CELEBRATING -
age. HabiEs
i QUALITY:To All AT&T People:
hen we adopted the
Baldrige Award
criteria for AT&T's
own internal awards program, we
did so because these rigorous
tests of our commitment to
customer satisfaction were the
best available. They still are
Winning the Baldrige Awards
in 1992 demonstrates that
AT&T can compete with the best
—and win! The people of both
winning businesses are, and
should be, proud of their
And, all AT&T
people take pride in this,
accomplishment
recognition. Congratulations!
As we look ahead, we should
all be cognizant of the fact that
with the joy of winning comes
the rising expectation that all of
us in AT&T will treat our
respective customers in
“Baldrige Style.” There is a “halo”
effect that advantages us all in
the marketplace — but only so
long as we earn it, and earn it
and earn it......
Hook forward to the day
when all of AT&T qualifies as a
Baldrige winner. | am convinced
we can.
RE. Allen,
.
Quality was Malcolm
Baldrige’s obsession. The
| US. Secretary of Commerce
from 1981 until his death in
1987, Baldrige urged
American manufacturers
and service companies to
ee es ae
wc ages orig
oe eee
Suey ee
Serie eee
Sao cee
cro ae al
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| win, a company must have a world-class system for
| managing its processes and its people. This system |
should ensure continuous improvement in products or |
services, and provide a way of responding to and satis |
{ying customers’ needs.
“The standards set by the Baldrige judges are strict:On average, only about half
the maximum number of
awards are granted annu-
ally, Before 1992, only a
dozen businesses had
received Baldrige Awards,
LDRIGE
that AT&T had been honored in both the manufactur-
Ing and service categories, Commerce Secretary
Barbara Hackman Franklin offered congratulations to
the company and, especially, its employees. Thetr
efforts, she said, “are clearly proof that there's a
renewed devotion to excellence, detail and good old-
fashioned hard work in this country. have never been,
prouder or more optimistic about the future that les
ahead for American industry.”
‘SPANNING THE QUALITY SPECTRUM
AT&T Transmission Systems, one of the com
| pany’s oldest businesses, was honored as a manufac-
turer. Three-year-old Universal Card Services, one ofits
newest enterprises, was recognized in the services div-
sion. Aptly, these two businesses represent industry,
| the backbone of the nation's economy until now, and
services, which increasingly are coming to define the
Information economy ofthe 2st century
tn 188 ATT Chama Bob Alen mnuneed the ga
cf making the company “the best inthe word at deen |
the bees craton techno" The company’s To |
‘Quality Approach, which is modeled on the same criteria for
excellence used in the Baldrige competition, puts the cus-
te fs. The bes poland eves, eer, come
trom the best worktore which means that sie ATE,
employes have more authority and more rsoures to
cone them to fon and sats customers. This theme
Caled “enpowerent ds the st 0 exp how ATT
achieved the distinction of winning wo Baldrige Award,
Eacellence at ATT i by no means iited othe
| two business units honored with these awards. The com-
pany set an internal record this year when five business
Units qualified to receive the Chairman's Quality Award
(CQN)in the Achievement category, seven units received
Improvement Awards and seven more were recognized
for substantial progress. Patterned on the Baldrige
Award, the CQA recognizes tht world-class quality can
be found throughout the company.
Indeed, ATAT pioneered modern methods of mea-
suring and improving industrial quality. The most
famous names in quality improvement, from Walter
Shewhart to W. Edwards Deming and Joseph M. Juran,
have been AT&T employees, This year alone, the com-
pany received scores of maor national quality awards,
in addition to the Baldrige.
