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Page 1: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

ASQ Orange EmpireNovember 1, 2013Dr. Phillip R RosenkrantzProfessor Emeritus, Cal Poly Pomona

Click icon to add picture

A Strategic Look at

Deming’s System of Profound

Knowledge

Page 2: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Quality Contributions to Strategic Planning Leadership aspects (Deming SPK & Baldrige Award)Systems thinking (Not ingrained in strategic planning)Tools for analyzing SWOT and including VOC

Page 3: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Outline

Part 1 - Overview of Dr. Deming’s Teachings and Impact

Part 2 – Primer on Traditional Strategic Planning

Part 3 – Integration of Quality Tools with Examples Ex. 1 - Affinity Process – SWOT Analysis Ex. 2 - Affinity Process – Plan Implementation Ex. 3 - Affinity Process – Trend Analysis Ex. 4 - Kaizen for Management – Marketing

Campaign Ex. 5 - QFD – Stakeholder Review of Strategic

Plan

Objective – Show how systems and stakeholder driven quality tools can be used in strategic planning

Page 4: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Part 1 - History of Quality and Overview of Dr. Deming’s Teachings and Impact - Dr. W. Edwards Deming Is known as the Father of the Japanese Post-war Industrial revival and was regarded by many as the leading quality guru in the United States.

Page 5: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Dr. W. Edwards Deming

In addition to his other education, Dr. Deming studied under Walter Shewhart who introduced SPC.

Dr. Deming worked with census data for the U.S. Government.

During WWII he was asked to implement SPC and Acceptance Sampling for the defense industry.

After WWII American management went back to their former inspection-based methods.

Page 6: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Reviving JapanDeming was invited to Japan around 1950 by Japanese industrial leaders and engineers.

He guided them on how to implement quality control.

Awarded Second Order of the Sacred Treasure

Japanese scientists and engineers named the famed Deming Prize after him.

Click icon to add picture

Page 7: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Out of the Crisis

Due to popular demand Deming conducted an intensive four-day seminar for managers and educators across the country

Deming published an explanation of his philosophies and concepts for managers in 1986 in his book: Out of the Crisis

Deming’s first book expounded on some of these concepts as well titled: The New Economics (1984, 2000)

Page 8: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Deming’s 14 points for Management

The 14 points are the basis for transformation of American industry.

Not simply a matter of solving problems

Management is responsible for creating the culture and improving the systems they operate with.

The 14 points apply to all organizations.

Page 9: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Deming’s 14 Points for Management

1. Create constancy of purpose

2. Adopt philosophy of prevention

3. Cease mass inspection

4. Select a few suppliers based on quality

5. Constantly improve system and workers

6. Institute worker training

7. Instill leadership among supervisors

8. Eliminate fear among employees

9. Eliminate barriers between departments

10. Eliminate slogans

11. Remove numerical quotas

12. Enhance worker pride

13. Institute vigorous training

14. Take action

Page 10: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Deming’s Seven Deadly Diseases of Management

Lack of constancy of purpose

Emphasis on short-term profits

Evaluation by performance, merit rating, or annual review of performance

Mobility of management

Running a company on visible figures alone

Excessive medical costs

Excessive costs of warranty, fueled by lawyers who work for contingency fees

Page 11: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Deming’s System of Profound Knowledge

Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts: Appreciation of a system: understanding the overall

processes involving suppliers, producers, and customers (or recipients) of goods and services.

Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements.

Theory of knowledge: the concepts explaining knowledge and the limits of what can be known.

Knowledge of psychology: concepts of human nature.

Page 12: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Essential Deming

Management is responsible for the system and for managing processes with continuous improvement. Manage change, not results.

Management needs to understand the difference between common cause variation and assignable cause variation and manage accordingly

Best efforts are not good enough. Need continuous improvement based on theory and knowledge.

Cooperation—not competition. Management needs to understand people and how to lead them.

