What Leila Hormozi Can Teach Us About Quality Management

If you’ve followed Leila Hormozi , you know she’s a master of scaling businesses, building systems, and creating high-performance teams. She’s taken multiple companies to $100M+ in revenue, and her secret isn’t just hard work—it’s operational excellence.

What does that have to do with quality management?

Everything.

Leila’s approach to building scalable systems, tracking the right metrics, and leading with data-driven decision-making is exactly what great quality leaders do.

Here’s what Leila Hormozi can teach us about quality management—and how applying her principles can transform your organization.

1. “You Don’t Have a People Problem, You Have a Process Problem”

Leila is famous for saying: ?? "You don’t rise to the level of your goals, you fall to the level of your systems."

When businesses struggle, they often blame it on bad employees. But Leila argues that most failures are system failures, not people failures.

?? How This Relates to Quality Management: If your team is constantly dealing with quality issues, chances are: ? Your processes aren’t defined well enough. ? There’s too much reliance on individual heroics instead of structured workflows. ? There’s no clear system for identifying, tracking, and eliminating defects.

? Fix the process, and the people will thrive.

?? Example: A manufacturing plant was dealing with repeat assembly defects. Instead of blaming operators, they analyzed the process and improved work instructions, reducing defects by 40% in a single quarter.

?? Lesson: If you’re constantly fighting quality fires, look at the system first, not the people.

2. “Track the Right Metrics—Not Just the Most Convenient Ones”

Leila is obsessed with data-driven decision-making. She doesn’t care about vanity metrics—she cares about KPIs that drive real business outcomes.

?? How This Relates to Quality Management: Many companies track a lot of data—but not all data matters.

? Instead of just tracking defect rates, ask: What’s the financial impact of defects? ? Instead of just measuring cycle time, ask: Does reducing cycle time hurt quality? ? Instead of just counting customer complaints, ask: What recurring failure modes are causing them?

?? Example: A supplier reduced warranty claims by 50% after shifting focus from first-pass yield to long-term reliability metrics.

?? Lesson: Track what actually impacts the business, not just what’s easy to measure.

3. “Operational Excellence is the Best Growth Strategy”

Leila knows that scale doesn’t come from working harder—it comes from working smarter. Her companies scale because they’re built on solid systems, not chaos.

?? How This Relates to Quality Management: A strong Quality Management System (QMS) isn’t just about passing audits—it’s about building a foundation for sustainable growth.

? ISO 9001, IATF 16949, AS9100 aren’t just compliance standards—they’re roadmaps for scalable, efficient businesses. ? Standard Operating Procedures (SOPs), work instructions, and process control create consistency, efficiency, and predictable success. ? Lean and Six Sigma help companies scale without sacrificing quality.

?? Example: Toyota’s legendary Lean Manufacturing System helped it become the largest automaker in the world—not by cutting costs, but by eliminating waste and perfecting processes.

?? Lesson: Growth and quality go hand in hand. If you want to scale, start with operational excellence.

4. “Feedback Loops Create Continuous Improvement”

Leila constantly emphasizes the importance of feedback—from employees, customers, and data. Without feedback, you’re operating blindly.

?? How This Relates to Quality Management: A strong quality system thrives on feedback loops.

? Internal audits help find gaps before external audits expose them. ? Statistical Process Control (SPC) flags variation before defects occur. ? Customer feedback and warranty data reveal where quality needs to improve.

?? Example: A company using SPC on a production line identified minor shifts in process variation before they led to major defects—saving $1.2M in potential rework costs.

?? Lesson: If you’re not measuring and learning, you’re not improving.

5. “You Need the Right People in the Right Seats”

Leila is big on hiring the right people and putting them in roles where they can thrive. She doesn’t hire based on who’s “available”—she hires based on who’s capable and aligned with the company’s vision.

?? How This Relates to Quality Management: The best quality systems don’t work if: ? Your team doesn’t have the right skills, training, or authority to make decisions. ? Leadership doesn’t prioritize quality, leaving it underfunded and unsupported. ? There’s no ownership of quality metrics at every level of the organization.

? Hire quality engineers who understand process improvement, not just compliance. ? Train employees to recognize and prevent defects, not just inspect for them. ? Empower quality leaders to make real changes, not just “police” the process.

?? Example: A company struggling with high supplier defect rates restructured their quality team, adding a dedicated supplier quality engineer. The result? Supplier defects dropped 60% in a year.

?? Lesson: The right people in the right roles can transform quality performance.

Final Thoughts: What Quality Leaders Can Learn from Leila Hormozi

?? Leila’s business strategies apply to quality management because they focus on efficiency, systems, and sustainable growth.

? Fix the process, not the people – Most quality failures are system failures. ? Track the right metrics – Data should drive decisions, not just reporting. ? Build for scale – Quality systems should support growth, not slow it down. ? Embrace feedback loops – Continuous improvement is the key to long-term success. ? Put the right people in the right seats – Quality teams need both authority and expertise.

?? Want to build a world-class quality system? Start thinking like Leila Hormozi—focus on systems, metrics, and scalability.