Chapter 4


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Chapter 4

  1. 1. 4 Leadership and Strategic Planning Good business leaders create a vision, passionately own a vision and relentlessly drive it till completion. -Jack Welch Total Quality Management
  2. 2. Learning Objectives After studying this chapter, you should be able to:       Explain Leadership Discuss Corporate Social Responsibility Identify Vision, Mission and Values Understand Strategic Quality Management Discuss Quality Culture Describe Change Management
  3. 3. Leadership-Defined Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. Total Quality Management
  4. 4. Leadership-Defined      Leadership is the capacity to translate vision into reality (Warren Bennis). Leadership is the only thing that differentiates successful organizations from other over the long run (Stephen Haines). Leadership is the result of communicating value in people so clearly that they come see it in themselves (Stephen R Covey). Leadership is all about courage to dream big (N R Narayana Murthy) Invisible leadership is exercising the vision to change The traditional role From commander to coach, From manager to mentor, From director to delegator, and From one who demands respect to one who Facilitates self-respect (Abdul Kalam) Total Quality Management
  5. 5. Quality Leadership The primary traits of successful leader’s are:  Leaders create vision  Leaders build team  Leaders are role model  Leaders take decision  Leaders inspire Total Quality Management
  6. 6. Leadership Functions Transactional  Policy making  Planning  Developing systems  Monitoring performance  Coordinating  Rewarding  Coaching         Transformational Visioning Modelling Setting standards Building culture and climate Boundary management Synergising Searching and nurturing talent Total Quality Management
  7. 7. Six natural levels of leadership Competencies The six natural levels of leadership competencies each having five skills and in total thirty skills are based on the science of Systems Thinking "the Natural Way the World works". Total Quality Management
  8. 8. Six natural levels of leadership Competencies Basic leadership competency levels 1. Enhancing Self-mastery 2. Building interpersonal relationships 3. Facilitating empowered teams Advanced Leadership competency levels 4. Collaborating across functions 5. Integrating organisational outcomes 6. Creating strategic alliances/positioning Total Quality Management
  9. 9. Corporate Social Responsibility (CSR) • • • The totality of CSR can be best understood by three words: corporate,’ ‘social,’ and ‘responsibility.’ In broad terms, CSR relates to responsibilities corporations have towards society within which they are based and operate, not denying the fact that the purview of CSR goes much beyond this. Stakeholders (employees, community, suppliers and shareholders) today are redefining the role of corporate taking into account the corporate’s broader responsibility towards society and environment, beyond economic performance, and are evaluating whether they are conducting their role in an ethical and socially responsible manner. Companies are now recognizing that dealing with environment and social issues can provide business benefits when reputational risk is high and sustainable competitiveness and development becomes a key strategy . Total Quality Management
  10. 10. Evolution of CSR • Ethical Model • Statist Model • Liberal Model • Stakeholder Model. Total Quality Management
  11. 11. Strategic Quality Management (SQM)  Strategic Quality Management is a structured process for establishing long range quality goals, at the highest levels of the organization and defining the means to be used to reach these goals. The concept of Strategic Quality Management (SQM) includes: Strategic planning, Strategy development and Strategy deployment. SQM is developed, deployed and led by the top management • Hoshin Kanri is a Japanese model for SQM. In the hoshin process, strategic planning is systematized: The format of the plans is unified via standards. The standardization provides a structured approach for developing and producing the organization's strategic plan. Total Quality Management
  12. 12. The Strategy Process Vision/Mission/Values Objectives/Goals External Environment Strategy Formulation Internal Environment Strategy Implementation Performance/Measureme nt (Evaluate and Control) Total Quality Management
  13. 13. Four Perspectives of Balanced Score Card Financial “To succeed Financially, how should we appear to our shareholders?” Customer “To achive our vision, how should we appear to our customer?” Internal Business Processes Vision and Strategy “To satisfy our shareholders and customers, what business processes must we excel at?” Learning & Growth “To achieve our vision, how will we sustain our ability to change and improve?” Total Quality Management
  14. 14. Quality Culture Quality culture is basically incorporation of quality in the overall system of an organization which leads to a positive internal environment and creation of delighted customers. There are six values of quality culture. There are various proactive steps one can take to move organization culture toward one based on quality values Total Quality Management
  15. 15. Five Stages of Quality Culture  Dormant Stage  Awakening Stage  Groping stage  Action Stage  Maturity stage Total Quality Management
  16. 16. Change Management  Change management is the process of developing a planned approach to change in an organization. Typically the objective is to maximize the collective benefits for all people involved in the change and minimize the risk of failure of implementing the change. The discipline of change management deals primarily with the human aspect of change, and is therefore related to pure and industrial psychology.  The forces of change are of two types: External forces and internal forces. People resist change for various reasons. Kotter and Schlesinger set out the six change approaches to deal with this resistance to change. Total Quality Management
  17. 17. MANAGING CHANGE Total Quality Management