It’s About Leadership & Transformation

Page 13: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

What Does Strategic Planning Mean to You?

Articulated Plan: Mission, Vision, SWOT (Strengths, Weaknesses, Opportunities, Threats), Goals, Plans

Strategic Differentiation - Market data, Customer feedback, Environmental Scan (Internal & External)

Three levels: Strategic, Tactical, Operational

Organizational Engagement - Goals cascaded to operator level

Organizational Transformation - Quarterly reviews and appropriate training

Page 14: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Environmental Scan

Complete prior to vision and mission objectives

External Scan Threats and Opportunities

Internal Scan Strengths and Weaknesses

Page 15: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Modifications and Improvements to SP Using Quality Tools Baldrige Criteria

Leadership, planning, process control, and customer satisfaction and feedback are evaluated and rated.

The Learning Organization (Senge) Shared vision is crucial for long run success

Affinity Diagram/Interrelationship Diagraph Use for problems, trends, SWOT analysis for root cause

analysis, driving trends, strategic goals

Page 16: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Modifications and Improvements (cont’d)

Quality Function Deployment Ultimate approach for identifying the “voice of the

customer” and designing an efficient system around their requirements. Many variations.

Lean/Six Sigma/Total Quality Management a.k.a. Continuous Quality Improvement.- Useful tools if

leadership is supportive and understands what is going on.

Page 17: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

CEO Attitudes and Motivations: Are they Different for High-Performing Organizations?ASQ Journal of Quality Management, 2012Milan D. Larson, John R. Latham, Charles A. Appleby, Carl L. Harshman

Page 18: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Introduction

Findings of an exploratory study that compared the motivations and attitudes of CEOs from MBNQA winning companies to: Successful CEO’s of non-MBNQA winners Average employees

Is there a difference between Baldrige recipient leaders and non-Baldrige recipient leaders?

What are the most effective method to institutionalize leadership development?

Page 19: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Introduction (cont’d)

Other than anecdotal stories, not much is known about leading through a transformational process

Employees become cynical and lose motivation because of inconsistencies with the top leaders’ behavior

To sustain positive direction leaders must demonstrate consistent behaviors that will lead a successful transformation

Study was aimed at understanding the attitudes and behaviors of successful transformation leaders

Page 20: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Research Questions

Do top leaders that achieve Baldrige Award Recognition somehow differ in motivation and attitudes than non-Baldrige transition leaders? (Early research on leadership was focused on traits and personality characteristics)

Which factors are different compared to other effective leaders?

How do these motivational and attitude factors effect leading the journey to performance excellence?

Page 21: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Findings and Results

Identified 35 key variables from over 200 variables studied

The 35 key variables were organized into five categories Leader behavior Leader approaches Forces of change Culture The individual leader

Page 22: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Findings and Results

Evolution – more likely to drive continuous improvement

Focus on Systems – strongly motivated to work on systems and processes

Sole Responsibility – Less likely to think sole responsibility is important

Focus on the Past – Studied the past to make better decisions in the future

Focus on Information – strongly motivated to work with facts and knowledge

Tolerance – More intolerant of people who are not on board with the transformation

Six areas where there was significant difference between Baldrige CEOs and non-Baldridge CEOs

Page 23: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Conclusions and Potential Applications

Strategic thinking permeates all the major differences

Strong alignment and confirmation of Deming and the System of Profound Knowledge as well as other systems thinkers like Peter Senge

Quality tools can be used to enhance the strategic planning process

Page 24: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Affinity Diagram and Interrelationship Diagraph (Cross Impact Matrix) Very useful quality tool for root cause analysis

during problem solving.

While not often taught, this process is very effective to use during strategic planning SWOT Analysis Underlying problems for implementing SP Underlying trends (from external scan?) that

affect SP

Page 25: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Affinity/Interrelationship Process

Through stakeholders or research, identify problems and put on post-it notes.

