Leadership & strategic Planning for Total Quality Management (TQM)

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In this presentation, we will talk in details about leadership as an imperceptible quality for an effective business, seven habits of highly effective people and seven tools on management and planning, models for TQM leadership, strategic quality management and steps creating TQM culture.
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Leadership & strategic Planning for Total Quality Management (TQM)

  1. 1. Total Quality ManagementChapter 6 Leadership and Strategic planning For TQM Chapter6 1
  2. 2. Leadership and Strategic planning For TQMManagers all over the world recognize theessential role that effective leadership plays inorganizational performance. Effective businessleadership is an imperceptible quality for many.Leaders are capable not only to differentiate theresults of their companies; they also candifferentiate the satisfaction levels of the peopleworking within these companies. According to thelast national research, getting along with the bossis the number one factor that influences jobhappiness Chapter6 2
  3. 3. Leadership and Strategic planning For TQM There is a profound difference betweenmanagement and business leadership, and bothare important. To manage means to bring about, toaccomplish, to have charge of or responsibilityfor, to conduct. Leading in business isinfluencing, guiding in direction, course, action,opinion. The distinction is crucial. Managers are peoplewho do things right and leaders are people whodo the right thing. Chapter6 3
  4. 4. Leadership and Strategic planning For TQM The difference may be summarized as activitiesof vision and judgmenteffectiveness versusactivities of mastering routinesefficiency Managers are responsible for the coordination,procurement and distribution of human and materialresources that are necessary for an organization . The abilities of a manager facilitate the work ofan organization because they guarantee that allactivities and actions are done in accordance withthe rules and regulations of an organization. Chapter6 4
  5. 5. Leadership and Strategic planning For TQMExecutive leadership which focus the role of seniormangers in guiding organization.A. Create an Inspiring Vision & Lead by Example1. Create an inspiring vision, establish shared values,give direction and set stretch goals2. Create change, lead change, manage resistance tochange3. Lead by example; practice what you preach; set anexample, and share risks or hardship4. Demonstrate confidence; win respect and trustwithout courting popularity Chapter6 5
  6. 6. Leadership and Strategic planning For TQMB. Empower, Inspire, and Energize PeopleBe enthusiastic; inspire and energize people,create a positive work environment6. Empower people; delegate authority; beopen to ideas; have faith in the creativity of others7. Communicate openly and honestly; giveclear guidelines; set clear expectations8. Be willing to discuss and solve problems;listen with understanding; support and help Chapter6 6
  7. 7. Leadership and Strategic planning For TQMC. Build and Lead a Team9. Use team approach; facilitate cooperation;involve everyone; trust your group; rely on theirjudgment10. Bring out best in your people; have commontouch with them; coach and provide feedback11. Permit group decision; help your team reachbetter decisions12. Dont micromanage; avoid close supervision;do not over boss; do not dictate or rule by the book Chapter6 7
  8. 8. Leadership and Strategic planning For TQM Deming’s 14 Points3©1. Create constancy of purpose2. Adopt philosophy of prevention3. Cease mass inspection4. Select a few suppliers based on quality5. Constantly improve system and workers6. Institute worker training7. Instill leadership among supervisors Chapter6 8
  9. 9. Leadership and Strategic planning For TQM8. Eliminate fear among employees3©9. Eliminate barriers between departments10. Eliminate slogans11. Remove numerical quotas12. Enhance worker pride13. Institute vigorous training &education programs14. Implement these 13 points Chapter6 9
  10. 10. The Seven Habits of Highly Effective PeopleThe Seven Habits of Highly Effective People, first published in 1989, is a self-help book written by Stephen R. Covey.The Seven Habits1. 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
  11. 11. The Seven Habits of Highly Effective People Being "proactive" means taking responsibility foreverything in life. When youre reactive, you blameother people and circumstances for obstacles orproblems. Initiative, and taking action will thenfollow. Covey shows how man is different from animalsin that he has self consciousness. He has the ability todetach himself and observe his own self, think abouthis thoughts. He goes on to say how this attribute enables him.It gives him the power not to be affected by his Chapter6 11circumstances.
