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The Complete Quality Cycle

Ezequiel Santiago Parsons Aubone

October 2016
Developed with the invaluable participation of
Antonio Toms Parsons & Cinthia Fehling

The Complete Quality Cycle


October 2016

Present industrial models are analysed from an environmental and social perspective, including
mitigating actions, sought mainly through donations. Present market rules on these as-pects are
revised and the question: Can a different conception by found and applied? is addressed.
Can a scheme where the concept of quality, today circumscribed to materials and work-manship,
can be extended to the origin of raw material, quality of work, workers, and the final destination of
profit, be found and put to work? Propitiating recycled or recyclable, caring for the environment,
promoting regional economies and devoting most of final sale profit for social purposes.
We found that a scheme where well-paid work in developing countries, conducive to im-proving
their living conditions, recovering waste from the automotive industry to manufacture and
develop a high quality product by international standards, is possible. This scheme includes
achieving a competitive price and obtaining a profit that enables to finance one of the world wide
fastest growing NGOs (TECHO), and reinvest in the development and growth of the project.
We redefine the pillars of the market, paving the way to the future, in what we call a COMPLETE
QUALITY CYCLE: A company scheme that understands quality as the care of each of its value
chain links.

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CONTENTS

INTRODUCTION

1.1 Our Uncomfortable reality

THE CHALLENGE

2.1 Breakthrough Strategies

THE COMPLETE QUALITY CYCLE

IMPLEMENTATION OF THE STUDY AN UNBEATABLE SCHEME

PUTTING THE CONCEPT INTO PRACTICE: TECHO - LEAF

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5.1 TECHO, a youthled non-profit organization

11

5.2 LEAF, the Where You Stand idea

12

5.3 Breakthrough Strategies Applied

13

5.4 TECHO leverage

14

REFERENCES

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1 INTRODUCTION
1.1

Our Uncomfortable reality


Contrasting realities are found in our days. Environmental problems and new technologies;
automatization and unemployment; underpaid workers in third world countries and industrial
residues in many cities. Being the most expanded industry many of these negative situations
social and environmental problems , are related to the apparel value chain. Some efforts can be
seen to improve this picture.
The greatest efforts come from some social NGOs where we find that fundraising is difficult and
not innovative, mostly begging for donations.
Simultaneously, the numbers of people gaining consciousness of these problems grow
exponentially. Although most people are willing to help, their daily activities make it difficult
to find the means to this end. There is a market for products that have been manufactured and
marketed with high standards of environmental and social care.
Yesterdays niche market turns out to be todays mass markets with social conscience
consumers. The same consumers that purchase the diverse apparel products.

2 THE CHALLENGE
How can this massive consumer goodwill be brought together efficiently, and pave the way
towards a clean industry with well payed workers, without disturbing consumers day to day
activities?
2.1

Breakthrough Strategies
We can keep on building companies, willing to handout donations written off their tax bills, in
an unfruitful effort to repair the damage that they have caused, ending up being once again a
marketing strategy.
Does this address the root of the problem?
Competing for the future means thinking and acting in new and unconventional ways. It requires
identifying how the future will be different, understanding what these differences will mean to
consumers, mobilizing a company to position itself advantageously in that new environment
and getting to the future before any competitors do.
We may not live for hundreds of years, but the products of our creativity (but what our creativity
produce) can leave a legacy long after we are gone.

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Are we competing for a market share in the existing market place? Are we only donating tax
deductible amounts, in an industry well known for price mark up? Or are we willing to stand up
and compete for the right to shape the structure of the markets of the future? Can we redefine
the business, and together with NGOs create a massive movement? We must understand that
the future is not an extrapolation of the past.
A UNIQUE IDEA: Can we shuffle, and deal again, redefining priorities and participants, creating
a company, in a water proof win- win partnership scheme, with an NGO? Implying that for
every production unit sold the NGO will receive the primary financial benefit, allowing a minor
balance for company and project growth? More than two-thirds of the markup redirected to
social assistance. This revolutionary concept ensures needy people, in different parts of the
world, to benefit from this business. What makes it work even better is the fact that a buyer will
feel good in the knowledge that his purchase has actually helped the needy. This, at a first glance,
may seem evolutionary, but will prove to be revolutionary, and will get us to the future before
our competitors without risk.

3 THE COMPLETE QUALITY CYCLE


Understanding quality in its most ample concept. Envision a fashion quality apparel brand,
marketing high-finished products, with high standards all along the value chain, manufacturing
materials, qualified well-paid labor, and satisfied final users.

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We envision nature including people. We believe that fighting poverty isnt just about charity, but
about justice and equality. Helping families gain the skills they need to reach their full potential.
Allowing them to develop small-scale artisan businesses and preserving the environment by
using recycled materials.
Companies that can be organized aiming at an ample objective, including an NGO that shall
receive the primary financial benefit from every sale made. This will allow the NGO to become a
truly sustainable organization, rather than a charity dependent on fundraising for support. The
goal is clear, eradicating poverty, and improving environments related to the industry, and, for
each buyer, his purchase is an important step towards this goal. So buyers are the echelon that
complete this Cycle, and they`ve found a way to help in a noble cause, without affecting their
daily routine. The buyer has stepped forward and committed to social change.

