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Managing Quality in Project and Human Resource The Quality Quest Managing Quality in project and Human Resource Billy Chilongo Sichone 1 st edition 1 Quality quest

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This book attempts to contribute to the all pervasive quality revolutions that has taken the world by storm. At every turn, quality is intertwined into about every product on the shelf as well as building product loyalty

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Page 1: The Quality Quest: In search of the best in the best

Managing Quality in Project and Human Resource

The Quality Quest

Managing Quality in project and Human Resource

Billy Chilongo Sichone

1 st edition

© March 2009

Billy C Sichone

1 Quality quest

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Managing Quality in Project and Human Resource

©Billy C Sichone

In case you have any enquiries call: 260977429521, [email protected]

All rights reserved. No part of this work may be reproduced in any form, or by any means,

without permission in writing from the publisher.

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Table of ContentsPreface........................................................................................................................................................6

Acknowledgements.....................................................................................................................................7

Dedication...................................................................................................................................................8

Introduction/Module descriptor.................................................................................................................9

Over view and definition of Quality...........................................................................................................14

A brief history of the quality revolution and its development...................................................................38

W. Edwards Deming.................................................................................................................................39

Joseph M Juran..........................................................................................................................................44

Phil Crosby.................................................................................................................................................47

Kaoru Ishikawa..........................................................................................................................................50

Armand Feigenbaum.................................................................................................................................51

General Douglas McArthur........................................................................................................................51

Later Developments in quality circles........................................................................................................52

Quality Standards......................................................................................................................................52

Summary and conclusion of unit...............................................................................................................58

Quality, its essential nature and necessity................................................................................................78

Some TQM definitions...............................................................................................................................81

Quality, its necessity & benefits................................................................................................................86

Implications and importance of quality.....................................................................................................91

Quality as relates to project management..............................................................................................106

The Project cycle.....................................................................................................................................106

Qualities of a Project Manager................................................................................................................119

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Roles/Functions of the Project Manager.................................................................................................124

Over view of contemporary practice and recent changes in Human Resources Management...............158

Definition of contemporary HRM............................................................................................................161

Strategic place/importance of HRM in project management..................................................................163

International Human Resources management in perspective.................................................................169

Quality issues relating to HRM................................................................................................................186

Methods of enhancing Human resource quality performance................................................................187

Documenting the best staff practices......................................................................................................192

Importance of quality in HRM.................................................................................................................195

Reasons why employees leave................................................................................................................207

Integrated Program management...........................................................................................................215

Operations issues....................................................................................................................................217

Teams......................................................................................................................................................227

Some frequently encountered challenges in project and program management...................................240

Implications of delayed project or program implementation..................................................................253

Grant Management snap shot.................................................................................................................254

Identifying quality in practice..................................................................................................................268

Quality challenges and why it fails...........................................................................................................427

Quality now and in future.......................................................................................................................447

General Bibliography...............................................................................................................................465

Glossary...................................................................................................................................................469

Index........................................................................................................................................................473

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Notes

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Preface

In a rapidly globalised and globalising interconnected world, the need for high quality output is

increasingly non negotiable. Any entity ignores quality issues at its own peril. On an average

day, thousands, yea, myriads of projects progress at different phases and paces towards an

intended goal. The perceived and anticipated outcome often bugs both the implementers and

sponsors of the said undertaking, failure may have devastating consequences. And yet sadly,

most projects are rarely completed on time, let alone successfully reach their set outcomes. As

has rightly been observed by Oded Cohen from the Golddratt Institute, “The majority of projects

do not finish on time or to budget and they rarely deliver to all the original project specifications.

This is down to poor management”1, there is urgent need to address this serious malady to restore

confidence in projects and project management, lest it slides to the fad slimy pit. In a high profile

training on project management hosted by the renowned Marcus Evans (www.marcusevans.com)

in November 2002, trainer and practitioner, Johan Steyn (KPMG Consulting) rightly observed

that it is possible to make a difference, if only the right parameters and staff cadre are in place

prior to the commencement of the project or integrated program as the case might be.

Thus, in this short treatise and module, we consider quality issues as relates to project

management and Human resources. In coming up with this module, a lot of resources have been

consulted from all sorts of mediums including the internet, books (hard copy & soft e-books),

workshop hand outs and interviews with some project quality experts. To make the work more

helpful, a few case studies have been included as well as questions, assignments and possible

research areas.

At the end of this module, it is hoped that you will have mutated into a world class project

manager!

1 As quoted by Robert Buttrick in his book “Project work out”, on the back cover.

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Acknowledgements

In coming up with this module, many quality enhancing minds have perused through the work to

make it what it is. To accomplish such a mammoth task in such a short time frame amidst a back

wrecking work schedule, I relied heavily on significant authorities, colleagues and quality gurus

who have paved the way for us to tread their paths. It would be impossible to adequately thank

these people let alone thank everyone that supported me as I incubated and developed my

thoughts. None the less, I make an attempt to salute some of them at the risk of leaving out

critical contributors.

I would like to thank the management of World Vision International Zambia for having accorded

me the opportunity to refer to the various organisational policies, DME manuals and sites as well

as the valuable training that has shaped my thinking over the years. I should also like to thank the

Cavendish University Zambia staff team that granted me an opportunity to contribute to national

development through this module. It would be injustice to fail to acknowledge the Quality and

Human Resource gurus that I consulted while I wrote this work. Their labours really opened up

my mind not a little. Special mention goes to Messieurs Gilbert Kamanga (Australia), Isaiah

Nzima (Zambia) and Assan Golowa (South Africa). Last but not least, accolades go to my ever

supportive my wife Jane, our two lovely daughters and other colleagues across the world. They

consistently brighten my days.

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DedicationTo all the world class quality pundits that strive to make the world better than yesterday.

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Introduction/Module descriptorThis module is focused on examining some salient qualitative project management aspects which

touch on Human resource as well in the said undertaking. To effectively open up this subject

area of study, the module has been divided into various units, each focusing on a specific area of

a given larger theme. The first Unit gives a bird’s eye view on the all important subject in its

crystal form and then goes on further in the next unit to consider historical aspects of this

important matter. The module also traces the project management processes as well as success

factors that make any entity succeed.

A clear understanding of what quality (especially TQM) is as well as how it impacts on our daily

lives is very critical to achieving world class results in a given time frame at the most cost

effective rate. Having imbibed the TQM principles as propagated by quality gurus, past and

present, it is incumbent upon the student to endeavour to reduce to practice what they learn. It is

no good having non functional information overload that actually contributes to inefficiencies

because decision makers turn into ‘white elephant’ arm chair critics, seriously paralysed by

morbid analysis. The Japanese teach us a big lesson of how right application of information and

principles can result in amazing strides in the right direction. Once application is in motion, it is

critical to constantly monitor progress as well as evaluate periodically against set standards and

bench marks for that given procedure. Quality is all about procedures and standards. Depending

on the feedback, it may be necessary to transition or change strategy so that the goals are

effectively and efficiently reached. Strategies change over time while goals do not. The student

must come away with expertise in qualitative project management skills at the end of the course.

Thus, as the student ploughs through this module, let him or her approach it with an open mind

and a willingness to imbibe new concepts as well as add potent ideas in our collective quest for a

better world than we found it when we first got here.

How to effectively use this study guide

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This guide is designed to be used both as a basic information pack on quality issues as relates to

Project management as well as a resource to stimulate further research. Therefore, to get the best

out of it, it is recommended that the student deeply acquaints themselves with the information

contained in this module pack as well as read broadly consulting other authorities on Operations

management as well as quality such as Oakland J, Kotler P, Brown M, William V, Luchsinger V,

Hill C, Banks J, Bicheno J, Harrison A, Bellingham R, Tulgan B, Townshend P, Burnes B,

Schroeder G R, Bower et al and Langdon among others. These venerable authors have done

extensive work on management related areas. In addition, the student should acquaint themselves

with the relevant ISO standards as well as other important standards. Lastly, the student must be

an ardent cyber space traveller exploring different knowledge “colonies, archipelagos and

islands” located on different websites. The case studies embedded in this manual are but a tip in

the iceberg for there is a whole world out there with many real life cases that will add value to

their learning and practice. However, the cases engrafted in this book must be fully read,

dissected and digested as should the self assessment assignments in this text. The student must

make it a habit to document all the processes they encounter or go through in their quest to

acquire knowledge.

Suggested study tips

As the student undertakes any study, the following tips could be handy:

1. Come with an open positive mind to learn something new in each sitting.

2. Each study sitting is unique and treat it as such.

3. Take in only enough per study session. Do not over or under load your marvellous brain

each time.

4. Take down some notes or highlight some important points as you read. Be neat

nonetheless.

5. Apportion enough time for your studies in a preferred locality, space and specific time.

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6. If it works well with you, engage in a study group of about three or so people. If possible,

attend tutorials or discussion groups as often as possible.

7. Ensure you attend class regularly if you are in full time.

8. Never procrastinate!

9. Read widely. Have an enquiring mind quizzing everything with a view to genuinely

learn.

10. Conduct a self SWOT analysis and thus formulate your optimum study regime.

11. Finally, enjoy your studies! You are investing into your future!!!

Recommended books and documents

Banks J, The essence of Total Quality Management, Prentice Hall, 1997

Banks J, The principles of quality control, Wiley, 1989

Beckford J, Quality: A critical introduction, Routledge, 2002

Bicheno J, The quality 75: Towards six sigma Performance in service and manufacturing, Picsie

Press, 2002

Burnes B, Managing Change, Prentice Hall, 2004

Harrison A et al, Cases in Operations Management, 3rd Edition, FT Prentice Hall, 2002

Naylor J, Introduction to Operations Management, 2nd edition, FT Prentice Hall, 2002

Oakland J, TQM: text with cases, 3rd edition, Butterworth-Heinemann, 2003

Pike J and Barnes R, TQM in action, Kluwer Academic, 1995

Prince 2 and PMBOK, The British standards institution

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Slack N et al, Operations Management, FT Prentice Hall, 2003

Books worth referring to for further reading

Buttrick Robert, The interactive Project workout, 2nd edition, Pearson Education, 2000

Dessler Gary, Human Resources Management, Pearson Education, 10th edition, 2005

Drucker Peter, Managing, 1990

........., The World according to Peter Drucker,

Knaut, Krasman & Meyer, Profiles of Excellence: Achieving success in the non-profit sector,

1994

Maylor Harvey, Project Management, Pearson Education, 3rd edition, 2003

Miles Glenn & Wright Josephine-Joy (Editors), Celebrating Children, Paternoster (Thinking

faith), 2003

Peters J Thomas & Waterman R, In Search of Excellence, Warner books, 1984

Render Barry & Heizer Jay, Principles of Operations, Pearson/Prentice, 6th edition, 2006

Important websites

www.businesscases.org/newinterface business case studies

www.dti.gov.uk/mbp Department of trade and industry-Management best practice

www.efqm.org EFQM-helping European businesses

www.european-quality.co.uk European quality magazine

www.hbsworkingknowledge.hbs.edu Harvard Business School working knowledge

www.hse.gov.uk Health and Safety Executive

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www.hsl.gov.uk Health and Safety laboratory

www.transformational-development.org World Vision International DME site

http://corporate.ritzcarlton.com/en/about/gp;dstandard.htm, Carlton Hotel award winning case

http://www.quality.nist.gov Malcom Baldridge National Quality award (USA)

http://www.asq.org American Society for Quality, (ASQ)

Wikipedia internet site, the free Encyclopaedia

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Unit 1

Aim

The aim of this unit is to give a general introduction to TQM as relates to business management

in general.

Objectives

By the end of this module, students should have:

1. Acquired a bird’s eye view of quality and its relevance today.

2. Grasped a basic background of the quality evolution.

3. Had a basic understanding of what strategy is all about.

Over view and definition of Quality

When talking about potent strategy in modern business circles, the organisation and individual

seek to curve the most efficient and effective route that outwits all potential rivals. In one sense,

there is move towards an interdependent “win-win” scenario in the contemporary business

environment where the corporations agree to share the market or cooperate in benefiting from the

same market. In another sense, each company would like to weave an especially unique path that

cannot be easily imitated by competitors, since the competitively modern uncertain business

environment is all about survival of the smartest and fittest. One thread however, weaves through

all products and services for successful entities, no matter what their location might be on this

terrestrial ball. That thread is crystallized in two words TOTAL QUALITY. The word ‘Total

Quality’’ is now an established buzzword wherever one turns. When profit is the subject,

competitive advantage and zero defects comes up, the word Total Quality Management

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(TQM) or its implication linger somewhere in the background. The business world is hailing this

newly found panacea as the ultimate solution to all the profit nightmares that seem to haunt

businesses. Turn to every media of communication where business is discussed, TQM is

mentioned. The print press, the radio, the business journals, the magazines and indeed the

business textbooks, all are replete with this concept. In America, TQM is relatively a new

phenomena having been practiced slightly over a few decades. The same holds true for the other

parts of the World too. The Japanese however have been the masters having practiced this for

well over five decades. As earlier intimated most of the modern Management books do not fail to

include the issue of TQM because it lies at the very heart of business success of the 21 st Century.

TQM has sometimes been called “The silver bullet” as it is believed that if properly

implemented, the quality efforts guarantee phenomenal profits, market share expansion, timely

project execution and unprecedented exponential business growth. Naturally, everyone is looking

for success!

A plethora of TQM books sit on bookstore shelves across the world but few stand out. Many

authors deal with the pertinent issues that affect the modern business of the 21st century. All that

needs to be said about strategic quality management is successfully delivered and clearly spelt

out for any readers to understand. One does not need to be a high profile Manager to grasp most

of the relayed TQM concepts.

Most authors acknowledge that TQM is not a ‘by the way’ thing but that it lies at the heart of the

organisation. It is practically impossible to ignore TQM today, bearing in mind that the customer

is king and must be pleased at all times if to remain in business.

In the midst of unveiling TQM, strategy comes to the fore. Strategy is defined as ‘The pattern or

plan that integrates an organisation’s major goals, policies, action sequences into a cohesive

whole.’ This means the organisation must be consistently aware that it is not isolated but in a

constantly changing, uncertain, turbulent and volatile environment. If that be the case, the firm

must swiftly move with the times so that it fits well within a given setting. In keeping with the

Anonymous

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quest to remain relevant, buoyant and competitive, the modern manager must involve as many

people in the organisation as possible, because people feel left out when archaic, clandestine and

boxed planning methods are employed. But where key stakeholders are involved from the

planning stage, no matter how minimally, they voluntarily go all the way to ensure success, yea,

they run with the ball. In a nutshell then, Strategy seeks to achieve the following:

(i) A clear direction curving.

(ii) Introspection with respect to the outside competitors, hence knowing what to do and

when.

(iii) SWOT analysis, both internal and external.

(iv) Subsequently, the company zeros in on its core-competencies, which would easily

give a competitive advantage, and also to use the resources as best as possible.

(v) Identify the major factors at play in the environment that will affect the business.

Examples are the political, religious, social and legal environments. These must be

carefully monitored as the business outcomes largely hinge on these, one way or the

other.

(vi) Mark which actions from rivals need meticulous scrutiny. To survive, an

organisation must be scrupulously meticulous so that nothing catches it by surprise.

All the above issues are addressed by a good strategy. Although this may be true in a local

scenario, today’s organisation must contend with the fact that the world has become a ‘Global

Village’ because whatever happens at one point of the globe, affects the rest of the world. The

‘ripples reach every shore line’. It is an increasingly interconnected world as evidenced by the

recent global economic meltdown of 2008 & 2009. Deeply ingrained in this global village

scenario is the need to produce quality goods that satisfy the international consumer and

ultimately bring about product loyalty. Quality is then intertwined in all that is going to be

bought or sold. Strategic Management in an organisation operates in a particular framework. It

has been mentioned that global, quality and social issues bombard the organisation from outside

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but there is need to mention that the organisation has to function as an organism gathering

information and processing it to get a feedback. The Operations, Finance and Marketing

departments do this. The strategy crafting process among others, covers the environment

analysis, direction establishment and strategy formulation. The strategy implementation and

control are equally crucial. In an ideal situation, the organisation should function like the human

body, constantly agile and mutating.

To achieve the above mentioned posture, the average entity goes through various phases that

include:

1. Environment analysis (the context in which the organisation operates noting the changes,

happenings etc)

2. Establishing organisational direction (Visioning, dreaming, strategic thinking etc)

3. Strategy formulation/crafting, shape and structure etc.

4. Strategy implementation and monitoring

5. Strategic control, evaluation and redesign

6. Strategic international operations

7. Strategic Total quality Management

8. Strategic social and ethical dimensions

9. Strategic Operations Management

10. Strategic Financial Management

11. Strategic Marketing and control

It is a curious fact that Total quality is either mentioned or referred to indirectly in many

successful entities and projects within its fibre.

As one traverses any winning firm or project, quality pops up and glows brightly in the

background. The analysis is defined as the process where the organisation pauses and monitors

what is going on within and without the organisation. Among the many things considered,

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include the need to identify both the present and future strengths, weaknesses, opportunities and

threats that buffet the firm. As earlier alluded to, this is known as SWOT analysis. The acronym

SWOT stands for:

S: Strengths

W: Weaknesses

O: Opportunities

T: Threats

The Strengths and Weaknesses relate to the organisation itself as it carries out introspective and

retrospective scan. These are internal and controllable. The Opportunities and Threats are from

outside the organisation and beyond the control of the entity. In other words, the threats and

opportunities lie in the immediate environment in which the entity operates and beyond the

firms’ control, rather, it is the organization to adapt to the changing scenes. As the firm seeks to

excel having checked within, it looks out for openings to clinch the best deals around as well as

counter the competitor threats such as new market entrants, new cheap high quality products,

substitute products or even government policies which threaten the business. All these must be

identified and addressed accordingly. This analysis is addressed in three ways:

1. The internal environment- among many areas, this has to do with human resources and

marketing within the organisation. (Focuses on the internal organisational weaknesses and

strengths)

2. Operating Environment – This has to do with players in the same industry such as suppliers,

competitors and customers. This includes new and emerging industries and market entrants.

3. General Environment- Under this head, we encounter certain issues which affect the

organisation such as the Economic climate, Ethical and political issues. (# 2 & 3 focus on the

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external threats and opportunities which the entity has to either contend with or grab the

lingering opportunities)

In a nutshell then, when carrying out an environmental analysis, scanning as well as forecasting

are at play. Implementation, monitoring, evaluation and continuous improvement crown the

analysis process.

Other areas deal with establishing the organisational direction. After the environmental analysis

is completed, and the results determined, the logical thing is to commence paving the way for the

organisation, ‘Which way forward?’ is probably the question echoing on many a mind at that

stage. In setting direction, three ingredients are commonly used and these are obvious but for the

sake of having a common understanding, it is prudent to clear the path. The said attributes are:

1. Vision- this is a desired end in a more general sense. In other words, a vision states goals

and direction in broad terms. The question probably at hand is ‘What are we up to?’

‘What do we want to make?’

2. Mission-This is the purpose for which the organisation exists. Why is the organisation

here? What are the aims? These are but a few issues addressed in the mission. Every

company should have a statement, which summarises the existence in capsule form. The

mission addresses those core values of the organisation without which the company will

have no reason to exist. Usually, the quality issue is always slotted in the statement so

that it acts as a powerful marketing tool.

3. Objectives- this is the Vision in more specific terms. Here, the specific target group to

which the organisation directs its weight and efforts are clearly brought to the fore. As the

period unfolds, the organisation is constantly asking whether it is meeting its objectives

or not. This is a good checkpoint or benchmark.

The 3 points above are the very heart of establishing Direction. Notice that even here TQM finds

a special place. The delivery systems must be in tip top shape to sustain high quality

performance and exponential growth/expansion.

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Further still, the strategy formulation issues as well as implementation have to be considered.

The managers responsible must first understand what they are about and in that context, the plans

are implemented. The formulation process takes place in at least three levels namely, the

Business, the functional, the global and the corporate respectively. All these levels look at the

company with respect to the environment. For example, the advent of customer sovereignty is

encountered in the business level, the need to improve all the time and yet to maintain goal

congruence and innovation are met within the functional and corporate levels. When the

formulation has taken place successfully, implementation is evitable. The implementation

process is critical because that which has taken long to arrive at is now being put into motion.

Sadly, this stage is usually undervalued or even overlooked in many a process! We assert that

more care is equally needed here too. A number of stages are suggested to be taken into

consideration as implementation takes place:

1. We must determine how much change is needed to accept the new strategy. A big

company like General Motors Corporation (GMC, USA)has taken several years to steer

around and yet still in deep weeds. At implementation stage, magnitude of change must

be arrived at so that the right momentum is gathered. In other words, acknowledge the

problem and set standards to reach for effective progress.

2. We need to analyse and manage both the formulation and implementation meticulously.

It is one thing to formulate and quite another to implement correctly and in the right

doses.

3. There is need to decide which mode to be used in the implementation process because

there are different approaches. One option is to be autocratic and declare that the entire

organisation must tow the top management line. Another is to consult the middle

management on the modalities and let them implement as they see best. Still another

would be to consult the whole organisation and each person implements as seen

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convenient. Each of these approaches has problems that beset them. Sometimes quality is

compromised, especially if it is left free for all to implement as they see best.

When the formulation and implementation are well done, the next is to see that this plan is

working according to schedule and in line with the desires of the strategy architects. The process

at hand is dealt with under strategic control and is slightly different from the traditional control

we have in ancient management practice. This is basically the monitoring, evaluation and

improving of activities. Continuous improvements or KAIZEN is another buzzword in

management circles. (Kaizen is a Japanese word, which talks about continuous improvement of

products and services) When control is in place, it ensures that the organisation is kept on course

all the time and emergent strategies are imbibed at the right time and at the appropriate levels.

Control helps the strategic manager to achieve the organisational goals. As can be seen, quality

rears its head even here because continuous improvement is hewn from TQM!

At some point, Strategy takes us into the international environment where it must be applied. On

the international scene, many complexities with respect to strategy are encountered. Here, cross

border trade, different cultures, attitudes and tastes must be smartly and adequately addressed. It

is difficult to find one universal strategy because different cultures interpret things differently.

Their value systems are poles apart in some cases. As they say, “PLAN GLOBALLY BUT ACT

LOCALLY”, better still in strategic terms, “Think long term, act short term” This phrase

summarises the international strategy as brought out in international marketing. Among the

issues tackled on the international scene is the need to be customer oriented as far as possible,

respond promptly, churn out high quality goods and services. Strategic acting is critical. Trade

agreements such as the general agreement on trade tariff (now WTO) GATT are intercepted. The

tariff barriers and regional economic groupings cannot be ignored on world trade. More

significantly is the advent of the usually huge multinational organisations which have feet

littered across many borders and buttressed with a large work force, though there is now a trend

Billy Sichone

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towards smaller, lean and sometimes virtual agile and buoyant organisation in the rough and

turbulent economic tidal waves of the 21st century. That is how the Japanese have triumphed thus

far over the Americans and the rest of the World. Today, the Japanese are the foremost quality

car producers capturing over 20% of the world market, as the Toyota brand reigns supreme for

instance. They have carried the day both in terms of number of cars sold as well as superior

quality, thus curving a cost effective unique niche although the Americans seem to potentially

hitting back by using computer simulations and shorter new model roll outs. Never make a

mistake of exposing your technology to Japanese or an Indian as they will quickly copy and

improve on your product idea beyond your recognition and yet it was initially your idea! A story

is told in certain circles that some parts of Europe do not allow Indians or Japanese to go beyond

a certain check point. Other nationalities, especially Africans are freely allowed to tour. One

wonders why but upon scanning what is beyond that point, it becomes evident that a lot of the

state of the art cutting edge technology is hidden there and must be protected at all costs. The

African and others are no threat as they are often ‘real and genuine’ tourists in the truest sense of

the word who simply marvel and go away empty headed! Not so the Japanese or the Indians!

The fellows are far too smart armed with photographic memories and once they pass through,

they will have carried along all the technology with them! Could it be, as strongly believed in

some circles that these people have good mathematical heads while others do not? We have no

telling.

Another interesting story is told that the first world countries develop technology valleys such as

the Silicon valley where technological ideas are hatched, harnessed, nurtured and improved

upon. One country in Europe is said to hire the best brains in the world to their facility on short

term contracts which they eventually fizzle out after they have “sucked” all the cutting edge

technology out of an individual. They ensure a native national supervises or understudies the

hottest whiz kid on the block, learn the ropes and eventually discard the poor fellow! To keep

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someone on a high pay roll for two or so years is not easy but what they get in return is ten fold

what they “invested”. Let us discard the mere tourist mentality and get down to serious business.

As earlier alluded to, TQM radiates brightly in this module. It sparkles in almost every sentence.

The Total quality issue has been around for some time now. Although we shall undertake a

deeper historical analysis of TQM history in the subsequent units, it is fitting at this stage to give

a snapshot. TQM first had its proponents in the late 1940s and 50s, although some authorities

argue that it has its roots long before this period. Interestingly, they were all Americans! The

three Quality Gurus, as they are popularly known are E.W. Deming, J. Juran and P. Crosby. All

these propagated that quality was the master key to market expansion, and project success long

before the American Multinational giants realised. The first and foremost of these is Deming

who got his Bachelor’s degree from Wyoming University. He went further and got his Doctorate

from the Yale University. Thereafter, he used statistics in the US weapon industry. After the

Second World War, Deming went to Japan to help the Japanese rise from the ashes after the

Atomic bomb disaster. He began to legendary lectures leading to a successful quality

indoctrination of the natives. There has never been a turning back. The Japanese were initially

notoriously renowned for mediocre quality goods but after those power packed and inspiring

lectures, they began to improve quality. Deming went back to America but was later recalled.

This led the highest honour being bestowed upon him. All the while, the giant multinational

titanic corporations were not for a moment aware that the Japanese quality was making inroads

into the world market. Deming proposed 14 points which, according to him, were to guarantee

success. The quality we see today is but a fully-grown tree of some of the seeds sown by earlier

by Deming. Juran was more or less a contemporary of Deming except that he came slightly later.

He too taught quality in all aspects of the product. Like Deming, he was honoured as well with

the highest medal in Japan. Crosby is considered one of the gurus because of his outstanding

contributions to the Total Quality Movement. But what is Total quality? It can simply be

answered as ‘the move towards better all pervasive quality products and services at all levels’. In

the past, defects were reacted to and corrected after they passed through the production chain but

with TQM, the organisation is pro-active. The goal is to get a zero defect and also to

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continuously satisfy customers. There are certain characteristics, which are universal as listed

below:

i. Total quality is customer driven. In other words, what customer wants and desires is what

goes, the customer calls the shots, as it were.

ii. There is a strong quality bias in all that is done.

iv. There is never a time when quality is stagnant. The organisation is ever improving-Kaizen

v. There is more employee participation in the planning, implementation and monitoring of the

process. In the past, some areas were only for the top brass and certain special departments. The

organisation of the future has moved away from the old way of doing things.

