tqm 4th chapter
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Chapter 4Chapter 4Chapter 4Chapter 4
Leadership andLeadership and
Strategic Strategic PlanningPlanning
LeadershipLeadership
The ability to positively The ability to positively influence people and systems influence people and systems under one’s authority to have under one’s authority to have a meaningful impact and a meaningful impact and achieve important resultsachieve important results
Strategic PlanningStrategic Planning
The process of envisioning The process of envisioning an organization’s future and an organization’s future and developing the necessary developing the necessary goals, objectives, and action goals, objectives, and action plans to achieve that future.plans to achieve that future.
The Baldrige “Leadership The Baldrige “Leadership Triad”Triad”
Leadership
Strategic Planning
Customer andMarket Focus
Operations
Executive LeadershipExecutive Leadership
Defining and communicating business directionsDefining and communicating business directions Ensuring that goals and expectations are metEnsuring that goals and expectations are met Reviewing business performance and taking Reviewing business performance and taking
appropriate actionappropriate action Creating an enjoyable work environmentCreating an enjoyable work environment Soliciting input and feedback from customersSoliciting input and feedback from customers Ensuring that employees are effective Ensuring that employees are effective
contributorscontributors Motivating, inspiring, and energizing employeesMotivating, inspiring, and energizing employees Recognizing employee contributionsRecognizing employee contributions Providing honest feedbackProviding honest feedback
Key IdeaKey Idea
Effective leadership requires five core leadership skills: vision, empowerment, intuition, self-understanding, and value congruence.
Dale Crownover, President, Texas Nameplate Co.
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Leading Practices – Leading Practices – Leadership Leadership (1 of 2)(1 of 2)
Leading Practices – Leading Practices – Leadership Leadership (1 of 2)(1 of 2)
Create a customer-focused strategic Create a customer-focused strategic vision and clear quality valuesvision and clear quality values
Create and sustain leadership system Create and sustain leadership system and environment for empowerment, and environment for empowerment, innovation, and organizational learninginnovation, and organizational learning
Set high expectations and Set high expectations and demonstrate personal commitment demonstrate personal commitment and involvement in qualityand involvement in quality
Integrate quality values into daily Integrate quality values into daily leadership and management and leadership and management and communicate extensivelycommunicate extensively
Leading Practices – Leading Practices – Leadership Leadership (2 of 2)(2 of 2)
Review organizational performanceReview organizational performance Create an environment and Create an environment and
governance system that fosters governance system that fosters legal and ethical behaviorlegal and ethical behavior
Integrate public responsibilities and Integrate public responsibilities and community support into business community support into business practicespractices
Leadership TheoriesLeadership Theories
Trait approachTrait approach Behavioral approachBehavioral approach Contingency (situational) approachContingency (situational) approach Role approachRole approach Emerging theories: Emerging theories:
– Attributional theory Attributional theory – Transactional theory Transactional theory – Transformational leadership theoryTransformational leadership theory– Substitutes for leadership theorySubstitutes for leadership theory– Emotional intelligence theoryEmotional intelligence theory
Key IdeaKey Idea
Some of the newer theories, such as attributional, transactional, and emotional intelligence theories, enter the realm of human emotions to explain how good leaders seem to succeed, and where mediocre ones show mixed results or fail to accomplish their goals.
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Leadership SystemLeadership SystemLeadership SystemLeadership System
Leadership systemLeadership system – how decisions – how decisions are made, communicated, and are made, communicated, and carried out at all levels; mechanisms carried out at all levels; mechanisms for leadership development, self-for leadership development, self-examination, and improvementexamination, and improvement
Effectiveness of leadership system Effectiveness of leadership system depends in part on its organizational depends in part on its organizational structurestructure
Key IdeaKey Idea
An effective leadership system respects the capabilities and requirements of employees and other stakeholders, and sets high expectations for performance and performance improvements.
