanagement of public resources.
These reforms were a challenge to government agencies, and some ministries launched a
quality management programme, based on CAF and TQM.
In 2003/2004, in IGFSS, an MBO process was adopted. The framework was mainly
oriented to results, basically financial but also some non-financial. At the same time,
SIADAP (sistema integrado de avaliacao do desempenho da administracao publica
performance appraisal system for PA) was implemented. SIADAP was compulsory by
law (meaning complying with regulatory powers), and in 2008 it evolved into QUAR
(quadro de avaliacao e responsabilizacao scorecard for assessment and accountability).
In 2005, a new BD was appointed. A compulsory compromise to the ministry (initially
by a mission charter and from 2008 onwards by a management contract) implied the
development, at all organisation levels, of a culture of results, considered as the pillar
of the management system that the BD intended to implement. The objectives/indicators
(lead and lag) defined can be divided into five groups: (i) quantitative financial indicators;
(ii) quantitative operational indicators at the level of debt collection and real estate man-
agement; (iii) implementation of an intra-communication plan and management control
frameworks; (iv) satisfaction questionnaires and (v) quality awards. Sequentially, a BSC
was implemented, as a supporting tool of the activities plan in 2006, and, in 2007, as a
framework for strategic management (strategy maps were produced).
A change process was launched, implying significant behavioural and cultural
changes in the organisation. To help in the creation of a new performance manage-
ment culture, seminars and workshops took place involving all collaborators, particu-
larly top and middle managers. This new management model implied a behavioural
and organisational change. An example of the change process concerns the relation-
ship with clients/customers. The client/debtor relation came under a strong pressure
to set right the debts, the inherent collector indicator being a key performance indi-
cator. IGFSS was much concerned with the relationship with clients. This did not
happen in the past.
Since 2006, and following the compromise of the BD with quality management and
quality awards, EFQM BEM was implemented and top EFQM awards were attributed
to the organisation, first the committed to excellence, in 2006, and the 5 star recognized
for excellence, in 2009 and 2011 (with a higher score). Other quality management awards
based on TQM were also attributed. The process evolved simultaneously with the ISO
9001 certification process. Still in 2006, BSC appeared as a support to the operational
plan for 2007. The main goal was the alignment with the time cycle of budget and plan-
ning. Moreover, financial and operational results and key indicators show a very positive
evolution. A member of BD synthesised this view in 2008:
During the 2000s, a strong change has occurred in the organisation. Between 2000 and 2004
IGFSS was mainly a public management Institute just like all the other ones. It presented an
activity plan at the beginning of the year and a report at the end of the year, informing basi-
cally about big projects . . . From 2004, the process of PAR gave rise to an external change
which facilitated internal needs to begin measuring efficiency, effectiveness and resources
optimization (September 2008).
A department manager concludes:
What happened was a radical cultural change. Today, the process is rooted in the organisation
(March 2010).
 Total Quality Management 771

This change process concerns the way IGFSS is promoting a culture of orientation to
results and outcomes, associated with customer satisfaction (in 2012, 82% of clients/citi-
zens on average are satisfied, versus 75% in 2008, and 64% in 2006), collaborators satis-
faction (in 2012, 77% of collaborators are satisfied, versus 74% in 2008, and 69% in 2006)
or quality CAF assessment (84.4 points in 2008 scale 0 100 points the last year of
audit assessment). Significant financial results were obtained (583 million euros were col-
lected from debtors in 2012, more than 60%, comparing with 2008, and 10 times more than
the collection in 2004). Furthermore, the organisation improved significantly the use of
management frameworks and the strategic alignment. All the frameworks were integrated
and bundled, duly visualised in the strategic plan for 2010 2012.

4.2. Description of the management model in IGFSS

Figure 2 shows the management model of IGFSS.
As can be seen, the model was deeply influenced by external pressures from the
environment. PAR was a fashion public philosophy in the 1990s, in Portugal. This explains
the ministries and government agencies willingness to changes in management. In 1993,
guidelines and principles from the Al Gore report (Government that works better and
costs less) and from the book Reinventing Government, by David Osborne and Ted
Gaebler, were disseminated at the global level, and Portugal followed the trend.
Moreover, the Organisation for Economic Co-operation and Development approved,
in 1986, a report called Administration as a service, the public as client, aiming to
improve the relations between the public and the administration. Finally, important gui-
dance came from the Lisbon Strategy (2000), which intended to deal with low productivity
and stagnation of economic growth in the EU comparing with the USA.
Furthermore, CAF was launched in Portugal as a challenge to government agencies.
CAF was inspired by EFQM BEM, and was created by the innovative public services
group (IPSG) in Europe, in 2000. To give technical support, the European Commission,
the European Institute for PA (EIPA), EFQM and the Speyer Academy (Germany) were
also represented in IPSG. CAF introduced the TQM principles in the government agencies
in Portugal. The MSSL launched a quality programme directed to government agencies
under its supervision, following CAF guidelines. CAF was one of the triggers that
IGFSS (through the BS department head, with full sponsorship of the BD) adopted to
implement a deep organisational change since 2004.
Another trigger for the change process was the MBO system, launched in 2003/2004.
At the organisational structure, two important actions occurred. First, the BS department
was created, and became accountable for the management control model (including BSC
and the strategic plan), and for the quality management programme, which was based on
TQM and the internal communication plan. Crucial was also the winning and motivating
profile of the head of the BS department. Second, a deep change occurred at the level of the
collection of debs to the social security system. Decentralised BUs all over the country
were empowered and became the strongest functional departments of the organisation,
directed to customer satisfaction, continuous improvement and financial results. All col-
laborators of IGFSS were also involved.
The management model is directed to organisational change (see Figure 2) and is
based on the production of data that allows the performance measurement of the organis-
ation, through compulsory frameworks (SIADAP/QUAR for the organisation as a whole,
SIADAP for the managers and for the collaborators, and the management contract), the
three-year strategic plan and the control and decision-making process. Supporting the
772 L. Pimentel and M.J. Major

