Leadership Strategic Planning TQM

Total Quality Management

Chapter 6
Leadership and Strategic
planning For TQM

Chapter6 1

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

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

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

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

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

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

planning For TQM

Deming’s 14 Points
3©

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

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


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
Chapter6 11
circumstances.


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


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


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 & Steering Inform &
Improve Committee develop

Plan &
align
Chapter6 16

Leadership CRI Star

Results

Relationship People
Surprise &
Delight

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
Chapter6 18
movement forward

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


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


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


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


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


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


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 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


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


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 industry-
independent generic strategies from which the firm
Chapter6 28
can choose.


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
Chapter6 29
who formulated it.


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


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

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

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

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

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

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

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

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

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

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

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