Nice on Roy.. good to hear that your organization's issues are being identified.
I recommend one thing most strongly: Do not have a QA "department".
QA is truly everyones job, and every product-team should have a program manager, dev-lead, devs, test-lead and dedicated testers. The test-leads and testers might be relatively 'floating' resources and together might constituted the testing 'group' within the organisation, but they are certainly not a standalone department.
Isn't is bad karma to be the outsider telling the bad news? Do people like you in that company?
Identifying the problem is the first step. Now what? How do you actually get change to start happening? Is the CEO convinced yet? Have you bee given excecutive power to make change?