Total quality affects all areas of life today. If the quality is poor, the company risks losing market

share and eventual death! Countless academics and authors have poured out huge TQM

avalanches over the years showing the importance in our days. Although many have heralded it

as the grand panacea, the TQM movement has not advanced unnoticed or unscathed. Some think

it is just a passing craze (or fad) like other programs. Others have talked a lot about it but have

not internalised it into the organisation system so that it virtually becomes invisible to the naked

eye, because it is so ingrained and embedded into the corporate work culture. By the same token,

myriads have attended workshops and courses but as soon as they got back to base, they closed

their files and continued as before. In many instances, the top leadership does not seem to

support TQM, while in other cases are too cost conscious, or demand instant results. What they

forget is that TQM takes time to cultivate and results long term. It is a process. Thus, the

Japanese are more proficient because they have been at it for over four decades and their cultural

values support teamwork which has to be learnt by the individualistic capitalists.

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With time, the proud and static Americans realised the quality importance and thus set up the

Malcolm Baldridge prize in 1987 in a quest to boost market dominance. It became law. Other

standards like the ISO 9000 are worth looking at. There are five standards in the ISO 9000 series

but the most frequently used are ISO 9001 to 9003. Many organisations demand ISO

certification if they are going to do business with any client. The ISO 9000 basically looks at the

process used to produce goods. However, the ISO 9 000, does not look at many other factors

such as interpersonal relationship, circumstances, attitudes and feelings. ISO focuses on

processes. The future organisation has no option but to revisit the quality standards and also to

apply for certification if they are to be key successful players on the international market.

Having traversed the exciting quality landscape, one feels as though they begin to descend from

the mountaintop. They are at a ‘quality anticlimax,’ as it were. The other equally important

strategic components include the social responsibility and ethical considerations. The corporate

social responsibility issues (i.e. paying back to community by sponsoring contest, rehabilitating

clinic etc) orbit around whether a company or project should or not do any social good, which is

not directly linked to its main objectives. By that token, there has been considerable debate over

this in recent years. Some think the benevolent acts belong the state while others view it is a

corporate obligation as well as a powerful marketing tool. That said, increasingly, more and

more companies have opted for the benevolent and marketing option. This double edged sword

cuts down on tax and builds corporate image

It is crucial to look at the supporting departments, which are crucial to smooth running of the

organisation and also for strategic purposes. The Marketing function for example, helps not only

to market the goods but also to carry out research, which is crucial to find out what the customers

tastes. The Finance helps the organisation to “count its men” and avoid all extremes such as

These standards have to do with product and process quality standards. Specifically, ISO 9001- 9004 relates to quality management as well as systems. Various other standards exist for different industries. For instance, the ISO 14000 series focuses on the environment. It is worth knowing your relevant standards before you embark on the certification process.

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under or over trading. The balance sheet must cease to be the centrepiece of organisational

operation and development, although equally crucial. In some organisations, the Human

Resources department ensures the right staff are recruited, hired and developed. All these must

be viewed as parts of one organism so as to maximise on efficiency and effectiveness. As the

perceived universal panacea, quality standards will remain the main thing for decades to come

but what is more important is to make TQM work for us and not remain merely an ideology.

======================================================

Case study 1

The race to Mongu bus route superiority

At one time a trip to Mongu was the most dreadful of journeys to undertake. Not only was the

journey long, strenuous and sweaty, but also it was one that a person had to physically,

psychologically and emotionally prepare for long before hand. The road was as bad as the

vehicles that would be used. A single one-way trip would take no less than three days! As though

that were not bad enough, the route was serviced by one fleet of state owned infamous United

Bus Company (UBZ) buses!

Today, the picture is completely different, as one can manage to travel to and from Mongu in a

single day! How so different a scenario! What has caused this and what has been the impact? As

you might be aware, the number of buses servicing this route on a daily basis has increased from

one to over four! When the UBZ folded in 1994, shortly after the liberalization of the economy,

other transporters sprouted and started to service the selfsame route though they were more

Jack Welch would rather focus on cash flow not balance sheet ‘The Jack Welch way’ by Stuart Crainer, Magna Publishing Company Ltd, 2003 The UBZ & Zambia Airways closed in 1994. See the Southern African Economist Magazine of Feb/Mar 1995 pp23.

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unreliable and unpredictable than the UBZ that to some extent had guaranteed departure and

arrival times. As these initial transporters took on the route, a bus popularly known as Time bus

or JR came on the scene. This proved to be more agile, comparatively customer friendly and had

more capacity. This move caused others to fizzle out, as they could not compete. But just when

JR was becoming the established route leader, the RPS made a sudden appearance on the

horizon, this time even more efficient than JR! There were reported fights and violent instances

between the rivals. In no time, RPS robbed the market though JR still remained a formidable

force, in the peripherals. RPS then became the upper class market bus while JR serviced the

poorer sort of travellers. As a result of the near monopoly on the route, RPS became too

comfortable, complacent, obstinate and less customer focused. There were instances when the

RPS crew would violently hound out or insult customers and still get away with it.

Alas, in 2000, CR smelt the profit on the golden Mongu route and was irresistibly drawn into the

race. As expected, CR arrived with a bang and momentarily shook the RPS not a little as the said

fleet had not expected any other competitor. CR came with robust modern marketing strategies

that completely out witted RPS. Some of the weapons exploited were introducing a customer

friendly service and at times even offer drinks or fruits free of charge! Another avenue was the

introduction of good quality, timely buses fitted with Video/TV. This was too good for an

average Mongu bound bus by then!! In addition, the service ensured all the buses were never

overloaded and initially begun with a lower price so as to capture the market. In no time,

customers shifted allegiance enmass. Soon, the anticipated funeral procession to the bus

graveyard for the once potent RPS and JR was imminent, though they lingered around a little

longer than expected.

As providence would have it, in 2001 after reigning unrivalled on the route for over a year, Euro

Africa heard about the fame and richness of the western province route and joined the race.

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Determined not to be out done, the Euro Africa employed similar strategies that CR had used

except that they emphasized on timeliness on all routes. This has worked well and potentially

dislodged the undisputed Mongu route heavy weight champion-CR. For a season, the incumbents

were paralysed because they were in the same market niche with Euro. JR still limped along but

better than the other two as it serviced the poorer sort who would be packed like sardines on the

buses, with luggage littered all over the place including the passage way.

Progressively, the battle raged hotter as the buses used all sorts of strategies that included

different departure times. For instance, some now start off as early as 04:00 in the morning and

arrive at their destinations at about 10hrs and then make a return trip at 14 hrs, all in a quest to

get that extra buck!

Thus, the battle for route superiority rages on as other bus services like Juldan, Shalom, Germins,

Zoom etc join the race, one wonders who will ultimately carry the day, let us keenly watch…

Case study questions

What is has made some bus services/fleet more successful than others on the Mongu route?

What one ingredient has been key to success?

What would you attribute this improved service in Zambia especially after 1992?

Do you think the upcoming bus services will sustain superior quality service? Substantiate your

answer giving reasons why you think/do not think so.

What are some of the pitfalls each emerging and incumbent bus company should watch out for to

succeed?

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Case study 2

The rise, progress and spread of the Zambian Post

newspaper 1990-2007

For nearly 27 years, the Times of Zambia and Zambia Daily mail (though both initially had other

names before), both State run papers, although nationalised some time after independence,

reigned supreme. They were by far the most potent government propaganda daily print media

mouth pieces and to the extent they reported, to that extent most Zambians were informed. Their

operations were extremely government regulated and dared never publish any iota of government

critical news item. The key strategic positions such as Editor and above were to a large extent,

political jobs. In terms of finances, the papers raked in millions although most of the times, the

papers were inefficiently produced, of poor quality, highly subsidised and distributed to mainly

government departments that probably never settled their accounts. As for competition, well,

your guess is as good as mine, they competed between themselves in a cosmetic fashion! I guess

they spent more time gossiping about pay rises and political promotions than strategising to

competitively outwit each other on the market. Very few foreign publications were allowed, and

if they did, one paid dearly to get a copy. The News week, Economist and Times magazines were

about the only potent foreign publications worth talking about at the time but even then, most of

the propagated ideas could not resonate with the average mind as the government controlled

command economic and political system impeded outside contact and exposure. In any case, if

anything was viewed as antagonistic to the State, heavy censoring ensued, if not the total

banning of that particular issue. That is how things stood as at 1990. By all standards, the Times

of Zambia and the Zambia Daily mail were national standard trend setters and appeared poised to

maintain the superior market share given their extensive and complex national network, perhaps

even beyond the borders of this country.

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But then something happened in 1991, from nowhere, a publication called the Weekly Post was

born whose editor was Mr Fred M’membe alongside some prolific, racy, penetrating and

piercing writers such as the late Jowie Mwiinga, atheistic Mercutio and the towering Bright

Mwape, a first or second year Evelyn Hone College Journalism student at the time. The powerful

Yuss dazzled the readers with his artistic caricature antics and later the quaint satire writer,

Clarke. Never before had the Zambians ever experienced such stinging daring reporting. At the

time, Dr Kaunda with his hench men were the prime target, and the major issue of the day,

reintroduction of the multiparty politics. At first, the long established papers (Times and Daily)

sneered at, mocked and ridiculed the puny back yard weekly publication that seemed to have

been formed by a consortium of perceived disgruntled fellows with a little support from

anywhere. What could they do? How could they dislodge such long standing and time tested

papers with a powerful international profile? How could the half baked journalists possibly ever

match up with the seasoned, experienced and ripe writers of the day? What about their

distribution, coverage and regularity? What would these frail and perhaps diseased guys do, why

waste their time and resources? So went the ridicule avalanche, similar to the taunting Nehemiah

and company faced (Nehemiah 2-8) when rebuilding the Jerusalem walls. The Post was indeed

bullet riddled and pelted from all angles at the time. The New paper idea appeared a sick joke

and near lunacy at the time. As expected, the young but living paper experienced some initial

operational setbacks but as the stinging and revealing investigative reports begun to pour out, the

world sat up straight, because a new force had hit the scene. Not a few eyebrows were raised as

the once fragile looking paper begun to dig deeper whilst others desperately attempted to bury

the trash. In no time, the titanic traditional and so-called “objective” papers begun to feel the heat

of the potent and fearless Post editorials. Before long, litigation battles ensued raised by mostly

high profile personalities in the country. It appears that they (people) were traditionally

accustomed to unquestioned filthy clandestine dealings and could not simply stomach criticism,

akin to one stealing relish from a pot. In no time, the paper garnered sufficient clout and

credibility among the national papers. The paper that dug deeper carried the spirit and aspirations

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of the general populace though it appeared rather too radical then, after nearly 27 years of State

controlled media. As a result, the Weekly Post was verbally outlawed in many circles and not

bought by the State. That did not cool the Post momentum. With time, The Weekly Post turned

into The Post and confidently took its place among the daily newspaper stands, clearly out

growing the rusty rest. Today, the paper is by far the foremost widely read Zambian paper both

at home and abroad. Its daily hard copy circulation coverage of nearly 15,000 reaches the whole

country, the Internet and gets to many outlets long before the Times or Daily Mail do. It has an

efficient and effective distribution channel with a reliable transport fleet. Besides, the newspaper

contents are worlds apart with the Post carrying burning and current relevant issues of the day.

The catchy headlines and punchy editorials make the paper stand apart from the rest. Further, the

paper has been moving with the times and seems to have a finger on what the real issues are and

what people want to and are itching to hear. The Post has a way of exhuming and exposing dark

corner secret bedroom meetings that countless times even catch the President by surprise. A few

of those startling revelations have sometimes sent the man hysterical! One can’t help but think of

what was said about the Prophet Elijah (2 Kings 6:12). Sometimes, the Post makes the alleged

corruption infested government appear like a seriously dysfunctional information leaking vessel.

Hence the endless skirmishes with the powers that be.

But the Post has other unique attributes as it is full of innovations that are absent in the

traditional papers. I suppose penetrating the “Kariba Dam wall” bureaucracy makes it a fruitless

task to attempt change the ancient lethargic state run papers, as one is better off looking for and

sipping away Zigolo all day. As an example of what I mean, the paper has continuously

introduced powerful sections such as the Business Post, the feature articles, the Sangwapo

(advertisements), the Saturday Educational Post, lifestyle, sports, Farmers’ Post and the weekly

personality profiles among many forward looking ideas. The paper consistently continues to

As quoted from a reliable veteran source. The estimated volume for the state run papers is 12,000 (Times of Zambia) and 7,000 (Daily mail) down from 45,000 in the 70s and 80s! Zigolo= A sugar saturated cold solution popular among boarding pupils and students.

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improve but never losing sight of the original resolutions of being objective, profitable and

candid. It is clear that the Post rakes in millions daily and is the trendsetter of the times on the

newspaper market. The traditional papers are still clutched in the bureaucratic mode and are no

match for the agile Post. The Daily Mail and Times are miles behind as though they never once

commanded nearly 100% of the Zambian newspaper landscape. For instance, one can still find

the Times and Mail on the streets as late as 15 hrs selling at ridiculously slashed prices. The Post

will have long run out, even in most of the smaller towns! Sometimes one wonders why waste

tax paper’s money on papers that won’t sell but merely used for political propaganda. Another

thing one notices when you encounter a Post and State Journalist is the difference in the attitude,

diligence and motivational levels. A Post journalist will compass land and sea to get accurate

fresh information. The others grumble all the way, are laissez faire and generally laid back unless

there is some “motivation”! Why be bothered when they know that whether they report or not,

whether the paper sells or not, the tax payer will still subsidize the company anyway! After all,

their pay cheques are guaranteed. The Times and Daily papers have not awakened to the needs of

the times. They need to review their strategy consistent with their fine and unequalled motos, if

they have a strategy at all apart from reporting on globetrotting President or busy defending

blatant clear irregularities! People will not always buy a paper like that! People are looking for

credible tangible news, both local and international. Apart from the job advertisements and a few

Internet downloaded news pieces, what do the papers have to offer? In fact, it is the

advertisements that cause most of readers to occasionally buy the said papers. Perhaps, they

should consider crafting a strategy that revolves around the advertisements, it could just be the

long sought after money spinner!

Having said the above, there is need to mention a few perceived weaknesses and strengths of all

the papers. In many senses, the Post leads in many areas of strength but sometimes is perceived

too strong for the 27 year suppressed Zambian minds. Besides, our cultural norms do not as yet

sufficiently appreciate some of the things promoted especially on the lifestyle section. Some of

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those reports are too extreme, nearly nude and offensive to a wider audience, though some

consciences are becoming seared by the day with the Satellite TV advent. That explains why

some political leaders bark out loud once hit under the belt. The Post should watch out what it

promotes in the name of “modernism” or “Post-modernism”. In terms of candidness, by and

large, it is doing a great job though this opinion is relative. Another caution though, watch out for

potential new market entrants. It is true that many have come and wound up in the intermittent

period but one may just manage to dislodge the paper that digs deeper in terms of sales, just like

it (The Weekly Post) did in the early nineties! Continuously improve and build a powerful niche.

Learn from the Zamtel that is being beaten by new comers like Celtel despite potentially having

the widest telecommunication infrastructure network in the country. Today, Cell Z is trailing far

behind Celtel, what more when mighty MTN settles? There will be entertaining drama! I

suppose that is what a market economy is all about but take heed lest the Post also joins the other

dead papers in the already crowded corporate bone yard.

As for the Times and Daily Mail newspapers, a lot of lethargy, scrap metal and boxed thinking

still needs to be hurled out. Sadly, these papers remain in the organisational coma surviving on

the taxpayers’ life support system. They are actually a drain on the meagre national resources

and not worth supporting unless privatised or let to run independently and professionally. If

possible, these should be commercialised or spun off from state control. Away with the mediocre

archaic politically infested management and puppet journalism! The times have changed

therefore, it is high time to awake. Largely, the invisible political hand messes up these potent

media entities. The same goes to the now frustrating ZNBC. The Daily Mail and Times should

urgently shrug off all impediments and give the Post newspaper a run. Perhaps one way to beat

the competition and silence the Post is to commercialise one of the state papers into an

independent tabloid or investigative paper akin to Uganda’s Monitor paper. It is a smash hit

worth spending your cash on. But knowing African politics and politicians, that is a farfetched

dream, perhaps unique to Museveni. That said, both papers need to improve on their reporting

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quality, especially their generally poorly researched and biased editorials. The language level is

good enough given the target readership but there is need to polish up even there too. One hardly

feels they are reading good standard English when their eyes are scanning these papers. The

language level is rather too low for developed, broad and exposed minds. If the lower brackets

(and they are in the majority, though most do not buy as they cannot afford!) of society are the

target group, then well and good!

The page size of the papers is needlessly too large, perhaps to accommodate more

advertisements. To their credit though (Times and Daily), their advertisements are good and this

is highly encouraged. There is variety and a good assortment. They get rid of the adverts at their

own peril, though the papers need to add more innovative contemporary issues that will motivate

almost every Zambian, old or young to walk across town to get a copy of the Times or Daily. I

often find it intriguing when kids troop to read the education Post, that is the way it should be!

Others want to read Kalaki, Pastor Cholwe Mweetwa, Dr Canicius Miles Banda, Ms Lucy

Muyoyeta, Dr Neo Simutanyi, Dr Simeo Siame, Dr Owen Sichone, Dr Judith Lungu, Mr Simon

Kabanda, prolific Mr Chibamba Kanyama, racy Professor Fackson Banda , Professor Clive

Chirwa and myriad other seasoned brain waves of our times. They do not only look for the

adverts but far much more. That gives value for money.

Well, as the dynamic newspaper landscape continues to mutate, let us sit back and meticulously

but keenly observe what comes our way next. Will a paper greater than the Post arise soon? It

presently seems not to the naked eye but let us not be too comfortable lest another dislodges all

the present three leading papers of the day much like what the Post did back in 1991.

Case study questions

What one distinctive competence does the Post News paper have over others?

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Given a choice, what would you change or do differently at the Post?

What areas need improvement in (a) state run print media and (b) the Post?

Do you think the post is a catalyst to development or a mere nuisance? Justify your answer.

How best do you think the State run and other Post competitors can improve (a) their

profitability/market share and (b) their operations?

Is there a likely hood that a new market entrant will dislodge the Post soon from market

leadership? Give reasons for your answer.

Revision exercise

Describe what you know about the evolution of quality perceptions.

Why is quality so important in today’s world?

Why do some perceive quality as a mere passing management fad?

What do you know about the ISO standards?

What do you know about the Malcom Baldridge National quality prize and its significance?

What do you understand by the statement “Quality must be embedded in the system”?

Mention something about the “big four” quality gurus.

What is unique about Japanese management? In your opinion, is it superior to the western mode?

In your own words, write brief notes about Kaizen, the ringi system and their importance.

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BibliographyBellingham Richard, Virtual Teams, Jaico Publishing House, 2003

Bowler J, Bartlett C, Uyterhoeven H, Walton R, BUSINESS POLICY: managing strategic

processes. Irwin McGraw-Hill, 8thedition, 1995

Burnes Bernard, Managing Change, 4th edition, FT Prentice Hall, 2004

Campbell J David, Organizations and the Business Environment, Butterworth Heinemann, 2002

Certo C Samuel & Peter J Paul, The Strategic Management Process. Chicago: Austen

Press/Irwin, 1995

Cole Robert & Mishler Lon, Credit Management, Irwin McGraw Hill, 1998

Crainer Stuart, The Jack Welch way, Magna Publishing Company, Ltd, 2003

Henderson Gordon, “Quality is Key”, Banking world, December 1992 pp 26

Higgins C Robert, Analysis for Financial Management, 5th edition, Irwin McGraw-Hill, 1998

Higgins C. Robert, Analysis for Financial Management, 5th edition, Irwin McGraw Hill, 1998

Kakabadse Andrew & Analoui Farhad, How to recognise & Manage Corporate Sabotage, Jaico

Publishing House, 2004

Krames Jeffrey A, The Welch Way: 24 lessons from the world’s greatest CEO, TATA McGraw-

Hill publishing company, 2002

Mc Carthy & Perreault, Basic Marketing. 11th Edition,

Oakland John S & Porter J. Leslie, Cases in Total quality management, Butterworth Heinmann,

1994

Oakland S. John, TQM: Text with cases, Butterworth Heinemann, 2003

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Patton Quinn Michael, Qualitative Research & evaluation methods, 3rd edition, Sage Publications

2002

Peters J Thomas & Waterman H Robert jr, In search of Excellence, Warner books, 1984

Plessis Du A P & Smit P J, Management principles work book, Juta & Co, ltd, 1994

Pugh G. David & Bacon R. Terry, POWERFUL PROPOSALS: How to give your business the

winning edge, Magna Publishing Co. Ltd, 2006

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edition, 2006

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December 1989

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Sleight Steven, Moving to E-Business, Dorling Kindersley, 2001

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Unit 2

Aim

The aim of this unit is to ensure the student understands the genesis and exodus of the quality

revolution, giving an adequate background enabling the modern TQM student to confidently

contribute new and relevant fresh ideas. In addition, the unit has two other aims to:

a. Equip students with an appreciation of relevant quality and human resource standards

b. Give guidance on why ISO is critical.

Objectives

By the end of this unit, the student should:

a. Know & appreciate the early Quality gurus.

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b. How TQM revolution has impacted the world since inception (1940s and 50s).

c. Know relevant project management quality standards

d. Basically interpret some key standards

A brief history of the quality revolution and its development

Any revolution has its heroes. The heroes may be many or few but at the centre of it all, a small

pack of people are usually at the core of the movement. These people, male or female are often

filled with a growing passion to see drastic change take place whether in their life times or not.

What bothers them is that the problematic status quo is maintained without challenge. Hence,

they stand out from the crowd and in their unique way make known their throbbing heart desires.

What matters so much to them is not fame but contribution to a noble and worthwhile cause

whether they be isolated or lone voices in the wilderness. The Quality development story is such

a case in which distinguished men and women, some accomplished in their respective fields,

have selflessly and consistently sacrificed so much to achieve change. It is fitting therefore to

spend some time to give honour to such venerable folk that have been the frontrunners and foot

soldiers in this noble cause that has engulfed the quality world so much. This unit therefore is

devoted to their memory as well as giving an objective historical narrative of how things

unwound to reach where we are today in this never ending quality journey. To effectively do

this, we briefly give a history of each of the giants as well as what they contributed and then in

the last section consolidate and summarise everything before proceeding to the next unit.

Naturally, to kick start this process, we consider the legendary E W Deming who in many senses

is considered one of the fathers of the quality movement especially in Japan.

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W. Edwards Deming

W. Edwards Deming

William Edwards Deming was born on October 14, 1900 in Sioux City, Iowa, USA and for

some time lived on his grand fathers’ chicken farm in Polk City, Iowa before moving over to Powell, Wyoming state, where eventually, he enrolled as an electrical engineering undergraduate student, successfully completing his studies in 1921. He then enrolled for and completed his Masters (University of Colorado, 1925) and proceeded to pursue a PhD degree in mathematics and physics completing in 1928 at the Yale University, where he no doubt proved his mettle. The young graduate for some time worked in several places that included a brief stint at the Bell Laboratories (internship while PhD student) as well as the United States Department of Agriculture (USDA: 1927-39) and the United States Census Bureau (1939-1945). While at the Bell Telephone laboratories (1927), he came across Walter Shewhart’s works and was very intrigued, learning some of his earliest quality ideas in statistical control from him (Walter) which he would later develop on and apply to quality issues. Whilst working with the Bureau, a team of experts that included him were assigned to help out in the rebuilding of Japan as it was occupied by the allied forces at the time and desperately needed external help. That was about 1946/7 and Deming would later return in 1951 (under the United States Department of the Army) to assist with the census and eventually give a series of lectures on statistical control as relates to quality. But a year earlier, Deming gave many lectures that were highly appreciated by the Japanese Union of Scientists and Engineers (JUSE) due to his expertise in Statistical Process Control (SPC). He also taught some company executives that cared to hear him on quality improvement. He returned to the USA only to be re-invited and later honoured with the highest

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Japanese honour by the Prime Minister of Japan (1960), acting on behalf of the Emperor. Deming received Japan’s Order of the Sacred Treasure, second class. This was in an addition to the string of honours he had already received and was to. The earliest honour was the setting up of the Deming quality Prize way back in December 1950 for his selfless contribution to developing Japan from the atomic ashes as well as fostering the lifting Japan from its well established mediocre quality product reputation. All the while, Deming was ignored and little considered in his native America and nobody bothered about what he said because soon after the second world war, the American multinationals with their superior products were sought all over the world and it would appear they were too busy supplying the ferociously sought after American branded products to pay attention to the lone quality voices that were shouting the sustainable answer to market share expansion. Sadly, they were too faint to be heard in the hustle and bustle of international business. As time went on however, the Japanese adopted these teachings, many of them encapsulated in Deming’s 14 points and applied them with increasing success. By 1980, the Japanese could not be ignored as the quality products coming out of Japan were exceptionally good, reliable and conformed to international standards, in many instances outstripping as well as outperforming the established international brands. Further investigations revealed that the Japanese had adopted higher standards for their goods and services which inevitably were better than what they themselves were churning out. A story is told of Car models with transmission made in Japan and United States respectively. Both these engines had similar design specifications were sold to the public but customers quickly preferred the Japanese made transmission. This puzzled the American vehicle manufacturers. After much investigation, the American car manufacturers discovered the reason why customers preferred Japanese made cars despite a similar design and same specifications. The Japanese had used slightly higher standards and thus their engines, although of the same design as their American counterparts, were slightly higher in standard by very few measuring units. This explained why their engines were more reliable, efficient, lower defect rate, cost effective superior performance and thus preferable. But this was not the only area, they embedded quality in about everything which irresistibly captivated the customer. In the course of time, and after much investigation, they discovered that a set of Americans were in fact behind this success story although they had gone unnoticed or recognised in their native countries. Thus, a number of companies searched and found this guru (Deming) and contracted him prevailing upon him to write the book “Out of the Crisis” though originally called “Quality, Productivity and Competitive Position” in 1982 after his theories marvellously worked for the USA as well. Deming did various works and consultancies chief among them being his work at Ford Motor Company. They hired him to advise management on how to turn the ailing company into a profitable one which he readily agreed to do. Expecting him to started talking about quality issues and statistical control when he arrived at the firm, the man instead emphasised management action and commitment. According

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to Deming, about 85% of the problems in companies were caused by management action or decisions and thus he asserted that the Ford problem lay in management because if management was not committed or did not take responsibility, the quality programs would invariably fail. Ford tried these ideas and surprisingly turned out profitable that year and in subsequent years, to the extent of even beating its traditional arch rival and competitor, General Motors Corporation. Crysler and others were also beaten clean. Thus, he penned down the classic book, “Out of the crisis”. Deming continued to teach, lecture and hold workshops throughout the rest of his life being peacefully gathered to his fathers on December 20th, 1993 in Washington DC, USA.

But what were his interests as well as his profound contributions to the quality movement evolution? It would appear he led a very simple life and delighted to lead a low profile life. For one thing, he faithfully sung on a choir, played flute & drums, wrote some sacred choral compositions, composed music & loved music as well as wrote in his spare time. This great man was simply amazing! In his life time, Deming was an American Statistician, Professor (New York University-1946-1993 & Columbia University-1988-93), author (authored “Out of the Crisis-1982-86 & “The New economics for industry, government, education”-1993), lecturer and consultant, all in one mortal! As a result of his huge contributions, Deming received a string of honours from all over the world.

