chapter 2, leadership for tqm

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Chapter 2 Chapter 2 Leadership for TQM Leadership for TQM Attitude and Involvement of Attitude and Involvement of Top Top Management Management Communication Communication Culture Culture Management Systems Management Systems

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Page 1: Chapter 2, Leadership for TQM

Chapter 2Chapter 2

Leadership for TQMLeadership for TQM

– Attitude and Involvement of Top Attitude and Involvement of Top ManagementManagement

– CommunicationCommunication– CultureCulture– Management SystemsManagement Systems

Page 2: Chapter 2, Leadership for TQM

Management is doing things right; leadership is doing the right things.

– Peter Drucker

Page 3: Chapter 2, Leadership for TQM

Define LeadershipDefine Leadership

There is no universal definition of There is no universal definition of leadership and indeed many books leadership and indeed many books have been devoted to the topic of have been devoted to the topic of leadership.leadership.

James McGregor described leadership James McGregor described leadership as one as one who instills purposes, not who instills purposes, not one who controls by brute forceone who controls by brute force..

A leader strengthens and inspires the A leader strengthens and inspires the followers to accomplish shared goals.followers to accomplish shared goals.

Page 4: Chapter 2, Leadership for TQM

The Malcolm Baldrige National The Malcolm Baldrige National Quality Award’s definition of Quality Award’s definition of LeadershipLeadership

An organization’s senior leadership should:An organization’s senior leadership should:

Set direction and create a customer focus.Set direction and create a customer focus.

Create clear and visible values, and high Create clear and visible values, and high expectationsexpectations

These directions values and expectations should These directions values and expectations should balance the needs of all your stakeholders.balance the needs of all your stakeholders.

Ensure the creation of strategies, systems, and Ensure the creation of strategies, systems, and methods for achieving excellence, stimulating methods for achieving excellence, stimulating innovations, and building knowledge and innovations, and building knowledge and capabilitiescapabilities

Page 5: Chapter 2, Leadership for TQM

The Malcolm Baldrige National The Malcolm Baldrige National Quality Award’s definition of Quality Award’s definition of LeadershipLeadership

The values and strategies should help guide The values and strategies should help guide all activities and decisions of your all activities and decisions of your organization.organization.

Senior leaders should inspire and motivate Senior leaders should inspire and motivate your entire workforce and should encourage your entire workforce and should encourage all employees to contribute, to develop and all employees to contribute, to develop and learn, to be innovative, and to be creative.learn, to be innovative, and to be creative.

Page 6: Chapter 2, Leadership for TQM

The Malcolm Baldrige National The Malcolm Baldrige National Quality Award’s definition of Quality Award’s definition of LeadershipLeadership

Senior leadership should serve as role models Senior leadership should serve as role models through their ethical behavior and their through their ethical behavior and their personal involvement in planning, personal involvement in planning, communications, coaching and development communications, coaching and development of future leaders.of future leaders.

As a role models, they can reinforce values As a role models, they can reinforce values and expectations while building leadership, and expectations while building leadership, commitment, and initiative throughout your commitment, and initiative throughout your

organizationorganization..

Page 7: Chapter 2, Leadership for TQM

Getting quality results is not a short-Getting quality results is not a short-term, instant-pudding way to improve term, instant-pudding way to improve competitiveness; implementing total competitiveness; implementing total quality management requires quality management requires hands-hands-

on, continuous leadershipon, continuous leadership

Armand V. FeigenbaumArmand V. Feigenbaum

Page 8: Chapter 2, Leadership for TQM

Characteristics of Characteristics of Excellent LeadershipExcellent Leadership

1.1. Visible, committed, and Visible, committed, and knowledgeableknowledgeable

2.2. A missionary zealA missionary zeal

3.3. Aggressive targetsAggressive targets

4.4. Strong driversStrong drivers

5.5. Communication of valuesCommunication of values

6.6. OrganizationOrganization

7.7. Customer ContactCustomer ContactDr.Curt ReimannDirector Malcolm Baldrige National Quality Award

Page 9: Chapter 2, Leadership for TQM

1. Visible, committed, and 1. Visible, committed, and knowledgeableknowledgeable

They promote the emphasis on They promote the emphasis on quality and know the details and quality and know the details and how well the company is doing. how well the company is doing.