GovernanceGovernance
Governance – the system of management and controls exercised in the stewardship of an organization.– Approving strategic direction– Monitoring and evaluating CEO
performance– Succession planning– Financial auditing– Executive compensation– Disclosure– Shareholder reporting
Leadership and Social Leadership and Social Responsibilities Responsibilities
EthicsEthics Health, safety, and environmentHealth, safety, and environment Community supportCommunity support
Key IdeaKey Idea
Practicing good citizenship refers to leadership and support—within the limits of an organization’s resources—of publicly important purposes, including improving education, community health, environmental excellence, resource conservation, community service, and professional practices.
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Strategic PlanningStrategic PlanningStrategic PlanningStrategic Planning
Goals to be achievedGoals to be achieved Policies to guide or limit actionPolicies to guide or limit action Action sequences, or programs, that Action sequences, or programs, that
accomplish the goalsaccomplish the goals
““A strategy is a pattern or plan that integrates A strategy is a pattern or plan that integrates an organization’s major goals, policies, and an organization’s major goals, policies, and action sequences into a cohesive whole.”action sequences into a cohesive whole.”
FormalFormal strategy includes:strategy includes:
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Leading Practices - Leading Practices - Strategic PlanningStrategic PlanningLeading Practices - Leading Practices - Strategic PlanningStrategic Planning
Active participation of top management, Active participation of top management, employees, customers, suppliersemployees, customers, suppliers
Systematic planning systems for strategy Systematic planning systems for strategy development and deploymentdevelopment and deployment
Use of a variety of external and internal Use of a variety of external and internal datadata
Align short-term action plans with long-Align short-term action plans with long-term strategic objectives, communicate term strategic objectives, communicate them, and track progressthem, and track progress
Derive human resource plans from Derive human resource plans from strategic objectives and action plansstrategic objectives and action plans
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Strategic Planning ProcessStrategic Planning ProcessStrategic Planning ProcessStrategic Planning Process
Mission Vision Guiding Principles
Environmental assessment
Strategies
Strategic Objectives
Action Plans
Broad statements of direction
Capabilities and risks
Things to change or improve
Implementation
Reason for existence Future intent Attitudes and policies
MissionMission
Definition of products and services, Definition of products and services, markets, customer needs, and markets, customer needs, and distinctive competenciesdistinctive competencies
SolectronSolectron: “…to provide worldwide : “…to provide worldwide responsiveness to our customers by responsiveness to our customers by offering the highest quality, lowest offering the highest quality, lowest total cost, customized, integrated, total cost, customized, integrated, design, supply chain, and design, supply chain, and manufacturing solutions through long-manufacturing solutions through long-term partnerships based on integrity term partnerships based on integrity and ethical business practices.”and ethical business practices.”
VisionVision
Where the organization is headed and Where the organization is headed and what it intends to bewhat it intends to be– Brief and memorable - grab attentionBrief and memorable - grab attention– Inspiring and challenging - creates excitementInspiring and challenging - creates excitement– Descriptive of an ideal state - provides Descriptive of an ideal state - provides
guidanceguidance– Appealing to all stakeholders - employees can Appealing to all stakeholders - employees can
identify withidentify with SolectronSolectron: “Be the best and continuously : “Be the best and continuously
improve”improve”
Values (Guiding Values (Guiding Principles)Principles)
Define attitudes and policies for Define attitudes and policies for all employees, which are all employees, which are reinforced through conscious and reinforced through conscious and subconscious behavior at all subconscious behavior at all levels of the organization.levels of the organization.
PepsicoPepsico: integrity, honesty, : integrity, honesty, teamwork, accountability, teamwork, accountability, balancebalance
Environmental Environmental AssessmentAssessment
Customer and market requirements, Customer and market requirements, expectations, and opportunitiesexpectations, and opportunities
Technological and other innovationsTechnological and other innovations Organizational strengths and weaknessesOrganizational strengths and weaknesses Financial, societal, ethical, regulatory and Financial, societal, ethical, regulatory and
other potential risksother potential risks Changes in global or national economyChanges in global or national economy Factors unique to the organization, such Factors unique to the organization, such
as partner and supply chain needs as partner and supply chain needs
Key IdeaKey Idea
Strategies are broad statements that set the direction for the organization to take in realizing its mission and vision.