As to his profound contributions, Deming hugely contributed in various ways. For one thing, he emphasised quality control through statistical means and management responsibility for effective quality management. For another thing, he selflessly taught the Japanese Scientists, Engineers and corporate executives with little personal gain. His was a labour of love. He also wrote an influential book as well as bequeathed the world with the famous 14 quality improvement points. In addition, Deming helped the Japanese discard low quality output and helped them appreciate higher competitive standards. This led to their international success and unprecedented economic development. But lastly, he went to Japan more than once to teach quality matters sometimes at the risk of his life and reputation, especially after the Second World War. This was unprecedented commitment, even if there was little to gain. Even more interesting was the fact that he was not even recognised or given due attention at home until Japan took the world business centre stage by storm. As part of his contribution, we list the now famous Deming’s 14 points as quoted by the Wikipedia website:

“Deming offered fourteen key principles for management for transforming business

effectiveness. The points were first presented in his book Out of the Crisis (p. 23-24)

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1. Create constancy of purpose toward improvement of product and service, with the aim to

become competitive and stay in business, and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age. Western management must

awaken to the challenge, must learn their responsibilities, and take on leadership for

change.

3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on

a mass basis by building quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag. Instead, minimize total

cost. Move towards a single supplier for any one item, on a long-term relationship of

loyalty and trust.

5. Improve constantly and forever the system of production and service, to improve quality

and productivity, and thus constantly decrease cost.

6. Institute training on the job.

7. Institute leadership (see Point 12 and Ch. 8 of "Out of the Crisis"). The aim of

supervision should be to help people and machines and gadgets to do a better job.

Supervision of management is in need of overhaul, as well as supervision of production

workers.

8. Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of

"Out of the Crisis")

9. Break down barriers between departments. People in research, design, sales, and

production must work as a team, to foresee problems of production and in use that may

be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and

new levels of productivity. Such exhortations only create adversarial relationships, as the

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bulk of the causes of low quality and low productivity belong to the system and thus lie

beyond the power of the work force.

11. a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.

b. Eliminate management by objective. Eliminate management by numbers, numerical

goals. Substitute workmanship.

12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The

responsibility of supervisors must be changed from sheer numbers to quality.

b. Remove barriers that rob people in management and in engineering of their right to

pride of workmanship. This means, inter alia, abolishment of the annual or merit rating

and of management by objective (See CH. 3 of "Out of the Crisis").

13. Institute a vigorous program of education and self-improvement.

14. Put everyone in the company to work to accomplish the transformation. The

transformation is everyone's work. "Massive training is required to instil the courage to

break with tradition. Every activity and every job is a part of the process." ”

Clearly, Deming has taught us lasting lessons from which we can pick some valuable lessons. One of them being to remain humble, focused and committed to what we do best. Posterity will judge or vindicate us.

But then, we need to hurry on to consider another quality guru, who we cannot ignore, Dr Juran.

Joseph M JuranWhile Deming is remembered as the foremost quality and to some extent management thinker of

the movement, Joseph Juran can rightly be called ‘the evangelist for quality and quality

management’. This is for the simple reason that he spent most of his life advocating and teaching

on quality both in the American domain as well as Japanese. He was in a sense a contemporary

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to EW Deming though he came later. Let us briefly trace him through life and his marvellous

contribution to the quality movement:

Joseph M Juran was born on Christmas eve of 1904 in Braila, Romania. He was of Jewish decent

and later immigrated to America with his family in 1912 (the year the Titanic sunk) making their

settlement in Minneapolis, Minnesota, USA. As a young lad, it appears that Juran was brilliant

and thus excelled in school especially in mathematics. His mathematics and chess genius helped

him win and dominate the chess championship at Western Electric and later he graduated from

the Minneapolis South high school in 1920 and entered University of Minnesota where he

graduated with a bachelor’s degree in electrical engineering in 1924. The young gentleman then

joined the Western Electric’s Hawthorne works where his first job involved troubleshooting in

the complaint department. About 1925, the Bell Laboratories trained Juran in the new sampling

and control chart techniques, which Deming and others had been exposed to at around the same

time. Juran thus joined the Inspections Statistical Department where he and other colleagues

explored, applied and disseminated Bell Lab’s statistical quality control ideas. This activity

evidently propelled Juran to the upper echelons of the organisation in record time. And for sure,

this became reality for in 1928 he was promoted to department chief only to end up as division

chief in 1929. In 1937, he moved to the Western Electric/AT &T’s headquarters in New York

City where the great depression effects were severely felt.

Long before he moved to the head quarters, the great depression of the 1930’s was around the

corner and in a bid to mitigate its impact, Juran studied law (1931-1935) though he never

practiced law. For some reason, Juran quit(resigned) from Western Electric as well as his

Government post (at Lend-Lease administration & Foreign Economic administration) with a

view to go into private consultancy but later joined the New York University as an adjunct

Professor in the Industrial Engineering department. He taught quality control as well as held

seminars for executives for his consultancy was alive as well.

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Juran did a number of things that made him live well as well as etch an image for himself until

he retired in the 1990’s only to die 18 years later, well aged and full of quality wisdom. He went

the way of the earth on February 28th, 2008, at ripe age of 103 years in Rye, New York.

But what were his major contributions to the quality movement and what lessons can we draw

from his illustrious career and life? Juran made many contributions both at home (USA) and

abroad (principally Japan). We briefly state some of them and then hurtle along to draw some

lasting lessons from his legacy.

For one thing, Juran improved on the Pareto principle, which states that 80% of the problems are

caused by 20% of causes. Having exhumed Vilfredo Pareto’s work, Juran expanded this

venerable gentleman’s thoughts to include his famous sayings on “the vital few and useful

many”. Juran believed that although the 80% problems could be sorted out by dealing with the

20%, he also asserted that the 80% could not and should not be ignored in quality techniques.

For another thing, Juran is widely credited for adding the human dimension to quality

management for he taught that everyone in the company had to be involved in the quality

innovations if they were to be sustainably successful. Recall that he was for some time associated

with the Hawthorne, where the famous Frederick W Taylor worked? The human relations

scientific management trials were done at Hawthorne and thus may have influenced Juran.

Juran can also be credited the “Juran’s trilogy” which was the basis for the development of the

cross functional management composed of three managerial processes namely, quality planning,

quality control and quality improvement.

We can safely say that Juran was a bridge that successfully transferred quality knowledge and

practices between two cultures, the East and the West. Juran visited Japan in 1966 and learned

about the Japanese concept of Quality Circles, developed by the venerable Professor Ishikawa

and enthusiastically disseminated back to the West at his return. In a sense, he acted as a ‘go

between’ or matchmaker so that both sides of the world (USA & Japan) appreciated their

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perceptions and approaches to control. Probably that is why he has been dubbed the “Quality

movement evangelist” for he appeared quite zealous for quality matters.

Lastly, in terms of contribution, Juran was a writer, having written a book called “Quality

control hand book” of 1951 which captured the Japanese Union of Scientists and Engineers

(JUSE) who subsequently invited him over to Japan in 1952, around the time Deming had been

there, though independent of each other. While Deming focused on statistical quality control,

Juran focused on managing for quality, which later sent the American companies into serious

competitive trouble in the 1980s.

In terms of lessons from his life, we learn several, some of them being:

1. That there is a human aspect and component to quality that must never be ignored. People

need to buy into the idea and run with the ball.

2. Writing is important. He wrote his book as far back as 1951 and got noticed in later years

ending up as a renowned author and quality expert. He wrote many books that include the

following: “Managerial Breakthrough” (1964), “Management of Quality Control” (1967),

“Quality Planning and Analysis” (1970), “Upper Management and Quality” (1980) and “Juran

on Planning for Quality” (1988) among other works.

3. For another thing, Juran teaches us, that ground breaking work is not easily nor immediately

recognised or even readily supported. It needs patience, focus, hard work, resilience, zeal and

determination. He was a very zealous quality advocate both at home and abroad.

4. Regardless of where we hail from on this terrestrial ball, we can influence and impact the

world leaving an indelible mark upon our generation and beyond. Juran was originally Romanian

but impacted America so much, perhaps more than many American natives. Never despise the

day of small things.

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5. Lastly, we learn that people approach and perceive things differently. While Deming focused

on statistical control to quality, he approached it from another perspective but both contributed

greatly to the movement.

We can thus wrap up the life of this great legend in only a few words, live the conviction that

you espouse and your works will follow you now or posthumously. We need more people of

such calibre.

But then, our work is scarcely done, we must hurry on and consider several more quality gurus.

We next consider Philip Bayard “Phil” Crosby.

Phil CrosbyOur next great contributor in our chronicle of quality gurus is Philip Crosby, popularly known as

“Phil” Crosby. Crosby came slightly later than both Deming and Juran as he was born on June

18th, 1926 and died on 18th August 2001 aged 75.

Not much is known about Crosby’s early life except that he was a business man and author of

one extremely famous quality book called “Quality is free” which was published in the nick of

time when many American companies were struggling and losing market share to the Japanese

who had come of age and were churning out superior quality products at a far cheaper price.

Crosby worked as Quality Control Manager at the Martin Company at the Orlando, Florida plant

where he initiated the ZERO Defects concepts which would eventually result in mass cost

savings (30% scrap cost reduction) and significant reduction in the overall rejection rate (25%)

during the Pershing Missile program. Crosby simply insisted in doing a good job the first time

and thus reduced return jobs thereby cutting costs. Instead of focusing on quality control, his eye

was fixed on defect prevention while doing a fantastic job the first time. Crosby had a stint at

ITT before retiring to management consulting in 1979.

It was in that year that he published his famous book earlier alluded to above in which he

advocated among many things, the need to prevent defect and install as perfect quality systems

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as possible. In other words, Crosby made much about the systems as much as the process. At a

time when the crisis was getting deeper, this voice came as a possible solution to market share

loss which had the potential of revolutionalizing entire industries. Thus Crosby offered a number

of important pregnant points which would prove very handy to the ailing companies in the states.

For instance, he offered four major principles in addition to his 14 step quality improvement

program. These are summarised in the statement “Doing It Right the First Time” or DRIFT for

short. Here are the principles as stated by the Wikipedia site:

1. The identification of quality is conformance to requirements

2. The system of quality is prevention

3. The Performance standard is zero defects and finally,

4. The measurement of quality is the price on non conformance.

These points are heavily pregnant as they bring out a lot of principles which if properly analysed

and applied led to phenomenal results. For instance, he taught that the price to be paid for no

conformance was high because repeat jobs, market loss and inefficiency would be the order of

the day. In as much as the initial costs for quality program initiation were high, it was ultimately

cheaper in the long run.

After a distinguished career of both business man and consultant, Crosby, like any other mortal

gave up the ghost on August 18th, 2001 a few weeks before the September 11 catastrophe.

But what were his major contributions to the quality movement and what lessons can we draw

from his life? These are soon told and then we wrap up transitioning to another quality

contributor.

Firstly, Crosby was a prolific writer who excelled in communicating his quality ideas both in the

print and audio/video media. His writings can be found on the internet, written articles and

books. For instance, he wrote a book called “The Art of getting your own sweet way” published

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by the McGraw Hill publishers in 1981, while another title, “Quality without fears” published by

the same publishers. You would do well to visit the following sites to see some of his works:

http://catnyp.nypl.org/record=b4578224 and http://worldcatlibraries.org/oclc/13761&tab=details

to sample some of the man’s might. The take home lesson is that we should take time to write for

posterity.

In the second place, Crosby was a well seasoned professional and business person who ventured

into consultancy after proving his mettle in the industry, thus he did not merely trumpet theories

he was not fully conversant with.

Thirdly, He was dead correct when he asserted in his book that quality is free as well as why he

preferred to prevent defects rather than react to them later.

Lastly, we learn that we should dare venture into consultancy when we have strength rather than

when our present employers vomit us. Crosby was a man of many parts and galvanised himself

to get the best out of his talent. Unfortunately, most of us try out something when we have no

option and our energy far spent elsewhere.

Collectively, these three are called the ‘Big Three’ who devoted themselves to ensure quality

becomes the main thing rather than a by the way. Interestingly, each of these operated

independently of each other but significantly contributed to the quality movement though each of

them emphasised a different aspect.

Other equally important quality gurus who contributed significantly to the

movement

But then, these gurus were not alone in their quest to achieve high quality output. There are a

number of lesser known quality gurus that the world has not paid much attention to. Different

authors mention different people having mentioned the ‘big three’. We briefly mention them

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below and then proceed to consider some significant quality standards before we wrap the unit

with some labour related standards.

Kaoru IshikawaThe first we mention on the lesser known gurus is Kaoru Ishikawa, a native Japanese national

who made huge contributions to lifting quality standards in Japan including the Quality Circles

that Crosby got excited about. As earlier mentioned Kaoru was born in Tokyo, Japan in 1915 and

eventually worked his way through the education structure (Engineering undergraduate degree,

1939) before joining the working world where he distinguished himself, ending up as a

University Professor as well as an influential quality management innovator best known for

having introduced the fishbone diagram. This is used in the analysis of all industrial processes as

to their usefulness and quality.

His major contributions

Ishikawa was an amazing man of many parts. He learnt Deming and Juran’s principles and

translated them into Japanese as well as integrating them into his work. He also expanded the

management principles of ‘his mentors’ achieving outstanding success at Nissan and other places

he worked.

For another thing, he introduced the concept of Quality circles in 1962 in conjunction with the

JUSE.

Thirdly, he introduced the fishbone cause and effect diagram, sometimes known as the Ishikawa

diagram.

In the fourth place, he put much emphasis on the ‘internal customer’ as well as a shared vision

for better company success and efficiency.

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Fifthly, he wrote a number of valuable books that include titles such as “QC circle Koryo”,

“How to operate QC circle activities” and “Introduction to Quality Control” (1990).

For you to see some of his works, visit the following site:

http://en.wikipedia.org/wiki/kaoru_ishikawa

Having laboured tirelessly in quality circles, Kaoru succumbed to the cold hand of death in 1989

having left an indelible mark on the Japanese quality landscape. Indeed, he can rightly be

numbered among the ‘big four’ because he was a giant in his own right.

Armand FeigenbaumThe next giant we mention is Armand Feigenbaum. Little is known about him except that he

worked hard in quality circles to the extent that he has been numbered among the “big four” by

some writers. Specifically, he is well known for pioneering work towards cross functional team

concept, wrote a book on “Total Quality Control”, 40 steps to quality improvement as well

among many others.

General Douglas McArthurThe last (though not necessarily in contribution significance) of the great quality gurus is the

venerable General Douglas McArthur though he was of a different sort. He is not known to have

written or taught quality issues in the sense we know of Deming and others but he lived out the

quality philosophy. About 1946, post the Second World War, the allied forces still occupied

Japan and McArthur was left to govern the country. During his tenure, the General emphasized

quality so much to the Japanese and would not settle for anything less than the best. This

emphasis helped shape some of the Japanese thinking and probably explains why he directly or

indirectly brought Deming, Juran and others to Japan so that they could buttress his quality

convictions and views. This American really worked hard before he left Japan much later.

As to his contributions we can say that his one major contribution was to emphasise quality

throughout Japan which paid dividends later on and was in keeping with what gurus like Deming

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taught-Management action impacts greatly on quality. One lesson we learn at least is that we

need pragmatic action oriented people that will run with the ball as well as champion any cause

they elect to pursue.

Later Developments in quality circlesFrom a small insignificant stream, the quality movement gained momentum as standards begun

to be set, as well as Associations concerned with quality. We briefly mention some of the

Association as well as standards.

As earlier alluded to, the Japanese introduced the Deming prize on quality improvement and

application in 1951. Others were to follow which included the Malcom Baldrige National award

(USA, 1987) and the European Excellence award among others.

As for associations, the JUSE was one of the earliest, then the ASQ and European among many.

All these emphasize quality in various shades and approaches and were born out of a growing

concern to set quality standards as well as to see a better world with higher quality output. Some

of these also directly propagate the classic teachings of theses venerable quality gurus we have

mentioned above though primarily their concerns are quality standard related.

Quality StandardsIn the quest to improve and standardise quality across the world, various standards have been set

and continue to from time to time. By that token, quality definitions vary from association to

association but most of these centre around conformance, fitness of use and reliability of the

product. In general, each standard sets a benchmark producers must consistently equal or scale if

they are to be considered of an acceptable standard. As such, most of these standards focus on

zero defect as well as good processes that guarantee a good product at the end of the production

line. Other standards focus on service delivery standards which ensure that the customer is well

treated as king and repeatedly satisfied. For our purposes, we shall pick out some standards set

by the International Standard Organisation (ISO) which are relevant and relate to project

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management. We make a brief comment and leave the rest of the discovery to the student to

explore and comment upon.

Some standards and best practices relating to project management

ISO 9000

This standard is one major standards used by companies today to ensure quality. First established

in 1987, the standard focuses on ensuring compliance to standards or conformance quality as it is

sometimes called. The ISO 9000 series has a number of standards under it prominent of which

are:

ISO 9001: Guidelines for companies engaging in design, development, production, installation

and servicing of services or products as the case may be.

ISO 9002: Akin to ISO 9001 but does not include companies engaged in design and

development.

ISO 9003: Includes companies engaged in final testing and inspection.

ISO 9004: Covers quality management systems application guidelines.

In the USA, some of the ISO 9000 series has been issued under another code called ANSI/ASQC

& Q 90 series although they are essentially the same in nature and application.2

Some of the areas ISO 9000 looks at includes:

Management responsibility

Documenting quality procedures through systems

Review customer contract ensuring they bring together product offered and required.

Design process through quality control systems

2 Refer to Stevenson’s book, Production/Operations management by IRWIN page109 for more details on this matter.

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Document control

Conformance to standard and specific requirements

Use of statistical techniques where necessary and ideal

There are many other aspects that lead to ISO 9000 certification. Collectively, all these

requirements seek to guarantee quality delivery to the customer at all times.

ISO 14000

ISO 14000 touches quality issues as well as focuses on Environmental matters of ever increasing

importance. The Environment is a big issue today and no entity worth its salt dares ignore this

standard. As the interview with Mr Peter Njobvu of BP Zambia will reveal, ISO 14000 is as key

to business survival as it is to sound project management and implementation. Today and

tomorrow, an Environmental Impact Assessment (EIA) will increasingly become compulsory as

people seek to mitigate anthropogenic environmental backlash as well as planetary degradation.

Therefore, any project about to commence must adhere to this standard that gives guidelines and

standards to be observed before, during and after the project phase out. ISO 14000 centres

around environmental audit systems and the following aspect constitute this standard:

Commitment

Environmental Policy

Environmental review

Organisation & people (staff)

Targets and objectives

Environmental management program

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Documentation and manual

System reviews

Environmental audits and finally,

Operations Control & records

PRINCE 23

This relates to the bureaucratic standards and controls towards quality control and the acronym

‘PRINCE’ stands for Projects IN Controlled Environments. Basically, it is a structured way of

planning and managing projects of whatever size with a view to derive the best project results

possible, lessons learnt and best practices for future application. It is a form of a ‘laboratory’ to

test projects in structured controlled environments as relates to the project cycle especially

applicable and recognisable in the UK. It focuses on the “product” although does not guarantee

success. PRINCE2 is a recognizable standard for process rather than outcome quality, assuming

the correct procedures lead to good anticipated results. It is worth mentioning that PRINCE2 has

eight key process areas as listed below:

Directing the project

Planning a project

Starting up a project

Initiating a project

Controlling a project

Managing product delivery

3 Refer to Harvey Maylor’s book, ‘Project Management’, pp 399

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Managing the stage boundaries and finally,

Closing a project or Phase out

As shall be evident later, some aspects of this standard project cycle are followed by many

successful projects around the world. Once the above are followed, this is dubbed “good Project

Management” because all the due processes will have been followed to reach the expected

outcomes. PRINCE2 has other equally important components worth exploring but we leave this

to the student to pursue. Different views and schools of thought abound over whether to

subscribe to PRINCE2 or not but this is beyond the scope of this module, suffice it to say that

this is an approach which gives some direction and shape to project management. For more detail

on PRINCE2 and other relevant issues, visit the following websites: www.prince2.com and

www.spoce.com

BS-ISO 10009 (1997)

This standard houses specifications & guidelines relating to quality plans of project management.

So much then for the ISO standards, we proceed to consider some aspects relating to human

resources.

In a sense, part of the ISO certification (especially ISO 9000) includes not only what quality

processes are in place guaranteeing good quality output but also indirectly or other touches on

how staff in the system are treated to get the best results. They are “within the process” as it were

and hence there is hardly any justification warranting a separate unit on labour standards as

relates to Human resource in a project. Viewed from another perspective however, it is prudent

to state some standards that need to be observed at every project stage to ensure smooth

implementation as well as avoid disruptions brought about by litigation and disputes, as the case

may be. Hence, our consideration is not in detail but will centre around some International

Labour Organisation (ILO) standards which apply to all entities regardless of their magnitude,

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form, shape or direction. To adequately deal with these standards, we simply list them and give a

brief description leaving the student to investigate further. It must be stated that any Project

Manager, let alone employer will do well to familiarise themselves with these and apply them as

they work. We must also state that we have made no attempt to trace the historical developments

of these standards but encourage students to search out these. We limit our investigation to the

contents of these standards. Here we go then:

1. Basic Human rights such as freedom of association, freedom from forced labour and freedom

from discrimination (e.g. with the advent of the HIV and AIDS pandemic)

2. Employment which includes matters pertaining to employment policy, employment service

and vocational training/guidance.

3. Conditions of work or service. This alludes to wages, job security, work hours, occupational

health and safety, social services, housing and leisure, social policy.

4. Social security. This has specific reference to the well being of employees and covers matters

relating to medical care, sickness benefits, maternity, invalidity, old age, survivor’s benefits and

compensation in the event of injury in the course of duty among many others. In the developed

world, this may include migrant workers as well.

5. Industrial relations. Every entity employing a sizeable number of people is expected to allow

the formation of a trade union, if they meet the minimum standard. Industrial relations aims to

bring about harmonisation and efficient work flow through collective bargaining and negotiation

between management and staff. The Project Manager of a small project may not worry much

about this one but must none the less observe the basic human rights as well as equitably reward

project workers.

6. Employment of women, children and young persons. These are different standards and tackled

separately in the law but are grouped here in the interest of covering as much ground. In the past,

and to some extent today, there is ongoing concern revolving around unfair treatment of these

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vulnerable groups, sometimes denying some of them work when they deserve it or forcing them

to work when they are clearly under age, amounting to abuse.

7. Labour administration: This focuses on the work and how it is administered. Specifically, it

includes labour inspection and statistics which inform and guide effective labour administration.

As has been demonstrated, there is much to be learnt and mastered by the Project Manager

ensuring that they excel and above board in their labour administration. These are ‘must know’

standards and are thus non-negotiable. As later hinted on, staff come to work with a specific aim

and motive each day and must thus be well managed lest they quit and pick up something they

consider more meaningful and rewarding.

Summary and conclusion of unitWe have thus seen the known pioneers of the quality revolution, who for a long time were lone

voices in the wilderness but their work has increasingly come to be appreciated today. Much has

been said about the American quality ‘prophets’ but the last, Ishikawa, is equally to be

numbered among the ‘Might four’. In their own way, each of them contributed hugely to the

quality flash flood we have today though they emphasised different aspects which when

consolidated as well as integrated bring about an unprecedented amount of synergy, far

outweighing their single separate contributions. Collectively, they have left an indelible mark

upon history. Theirs is a blazing trail worth pursuing. Entities are more successful and

competently compete on the global market partly because of the classic timeless all pervasive

higher quality product and service output. But there is still yet much to be learned because many

well meaning and sincerely TQM applying organisations still flounder on the business scene.

Well designed and implemented projects do not reach their goals or transition on time, why?

This and many other questions are yet to be sorted out by future generations, since the

foundation has solidly been laid. At that time, perhaps the picture will tilt from ‘one third TQM

applying entity success rate’ to two thirds and eventually 100 percent, though the latter may not

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easily be achievable because entities will each be consistently improving further, outdoing each

other and thus triumph over their rivals. Perhaps the project management and human resource

success rate will significantly improve though, all things being constant and equal.

Below is a summary of the Quality movement giants and their contributions.

Heizer &

Render

Wikipedia

web site

Name Contribution Year(s) Name Contribution Years(s)

W Edward

Deming

*Formulated 14

points for

management to

accept

responsibility.

*Advocated good

systems

*Emphasised on

written

specifications

1982-

1986

W Edward

Deming

*14 points for

management of

quality

*Wrote influential

book “Out of the

crisis”

*Introduced the

Plan-Do-Check-

Act concept

(PDCA).

1982

Joseph Juran *Taught on

“Quality Trilogy”

*Taught the

Japanese quality

*Insisted that top

management

commits itself to

1951- Joseph Juran *Championed

companywide

quality (CWQ)

*Quality fitness for

use

concept/definition.

*Dubbed the

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quality and own the

goal.

*Advocated for

teams and staff

involvement in

quality matters

(companywide

quality)

*Exhumed and

improved on the

Pareto principle

‘evangelist of the

quality movement’

due to his zeal.

*Wrote “Quality

Control hand

book”

1951

Armand

Feigenbaum

*Wrote influential

book, “Total

Quality Control”

*40 steps to quality

improvement

Quality all

pervasive

*Influenced the

development of

cross functional

team work concept

Kaorou

Ishikawa

*Introduced the

Quality Circles

concept.

*Introduced the

Fish bone or

Ishikawa diagram

for industrial

process analysis (to

determine root

causes).

*Wrote several

books in Japanese

e.g. “QC Circle

Koryo” & “How to

1960

1982

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operate QC Circle

activities”.

* Translated,

expanded &

integrated concepts

of Deming &

Juran.

Phil Crosby *Wrote influential

book “Quality is

free”

*Low quality is

more costly

*Zero defect

“There is

absolutely no

reason for having

errors or defects in

any product or

service” he often

asserted.

1979 Phil Crosby *Introduced the

‘Do It Right the

First Time’ concept

(DIRFT).

* Was prolific

writer and authored

many books

including the book

“Quality is free”

Burnes (Managing Change pp 121) has well researched on the Japanese quality revolution and

names a few critical actors who championed the quality crusade. We have summarised this in the

ensuing table below:

Name Major Contribution Year(s)

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General Douglass MacArthur *Ruled Japan for some time

after the atomic bomb of 1945

in the rebuilding phase. The

General insisted on improved

and improving quality output

in whatever was done and thus

significantly fostered the

quality quest (Allied forces

occupied Japan then).

1946-

EW Deming *Lectures on quality matters,

resulting in the famous 14

quality points for management

to consider. He helped Japan

recover from the atomic bomb

catastrophe by firmly

implanting statistical quality

improving ideas. Deming was

honoured with the highest

quality reward for his

distinguished service to the

Japanese and mankind in

general.

1950-

Joseph Juran *Also did a series of quality

improving lectures but

emphasised that quality had to

permeate everywhere

1951-

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(companywide) to the extent

that quality was embedded

within the system. He was

later honoured with the

highest quality reward in

Japan before returning home

to the USA. Juran died

Recently on February 28,

2008!

Clearly, we can see that the stream is now a wide river which consistently breaks its banks.

Quality is indeed the main and only thing that any entity needs to succeed. Projects, businesses,

schools, churches etc, rise or fall on this quality stone. It is now the cap stones of all success.

