Chapter 3:Chapter 3:

Quality CultureQuality Culture

““On changing the culture, ”Don’t ever On changing the culture, ”Don’t ever take a fence down until you know take a fence down until you know the reason why it was put up.”.the reason why it was put up.”.

-- G.K. Chesterton G.K. Chesterton

Quality CultureQuality Culture

Objectives:Objectives:

• Understanding What a Quality Culture IsUnderstanding What a Quality Culture Is• How to Activate Cultural ChangeHow to Activate Cultural Change• How to Change Leaders to Activate How to Change Leaders to Activate

Cultural ChangeCultural Change• Learn the Groundwork for A Quality Learn the Groundwork for A Quality

CultureCulture• Learn how to Counter Resistance to Learn how to Counter Resistance to

Cultural ChangeCultural Change• How to Establish a Quality CultureHow to Establish a Quality Culture

IntroductionIntroduction

One of the greatest obstacles faced by organizations attempting to implement total quality is the Cultural barrier.

Many organizations do an excellent job of

committing to total quality, involving

employees in all aspects of planning and

implementation, and providing the training

needed to ensure that employees have the

necessary skills, only to have their efforts fall

flat……The Culprit, no effort has been made to change the

organization’s culture.

Understanding What a Quality Culture Understanding What a Quality Culture IsIs• Understand the concept of Understand the concept of Organizational Organizational

Culture*Culture*

*It is the everyday manifestation of its *It is the everyday manifestation of its

underlying values and traditions. It shows up in underlying values and traditions. It shows up in

how employees behave on job, their how employees behave on job, their

expectations of the organization and each expectations of the organization and each

other, and what is considered normal in terms other, and what is considered normal in terms

of how employees approach their jobs.of how employees approach their jobs.(Ex. In a Store or Restaurant)(Ex. In a Store or Restaurant)

An Organization’s Culture has the Following An Organization’s Culture has the Following Elements:Elements:

• Business EnvironmentBusiness Environment

• Organizational ValuesOrganizational Values

• Cultural Role ModelsCultural Role Models

• Organizational Rites, Rituals, and Organizational Rites, Rituals, and

CustomsCustoms

• Cultural TransmittersCultural Transmitters

If an Organization’s Culture is its Value If an Organization’s Culture is its Value System as manifested in organizational System as manifested in organizational behavior, what is a Quality Culture?behavior, what is a Quality Culture?

A Quality Culture is an organizational value A Quality Culture is an organizational value

system that results in an environment that is system that results in an environment that is

conducive to the establishment and conducive to the establishment and

continual improvement of quality. It consists continual improvement of quality. It consists

of values, traditions, procedures, and of values, traditions, procedures, and

expectations that promote Quality.expectations that promote Quality.

How Are Organizational Culture Created?How Are Organizational Culture Created?

• The Value Systems of executive level decisions The Value Systems of executive level decisions

makers are often reflected in their organizational makers are often reflected in their organizational

culture.culture.

• How managers treat employees and how How managers treat employees and how

employees at all levels interact on a personal basisemployees at all levels interact on a personal basis

• ExpectationsExpectations

• The stories passed along from employee to The stories passed along from employee to

employeeemployee

Factors:Factors:

Commitment to Quality cannot be faked. Employees

know when management is just going through the

motions. Changing an organization’s culture

requires total commitment and a sustained effort

at all levels of the organization.

Activating Cultural ChangeActivating Cultural Change

Reasons why cultural change must be parallel to the Reasons why cultural change must be parallel to the

implementation of Total Quality:implementation of Total Quality:

• Change Cannot Occur in a Hostile Environment Change Cannot Occur in a Hostile Environment

( managers not agree with employee empowerment. ( managers not agree with employee empowerment.

Employee fight for promotions)Employee fight for promotions)

• Moving to Total Quality Takes TimeMoving to Total Quality Takes Time

• It can be Difficult to Overcome the PastIt can be Difficult to Overcome the Past

To attempt the implementation of Total Quality To attempt the implementation of Total Quality without creating a Quality Culture is to invite without creating a Quality Culture is to invite Failure.Failure.

Successful total quality requires cultural change.Successful total quality requires cultural change.

Changing Leaders to Activate ChangeChanging Leaders to Activate Change

Questions that can be used by senior executives for self Questions that can be used by senior executives for self

assessment and if there’s a need in leadership change:assessment and if there’s a need in leadership change:

1.1. Are the current leaders knowledgeable of the need to Are the current leaders knowledgeable of the need to

change?change?

