3. Learning Objectives
• Understand the definition of a leader and the characteristics
of a quality leader
• Importance of principle-centered leadership based on
character ethics rather than personality ethics
• Role of leadership in building a foundation of ethical
standards in the organization
• Appreciate and understand Deming’s philosophy and
14-points as a framework for TQM
• Importance of commitment and involvement of leadership
and management in TQM implementation
• Understand the structure and functions of quality council in
order to drive TQM implementation
• Setting direction for TQM efforts, creating vision, mission,
quality policy and establishing strategic objectives
4. 4
• Management is doing things right; leadership
is doing the right things.
– Peter Drucker
5. 5
Define Leadership
• There is no universal definition of leadership and
indeed many books have been devoted to the topic
of leadership.
• James McGregor described leadership as one who
instills purposes, not one who controls by brute
force.
• A leader strengthens and inspires the followers to
accomplish shared goals.
6. 6
The Malcolm Baldrige Quality Award’s definition of
Leadership
An organization’s senior leadership should:
• Set direction and create a customer focus.
• Create clear and visible values, and high expectations
• These directions, values and expectations should balance
the needs of all your stakeholders.
• Ensure the creation of strategies, systems, and methods for
achieving excellence, stimulating innovations, and building
knowledge and capabilities
7. 7
The Malcolm Baldrige Quality Award’s definition of
Leadership
• The values and strategies should help guide all activities and
decisions of your organization.
• Senior leaders should inspire and motivate your entire
workforce and should encourage all employees to contribute,
to develop and learn, to be innovative, and to be creative.
• Senior leadership should serve as role models through their
ethical behavior and their personal involvement in planning,
communications, coaching and development of future
leaders.
• As a role models, they can reinforce values and expectations
while building leadership, commitment, and initiative
throughout your organization.
8. 8
Getting quality results is not a short-term,
instant-pudding way to improve
competitiveness; implementing total quality
management requires hands-on, continuous
leadership
Armand V. Feigenbaum
9. Characteristics of Good Leader
1. Priority attention to external and internal
customers and their needs
2. They empower, rather than control, subordinates
3. They emphasize improvement rather than
maintenance
4. They emphasize prevention rather than cure
5. They encourage collaboration rather than
competition
6. They train and coach, rather than direct and
supervise
10. Characteristics of Good Leader
(Continued)
7. They learn from problems
8. They continually try to improve communications
9. They continually demonstrate their commitment
to quality
10. They choose suppliers on the basis of quality, not
price
11. They establish organizational systems to support
the quality effort.
12. They encourage and recognize team effort
11. The 7 Habits of Highly Effective People
1. Be Proactive
2. Begin with the End in Mind
3. Put First Things First
4. Think Win-Win
5. Seek First to Understand, Then to Be
Understood
6. Synergy
7. Sharpen the Saw
12. 12
The 7 Habits of Highly Effective People
1. Be Proactive
Taking responsibility for your life—the ability to choose the response to a
situation.
Proactive behavior is the outcome of conscious choice based on values, rather
than reactive behavior, which is based on feelings.
Reactive people let circumstances, conditions, or their environment tell them
how to respond.
Proactive people let carefully thought-about, selected, and internalized values
tell them how to respond.
It’s not what happens to us but our response that differentiates the two behaviors.
13. 13
The 7 Habits of Highly Effective People
2.Begin with the End in Mind
•Each part of your life can be examined in terms of what really matters
to you—a vision of your life as a whole.
•All things are created twice—there’s a mental or first creation and a
physical or second creation to all things.
•To build a house you first create a blueprint and then construct the
actual house.
•You create a speech on paper before you give it.
•If you want to have a successful organization you begin with a plan
that will produce the appropriate end;
•thus leadership is the first creation, and management, the second.
•Leadership is doing the right things and management is doing things
right.
14. 14
The 7 Habits of Highly Effective People
3.Put First Things First
Habit 1 says, “You’re the creator. You are in
charge.”
Habit 2 is the first creation and is based on
imagination—leadership based on values.
Habit 3 is practicing self-management and
requires Habits 1 and 2 as prerequisites.
