Delight makes the difference: the story of AT&T Universal Card

In March 1990, AT&T entered the credit card business under a unique set of circumstances; from its first day in existence, the company’s credit card subsidiary built itself up, based on total quality management principles. While most firms embracing total quality management have had to fit their principles into an already dynamic business environment, AT&T Universal Card Services (UCS) has never existed without them. Thus, UCS’s story may provide a fresh perspective for those interested in quality implementation. Coming into an industry not noted for high levels of customer service, UCS saw that it could distinguish itself by focusing in this area. A formalized programme for collecting a broad array of information from customers helps UCS keep apprised of what customers value in their credit card companies. Processes are in place for applying this information and measuring the company’s performance in key customer‐impacting areas. UCS, which won the Malcolm Baldrige national quality award in 1992, is currently the second‐largest issuer of bank credit cards in the USA with 15 million accounts. The company credits its use of total quality management for its business success – and is confident the same methods will continue to serve it well in its increasingly competitive future.