So the story of quality at ATT is and always has
ben the story ofits employees—the story of a process of,
constant change and improvement. Two Baldrige Awards.
are significant milestones in this process, but they aren’
the finish line. By the time excellence is achieved, cus
tomers are already demanding a higher level of perfor
‘mance. To meet that challenge, ATAT aims not merely to
satit ts customers, butt delight them. And, as you wll
sein these pages, ATAT i succeeding
Poor
ontoTBU INA
NUTSHELL |¢;
International
Division:
Formed: 1989
(Was part of Western
Electric and Bell Labs)
Employees:
12,
Domestic: 000
International: 3,000
Greg Hughes and | |
Lou Monteforte | |
—Ed Domenech,
Merrimack ValleyCompany, AT&T's Transmission
Systems Business Unit (TBU) has
hhad a long and distinguished history develop-
W: its roots in the Western Electric | I
ing and manufacturing the equipment that
‘makes modern telecommunications possible.
TBU was formally created in 1989 as one
ofthe six business units that comprise AT&T
Network Systems, AT&T's largest manulac
turing group and the leading worldwide sup-
plier of network telecommunications equip
tment, Its quality efforts, however, go back
| years before the breakup of the Bell System.
All changes since then — for AT&T and the
‘now-independent Regional Bell Operating
| Companies (RBOCS) — hi
focus and_ strengthen TBU's commitment to
continuous quality improvement.
THE ENEM
tleasta hal
dozen times
where in
America, a
buried AT&T cable is
accidentally severed.
The culprit is usually
backhoe operated
bya power company
or publicsworks
department or con-
struction company’
The engineers
responsible for main
taining AT&T's net-
work, therefore,
\whimsically call all
such cable cuts
backhoe attenua
tion” (an engineer's
word meaning “to
weaken"). And until
1992, cuts could
spell disaster, ike
the one in November
only served to
in six years, the unit has achieved a 10
fold improvement in product quality; in the
| last four years, the unit has cut in half the
time it takes to get product to market.
reduced inventory by 40 percent and had
‘more than $375 milion
n cost savings; and in
the last two years, it reduced the number of
product returns by 50 percent.
“Our people gave us these results” says
TBU President Greg Hughes. “Ive seen them
in action, I have only thanks and admiration
for their hard work in helping TBU contin:
ously improve its ability to serve customers.”
From the start, TBU was focused on fine
tuning its efforts to keep customers satstied.
Then, TBU's customers were largely the
RBOCS and ATAT itsel. Now, TBU has cus-
tomers around the world: local exchange and
BACKHOE ATTENUATION
1988 that knocked
‘out communications
between New York
and Washington for
Ghours.
ATAT's FASTAR
automatic restora
tion system has
made such outages a
thing ofthe past.
‘TBU plays a key role
In FASTAR.
The unit's DACS
11-2000 digital acess
and cross-connect
system, which ord
nary connects high
capacity circuits at
Junction points along
acable route, can
create a detour
around a cable auto-
matically. The sys
tem’s software capa:
interexchange carriers; private network
providers; state governments, the federal
government and government-owned tele-
phone companies throughout the world
competitive access providers; cable televe
sion companies and cellular service
providers. But TBU’s focus on quality and
customer satstaction hasnt wavered.
TBU's products are manufactured at the
Merrimack Valley and Oklahoma City Works.
The products include: |
Subseriber Loop Carter (SLC) Systems, |
the central connection points between a cus
tomer’ telephone and the local telephone
company,
Digital Access and Cross-Connect
Systems (DACS), switches that automatically
connect tra
smission channels to set up spe-
bility allows FASTAR
torestore 100 DS3
ircuits—more than | Hattiesburg
67,000 voice lines— | and New Orleans,
in five minutes Traffic was restored
DDACS'perfor- | in five minutes. Then
‘mance was proved | alocal phone com:
recently in two major | pany crew severed a
cable interruptions. | cable between
Inthe first instance, | Flagstaff, Ariz, and
bolt of lightning as Vegas, Nev. FAS
stucka fiberoptic | TARswitched to
cable near Picayune, | alternate routes
Miss., knocking out | in less than three
service between minutesial service circuits
Digital Multiplexers (DDM), the equip-
ment that combines telephone signals for
high-speed, fiber-optic transmission; and
Lightwave Digtal Transmission Systems
(FT-2000 and FT Series G), high capacity
fiber-optic communications systems.
