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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
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
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
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
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
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
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
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
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
Evolution of CSR
•

Ethical Model

•

Statist Model

•

Liberal Model

•

Stakeholder Model.

Total Quality Management
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
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
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
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
Five Stages of Quality Culture


Dormant Stage



Awakening Stage



Groping stage



Action Stage



Maturity stage
Total Quality Management
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
MANAGING CHANGE

Total Quality Management

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Chapter 4

  • 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. 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. 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. 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. 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. 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. 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. 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. 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. Evolution of CSR • Ethical Model • Statist Model • Liberal Model • Stakeholder Model. Total Quality Management
  • 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. 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. 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. 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. Five Stages of Quality Culture  Dormant Stage  Awakening Stage  Groping stage  Action Stage  Maturity stage Total Quality Management
  • 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