As we considered the labour standards, we have no doubt that they are international standards

that have been set which govern the way human resource are managed and harnessed. It was

abundantly clear that none of us can escape or evade their shadow as they are at the very core of

our existence and being. Breach them at your own peril and you shall soon land behind bars or

indeed adversely affect your project implementation. You may not be an expert in listing or

tabulating each of them in order of merit or importance but one thing is sure, you must have an

intelligent appreciation of them as well as apply them well. In fact, rules and laws exist to make

our work better, more efficient and enjoyable. If these regulations are observed and well

administered, we have no fear that the project or program is up to a good start and will definitely

focus on project implementation rather than wasting time needlessly jumping from one court

case to another.

Finally, we trust we have in a sense given a bird’s eye view on the quality landscape. We also

trust that this brief historical treatise has laid a foundation and good back ground upon which we

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build the subsequent superstructure. The ensuing unit will begin to open up ground directly

relating to project management. Having surveyed the short TQM rise and progress, we proceed

to consider quality in its essential nature as well as why it is of essence today and tomorrow, stay

with us!

Case study 1

The Mongu hospitality industry race

It came with a bang on the Mongu business scenario around 2002 quickly supplanting the

already existing established hospitality business houses. At first, everyone considered the Cross

Roads guest house as a mere joke by some dreamer that would soon fizzle out but they were

wrong. Starting out with a small out let at the cross junction as one enters Mongu town, it was

clearly an underdog from the start because the owners were viewed as amateurs with little known

clout and business eye for that line of business. What made it worse for the start up entity was

that it was not very well positioned because of its close proximity to a police compound, a noisy

& crowded bus stop, a community hall, a noisy bar and some crafts men nearby. The place had

very little parking space which effectively would discourage some traveller. Given these and

other disadvantages, it was evident that the Cross Roads was destined to die in a short space of

time, but again, critics were proved wrong for some of these perceived challenges turned out to

be positives rather than negatives.

The entrepreneurs behind this business worked away quietly behind the scenes building their

business, establishing linkages and aggressively marketing the entity in various ways that

included posters, door to door visits, brochures and offering facilities that other established

entities did not have. Most of all, the owners ensured that the lodge rooms and services were of

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world class quality. For instance, the rooms were spacious, airy, well furnished, clean fresh linen,

privacy guaranteed, security, self contained rooms and above all state of the art satellite TV

service in each room that was rare in those early days. Another aspect they invested in that made

them stand out was that of later establishing a powerful conference room which they had lacked

for a while. With those aspects in place, there was no looking back as people begun to trickle in

one after the other with increasing frequency and delight. For another thing, Mr & Mrs.

Kalonge4 were all the time on site and ensured that they treated their customers with utmost

timely courtesy. They also ensured that customers were given a good treat, well served and paid

cash rather than credit. An exceptionally disciplined staff team was engaged who devoted

themselves to the business though the staff turnover was rather high in the early lean years.

By 2005, the Cross Roads boasted of two other lodges that had been built up from scratch with

the same brand name, though now located in superior and Porsche places of Mongu befitting

people’s status. Cross Roads 1 was the start up giving birth to Cross Roads 2 &3 which

eventually gave birth to Cross Road 4, the best of them all, targeted only for the Top brass of

society and Chief Executives. It was the natural choice for the affluent as one needs ready cash in

their pockets to patronize that place. The interesting thing is that whilst other formerly well

established hotels and guest houses were struggling to offer even the basic necessities like

running tap water, warm bathing water or a decent meal, the Cross Roads grew from strength to

strength!

Having established the brand name strongly in Mongu, practically the corner of Zambia, it was

time to expand to the major cities of Zambia. That would be a hard shot and risked serious

failure and waste of resources but the Kalonge’s were determined to make their mark. In 2006,

they ventured into the heart of Lusaka, bought a plot in Olympia/Roma area, built from scratch

and personally supervised the work. Mr. Kalonge, being meticulous and particular about detail

literally camped on site and ensured things were on track while his wife managed their properties

in Mongu. She occasionally visited the project site to check on the progress and quickly headed

4 Not real name. Actual with held for security reasons.

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back. Thus went the progress such that by the end of 2006, the place was basically ready for

official opening to the public. This latter stately Cross Roads structure was even more

sophisticated, beautiful, spacious, high standard and about everything was exotic and imported

from the far flung places of the world. The atmosphere was homely, fresh, calming and very

inviting to any visitor. As is the practice of many organizations, they rushed to try out this new

“joint” by having endless workshops, lodging there as well as hanging out with colleagues. The

Cross Roads is now a house hold name in Lusaka, with its unique, high quality service offerings,

far outstripping the earlier rivals back in Mongu and Livingstone.

One would ask, what has made this once little known Cross Roads brand such a house hold name

in such a short time? A number of reasons can be summoned to attempt to explain this but the

following clearly radiate as one carries out an interview with the proprietor or tracks the business

development.

Firstly, Mr. & Mrs. Kalonge are serious entrepreneurs who know what they want in and out of

life, to make just ‘a bit more’ money! At every turn, they look for opportunities to make an extra

buck.

Secondly, the entrepreneurs are focused and serious with what they do. They are of one mind and

deal in cash only, no credit is allowed and ensure everyone pays up on time. Thus, their cash

flow is sound most of the time.

Thirdly, the Cross Roads are a high quality class chain of guest houses offering nearly everything

a traveller would look for, comfort, World class quality courtesy, space, good speedy service and

security. Others fall far short on that score.

Fourthly, the management are very innovative, reading the times and able to respond to the

times. Bureaucracy is yet to be its lot. Many old incumbents suffer from red tape, bureaucracy or

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rigidity. Other smaller entities suffer from the founders’ syndrome effects and cannot possibly

innovate unless the owner sanctions that move.

Fifthly, the Cross Roads chain has a clear strategy, goal and direction, to be the best of the best!

Others are buried in personal scuffles, in fighting or witch hunting merely reacting to what is

around the environment to the extent that they do not have the muscle to chart the course.

Sixthly, The Cross Roads have a class, standard and high quality services which others do not

have. The Cross Road owners will not settle for mediocre standards or anything less than the

best. Rising from obscurity around 2000, the Cross Roads brand competes favourably with any

international service provider currently in the country. Gone are the days when the best only

belonged to the multinationals!

Lastly, the Cross Roads has been consistent in its development, expansion and evolution. Its

networks are good and has high good will from the banks, customers and others who not only

offer it credit facilities but market it to the rest of the world.

Indeed, you get quality for money at any Cross Roads outlet. Where it goes from here is hard to

tell but one thing is sure, the sky is the limit!

© Billy C Sichone 2008

Case study questions

What has distinguished the Cross Roads chain rest houses from the rest?

What one thing has made the chain a resounding success?

Do you think the Cross Roads strategy is sustainable? Justify your answer.

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Why have other old incumbent business houses failed while the Cross Roads has succeeded?

Is being a novice or one not specialised in a line of business justification enough to stay away

from a competitive business.

What one quality do you admire about the Kalonges and why?

What do you learn from the Cross Roads case?

Suppose the Cross roads empire was making plans to enter the international Market, say

expanding to Namibia or Angola, what would you advise them to focus on in their entry strategy

abroad?

Case study 2

Interview with Mr Dabson Mwendafilumba, MA

This was carried out by Billy Sichone with Mr Dabson Mwendafilumba, CEO of the Hostels Board Zambia, a chain of lodges dotted around Zambia. The objective of the interview was to discover how and why the said lodges were doing well under the Leadership of Mr Mwendafilumba, given a very dark background when the lodges once were not as good as they have suddenly become in recent years. Thus, this interview centres on strategic thinking, management, planning as well as quality issues. Interview date: October 2001 & July 2004

Venue: Mongu Lodge & Nyati Close, Rhodes Park, Lusaka

1. What, in your own word, is management?

Ans: In my own words, I would define Management as the process of managing resources ensuring that there is no management crisis. In other words, I could say ensuring that all resources under your case are properly harnessed and used to their intended end. 2. What various styles of management do you know?

Ans: I know several but I will give some that immediately come to mind. I must state first of all that management styles depending on the context as well as the team/hierarchical structure is framed. Now as for the styles, I know the following:

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a) Coaching managementb) Autocratic managementc) Laissez faire and lastlyd) Team building management.

I must also state that in Africa, management is quite different from that which you find elsewhere. It is a power distant type of management so that there is fear instilled instead of friendship in relations between supervisors and subordinates. As I have mentioned, this differs from the Western world where people are addressed by their first names, showing that they are colleagues and comrades.

3. Which one do you espouse or prefer?

Ans: Management is based on team building these days and to succeed, we need to depend on each other. Therefore, I prefer and practice this type of management. 4. Does team work or spirit exist or work in Zambia?

Ans: It has worked in the lodges that I am Director of. All our managers meet quarterly to discuss and create friendship by working together. When we meet, we have fun together and ensure we create a conducive environment where we are all at liberty. Every meeting, we begin in prayer which has helped unite us. In order to spice or enrich our meetings, we visit tourist attractions, engage in recreational team building activities like swimming which in effect create dependability on one another. After refreshing, we meet once again to brain storm and focus on one thing, ensuring there is a shared vision in common as well as buy in. As the leader, I ensure they all see the ‘Star of Bethlehem’ akin to what the Magi of old did.

5. How is the management today different from that of long ago? (What are the trends in management circles you have observed?)

Ans: Traditional Management wasted time on fighting each other and standards as such would start to decline. This cannot be tolerated now due to increase in marketing and competition. Furthermore, in a traditional management setting, new ideas are not encouraged or let to blossom but in the current context, you must continuously be coming up with new ideas which will be generated by different people contributing from within the team.As for the trends, Management in Zambia is changing at a slow pace as top management still tend to hide information from subordinates that would enlighten and build them up. Information is still the private preserve of the few thus curtailing anyone one from effectively contributing. Furthermore, in Zambia, the power distance between supervisor and supervised is still large although some modifications exist in pockets here and there but by and large, things are still pretty much the same. In addition, management does not come with one mind but different individuals are busy pursuing their own things at the expense of organizational development

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indicating very little buy in and no shared vision. That’s the picture in Zambia as I see it. But the good news is that we are changing the picture in the Lodges and I am sure we are far ahead of the others although admittedly we have our own challenges along the way.

6. How has been the transition from Traditional to modern management?

Ans: It hasn’t been easy admittedly but there have been pockets of resistance here and there as people dread to leave the comfort zone. If we are to be successful, there must be willingness to change, though change is not an easy undertaking.

7. How long have you been in management?

Ans: Well! I have been around quite a bit!Specifically, I have been in management circles since 1989. I have risen through the ranks and was executive officer but I am now the Executive Secretary or Chief Executive Officer (CEO) of the Hostels Board in Zambia.

8. What about in the Hotel industry how long have you worked there?

Ans: Like I mentioned, I have been in the hotel industry as far back as 1989 where I have most of my professional life.

9. How do you manage as a professional running a Government owned (Quasi - Government) business? I am sure there is a lot of political interference. I would be interested to know how you play the balancing act.

Ans: It is a very delicate exercise I must admit because every move, decision or act that you do is meticulously watched but I am pleased to let you know that we do not run like bureaucratic Government. In as much as we have some bureaucracy but Government has graciously allowed the Lodges to somewhat operate independently by and large. This has enabled the lodges to make significant headway because this is viewed as a strategic institution to the Government as well. A balance must be struck in relying on the Government and at the same time implementing modern management principles.

As for the balancing act that you mention, so far we have no problem emanating from political interference, in fact, the Government has been very supportive, desiring that the lodges improve and become self sustaining.

We have challenges in running the lodges one of them being the delayed payments which makes it difficult for us to raise the lodge standards where they can effectively compete with others in the same industry. However we have put some strategies in place to ensure we get where we want to go.

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10. How much interference from Government is there and how do you handle it?

Ans: An amount of interference is there but not so much and can be handled with some tact and wisdom by all of us. It is all about knowing who is who and what is at stake as well as how to respond. Strategic thinking is key.

11. Talking about survival of Hotel industry, just how do you survive, being a parastatal?

Ans: We have taken a number of steps to ensure we remain competitive. Here are some of them.The first is that we have embarked on rehabilitating all our lodges around the country, I am sure you have seen the Belvedere and Long acres lodges, these are master pieces. For lack of resources, we are doing this piecemeal and in stages as we generate resources as well as funding from Government. Since we are 100% Government owned, originally all the money generated used to go into Government Treasury. This brought its own dimensions and challenges. However, now the lodges have their own account which they use for operations and reinvestment. This is a very positive step in the right direction.

The second is to plan at National level but ‘Think local’. We take all the variables into consideration such as place, target market and so on then set our pricing.Our aim is to improve our service quality to world standards, if possible.

Therefore, in response to the survive question in the hotel industry, we must note that few lodges in our chain actually make losses at the moment (2004).In the event of a loss, other profit making entities offset that loss. Further, because of the Team work culture we have cultivated, it is paying dividends for us. In fact, we are actually making profits. 12. Hmmmm… this sounds good I am tempted to ask what place marketing takes in your

organization since it is quasi Government.

Ans: Marketing is important in this economic set up we find ourselves in. We have been aggressive and use personalized marketing to satisfy our customers. For instance, we know our clients’ birthdays, send cards when it comes around periodically call them and keep the lines “warm”. In addition, our staff ensure they master people’s names that have lodged with us before and that has a bonding effect and fosters loyalty.

13. How much of the market have you captured?

Ans: We can safely say that many people prefer lodges to hotels because they are far more ‘homely’ and for the moment, the lodges in Zambia collectively place it at about 65-70% of the lodge market while others hold the rest. We are correctly positioned for the moment and one hopes we can improve on that record. To capture market, many use different strategies

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but we focus more on quality because it is the best competitive weapon rather than price. Treat customers well, provide for them and I am sure they will come round again!

14. I note you use the word “Strategy” quite often, what is strategy to you and what does it mean? Ans: Strategy is the means of achieving your goals and objectives.

15. How do you apply it in your management skills?

Ans: Strategy cannot be applied once and then you forget about it. You must keep in mind what the competitor’s strategy is. Know how and when they are to apply their strategy and ensure you craft a better strategy that will outwit them. In other words, strategy should be kept fresh and organic so that it can remain relevant and effective as we know that competition is constantly rising. One such strategy that we have utilised in quality ensuring that everything that we do is as perfect as possible to more than please the customer.

16. Before I ask about TQM let me ask how your organization has used this weapon to survive the tough economic times in competition to other new industry entrants and other industry incumbents.

Ans: We have used it very effectively especially that we are a government entity. Our strategy is that they give a lifespan of assets by having a plan as well as lobbying for items we require in advance. In that way, we have beaten the bureaucracy and emerged victors in a ferociously competitive industry.

TQM! That concept entails having high quality throughout the organisation and tends to have a lot of advantages for the organisation that practices that. In the hospitality industry, one cannot evade quality because we just have to be the best at all times. At our lodges, we emphasize that every employee must put quality first in whatever they do because if we serve our customers well, then our business improves too. They will go out there and tell many others to come and lodge with us. We may not be TQM certified but we strive to be the best of the best among the lodges.

17. What is your strategy for survival?

Ans: Our survival plan is to always read the times and proactively respond before others do.

18. How do you motivate your staff?

Ans: It has not been easy at the lodges because the personal incomes are low but then, monitory

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gain is not the only motivator. To beat this, we make sure we recognise staff that are outstanding in their work as well as ensure that all members feel part and parcel of the organisational success.

19. I note you read a lot and have a lot of management concepts up your sleeve, can you recommend just one book for one to read so that they become as astute as you are?

Ans: I would definitely give you many titles but I highly recommend one...have you heard of or read a book called “The Seven Habits of Highly effective people” by Stephen Covey? Oh it is a marvellous book and deals with about everything any manager would like to know. It has impacted and changed my life a lot.

20. Does that explain the secret of your success.....?

Ans: It certainly has contributed! Covey brings out very important concepts such as having the end in mind as well as being proactive which concepts I have sought to integrate in my management. Every day before I start work, I sit still in my office chair and just relax while I think through issues. When I arise, I will have sorted out a lot of things. So, for sure, Covey has been a mentor and coach to me. 21. Finally, what have you studied and where? And what is the way forward for the

lodges?

Ans: I have studied some hotel management at NIPA as well as other studies in house. Lord willing, I hope to pursue further studies in future in the same discipline. As for the way forward, we would like to be the best, far mush better than we were yesterday. People always want to see innovators and as such, innovation is very vital for success. Secondly, we want to embrace change and be never content for the dynamic times in which live will not permit us to sit still. We must constantly be improving. This is the silver bullet to success. Thirdly, we want to embrace technology as fighting competitors is more than just having cash but mental. We need to be thinking all the time as we exploit cutting edge technology in the industry. Lastly, we want our customers to be able to book without being physically present. In other words, technology will help us as we install online book services. In that way, we shall get ahead of the pack and be a resounding success.

Thank you so much Mr Mwendafilumba for according me this special interview realising that you are a very busy executive.

You are very welcome and I wish you well! Watch us in the press as we make inroads!!!

Case study questions

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What do you think about the Hostels Board strategy?

Comment on Mr Dabson Mwendafilumba’s leadership and business acumen.

“A strategy is organic and not static” Discuss.

What one trait distinguishes the lodge chain across the country?

Do you think top management attitude towards impacts on quality effectiveness?

If Mr Mwendafilumba left the lodges, would they continue to succeed and improve? Give

reasons for your answer referring to the case study.

Revision exercise

Give a brief history of TQM and its early pioneers.

Why is it called the “Quality revolution”?

List the “big four” quality forerunners and what contribution they added to quality discourses.

Write brief notes about each of them as well as their significant contribution.

Why is‘Quality’ often referred to as the “silver bullet” in business circles?

What are ISO standards and why are they significant?

Comment on ISO 9000 & 14000. What do they focus on and how do they impact on project

management?

Explain how the use of standards has helped you in improving quality at your organisation.

List at least two organisations in your country that use ISO standards (or are certified) and which

standard(s) they use.

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Visit this site: http://www.miliken.com and state what awards this corporation has won and why.

Undertake an interview at one of the quality practicing institutions in your locality or country.

What is PRINCE2 and what is its significance to project management? Is it relevant to your

country? Give reasons for your answer.

Find the latest winning case on the Malcom Baldridge National quality award site

(http://www.quality.nist.gov) and draft a short report. Explain what made them/it stand out.

BibliographyBamberger Michael & Valadez Joseph, Monitoring and evaluating social programs in developing

countries: A hand books for policymakers, managers, and researchers, World Bank Institute

1994

Banking World Magazine, December 1989 issue

Boydell H. T, The identification of training needs, British Association for Commercial and

Industrial education, 1971

Burnes Bernard, Managing Change, FT Prentice Hall, 4th edition, 2004

Buttrick Robert, The interactive Project Work out, 2nd edition, Pearson education, 2000

Certo C Samuel & Peter J Paul, The Strategic Management Process, Auste Press/IRWIN, 1995

Henderson Gordon, “Quality is Key”, Banking World, December 1992 issue pp 26

http://.www.asq.org

http://www.corporate.titzcarlton.com/en/about/goldstandards.htm

http://www.prince2.com

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http://www.quality.nist.gov

http://www.spoce.com

http://wwwisixsigma.com

Husband J I, Labour administration, International Labour Office, 1980

ILO, Collective Bargaining, International Labour Office, 1960

ILO, Grievance Arbitration, International Labour Office, 1977

ILO, International Labour standards, IL Office 1978

Kakabadse Andrew & Analoui Farhad, Corporate Sabotage, Jaico Publishing House, 2004

Maylor Harvey, Project Management, 3rd edition, Pearson Education, 2003

Oakland John S, Total Quality Management, 3rd edition, London: England

Patton Quinn Michael, Qualitative Research & Evaluation methods, 3rd edition, Sage

publications, 2002

Peters J Thomas & Waterman H Robert Jr, In Search of Excellence, Warner books, 1984

Schroeder G Roger, Operations Management: Contemporary concepts and cases, 4th edition,

2008

Stevenson J William, Production/Operations Management, IRWIN, 5th edition, 1996

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Unit 3

Aim

The aim of this Unit is to enlighten the student on the nature and importance of quality in general

with a particular bias towards project management.

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The unit also aims at stirring the student to embed quality in all their business processes

throughout life.

Objectives

By the end of this module, the student should:

a. Define Total Quality Management (TQM)

b. Explain why quality is important for success

c. How quality can help in effective & efficient project management.

d. Explain why quality is cheaper though perceived expensive.

Quality, its essential nature and necessity

The world has witnessed an unprecedented improvement in quality output in the past many

decades. At one time, what mattered was mass production, assuming the customer would like

and purchase the product at whatever price it was pegged at but with the advent of the market

economy, capitalism and international business, leading to globalisation, the ball game has

radically changed with the customer emerging as the determinant of what sells and to some

extent what is produced. Today’s customer demands high quality and value for their money or

else they boycott the goods. Similarly, those that would sponsor a project or some particular

undertaking make much of what and how their money is being spent. They are meticulous and

will not fund a coin unless they are certain that they will get what they desire. Similarly, in large

production corporations, much attention is given to what is churned out because they are aware

of the dire consequences of producing the correct or saleable product. Share holders and others

key stake holders will not countenance a perceived needless waste of their resources which

ultimately impacts on their dividends and income. Given the above scenario as well as the

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importance of this concept, it is only fair and wise to consider it in detail so that we define

matters as well as be on the same page.

Quality, what it isIn almost every Operations Management book on the shelf today, one scarcely can escape

stumbling across the acronym “TQM”. The obvious focus is on the middle letter “Q” for quality

because it is perceived as the long sought after panacea for corporate and project success. It is

heralded as the silver bullet to success by many entities for several decades now. But what

exactly is TQM? For now, we do focus on the “Q” which, in our view is the defining element in

our study. What then is quality?

Simply defined, quality has to do with standards of doing something or functional effectiveness

of a product (i.e. in relation to product conformance & performance; Conformance +

Performance = Quality). This quality could be measurable or not but is a bench mark against

which all other products or services in that range will have to be weighed or measured against. In

other words, quality is the intrinsic worth of something that has been produced in tangible or

intangible form. For instance, when a guest arrives at the hotel, within a few seconds of touching

the reception, s/he must instantly be courteously attended to by someone at the counter and

within three minutes, the customer should know whether they book in and be on the way to their

room or heading to another hotel if bed space is not available. That three minute “Machine

cycle,” to use computer language, or lead time is what an ideal hotel should adhere to or scale if

they are to be considered high quality, assuming that is the set standard. Thus, to reach that

efficient level, the hotel must heavily invest in repeatedly training staff to achieve the desired

goal. Once well treated, the customer will tell a thousand others who will probably flock to the

said hotel. Quality has a rippling effect leading to exponential stupendous growth of some

entities while others sink and fizzle out of the industrial competition. Similarly, in project and

human resource management, how and when a project is executed speaks volumes to key

stakeholders especially the sponsors. Since a project has a definite life span and targets set from

the outset, the people monitoring will be giving ticks whenever something is achieved within the

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agreed time frame and a crucifix whenever the correct thing is done at the wrong time or not

done at all. All these small, small things matter and speak of the quality of implementers a

project has. Depending on the donor, the project may or may not be cancelled if certain

conditions are not adhered to. If worsening bureaucracy and red tape grips an organisation, then

expect the high achieving professionals to book the first flight out to the competitor company.

Internal customers (employees) also have aspirations, goals and desires which need to be

fulfilled and if that seems a far-fetched dream in their present positioning, they will either look

for a better paying job elsewhere or manoeuvre their way to another post within the organisation

thus positioning themselves to achieve their goals. If the latter proposition is not attainable, then

they leave, resign or start their own firm where they become their own boss.

Thus we have seen that whereas in the past, quality talk was nearly unheard of or treated as a “by

the way”, the world today has changed. Everyone is demanding quality and value for their

money consistent with the benefits they will derive from the product or service. As globalisation

continuously takes its toll on the world with cultures, tastes and perceptions clashing on the

international scene, there is need to produce high quality goods that will satisfy almost anyone on

this terrestrial ball. Gone are the days when what was deemed “good enough” for Zambia was

automatically perceived good for everyone. Times and tastes have changed, thanks to the all

pervasive and forceful electronic media that is fast helping to bring about a homogeneity of taste

and perceptions. What is viewed acceptable for a Muslim today is most like going to be for the

Hindu or Christian, but not necessarily in the past perhaps. This is largely because of the

relentless work of the marketer who works on peoples’ perceptions, attitudes, views and desires

as more information about the salient features of products are made known to all. They literary

bombard the mind. For instance, if someone bought a black and white TV today, their neighbour

would be surprised because there is something better, the colour TV! In fact, today, people have

moved on to the type and size of screen you have because colour is now basic! A plasma screen

is the talk of the times now and tomorrow, it will be something else. Thus, if a person purchases

a genuine Phillips TV set, their basic assumption is that it is of high quality with practically no

defect lest they send it back on warranty! Before we proceed to consider some TQM definitions

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in the next section, we quote some worthy authorities that have endeavoured to define quality

without making any comments:

“The ability of a product or service to meet customer needs” Render Barry & Heizer Jay,

Principles of Operations Management, pp 194

“Quality is meeting the customer requirements, and this is not restricted to functional

characteristics of the product or service. Reliability is the ability of the product or service to

continue to meet the customers’ requirements over time” Oakland & Porter, Cases in TQM, pp ix

“The totality of features and characteristics of a product or service that bears on its ability to

satisfy stated or implied needs” American Society for Quality www.asq.org

“Quality has dimensions of the facilitating good, tangible (explicit) service, and psychological

(implicit) service” Schroeder R, Operations Management, PP 150

“Meeting or exceeding customer requirements now and in future” Schroeder R, Operations

management, PP 147

From the above quoted definitions, it is very clear that there is hardly one concise definition.

However, certain parameters are common such as customer satisfaction, functional use and

reliability. We can thus coin a simple quality definition derived from the definitions above as

follows: “Quality is the sum total of all desirable traits in a given product or service fit for use,

and according to customer taste as well as desires” (Billy Sichone, 2009).

For purposes of this discussion, we focus on TQM which we now turn to define.

Some TQM definitionsQuality, yea, Total Quality Management (TQM) is a rather difficult concept to define in capsule

form. It is easier to observe and describe the effects rather than explain it in words. None the

less, it is essential to define as closely as possible what we are dealing with or are up against.

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Many have endeavoured to define TQM but we break it down into its constituent elements

before we construct one comprehensive definition.

The three elements are:

a. Total: this refers to the quality being all pervasive, covering the entire entity, throughout

the system processes. It is total in the sense that no part of the entity is left unaffected or

touched by quality.

b. Quality: These are standards set to which all products and services must adhere. Quality

connotes fitness for use and customer satisfaction or efficient functioning according to

agreed design and specification. Anything less than those bench marks is considered

below standard and therefore discarded. Thus, it means that these are minimum standards

which winning organisations must scale to reach higher heights and be differentiated

from the rest. Three traits are considered to constitute quality namely, conformance,

performance and satisfaction to customers.

c. Management: This has an allusion to the aspects bordering on harnessing resources to

reach their intended end. In this context, we are talking about managing this all pervasive

quality in such a way that the entity maximises on reaping the best results. The

management may include setting standards, indicators, benchmarks and parameters that

will indicate whether the project is on course or not, as the case may be.

