Ethiopian Quality Award Organization

A Beacon of Excellence Driving Ethiopia’s Industrial Transformation

Since its inception in 2008, the Ethiopian Quality Award (EQA) Organization, a collaborative effort of Addis Ababa University and Walta Media and Communications, has been a unique beacon for Ethiopian businesses striving for excellence. Unlike other awards, the EQA doesn’t just hand out trophies; it rigorously evaluates companies based on international quality standards. This unique approach spurs organisations to refine their leadership, customer focus, and internal operations, leading to improved resource management, streamlined processes, and a more competitive Ethiopian business landscape.

The EQA’s impact transcends individual companies. By establishing a national benchmark for quality, it sparks a collective drive for improvement. Furthermore, the EQA plays a pivotal role in fostering a culture of continuous learning, providing a platform for businesses to share best practices and elevate the overall discourse on quality within Ethiopia. The EQA is more than an award; it’s a powerful catalyst for Ethiopian business transformation and industrial competitiveness.

In 2008, Addis Ababa University and Walta Media and Communications established the Ethiopian Quality Award (EQA) Organisation. They aimed to create a national quality brand that recognises and rewards Ethiopian businesses adopting world-class quality systems.

“The Ethiopian Quality Award was first established to launch an initiative aimed at enhancing the country’s competitiveness on the global stage,” explained Tewodros Mebrat, CEO of EQA. “This effort focused on improving both service and production sectors. Additionally, the agency sought to learn from international experiences, such as the quality awards introduced by Edward Deming in Japan.”

The organisation held its inaugural national quality awards ceremony in 2009, honouring three enterprises for excellence: the Documents Authentication & Registration Office, MIDROC Gold Mine Plc, and Harar Brewery SC. In 2012, marking a significant milestone, EQA became a foundation, further solidifying its influence in the Ethiopian business landscape.

Over the past 16 years, the EQA has been pivotal in driving quality improvements across Ethiopia’s business landscape. “When organisations receive awards and recognition, it boosts their morale and introduces them to society as EQA certified,” said Tewodros.

During the assessment and inspection process, companies gain valuable insights by evaluating themselves against EQA’s seven detailed international quality criteria. These cover leadership, policies, resource management, and information usage.

“Efficient resource management is crucial for profitability, and we are actively raising awareness about its importance,” Tewodros emphasised. “Additionally, we are working to ensure transparency in organisations’ workflows and production processes.”

The EQA also encourages businesses to consider their economic, social, and environmental impact. “From an economic point of view, whether foreign currency has been brought to the country through foreign trade and for various reasons, whether it has been imported into the country (import substitution),” Tewodros explained. “In terms of social impact, organisations should evaluate whether they have supported the community and whether they have a by-product that harms the environment during the production of the product.”

After the competition, the EQA provides detailed feedback to participants, highlighting their strengths and weaknesses. “Based on this, organisations update their plans and procedures and work on them in their short, medium, and long-term plans,” said Tewodros. Quality is not something we do once and stop; it is a constant process of improvement.”

At the heart of the EQA’s approach is a steadfast commitment to fairness and transparency in the selection process for the Excellence Award.

“Our principle is that if a competition has a prize, it must be fair, equality must be guaranteed and it must be possible to be fair. Ensuring this is our main task,” Tewodros emphasised.

The organisation has established a robust evaluation system to uphold these principles. First, technical committees comprising academics and industry experts are responsible for reviewing the submitted documents and assessing the candidates.

“They will be separated into two when reviewing the candidate’s documents. These committees will not re-evaluate the organisation they have reviewed once, because of the relationship between them, so that there is no imbalance,” Tewodros explained.

The technical committees also confirm in writing that they have no conflicts of interest with the organisations they are evaluating.

After the technical committees provide their results, an independent assembly of 15 judges ensures the entire competition process’s fairness, credibility, and integrity. This process includes verifying that all participants’ registration opening and closing times are equal.

“If the jury does not believe the process and the result, the result will not be approved,” Tewodros stated. “After all this, it will be presented to the management board, after the approval of the board, it will be presented to the honorable president and the award will be held.”

Additionally, the EQA has a formal complaint system in place. “If the result does not represent them, it will be checked by the technical committee or the judges’ assembly after submitting it in writing or otherwise,” Tewodros said. “We’ve never had a lot of complaints about going with such a system, and the contestants know this in the process.”

The EQA’s evaluation criteria are aligned with international standards and focus on four key areas: direction, Execution, impact, and sustainability.

“The first one is direction, which is, whether the organisation is evaluated, what it is working to become, what kind of activities it intends to lead the organisation in the future, and where the organisation sees itself after many years,” Tewodros explained. “Next to direction, Execution, that is, how to execute the policies, strategies, and plans that the organisation has made. We study how they provide their products and services.”

The organisation also examines the impact of the company’s activities, both in terms of economic and social consequences. Finally, the EQA looks at the sustainability of the company’s operations and its ability to maintain high-quality standards over the long term.

“If all these are done, then what will be the impact on the economy, the environment, and the people?” Tewodros said. “This is what the seven criteria are all about. These seven criteria contain up to 200 questions. So organisations are learning with each process. And when we say they have learned, it means that they are operating themselves in an international way.”

Tewodros believes the EQA’s model has driven continuous improvement among Ethiopian businesses. “After many years, institutions can be called institutions only when they meet these criteria,” he said.