In addition, within the last several years,
‘TBU has established joint ventures in China,
India and the Commonwealth of Independent
States (lormerly Russia) to support its grov:
ing international presence. And TBU has
‘employees in Spain, the United Kingdom,
Ireland and the Nethert
The key to TBU's success has been
“empowerment” — giving workers the informa-
tion and access they need to do their jobs, and
the authority and responsibilty to take imme-
In May 1991, a group
of secretaries at
Merrimack Valley
saw a potential
problem and
decided to do some-
thing about it.
What Carole
Sarcione, Ellen
Scioleti, Sonia
Tatarka and Anne
Wiggin saw was that
TBU's international
business was increas
ing rapidly. By itsel,
that wasn't the prob-
lem, but the lack of
Inform
business protocol
and customs avail-
able to TBU execu
tives, sales represen- | looked at what infor.
tatives and product | mation was currently
available and began
toiillin the gaps.
The result of|
their efforts isthe
Intern
Resource Center now
located inthe library
at Merrimack Valley
Today, the Resource
Center has profiles
‘on nearly 30 coun.
tries, as wel as travel
guides, video and
audio language tapes
and other reference
materials, The team
And help they
did. They formed the
POM! International
Customs Team,
which surveyed
potential users to see
‘what kin of informa-
tion was needed
about what coun-
tries. Then they
managers who were
pursuing the interna
tional business was.
ATT Is
expanding globally
and we felt we could
really lse alot of
business if people
here don't know the
‘customs overseas,”
Sarcione says. "We
didn’t want that to
happen, and we
thought we could
help”
late action to meet the unit's quality goals
Part ofthe success in empowerment is a
result of the day-to-day partnership that has
been forged between management and the
unions representing employees at TBU's fa
tories, The Quality of Work Life (QWL) pro
gram at Merrimack Valley illustrates this
partnership, as does the effort Jack
“McKinnon, Transmission Systems vice pres
dent, has made to spend quality time—in the
best sense—with union and management
employees,
“lack has always
looked on us not as
labor or management,
but as coworkers,” |
says Joe Belanger,
president of CWA Local
hasalsoidenti- | |
fied 325 people
who speak
another lan
guage and are
willing to inter:
pret or trans:
late.
Pe
the best result
— ofallis
expressed by
Sarcione when she
observes: “My think:
ing has changed.
‘When I see a prob-
Jem, think, T see a
good quality story
here; this can be
resolved.’ Whereas
used to think, This is
problem; [can't do
anything about it
In all, more than
$000 TBU employees
currently serve on
‘over 860 quality
teams. The number is
‘rowing. in part as
workers like Sarcione
suggest new teams
be formed to resolve
new challenges. "it
really has made a big
difference here” she
says, ‘and I see other
people thinking this
way as wel,
Bonnie B, Small
Quality Award
188, 989, 1990
1365 at the Merrimack Valley Works.“ like
to maintain that relationship. We've gained
trust in each other
learned the importance of our custom
Whether they're in the US. or hallway around
the world, And that's a lesson worth learn
ing”
and as a team have
At the Merrimack Valley Works, one of
TBU’s most ambitious goals is to improve
hardware quality and reliability to the point
that, by the end of 1995, only one in 10,000
circuit packs is returned,
jestones in Quality / AT&T Transmission Systems
AT&T Chairman's ATT Network 09000
Quality Award Systems Vision Registration”
Io, 1992 Award 1991, 1992 1992‘Any time a customer sends a produ
back, for whatever reason, it's our fault.” says
Ed Crane, test strategy manager and leader of
the group that designed the 1-in-10,000 mea
surement system three years ago, when the
return rate was 120 in 10,000. We accept all
responsibilty for the problem and look for
‘ways to prevent it from happening again
TTBU has launched the assault on defects
6 al fronts. Bell Labs product designers and
factory engineers review all aspects of prod
uct design, manufacturing processes, compo-
nents and software to
resolve quality Issues
and to get ahead of
problems
they're built into a
product.
he goal of TBU's
Achieving
Product
Excellence (APEX)
teams is to develop
products faster
‘while improving the
processes used to
take those products
from concept to the
marketplace. Bell
Labs product devel
‘pers are examining
every part of the
product develop.