Organize notes into major categories and sub categories. Try to get the under 20 sub-categories. Under 15 is better.

With participation from stake holders, evaluate each pair of problems in the sub category to see how much one problem impacts or contributes to the other. Score impact using a rubric.

Page 26: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Affinity/Interrelationship Process (cont’d)

Row totals indicate degree to which a problem drives other problems

Column totals indicate the degree to which a problem is influenced by other problems

Row minus Column Totals are ranked from highest to lowest. Highest ranks suggest that the problem is a root cause problem. Lower rank indicates a resulting problem.

Root cause problems are probably what should be addressed with the highest priority.

Page 27: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Sample Problem related to Team Projects:Major Category - External Factors

 

Physical IssuesOther pressing issuesOther class needsRestricted access to resourcesInadequate/Non-working softwareNo way for multiple people to inputMeeting place  

InstructorToo pickyNot enough instructionsGuidelines unclearImpractical expectations

Page 28: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Problems with Team Projects:Major Category - People

Personal issuesLack of knowledge/ understandingAbsenteeismSurface learningNot working on weaknessesMental problemsPhysical problems/illnessLifestyle issuesProcrastination

 MotivationLack of respect for each otherMembers failing to performBlame gameUnequal motivation/dedicationPeople not “on-board”Apathy/lack of interest 

CompatibilityDiffering opinionsPersonality conflictsClosed-minded membersPersonal relationships interfering with professionalismMisunderstanding of team rolesKnowledge not uniformToo many team members CommunicationsFailure to communicateTeam doesn’t prioritizeNot rehearsing as a whole teamWork not checkedWhat did professor want?Final product that is legitimateTime not used constructivelySchedule conflicts for meeting togetherLack of concentration during meetingsForgetting meeting infoPeople who don’t speak up 

Page 29: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Problems with Team Projects:Major Category - Organizing

LeadershipLack of a good team leaderNo leader to control the quality of workPeople just following one personSomeone takes over and does too muchMissing/bad leadership Final ProjectInadequate research Not enough dataWorking too fast and making errorsNot enough collaborationLast minute work going uncheckedSlides have too much informationNot enough information/examplesMaterial does not relate to projectToo many details in presentationSpelling errorsNot practicingNot reviewing work prior to submission

Completing WorkDisorganizedWrong objectiveEqual distribution of workRecord keeping is minimal/missingNot enough timeNot schedulingNot following the schedulePoor time managementBad trainingIndividuals not preparedDistractions/downtimeBeing stuck on one partBad data collectionTampering with dataUnderutilizing strengthsNot following procedures

Page 30: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Spring 10 1. Phys

2. Instr

3. Pers

4. Motiv-ation

5. Compati-bility

6. Comm

7. Leader- ship

8. Compl Work

9. FinalProd

Row

R-C Tot

Rank

1. Physical Issues

x 0 2 1 1 2 1 2 2 11 8 1

2. Instructor 1 x 2 2 0 1 0 1 0 7 4 23. Personal Issues

1 0 x 2* 2* 2 2 2 2 13 0 5

4. Motivation 0 0 2 x 2 2 2 2 2 12 -1 65. Compatibility 0 1 2 1 x 2 2 2 2 12 2 36. Communications

0 1 2 1 2 x 2 2 2 12 0 5

7. Leadership 1 0 1 2 2 2 x 2 2 12 1 48. Completing Work

0 0 1 2 1 1 1 x 2* 8 -7 7

9. Final Project 0 1 1 2 0 0 1 2 x 7 -7 7Col Tot 3 3 13 13 10 12 11 15 14                               

Example of problems inhibiting success of student projects

Page 31: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 1

Developed lists of: Strengths Weaknesses Opportunities Threats

Took top 5 or so of each and developed cross-impact matrix for affinity process

Assessed impact of each SWOT item on all others

Ranked Row-Column Totals to illuminate critical Threats and Weaknesses or Highest Potential Strengths & Opportunities