The organisation’s efforts have yielded tangible results, with participants using the feedback to update their plans and procedures. “Organisations can see what they are up to. Apart from this, when company owners go to foreign countries, they learn about the experiences of foreign countries. They visit the factories and see the hotels where they stay. When they come back after seeing the situation of each world, they develop ideas that would help them improve their institutions. At this stage, the EQA presents its model as a solution.

As the EQA evolves, Tewodros and his team remain committed to fostering a culture of quality and excellence across Ethiopia’s business landscape.

“Quality is not something we do once and stop, it is something that is constantly improved,” Tewodros emphasised. “When organisations receive awards and recognition, it boosts their morale and introduces them to society as EQA certified.”

The organisation’s efforts have not gone unnoticed. Over the past 16 years, the EQA has become a respected institution, providing a platform for businesses to benchmark their performance against international standards and drive continuous improvement.

“This is what the seven criteria are all about. These seven criteria contain up to 200 questions. So organisations are learning with each process. And when we say they have learned, it means that they are operating themselves in an international way,” Tewodros said.

As Ethiopia continues to position itself as an emerging economic powerhouse, the work of the EQA will 7play a crucial role in honing the country’s competitive edge. By fostering a culture of quality and excellence, the organisation is helping pave the way for a new generation of Ethiopian businesses that can thrive globally.

In today’s fiercely competitive global landscape, a nation’s industrial success hinges not just on abundant resources or cheap labour but on a relentless pursuit of quality and continuous improvement.

The concept of industrial competitiveness encompasses a nation’s ability to produce high-quality goods and services efficiently, at competitive prices, for global markets. In this context, organisational quality systems – structured frameworks for ensuring consistent excellence – play a pivotal role. These systems, often based on internationally recognised standards like ISO 9001, provide a roadmap for continuous improvement across all organisational functions, from leadership and customer focus to process optimisation and resource management. Research by the Asian Productivity Organization demonstrates a clear correlation between effective quality management practices and increased productivity, reduced waste, and enhanced customer satisfaction – all critical drivers of industrial competitiveness.

The Asian Tigers: A Case for Quality

The economic miracles of South Korea, China, and Singapore serve as compelling case studies for the power of quality-driven industrial development. South Korea, once a war-torn nation, embarked on a quality revolution in the 1960s. It embraced rigorous quality control practices, heavily invested in education and training, and fostered a culture of innovation. This commitment, documented in studies like “The Korean Miracle: Lessons for Growth and Development, by Kwan S. Kim, professor emeritus of international development economics and former fellow of the Kellogg Institute at the University of Notre Dame and Liu Institute for Asian Studies, propelled South Korea from a largely agrarian economy to a global leader in high-tech manufacturing.

China followed a similar path, implementing large-scale quality initiatives in the 1980s. Its “National Quality Award,” established in 1984, mirrored programmes like the Deming Prize in Japan, recognising and rewarding companies for excellence in quality management. Research published in the International Journal of Production Economics highlights the positive impact of these initiatives on Chinese manufacturing, leading to significant improvements in product quality and export competitiveness.

With its limited natural resources, Singapore adopted a knowledge-based approach to industrial development. It prioritised education, attracting foreign investment, and creating a business environment conducive to quality. A study by the World Bank identified Singapore’s focus on quality infrastructure, skilled workforce, and efficient processes as critical factors in its transformation into a global trade and manufacturing hub.

The experiences of these nations demonstrate a powerful truth: quality is not just a desirable outcome; it’s a strategic imperative for industrial growth. By adopting and implementing robust quality systems, nations create an environment where businesses can thrive, innovation flourishes, and exports gain a competitive edge in the international market.

Ethiopia’s Path to Progress

With its burgeoning population, strategic location, and abundant resources, Ethiopia aspires to become a light manufacturing powerhouse in Africa. To achieve this vision, a commitment to quality systems is essential. Ethiopia can learn from the Asian Tigers and develop a practical, progressive quality framework.

Building a quality infrastructure is the starting point towards industrial excellence. Establishing a national quality infrastructure similar to those in South Korea and China is crucial. This policy includes robust accreditation bodies for certification and testing, along with standards development agencies attuned to international best practices.

Fostering a culture of quality is imperative. Ethiopia can emulate Singapore’s focus on education and training, equipping its workforce with the skills and knowledge necessary for quality-conscious manufacturing. Additionally, promoting quality awareness programmes can create a national shift towards excellence.

That’s not enough; incentivising quality practices should also be a practice nationwide. The Ethiopian Quality Award (EQA) programme, modelled after similar award programmes in Asia, can play a significant role. Though a lot remains, its 16 years of profound contributions have pushed hundreds of manufacturers and service-giving institutions in the right direction towards excellence. Recognising and rewarding companies that demonstrate excellence in quality management can inspire a national drive for continuous improvement.

Leveraging technology is also an advantage latecomers have in building a system of excellence in manufacturing. Digitalisation offers new opportunities for quality management. Cloud-based data analysis, process monitoring, and defect-tracking solutions can empower Ethiopian manufacturers to identify and address quality issues proactively.

The pursuit of industrial competitiveness is a marathon, not a sprint. By adopting a progressive approach to organisational quality and continuous improvement, Ethiopia can unlock its vast potential and emerge as a leader in light manufacturing. Learning from the success stories of South Korea, China, and Singapore and fostering a national culture of quality, Ethiopia can transform its ambitions into reality, solidifying its position as a manufacturing powerhouse in the continent. This journey towards excellence will require a concerted effort from government, industry leaders, and academia. The rewards – increased productivity, global competitiveness, and a thriving national economy – are well worth the investment in quality. EBR

12th Year • July 2024 • No. 131