15. 15
• The Time Management Matrix is diagrammed above
• Urgent means it requires immediate attention, and important has
to do with results that contribute to your mission, goals, and
values.
16. 16
The results of too much time in Q1 are:
• Stress and anxiety • Feeling burnt out
• Mediocre performance
Planning ahead is simply out of the
question for the Procrastinator because
it will ruin the excitement of doing
everything at the last possible moment.
The Procrastinator is addicted to
urgency. …. put things off … put things
off … put things off . . . until it becomes
a crisis.
17. 17
Q3 represents things that are urgent but not important. It
is characterized by trying to please other people and
responding to their every desire.
The results of spending too much time in Q3 are:
• Feeling like a follower rather than a leader • Lack of
discipline • Feeling like a doormat for others to wipe their
feet on.
18. 18
The results of living in Q4 are:
• Lack of responsibility • Guilt • Flakiness
• Missing out on adventures
Q4 is the category of waste
and excess. These activities
are neither urgent nor
important.
19. 19
• Effective, proactive people spend most of their time in
Quadrant II, thereby reducing the time spent in Quadrant I.
Four activities are necessary to be effective.
• First, write down your key roles for the Week.
• Second, list your objectives for each role using many Quadrant
II activities. These objectives should be tied to your personal
goals or philosophy developed in Habit 2.
• Third, schedule time to complete the objectives.
• Fourth, adapt the weekly schedule to your daily activities.
20. 20
The 7 Habits of Highly Effective People
4.Think Win-Win
Win-Win embraces five interdependent dimensions of life—character,
relationships, agreements, systems, and processes.
Character involves the trains of integrity; maturity, which is a balance between
being considerate of others and the courage to express feelings; and abundance
mentality, which means that there is plenty out there for everyone.
Relationships means that the two parties trust each other and are deeply
committed to Win-Win.
Agreements require the five elements of desired results, guidelines, resources,
accountability, and consequences. Win-Win agreements can only survive in a
system that supports it.
In order to obtain Win-Win, a four-step process is needed:
(1) see the problem from the other viewpoint,
(2) identify the key issues and concerns,
(3) determine acceptable results, and
(4) seek possible new options to achieve those results.
21. 21
The 7 Habits of Highly Effective People
5.Seek First to Understand, Then to Be Understood
• Empathic Listening is the key to effective
communication.
• It focuses on learning how the other person sees the
world, how they feel, deeply understand that person,
emotionally as well as intellectually.
• Next to physical need, the need of a human being is
psychological survival—to be understood.
• ethos, pathos, and logos - Ethos is your personal
credibility or character;
• pathos is the empathy you have with the other person’s
communication; and
• logos is the logic or reasoning part of your presentation
22. 22
The 7 Habits of Highly Effective People
6.Synergy
• Together, we can accomplish more than any of us
can accomplish alone.
7.Sharpen the Saw
• It’s renewing the four dimensions of your nature—
– Physical - good nutrition, rest and relaxation, and regular
exercise
– Spiritual -prayer, meditation, and spiritual reading
– Mental - reading, seminars, and writing, and
– Social/emotional - relationship with others.
23. Ethics
• Ethics is a body of principles or standards of human conduct
that govern the behaviour of individuals and organizations.
• It is knowing what is the right thing to do and is learned
when one is growing up, or at a later date during an
organization’s ethics training program.
• Some companies known for their ethics:
– HDFC, Infosys, Tata Steel, Wipro
• Companies known for unethical practices:
– Satyam Computers –CEO Ramalingam Raju admitted that lot of
money was siphoned and the profits shown in the books were
NOT REAL.
– Kingfisher Airlines -In 2012, Kingfisher Airlines deferred the salary
payment of any of its employees and taxes when it faced financial
problems. It also started routinely cancelling scheduled flights
resulting in serious loss of credibility.
24. Ethical Practices: Recent Examples
• Nirav Modi case show how unethical behavior does not pay in the
long run. The multi-crore scam is apprehended to be of a value
greater than Rs.11,400 crore. Under this scam fraudulent LoUs
were issued by PNB so that neither the margin money amount was
given by the credit seeker, who here is Mr. Nirav Modi, nor a credit
limit was sanctioned. Further, in the said scam, the credit
prescribed or laid down in the rules was not followed and it was
extended for over 90 days. A significant loss to PNB.