From the forgoing, we note that quality must be managed and be all pervasive in the institutional

processes if any tangible dividends are going to be reaped. In other words, we can define TQM

as “that holistic and all pervasive high standard output of any process that ensures that the best

results are achieved in the most cost effective and efficient manner at the right time.”(Billy

Sichone 2009). We can further add that TQM is an ongoing and improving process not an end in

itself. It is a means to an end not an end in itself. The moment TQM becomes an end in itself,

that moment the quality standards plummet because innovation dies as well as slothfulness

creeps in. It is on going in the sense that quality is defined by customers whose tastes mutate

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over time and hence the need to change with the times. William Stevenson has defined it as “A

Philosophy that involves everyone in an organisation in the quest for quality, with customer

satisfaction as the driving force”5. This definition brings about the company wide aspect to

quality as driven by customer needs. Others, Oakland & Porter has defined it as being

“concerned very much with moving the focus of control from outside individuals to that

everyone is accountable for their own performance”6. Kotler & Keller have defined TQM as “an

organisation wide approach to continuously improving the quality of all the organisation’s

processes, products and services”7. Still another has simply defined it as “Total dedication to the

customer”8.

But then, we have to consider another definition given by the Wikipedia website which states the

following: “TQM is a business management strategy aimed at embedding awareness of quality in

all organisational processes. TQM has been widely used in manufacturing, education, call

centres, government, and service industries, as well as NASA space and science programs”

Perhaps the last and probably most comprehensive definition comes from the International

Organisation for Standardization (ISO) # 8402:1994. It is quoted at length below:

“TQM is a management approach for an organisation, centred on quality, based on the

participation of all its members and aiming at long-term success through customer satisfaction,

and benefits to all members of the organisation and to society.”

Clearly from the definition above, many of facets have been touched upon or implied that are

quality related. In the quest to establish and maintain uniformity, the ISO drew up this near

universal definition from which all other definitions are derived. Let us observe a few points

from the definition above:

5 Stevenson J William, Production/Operations Management, IRWIN, 1996 pp1016 Porter L & Oakland J, Cases in TQM, PPx7 Kotler and Keller, marketing Management, Pearson, 2009 pp 7908 Certo & Peter, The Strategic Management Process, 3rd edition pp 197

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Firstly, TQM is a management approach or way of doing something towards an intended end. It

is not a passing fad, craze or rootless wild theory but a pragmatic and workable path towards a

desired haven. In other words, it is a deliberately chosen way of doing something.

Secondly, this approach is centred around quality. Said differently, the centre pivot of this

management approach is quality which is all pervasive in the entire process or entity.

Thirdly, this approach is participative, all inclusive and consultative ensuring that the best

practices are identified, tested and adopted to get to the next level. In other words, no individual

has the monopoly of knowledge, truth or best practice but various people pool their ideas and

collectively settle on the best practice which they all wholeheartedly embrace and run with the

ball. This builds continuity and owning of the process. Top management should show

commitment and run with the ball, thus generating enthusiasm and interest in the organisation.

Fourthly, TQM is not a “quick fix” solution but a process aiming at the long term good of the

entity. As the processes are vigorously and rightly pursued and applied, the system is refined

ending up in the unique best practices which in themselves enhance and foster competitiveness

and high quality output. The moment an entity relies on a static TQM program, that day they

book a place in the corporate bone yard. In a ferociously competitive and mutating world,

dynamism and an organic strategy is of essence. TQM is a process rather than an event and must

be treated as such if to succeed. Always remember that TQM is a management strategy and thus

an approach towards an end.

Fifthly, the approach is somewhat a silver bullet to success provided the customer wants and

tastes are at the centre of all that is done. Thus, it is critical not only to treat the customer with

due care and attention but to ensure that they are in the driving seat, defining and determining

what should be done, when and where. Even in project management for instance, the major

customer is the sponsor or donor that would like to see qualitative results consistent with what

they envisaged from the start. TQM ensures that the customer is repeatedly and consistently

satisfied so that they develop product loyalty as well as woe many other would be clients and

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customers. The mass production “one size fits all” era in a sense misled the world for a season

because it was based on the premise that the customer would want to buy what the manufacturer

produced in bulk regardless of the quality or price but today, we know better, the customer has

power and is steering the ship to where they want. Any entity ignores the customer at their own

peril. In a bid to involve the customer, companies and projects are integrating partners,

stakeholders and customers themselves right from the conception and design stages to the final

product. In this way, only what the customer dictates is produced and thus saving millions of

valuable dollars producing a non saleable product.

Sixth and last component builds on the fifth in that having satisfied one customer, a myriad

others are which ultimately satisfies the society and community at large. Thus, a good TQM

program will ensure that all stakeholder concerns, fears, desires and wants are more than

adequately addressed and met. In the case of an intended project, the target community is walked

through the intentions from the scratch so that they not only buy into but identify their needs and

wants which they want addressed by the project. The easier option for the sponsors is to observe

a need from their desk and quickly mobilise resources, do a fantastic intervention (sometimes

minus an Environmental Impact Assessment- EIA) and have a white elephant after the project

phases out. Then the puzzle takes its rounds through the corridors of power who eventually

blame the community of being backward, laissez faire, indifferent, unappreciative or careless

when the problem was actually during the start up phases when the actual and real partners

(community) were left out and thus became spectators to the very end. This explains why

vandalism easily creeps in and preventive maintenance is a night mare in such communities. But

where all partners and stakeholders are appraised before, during and after the project, with their

full participation, they will most likely own and run with the ball long after the project phase out,

thus guaranteeing project sustainability even after close out. The reason is because in the latter

case, everyone felt the project was of benefit to them.

Having brought all those points defining TQM, we now attempt constructing a definition and

could be something like this: “TQM is the sum total of all organisation wide integrated

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approaches towards ensuring that quality is embedded in all the systems, hierarchies and

functionaries in the institution thereby ensuring that the best output is achieved.”

Thus, we have briefly dissected the ISO definition which is relevant to all aspects of the post

modern world. Since we engage in different projects from time to time, this definition ought to

be a good guide to setting our goals and standards for world class results.

Bases on which quality definitions rest

Quality, as we have noted has various definitions and leanings depending on who is defining it or

what they are looking at. Generally, quality definitions are based on three areas namely:

User based

Manufacturing based and,

Product based

Thus, if the user or customer is defining quality, they will emphasise some aspects such as

satisfaction while the manufacturer will concentrate on specification, fitness of use and

conformance. The Product based quality definer will look at attributes such as design, usefulness

and functionality of the product. Each of these have their own valid definition and thus, when

defining quality, it is critical to bear those facts in mind, bearing our target group in focus as we

develop, produce and market the product.

Quality, its necessity & benefitsThe question that begs answering at this stage is why the fuss about TQM, I mean, why bother

about this quality craze? The answers to this question are soon found for they are all littered

every where for all to see and recognise. For the purposes of our structured study, we collate all

these disjoint elements together in point form so that we consolidate our dossier. Without doubt,

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TQM is here to stay and in a sense unavoidable for the simple reason that we live in an ever

improving world which makes much about product standard quality. Some countries that were

once notorious for mediocre quality products have drastically changed and are now fostering the

quality crusade. Even China, with its varied quality goods in the same range is fast making

adjustments towards eliminating the poor quality strata products upholding only the top class.

This is positive for good business image and goodwill. Others however, are resolute to stick to

the same old, tried and tested obsolete standards and ancient paths that will not take anyone

anywhere, anymore!

That said, it is critical to state that quality being relatively perceived is a dynamic concept that

needs constant incubating and refining. The idea “microwave” concept is good because the ideas

can easily be defrosted and altered to suit the times, being malleable in nature. In response to the

million dollar question as to whether quality is necessary, we give an affirmative and resounding

YES! Quality is definitely of essence because of the reasons we advance below:

a. Fine results: If the project has been struggling to achieve high class results in the past and

an appropriate quality system is integrated into the current processes, it soon begins to

deliver the required results. Over time, the entity’s image improves thus attracting more

donors, sponsors or would be partners. One project the writer worked on struggled to get

certain processes right and was almost giving up when a particular staff joined the team

armed with a different but more effective approach. The new technique was tried with

phenomenal success. In another case, the project was having serious funding hiccups but

once the system was improved and competent staff hired, the scenario changed

completely in record time. Quality did the trick.

b. Timely results: Have you ever seen a project or any entity for that matter that repeatedly

succeeds from strength to strength and height to height? Have you wondered why some

individuals seem to fly in their own orbit and complete assignments in record time while

others lamentably fail? The answer probably lies in proper quality systems adopted. Such

individuals and systems ensure something is done correctly the first time while

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continuously improving on the existing systems. This author has worked in both timely

delivering as well as malfunctioning teams. The difference between these two is the

quality of the systems in place. While in the one, the product churned out is near perfect

as it goes to the world, in the other, repeat jobs are the order of the day.

c. Repeatedly satisfying customers & stakeholders: One secret that any entity has to

embrace and adopt is to keep customers happy and satisfied all the time. If for some

reason, they are displeased or feel neglected, they react in various ways. One of the many

ways is to simply withdraw and “invest” elsewhere hoping to get a better return for their

money. High quality systems ensure that stakeholder needs are noted and prioritised so

that they in turn not only repeatedly offer more support but successfully market the entity

to the outside world.

d. Marketing and lobbying tool: For a long time, the marketing function has not been

appreciated but as the world increasingly globalises, there is a near universal realisation

that marketing plays a critical role in building business, yea, multiplying effect on the

organisation. One of the hallmarks of marketing is superior quality to would be customers

which quality is defined by the person desiring it. They demand value for money. Thus, if

the entity places a high premium on quality, the expected output will most likely be good

& pleasing to the customer. Once repeatedly satisfied with the product or service, they

voluntarily tell ten others who eventually subscribe. If the opposite is true, then expect a

back lash. One of the best marketing tools to exploit today is consistent high quality

coupled by fitness of use. This eventually cuts down on the overheads as quality creates

demand for a long time to come.

e. In keeping with the globalising world trends. As earlier intimated, the global trends are

consistently and rapidly mutating implying that if an entity is to remain buoyant, let alone

be noticed, there is need to rapidly “pull up the socks” to the extent of outdoing rivals.

For instance, donor funding is no longer as obvious as it once was, it has to be “fought

for”! In other words, it is highly competitive and only the best bidder will win the tender

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or impress a would-be donor. It is no longer good enough to have an elaborate structure

or good internal control system, there is need to demonstrate that your products or

services are superior to other competitors, and this is only possible with the right quality

systems in place. Once again we assert, ignore quality at your own peril.

f. Fosters product differentiation and niche etching: Product differentiation has to do with

fashioning your product, although similar to others competing brands, different in little,

little things and features. A Niche on the other hand is a special curved out position that

distinguishes your product from the rest, making it practically inimitable. In project

management, branding is important as well to distinguish the project from the rest. In

other words, the project administered by your company must have a unique tag upon

them so that any would be sponsor immediately gets interested. Quality is once again the

key in the quest to achieve this goal.

g. Gives value for money: Quality is what makes people pay a premium for what they

perceive a good product or service. They will never pay an extra Ngwee for anything they

consider mediocre or below the expected standard. But if the quality is consistently good

and pleasing equal to the price paid, expect them to go a mile further because they are

receiving what they perceive as something worth their money, even if it is slightly more

expensive than ordinary. In project execution and management as well, if they are

impressed or believe in the processes and outcomes, their will stake their monies towards

that cause. Quality is that key ingredient that turns the wheels towards satisfaction land.

h. Eliminates defects: Good quality systems embedded throughout the organisation rather

than individual star performance is what ultimately counts, as advocated by Deming,

Juran and others. Phil Crosby especially championed the elimination of defects from the

systems so that only the best and desirable products come out at the end of the production

chain. He taught and advocated that it was better to be proactive rather than reactive to

products churned out. We can apply this same principle to other areas of management in

general for products or services. Half the time however, many non TQM compliant

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systems and projects do not take this seriously and would rather work on a return job.

This is common place in many public projects in Zambia such as road

rehabilitations/construction, structure renovations, borehole drilling among many. In the

long run, these repeat jobs are terribly costly and have a telling effect on the country or

project efficiency. If a zero defect policy and system was adopted and actualised from the

start, there would be marked progress and improvement in the country. Once again, a

high quality culture and practice does the trick.

i. Enables continuous improvement through lean and agile systems: To achieve maximum

efficiency and effectiveness, entities have to repeatedly re-engineer themselves. This

process may include many things such as structure reorganisation, job evaluation,

downsizing among many. These changes are constant in the face of an ever and rapidly

mutating global context. To remain relevant and above board, quality has to constantly be

enhanced. The bar must get higher each succeeding year as it were. The quest for higher

quality entails constant and consistent re-auditing how the system can be made better so

that the project becomes, agile, fluid, responsive, lean and relevant to the time. If a higher

quality culture is lacking, then expect contentment and mediocre standards to set in.

j. Cuts costs: A cursory view of the initial high expenditure when the quality systems are

introduced may seem astronomical and warrantless tempting the critical decision makers

to either ‘hijack’ or waylay the process. In other instances, as Brown and others have

demonstrated, simply pay lip service because the quality process is not priority as it is

perceived needlessly too expensive. Still in other cases, there is outright opposition to this

system as the pay back, akin to the Marketing function, is not immediately tangibly

visible. But the truth of the matter, as Juran and others have demonstrated, is that cheap it

is expensive in the long run while initially expensive qualitative initiatives are cheaper as

well as profitable in the long whole. The rationale is simply that the dividends drawn

from the high quality output are greater than from cheaper but lower quality initiatives.

Further, the initial cost once apportioned/spread over the entire project life turns out

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cheaper because there will be no or fewer return jobs, good will heightened and more job

contracts easily won.

k. Fosters efficiency/effectiveness: If the processes are right and good systems are securely

in place, then, expect good products churned out at the right time thus enhancing

efficiency as well as effectiveness. A faulty system makes the entity to repeatedly redo

the same thing when it would have progressed to do other equally important activities and

thus covered more ground. In projects where splendid and world class results have been

recorded, chances are that quality is an integral part of the operations and everything is in

sync for superior quality results. For instance, at NASA where several projects run

concurrently, chances are that they have the best quality systems in place, the best teams

as well as continuous Just in Time (JIT) systems exploited. That is why the safety record

and efficiency are some of the highest in the world, although other competitors are

currently emerging. Be that as it may, the people at the NASA projects work tirelessly

like beavers to beat their dead lines, despite the hurdles and challenges they meet along

the way. Similarly, we can safely assert that embedded quality systems and procedures

contribute significantly if taken with the right view, approach and support.

l. Corporate growth, market expansion and advancement: An organisation that means

business will do any and everything to ensure it gets ahead of the pack. In a similar sense,

a project desiring a contract renewal, extension or further funding will ensure its

deliverables are produced on time and of the highest standards. In that way, customers,

donors as well as other interested parties will not only vouch for them but eagerly support

them. As a consequence, there is marked improvement, fewer cash flow hiccups, more

development pace and well as heightened good will and loyalty. These positive traits give

birth to other benefits in due course.

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Implications and importance of qualityWe briefly list some perceived implications of quality generally because the previous section

has in a sense dealt with and explained some aspects of the implications:

Company reputation improved and exalted.

Product reliability as well as minimises liability.

Global implications (such as International profitability & Competitiveness)

Cost cutting and efficiency

Product loyalty fostered

Now that we have defined quality as relates to TQM, it is high time we transitioned to the

next unit where we delve into project and program management. Adjust your gears as we

move to higher ground!

Case study 1

BP Zambia, 1999

INTERVIEW WITH MR. PETER NJOBVU OF BP ZAMBIA ON

TQM AND PEOPLE MANAGEMENT

29.01.99, NDOLA.

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Introduction

An interview was carried out with Mr Peter Njobvu of BP Zambia on the 29.01.99 with a view

to find out the Total Quality Management (TQM) & People Management practices at BP and to

what extent TQM has permeated through the entire BP network. At the interview time, Mr

Njobvu held both the Association of Certified Chartered Accountants (ACCA) & the Chartered

Institute of Management Accountants (CIMA) qualifications and was the senior Depot Manager

in the northern part of Zambia. He has since relocated to Cape Town, South Africa to take up a

more senior and challenging job. By that token, he travels extensively in the BP network. During

his student days he was several times elected the best overall student world over and at one time

was the best Management Accountant in BP in the Southern Hemisphere. Peter is indeed an

international quality leader.

QUESTIONS

B. What, in your own words, is Management in general.

P. From the textbook? Management is basically about coordinating, controlling and directing

resources to a predetermined goal. So, it is the Marshalling of these resources towards a specific

goal put down in the budget. Apart from Marshalling, there is a lot more and more emphasis on

people management in these days.

B. What are the current management trends today?

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P. In the US, where individual performance is valued, there is a shift to try and unlock the

potential in the individual. The belief is that if you take care of an individual, then you will have

taken care of the results. This will mean that the care is both at work and beyond, ensuring that

the home conditions are made as comfortable as possible so that the worker does not spend time

thinking of how to survive but rather concentrates on one thing. This trend is coming in Zambia

though at a slow pace. In BP, we realize this and are at the forefront implementing modern

management practices that will motivate and unleash the hidden potential within a person. This

can be done in various ways such as rewarding, complementing or continuous training of staff so

that they can meet the challenges that lie in the way. As such, this builds capacity and greatly

motivates people so that they do their best.

B. Why the emphasis on people management?

P. Like I said, people are viewed as the most important asset of any organization and if they are

satisfied, they will improve in their output. This means taking care of both their welfare and

environment in which they operate. People say that these days, the buzzword is 'Team Work',

and this has been a buzzword for sometime now in the management circles and for a good

reason. They are saying that the original hierarchical structure is in efficient and must be broken

down to give way to a learning approach.

B. Do you think that Team Work is the best approach to management and why?

P. For a long time to come, we are yet to find a mode of management that is better than

teamwork because in a team setting, all the people are qualified with one leader who is basically

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a boss but does not come out as such but rather is a team player as well. In the Accounting firms

for example, all the members are qualified professionals so that none is above the other but as

they share ideas, the output is by far more and richer than if one person were to work. Teamwork

emphasizes the fact that people should be allowed to express themselves, brainstorm and bring

up all sorts of ideas. There is a belief that 100 lousy ideas are better than none. If you get ideas

from all sorts of people, including those on the floor, you will get great ideas.

B. What is your current job?

P. I am a Senior Depot Manager - north managing the northern operations though I do not

manage a deport here in Ndola, as such, I supervise depots in Mansa, Kasama, Mpika and many

other areas in the north. I also handle the public relations aspect as well.

B. That sounds like a lot of work, how do you manage?

P. I have a team under me, with whom I seat, plan, brainstorm and work out all things. I have

Engineers, Accountants and all sorts of staff under me.

B. Has the teamwork culture permeated into BP? How successful and applicable has it

been, if at all? (To what extent)

P. Teamwork is applicable to every organization and BP as an organization emphasizes so much

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on teamwork that when they are employing new staff, there will be an assessment on their

teamwork abilities. Teamwork hasn't been in Zambia a long time but in European countries, it

has been practiced for quite a while. In Africa, we still have a long way to go, as we still have

problems with it probably due to culture and background. And for that reason, teamwork doesn't

seem to be working too well. We still have a group on top that can't be touched while the

operatives in the middle to fix below are forced to receive commands. As a result you have a

culture where people will not accept correction or advice but busy to please the boss. As BP, we

are trying to discourage it. Various efforts have been made such as shared ideas to get the

methods of best practice. I have attended some in the region and they continue to take place, they

come up with really good ideas.

B. How do they respond to the Team/ TQM approach?

P. Very well although I sometimes have problems due to the hangovers people have from the

past. They always want to revert back to the past practices because they felt they have always

done the job in a particular way. The new methods seem to interfere and seem a bit more

difficult. It is extremely difficult to change them over a short period of time, but what I have

done positively is to occasionally go down on the work floor and find people in there natural

habitat and where possible, suggest ways of executing a process better. I am careful not to seem

to impose things by asking them "Don't you think it could be done better this way?" In that way,

I deliberately breakaway from the traditional box mentality where you impose your own ideas on

staff who, in the final analysis don’t own the process as a result. I go almost one and a half hours

every day to the shop floor to interact with people and in that way foster teamwork.

B. That's very nice, would you call it.... management by walking around.....?. How often do

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you do this?

P. Yes, if you like, it is very effective and I make sure that I go out on the shop floor for one and

a half hour everyday just to familiarize and acquaint myself with people who may ordinarily feel

uncomfortable to visit me at the office. Then we are dealing with people on a personal basis

rather than giving instructions from the top. In the end, this opens them up and you get better

results.

B. Now, although we have already alluded to it, what, in your own words, is TQM?

P. What I think is that TQM is the process of management where you affirm that our processes

and procedures guarantee almost that at the end of the chain or production line we are going to

be churning out high quality products, increasing performance and defects reduced to zero. The

emphasis of TQM is really on procedure upon procedure not an individual person. In other

words, other than finding out who went wrong, TQM emphasizes that we find out whether the

processes are correct. The system must ensure that no defect is introduced or allowed to exist.

B. What is the importance of TQM?

P. It ensures that there is no defect or redoing of something and thus cheaper.

B. Is TQM practiced in BP Zambia? What about in South Africa and Europe?

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P. In Zambia, we haven't really applied TQM, I think, to that level where we can say that we

have done it, although at our plant in Kitwe, we are running a system which more or less on the

lines of TQM, an ISO based system - International Standard Organisation (ISO 9003). What ISO

9003 basically deals with is that whatever you are doing must be documented in such a way that

if someone comes with no previous connection, they will be able to follow through without a

problem just by observing what you are doing, you should look it up and ask whether it is ok.

These processes are designed in such a way that at the end of the day they eliminate chances of

defect, ensuring that whatever is being churned out is an assured perfect product, with very little

or normal conformance to standards.

B. To what extent is it practiced in BP?

P. We are still trying to cultivate it into our system.

B. How long do you envision it will take root in Zambia?

P. It will take sometime in Zambia for it to reach international levels but we are determined to

foster its development, if we are to remain competitive.

B. Now, we are running short of time, but could you briefly tell us some of the hurdles you

have encountered in Implementing TQM?

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P. The problems are always on the attitude of people who think the procedures are just too long

and are tempted to use short cuts to achieve the same goals. The problems are basically attitudes.

B. What are the goals of BP in the coming years?

P. The company's immediate vision is as follows:

Financially, we hope to double the 1997 profits by the year 2002. But then in terms of quality

health and safety issues, BP wants to be like they say, "Our policy is to be friendly, cheap, high

quality and do no harm to people, no damage to the environment". So in terms of what we want

to do in health, safety and environment, there is the environment audit standard that we are

following. We are also going for another environment standard that is to do with environment

management from ISO, and as BP we are saying, we have to produce petroleum products that are

clean to the environment. Our motto is "Energy and Sustainable increase.

B. Finally, on a personal note, you have done both the ACCA and CIMA, which one of the

two emphasizes TQM more?

P. Objectively, CIMA leans towards management than ACCA and therefore by the same token,

you have more of TQM coming in CIMA, although both of them refer to TQM.

B. Thank you Peter, for giving me this interview despite the early hour I came.

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P. The pleasure was mine.

Case study questions

What do you think about BP’s quality initiatives and approaches?

What does the moto “Energy & Sustainable increase” suggest to you?

What does TQM focus on?

How important are ISO standards to BP as well as the environmental concerns?

Do you think BP is a safe haven for quality procedures (i.e. TQM)?

Do you think BP really cares about quality and the environment? Document from the case study.

Mr Peter Njobvu alludes to ISO 9003, what does this standard concentrate on?

In your own words, why has people management suddenly taken a centre stage in the recent

past/decades?

What is a “Buzz word” and how different is it from a fad?

Why haven’t traditional approaches to Management worked well as compared to the modern

trends?

Comment on Mr Njobvu’s leadership and management style.

Case study 2

Asahi Breweries, Ltd

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In 1949 when Dai Nippon broke up, it signalled a new era for the brewery industry in Japan in

that the once dominating giant snapped into two regional companies, Asahi in the west and

Sapporo in the east. This breakage, seemingly insignificant at the time, was a land mark because

it was perfect fertile ground for the Kirin company, once an under dog, to flourish as it remained

the only national player worth its salt.

The ensuing months and years saw Kirin emerge from oblivion to become a major player. This

was because the dismantled Nippon became regional and thus the two companies had to start all

over again establishing them selves as separate entities. This is the most difficult part in brand

establishment. Further more, Kirin was strategic in its approach as “it read the times”, and

moved with the trends in terms of marketing and customer approach. For another reason, the

Kirin brand was better placed and tasted better given the contemporary scene. Kirin’s brand was

of superb quality, which quality propelled Kirin to the top of the market. Product loyalty

naturally followed. In the third place, the lean companies also contributed further to this battering

as they made certain serious blunders. For example, Asahi made two near fatal mistakes by

firstly, allowing its distributors be used by another company-Suntory. This led to a situation

where the Asahi brand being laid aside in favour of the other brand. The second mistake was

their continued focus on a stagnant market. Over the years the market tastes and preferences had

been changing while the company remained insensitive, neither customer focused nor strategic in

approach. Rivals went ahead and made strides towards meeting customer desires by changing

products, packaging, new aggressive marketing methods and market/product research. These

innovations were taking place on the same customers, though in a different generation. In short,

the market remained stagnant while the Asahi market share slipped from minor to insignificant.

As the years rolled on, it was a matter of time, Asahi was on the on the way to the company

abattoir.

This gloomy picture thus far painted persisted for a years, all the while loudly proclaiming the

imminent Asahi demise. But just at the brink of death that is when things turned right round.

Asahi, under new management, made radical decisions which begun to steer the old ship back to

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safety again. The process was initially slow but certain. Fatally wounded, the organisation

needed drastic surgery to put it back on the rails. The Higuchi led management embarked on a

number of modern “Life saving measures” as follows. Firstly, the company carried out a self-

audit to find out the root causes for the decline. It was discovered that the company did not have

a specific goal or corporate strategy. This goal needs to be an internalised passion in every

employee. Granted, a company can do all the frantic manoeuvres under the sun but without a

strategy, all these efforts are wasted, if in the wrong direction. In a nutshell, there was need to do

a corporate identity, to trace clearly where the company had been, where it was and where it was

going. In what industry was it and what were the competitors like? In addition to writing a

mission statement, these were some of the questions that Asahi tackled before it begun to shake

off the death shackles that had stuck to the company “good will” like algae. This pivotal self-

introspection and retrospection was crucial in the turn around. The findings were that there was a

lot of bureaucracy, inflexibility, low morale, distrust, evil suspicions and neither initiative nor

risk was allowed. The “naked King” syndrome rested securely on the company’s laps. Having

established the pit falls, the company then went on to check the attitude towards customers as

well as the corporate agility. It was noted that Asahi had stuck to the old traditional tastes, values

and attitudes that had become obsolete. The beer taste for example had changed and needed to be

revisited. Furthermore, the company had not moved with the times to ensure that it was a

learning organisation, forever sensing the rapid taste changes in the environment. Although the

traditional brand name and logo were important, it was time to change these to fit the

contemporary tastes. The company made frantic efforts to conduct frequent market research so

that the company remained “on line” with trends. Also, the packaging and top quality products

had to be changed. In the end, the customer was king who called the “shots”. Having

implemented all these strategies, the giant begun to show some signs of life again! Asahi begun

to flex its muscles once more and moved to reclaim some of the lost market. As such, the Asahi

market share grew from 10% to 29%! This, by all standards is a feat! It was wrought by a new

strategy establishing a niche, which even the rivals found difficult to copy. Thanks to the

corporate identity and Total quality control exercises!