Figure 2. The new management model.

main structure of the model, a quality management programme, strongly based on TQM,
was implemented (pillar 1). A performance management programme based on BSC (pillar
2) was also implemented. Both pillars are fully aligned and the quality management objec-
tives and indicators are visualised in the BSC strategic maps and in scorecards, as well as
in SIADAP and in the annual activities plans/reports.
Commenting on these developments, a top manager pointed out:
Quality management and the implementation of a culture of quality based on international
standards of quality, namely TQM, contributed to a strategy of external image and visibility
 Total Quality Management 773

but, above all, introduced the concept of better services to clients as citizens and the involve-
ment of all collaborators with the ideal of public service. People are the success key of the
organisation and they must be fully aligned with the strategy and the goals of IGFSS (Novem-
ber 2011).
Strategy maps are implemented at the three levels of the organisational structure: (i) cor-
porate level, comprehending the global key indicators and outcomes; (ii) processes
(including BUs) level and (iii) services level, plus the individual collaborators objectives.
Thus, individual collaborators are assessed and can verify the way they influence the
global performance of the organisation.
The BS department head made the following comment:
The new management model is based on the BSC allowing the linkage between strategy man-
agement, definition and control of objectives and the assessment of organisational perform-
ance. Moreover, the strategy, the vision and the mission are clarified pointing at quality
management. Therefore, quality management indicators can be permanently monitored and
TQM is clearly visualized. Supporting the model, the BD was a strong sponsor of the
project (October 2010).

5. Discussion and conclusions

Answering the research questions previously posed, evidence shows that the quality man-
agement programme (TQM) contributed to organisational change in the organisation. The
principles of quality management were crucial to the assumption of the need to change that
pervaded the organisation. From a global perspective, management control innovations
were implemented in IGFSS, the field site of the research. The new management model
was aligned with organisational and cultural change, where quality management plays a
significant role, directed to customer satisfaction and continuous improvement (Dahlgaard
& Dahlgaard-Park, 2006; Rad, 2006).
On the other hand, findings indicate that TQM strategy was implemented at the levels
of employees initiatives and training, and collective involvement commitment of top
management to top quality (Hackman & Wageman, 1995). But these perspectives must
also be translated into performance measures, mainly non-financial ones (Kanji, 1998b;
Modell, 2009). There is evidence of it in IGFSS, where the promoted initiatives were per-
manently measured. EFQM BEM and EFQM guidelines were also integrated into the daily
activity of the field site, and translated into high awards to the organisation, due to the
action of people, partnership-teams, work processes, service products and leadership
(Dahlgaard et al., 2011; Dror, 2008; see also Dahlgaard et al., 2013; Lawrie, 2004;
Modell et al., 2007; Oakland, 2011; Pesic & Dahlgaard, 2013, who adds action on custo-
mers, commitment, culture and communication). Thus, one of the contributions of this
paper is the confirmation of quality management as a key factor to emphasise organis-
ational and cultural change in organisations.
Regarding the second research question, findings indicate that quality management
tools were completed and duly integrated into the BSC, as well as into the strategic
plan and, globally, into the new management model (Hafeez et al., 2006; Kanji, 1998a;
Modell, 2009). Considering the existing small number of case studies regarding scientific
literature on the successful integration of BSC and quality management tools, the present
one helps to close this gap and to gain better understanding. Furthermore, this integration
is visualised in a government agency (McAdam & Saulters, 2000) where very few prac-
tical situations have been found. Likewise, findings indicate that, beyond non-financial
performance at the levels of customers satisfaction, collaborators satisfaction, or
774 L. Pimentel and M.J. Major

quality indexes and awards, the financial performance also increased and developed more
advantageously whenever IGFSS implemented TQM practices and guidelines (Erikson &
Hansson, 2003). These are the crucial contributions of the paper, both for academics and
practitioners. Moreover, the successful integration of frameworks also encompassed the
strategic plan and the visualisation of quality management indicators at the different
levels (from corporate to individual) of BSC.

Note
1. Social Security Financial Management Institute.

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