Quality in the Crisis

This applies during the crisis, when people are dependent on a functioning healthcare system and on the good quality of products that ensure our lives and survival. However, the promise of quality should also apply when the economy is on the upswing again and companies with good product and process quality have to assert themselves on the market. We may well remember how climate change dominated the headlines before this global crisis. We will once again be able to devote our full attention to the issue of climate protection – there is no shortage of challenges. In these times, our industrialized nation is truly at risk. And it is clearer to us today than ever before – our prosperity is largely based on our industry. Securing this prosperity is just as important a task as "climate protection". Because without a flourishing economy, we will neither be able to save the environment nor live comfortably.

In this sense, we need to combine economy and ecology, not separate them. This need arises from the third factor that needs to be taken into account: social concerns. Sustainable development requires that economic, ecological and social concerns are given equal consideration; accordingly, all three factors must be the subject of entrepreneurial action. Short-term decisions bring these three aspects into conflict. However, when viewed with foresight, they can develop positively and serve sustainability. This can be seen as an opportunity. We need to help shape not only ecological climate change, but also social and economic climate change. There are many ways in which we can support our country and create better framework conditions. This applies above all to politics. They still have to do their homework. But it is also our entrepreneurial responsibility to prepare Germany as a business location for this change.

In the face of "economic climate change", we need to focus on our strengths. A true "strength of our business location" is our demand for high quality. Made in Germany – innovation, reliability & quality – is still an expression of our competence in terms of "quality". This includes the technical quality of the products and flawless handling of all processes and services associated with the product. And the demand is growing. Today, new quality criteria are being added that must be proven not only within the company itself, but also in the supply chain. Environmental protection can no longer be an obstacle or a cost factor for a company. It is no longer "a problem", but part of the solution. These requirements also apply to the supply chain. No "supply chain law" has yet been passed, but in order to avoid competitive disadvantages, companies are already required to work sustainably. This includes assessing working conditions or the environmental compatibility of production processes in the supply chain. All of this, of course, in the service of our market, in the sense of "service excellence" for the customer. The consistent focus of our corporate strategy on comprehensive quality and both current and future customer satisfaction, right up to the claim of customer enthusiasm, leads to considerable competitive advantages. The aim here is to face up to the cut-throat competition on the market through consistent customer, process and employee orientation.

Quality is and remains the strength of German industry, supported by German SMEs. This makes Germany the benchmark and driving force for industry in Europe and the whole world. For a sustainable company, quality must not be a "compulsory exercise", but an important part of a corporate strategy with which to assert itself on the market and seek its competitive advantage. Quality is therefore an elementary component of corporate responsibility. Many companies are aware of this, some have some catching up to do. But they all have a need for quality – across the entire industrial market. And they all have the potential to optimize their processes in the digital world.

The question remains as to how we can further develop quality – how we can strengthen quality – how we can remain the benchmark and driving force in the world's markets. Other nations are hot on our heels. An economic power like China is now a cost leader and is eyeing "our" expertise – quality leadership. This must be secured, because it is simply in danger, also due to our own misconduct. But this is precisely where German industry has a real trump card.

In addition to our sense of quality, our self-image of providing a good service with a constant demand for improvement, another strength simply lies in our open society. We are driven by a culture of partnership and cooperation. Characterized by honest cooperation and successful in terms of the quality of our performance, of which we can be proud.

These are the success factors of the German SME sector. We have proven this in the past – the "German Mittelstand" is a model for success. And this is largely based on honest, trusting – simply partnership-based cooperation. In the supplier relationship, this results in a real market advantage. This leads to the realization that quality is teamwork. In the spirit of a corporate culture that comes closer to our human intention to work the way we want to.

But there is still room for development. In the automotive industry, there is often no open and honest communication on how to deal with failures. In today's world, this requires a corporate culture that is encouraging in the truest sense of the word, but also needs more courage. This is precisely where the key to optimization and improvement lies. This is where the added value of a positive failure culture stands in contrast to a possible contractual penalty for defects. Learning from mistakes means gaining knowledge. In addition, dealing openly with mistakes contributes to finding solutions and is also a prerequisite for trusting cooperation. However, for fear of reprisals, recognized problems are not addressed or a learning process is not initiated. There is great added value for all parties involved in working together as partners.

How can we make better use of this potential for our economy? What needs to be done?

• We must take our quality standards seriously. Resting on our great "Made in Germany" image is fatal. We need a positive failure culture, characterized by an open approach to mistakes, which will give us a real quality gain and a knowledge advantage.
• We can cooperate better and further develop the culture of working together as partners – with more openness and transparency. When companies in the supply chain work together as partners and cultivate a positive error culture, a synergy is created that benefits everyone involved.
• Our strength lies in our high quality standards – with further potential in the supply chain. Because there is strength in good cooperation – even across companies.
• In the digital age, we will develop new processes that make better use of this potential. All in the interests of quality – in terms of the finished product at the end of the supply chain.

Those who position themselves strategically in the digital age have completely new opportunities today. The development of modern collaboration between companies should not be ignored: Linear supply chains have long since become branched supply networks in which quality does not result from the sum of the quality contributions of individual suppliers, but from a network of the people involved. It is therefore important both to promote strong cooperation between companies in the supply network and to exploit further opportunities for digital quality and improvement management, as this is a significant competitive advantage for companies. This is precisely how we are strengthening our business location in the face of "economic climate change" and securing a strong role in the global economy.

Acting with quality in mind is a fundamental part of our corporate responsibility. Because we can turn an advantage in the present into a real trump card in the future. This creates space for a new quality, where all strands of action fit together and the companies in the supply chain work together as partners. A space for new processes that promote quality and service excellence.

The corona crisis is a major challenge that teaches us a lot about the vulnerability of our global systems and processes. However, it is also a challenge that will help us to move forward by using the experience we have gained from this extreme situation and to think critically about the sustainable use of resources, global warming, endless growth and the importance of partnership-based cooperation in the economy. These topics were a challenge for us even before Covid-19 – and will remain so. Quality will play a decisive role in successfully emerging from the shadow of this crisis and shaping the future of our business location in a sustainably positive way. We will only succeed in doing this by working together as a team.