‘ment and manu
turing process, with
Massachusetts
Quality Award 1982
Customer Supplier
Quality Program 1992,
Certification by Bellcore
Ed Domenech, a production associate
fon a team working on the 14n-10,000 objec-
tive, notes that the team found 42 defects in
the month its study began. Within five
‘months, the number had plunged to two.
Now everybody wants to be on the team,”
Domenech says. “They know that quality is
important to the company. Management
takes quality serlously—and we can make
changes”
smployees are also monitoring
in two dozen customer lo
to see how the products perform in “real
time,” and to react quickly if a problem
AL TBU’s Oklahoma City Works, workers
use an approach called Total Quality C
oF TQC, to solve problems with a stream.
tions
The TBU/Bell Labs Connection
and Project
“Management. Teams
include subject mat
ter experts that
cross multiple prod:
ucts and functions
within the business
Over the lat
four years, APEX
teams have been
responsible for
reducing by more
than 50 percent the
time takes to
develop and launch
new transmission
an eye toward
improving every
step inthe process.
Each APEX
team represents a
subprocess within
the total Product
Realization Process
(PRP), such as Front
End Process
Requirements and
Architecture
Software, Integrated
Circuits, Circuit
Packs, Equipment,
systems
Veriiation,
Product Delivery
system,
Malcom Baldrige
National Quality
Award 1992
lined, team-based management structure. In
three years, more than 120 teams have ident
fied nearly 4000 problems, from inefficient
work processes to product errors, and cor
rected nearly 3:50 of then
TQC is not a program, i's a process,
says Pete Gannon, Manufacturing vice pres:
dent of the Oklahoma City Works. “it must be
implemented slowly, and allowed to evolve
‘over several years, While we are only three
years into TQC, the ideas it has spurred have
improved our systems and made us more
competitive
For example, Carlene Coyle, a produc
tion checker, can recall when correcting a
manufacturing error could be delayed
engineer responsible for a cir
cuit pack couldn't be located quickly. “We
brought in our TQC team and invited the
engineer to sit in and work with us,” she says
“Before, it sometimes seemed like you were
lost out there. Now you know how to get an
answer—and a solution.
The result: The Quality Index at the
Oklahoma City Works through 1992 is four
times better than standard customer expec
tations.
Because qualty is such a priority, great
emphasis is placed on early prevention,” says
Pete Gannon. “If a process isn't operating
within quality guidelines, it's stopped until
corrective ation Is taken.”
“Using Baldrige guidelines, we've
learned a lot about what our customers want
because the
and expect from us,” says Lou Monteforte,
TBU quality manager. “And we have no doubt
that we'll learn more as we try to give them
the excellent products and services they
Carmen Sainz, far
eft, works on cr
cult board assembly
at Merrimack
Valley; Maddie
Cartier operates a
fork lift in a store-
‘oom there; and
Janet Taylor,
Joseph Cherestal
and Vie Meola are
inthe Customer
Advocate Service
test lab,QUALITY
delight in services
,
Gp SU Sips 00
¢ IO “Wife iat
tf : WS ‘ €
Sein =A
UWos
—Robletre they besa working or ATAT
Biisiefend Sane
acs tothe movi The nme othe
eure tay en spt rep hing abt the
this tte toward qual scaled
“Daigt Makes the Dirence™ elting
rather hn jt sting. custome has
teen Fal Kas gal cee ba prs
Sen ef US ele ts uch nach 180
‘Soy saying yur csomers nes
nat enough he tet syeYoue
to dag your service fom the rod
the oe tatty Wow our
Zod cera UCS bas et sl pat
biter mute end str matte
otnohum cel cards AT Universal Card
Serves ceed 2040 tpn eal x
DLL
Ed Richardson is an
ATT Universal
Card Services assoc
ate, nota private
investigator, but
when a cardholder
with Alzheimer's dis-
ease got lost,
its very first day. n less than three years, it
hhas become No. 2 among the 6,000 compet:
tors ints industry, with more than 10 milion
accounts and 15 million cardholders.