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Now the above “success story” seems to suggest that Asahi has arrived forever, nothing could be

further from the truth! The fact that it has begun to expand sales means more work, watchfulness,

and always reading the times. Quality must continue to be at the heart of the products. The

customer must set the pace and innovative aggressive marketing should continue. In our view,

Higuchi must increase company capacity, while remaining contemporary to meet customer

demands. Further innovations and brands must be launched knowing that rivals are busy etching

inroads into the beer market through new products, still believing that the Asahi brand was a

mere improvement to Kirin brand. In addition, product differentiation is crucial now more than

ever before.

Although the future for Asahi seems threatened, we have reason to be confident that given the

new management style and the continued efforts to ensure a competitively strategic position, we

have no fear that Asahi will be numbered among great revived giants, if not the greatest!

Source

Bower, Bartlett, Uyterhoeven, and Walter, Business Policy: Managing Strategic Processes, 8th

Edition, Richard D. Irwin

Case study questions

What are your general comments on the Asahi Breweries in relation to competitiveness?

What one thing or attribute accounts for the Kirin breweries success?

How did the breakup of the Dai Nippon affect the brewery competition?

What is a niche and how cut it be achieved?

Comment on the relevance of a self audit and how it contributes to a corporate entity’s

competiveness.

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What is product differentiation as relates to Asahi & Kirin breweries?

Revision exercise

What is Quality?

Why is TQM very important today?

In your own words, define TQM.

Does your organisation practice any TQM processes? If so, explain.

Whose responsibility is it to manage quality in an organisation?

In your opinion, which is best, to have a specific Quality Ministry or not? Justify your answer.

BibliographyBaker Susan, Sustainable Development, Routledge, 2006

Burnes Bernard, Managing Change, FT Prentice Hall, 4th edition, 2004

Buttrick Robert, The Project workout, Pearson Education, 2002

Campbell J David, Organisations and the Business Environment, Butterworth Heinemann, 1997

Crainer Stuart, The jack Welch Way, Magna Publishing co. Ltd, 2003

Dalal-Clayton Barry & Bass Stephen (compilers), Earthscan, Sustainable Development

Strategies: A resource book, 2007

Dessler Gary, Human Resource Management, 10th edition, Pearson/Prentice hall, 2005

Dresler Simon, The Principles of Sustainability, Earthscan, 2007

Flower Alan, Striking a balance, Earthscan, 2000105 Quality quest

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Higgins C Robert, Analysis for Financial Management, 5th edition, Irwin McGraw-Hill, 1998

http://www.asq.org, proceed to the “learn about quality” section of this site.

Krames A Jeffrey, The Welch way: 24 lessons from the world’s greatest CEO, TATA McGraw-

Hill Publishing company, 2002

Krames A Jeffrey, The Welch Way: 24 lessons from the world’s greatest CEO, TAT McGraw-

Hill, 2002

Kubr M (editor), Management Consulting, International Labour office, 1980

Maylor Harvey, project Management, 3rd edition, Pearson Education, 2003

Njobvu Peter, TQM interview, tape, 1999, Billy Sichone

Oakland S John & Porter Leslie, Cases in Total Quality Management, Butterworth Heinemann,

1994

Owen A Lewis & Pickering T Kevin, An introduction to Global environmental issues,

Routledge, 1995

Peters J Thomas & Waterman H Robert, In search of Excellence, Warner books, 1984

Render Barry & Heizer Jay, Principles of operations Management, Pearson/Prentice Hall, 6th

edition, 2006

Schroeder G Roger, Operations Management: Contemporary concepts and cases, McGraw Hill,

International edition, 2008

Silbiger Steven, The 10-day MBA, Magna Publishing co. Ltd, 1999

Steger B Manfred, Globalisation: A very short introduction, Oxford University Press, 2003

Steyn Johan, Project management (workshop notes/hand out), Marcus Evans, 2002

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Unit 4

Aim

The aim of this unit is to introduce and explain the project cycle giving a clearer understanding

of the processes/stages of a project

Objectives

By the end of this unit the student should:

1. Have an intelligent grasp and appreciation of the logical framework as relates to the

project cycle.

2. Know about other project quality enhancing techniques.

3. Be able to explain the project cycle

4. Know the roles of various stakeholders and project staff.

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Quality as relates to project management

Projects and programs have been around for a long time now. A scan into their development

will reveal among many things that projects have been perceived as better placed to deliver the

desired results in a given time frame. This realistic time frame takes into account so many factors

so that the project, once operational will progress towards a desired end. As you have probably

correctly concluded, projects have certain traits that make them unique in the sense that they are

specific in answer to a specific problem or felt need. In commercial entities, projects are usually

set up to sort out a bugging problem, increase efficiency or develop new products or services.

These manoeuvres in the long run pay back dividends tenfold as time rolls on. In addition,

projects have specific plans and direction facilitated by a competent team that feverishly works

away like beavers to achieve the desired goal(s). In this unit, we focus on the project rather than

the program as this shall be dealt with in a later unit. For now, we consider the project cycle and

what is involved in running a project.

The Project cycleA project by definition is a specific undertaking that seeks to address a particular need or

problem in a given context, the context being a community, organisation or domestic setting.

William Stevenson defines a project as “unique, one-time operations designed to accomplish a

specific set of objectives in a limited time frame”9. Yet other authorities, have defined it as “any

non-repetitive activity, a low-volume, high variety activity, a temporary endeavour undertaken to

create a unique product or service (PMI 2000), any activity with a start and a finish, a unique set

of co-ordinated activities, with definite starting and finishing points, undertaken by any

individual or organisation to meet specific performance objectives within defined schedule, cost

and performance parameters (BS 6079:2000)”10 among many others on the project definition

market today. Perhaps an example will do. Suppose there is a nagging problem in Mpika which

is malnutrition standing at 66.5%. (2006), a specific project tailored to deal with this problem

could be set up for a period to handle this matter so that the malnutrition prevalence significantly 9 Stevenson William, Production/Operations Management, IRWIN, 1996 pp 75810 Maylor Harvey, Project Management, 3rd edition, Pearson education, pp4

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reduces from say 67 to 35% in a five year period. To achieve this, the project must have clear

goals from the beginning (Year A) to the end in year X when the project phases out. The second

thing that is clear about a project is that it has specific targets and goals that have to be met in an

agreed time frame. Part of these targets could include assessing the projects’ viability (feasibility

study) and necessity, stakeholder engagement, staff recruitment & hiring, office set up, asset

procurement, project design, implementation, monitoring, evaluation reflection and transition.

All these issues should be set in concrete from the start. The first phase in the project cycle

tackles the initial project steps such as undertaking an assessment, which may include an initial

idea or concept. Apart from the concept to or from a potential sponsor, at this stage, the project

undertakes several activities which are incognito as well as stakeholder engagement to establish

the actual problem and what the partner perceptions are over their perceived own problem/felt

need. This stage determines whether the project is relevant or not. The second stage is basically

about documentation and analysis of findings as well as disseminating the results to all stake

holders in order for project planning purposes. Having confirmed the necessity of the project, the

right staff cadre are hired chief of them being the Project Manager and Accountant, apart from

procuring the project inputs. The third stage means that the project is designed as well as planned

and activities carefully laid down in consultation with stakeholders according to their priotised

interventions. The next stage now involves the actual implementation stage that may run for

several years. During that period, monitoring goes on throughout ensuring that the project is on

target. Periodically, independent evaluations take place to determine the outcome of all the

activities. Towards the end of the project, with funding diminishing and projects closing, a

comprehensive end of project evaluation takes place to find out whether the goals have been

achieved or not. Depending on the project agreements at the time resulting from the evaluation

findings, the project may be extended, renewed (redesign) or closed. This is the transition stage

and in the event of closure may include final asset transfer to partners, account closures, staff

scale down and ultimately departure. To understand the processes above, we proceed to consider

each stage in detail. But before we proceed, it is worth mentioning that depending on the nature

of the organisation, established entities periodically have projects with a specific mandate and

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goal while the larger organisation relentlessly pursues the corporate goal & strategy. Projects

come and go. For now, we consider the project stages.

A) Assessment stage

When a sponsor elects to fund a project (concept) with a specific focus, they usually have an

agenda or want to respond to a perceived need. This perception, although in good faith, may not

actually represent the actual felt need or problem on the ground. To establish the real root cause

and properly define a development project, some form of assessment involving key stake holders

takes place. In the case of other projects such as a dam construction, a feasibility study takes

place prior to the project implementation commencement. This may include an Environmental

Impact Assessment (EIA), partner mobilisation and other critical processes. Depending on the

outcome of the preliminary feasibility studies, the project may or may not proceed. In the case of

development projects, this is the first and most critical stage because the sponsors and potential

implementers do not know whether the project is relevant and will yield the necessary results.

We give a stage by stage process in the subsequent paragraphs:

Before any survey is undertaken, a concept paper suggesting the need of a project is drafted by

either the potential sponsor or implementer. This concept paper is a form of proposal is a

summary which highlights a problem and suggestion solution. It has several sections that include

a narrative and financial section. The budget is minimal at this stage as it is supposed to be in

‘seed phase’. If the sponsors agree to go ahead with the concept or idea, then the real work

begins though in low key avoiding to curiosity or raise unwarranted expectations. Here is a brief

breakdown of the initial feasibility study session:

a. 3 ‘L’ survey. This is the first stage of the assessment apart from the initial contacts within

the organisation. The assessors first take an incognito tour of proposed potential project

are and undertake a quick scan observing distinct & important features such as the

topography, landmarks, key places (e.g. Post office, Municipal administrative offices,

Church etc), local customs, practices and languages. At this stage, no one in that

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particular locality is aware that some people are observing and taking note of what they

see and learn. As earlier intimated, the three things the assessors do is to LOOK around

and take note of significant features and land marks of that locality such as the Market

place, the Post office, the stadium or church as the case may be. They sketch maps of

what they see as well as the perceived socio-economic issues of that place. The second

thing that they do is to LISTEN to what people in that place are saying. This can be done

by visiting public places like markets, stadiums, church gatherings or any passers by

without stating their mission or raising curiosity. They also note dominant values,

customs and languages of that place that may impact on the project implementation. The

last thing they do before departure is to LEARN from the local scenario. They learn all

sorts of things from an obscure standpoint such as the local customs, value, language,

staple food among many things. Having completed this three to four day “study tour” the

assessors retire to their place of origin and write short reports of what their perceptions

were and what they thought might be the felt needs in that particular locality. This

consolidated report is presented to the sponsors who evaluate the findings and decide

whether to proceed or not.

b. The second stage in the assessment is to regroup and then formulate questionnaires

(information collection tools or approaches) for stakeholder engagement. This may take

many different methods but the bottom line is to touch base with key people to establish

rapport and get basic demographic data that would be handy to planning. Among those

engaged could be Members of Parliament (MP), Government heads and religious leaders

among many. The administered questionnaires or focus group discussions are designed to

capture key secondary data that gives some profile about the area. This is a critical stage

but still the assessors have not fully decided whether the project should proceed.

c. The third and final key stage in the assessment is to conduct an appraisal with the

targeted beneficiaries. If the project is in the rural area, the appraisal is called a

‘Participatory Rural Appraisal’ or “PRA” for short. In this session, a three or so days

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meeting is convened with all partners and stakeholders together to do various activities.

Part of those activities will be focus group discussions, problem identification as well as

prioritising the needs in order of preference and importance.

d. Having completed the PRA, a report is drafted and disseminated to interested parties.

This closes the assessment stage leading to the next.

B) Design stage

The design stage commences on the premise that the sponsors have approved the project and

ready to progress with the subsequent processes. This stage has at least two processes namely

1. The Transformational Development Indicator (TDI) stage. During this phase, the team

builds on the findings in the assessment phase because this is a more structured and

technical stage where various stakeholders are taken on board. Basically, the TDI aims at

collecting secondary and primary demographic data, analysing the data found and

drafting a report with suggested indicators as well as what project(s) to undertake to sort

out a problem. This analytical report has graphs, sketch maps, pictures, tables and any

relevant information related to the intended project.

2. Having done the TDI, it is now time to draft a Provisional Design Document (PDD). This

document is the summary of all the findings from the previous stages in a logical and

semi permanent fashion. To compile this document, a series of meetings are conducted

with partners and stake holders where a number of processes are done to confirm earlier

responses. For instance, the stakeholders are asked again to identify their felt needs and

prioritise them. They are also facilitated to identify the root causes as well as effects of

their problems. This is done using the problem and objective trees (although some

critique these as only problem rather than intervention or activity focused). In this way,

the problem root causes are identified and targeted for action in the implementation stage.

At times, “short cut” projects deal with the effects rather than the problem root causes

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leading to recurring problems. The project(s) is given some shape upon which later stages

will build. This PDD report is disseminated to interested parties who make their

comments for improvement and then wait for the next phase. At the TDI and PDD stage,

if the logical frame work approach is chosen, the logical frame work and Detailed

Implementation plans are introduced. We consider these in subsequent sections.

3. From the PDD, the project now enters the Baseline survey stage where all the basic

parameters are set in place. The usual path is to use appropriate sampling methods as well

as the questionnaire method targeted at different stakeholders and findings captures in a

soft ware package for analysis later. Packages such as SPSS or Epi Info come in handy

because they are used to capture and analyse a lot of information which is later

interpreted and a report churned out. This is a very laborious and involving stage

although very sensitively critical.

4. The final part of the design stage is now to properly design the project inputting all

relevant information such as indicators, assumptions, M & E plan, budget and project

goal. This then is the final document that defines the path to be taken and what project

structure will be used. The sponsors consider this document and if they approve, then the

project is ready to kick start.

In good programming, this whole process should take about a year and a half.

But before we proceed, let us digress a little to explain some important terms and processes

because they have a bearing on what quality the project will pursue in its implementation.

The logical frame work

For any project to effectively and progressively attain its goals in a smart way, one of the tools

used is the logic frame work or “logframe” or as popularly known in programming circles.

Basically, the logframe is an expression of the project intentions arranged in a logical fashion so

that any one either implementing or evaluating can easily catch the ropes and get to work.

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Different approaches to logframes has been used by different organisations but in this section,

we present a basic “4 X4” logframe which is in essence a “4 X 4” matrix in the sense that the

frame is composed of 4 columns flanked by 4 rows for each project. It is worth mentioning at

this stage that the Logframe is a summary of the project which one can determine whether the project

will succeed or not. It is the “core” or heart of the project. The table below illustrates what a logframe

looks like and follow it up with some notes to that effect.

Objectives Verifiable

indicator

Means of

verification

Assumptions/risks

Project

Goal/Purpose

Outcome

Output

Activity

As earlier intimated, the Log frame is a tool that logically presents project direction and how this

is to be achieved. To understand this frame work, a few preliminary statements would be handy

and shed light:

a. The rows are made up of the Project goal, outcome, output and activities. Some even add

a fifth row which takes into account the inputs. This is called the ‘hierarchy of objectives’

and different organisations use different logic frameworks.

b. The columns represent the objectives, objectively verifiable indicators (OVI), means of

verifications (or Source of Verification) and finally, the assumptions/risks that affect the

project.

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c. This box matrix entails that the rows and columns intersect to highlight some activity or

output. In other words, for the outcome to be seen (row), the right indicator (column)

must be in place. These must be in sync and make sense.

d. Outcomes and outputs have indicators while activities and Purposes do not, although

some argue to the contrary.

e. There should be horizontal and vertical logic (see fig below).

Goal

Outcome

Output

Vertical logic

Horizontal logic

f. The assumption holds should there be an “If...Then...” logic to the next level of the

hierarchy of objectives. For instance, “if 10 farmers are trained in organic farming

(output) assuming the inputs are available on time every year (assumption), then farmers

consistently stock ready seed for subsequent season readily accessible to other farmers

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(outcome). In this example, the assumption holds because it leads to the next hierarchy of

objectives.

Having made the statements, we proceed to consider each line in detail as given below:

Goal (or Purpose)

This is the desired haven or destiny of any project. In another sense, it can be said to be the

dream or ideal. In other words, the whole project is centred around this goal which is the

justification for its existence otherwise all is a waste of resources. A proper goal has certain

characteristics which make it SMART meaning the project goal or purpose as some prefer to call

it must be:

Specific: Must be directed at something and clear.

Measurable: Must be able to measure change.

Achievable/attainable: Must be feasible in the given time frame.

Realistic: Must make reasonable sense and down to earth.

Time bound: Must be accomplishable in the agreed time frame.

In other words, a goal must be good, target oriented and “completeable” within a given time

frame. A project goal would read something like this:

“To contribute to improved quality of life through reducing of the impact of HIV & AIDS in

Katamo district by the end of 2018”

From this goal, we note that the HIV & AIDS project is to contribute to what others (e.g.

Government, NGOs etc) already are doing in the improving the overall quality of life for people

in Katamo district. How is this to be achieved? By reducing or mitigating the pandemic impact

(via several cumulative and complementary interventions) in a given time frame (time

boundary). This goal phrasing could be improved upon (by for example stating the reduction rate

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of prevalence from X% to Y%)but suffice it to say that it has the realism, specificity (HIV &

AIDS), measurability, time frame and achievability assuming other actors faithfully do their part.

Outcome

An outcome is the lasting impact or result that eventually results as a consequence of a series of

planned cumulative activities. At this stage, the impact is evidently clear and we can begin to

determine whether the project has been successful or not. If a strategy has been good and

successful, then the outcome is sustained stupendous exponential organizational growth profit

wise. If the strategy has been faulty, then the outcome will be weak and not anything to write

home about. Stake holders, especially the sponsor require reports at this level especially at

project phase out stage. One of the indicators of an outcome in development project is the

observed permanent behaviour change as a result of a cumulative effect of activities in the

people the project has been working amongst. An outcome is usually evidenced by a behaviour

change or practice on the target group. Others call it a ‘lasting change’ the absence of which

indicates that the outcome has not been achieved.

Output

When an activity has been carried out, the immediate end result is known as an output, almost

synonymous to what you get at the end of a production process. The raw materials you put in at

the beginning of the production are called inputs which are processed to give a product at the end

of the chain called an output. That output in and of itself may not have value unless some value

is added to it or made manifest to would be interested parties who then create a demand. In

similar lines, once an activity has been undertaken, we get immediate results which often are in

statistical form e.g. “10 Teachers sensitized in Adventure unlimited” Many projects report at

output level but sponsors usually are interested reports at outcome level i.e. the impact recorded

as a result of the intervention.

Activities

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Activities are the actual individual line items and interventions that the project undertakes in

order to contribute to the ultimate goal. These activities are the lowest in the logframe matrix in

the sense that they are the first step in the implementation process. Throughout its lifespan, a

project will be engaged in calculated activity after activity until phase out when it is assumed that

the cumulative effect of these interventions will deliver the outcome. Said differently, activities

are the tangible steps taken during the implementation stages of the pre-planned interventions in

a logical fashion to achieve the target goals. The first activity builds in to the next which builds

into the next until the bigger picture shows impact. Note that an activity may be one or many all

targeted at reaching a goal. For instance, training 10 community members in Home Based Care

(HBC) is an activity which builds into the broader goal of a resilient HBC system in the district.

Other activities may include a youth sports tournament, Malaria committee set up and leadership

training workshop. The list is endless. We can safely say that an activity is an event that takes

place in the spur of the moment whose final impact may not be seen immediately apart from the

statistic that an activity has been done.

Inputs

These are simply all the parameters or resources that a project will need to successfully

implement a given project. Ideally, before the implementation of the project, or indeed an

activity, the inputs must be clearly known (i.e. identified), tabulated and sourced in advance so

that the undertaking commences without much ado. For instance, if the project area is in a far

flung area from the administrative office, it may be prudent to include a project vehicle as one of

the inputs, although it is in asset form. We can mildly classify it as “transport” if we cannot

afford a one off purchase of a project vehicle. As for an activity, a list of inputs such as markers,

flip chart, projector, computer, resource persons etc may be some of the inputs that are essential

to holding a successful workshop or training. Half the time, project facilitators are weak on this

area and only react when it is too late and thus achieve an average impact on their target group.

Resource mobilisation is a critical skill to effective and efficient mobilisation. That is why a

Detailed Implementation Plan (DIP) is superior to the Annual Operation Plan (AOP) because the

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DIP tabulates all the inputs from inception and only retrieved from “the archives” with minor

modifications. The author repeatedly appreciated this when he worked on a grant once.

Now that we have briefly considered the horizontal rows (dubbed the hierarchy of objective), to

complete the picture, we look at the column in a similar fashion:

Objectives

An objective alludes to the desired results of a program or project expressed in generic terms. In

other words, it is linked to the goal except that it breaks down these desired ends in palatable

statements that generally show what a project intends to achieve in a given time frame.

Objectives can be at different levels (i.e. at Outcome & output level, though some suggest at

project and program level as well) in the logical frame but suffice it to say that they state

generally the desired results. In a project for instance, an objective at outcome level can be stated

something like this: “Reduced HIV prevalence rates and related infections in Kawale and

Shantumbu area.”

Objectively Verifiable Indicator (OVI)

An indicator is a sign that shows whether something has or is happening. With respect to project

management, an indicator is a parameter used to tell whether some movement or progress is

being observed in a specific direction. Further, we can add that this indicator must be

“verifiable” in quantifiable terms as well as be as objective as possible. No outside influence or

force should blur the indicator. For instance, if you want to determine whether the number of

nurses has increased in the district in the past two years, you need to establish a baseline from

which you measure any changes. In other words, project indicators are statements that are used

to observe changes in a given context and time frame. Any example of an indicator would be

“Number (or %) of community members tested positive and cases of HIV

related infection”

Means of verification (or Source of verification)

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When a project is in motion, a lot of information and experiences are generated and need to be

documented so that anyone who has no previous connection to the said project can simply read

the available information and have an idea of what the project is about and what it has actually

done. We would further state that whatever processes that the project goes through must be

documented and available for verification by others. In part, TQM centres around documentation

of processes which are used either for instruction or derive best practices. In the log frame

context, the “means” are parameters that can be summoned to verify claims of project staff or

partners and these are several such as surveys, evaluations etc. Some however have disputed that

project reports cannot be used as ‘means of verification’, probably because they are considered

as sources rather than means. Examples of sources are evaluation reports and project reports. But

others argue to the contrary. Be that as it may, the means of verification must have integrity, be

reliable and objective.

Assumptions/risks

Assumptions are those parameters that are assumed to be in place if the project will be a success

and attain next level results. In other words, these are significant factors that influence the

outcome of the interventions and can hinder or foster project progress. An assumption becomes a

“killer” when there is a remote probability of it happening and were to happen would effectively

kill the project. Others sometimes call these as risks because they are somewhat beyond the

control of the project. Akin to threats in SWOT analysis, these risks have a potential of

impacting negatively on the project outcome, sometimes even killing the project altogether. The

said risks or assumptions must be real and make sense. A good example of an assumption would

be availability of all partners at all implementation stages. This may be an acceptable assumption

but subject to debate because one may dispute saying that partners should have committed

themselves to the project during the start up phase and thus the question of availability may not

arise but should they ‘boycott’, the project is likely to fail. A risk would be drought but an

assumption may be availability of normal rains to reap an intended bumper harvest. There are

many sides to this coin but ensure you formulate an appropriate and realistic assumption.

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But note that this whole phase is collectively placed under “planning stage” in the PRINCE2

arrangement.

So much then for the planning and design stage, we hurtle along to a consideration of the critical

implementation phase.

C) Implementation stage

Once the project document and proposal are approved, the next is to begin the project execution

once the funds become available. Implementation simply means putting into action or motion the

things that have been pre-planned. This implementation goes on throughout the remainder of the

project life and only grinds to a halt once the project is closed. During implementation stage, a

lot of activities will be carried out with a view to contribute towards the project goal. The first

steps in the implementation phase is to recruit and hire relevant staff, set up office, mobilise

resources, open bank accounts, install accounting systems for financial management among

many. The first to be hired will be the Project Manager and Accountant who spearhead the office

set up. This staff cadre’s mission and mandate is to ensure the project roll out is on course and

activity execution is dead on target as outlined in the Gantt chart or implementation schedule.

We zero in briefly on the Project Manager before we consider other key staff.

A Project Manager in the person that leads the project implementation who by and large charts

the course, having read, interpreted and internalised the project documents and determined which

direction to take. The Project Manager manages the processes in keeping with the set standards

and has the responsibility to ensure s/he facilitates the implementation process towards a

successful end. In other words, the buck stops with the manager who should have the necessary

skills and competencies to catalyse the project process towards a desired haven. Some of these

qualities are listed below against which every Project Manager aspirant should gauge

themselves.

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Qualities of a Project Managera. Multi tasking

The astute manager of the 21st century must be one of many parts, meaning they must be able to

competently handle different issues simultaneously. It is not enough to have the right credentials

but there must be much more, which results in high quality output at the correct time. One of gets

confused, disoriented or stuck at the slightest introduction of a thing in addition to what they

ordinarily do is not fit to be manager. Granted, we cannot know everything but have to learn the

ropes, the post modern manager has an inquisitive mind ready to learn or take on fresh

challenges. More than that, s/he is able to do several tasks without much ado. This trait is

especially handy in program management.

b. Logical and systems thinker

The ideal project manager is able to think through issues long before any action is taken as well

as understand how or why an adopted system functions as it does. In that way, s/he is

intelligently able to fashion the best avenues to achieve a targeted goal.

c. Implementation intelligence (II)

This calls for several traits by the manager to be successful. For fact that a project has correct

funding, a great team and is timely is no guarantee that all is well. The Team leaders needs an

extra sense to discern what is going on and what needs to be done at the right time. For instance,

the manager needs to know the implications of exchange rate fluctuations on the

d. Good financial management skills

The Project Manager is the chief implementer of all project activities and must thus be well

versed with all aspects relating to implementation. One critical function s/he must

competently handle is the issue of finance. Although they may not be experts in all financial

intricacies, there should be an intelligent appreciation of how finances are managed and

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accounted for. More than cash only, the manager must be able to understand financial

systems, internal controls, budgeting and control among many competencies. Thus, no

manager must plead ignorance or fail to interpret a financial report.

e. Exceptional people management and team playing prowess

As Managers interact with people of different complexes, there is need to have that HR and

leadership touch that enables the manager to relate well with, motivate, build and encourage

staff. In other words, s/he must be a team player, play maker and coach at the same time.

f. Knowledge of the local cues, norms, values & culture

Different contexts demand different calibre of staff. In one area, people may not mind from

where a manager hails while in another context, they may be very particular. In other cases, it

may not even be some one’s back ground but their functionality, willingness to learn local

customs as well as adapt. In that way, they can successfully and winsomely worm their way

through society and excel. It pays to know the local values and customs as this helps in

critical times.

g. Good operations and programming competencies

This is a non negotiable trait which every manager worth their salt must possess. The ability

to organise, mobilise and set things in motion is a skill and art that people perfect over time.

Best performing and effective managers know when to do what and how. This calls for more

than just academic qualification but skill and competence.

h. Objective and action oriented

One needs to keep their heads in all situations and make the best decisions which they would

never be ashamed about years later of having taken. Circumstantial pressures may force

wrong decisions which some live to regret later. Thus, the manager must be sufficiently level

headed, mature and focused.