• Ethical behavior is essential in all fields: whether business, sports,
film industry or social organizations. In March 2018, Steve Smith,
who was captain of Australian cricket team, David Warner, the
vice-captain and Cameron Bancroft were involved in tampering the
ball while playing against South Africa. As a result, they faced a
strong disciplinary action jeopardizing their cricket carrier.
• Another example has been of Facebook in 2018 when Mark
Zukerberg apologized as it could not protect privacy of data of its
users. "This was a breach of trust and I’m sorry we didn’t do more
at the time,” wrote Zuckerberg. “I promise to do better for you.”
25. The Deming Philosophy: 14 Points
1. Create constancy of purpose
2. Learn the New Philosophy
3. Understand the Purpose of
Inspection
4. Stop Awarding Business Based
on Price Alone
5. Improve Constantly and Forever
the System
6. Institute Training
7. Teach and Institute Leadership
8. Drive Out Fear, Create Trust,
and Create a Climate for
Innovation
9. Optimize the Efforts of Teams,
Groups, and Staff Areas
10. Eliminate Exhortations for the
Work Force
11. Eliminate Numerical Quotas for
the Work Force and Eliminate
Management by Objective
12. Remove Barriers That Rob
People of Pride of
Workmanship
13. Encourage Education and
Self-Improvement for Everyone
14. Take Action to Accomplish the
Transformation
26. Role of TQM Leaders in TQM implementation
• Management by Wandering Around (MBWA)
– Must visit customers, suppliers, plants
– The Japanese call this Gemba Leadership. The term gemba refers to
workplace where value gets added.
– Frederick Winslow Taylor and Henry Ford both recognized its virtues,
and Ford practiced it to excess; he spent so much time in his factory that
unopened bills and payments tended to pile up on his desk!
• Push problem solving and decision making to the lowest appropriate level
by delegating authority and responsibility
• Provide resources to train employees in the TQM tools and techniques, the
technical requirements of the job, and safety
• Celebrate the success of their organization’s quality efforts by personally
participating in award and recognition ceremonies
• Senior managers must be visibly and actively engaged in the quality effort
• TQM message must be “sold” to personnel, else, TQM will never happen
27. Implementing TQM
• TQM implementation process begins with senior management and,
most important, the CEO’s commitment
• Senior management needs to be educated in the TQM concepts
• The active involvement of middle managers and first-line
supervisors is essential to the success of the TQM effort
– Managers at all levels have an opportunity, as soon as possible,
to develop ownership in the TQM effort and a chance to
acquire the insight and skills necessary to become leaders
• Involve union leaders by sharing with them implementation plans
for TQM
• Everyone needs to be trained in quality awareness and problem
solving
• Conduct customer and employee surveys to identify opportunities
for improvement
28. Quality Council
• Quality council is established to provide overall direction
– council is composed of the CEO; heads of the functional areas, such as
design, marketing, finance, production, and quality; and a coordinator
or consultant.
• Responsibility of the coordinator
– Build two-way trust
– Propose team needs to the council
– Share the council expectations with the team, and brief the
council on team progress.
– Ensure that the teams are empowered and know their
responsibilities.
The coordinator’s activities are to
– Assist the team leaders, share lessons learned among teams,
and have regular leaders’ meetings.
29. Duties of the quality council
1. Develop, with input from all personnel, the core values, vision
statement, mission statement, and quality policy statement.
2. Develop the strategic long-term plan with goals and the annual
quality improvement program with objectives.
3. Create the total education and training plan.
4. Determine and continually monitor the cost of poor quality.
5. Determine the performance measures for the organization,
approve those for the functional areas, and monitor them.
6. Continually determine those projects that improve the processes,
particularly those that affect external and internal customer
satisfaction
7. Establish multifunctional project and departmental or work group
teams and monitor their progress.
8. Establish or revise the recognition and reward system to account
for the new way of doing business.