Modeling the unit's management and opera
tions on the Baldrige Award criteria, Kahn's
announced goal was to win the Baldrige
Award in six years — a goal UCS met three
years ahead of schedule
‘The AT&T Universal Card, a combina:
tion credit card and telephone calling card
accepted by the 10 million merchants in the
Visa and MasterCard systems, capitalizes on
ATA’s proud name, but that doesnt explain
Its growth. Monthly
surveys of credit-card
holders, including
holders of cards issued
CU
Richardson turned
‘Sam Spade and
tracked her down,
‘The woman had
disappeared in a
strange city while on
vacation, Local
police couldnt find
her. Richardson
recelved her hus
by UCS's competitors, consistently rank the
AT&T Universal Card on top in each of eight
categories of customer satisfaction,
‘The crucial reason: UCS's associates are
‘empowered to make on-the-spot decisions to
delight their customers. Their success is
‘measured in the success of the Universal
Card — and in the volume of compliments
UCS associates receive
A family's vacation in New York City
took a turn toward disaster when the bag
containing their airline tickets, cash, credit
cards and tickets to a Yankees game was
stolen, The customer called UCS to arrange
for a new card, but
Associate Tom
Swanson dida't stop |
with closing the cus-
such calls to come to
him, even if he was
| oftduty.
| Five days later
| the call came, and
| the merchant verted
that the woman
seemed confused.
Instantly Richardson,
| conferenced the call
tothe woman's hus-
band and the local
police. A medical
team was dis-
band’s call to UCS
asking whether she
hhadmade any | patched, and he —
recent pur- and UCS — earned
chases.She | the gratitude ofa dis-
hadn't, which is | traught family
where the story Later the
would have ended | woman's husband
for most credit
card companies.
But not for UCS,
After verifying
the man’s story —to
make sure the
‘woman sulfered
from Alzheimer’s,
and wasn'ta victim
‘of domestic violence
hiding for good res
son—Richardson | team. twas ust luck
putablockonthe | [took that first call
‘woman's card, soit | We could have got
shetried touseit | ten the same result
the merchant would | from anyone in the
have tocall UCS.He | company.”
ed for a
called to thank
Richardson for his
help. "He was quite
emotional —he was
crying, actully,”
Richardson recalls
He gave AT&T
Universal Card total
credit for finding his
wile, and I give total,
credit tothe entiretomer’s account and dispatching a replace-
‘ment card for overnight delivery. He called
the customer's hotel, authorizing the family’s
stay that night; the airline, to replace the
stolen tickets; and, most unexpectedly
Yankee Stadium. The customer didn't report
‘who won the game — but he did report that
ATA had won his family’s deep gratitude.
When an ATM machine in Paris gob
bled up a customer’s Universal Card one
Saturday afternoon, Customer- Relations
Associate Elizabeth Morrison asked the
“American Embassy to take the man to one of
the few banks open atthe time and vouch for
him so he could get emergency cash.
WA cardholder in Washington, D.C
spent a day and a half phoning for tickets to
‘popular rock concert, only to have her
“THE PARTNERSHIP
{twas a nightmare
for users ofthe
ATAT Universal
Card — which made
ita nightmare for
the company.