4 IMPLEMENTATION OF THE STUDY AN UNBEATABLE SCHEME


Every single person, every single organization on the planet knows what they do. Some know
how they do it, whether you call it your differentiated value proposition or your proprietary
process. But very, very few people or organizations know why they do what they do. And by
why we dont mean to make a profit. Thats a result. Its always a result. By why, we mean:
Whats your purpose? Whats your cause? Whats your belief? Why does your organization exist?
Why do you get out of bed in the morning? And why should anyone care? As a result, the way we
think, we act, the way we communicate is from the outside in, its obvious.
The goal of a company adapting The Complete Quality Cycle Cycle is not just to do business with
everybody who needs high quality products. The new concept goal is to attract those who believe
that the company is committed to work towards a fair, unpolluted, and poverty free society.
Most people are willing to help, but in their daily activities its difficult to find the means to this
end.
The law of diffusion of innovation is imposed:
The first 2.5% of population are innovators.
The next 13.5% are early adopters. The next
34% are early majority, and finally we have late
majorities and laggards. The only reason these
people buy smartphones is because you cant
buy rotary dial phones anymore.
The early majority will not try something until
someone else has tried it first. And these guys,
the innovators and the early adopters, are
comfortable making those gut decisions. Theyre
more comfortable making those intuitive
decisions that are driven by what they about
the world and not just what product is available.
Law of diffusion of innovation
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These are the people who stood in line for six hours to buy an iPhone when they first came out,
when they could have bought one off the shelf the next week. They didnt do it because the
technology was so great; they did it for themselves. Its because they wanted to be first.
People dont buy only what we do; they buy why we do it, and what we do simply proves what we
believe. In fact, people will do the things that prove what they believe. The reason why a person
buys an iPhone in the first six hours, and stands in line for these six hours, is because of what
they believe about the world, and how they wanted everybody to see them: They were first.
The goal is not just to sell to high quality products; the goal is to sell to people who believe what
we believe. The goal is not just to hire people who need a job; its to hire people who believe what
we believe. If you hire people just because they can do a job, theyll work for our money, but if
they believe what we believe, theyll work with, and their efforts will be greater.

If we talk about what we believe, we will attract those


who believe what we believe. We believe in a fair, clean
environment and and poverty free society.
We believe that the greatest efforts come from some social NGO but that their way of raising
funds is archaic, mostly begging for donations.
The Complete Quality Cycle is adopted by a company willing to be, benefit wise, full partners
with an NGO, and together feature social reality to their customers. That direct experience with
the problem is the best way for young people to become committed to solving it. Thus, for every
high quality item sold, the NGO will receive the primary financial benefit. This revolutionary
concept ensures that the NGO`s final beneficiaries, in different parts of the world, will receive
the needed help, without depending on donations received by occasional donors.
And people will buy why we do it, simply because its easier to connect to a kwon beneficiary, a
person, a child in need, than to an abstract action. So if a company is giving 10% in charity, its
hard to feel passionate about that. But if you are positively contributing to a noble cause, i.e.
putting a roof over a poor childs head, there is a very direct connection.

Through The Complete Quality Cycle,


donors and recipients connect.
We follow those who lead, not because we have to, but because we want to. We follow those who
lead, not for them, but for ourselves. And its those who start with why that have the ability to
inspire those around them or find others who inspire them.

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5 PUTTING THE CONCEPT INTO PRACTICE: TECHO - LEAF


Service above self; providing a pathway for daily contribution
through a good standing apparel brand. Being enablers of global good-willing,
making a difference in the world.
5.1

TECHO, a youthled non-profit organization


In 1997 a group of young people began working towards the dream of overcoming poverty. The
sense of urgency that existed in slums massively mobilized them to build transitional houses
together with the families that were living in these unacceptable conditions.
This initiative became an institutional challenge that today is shared across the South American
continent.
Thus TECHO NGO was born.
Since its beginnings in Chile, followed by
El Salvador and Peru, TECHO undertook
an expansion, and after 15 years has
maintained operations in 19 countries
across Latin America: Argentina, Bolivia,
Brazil, Chile, Colombia, Costa Rica, Ecuador,
Guatemala, Haiti, Honduras, Mexico,
Nicaragua, Panama, Paraguay, Dominican
Republic, ruguay and Venezuela. It also
has offices in the US, as well as in London,
England.
TECHO is convinced that poverty can be
permanently eradicated if society as a whole
recognizes this situation as a priority, and
actively works towards overcoming it.
Despite the effort, raising funds always becomes an arduous task because their way of raising
funds is limited, mostly begging for donations.
TECHO volunteers are young people convinced that change and overcoming poverty in their
countries are both possible and attainable goals. These young people, willing to spend a weekend
or several days a week, helping the needy, have one more thing in commontheir needs are met.
They can afford spending some time at TECHO. These young people belong to ABC1 market.
Over 90% of TECHO volunteers go to college, and three quarters of those, to private universities
and have access to a computers or smartphones. We see this reflected in the Facebook fan page
of TECHO in Argentina.
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5.2

LEAF, the Where YOU stand idea


In 2014 LEAF movement was born, a brand that for every sale made, TECHO (NGO) is the
primary financial beneficiary, in order to overcome extreme poverty in slums. In this way LEAF
begins to project its unique business model.
LEAF as a new generation brand of apparel, willing to take on the challenge of being full partners
with TECHO. This direct experience with the problem is the best way for young people to become
committed to solving it. This project proposes the creation a social-minded apparel company,
with highly attractive returns, enhanced by the synergy of the worldwide prestigious NGO
TECHO, marketing high-finished casual footwear and clothing.