  12. 12. The Seven Habits of Highly Effective People 2.Begin with the End In Mind. This chapter is about setting long-term goals basedon "true-north principles". Covey recommends toformulate a "personal mission statement" to documentones perception of ones own purpose in life. He sees visualization as an important tool todevelop this. He also deals with organizationalmission statements, which he claims to be moreeffective if developed and supported by all membersof an organization, rather than being prescribed. Chapter6 12
  13. 13. 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
  14. 14. The Seven Habits of Highly Effective People6. 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
  15. 15. Peters Model For TQM LeadershipCare of customers Constant Innovation Leadership People(internal Customer Chapter6 15
  16. 16. Custom research (CRI) Leadership System Lead with VisionLearn & Steering Inform &Improve Committee develop Plan & align Chapter6 16
  17. 17. Leadership CRI Star ResultsRelationship People Surprise & Delight Requirements Processes Chapter6 17
  18. 18. 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
  19. 19. Strategic Quality management To be effective, strategic quality planning must beused as a tool, a means to an end, and not as the goalitself. Integrating Quality and Strategic PlanningThe past few years has seen an increasing emphasison strategic quality management. Companies recognize that the true key to businessexcellence is integrating quality goals and actionsinto the organizations strategic and operationalplans. Chapter6 19
  20. 20. Strategic Quality management This process of defining a customer-focusedvision, stating the objectives and integratingquality goals into the companys strategic andannual business plans is often called strategicquality planning. For many years, it was one of the MalcolmBaldrige National Quality Award criteria. Chapter6 20
  21. 21. Strategic Quality management In the United States, this process is known asstrategic quality management. The elements ofstrategic quality management are not too difficultto understand. At the 30th Anniversary Congress of the AsianProductivity Organization, Hideo Sugiura, formerchairman of Honda Motor Co., explained the rolesof senior management and strategic qualitymanagement clearly. Chapter6 21
  22. 22. Strategic Quality management Sugiura described four "sacred obligations" ofmanagement: Have a clear vision of where the company isgoing. This must be clearly stated andcommunicated to every member of the organizationin language he or she understands. Define clearly the small number of key objectivesthat must be achieved for the company to realize itsvision. . Chapter6 22
  23. 23. Strategic Quality management Translate these key objectives throughout theentire organization so that each person knows howperforming his or her job helps the companyachieve objectives Provide a fair and honest appraisal so that eachand every employee knows how his or herperformance has contributed to the organizationsefforts to achieve the key objectives, accompaniedby guidance on how the individual can improvethis performance. Chapter6 23
  24. 24. Strategic Quality managementSimplified view of the strategic planning process is shown by the following diagram: The Strategic Planning ProcessMission Objectives Environmental ScanningStrategy Formulation Strategy Implementation Evaluation & Control Chapter6 24
  25. 25. Strategic Quality managementMission and Objectives The mission statement describes the companysbusiness vision, including the unchanging valuesand purpose of the firm and forward-lookingvisionary goals that guide the pursuit of futureopportunities. Guided by the business vision, the firms leaderscan define measurable financial and strategicobjectives. Financial objectives involve measures such assales targets and earnings growth. Chapter6 25
  26. 26. Strategic Quality management Strategic objectives are related to the firmsbusiness position, and may include measures suchas market share and reputation. Environmental Scan The environmental scan includes the followingcomponents:• Internal analysis of the firm•Analysis of the firms industry (task environment)•External macroenvironment (PEST analysis) Chapter6 26
  27. 27. Strategic Quality management The internal analysis can identify the firmsstrengths and weaknesses and the external analysisreveals opportunities and threats. A profile of the strengths, weaknesses,opportunities, and threats is generated by means ofa SWOT analysis An industry analysis can be performed using aframework developed by Michael Porter known asPorters five forces. This framework evaluates entrybarriers, suppliers, customers, substitute products,and industry rivalry. Chapter6 27
  28. 28. Strategic Quality managementStrategy Formulation Given the information from the environmentalscan, the firm should match its strengths to theopportunities that it has identified, while addressingits weaknesses and external threats. To attain superior profitability, the firm seeks todevelop a competitive advantage over its rivals. Acompetitive advantage can be based on cost ordifferentiation. Michael Porter identified three industry-independent generic strategies from which the firm Chapter6 28can choose.