Private School Strategic Planning

Page 32: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 1 – Cross Impact Matric used for SWOT Analysis

no Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 R Rk C R-C Rk

18 New facilites 2 2 2 1 2 1 2 1 2 2 1 2 2 2 2 2     2       30 1 13 17 1

13 Leased facilities 2 2 1 2 2 1 2 1 1 2 2         1     2       21 4 9 12 2

20 Staff Devel. 2 1 2   2 1   2   2 1 1   2 1       1     1 19 8 10 9 3

7 Facilities 1 1 1 1 2     1   2 2 2   1 1     2 2   2   21 3 14 7 4

9 Cash 2   2   1   2 1   1 2   2   1   1   2   2   19 6 12 7 5

17 Fin Aid   1     1         2 2 1   1 1       2       11 18 5 6 6

22 World View   1 1   1     2   1       1 2       1   1   11 20 5 6 7

6 Technology 1   1   1     1           1 2 2     1 2     12 15 8 4 8

4 Safe Environ.   1 1   2         1 1       2     1         9 21 6 3 9

21 Build Board 2           1   2     1     1     2 2       11 19 8 3 10

8 Academics 1 1 1   2 1 1     2       1 2     1 2 2   1 18 9 16 2 11

12 Transition 2 1 2       1     2       1 2       1 2 1   15 10 14 1 12

16 Comm Outreach 1       2       1           2     1         7 22 6 1 13

3 Teachers 1 2   1 2 1   2   2 2 2     1         2   1 19 5 19 0 14

14 Competiton         1 1   1   2 1       1     2       2 11 17 11 0 15

1 Staff   2 2 2 2 2   2   1   2     2 1     1 2   1 22 2 23 -1 16

19 Advancement 1   1       1   2 2 2 1 2   2   2 2   1     19 7 21 -2 17

2 Atmosphere 2   2 1 2 1   1   2   1 1   1               14 11 17 -3 18

11 Tuition Cost 1   1       2 1 2 1   1 1       2       1   13 14 21 -8 19

5 Accred/Reputation 1 1 1     1 1 1   1 1     1 2       1 1 1   14 12 25 -11 20

15 PR & Comm 1 2     2         2 2 2       1     2       14 13 27 -13 21

10 9-12 Enroll   1         1 1 2   2   1   1     2         11 16 29 -18 22

    21 17 19 7 25 9 12 17 10 28 20 14 7 9 27 5 5 13 20 12 8 6          

Page 33: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Use Results to Develop Strategic Goals

Top four driving SWOT items New facilities (Opportunity) Leased facilities (Threat of loss) Staff development (Opportunity) Facilities (Weakness)

Page 34: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Strategic Goal #1 - Facilities

Short-term goals: Plan for separate sites for K-6 and 7-12 grades. Develop system for maintenance and repair of the facilities

Long-term goals: Provide grass fields for the students. Create an on-site gymnasium for both K-6 and 7-12 sites

Recommendations: Develop a Facilities committee. This committee will address maintenance, repairs, and expansion issues under the direction of the Superintendent.

Page 35: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Strategic Goal #5 – Faculty & Staff Development

Short-term goals: Develop strong relationships with local college teacher programs. Continue to nurture the supportive relationship between the Administration and the staff.

Intermediate goal: Mentoring/coaching for newly hired teachers

Long-term goal: Endowment finance faculty/staff development

Recommendations: Institute on-site, biannual, faculty development training and annual, staff training. Invite faculty to apply for additional off-site training opportunities through applying for Faculty Development Grant funds.

Page 36: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 2 – Strategic Plan Implementation

Small produce company had just completed a week-long off-site retreat with executive team to update their strategic plan

I was asked to help them determine what problems they might have in implementing their plan

Used the affinity process and identified 14 problem areas (sub-categories)

Used a matrix to determine the top-two problems that could prevent them from implementing their SP

Page 37: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 2 – Strategic Plan Implementation Affinity Results

Ranked Item #1 – Language barrier between workers and management (would inhibit the ability of management and workers to communicate, work on problem solving teams, etc.)