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i. Task and goal oriented

One mark of a top scoring manager is their ability to relentlessly work hard until the work is

done. They will not leave any stone unturned nor leave anything to chance because they

would like to see results. Once they take on a task, they will not put their tool down for

anything until the goal is reached.

j. Playmaker and professional

As earlier alluded to, the manager is the central key figure in the project that determines the

pace, mood and direction. If they are egocentric, recluse, risk averse and “commando like”,

the project is sure to fail. The reason is that the team will be dysfunctional and remain a

group rather than a team in the truest sense of the word. Positively, the manager acts like a

midfielder, a distributor and catalyst to the team dynamics. Additionally, the manager is both

professional, objective and issue based rather than wasting time in endless personal

squabbles and tussles.

k. Great leadership skills

Closely connected to (j) above, the manager should have well developed or developing

leadership skills. Leadership is not formal position but influence and an ability to motivate,

infuse hope as well as bring about a “can do’ attitude in the team members.

l. Innovative and creative

At times, the project cycle may be disturbed by some unforeseen challenges such as budget

cuts, economic down turn, political interference, delayed funding and a whole host of

problems. The post modern manager will not sit still and complain all day but will quickly

engage their creative and innovative powers to achieve the same goal but with fewer means.

m. Broad, deep strategic thinker and planner

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The manager is the torch bearer and vision carrier of the project and must at all times engage

in long range thinking, proactively handling matters long before they become emergencies.

Half the time, many wait until they hit a snag along the way and begin reacting. Not so the

astute manager, s/he is far smarter and prepares for the rainy day ahead. Strategic thinking

includes being well informed, avid reading, application of knowledge as well as being able to

mobilise resources from different sources to forestall any future crunch. For instance, the

strategic eye foresaw the 2009 global economic meltdown as well as its implications on

project implementation.

n. Ever learning posture

Increasingly as the world gets global in outlook, there is need to acquire as much exposure as

possible. This means getting a fresh skill set ever so often so that you remain relevant and

competent. But then, the manager also needs hands on experience as well as an open mindset

that is willing to learn from anybody, whether superior or junior. The power distance

between supervisor and supervised kills many a manager. In the post modern era, there is

need to change approach lest you turn into a pillar of salt.

o. Attention to detail, meticulous and focused

Lawyers make much about detail and so do Accountants. But the manager must also mind

much about detail and give it its due. They must for instance be keen to read reports, analyse

before signing anything and acquire an eagle’s eye that is able not only to pick things from

afar but be able to read between the lines. Hurry and negligence have slain their thousands.

p. Emotionally stable and mature

The manager should be mature, level headed and emotionally stable, able to control their

emotions. This is important because half the time, people mistake intelligence and education

for maturity. Age sometimes passes for maturity but this is not necessary the case although

one would expect this to the norm. Furthermore, emotional stability is critical because some

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managers shout at their staff and demean them as though they were non entities without

brains. Other managers throw tantrums when provoked and will not respond to anyone until a

week later when they have sufficiently cooled down. This ought not to be.

q. Team building and management skills

The last trait has already been alluded to or dealt with in the earlier points so we simply say

that a manager replicates him or herself by building others who turn out to be a winning

team. Not only do managers motivate, they also have a very steady hand that ensures things

are going according to plan as per agreed tenets.

Having elucidated on the above traits, it makes perfect sense then to consider the Project

Manager’s role.

Roles/Functions of the Project Manager 11

The functions of any manager vary from project to project as well as sponsor to sponsor. Being

the central figure in a project, the manager must be magnanimous enough to competently handle

all matters relating to it because if the project fails or succeeds, the manger bears the

responsibility. Usually, the manager assumes the role or function of ensuring the project starts

well, is on course and is wrapped up as per expectation. Time management is of essence in the

project and as such, the astute manager of makes much of when or how a project is implemented.

In this section, we briefly highlight some pertinent points worth considering:

i. Overall management and leadership of project.

ii. Facilitate project process (i.e. the work flow, implementation, resource mobilisation,

time management etc)

11 William Stevenson has some useful things to say about the Project Manager on pp 759 of his book “Production/Operations Management”.

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iii. Strategic thinking and planning.

iv. Financial and operations management (i.e. budgeting, costing, estimating, cash flow,

learning curve, quality issues etc)

v. Internal control enforcement

vi. Team building

vii. Capacity building

viii. Public Relations

ix. Human Resource handling

x. Policy interpretation and enforcement

xi. Monitoring and evaluation

xii. Managing project information

xiii. Negotiation (with donors & other partners)

xiv. Resource mobilisation-human, financial & other assets.

xv. Networking & Collaboration

xvi. Periodic reporting to relevant authorities and donor.

The Project Manager and sponsor/donor relations

One of the roles of the Manager is to maintain official cordial rapport with key partners. This

includes sponsors or donors. The Manager must execute this function diligently and meticulously

ensuring that the donor is kept abreast with the recent or current developments as well as

repeatedly satisfied with the project progress. Being the chief custodian of project resources and

entrusted with so much, the Manager naturally develops a special relationship with the sponsor

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in that they become mutually accountable to each other. Each party must do their part to honour

their commitment to the project. In this regard, the Project Manager executes and gives period

feedback on the project while the sponsor mobilises resources and funds the project timely as per

agreement. Should something go amiss, the Project Manager is answerable to all stakeholders for

the buck stops here. Thus, we see that the Manager holds a delicate position and has no option

but to deliver timorously and to satisfactory quality standard. Project navigation is a skill and

only the seasoned mind is equal to the task. On the part of the sponsor, their role, as earlier

intimated, is not only to secure funds but also to periodically monitor the project to appraise

themselves on the progress and challenges faced by the project team. The sponsor identifies with

and builds close mutually trusting ties with the project management team and should be on hand

to honour their pledge. Thus, if the Project Manager was exceptional and acquitted themselves

well, in the event they left the project or was transferred, the relations are sometimes temporarily

disturbed and new ties built which may take time. In some extreme cases, sponsors even threaten

to pull out because the person they trusted has left! But this ought not to be because there is a

staff team as well as systems in place to guide the next team leader. All that the next person does

is read the design documents, project reports as well as any monitoring or evaluation reports.

Within a short time, they should be up and running.

Other team members

The manager, although fully responsible for the whole project does not work alone, lest they be

overwhelmed. S/he has all the authority and has delegated some duties to specialists who hold

specific technical positions. Professionals must be hired in the interest of objectivity,

transparency and “division of labour”. Thus, this builds in professionalism and objectivity as

well as strong internal controls. As auditors and would be donors examine the structure, it gives

them confidence and impetus to do even much more. We consider some, not all, key positions

commencing with the finance person.

Finance person

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The finance person holds the delegated though independent function of managing all the

financial resources of the project. S/he is the chief custodian of the financial resources although

accountable and reporting to the Project Manager, with a dotted reporting line to the Country

office finance director, if the organisation is a multinational or large. This ensures objectivity,

independence and reasonable security to the finance officer.

With respect to personal traits and professional competencies, the said person should be mature

and extremely stable on figures. The person should be well versed with relevant financial

systems and data capturing accounting software such as the Sun systems, AccPac, Pastel, Quick

books among many. Each project will be suited for a particular soft ware. The Sun Systems has

proved a versatile and reliable package. In short, the finance person must have the following

competencies:

a. Able to devise and enforce strong internal controls.

b. Set up accounting system.

c. Able to generate periodic, accurate & timely financial reports tracking expenditures as

well as give explanations for variances.

d. Perform monthly bank reconciliations for all the project accounts.

e. Maintain confidentiality

f. Where applicable (if some other department does not do it like HR), generate payroll

(usually computerized)

g. Build capacity in junior staff with a view that they take up the function in the event s/he

is away.

h. Advise management on financial management matters.

i. Maintain a daily cash flow.

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j. Ensure only right amount of cash is maintained at any one given point. This is called a

target low, especially at the end of a reporting period.

k. Securely maintain financial records for a specified period of time according to policy.

l. Generate an updated asset register reflecting assets the project has at any one given point.

There should also be an inventory list that keeps a record of all items not classified as

assets.

m. The Accountant must also keep a record of all debtors (advance holders) and ensure they

settle them in a specified time. An aging analysis is handy to keep a tag on this matter.

As we can see, the Finance Officers’ job is both essential and critical explaining why the first

and last two project staff to be employed or laid off includes an Accountant. Lets next consider

the DC and DF.

Development facilitators (DF) and Coordinators (DC)

These staff interface directly with the community or partners as the case might be. Their role is

to primarily ensure the work is done on a daily basis and are the first to note any changes in the

project or whether there is need to mutate. As the saying goes, these are the ones who are “where

the rubber meets the road”, as it were.

Some of their competencies apart from their academic credentials is the ability to:

1. Mobilise partners and stakeholders at every project stage towards an intended goal.

2. Capture data on a frequent basis for input into the Monitoring system and database.

3. Keep in touch with relevant key stake holders at the bottom of the pyramid in the project

area and ensure everything is moving as per plan.

4. Facilitate training of partners who have a serious stake in the project.

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5. Get the “buy in” of all before, during and after the project close out.

Monitoring and Evaluation officer

This officer’s role is to ensure the project is always on course and the things to be undertaken are

done on time and to the required standard. In other words, this is a support rather than a line

function in that the M & E officer is independent and does not have position power over line

staff who report to the manager. While the Manager leads the way in implementation with team

members reporting to him, the M & E officer goes around to check, document and report on

what is going on. In other words, the M& E officer is the information focal point person and

keeps the institutional memory of the project. Until recently, this was a rather neglected function

in many projects but is now critical for almost any project that comes around. We can summarise

the officer’s function as:

1. Keeping record of whatever pertains to the project cycle.

2. Set up and maintain a data base.

3. Formulate an M & E plan

4. Monitoring project implementation

5. Periodic evaluation of project impact.

6. Analyse data generated at different stages of the project cycle.

7. Advise and update Project manager on some observations and how best to improve.

8. Track DIP implementation & alert relevant staff, especially Project Manager.

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For a person to effectively function, they must have excellent mathematical and analytical skills.

Skills in software packages such as Access and Excel are non-negotiable. Competence in

analytical software like SPSS or Epi info is definitely an advantage.

The above mentioned positions are very key in any successful project but other auxiliary staff do

exist that support and ensure that the project is on course and running efficiently. This depends

on the project type and nature.

It is fitting to mention at this stage that from inception, the project quality is under serious

scrutiny ensuring only the best is churned out in the interest of delivering impact to stakeholders.

To achieve this, various forms of monitoring takes place by different parties. Monitoring is

basically checking on the project progress at every development stage on a daily basis. The

parties to monitor include the community/direct target beneficiaries (in development projects),

NGOs, Government, civil society, sponsors, project staff and other interested parties. On a daily

basis, the staff and direct target beneficiaries meticulously watch and control the project direction

ensuring everything is on course. Should there be a deviation, one of the parties blows the

whistle so that a correction is immediately effected. Monitoring is daily while evaluation is

periodic and aims at establishing the long lasting impact and whether the project is headed in the

right direction in achieving its objectives. An evaluation is best undertaken after a reasonably

long period of time because then, many activities will have been done contributing to the long

term goal. An ideal time would be about three to five years in lengthy projects while a few

months if the project is short term (say one or two years). The purpose of monitoring and

evaluation is to ensure direction, focus, efficient and effective use of resources. Projects that

relate to service delivery or product churning out have their respective standards which function

as a mirror if the project is on course or not. One of these could be increased customer

satisfaction and retention, if the repeatedly trained staff are doing a good job. If it is about

tangible products like phones, improved market share or slump indicates whether the quality

improvement project is on target. Remedial measures are then instituted as the case may be.

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To assist in proper project implementation, the project breaks down the activities derived from

the DIP into smaller manageable packets. These ‘packets’ are called Plans of Action (POA)

which basically means that in a given time frame, say a week, month, quarter or half a year, the

project is going to pursue a certain path. This plan of action of implementation schedule of sorts

tells the story of how and when the laid down activities are to be accomplished as well as by

whom. Over the years, these POAs prove handy, improve implementation quality, hold people

accountable and give a sense of direction to whoever has written it down. It is recommended

practice that every person has a plan of action of sorts.

As the project comes to a close, many things are done and we deal with them in point (D) below.

D) Reflection, redesign and transition stage

The last stage of the project cycle is reflection, redesign or transition. Depending on the project

exit strategy and how it has been previously faring, in the last stages (say one or two years before

final closure if it is a long range project), the project begins to review its performance so as to

ensure it “phases out with dignity and honour” as some development guru have coined it12. At

this stage, the project is focusing on the whole process from inception and what tangible impact

it has evoked on the target group or beneficiary. If it discovers that things are not on track, the

project has an opportunity to alter its course so that the critical factors are instantly dealt with.

The reflection stage ensures that corrections are made or strengths fostered so that the lasting

impact is far greater. Further, the project is concerned about sustainability and continuity of

things commenced in the earlier phases. In the case of projects other than development ones, this

stage entails reviewing systems, refining processes, taking corrective measures as well and

renegotiating with the sponsors at least three months before closure for either an extension

(which may be a cost or no cost extension). Usually, negotiations start way off (in USAID (USG)

funded projects, at least 90 days before close out) so that the project is either extended or simply

closes out at the intended time, having achieved most, if not all the objectives. This is rare

(timely project closure) though but achievable in well executed projects which stick to time and

12 Anonymous, perhaps Dr Paul Woods, Australia

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schedule. Various tools are used to determine whether the project should close or continue for at

least six months to one year after which very few sponsors would be willing to fund. However,

there are cases when the project fails to meet its intended impact and sponsors still have a keen

interest. In such instances, the project transitions (closes) or to another process called the

redesign phase which focuses on other priorities most likely building on earlier targets. The goal

of the redesign is to “re-aim” so that the project hits the desired goal which could have either

been missed or eluded during the project cycle. It is worth mentioning that in the redesign phase,

the goal remains the same as before but what changes are the strategies to hit the Bulls’ eye.

Such cases (redesign phase and therefore extension) are extremely rare, especially if projects are

privately funded.

Monitoring & Evaluation (M & E)

In building quality into a project or program, Design and Monitoring and Evaluation (DME)

practitioners ensure that they engraft parameters that will guarantee quality within the system. In

development projects quality is a matter of much concern because a lot of things are at stake

and as such, a number of antidotes are engrafted into the system so that quality is guaranteed as

well as fostering continuous improvement. The M & E function is viewed differently by different

people but some have this to say though basically, all these centre around quality: “

Monitoring is a warning system that ultimately feeds into evaluation.

Evaluate simply means to assess the value of something (Feuerstein, 1986, p.2). The

reasons for evaluating are many and varied, viz sharing experience, improving

effectiveness, allowing for better planning (Ibid, p.3)

PM & E is not a matter of using participatory techniques within a conventional

monitoring and evaluation setting but rather a radical rethinking about who initiates and

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undertakes the process, and who learns or benefits from the findings (IDS Policy Briefing

12 , Participatory Monitoring and Evaluation: Learning from Change, November 1998)”13

Thus we can see that M & E is a critical function to project quality management but the question

that begs answering at this stage is what is involved in project M & E and what are the methods

of performing it? A detailed treatment of this is beyond the scope of this module but we highlight

some aspects of this for our information. Generally, any good M & E system, as earlier alluded

to, aspires at ensuring the correct thing is consistently done at every turn thus building quality

into the system throughout. To achieve this goal, several elements combine to make up this

system as shall be demonstrated. The first aspect about a good M & E system is that it should be

a wide ranging data base that retains all project information from inception to close down. In

other words, all data is collected and stored in a data base for further review or retrieval at any

one given time by all relevant stakeholders and interested parties. Knowledge management is

critical. Thus, all relevant information is collected by implementing staff and partners, fed into

the system and retained for future use. The second aspect about a good M & E system is that it

must have a good M & E plan which clearly stipulates who should collect the information, when

as well as the frequency. In that way, the type of information as well as whose responsibility is

known from the start. The third component is that the said system should have an Indicator

Tracking Table (ITT) which ensures that every indicator is not only meticulously monitored but

progress achieved from inception is gauged against the ultimate project goal. In this way, the

project team can reasonably assess and tell whether they are on target. Still another component

about a good monitoring system is that the M & E officer must be & operate independent

alongside other partners or stakeholders who carry out their own monitoring as the project

progresses. All these parties document the happenings at the project and quickly query when

something goes amiss. As for the M & E officer, his or her primary function is not only to

monitor but to document whatever transpires in a retrievable data base. Another M & E approach

is to carefully set up budget expenditure ratios indicating whether a project is top heavy or

spending more on administration rather than the target beneficiaries. A certain prominent NGO

13 Quoted from Sikapale Chinzewe WVZ Operations review Power Point presentation, 2006

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has set the administration to beneficiary ratio at 20:80. Anything outside that sends a warning

signal of poor management. Yet another would be to have a project peer review among projects

of similar nature with the aim to compare notes as well as draw lessons of best practice. Finally,

it is good to standardize the reporting system and make the documents accessible to any

interested party. For instance, World Vision International has developed an information system

that is accessible by any world Vision international office globally. Only what is of the highest

quality is posted there. The Program Management Information System (PMIS) has reaped

incredible results for the said entity as well as significantly enhanced programming quality. In a

nutshell, all these lose ends tie in together so well to foster qualitative project implementation as

well as drawing lessons to inform future project set up. In well planned projects, the M & E

system greatly supports the embedded quality into the system thereby making it impossible for

the naked eye to see it. What is evident however, is high standard output. It must be stated here

that monitoring takes place at activity and output levels while evaluation (which takes place after

some considerable time of cumulative activity implementation) takes place at the outcome and

goal levels. Some hold that project staff are held accountable at output level while others

maintain that it is at outcome level as well because the used strategies should lead to the outcome

otherwise people will not plan meticulously from the start.

Like hinted earlier on, projects use different tools to ensure quality but a good portion of them

use the log frame approach.

Other organisations like World Vision International have and are developing an approach of their

own, of course building on what the past giants have already done. This approach is coined the

LEAP approach which acronym stands for:

Learning through

Evaluation,

Accountability and

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Planning.

This is an organic Design Monitoring and Evaluation (DME) approach which, unlike the other

models, ensures that designed projects are agile, learning, flexible, relevant and open to change

as the context mutates as well. This model, although resting on the log frame approach is

different because the projects have a design document crafted at the beginning of the project life

buttressed by a Detailed Implementation Plan (DIP) which in itself is a list of activities derived

from the log frame for the whole project life span (Say three or five years). This LEAP life cycle

assumes that if well planned and executed, the project should address all the issues raised during

the assessment & design stage as well as redesign so that another project may arise that deals

with another felt need or problem. Thus, LEAP is premised on the ground that the world in

which projects operate is not static hence the need to be relevant to the needs of the time. After

the design is complete and DIP drafted, the project goes into implementation and is meticulously

monitored to ensure it is on track. Should any deviation be noted along the way, this is

documented and correction made accordingly, of course following normal programmatic

procedures such as evaluations or redesign. As the project reaches the reflection and transition

stages, lessons learnt are engrafted in the redesign otherwise the project closes. The LEAP

approach appears better qualitatively because it ensures continuous learning, accountability and

planning as well as evaluation for better programming. All these elements somewhat foster

quality assurance as well as build confidence with the sponsors. Furthermore, LEAP recognises

other contributors in a given context as well as attribution to other players long before the project

came on the scene. By that token, LEAP prefers to call “stake holders” as “partners” because

they are more than just interested parties watching by the terraces while the development process

evolves. Rather, they are active in one way or the other. In addition, LEAP is strong on the ITT,

implementation schedule (or Gantt chart) as well as the connection to the DIP (plus budget).

World Vision international is still refining this tool and can be found on the following site:

www.transformational-development.org

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However, like all other spheres of life, there have been changes in M & E circles that centre

around better qualitative programming. Below are some of the recent changes and discussion

points:

As hinted at earlier on, there is more talk about attribution and contribution by other

players in the contexts where projects operate. Hitherto, projects have claimed all the

accolades when they strike success without acknowledging other direct or indirect

contributors to that success. Instead of networking or collaborating, projects have tended

to compete and protect their “turf” when others have either been there before or after.

There is attribution at activity and output stages while contribution is at outcome and goal

levels for projects only contribute to something even if they seem to be the main players

at a given period.

Most significant change from Impact stories. As part of recording impact, projects write

impact stories at outcome and goal level but more and more there is thinking around the

fact that sometimes a small contribution can significantly change the life of an individual

or community. For instance, if a school plans to build an extra class room but lacks

sufficient cement. If a wealthy business man buys and donates cement pockets enabling

the class room to be completed in good time, then that is a seemingly small contribution

but has greatly impacted the lives of the local community. Smaller projects and

organisations excel at documenting such significant changes compared to the mammoth

big projects.

Whereas in the past, people have concentrated on “Monitoring and Evaluation” Current

thinking is questioning the correctness of this coined phrase with respect to project

management, as relates to the implementation stage. The thinking is that you cannot

actually and truly evaluate a project in a month or two while you implement but you

could monitor as you implement. Thus they would rather use the words “Monitoring and

Implementation” (M & I) as opposed to “M & E”. The debate continues though.

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As hinted at earlier, the LEAP approach now emphasises partnership rather than

stakeholders for the simple reason that the said stake holders are not idle but doing

something to contribute. The “stakeholder” concept, while good, is not entirely accurate

or representative.

There is also considerable debate in quality circles as relates to how best to manage

project and organisational quality. Some hold strongly that a specific department or wing

to look at quality must be established whose task will be to assure or control quality.

Some companies thus have ‘Quality assurance/control’ units, sometimes with a

directorate! Others strongly disagree with that approach and insist that quality must be

embedded within the system so that something is done once that guarantees success. This

view propagates the view that defects must be prevented rather than reacted to. That said,

we can safely say that quality is a hot topic nowadays unlike in the past and will continue

to be for decades, yea, centuries to come.

To be a success, certain key information must be known at project level. The points below

summarise some key points which, though seemingly simple may define success or failure.

a. Know and understand the donor/sponsor fairly well.

b. Know the donor/sponsor requirements and expectation. (I.e. cooperative agreements,

regulations etc).

c. Pace your project realistically.

d. Keep in touch with donor regularly (mutual feedback).

e. Anticipation and know who is who.

f. Get inside information before it is made public and position yourself well.

g. Polish your profile regularly and ensure a high quality job is done every time.

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h. Meticulously manage your financial affairs well. Ensure strong internal controls to

inspire confidence.

i. Encourage periodic internal & external audits such as operations audits.

In summing up on the project life cycle14, we can say that an ideal project goes through the

following stages:

1. Concept

2. Feasibility analysis (assessment)

3. Planning (design)

4. Execution (Implementation & monitoring)

5. Termination (Phase out, transition, close down or end, at times redesign)

Some projects do not have a defined concept stage but whatever the case some form of idea

(proposal) is floated to or received from potential sponsors before the actual work begins.

Thus, we have surveyed the project cycle landscape and must now come to a close. We have

seen that a project goes through different phases and has a definite start as well as close out date.

In between are various stages that must be managed well if the results are to be qualitative and

tangible for all to see. In the next unit, we proceed to consider some other aspects which foster

qualitative project management.

Case study 1

Chikondi Phiri-An upcoming leader

14 Refer to Stevenson, Production/Operations Management, pp760 for more detail on this.

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The interview at hand was carried out by Billy Sichone on 21 st September 2001. At the time of

the interview, the respondent, Mr. Chikondi Phiri, was the Area Development Program (ADP)

Manager for the Namuso ADP located 618 kilometres west of Lusaka. The said officer has been

in the area for three and a half years and has been at the helm of one of the most spectacular

transformations that have taken place in World Vision circles. Prior to his arrival, the program

was riddled with multiple problems such as a demotivated staff, continuous running inter

personal squabbles with the community and among staff themselves. At the interview time, he

was about to launch out to another higher challenge having successfully turned around the

mammoth program back to sanity. Mr. Phiri holds an MSc in Water Engineering and is currently

pursing an MBA with the Redeemer College, Canada.

Questions

1. Mr. Phiri, I notice that you have been at the Namuso ADP for some time,

could you briefly tell us about yourself?

I first came to the Western Province in 1996 as a project coordinator but shortly

became a Program Assistant. With the encouragement of my wife, we left to

pursue higher studies at the Morogoro University, Tanzania. Upon our return in

1998, we were again sent back to Mongu where I took up Management up to date

when I leave for the Southern Province.

2. Is this your first Program to Manage?

Yes. As earlier intimated, I was a Program Assistant until I returned from studies.

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3. What, in your own definition is Management?

Management is the art of getting things done through other people. This involves

control, directing and coordinating the implementation of activities to their

appointed ends.

4. What are some of the challenges you have faced whilst at Namuso?

I have faced multiple challenges during my tenure in literary every area especially

so that it was my first time to Manage a project. I found a diverse work force with

different goals and attitudes to work and out look to life. I had to fit in and then

meticulously turn the tide to the correct direction, having been charged by my

former National Director, Mr. Bwalya Melu. There was a lot of disorder at the

time but through consistent hard work and clear thinking, we have managed to

undo the mess and put Namuso ADP on the map. It has been a team effort all the

way through.

5. What is the workforce like at Namuso (Number of and type)?

Presently we have a workforce of 7 members of staff at the ADP office plus 15

others located in the Program catchment area. In my estimation, they are all

unique but focused towards one common goal, to which end they exert

themselves.

6. How have you managed to lead such a diverse workforce seeing that you took

over whilst young?

That hasn’t been a problem at all because I knew the source of my authority and

carefully studied that people I was going to work with. I was open minded and

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ready for any challenges so as to handle them, which, in effect is what

Management is about.

7. What was the situation like at Namuso when you first took office?

I found an emotionally torn project as they had just lost a Manager. Due to some

prior problems, the office was disorganised and not systematic with staff highly

demotivated and somewhat disillusioned. There were just too many unsettled

issues at the time which needed to be carefully and diligently attended to. As

though that were not bad enough, the ADP was in bad books with the support

office. Thus, the first year was largely spent on clearing the past wreckage. For

example, the community had no kind words for World Vision as they felt cheated

at the sudden phase out of three previous Community Development Projects

(CDP). This was the dark scenario in 1998.

8. What is the situation you leave now?

You wouldn’t believe it, but the face of the ADP has changed drastically as

people have a different view of World Vision. Our image has risen in the

following areas:

Integrity

Financial Discipline

Christian Image

Performance / Out put.

Almost all our key staff are Christians of high standing and do their best all the

times. They work as unto the Lord. We still have hurdles though but we are

certainly far much than before.

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2. What is the secret of your success?

I wouldn’t say I have a secret per se but I think I attribute all this to the teamwork

culture we have imbibed here. This has to do largely with the open management

that we have had and also being open and truthful to the community as well.

Consistency is very important when working with community.

3. What do you view as your most valuable assert in your work (people,

machines, money)?

People! I value my staff so much as each of them is uniquely structured to contribute to the

welfare of the organisation. As such, I ensure that each of them is treated well and each of case

treated as it comes. With the right people at the right places, we can achieve phenomenal results.

Unlike in the past where people were treated as things, I think if they are treated with the dignity

that they deserve, they will sustainably go a long way in doing good far above what I ask or

imagine. Other things are but mere things to advance our cause.

