Total Quality Management Chapter 6 Leadership and Strategic planning For TQM Chapter6 1
Leadership and Strategic planning For TQM Managers all over the world recognize the essential role that effective leadership plays in organizational performance. Effective business leadership is an imperceptible quality for many. Leaders are capable not only to differentiate the results of their companies; they also can differentiate the satisfaction levels of the people working within these companies. According to the last national research, getting along with the boss is the number one factor that influences job happiness Chapter6 2
Leadership and Strategic planning For TQM There is a profound difference between management and business leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading in business is influencing, guiding in direction, course, action, opinion. The distinction is crucial. Managers are people who do things right and leaders are people who do the right thing. Chapter6 3
Leadership and Strategic planning For TQM The difference may be summarized as activities of vision and judgmenteffectiveness versus activities of mastering routinesefficiency Managers are responsible for the coordination, procurement and distribution of human and material resources that are necessary for an organization. The abilities of a manager facilitate the work of an organization because they guarantee that all activities and actions are done in accordance with the rules and regulations of an organization. Chapter6 4
Leadership and Strategic planning For TQM Executive leadership which focus the role of senior mangers in guiding organization. A. Create an Inspiring Vision & Lead by Example 1. Create an inspiring vision, establish shared values, give direction and set stretch goals 2. Create change, lead change, manage resistance to change 3. Lead by example; practice what you preach; set an example, and share risks or hardship 4. Demonstrate confidence; win respect and trust without courting popularity Chapter6 5
Leadership and Strategic planning For TQM B. Empower, Inspire, and Energize People Be enthusiastic; inspire and energize people, create a positive work environment 6. Empower people; delegate authority; be open to ideas; have faith in the creativity of others 7. Communicate openly and honestly; give clear guidelines; set clear expectations 8. Be willing to discuss and solve problems; listen with understanding; support and help Chapter6 6
Leadership and Strategic planning For TQM C. Build and Lead a Team 9. Use team approach; facilitate cooperation; involve everyone; trust your group; rely on their judgment 10. Bring out best in your people; have common touch with them; coach and provide feedback 11. Permit group decision; help your team reach better decisions 12. Don't micromanage; avoid close supervision; do not over boss; do not dictate or rule by the book Chapter6 7
Leadership and Strategic planning For TQM 3 Deming s 14 Points 1. Create constancy of purpose 2. Adopt philosophy of prevention 3. Cease mass inspection 4. Select a few suppliers based on quality 5. Constantly improve system and workers 6. Institute worker training 7. Instill leadership among supervisors Chapter6 8
Leadership and Strategic planning For TQM 8. Eliminate fear among employees3 9. Eliminate barriers between departments 10. Eliminate slogans 11. Remove numerical quotas 12. Enhance worker pride 13. Institute vigorous training & education programs 14. Implement these 13 points Chapter6 9
The Seven Habits of Highly Effective People The Seven Habits of Highly Effective People, first published in 1989, is a self-help book written by Stephen R. Covey. The Seven Habits 1. First Habit - Be Pro-active. Here, Covey emphasizes the original sense of the term "proactive" as coined by Victor Frankl. You can either be proactive or reactive when it comes to how you act about certain things. Chapter6 10
The Seven Habits of Highly Effective People Being "proactive" means taking responsibility for everything in life. When you're reactive, you blame other people and circumstances for obstacles or problems. Initiative, and taking action will then follow. Covey shows how man is different from animals in that he has self consciousness. He has the ability to detach himself and observe his own self, think about his thoughts. He goes on to say how this attribute enables him. It gives him the power not to be affected by his circumstances. Chapter6 11
The Seven Habits of Highly Effective People 2.Begin with the End In Mind. This chapter is about setting long-term goals based on "true-north principles". Covey recommends to formulate a "personal mission statement" to document one's perception of one's own purpose in life. He sees visualization as an important tool to develop this. He also deals with organizational mission statements, which he claims to be more effective if developed and supported by all members of an organization, rather than being prescribed. Chapter6 12
The Seven Habits of Highly Effective People Delegation is presented as an important part of time management. Successful delegation, according to Covey, focuses on results and benchmarks that are to be agreed in advance, rather than on prescribing detailed work plans. 4. Think Win/Win describes an attitude whereby mutually beneficial solutions are sought, that satisfy the needs of oneself as well as others, or, in the case of a conflict, both parties involved. 5. Seek First to Understand, Then to be Understood. Covey warns that giving out advice before having empathetically understood a person and their situation will likely result in that advice being rejected. Chapter6 13