Ona key back-
toschool shopping
Saturday in
September,
‘one of the
‘companies
hired by UCS
to process
merchants
requests for
authoriza
tion sufiered|
computer
failure. For
four hours
technicians
struggled to
restore the
system,
During that time, the
transactions of
35,000 ATT
Universal Card hold-
ers were denied
Although the
failure wasn't UCS's
fault, UC customer
Herculean weekend,
authorizing charges
‘manually. The unit's
senior managers
convened on Sunday
and drafted a letter
ociates began a
ATAT Universal Card declined because of a
system authorization problem. When she
called Larry Banks to complain,
member services associate began placing a
he card:
series of calls to the Washington ticket
nncy. When he finally got through, the
nt refused to take the authorization.
Saying, “Im not going to hang up until my
customer has tickets,” Banks finally got to
talk to a supervisor — and the cardholder
got to attend the concert
Giving its employees responsibility for
ensuring customer satisfaction — and the
authority to cut through red tape to achieve
that goal — is only part of UCS's strategy to
become a leader in an industry that long has
practiced “business as usual.”
The AT&T Universal Card also char
‘of apology signed by
President Paul Kahn.
By Wednesday
copies had been
mailed to each of the
25,000 cardholders
who had been incon.
venienced, apologiz
Ingand enclosing a
S10 service guaran
tee certificate. The
result was a flood of
i complimenting
UCSforits concern,
rather than eritiiz:
ingit for the lapse.
And because
partnership with ven
dors is one ofthe key
ements in providing
top-quality service,
the credit authoriza
tion company whose
system had failed
agreed to pay the
haltmilion dolla
cost ofthe ceri
cates.
‘We've set per:
formance standards
for our vendors and
virtually all have
signed on in partner:
ship with us” Kahn
says. “When vendors
aren't wiling to join
us in our quest for
quality, we drop
them.”
ey
Snes
foots?
eens
Cees
Peete et
Pros
much less interest than the industry average
— currently more than three percentage
points less. Customers who signed up in the
first, or charter, year are guaranteed no ser
vice fe fr life,
And when UCS discovered it was reject:
ng one in 10 creditworthy applicants
because of poor information from credit
bureaus, it pressured them to open their
records to consumer review and correction.
When UCS was launched the credit-reporting
dustry’s accuracy rate was a dismal 36 per-
cent. Now, less than three years later, i is up
to 98 percent, and rising.
IC UCS were a separate company, it
‘would be worth an estimated $2 billion, But
it has also excelled at its original purpose,
which was to buttress AT&T's core business‘of longedistance calling. In 1991 alone, UCS
cardmembers increased ATAT calling card
usage 40 percent
Every element of UCS's success, how
‘ever, ultimately can be traced to its people
“The best way to delight customers is to
delight the associates who work here,” says
Rob Davis, the unit's chief quality officer
‘uur commitment Is to be the best place to
work. UCS people treat our customers gor
‘geously —just as UCS people are treated
And UCS people agree. Customer
Associate Detrick Plerre says: “I do feel lke
were empowered. The
then a free hand to make the judgments we
need to make in order to help the card:
holder. You don’t have
shoulder at all
fe us training, and
» look over your
AT&T Universal Card Services:
Opened its 1 millionth account just 78
days after launch on March 26, 1990,
Drs No. 2 in the bankcard industry with
more than 10 million accounts and more
than 15 million cardholders,
D> Has lowered its variable intrest rate five
times (for a total of more than three per:
centage points), and currently is more than
three points below the industry average.
Prlnits first 30 months, averaged 10,000
new accounts a day, or more than 300,000
per month
D> Has led the industry in helping the
three major credit bureaus correct inaccu
rate consumer information reports; the
accuracy rate is now 98 percent, up from
36 percent when UCS began operations.