30. Core Values, Concepts, and Framework
• Visionary Leadership
• Customer-Driven Excellence
• Organizational and Personal Learning
• Valuing Employees and Partners
• Agility
• Focus on the Future
• Managing for Innovation
• Management by Fact
• Public Responsibility and Citizenship
• Focus on Results and Creating Value
• Systems Perspective
31. Quality Statements
• Vision Statement
– The vision statement is a short declaration of what an
organization aspires to be tomorrow
• Mission Statement
– The mission statement answers the following
questions: who we are, who are the customers, what
we do, and how we do it.
• Quality Policy Statement
– The quality policy is a guide for everyone in the
organization as to how they should provide products
and service to the customers
36. Strategic Planning
• Goals and Objectives
– Concrete goals are needed to provide a focus, such as improve customer
satisfaction, employee satisfaction, and processes
– Goals must be based on statistical evidence
– Goals must have a plan or method with resources for its achievement
– Goals must be challenging yet achievable
• Seven Steps to Strategic Planning
1. discover the future needs of the customers
2. Decide Customer Positioning
3. Predict the Future
4. Identify the gaps between the current state and the future state of the
organization
5. Develop plan to close the gaps by establishing goals and responsibilities
6. Align the plan with the mission, vision, and core values
7. Implementation
37. Strategic Planning: Hoshin Kanri
One of the approaches for strategic planning in
Japanese companies is Hoshin Kanri. The term
Hoshin Kanri has four components
• Ho – means Direction.
• Shin – refers to Focus.
• Kan – refers to Alignment.
• Ri – means Reason.
38. Strategic Planning: Hoshin Kanri
Japanese Total Quality Management (TQM) is founded on the
principles that each individual in an organization is recognized as
being the expert in their own job, that humans seek recognition
and want to be involved and are motivated by a desire to be
recognized as a contributor to the success of the community to
which they belong. Hoshin Kanri can be summarized as:
1. Develop the vision and goals to realize it.
2. Development of Strategy, Policy, Benchmarking and Targets.
3. The deployment of the Targets must be to all levels through a
cascaded process and the creation of policy at each level of
management.
4. Establish a feedback loop of results to complete the
Plan-Do-Check-Act (PDCA) Cycle which is the Shewhart Cycle
(which sometimes nowadays referred to as the Deming
Wheel).
39. Strategic Planning: Hoshin Kanri
Sometimes an X-matrix template is used for Hoshin Kanri as shown
in the following figure
(Figure Reproduced with permission from Institute of Quality and Reliability,
www.world-class-quality.com)
40. Strategic Planning: Creating Line of Sight:
Line of sight is defined as “an employee understanding the strategic
objectives of an organization and how to contribute to those objectives”.
By being able to make the connection between the overall direction and
goals of the organization to the individual employee, the employee is then
able to see how their job, goals and career “fit”. Line of sight also gives
employees a clearer understanding of what is expected of them and how
their contributions impact the organization.
Line of Sight (LOS) performance management creates clear and visible
links between the goals and objectives you are trying to achieve; the
measures and metrics that will help guide you toward those outcomes,
and the activities and initiatives occurring daily at the work-place. Most
importantly, it provides a set of navigational aids to maintain that focus
throughout the pursuit and achievement of your business goals.
41. Communications
• Interactive
– The most effective communication allows for
discussions between the employees and their
supervisor, not just management talking to
employees
• Formal
– face-to-face interaction must be supplemented with
other communication methods to reinforce the
message
42. Summary
• Senior leadership of an organization should set direction,
create clear vision, inculcate customer focus, nurture values
and set clear expectations to motivate employees and
suppliers.
• Stephen Covey’s The Seven Habits of Highly Effective People
provides a foundation of ethical and principle centred
leadership to drive TQM implementation.
• Deming’s 14 points also provide guidance to decide the
policies and direction.
• It is critically important that leadership and senior
management demonstrates their commitment and
involvement through their actions for the success of TQM.
• A quality committee consists of leadership and functional
leaders. This committee establishes the objectives and
roadmap and provides resources for TQM implementation.
• Techniques such as Hoshin Kanri, Line of Sight can be used
to deploy strategic planning objectives.