Ranked Item #2 – Lack of mathematical skills of workforce (inhibit use of SPC and other tools for process improvement)

Executive team agreed the results were valid and confirmed what many had suspected all along.

Page 38: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 2 – Strategic Plan Implementation Action Plans

Language barrier – Immediately started Berlitz classes two

mornings per week for management. Planned to offer English classes for operators.

Math skills – Tested workers who believed they had good

math skills. Promoted three to in-process-monitors in the quality department to develop them.

Planned to hire a community college instructor to teach math to employees.

Page 39: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 3 – Trend Analysis for Strategic Planning in Higher Ed

Trend Analysis Top 20 Trends in Higher Education

Cross Impact Matrix Driving Trends Resulting Trends Root Cause Trends

Page 40: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Cross Impact Matrix Development

Research produced trends common to higher education.

Cross impact matrix would produce information that could be used by each institution depending on vision, mission, and institutional external and internal scan data.

Page 41: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Cross Impact Matrix of Trends

A cross impact matrix was constructed using the top twenty trends from six major areas.

Some trends are positive and some trends are negative

Each trend was paired with every other trend to assess whether or not that trend had positive or negative impact, as viewed by the participaing group.

A 20x20 matrix was created.

Page 42: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Matrix Scoring

Scoring was based on the following (row trend impact on column trend):

+2 Major Positive impact

+1 Positive impact

0 Negligible impact

-1 Negative impact

-2 Major Negative impact

Page 43: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Matrix Summary

Row totals and column totals were computed from the matrix and rankings determined.

The interpretations are very helpful in assessing the impact of trends for SWOT analysis, needs analysis, and other aspects of strategic planning.

Page 44: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Top 20 Trends in Higher Education

Increasingly unprepared students Increase adult learners / professional programs Expanded learning environment / partnerships Increase in computer technology Increase distance learning Increase demand for computer literacy Outcomes assessment Decreasing funding Affirmative action Increase competition from private sector

Page 45: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Top 20 Trends in Higher Education (cont’d)

Increase in immigration/demand Increase of language diversity Increase of ethnic diversity Increasing demand for higher education Increase in class disparity Increasing demands on curriculum Increasing criticism of tenure Increase in attack on shared governance Aging faculty/ increasing retirement age Decrease in liberal studies

Page 46: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Row Totals – Trend drivers

Strong Positive - Trend has a strong positive multiplying effect on other trends. Consideration should be given to proactive strategies and support: Outcomes Assessment (18) Expanded Learning Environment / Partnerships (17) Increased use of Distance Learning (8)

Page 47: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Row Totals – Trend drivers

Strong Negative: Strong negative multiplying effect. Consider strategies to protect against or eliminate effects. Decrease in funding (-23) Increase in unprepared students (-20) Increased immigration/demand (-13) Increase in ethnic diversity (-12) Aging faculty/Incr. retirement age (-10)

Page 48: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Summary of Trend Driver Analysis

Decreased funding and more students with special needs will tax higher education.

An aging faculty will continue to tie up funds that could be used for younger faculty.

Outcomes assessment will help streamline delivery of education, improve quality, and address the needs of a more diverse clientele.

Small gains will be made with strategic partners.

Page 49: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Row minus Column Totals – Root Cause Trends

A measure of the root cause or underlying effect of the trend.

Be proactive in planning for negative trends.

Taking advantage of positive trends to the extent possible.

Page 50: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Root Cause Trends (Row – Column)

High Negative Increasing immigration/demand (-13) Increase in unprepared students (-11) Increasing ethnic diversity (-10) Aging Faculty/Increasing retirement age (-9)

Page 51: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Root Cause Trends (Row – Column)

High Positive Outcomes assessment (15) Increasing demand for computer literacy (14) Expanded learning environment / partnerships (11)

Page 52: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Summary of Root Cause Analysis

Demographic trends will tax resources.

