Traditional methods can not be the ideal measure for the effectiveness of your management system and its efforts to evolve, but it does thus provide some fairly hard facts on whether investors are seeing a return on their investment and how they are doing relative to previous time periods. Further to this Eriksson and Hansson(1997) note that not everybody agrees that TQM always brings positive financial performance as a result, notably Eskildon(1994) and in fact often the results turn out to be negative. It is important to keep an eye on both sets of performance evaluations, especially considering a study by Harari(1993) that is referenced by Eriksson and Hansson(1997) that notes several TQM programs are simply ineffective and fail to produce any positive financial results at all. It can be argued that while we have our foot on the TQM gas pedal, we could also keep an eye on traditional measures as at some point we may need to put our foot on the breaks.
Word count:200 words