Personal involvement in education, Personal involvement in education, training and recognition. training and recognition.

Accessible to and routine contact Accessible to and routine contact with employees, customers and with employees, customers and suppliers.suppliers.

Page 10: Chapter 2, Leadership for TQM

2. A missionary zeal2. A missionary zeal

The leaders are trying to effect as The leaders are trying to effect as much change as possible through much change as possible through their suppliers, through the their suppliers, through the government and through any government and through any other vehicle that promotes other vehicle that promotes quality. quality.

Active in promotion of quality Active in promotion of quality outside the company.outside the company.

Page 11: Chapter 2, Leadership for TQM

3. Aggressive targets3. Aggressive targets

Going beyond incremental Going beyond incremental improvements and looking at the improvements and looking at the possibility of making large gains, possibility of making large gains, getting the whole workforce getting the whole workforce thinking about different thinking about different processes-not just improving processes-not just improving processes.processes.

Page 12: Chapter 2, Leadership for TQM

4. Strong drivers4. Strong drivers

Cycle time, zero defects, six Cycle time, zero defects, six sigma or other targets to drive sigma or other targets to drive improvements. Clearly defined improvements. Clearly defined customer satisfaction and quality customer satisfaction and quality improvement objectives.improvement objectives.

Page 13: Chapter 2, Leadership for TQM

5. Communication of values5. Communication of values

Effecting cultural change related Effecting cultural change related to quality. to quality.

Written policy, mission, guidelines Written policy, mission, guidelines and other documented and other documented statements of quality values, or statements of quality values, or other bases for clear and other bases for clear and consistent communication.consistent communication.

Page 14: Chapter 2, Leadership for TQM

6. Organization6. Organization

Flat structures that allow more authority at Flat structures that allow more authority at lower levels. lower levels.

Empowering employees. Managers as Empowering employees. Managers as coaches rather than bosses. coaches rather than bosses.

Cross-functional management processes Cross-functional management processes and focus on internal as well as external and focus on internal as well as external customers. Inter-departmental customers. Inter-departmental improvement teams.improvement teams.

Page 15: Chapter 2, Leadership for TQM

7. Customer Contact7. Customer Contact

CEO and all senior managers are CEO and all senior managers are accessible to customersaccessible to customers

Page 16: Chapter 2, Leadership for TQM

Culture Planning Communication Accountability

Product/Services

Process/ProcedureInformation Suppliers

Participation Training Motivation

Customer Orientation

Total Quality

Requirements

ManagementLeadership

Product/ProcessLeadership

Human Resource Excellence

Customer Orientation

The Westinghouse Total Quality Model

The model is built upon the foundation of management Leadership

Page 17: Chapter 2, Leadership for TQM

Framework of IBM’s Market Driven Quality Framework of IBM’s Market Driven Quality ProgramProgram

Leadership

• Vision• Involvement• Policy• Management

Systems

• Information/Analysis•Planning•Human Resources•Quality Assurance

Quality Results

•Improved Quality•Lower Costs

Customer Satisfaction

Market Success/Competitiveness

“Driver” System MeasuresOf Progress

Goal

Market Driven Quality Model

Page 18: Chapter 2, Leadership for TQM

Attitude of Top Attitude of Top ManagementManagement

The quality depends upon the The quality depends upon the vision of excellence and that a vision of excellence and that a vision becomes reality through vision becomes reality through

excellent compelling Leadership excellent compelling Leadership

Joseph Jaworisky, Joseph Jaworisky,

Chairman of American Leadership ForumChairman of American Leadership Forum

Page 19: Chapter 2, Leadership for TQM

Attitude and Attitude and Involvement of Top Involvement of Top

ManagementManagement The Conflict of Hard and Soft AssetsThe Conflict of Hard and Soft Assets