Major expense - high seniority faculty.

Outcomes assessment - positive impact.

Increasing computer literacy and expanding the learning environment will be favored strategies.

Sizable gains would result from more prepared incoming students.

Page 53: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Overall Summary #1

Demographic changes and an aging faculty will have major impacts on the cost of higher education and tax resources — resources that could otherwise be spent on technology and improved curriculum to meet the needs increasing numbers of students, adult learners, and those seeking professional education.

New ways of efficiently and effectively dealing with unprepared and non-English proficient students must be devised.

Page 54: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Overall Summary #2

Consideration should be given to offering faculty golden-handshake packages and other incentives to retire.

Surprisingly, faculty related trends (other than aging) did not measure up in impact to the demographic trends. Not that faculty issues are not relevant, just not as significant in the total scheme.

Unfortunately, most trends are on the “negative” side of the slate. Higher education is in for a rough ride.

Page 55: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Overall Summary #3

Institutions that plan carefully for these trends may survive as the rest struggle to maintain some measure of quality.

Opportunities will emerge for alternate providers who take advantage.

Page 56: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

California Assessment

Community Colleges - Having difficulty redefining their mission. Faculty are on record stating trends will not affect them.

CSU – Some system-wide initiatives are addressing these trends with faculty participation

UC - Growth plans insufficient to meet states demands for grad programs and research. (UC Merced - 2005). Budget low.

Privates - Inroads in graduate degree programs.

Page 57: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 4 – Kaizen for Management – Marketing Campaign

We know what a Kaizen event is at the operational level. Is there something that can be used to develop a strategic action plan at the system level?

“Kaizen for Management” uses Deming and Juran concepts to produce a system level action plan in one or two days

Learned from consultant from the Professional Coaches and Mentors Association

Example is for a strategic problem

Page 58: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Kaizen for Management

For middle and executive level managers familiar with the day-to-day operations of the organization

CEO not involved

Focus is on identifying systems that are broken and coming up with an action plan

Can be completed in two days

Page 59: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

1. Gather people in one room

Private school needed to increase enrollment to stay above breakeven and increase resources

Economy was affecting recruitment

Attrition was higher than historical rate

Efforts in this are were not working

Gathered all management personnel together plus a few stakeholders

For industrial setting the CEO should be excluded

Example – Private school enrollment was not growing.

Page 60: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

2. Brainstorm goalsBrainstorm goals of the process. Purpose is to get juices flowing and have something to compare to

Page 61: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

3. Identify major tasks by function

Management team identified the following functional areas:

Advertising

Marketing

Publicity

Recruiting

Retention

Advancement

Using chart pad, make a list of responsibilities by functional area. These are usually cross functional.

Page 62: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

4. Identify functional tasks and evaluate

Participants identified up to 22 tasks per functional group. Then evaluate each task using colored dots

Green – task is important and working well

Yellow – Task is important but not working well

Red – Task is not working and/or not important

Page 63: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

AdvertisingAdvertising appears to be one of the least effective functions

Page 64: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

MarketingCan clearly see how stakeholders view the success and importance of functions. Website and business relations are broken.

Page 65: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

PublicityColor and quantity of dots give some indication of the value and status of the function

Page 66: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Recruiting – Page 1Lots of yellow dots indicate a broken system that needs fixing

Page 67: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Recruiting – Page 2Lots of green dots indicate highly successful functions

Page 68: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Retention 1Notice attitudinal item #8. Willingness for staff to improve is questioned.