Strategic objectives are what an organization must change or improve to remain or become competitive.
Action plans are things that an organization must do to achieve its strategic objectives.
Strategy DeploymentStrategy Deployment
Developing detailed action plans, defining resource requirements and performance measures, and aligning work unit, supplier, or partner plans with overall strategic objectives.
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Policy Deployment Policy Deployment (Hoshin Kanri)(Hoshin Kanri)Policy Deployment Policy Deployment (Hoshin Kanri)(Hoshin Kanri)
Top management vision leading to Top management vision leading to long-term objectiveslong-term objectives
Deployment through annual Deployment through annual objectives and action plansobjectives and action plans
Negotiation for short-term objectives Negotiation for short-term objectives and resources (catchball)and resources (catchball)
Periodic reviewsPeriodic reviews
See Figure 5.6!See Figure 5.6!
Key IdeaKey Idea
Strategic objectives and action plans often require significant changes in human resource requirements, such as redesigning the work organization or jobs to increase employee empowerment and decision making, promoting greater labor/management cooperation, modifying compensation and recognition systems, or developing new education and training initiatives.
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The Seven Management The Seven Management and and Planning ToolsPlanning Tools
The Seven Management The Seven Management and and Planning ToolsPlanning Tools
Affinity diagramsAffinity diagrams Interrelationship digraphsInterrelationship digraphs Tree diagramsTree diagrams Matrix diagramsMatrix diagrams Matrix data analysisMatrix data analysis Process decision program chartsProcess decision program charts Arrow diagramsArrow diagrams
Leadership and Leadership and Organizational StructureOrganizational Structure
Basic types of organizational Basic types of organizational structuresstructures– Line organizationLine organization– Line and staff organizationLine and staff organization– Matrix organizationMatrix organization
Key IdeaKey Idea
As more and more companies accept the process view of organizations, they are structuring the quality organization around functional or cross-functional teams.
Leadership in the Baldrige Leadership in the Baldrige CriteriaCriteria
The LeadershipThe Leadership Category examines how an organization’s Category examines how an organization’s senior leaders address values, directions, and performance senior leaders address values, directions, and performance expectations, as well as a focus on customers and other expectations, as well as a focus on customers and other stakeholders, empowerment, innovation, and learning. Also stakeholders, empowerment, innovation, and learning. Also examined is the organization’s governance and how the examined is the organization’s governance and how the organization addresses its public and community organization addresses its public and community responsibilities.responsibilities.
1.1 Organizational Leadership1.1 Organizational Leadershipa. Senior Leadership Directiona. Senior Leadership Directionb. Organizational Governanceb. Organizational Governanceb. Organizational Performance Reviewb. Organizational Performance Review
1.2 Social Responsibility1.2 Social Responsibilitya. Responsibilities to the Publica. Responsibilities to the Publicb. Ethical Behaviorb. Ethical Behaviorc. Support of Key Communitiesc. Support of Key Communities
Strategic Planning in the Strategic Planning in the Baldrige CriteriaBaldrige Criteria
The Strategic PlanningThe Strategic Planning Category examines how an Category examines how an organization develops strategic objectives and organization develops strategic objectives and action plans. Also examined are how chosen action plans. Also examined are how chosen strategic objectives and action plans are deployed strategic objectives and action plans are deployed and how progress is measured.and how progress is measured.
2.1 Strategy Development2.1 Strategy Developmenta. Strategy Development Processa. Strategy Development Processb. Strategic Objectivesb. Strategic Objectives
2.2 Strategy Deployment2.2 Strategy Deploymenta. Action Plan Development and a. Action Plan Development and
DeploymentDeploymentb. Performance Projectionb. Performance Projection
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