How quality adds billions to the UK's economy

Quality management practices contributed £90bn to the UK's economy in 2011 – that's six per cent of GDP.

It's the first time that we have been able to put a number on the economic contribution of quality management, thanks to a groundbreaking study commissioned by the CQI and the Chartered Management Institute.

The research, carried out in 2012 by the Centre for Economics and Business Research, looked at the contribution of quality management to the UK's economic output, jobs market and tax revenues. It also examined the benefits for individual organisations of investing in quality management.

The report reveals:

• Quality management practices contributed £90bn to the UK's economy in 2011 (6% of GDP), and could have contributed £52bn more (an increase of 3.4%) had they been rolled out as fully as possible throughout the economy.
• In terms of taxation, quality management practices contributed approximately £9.1bn to the Treasury – and could have contributed a further £8.6bn had they been used more widely.
• Employment was 1.4 million higher than it would have been without quality management programmes, and a further 455,000 jobs could have been created (a rise in employment of 1.57%) had they been more widely used.
• Organisations that implement quality management can expect to get £6 back in increased revenue, and savings of £16, for every £1 they spend.

The study received high-profile media coverage in The Times, The Daily Mirror, Investor Today, City A.M. and HR Review.

The report includes case studies from manufacturing, defence engineering, legal services and other sectors, showing how quality makes a difference on the ground.

It is based on desk research, in-depth interviews and short surveys with 120 UK business leaders, with the data collected then fed through a bespoke economic model.

Listen to PEX Network's interview with CQI CEO Simon Feary about the research here.