Page 69: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Retention 2

Page 70: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Retention 3Process identified a lot of weaknesses in the retention area

Page 71: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

5. Use visual data to identify system-wide problem themesSeven potential underlying system-wide problem themes were identified. Each participant was given 3 dots and asked to prioritize. The Top four were selected for action:

1. Communications with parents/community2. Facilities3. Marketing Strategy4. Support Staff

Page 72: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

6. Form Self Selected Teams to Develop Action Plans for Each System-wide themeSelf-selected teams enthusiastically formed and presented action plans. One team started implementing their plan before reporting back.

Page 73: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Kaizan for Management Summary

Can be applied to the entire organization.

Day 1 – Steps 1, 2, 3 & 4. Facilitator forms the system-wide themes from the first day results

Day 2 – Finalize and select themes for action items. Teams prepare action plans and present to CEO for final approval

If approved, action plans can be implemented without a lot of consensus building

Page 74: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Example 5 - QFD – Stakeholder Review of Strategic Plan

QFD emphasizes stakeholder involvement in development of user requirements for product or service development

Use stakeholders to help assess a strategic plan. Get stakeholder feedback on whether or not the strategic plan will provide the products and/or services they desire.

Page 75: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

College of Engineering Strategic Plan

1. BS and MS degree programs that meet societal and workforce needs

2. Successful students

3. Outstanding faculty and staff dedicated to student success

4. State-of-the-art facilities

5. Sustainable financial resources

6. Strong ties with external constituencies and the community

Six major areas. Several dozen objectives in each area

Page 76: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Invited 20+ CEOs a retreatCEOs were asked to help critique the strategic planGreen, Yellow, and Red dots were used on charts around the roomDot patterns were used to generate discussion

Page 77: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

2. Successful Students – Graduate Programs

Strong bias among stakeholders against MS programs. Want to put resources toward our great BS programs.

They consider other schools for MS programs.

Page 78: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

2. Successful Students – Diversity

Strong aversion to using “programs” to teach diversity (too passive).

Participants felt very strongly they learned by working on engineering projects with diverse teams and my visiting, working, and living in other countries/cultures.

Page 79: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

3. Faculty & Staff

Not as supportive of tenured faculty as expected.

Strong support for use of lecturers who were professionals with current work experience.

Page 80: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

4. State-of-the-art Facilities

Probably the most surprising findings: Lack-luster support of this goal

Strong belief that you don’t need state-of-the-art for most teaching.

Emphasis should be on getting good faculty who will know what facilities are needed for the program.

Page 81: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Six Levels of Quality System Implementation (Hayes, ASTD Handbook)

1 No quality system

2 Realization of the need to change

3 In the process of developing a top down policy/strategy

4 Quality system in place to react to customer needs

5 Proactive quality system in place to prevent quality problems

6 Fully integrated customer-focused quality system

(c) 2008, Dr. Phillip R. Rosenkrantz

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Page 82: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Transactional vs. Transformational Leadership

1 None

Transactional Leadership (Frederick Taylor) – Hierarchical management with focus on individual performance, how work is done, and problem solving. Incremental improvements in work methods and productivity. Non-threatening.

2 Realization

3 Strategy

4 Customer Transformational Leadership (Deming, Senge, and others)– Emphasis on empowerment and how people think about work. System thinking, team learning, and major culture change. Policy Deployment.

5 Proactive

6 Integrated

(c) 2008, Dr. Phillip R. Rosenkrantz

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Page 83: ASQ Orange Empire November 1, 2013 Dr. Phillip R Rosenkrantz Professor Emeritus, Cal Poly Pomona A Strategic Look at Deming’s System of Profound Knowledge

Leadership Roadmap

1 None Realization Phase – Leadership transformation. Training on values, communications. Basic tools. “Low hanging fruit”. Build Trust. Shift emphasis away from targets.2 Realizatio

n

3 Strategy Transition Phase – Strategic planning & systems thinking. Department level teams. Quality tools. Int/Ext customer focus.

4 Customer

5 Proactive Performance Phase – Alignment. Empowerment. Process improvement. High performance teams. Variation reduction tools. Redesign.

6 Integrated

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