  29. 29. Strategic Quality managementStrategy Implementation The selected strategy is implemented by means ofprograms, budgets, and procedures. Implementation involves organization of thefirms resources and motivation of the staff toachieve objectives. The way in which the strategy is implementedcan have a significant impact on whether it will besuccessful. In a large company, those who implement thestrategy likely will be different people from those Chapter6 29who formulated it.
  30. 30. Strategic Quality management For this reason, care must be taken tocommunicate the strategy and the reasoning behindit. Otherwise, the implementation might not succeedif the strategy is misunderstood or if lower-levelmanagers resist its implementation because they donot understand why the particular strategy wasselected. Chapter6 30
  31. 31. Strategic Quality managementEvaluation & ControlThe 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 measured2. Define target values for those parameters3. Perform measurements4. Compare measured results to the pre-defined standard5. Make necessary changes Chapter6 31
  32. 32. Management & planning tools for implementing policy deploymentThe 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 Diagram4. Prioritization Matrix5. Matrix Diagram6. Process Decision Program Chart (PDPC)7. Activity Network Diagram Chapter6 32
  33. 33. Management & planning tools for implementing policy deploymentAffinity DiagramThis 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
  34. 34. Management & planning tools for implementing policy deploymentInterrelationship DiagraphThis 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
  35. 35. Management & planning tools for implementing policy deploymentTree DiagramThis 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
  36. 36. Management & planning tools for implementing policy deploymentPrioritization MatrixThis 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
  37. 37. Management & planning tools for implementing policy deploymentMatrix DiagramThis 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
  38. 38. Management & planning tools for implementing policy deploymentProcess Decision Program Chart (PDPC) A useful way of planning is to break down tasksinto a hierarchy, using a Tree Diagram. The PDPC extends the tree diagram a couple oflevels to identify risks and countermeasures for thebottom level tasks. Different shaped boxes are used to highlight risksand identify possible countermeasures (often shown aclouds to indicate their uncertain nature). The PDPC is similar to the Failure Modes andEffects Analysis (FMEA) Chapter6 38
  39. 39. Management & planning tools for implementing policy deploymentActivity Network DiagramThis 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
  40. 40. The Westing house Total Quality Model TQM Requirement Customer Focus HR Excellence Product Leadership Management Leadership Chapter6 40
  41. 41. 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 themembers of an organization are sharing a systemof combined values and beliefs. Therefore organizations where the employeesare taking the center stage of the company areconsidered to be more successful than others. Based on that fact the 7-S-Model shows themultiplicity interconnectedness of all the sevenelements that define an organization’s ability tochange. Chapter6 41
  42. 42. Management & planning tools for implementing policy deployment Those elements are divided into the so called softfacts and the hard facts. Strategy, structure andsystems belong to the hard S´s. They are feasible andeasy to identify. The soft facts include skills, staff, style and theshared values. Soft facts are hardly feasible and theyare highly determined by the people at work in theorganization. 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
  43. 43. Developing Culture for TQMTo 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
  44. 44. Steps involved in creating TQM CultureStep1: Instituting management Accountability & deep sense of responsibility towards employeeStep2 : Instituting management’s thought and actions towards delighting its customersStep3 Removing organizational boundaries and internal competitionStep4 using fact based decision makingStep5 Use of kaizen continuous improvement must be encouragedStep6 Do not use specially designed structure for TQM Chapter6 44
  45. 45. Paths involved in creating TQM Culture•Create & maintain awareness of Quality•Providing evidence of managementleadership•Provide self deployment and empowerment•Provide participation as amends of inspiringaction•Provide recognition & awards Chapter6 45
  46. 46. Common languages in the company Top Management Language of Money Middle Management Language of (Money+Products) Lower Management Language of product Chapter6 46
  47. 47. Total Quality Management End Of Chapter 6 Chapter6 47
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