2.2. Are they able to articulate a vision for the new Are they able to articulate a vision for the new

organization?organization?

3.3. Have the current leaders set the tone for change and Have the current leaders set the tone for change and

established an organizational-wide sense of urgency?established an organizational-wide sense of urgency?

4.4. Do the current leaders willing to remove all obstacles to Do the current leaders willing to remove all obstacles to

cultural change?cultural change?

5.5. Are they known of following through on change Are they known of following through on change

initiatives?initiatives?

6.6. Are they willing to empower employees at all levels of Are they willing to empower employees at all levels of

the organization to make cultural change?the organization to make cultural change?

In creating a Cultural Change (which is difficult to In creating a Cultural Change (which is difficult to achieve), Leadership from the Top is essential. achieve), Leadership from the Top is essential. Sometimes an organization’s culture simply cannot Sometimes an organization’s culture simply cannot be changed without a change in leadership.be changed without a change in leadership.

LAYING THE GROUNDWORK FOR A QUALITY LAYING THE GROUNDWORK FOR A QUALITY CULTURECULTURE

According to Peter Scholtes, quality culture should begin by According to Peter Scholtes, quality culture should begin by developing an understanding of what he calls the “laws” of developing an understanding of what he calls the “laws” of organizational change:organizational change:

> Understanding the History Behind the Current Culture.> Understanding the History Behind the Current Culture.

> Don’t Tamper with Systems-Improve Them> Don’t Tamper with Systems-Improve Them

> Be Prepared to Listen and Observe> Be Prepared to Listen and Observe

> Involve Everyone Affected by Change in Making It> Involve Everyone Affected by Change in Making It

LEARNING WHAT A QUALITY CULTURE LOOKS LEARNING WHAT A QUALITY CULTURE LOOKS LIKELIKE

Part of laying the groundwork for a quality culture is understanding what one looks like.

If a picture of a company with a strong Quality Culture could be taped to an organization’s wall for all employees to see, it would have the following characteristics:

• Widely shared philosophy of management

• Emphasis on the importance of human resources to the

organization

• Ceremonies to celebrate organizational events

• Recognition and rewards for successful employees

• Informal rules of behavior

• Strong value system

• High standard performance

• Definite organizational character

COUNTERING RESISTANCE TO CULTURAL COUNTERING RESISTANCE TO CULTURAL CHANGECHANGE

Change is resisted in any organization and resistance to change is normal organizational behavior. (just like a biological organism).

Continuous Improvement means Continuous Change.

To ensure Continuous Improvement, one must be able to facilitate Continuous Change.

WHY CHANGE IS DIFFICULT?

Joseph Juran describes organization change as a “ Clash Between Cultures”.

Advocates of Change• Desired Change• Benefits of Change

Resisters of Change• Desired Status Quo• Consequences of Change

WHY CHANGE IS DIFFICULT?

Same Change, Different Perceptions:

Proposed Change Perception of Advocates Perception of Resisters

Automate production processes Improve productivity Threat to job security

Initiate Employee involvement/empowerment

Focus more mental resources on continuous improvement

Loss of authority

Establish a supplier partnership Mutually beneficial business alliancesDisruption of established purchasing networks.

Establish an employee education and training program

More knowledgaeable, more highly skilled workforce

Cost too much

Join a manufacturing networkEnhanced competitiveness, shared costs, and shared resources

Competitors will take advantage of what they learned from us.

HOW TO FACILITATE CHANGE?

Begin with a new advocacy

paradigmStep 1

Understand the concerns of potential

resisters

Step 2

Implement change-

monitoring strategies

Step 3

ESTABLISHING A QUALITY CULTUREESTABLISHING A QUALITY CULTURE

Establishing a quality culture involves specific

planning and activities for every business or

department.

1. shock

2. denial

3. realization

4. acceptance

5. rebuilding

6. understanding

7. recovery

Sta

te o

f M

ind

Time

STEPS IN THE CONVERSION TO QUALITYSTEPS IN THE CONVERSION TO QUALITY

1. Identify the change needed. - is there an open communication- is there an internal partnership- is there a continual improvement- is there employee involvement- is there a desire to satisfy the customers

2. Put the plan changes in writing

3. Develop a plan for making changes ( 4W-H)

4. Understanding the Emotional Transition Process

STEPS IN THE CONVERSION TO QUALITYSTEPS IN THE CONVERSION TO QUALITY

5. Identify key people and make them advocates

6. Take a Heart and Minds Approach

7. Apply courtship strategy

8. Support, Support, Support