D> Has ranked No. 1 among credit card
companies in the Equitrends Customer
Satisfaction Survey two years in a row
D> Receives and a
son more than 30
agestions from its assock
ates than the banki
industry average
Associates Danny
Lee and Julie Eden,
left, and, below, the
Business Improve-
‘ment Team, Front
row, from lft, are
Greg Brueland,
Linda Swanson and
Jean Collins. Back
row, from left, are
Robert Hughes,
Mike Plummer,
Holly Harvey and
Greg Swindell
Or
TEs
eu
or)
rr)
Prd
American Marketing
Association
Edison Award:
Best New Product in
1990
National Association
of Suggestion
Systems:
Performance
Excellence Award
1991
Gold Eifie Award
Advertising
Campaign -1991
American Marketing
Association
COMPASS Award
AT&T Humat
Resources
Professionalism
Award - 1992
AT&T Chairman's
Gold Improvement
Quality Award - 1991,
199
AT&T Chairman's
Bronze Achievement
Quality Award - 1992
Malcolm Bald
National Quality
Award -1992What Is Empowerment?
How Does It Work?
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ims ato
ines there,
the cer aso
empowered is ass-
Cates to question
propeed prot
‘offerings if they
doubted the prod
ucts could be deliv
ered. Therehave |
been lots of instances
where associates
who were close to
the work,andwho |
knew that g
standards couldn't
bbe et, had the
power to intervene.”
Walton says
The whole idea,
she says, “i to estab-
lish accountability In
total quality man-
aged enterprise,
everyone is account
able to the process
—and to each
other.”
putting customers at the top of the tradi
tional structural pyramid, This wasn't just a
‘new organization chart. It crystallized a devo-
tion to excellence in products and services,
reflected in AT&T's Total Quality Approach,
which rests on six guiding principles
‘The customer comes frst
ualty happens through people
Il work is part of a process
‘m Suppliers are an integral part
‘of our business
Prevention is achieved
through planning
Quality improvement never ends
‘ATT is going tobe the finest company
In the world in the eyes of its customers,”
says Philip Scanlan, Corporate Qualty Office
I 1988 AT&T turned itself upside down,
A PROUD TRADITION
ATAT didn't invent quality, but its employ-
es did invent many ofthe fist and best
systems for ensuring quality in industrial
‘manufacturing. In an ironic historical twist,
‘many of AT&T's innovations were eagerly
‘embraced by Japan —and the Baldrige
‘Awards in part, a national recognition of
the need to restore tis tradition to the
United States. For AT&T to become the fist
US. corporation to win two Baldrige
Awards closes the quality circle.
‘Quality began at the Wester Electric
Ina “heat tent” at
Merrimack Valley
are Kenny Leung,
foreground, and Bill
Perkins, Tong So
‘and Don Dery.
AT&T's Total
tu
Eevice president,
goal unless we bulld a solid foundation on
But we can't achieve that
these six eritical principles.”
These principles aren't linear — the
accomplished before the second is begun —
but circular and mutually reinforcing. In pa
ticular, customer delight and employee
empowerment are where the circle closes. To
‘customers, AT&T i its peor
tomers, employees must have the resources
to provide the quality of product and le
ullls AT&T's promise to be “the
most helpful company
AT&T is a powerful brand name — more
powerful now than it has ever been. For
example, a consumer survey taken in 1984, at
the time of the Bell System break-up, found
that only four percent of Americans knew
service th
Company inthe early 1920s. Walter
Shewhart, the father of statistical quality
control, demonstrated that, whereas
Inspection only eliminated substandard
products statistical methods could be used
to increase the number of good products
produced, Today, the highest honor
bestowed by the American Society of
‘Quality Control isthe Shewhart Prize.
