The contribution of quality management to the UK economy
- Document type
- Corporate author(s)
- Centre for Economic and Business Research
- Chartered Management Institute
- Date of publication
- 26 June 2012
- Management & leadership: including strategy, public sector management, operations and production, Trends: economic, social and technology trends affecting business
- Business and management
- Material type
This research by CEBR for the Chartered Management Institute quantifies the extent of quality management’s contribution to organisations and the wider UK economy. As well as demonstrating the enormous contribution quality management already delivers, this research reveals its even greater potential for the UK economy. Findings include:
- In 2011, quality management practices contributed £90 billion to Gross Domestic Product (GDP), 6.0% of UK GDP and around £9billion to the Exchequer. If quality management programmes had been rolled out as fully as possible throughout the UK economy, then GDP could have been £52 billion higher in 2011 (a 3.4% increase) and contributed an additional £8.6 billion to the Exchequer.
- In terms of jobs, the report estimates that quality management programmes, as they were actually instituted in 2011, caused UK economy-wide employment to be 1.4 million higher than it would otherwise have been. It found that, if quality management programmes had been adopted as fully as possible across all sectors of the UK economy in 2011, it could have created an additional 455,000 jobs, a potential increase in UK employment of 1.57%.
- Organisations implementing quality management could expect an average Revenue Return on Investment (RoI) of 6:1,
i.e. for every £1 spent on a quality management programme, revenues can be increased by £6, and an average cost saving from quality management of 16:1, that is for every £1 spent on a quality management programme, costs were reduced by £16.
The research also comprised in-depth interviews with UK business leaders, of which 93% agreed that quality management is a key driver of business success and on average identified 4.8% cost savings due to quality management.
Related to Management & leadership: including strategy, public sector management, operations and production
Downloadable infographic summarising the results of a survey of UK managers about their priorities and challenges for 2018.…
This paper sets out what the Institute of Directors believes the government and other parties should prioritise at this preliminary…
Corporate governance reform: submission to the Department for Business, Energy and Industrial Strategy: submission from the CIPD and High Pay Centre
Downloadable response to a green paper on corporate governance
Destination of Business and Administrative Studies students after graduation. Analysis of Department for Education and HESA data
This report looks at the employment outcomes of students who graduated with a Business degree from UK University Business…
Related to Chartered Management Institute
This working paper examines the gender wage gap in France
This working paper looks at how strongly shocks to asset values affect labour supply, using Italian data
This briefing note provides evidence on the likely impact of changing the price of alcohol
This working paper studies optimal corrective taxation in the alcohol market