In late 2015 an agreement with TECHO was signed. TECHO provides LEAFs exclusive apparel
industry, with visibility and an attractiveness that will allow growing in ABC1 market share.
Through the LEAF initiative where you stand, the consumer will buy shoes and simultaneously
join in a noble cause becoming real benefactors. This will allow TECHO to become a truly
sustainable NGO, rather than a charity dependent on fundraising for support. These customers
will become lifelong people committed to social change.
This initiative, driven by a vocation for high product quality and social concern, naturally led to
further improvement in the all-around concept of excellence, going deeper and wider, including
all echelons in the chain of production, marketing and consumers.
Following these concepts LEAF believes in the importance of empowering local economy
by employing local artisans and crafters rather than working with Asian factories. Including
recycled rubber in soles, as LEAF is working on, will enable the reduction of the number of
used tires discarded in landfills. At present, LEAF works with local artisans to manufacture
environmentally beneficial products, starting out with 100% recycled sole.

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5.3

Breakthrough Strategies Applied


A business model seizing a significant market share of the footwear industry and creating
tomorrows markets.

LEAF proposes not only to imagine the future


we want to enjoy, buy to actively create it.
The LEAF business model and its heavy focus on marketing and use of social media, is innovative
and unique. The philanthropic component is critical to the success of the business. TECHO will
leverage LEAF to quickly gain market share. At present TECHO has over 200,000 followers
on it`s Argentina Facebook fan page. These followers are not consumers of TECHO, they are
truly Fans. The use of LEAF espadrilles (Fashion deck shoes), will be a natural extension of
their devotion for TECHO,being willing to pay
more for that differential. Moreover, having
celebrities a penchant for charitable causes,
LEAF Shoes will allow them also to help others
while looking trendy at the same time. Photos
of these celebrities wearing LEAF Shoes will
spread on social media sites, creating huge
awareness of LEAF.

Daniel Del Bo, Argentine Olympic Sprint Canoeist

5.4

LEAF will be positioned to existing and new


customers as a brand that impacts lifestyle.
Becoming involved with the brand will be more
than just purchasing a pair of shoes. Once the
consumer realizes the impact one pair of shoes
has on a family in need, they will strive to help
more families and become more involved in the
movement. This will influence new customers
to get involved as well. LEAF will be positioned
as a lifestyle of helping others.

TECHO leverage
As mentioned, TECHO is very popular with ABC1 age group, and since they are brand loyal it is
hopeful they will purchase and get interested in LEAF shoes.
Our product is sold at a competitive price, but with higher quality. It is easy to anticipate gaining
10% of that market within the first year.

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Up to 200K young ABC1 people have helped TECHO in the past 5 years. Over the time, they
grow in responsibilities, university, jobs, and can-not continue their activities with the NGO
cause. Even so, most of them continue going to malls, and keep on buying footwear, at 40 -150
US dollars.
These young people will find themselves linked to social commitment with the LEAF campaign.
In their own shopping malls, they will find the possibility of buying quality footwear and helping
TECHO as well. With only 1% of these young people buying our espadrille we will be selling
40,000 pairs per month.
With these prices, LEAF is communicating that their product is affordable and that the consumer
is getting their moneys worth. The retail price contributes to the companys overall strategy
because for a minimum of $55 the consumer is essentially buying one pair of shoes and helping
a family in need.
With more than one and a half million fans across the continent, TECHO became the fastest
growing NGO in the world. Its human capital is young and young-adult upper classes by 80%.
This represents a potential ABC1 market. These young volunteers are not clients of TECHO.
These young-adults are fans.
A small difference, which results in loyalty.
With the above slogan, together with a product that is already familiar to them, but of higher
quality. Undoubtedly, 90% would be willing to pay more for their pair of LEAF knowing the final
destination of their money, rather than keep on buying the one they used to.
LEAF are individual to each customer. The brand is more than just a brand, its more than its
mission, it is a lifestyle. People who buy LEAF dont just buy them for their quality, they buy
into the lifestyle, and they live the LEAF brand. When consumers purchase LEAF products it is
representative of who they are and what they stand for. This in turn, will build the LEAF brand
into a culture and a lifestyle.

In 2014 LEAF movement was born, a brand that for every sale, made TECHO the primary
financial beneficiary, in order to overcome extreme poverty in slums. In this way LEAF begins to
project its unique business model.

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