Peter Kolesar

Vision, values, milestones: Paul O'Neill starts total quality at Alcoa

Abstract:
Shortly after becoming the Aluminum Company of America's (Alcoa) first outside chairman and CEO in a century, Paul O'Neill launched a comprehensive, corporation-wide total quality initiative as part of his strategy of refocusing the company on its core businesses and "reinventing" Alcoa. A description of the process by which O'Neill and the senior executives of the company educated themselves on quality management and then designed Alcoa's Vision, Values and Milestones, the constitution of the Alcoa Excellence Through Quality initiative, is presented. Alcoa's 5-year milestones, or specific measurable goals, include: 1. Establish interactive relationships with internal and external suppliers based on an understanding of real needs and performance to targets with evidence of continuous improvement. 2. Establish a team approach to problem solving and continuous improvement and a clear definition of accountability for each team and individual. 3. Achieve a 50% reduction in serious injury and lost work day incidence rates. 4. Average a 15% return on shareholders' equity, and not less than 10% in any year.

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