– Focus on Technology rather than human Focus on Technology rather than human resources and organizational competenceresources and organizational competence

– The top managers need to be ambidextrous. The top managers need to be ambidextrous. They must balance the need for the structural They must balance the need for the structural dimension (e.g., Hierarchy, budgets, plans, dimension (e.g., Hierarchy, budgets, plans, controls, procedures) on one hand with the controls, procedures) on one hand with the behavioral or person dimension on the other.behavioral or person dimension on the other.

Page 20: Chapter 2, Leadership for TQM

Attitude and Attitude and Involvement of Top Involvement of Top

ManagementManagement The commitment and involvement of top The commitment and involvement of top

management need to be demonstrated management need to be demonstrated and visibleand visible

– ““They never listened to what I said, they They never listened to what I said, they always watch what I do”always watch what I do”

Dwight EisenhowerDwight Eisenhower

– Many managers send mixed signals. They Many managers send mixed signals. They endorse quality, but reward bottom line or endorse quality, but reward bottom line or production. Employee buy-in is unlikely in production. Employee buy-in is unlikely in such environment where worker such environment where worker empowerment is talked about but not empowerment is talked about but not practicedpracticed

Page 21: Chapter 2, Leadership for TQM

Communication

The most important thing in communication is to hear what

isn't being said

Peter Drucker

Page 22: Chapter 2, Leadership for TQM

The Managerial The Managerial CommunicationsCommunications

Why Top managers need to communicate to Why Top managers need to communicate to ensure quality practices in the organization?ensure quality practices in the organization?

Communication is inextricably linked in the Communication is inextricably linked in the quality process, yet some executives find it quality process, yet some executives find it difficult to tell others about the plan in a way difficult to tell others about the plan in a way that will be understood that will be understood

Constant communication and employees buy-in are crucial to a successful TQM initiative

Page 23: Chapter 2, Leadership for TQM

What should be the best communication What should be the best communication model for a quality enterprise?model for a quality enterprise?

Larry Appley, chairman emeritus of the American Management Larry Appley, chairman emeritus of the American Management Association, has developed a company-wide productivity Association, has developed a company-wide productivity improvement program that has the model as a centerpieceimprovement program that has the model as a centerpiece

MessageWhat is to be done?How well should it be done?How well is being done?How to do it better?

Answered byPosition DescriptionStandard/TargetPerformance AppraisalAction Plan

Recipient/Boss

Sender/Employee

Page 24: Chapter 2, Leadership for TQM

Corporate Culture and Corporate Culture and LeadershipLeadership

What is culture?What is culture?

Culture is a pattern of beliefs and values that provides Culture is a pattern of beliefs and values that provides the members of an organization’s rules of behavior or the members of an organization’s rules of behavior or accepted norms for conducting operations.accepted norms for conducting operations.

It is philosophies, ideologies, values, assumptions, It is philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an beliefs, expectations, attitudes, and norms that knit an organization together and are shared by the organization together and are shared by the employees.employees.

Page 25: Chapter 2, Leadership for TQM

Organizational Culture and its Organizational Culture and its importanceimportance

Successful organizations have a central core Successful organizations have a central core culture around which the rest of the company culture around which the rest of the company revolves.revolves.

It is important for a organization to have a It is important for a organization to have a sound basis of core values into which sound basis of core values into which management and other employees will be management and other employees will be drawn.drawn.

Without central core, the energy of members of Without central core, the energy of members of the organization will dissipate as they developed the organization will dissipate as they developed plans, make decisions, communicate, and carry plans, make decisions, communicate, and carry on operations without fundamental criteria of on operations without fundamental criteria of relevance to guide them.relevance to guide them.