The Seven Habits of Highly Effective People 6. Synergize describes a way of working in teams. Apply effective problem solving. Apply collaborative decision making. Value differences. Build on divergent strengths. Leverage creative collaboration. Embrace and leverage innovation. It is put forth that, when this is pursued as a habit, the result of the teamwork will exceed the sum of what each of the members could have achieved on their own. The whole is greater than the sum of its parts. 7. Sharpen the saw focuses on balanced self-renewal. Regaining what Covey calls "production capability" by engaging in carefully selected recreational activities. Chapter6 14
Peters Model For TQM Leadership Care of customers Constant Innovation Leadership People(internal Customer Chapter6 15
Custom research (CRI) Leadership System Lead with Vision Learn & Improve Steering Committee Inform & develop Plan & align Chapter6 16
Leadership CRI Star Results Relationship Surprise & Delight People Requirements Processes Chapter6 17
The six E s of outstanding Leadership The six elements are: Exposing Possibility of moving away from the way things currently exist Envisioning what sort of afuture is to be created ahead in time Enlisting the support of all others in the organization Enpoering all those who are willing to work Exemplifying the right actions and behaviors for others to emulate Encouraging actions of others that support the movement forward Chapter6 18
Strategic Quality management To be effective, strategic quality planning must be used as a tool, a means to an end, and not as the goal itself. Integrating Quality and Strategic Planning The past few years has seen an increasing emphasis on strategic quality management. Companies recognize that the true key to business excellence is integrating quality goals and actions into the organization's strategic and operational plans. Chapter6 19
Strategic Quality management This process of defining a customer-focused vision, stating the objectives and integrating quality goals into the company's strategic and annual business plans is often called strategic quality planning. For many years, it was one of the Malcolm Baldrige National Quality Award criteria. Chapter6 20
Strategic Quality management In the United States, this process is known as strategic quality management. The elements of strategic quality management are not too difficult to understand. At the 30th Anniversary Congress of the Asian Productivity Organization, Hideo Sugiura, former chairman of Honda Motor Co., explained the roles of senior management and strategic quality management clearly. Chapter6 21
Strategic Quality management Sugiura described four "sacred obligations" of management: Have a clear vision of where the company is going. This must be clearly stated and communicated to every member of the organization in language he or she understands. Define clearly the small number of key objectives that must be achieved for the company to realize its vision.. Chapter6 22
Strategic Quality management Translate these key objectives throughout the entire organization so that each person knows how performing his or her job helps the company achieve objectives Provide a fair and honest appraisal so that each and every employee knows how his or her performance has contributed to the organization's efforts to achieve the key objectives, accompanied by guidance on how the individual can improve this performance. Chapter6 23
Strategic Quality management Simplified view of the strategic planning process is shown by the following diagram: The Strategic Planning Process Mission Objectives Environmental Scanning Strategy Formulation Strategy Implementation Evaluation & Control Chapter6 24
Strategic Quality management Mission and Objectives The mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities. Guided by the business vision, the firm's leaders can define measurable financial and strategic objectives. Financial objectives involve measures such as sales targets and earnings growth. Chapter6 25
Strategic Quality management Strategic objectives are related to the firm's business position, and may include measures such as market share and reputation. Environmental Scan The environmental scan includes the following components: Internal analysis of the firm Analysis of the firm's industry (task environment) External macroenvironment (PEST analysis) Chapter6 26
Strategic Quality management The internal analysis can identify the firm's strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT analysis An industry analysis can be performed using a framework developed by Michael Porter known as Porter's five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry. Chapter6 27
Strategic Quality management Strategy Formulation Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats. To attain superior profitability, the firm seeks to develop a competitive advantage over its rivals. A competitive advantage can be based on cost or differentiation. Michael Porter identified three industryindependent generic strategies from which the firm can choose. Chapter6 28
Strategic Quality management Strategy Implementation The selected strategy is implemented by means of programs, budgets, and procedures. Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. The way in which the strategy is implemented can have a significant impact on whether it will be successful. In a large company, those who implement the strategy likely will be different people from those who formulated it. Chapter6 29
Strategic Quality management For this reason, care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected. Chapter6 30
Strategic Quality management Evaluation & Control The implementation of the strategy must be monitored and adjustments made as needed. Evaluation and control consists of the following steps: 1. Define parameters to be measured 2. Define target values for those parameters 3. Perform measurements 4. Compare measured results to the pre-defined standard 5. Make necessary changes Chapter6 31