Continuous quality improvement was
‘emphasized by a onetime worker at
‘Western Electric’ famous Hawthorne
Works, Joseph M. Juan, who embarked on
a distinguished consulting career and was
subsequently awarded Japan's Second
AT&T provided longdistance telephone ser
vice. Today, surveys show that AT&T is one
of the halidozen most powerful brands inthe
overall US. marketplace
Through other surveys, three key
dimensions have emerged as critical to
enhancing AT&T's reputation, or brand pos
tion: providing the most helpful service, pro-
viding innovations that expand people's
capabilities, and being worthy of trust. What
the three add upto isthe overall quality goal
of the AT&T enterprise today: becoming th
‘most helpful company in th
tomers everywhere
nployee empowerment is critical to
reaching this goal. To this end, ATT is com
mitting tools and training, delegating
increased authority to
Order of the Sacred
‘Treasure, Quality by
design canbe traced to
‘George Levenbach at
Bell Laboratories and a
colleague inthe
"Netherlands inthe
190s an ts. Quality
by design's emphasis
‘on integrating final
quality ito every element of production has
‘become a virtual model in Japan —as well
as am ingpration forthe Barge Award
Those who think ATET wrote the book
on quality are ight: Bonnie Small was leader
ts people, and looking at new ways to reward
and recognize them for ther efforts. And the
People of AT&T, in turn, are using their new
resources and responsibilities to go beyond
customer satisfaction and into the realm of
customer delight,
‘One measure of our success will be
when AT&T employees can routinely say
they are able to delight our customers on a
Another mea
sure, of course, is customers who say our
people are the most helpful they've ever
encountered. Someday,” he concludes,
daily basis,” Scanlan sa}
“other companies will match our progress.
But by then we'll have moved on to even
higher levels of customer delight. The
process never ends,
‘ofa team that in 1958
published the
Western Electric
Statistical Quality
Control Handbook.
ATE has replaced
Western Electric in
itt, but the book,
considered the defin-
tive text init eld, is
stillin print and more than one milion
copies have been sol
The AT&T Quality Library in Berkeley
Heights, NL, has books on quality forsale
For mor information, call -$00432660.ee ATT has achieved exec
Wiesemets ei: ey
throutedt he company, tans
connt and este nad cues Hee
elie eras
Irn Sar afl, Texas, ney 1200
ltrnatnal Account Mangement Center
hobingcstomers i Englah an a oso
ote pages th eveything om st-
Selg to new sac to reacg tg
| putes he Cntr te Cine
inte summer ef 1, Kent akon,
in e qu i incitator of the Customer & Competitors
Team a the center, mas ead upon by the
| international Unit his ternal strategie
| busines partner — top develop anew
What Others See At AT&T a ened ATATS very succes
Special Country Pan, The Center was well
aoe ictal avare of ATT longdlstance rv promo-
Bases Unt Avan a tons, which olered dacounts on requ
cal othe same number overseas, The pr-
AT&T American “Top Award Telemarketing Service qulty
Transtech magazine mation are targeted at peopl in Ameria
T&T Bell Technological Research & Prot uy |v tong fay es abroad But he Sn
Laboratories Innovation Development Antonio people knew that what customers
ragazme really wanted were discounts to their native
———an 5 land, so they could talk to a numberof family
TAT Corporat National Medal ofthe President Bush ‘Community service be
members an ends tt one. The ATT
— —_____ plan gives an automatic 15 percent discount
ATT Corporate Fortune magaine Busnes despa a aed county
eae pee a his has just been fantastic,” Jackson
| Aaa Corporate Business Leadership National Wnonty _Communtyserice | gays, “This is one time the product was
SSS SS arr SE Dereon Comoe | designed around the ideas ofthe people talk-
AT&T Power Systems Shingo Prize for Utah State University Produt quality ing to customers. thnk what's most trill
Excellence in College of Business to people here is that they see some of their
rca aie uaty iS
__anactg __ ____ In Global Business Communications
AT&T Business Dest Overall: ext Data Communications Service qual Systems, which sell and services office tele-
Communications ——‘Techaologyinlong- maga eae bonateae ual feoial claire
Services Distance Caer
a" ia Calandra oversaw lawsuits brought against
the company by unhappy customers. "Not
ATaT Bisse ATAT ated Fistin unc Word Sericequty | a,