Page 26: Chapter 2, Leadership for TQM

Basic beliefs of some Basic beliefs of some famous organizationsfamous organizations

Company beliefs

Ford Quality is job one

Delta A family feeling

3M Product Innovation

Lincoln Electric Wages proportionate to productivity

Caterpillar Strong dealer support; 24-hours spare parts support around the world

McDonnald’s Fast Service, consistent quality

Page 27: Chapter 2, Leadership for TQM

What Quality Gurus suggest for a What Quality Gurus suggest for a cultural and value system cultural and value system transformation is:transformation is:

Deming calls for transformation of Deming calls for transformation of the American management stylethe American management style

Feigenbaum suggests a pervasive Feigenbaum suggests a pervasive improvement throughout the improvement throughout the organizationorganization

According to Crosby, “Quality is the According to Crosby, “Quality is the result of a carefully constructed result of a carefully constructed culture, it has to be the basic fabric culture, it has to be the basic fabric of the organization”of the organization”

Page 28: Chapter 2, Leadership for TQM

Embedding a Culture of Embedding a Culture of QualityQuality

It is one thing for top management to state a It is one thing for top management to state a commitment to quality but quite another for commitment to quality but quite another for commitment to be accepted in the company.commitment to be accepted in the company.

The basic vehicle for embedding an The basic vehicle for embedding an organizational culture is a teaching process in organizational culture is a teaching process in which desired behaviors and activities are which desired behaviors and activities are learned through experiences, symbols, and learned through experiences, symbols, and explicit behaviors.explicit behaviors.

The demonstration of commitment by top The demonstration of commitment by top management by activities and behavior that are management by activities and behavior that are exhibited throughout the company is essential.exhibited throughout the company is essential.

Page 29: Chapter 2, Leadership for TQM

Embedding a Culture of Embedding a Culture of QualityQuality

This commitment is demonstrated by behaviors and This commitment is demonstrated by behaviors and activities that are exhibited throughout the company. activities that are exhibited throughout the company. Categories of behaviors include:Categories of behaviors include:

Signaling:Signaling: Making actions or taking actions that Making actions or taking actions that support the vision of quality, such as mission support the vision of quality, such as mission statements, creeds, or charters directed toward statements, creeds, or charters directed toward customer satisfaction.customer satisfaction.

Focus:Focus: Every employee must know the vision, his or Every employee must know the vision, his or her part in it, and what has to be done to achieve it.her part in it, and what has to be done to achieve it.

Employee Policies:Employee Policies: These may be the clearest These may be the clearest expression of culture, at least from the viewpoint of expression of culture, at least from the viewpoint of the employee. A culture of quality can be easily seen the employee. A culture of quality can be easily seen as the reward and promotion system, status symbols, as the reward and promotion system, status symbols, and other human resource actions. and other human resource actions.

Page 30: Chapter 2, Leadership for TQM

Transition to Quality Culture in Transition to Quality Culture in XeroxXerox

Transition Team

Reward and Recognition

CommunicationTools andProcesses

TrainingSenior

Management Behavior

XeroxCultureChange

Page 31: Chapter 2, Leadership for TQM

Management SystemsManagement Systems

No matter how comprehensive or lofty a quality No matter how comprehensive or lofty a quality strategy may be, it in not complete until it is put strategy may be, it in not complete until it is put into action. It is only rhetoric until it has been into action. It is only rhetoric until it has been implemented.implemented.

Quality management systems are vehicles for Quality management systems are vehicles for change and should be designed to integrate all change and should be designed to integrate all areas not only the quality assurance areas not only the quality assurance department.department.

They must expend throughout the company to They must expend throughout the company to include white-collar activities ranging from include white-collar activities ranging from market research to shipping and customer market research to shipping and customer services.services.

Page 32: Chapter 2, Leadership for TQM

End of Chapter End of Chapter 22