Schlumberger goes Total Quality Management

Summary

Schlumberger is an oil-field service company. It is especially active in the electrical wireline logging business. Schlumberger Wireline and Testing is the market and technology leader. Wireline and Testing, like the other Schlumberger service companies, has a strong top-down structure. All line and staff management positions are filled by former field engineers.

The company culture is very financial-reward driven. Schlumberger views its relations with its employees on a day-to-day basis, short-term. In general, employees will leave the company when money has lost its incentive value.

The company recently introduced a Total Quality Management (TQM) system. The main purpose of the TQM system is to improve customer satisfaction by increasing customers’ perceived quality of the wireline services. A change towards more attention to before and after sales service is important.

Management faces major problems implementing the TQM system. The problems are mainly caused by a mismatch between TQM and the existing company culture. This case discusses the factors contributing to this problem.