Management & planning tools for implementing policy deployment The Seven Management and Planning Tools have their roots in Operations Research work done after World War II and the Japanese Total Quality Control (TQC) research. In 1979 the book Seven New Quality Tools for Managers and Staff. The seven tools include: 1. Affinity Diagram (KJ Method) 2. Interrelationship Diagraph (ID) 3. Tree Diagram 4. Prioritization Matrix 5. Matrix Diagram 6. Process Decision Program Chart (PDPC) 7. Activity Network Diagram Chapter6 32
Management & planning tools for implementing policy deployment Affinity Diagram This tool takes large amounts of disorganized data and information and enables one to organize it into groupings based on natural relationships. It was created in the 1960s by Japanese anthropologist Jiro Kawakita. Chapter6 33
Management & planning tools for implementing policy deployment Interrelationship Diagraph This tool displays all the interrelated cause-and-effect relationships and factors involved in a complex problem and describes desired outcomes. The process of creating an interrelationship diagraph helps a group analyze the natural links between different aspects of a complex situation. Chapter6 34
Management & planning tools for implementing policy deployment Tree Diagram This tool is used to break down broad categories into finer and finer levels of detail. It can map levels of details of tasks that are required to accomplish a goal or task. It can be used to break down broad general subjects into finer and finer levels of detail. Developing the tree diagram helps one move their thinking from generalities to specifics. Chapter6 35
Management & planning tools for implementing policy deployment Prioritization Matrix This tool is used to prioritize items and describe them in terms of weighted criteria. It uses a combination of tree and matrix diagraming techniques to do a pair-wise evalutaion of items and to narrow down options to the most desired or most effective. Chapter6 36
Management & planning tools for implementing policy deployment Matrix Diagram This tool shows the relationship between items. At each intersection a relationship is either absent or present. It then gives information about the relationship, such as its strength, the roles played by various individuals or measurements. Six differently shaped matrices are possible: L, T, Y, X, C and roof-shaped, depending on how many groups must be compared. Chapter6 37
Management & planning tools for implementing policy deployment Process Decision Program Chart (PDPC) A useful way of planning is to break down tasks into a hierarchy, using a Tree Diagram. The PDPC extends the tree diagram a couple of levels to identify risks and countermeasures for the bottom level tasks. Different shaped boxes are used to highlight risks and identify possible countermeasures (often shown a 'clouds' to indicate their uncertain nature). The PDPC is similar to the Failure Modes and Effects Analysis (FMEA) Chapter6 38
Management & planning tools for implementing policy deployment Activity Network Diagram This tool is used to plan the appropriate sequence or schedule for a set of tasks and related subtasks. It is used when subtasks must occur in parallel. The diagram enables one to determine the critical path (longest sequence of tasks). (Similar to PERT diagram. Chapter6 39
The Westing house Total Quality Model TQM Requirement Customer Focus HR Excellence Product Leadership Management Leadership Chapter6 40
Management & planning tools for implementing policy deployment 7-S model Linked to the corporate culture, the 7-S- Model is based on the assumption that the members of an organization are sharing a system of combined values and beliefs. Therefore organizations where the employees are taking the center stage of the company are considered to be more successful than others. Based on that fact the 7-S-Model shows the multiplicity interconnectedness of all the seven elements that define an organization s ability to change. Chapter6 41
Management & planning tools for implementing policy deployment Those elements are divided into the so called soft facts and the hard facts. Strategy, structure and systems belong to the hard S s. They are feasible and easy to identify. The soft facts include skills, staff, style and the shared values. Soft facts are hardly feasible and they are highly determined by the people at work in the organization. Although the soft factors are below the surface, they can have a great impact of the hard structures, strategies and systems of the organization. Chapter6 42
Developing Culture for TQM To mangers ends are more important than means.the negative & out-molded culture need to be changed for effective implementation of TQM. Values & culture Values are the building blocks of a culture. Values are stable long term beliefs that are hard to change A TQM culture is created,if the management of an organization starts learning the values of its people. Chapter6 43
Steps involved in creating TQM Culture Step1: Instituting management Accountability & deep sense of responsibility towards employee Step2 : Instituting management s thought and actions towards delighting its customers Step3 Removing organizational boundaries and internal competition Step4 using fact based decision making Step5 Use of kaizen continuous improvement must be encouraged Step6 Do not use specially designed structure for TQM Chapter6 44
Paths involved in creating TQM Culture Create & maintain awareness of Quality Providing evidence of management leadership Provide self deployment and empowerment Provide participation as amends of inspiring action Provide recognition & awards Chapter6 45
Common languages in the company Top Management Language of Money Middle Management Language of (Money+Products) Lower Management Language of product Chapter6 46
Total Quality Management End Of Chapter 6 Chapter6 47