Examines how Activity‐based Management (ABM) counters the root causes of the failure of quality initiatives. Claims the failures could be largely mitigated by the additional visibility of the costs and benefits of doing things in a TQ way, provided by the use of activity‐based management techniques. Contends that great care is required in the design of an activity database. Considers the development of activity‐based techniques. Concludes that total quality and activity‐based management are derived from different origins to meet different needs but that they are highly complementary. Contends that together they can make a major contribution to the removal of barriers to success in the implementation of quality improvement initiatives.