By Nicole Radziwill & Sonduren Fanarredha
For an organization to deliver high-quality products and services consistently, it must be able to create and sustain long-term value. An organization’s brand therefore consists not only of its name, but also its logo, its overall image and how it is perceived. “Brand equity” is the additional value a brand acquires because of its reputation or prestige in the marketplace. Brand equity takes time to build and, since it can have an impact on buying decisions over time, it is a significant part of an organization’s brand recognition and value. Losing this equity because of brand damage can also have far-reaching negative consequences.
As powerful as it can be, brand equity is also fragile. There are many forces that can threaten it, including:
- Industry environments that are more uncertain and competitive.
- Consumers that are increasingly empowered and have a stronger idea of what they want.
- Product families that are broader and more complex.
- More distribution and communication touchpoints.
- Complaints on social media spreading more widely and quickly.
Problems within an organization can be very costly, and the more quickly a potential problem or error can be anticipated and resolved, the less it will ultimately cost. This includes direct costs like warranty claims and recalls, as well as the long-term costs associated with lost business and damage to a company’s reputation. The key to avoiding these costs is to identify and respond to failures internally before they reach the customer.
Risk-based thinking and associated techniques can help you anticipate issues before they arise to reduce costs and preserve brand equity. By introducing techniques like Failure Mode Effects Analysis (FMEA) and other statistical methods of analysis into any process in your organization, you can bring groups of people together to share the information and lessons learned, which will protect your brand far into the future and promote continuous improvement.
In this new Intelex Insight Report, “Mitigating Risk with FMEA & Quality Management Software,” quality experts Nicole Radziwill and Sonduren Fanarredha show you how to preserve organizational knowledge and save both time and money by integrating FMEA capabilities into your quality management system software.