4. Are there still some Managers who do not value people?

Oh yes of course but thankfully, the attitude has changed tremendously in World Vision as the

ADP Managers have been trained through the ADP 2000 leadership initiative as well as the 2003

programs in South Africa. We are moving on to higher ground!

5. Would you classify your self as a leader or manager?

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I would classify my self as both though I think I am more being moulded into a servant leader

who facilitates rather then bosses around, despite the constant temptation to.

6. What is the difference between a manager and a leader?

A Manager is one who merely controls, directs and implements the goals of a said entity while a

leader is one who inspires others by being visionary while helping others along to achieve a

given goal. In other words, the leader is a coach, mentor and facilitator while a manager controls

the implementation of plans. Now I use the word “control” guardedly because some people do

not like the term because the connotation of dictatorial tendencies.

14. What, in your own words, are the qualities of a good leader?

The qualities of a good leader are that s/he is visionary and has the prowess to affect others

towards a goal willingly. The said person has a clear mind, listens to others, empathises, and

cares for the welfare of those s/he leads. Being a coach, the leaders possesses noble consistent

characteristic upon his/her chest such as integrity, honesty, humility, open mindedness,

willingness to learn and change, time for people, patience and a personal mission statement.

15. Obviously, you must have faced some challenges as a manager in this part of the

country, just how did you get round that hurdle?

As I said in an earlier in answer to a question, I am a foreigner while my staff all largely natives.

Naturally, but especially in Western province, there has been a prejudice against outsiders. I

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faced all that but I approached it positively and determined to prove my self over time. I think I

have been vindicated by and large.

16. You have a family I suppose, how then do you manager to cope since you are very busy

and travel extensively?

I am married to a wonderful wife, Anne with whom we have two sons. From the beginning of

our marriage, I have made sure that I have involved her in my work such that she knows what

goes on in the office, what I do and I even consult her on a number of issues. When we went for

studies, she was there with me as though she too was actually doing the course! I remember the

times when I would come home exhausted, she would read to me and help me to prepare for

exams! This trend has continued though there are times when I have to do certain things alone

when pressed with time. But at an appropriate time, she gets an update and then we continue.

This is the only way to balance things unlike a case where the wife has absolutely no idea what

in the World the husband is up to!

17. You strike me as some one who is analytical and strategic as well, how did develop those

skills, has your previous professional background have a hand in this?

Naturally, I like being clear minded and inquisitive, but this has been enhanced through training

and being coached by some people.

18. Talking about strategy, what, in your own words is strategy and how does it help you in

planning?

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A strategy is simply a plan to achieve a goal. In other words, you come up with an ultimate goal

and then ask the question, “How shall we get there?” There after, you proceed to map out a plan

and steps to achieve the goal. The route taken is the strategy. It is worth mentioning here that

today, there is more and more on strategic thinking rather than planning, I hope you know the

difference…

19. Would you classify yourself as a perfectionist, as we note that things that come out of

your hand are of the highest quality?

I wouldn’t claim that I am a perfectionist in the strictest sense but I must say that I like doing a

perfect job all the time. When I first took office at Namuso, I must confess that I had more of

those perfectionist tendencies. Obviously over time, I have learnt that we are at different levels

necessitating the need to be patient while working to sharpen people to the required standards.

20. In your view do you think that World Vision in its implementation minds quality in out

put? If not, how do you perceive that it could be improved?

If you looked at our reporting and way of doing things just over five years ago, you would notice

what great strides World Vision has made in the direction of improving quality. This is further

seen in the way people relate and do things in a team work kind of fashion. At the National

office, we have what is known as the Program Development and quality assurance department

(PDQA) whose main objectives is to largely ensure that reports and delivery systems in World

Vision are of the highest levels. The other thing that PDQA does is to ensure that they refine

project proposals from the various ADPs or indeed originate some themselves to source funding

for World Vision Zambia projects. In terms of improving the status, I would just say the road to

quality improvement is a never ending one, I think World Vision could improve by being open

and ready to change in these turbulent times.

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21. How have you ensured that your staff is motivated, give us some insights in this.

I have tried my level best to motivate people in various ways such as complementing them when

they do a good job, being patient and ready to work with them, giving awards and in some cases,

advocating for some people’s pay rise although I think money should not be the sole motivating

factor. Other ways have been to encourage my staff to go for short refresher courses that will add

to their CVs and build capacity in them. At other times, I have taken an interest in people’s lives

and visited them at home when ill or just to say “hello!” Mastering peoples’ names has also

helped things.

22. How do you handle people who are:

a. Younger than you?

b. Older than You?

c. Less educated?

I treat them all as equals, each unique, with something to offer. I am always conscious that I

can learn something from each of them. In addition, when they are treated well, they feel

motivated and will willingly do more. At other times, I have advocated their pay rise for example

though not diligently. I believe that money should not be the single motivating factor to work but

could be one of them. I would rather provide the best working environment.

23. What is your view of about training for staff? How often should that be?

I believe that training should be continuous and available to all without exception. We live in a

dynamic world with new challenges every day.

24. Do you think the budget should be a limiting factor for training of staff?

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I don’t think finance should be a limiting factor at all as training is essentially for quality results,

which pays back many times over.

25. What is your view about the World vision staff training policy? Do you think every one

is adequately catered for?

Potentially, the World Vision Zambia training policy is excellent only needing more funds.

Before I left for Tanzania, for example, there were absolutely no training opportunities but now

they are available for many disciplines relevant to the organisation.

We may not cover every body presently but we are getting there having made a start.

26. What are some of the ways that you have managed to make people aware of the aims

and objectives of World Vision in the Mongu Area?

We have had brochures done, been on the national and local radio, the National press as well as

through our community leaders who have done a marvellous job explaining who we are.

27. I suppose that World Vision is now talking about sustainable development, how have

you as a team ensured that this ethos is fostered and up held?

We firstly have had the task to uproot the previous mentality of handouts that the CDPs had

employed and replaced them with new ADP approaches. Having “disinfected” their minds we

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have gone further to work along side the community, letting them identify their needs and learn

to manage their own development. This has meant get them contribute something or offering

them things on loan. In the way, they have cared for and owned things lastingly. In other words,

we have taught them “to fish” rather then giving them fish. This has proved more sustainable.

28. World Vision is in the business of satisfying customers as well, who exactly are your

customers? How do you ensure you satisfy them?

Our customers are the Donors whom we seek to continuously satisfy by providing timely and

appropriate information at all times. In a way, the children, whom World Vision assists are also

our customers. At all costs, the Donors must be satisfied or else World Vision risks losing

support.

29. In your own words, what is teamwork and what is the place of it in World Vision?

Teamwork is simply working together across functional barriers to achieve goals. This means

working as an organism where there is a free flow of ideas, information and methods of best

practice. Unlike in the past, where people restricted themselves to their department, the modern

office demands a matrix approach to issues so as to reap the maximum benefits from each

person. This approach, akin to a football team is very profitable.

30. What are the goals of teamwork?

In my view, teamwork ultimately seeks to improve the product quality in a conducive enabling

environment. In other words, team work improve and increases out put as people to achieve a

goal as opposed when they work as “Islands”

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31. Can you cite an example where teamwork has been practiced or attempted in the

World Vision partnership. What has been the result. Do you see this taking root in the

organisation?

In 1999/2000, World Vision adopted the teamwork approach having noticed its benefits. Thus,

the country was divided into regions with each region having a leader. These regions had a

rotational leadership as each region was composed of many projects. This went on for some time

but seems not to have worked much probably for a number of reasons. In my thinking, one of the

main reasons was that we were not ready for the change and needed to be oriented much more,

having all along been accustomed to an independent approach to work. There could be some

regions still working as a team but by and large, we have informal ties where we consult each

other freely as we meet in conferences or call each other on phone. It has helped tremendously.

Having said the above, I think teamwork is the right way to go and as more people see the

benefits, I have no doubt that we shall move forward.

32. At ADP level do you see any teamwork?

Oh yes! In fact that has been one of the greatest sources of my elation that I have witnessed

whilst I was at the Namuso ADP. As I leave, I just marvel how people love their jobs and would

willingly put in their best to achieve a goal. They work over and above to be reminded that they

must go home to rest otherwise they would go on and on! People are focused and freely

intermingle to share ideas and also to take over each others’ functions where need be. This

emanates from the fact that people now take interests in each others’ domains as opposed to the

past where they were content to remain within the confines of their departmental walls. For

example, almost all our staff are studying, are all computer literate from the office attendant

upwards and have all acted as Managers before, (with the exception of the office attendant) and

each of them, though initially surprised have all performed extremely well. This has booted out

put, innovation, creativity and motivation in staff. This is simply marvellous! With respect to

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other ADP s, I have no telling exactly where they are, but I have reason to believe that they too

are on the way to teamwork.

33. How has it been developed?

I think it is because of the approach that has been employed where as manager I have taken time

to study each member’s strengths, and ensured that I use them in the right places without the

team members themselves knowing it. I have looked at Namuso as a football team with different

players who can play certain numbers. In that way, as coach, I have strategically put each person

in the best place. This has meant that I have taken the back role as a teacher, facilitator and

coach, ready to give support when needed. In the past I had perfectionist tendencies and wanted

to be bossy but over time, I have seen that it is more profitable to be there to guide and empower

people to do the right thing sustainable. It has been so gratifying to see the team members

attempt new things, be creative and consult among themselves without my direct involvement.

Now at Namuso, I do not worry about reports for example, because each department will do its

job diligently and timorously.

34. What are some of the benefits you have observed during the build up of the same?

The benefits are many as can be seen from what I have mentioned in the last two questions. Just

to mention them again, there has been an improvement in the quality and timeliness of reports.

There has been a marked improvement in the trust for each other and an appreciation of each

other’s function. This has led to a situation where work will not be stalled or slowed down by the

absence of any team member because others will quickly take over and over lap to cover up. By

and large, we are achieving more result than at any time ever.

35. What are some of the challenges/hurdles you faced on your journey towards team build

up of the same?

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As in any process, I have faced many challenges. The first is the diagnosis of the problem as I

found a demotivated and disillusioned work force that specialised in finger pointing. This was

not only at the ADP office but from the community as well. The second was the process of

getting people focussed without any prejudice as well as getting the right resources to foster the

goals to team building. The third has been getting the cohesive and having people discard the

mistrust they had of management especially so that I was not a native of the place. The fourth

was to get people analytical and think systematically. Thankfully, the staff responded very well

and slowly begun to find their feet in this new setting. Culture change is hard and takes time. It

has taught me to be patient, humble and to lead from the back seat. We still encounter problems

but I am glad to say that we are above the fundamental problems at this stage.

36. How do you arrive at a decision, which ultimately affects every at the ADP?

I make the final decision ultimately in any case but I make sure I get as much input from staff on

many issues. In the past I would make the decisions and pass them down but now, I consult all

the time and get the mind of the staff. Some times, I do not have to make the decision because

the staff discuss it and come up with the answer! This has been amazingly true time and time

again. At the end of each decision, every body feels heard, valued and thus owns the goal.

37. Do you ever have brainstorming sessions? How helpful have they been?

Every morning, we hold an updating meeting after the morning devotions. This helps us to

keep focused. It is during those meetings (about 30 minutes each day) that issues are brought

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to the fore discussion and debate. At first, people were reluctant to air their views for fear of

being misunderstood or making a mistake but now there is liberty. We allow people to bring

in all their ideas, including the crazy ones and then we begin to analyse and discount them

one by one. In the end, we arrive at a decision that satisfies every one to the extent that no

one has the audacity to claim that they had no hand in the decision. In that way, people will

go full throttle to support the decision. To answer your question, we do have brainstorming

sessions depending on the situation.

38. I notice that you are quite apt to handle Information Technology (IT) problems and

that your staff are generally computer literate, how have you arrived at this stage

(your staff trained as well as yourself)

When I took office, I noticed that there was a high dependence on the Admin assistant for every

piece of typing. As such, there was always a queue of people waiting to be attended to leading to

great inefficiency. I noted that if all were trained and had access to computers, they could each

type their own work and thus increase productivity. Being a firm believer in IT knowledge, I

determined to get as many computers as possible for all to use. Besides, this is an information

age where one cannot afford to be computer sills deficient. Therefore, we have slowly passed on

information to each other over time. I was first exposed to the computer in 1994 and have made

every effort to learn and master the operations of a computer and thus pass on knowledge to

others.

39. What is the best way to train/coach some one?

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I think the best way, which I have found effective, is to first teach them the principles and

then let them attempt something. When they get stuck, you can then come in to help. You

must ensure that you are open, patient, approachable and reliable. You must be ready to help

at any time and not seen to despise your student. In that way, your friendship will grow and

go beyond that particular problem but to other lawful areas of the work life. People must look

up to you as a facilitator not as a “know it all” kind of person who bashes everyone else when

they make a mistake.

40. You seem to be widely exposed, could briefly tell us about your travels abroad?

What have you learnt?

I have not travelled much per se but I see myself to be on the road more often hereafter. So

far, I have been to Tanzania, Zimbabwe, South Africa (Several times) and Canada. I have

learnt just how different people look at the same thing in different ways. In some cases I have

been stunned but have adapted. This has been a major paradigm shift for me and has thus

helped me to fit in appropriately in different circumstances while managing a culturally

diverse workforce. The other thing that has helped me is reading widely all the time. I am the

curious sort.

41. In your quest for excellence, who do you perceive as your mentor (s) and why?

I have mentors quite alright but the greatest motivator in my life is my dear wife Anne. She

has always given me unwavering support and valuable advice that has proved accurate. There

are many times I have felt frustrated but in her own unique soft way prodded me on to greater

heights of excellence. As such, I would say that she has been by far the greatest motivator. In

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terms of work performance, two men stand out as having left an indelible mark on my life.

The first is Mr. Stephen Tembo who exposed me to the computer and consistently lived the

Christian life while I lodged with him for two years. The other is Mr. Mapanza Nwilimba

from the World Vision National Office. He has always inspired me as a good, patient and

consistent teacher. Despite being very strict, he is unmatched as a coach. Both these men are

leaders par excellence in that they are resilient, patient, consistent, objective and focused in

life.

42. Kindly give us some titles that you recommend and why?

I have many titles to hand but I respect Green’s Servant leadership, Covey’s 7 habits as well

as principle centred leadership. I also enjoy reading periodicals such as Executive Excellence

that has fine articles that are pragmatically down to earth.

43. As we draw to a close, what are your future goals and what is your advice to those

that are aspiring to be motivational leaders in coming days?

My chief goal is to go as high as possible in my work to do as much as I can while I have

breathe. In doing this, I will be serving my Master, the Lord Jesus Christ who has safely led

me hitherto! As for those aspiring for higher challenges, I would advise them to work hard,

especially on their studies. I would urge them to study, study, study and get that paper!

Thank you for the interview Mr. Phiri and I wish you well in days that lie yet future.

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You are welcome.

End

Case study questions

What has distinguished Chikondi Phiri in his career?

What is the secret of his success in management?

Do you think Chikondi is a leader? Substantiate your answer.

What is the place of quality in World Vision Zambia?

Are mentors relevant today? Explain your answer giving one mentor you have, if any. What

inspires you about them?

What place does your spouse occupy in your busy schedules?

Explain the role of team work as relates to project quality and efficiency.

How relevant is IT to project quality?

Case study 2

Go to the following site and read the case and then answer the case study questions:

http://www.cnn.com/2009/US/03/27/no.freedom.tower/index.html

Case study questions

What are your general observations about this case?

Is this a project? If so explain why.

How sensitive is this project? Give sensitive points that you sense.

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Find a similar contemporary case study that has similar challenges.

Do you think this project is achievable in the given time frame? What are some of the inputs you

would expect?

How does the change of name to the building affect business? Explain why.

Revision exercise

Describe and explain the project life cycle

What is the log frame approach and a log frame?

Why is the log frame very important to project management?

What are internal controls and mention one such internal control?

What is cash flow management and how relevant is it in project management?

When is an evaluation meaningful in the project cycle?

What is DME?

What is the importance of Monitoring?

Explain three things that a log frame achieves and its merit?

Give any alternatives to the log frame approach.

Give the hierarchy of objectives in a 4X4 matrix (logframe)

What is an assumption? What about a “Killer assumption”? Why is it thus coined (“Killer”)?

Give some qualities of a competent Project Manager.

What is the role of the sponsor in project management?

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List some of the challenges faced by projects and how they can be overcome.

Distinguish between Source of verification and means of verification.

Who supervises the M & E officer and why? What is the role of the M & E officer?

How different is the M & E officer from an internal auditor?

What are the merits of an operations audit over a financial audit?

Why don’t monthly management reports qualify to be a source of verification?

What is meant by the statement “A goal must be SMART”?

What is a data base?

What is the role of an M & E plan as well as an ITT?

Bibliography.............................The Leadership Deception................................

Baker Larry & Douglass Merril, Time Mastery Profile: How to manage your time more

effectively, carslson Learning Comapny, 1992

Blanchard Ken & Muchnick Marc, The Leadership Pill: The missing ingredient in motivating

people today, Free Press, 2003

Brake Terence, Managing Globally, Dorling Kindersley, 2002

Burnes Bernard, Managing for Change, FT Prentice Hall, 4th edition, FT Prentice Hall, 2004

Buttrick Robert, The interactive Project workout, 2nd edition, Pearson Education, Pearson

Education, 2000

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Covey R Stephen, Principle Centred Leadership, Simon & Schuster, 1991

Covey Stephen, The Seven Habits Of Highly Effective People, Simon & Schuster

CSO, Zambia in figure 2003/2004, GRZ (www.zamstats.gov.zm)

Davies Anthony, Managing for Change, ITDG publishing, 1997

Heller Robert, Effective Leadership, Dorling Kindersley, 1999

Heller Robert, Managing Teams, Dorling Kindersley, 1998

Kinicki & Kreitner, Organisational Behaviour, 4th edition, IRWIN/McGraw-Hill, 1998

Kotler Philip & keller Kevin Lane, Marketing Management, 13th edition, Pearson/Prentice hall,

2009

Kouzes James & Posner Barry, The Leadership Challenge..................

Maylor Harvey, Project Management, 3rd edition, Pearson education, 2003

Patton Quinn Michael, Qualitative Research & Evaluation Methods, 3rd edition, Sage

Publications, 2002

Poltorzycki Stephen, Creating Environmental Business Value: Achieving two shades of green,

Financial World, 2001

Schroeder G Roger, Operations management: Contemporary concepts and cases, 4th edition,

McGraw Hill, 2008

Stevenson J William, Production/operations Management, IRWIN, 5th edition, 1996

Zikmund G William, Exploring Marketing Research, Thomson South Western, 2003

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Unit 5

Aim

The aim of this unit is to appraise students with Human Resource Management (HRM) as well as

help them differentiate HRM from Personnel Management (PM) in recent trends.

Objectives

By the end of this Unit, the student should:

a. Define Human Resources management

b. Understand what HRM is at project level

c. Understand why a motivated staff cadre is key to project success

Over view of contemporary practice and recent changes in Human Resources Management

“People are the most important resource in all business and government endeavours” Yoder &

Staudohar15

Project management goes through many cycles and seasons and thus needs to have the right

structure and resources. Behind every successful entity is a diligent staff cadre that usually

devote themselves to achieving their objectives in a given time frame as well as indirectly lobby

15 Yoder Dale & Staudohar D Paul, Personnel Management & Industrial relations, 7th edition, Prentice Hall of India, 1986 pp5

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further support from would be sponsors. A high profile successful project leads to greater

opportunities and responsibilities. As such, evaluators are curious to find out about the success

factors and ingredients that contributed to scoring. One area that will never miss out in that

analysis is the issue of what type of staff were on the winning team. The question asked is:

“What made them tick where myriad others failed”? What was their secret? In this unit and the

next, we explore this critical function of Human Resource management as a component

contributing to a quality project and in some cases, programs.

Without doubt, the quality of staff the project employs will definitely have a bearing on the

outputs and ultimately outcomes of the project although some argue that outcome is beyond

control. Once the project has the right blend of star team playing performers, the project is nearly

guaranteed to succeed though sadly this rarely happens. The question that perhaps begs

answering is why? Why should one project succeed while the other in the neighbourhood

lamentably fails? These and many questions will be touched on in the present unit. We

commence an examination of this unit by giving some preliminary statements and then later

delve into some definitions and explanations.

Preliminary statements

1. Projects succeed or fail depending on the quality of staff on the project team

2. The human resource component should be treated with meticulous due care throughout the

project life.

3. Continuous staff motivation is key for staff retention

4. Continuous training enabling staff acquire fresh skills set is critical at all times.

5. Investing in staff development is not a waste of resources.

6. Inept staff should be laid off but keep work as professional and objective as possible.

7. Staff performance must be documented and referred to during appraisal time.

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8. A High staff turnover signifies a problem somewhere.

9. Focus on the process and systems rather than on individuals.

10. A team work culture is the best and enables everyone to achieve more. Synergy usually

results.

11. There is diversity in the team and not all staff members are the same or perceive things the

same way.

Having made the preliminary statements, we now progress to consider the definitions so that we

are on the same page before we delve into other equally critical matters related to qualitative

human resources management.

DefinitionsIn this discourse, various words are used some times interchangeably but for the sake of clarity

in this unit, we shall confine ourselves to the correct usage of terms. For instance, the term

‘Human Resource’ is used synonymously with ‘Personnel Management’ or ‘People

Management’. We have avoided this mix up by defining each of them as well as to some extent

differentiating them.

To kick start our definition, we define Human Resource Management (HRM) itself and then later

look at the other two.

Various authors have defined HRM variously while others have not given a definition at all but

simply described it as distinguished from other terms. For instance, the Wikipedia website has

defined it as “Human Resource Management (HRM) is the strategic and coherent approach to

the management of an organisation's most valued assets- the people working there who

individually and collectively contribute to the achievement of the objectives of the business.”

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Another authority (Cherrington), has not really defined it but has described it. The writer has this

to say: “Human Resource Management is responsible for how people are treated in

organizations. It is responsible for bringing people into the organization, helping them perform

their work, compensating them for their labours, and solving problems that arise"

As earlier intimated, HRM is defined variously by different authors and practitioners. Many use

the words “Personnel Management” and “Human Resources Management” interchangeably but

strictly speaking, these are different as we shall see later. For now, we focus on HRM

definitions:

Definition of contemporary HRMAs earlier intimated, many have undertaken to define HRM but below is one contemporary

definitions:

“HRM is that function of general Management that ensures the recruitment, retention, motivation

and empowering of the right people in the organisation enabling the entity achieve its goals in

the most cost effective and efficient manner” (Billy Sichone 2009)

From this definition, several points are highlighted that constitute this lay definition. We isolate

the following:

a. Recruiting: Recruiting carries the connotation of attracting people or getting their

interest and attention to something you are doing or offering. In this case, the entity

advertises to the whole world seeking interested individuals express interest and

subsequently to apply so that they can be considered for the offer. The recruitment

process itself is not the hiring but the first stage to that which is followed by a short

listing/selection for interview, the interview itself and picking the best candidate

according to laid down standards and then offering them the job. Should they consent,

then a contract is signed by both parties and the person comes on board. Therefore, it

is the duty of the HR department to analyse the staff needs and look out for the best

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talent possible on the market. The project manager must be aware of the needs at all

times and plan to attract the best talent and team players.

b. Staff retention: Having hired the right staff and brought them on board, the battle is

far from over, these people must be kept interested in the job in the company as much

as possible throughout the contract tenure. To do this, the HRD ensures that each

person on board is kept as happy as possible with the limited resources available and

will endeavour to do every and anything to minimize the staff turnover or attrition for

this has implications on the corporate/project image, achievement rate, quality and

motivation. Thus, the project manager should do more than just hiring but keeping

staff interested long enough until the work is done.

c. Motivation: Closely connected to point (b) above, the HR must make the environment

not only conducive but one in which staff will desire to voluntarily work as long in

the process achieving the personal goals and objectives. Each person has their unique

personal goals and will do everything possible to get what they want regardless of

where this may be found, as long as it is lawful. If a competitor company or indeed

project offers better conditions of service, working environment or culture, naturally,

people will gravitate to that place and offer their best skills there. As earlier intimated,

motivation has to do with inspiring people’s inner resources to voluntarily keep on

working or doing something in a specified direction. Staff motivation methods take

different forms such as high net pay, capacity building/training, loans, work culture &

environment, leadership style among many.

d. Empowering: This is a broad term but in a nutshell connotes giving power to staff so

that they stand on their own during and after employment tenure. Whilst in

employment, they must be equipped with the necessary skills and knowledge so that

they continuously competently do a good job on their given tasks and assignments.

Staff feel secure and good if they are allowed to try out new ways of doing things or

given lee way to make decisions that they perceive important and appreciated for

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their effort(s) and innovation. In that way, they not only learn new things but gain

confidence in what they are doing. Every employee however has an eye towards life

after contract and spend considerable amount of time and energy preparing for the

rainy day ahead. This affects their performance. Thus, if an employer empowers them

to acquire competitive skills or “layup treasure” upon which to lean beyond formal

employment, they will certainly put in their best. The project manager then must be

interested not only in work related matters but beyond-how his or her staff are

preparing their exit strategies.

e. Succession planning: Attrition is a fact of life which none of us can successfully

evade. One way or the other, we all shall leave our current jobs by either death or

quitting getting another. This invariably means that a gap will be created where we

now sit but the job will still need to be done, regardless of our state. To forestall this,

the HR must strategically position a pool of staff that are potentially competently able

to take over once a person leaves. This calls for clear strategic and long range

thinking. Unfortunately, for some reason, even the most sophisticated organisations

have succession problems and wrangles. That said, others have very few problems

and will have been grooming a set of people or individuals way off to take on a

function once any one leaves. There is a cost however to this but it is far cheaper to

prepare for such an eventuality than not to. Recently, World Vision International

selected a new International President (Mr Jenkins) that succeeds the venerable Dean

Hirsh, but only takes over the mantle on October 1, 2009. In the interim, there is hand

over period of over six months but the selection process started over two years before

2009! Managers must think about these things and plan even for their own exit. I

know this is a touchy subject but must be done none the less.

Evidently from the foregoing, we can safely assert and conclude that HRM focuses more on

capacity building ensuring that the right staff cadre is kept on board to reach the desired

corporate objectives and goals.

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Strategic place/importance of HRM in project managementHuman Resource is an important function that cannot be ignored anymore. From a back yard

department to the forefront, HR demands that people be viewed as the most valuable asset that

the organisation has far above fixed or current assets. Some projects valuable vehicles above

staff and the first question they ask after a project vehicle accident is the condition of the car!

Their mind is more on pleasing the donor and how to explain but you will be surprised to learn

that sometimes sponsors are more interested in staff welfare than the machines. A vehicle can be

replaced not life. That is in no way encouraging carelessness with assets! That said HR is of

prime importance today in all entities because of its strategic connotations and implications.

Below we tabulate some of the reasons why we consider HR very important:

1. HR ensures staff retention and motivation.

Although staff cannot entirely be prevented from tendering in their resignation letters, they can

unwittingly be delayed or discouraged to by the way HR courteously treats them or attaches

importance to them. If HR is on hand all the time and ready to listen, people will be reluctant to

quit unless some very serious matter forces them to. It has been documented that money is not

the only motivator and thus, other non-monetary incentives can be strategically used and

exploited to achieve the desired goal. HR and apt managers have a hidden power to delay or

hinder staff departure if they have connected well with people. A bad HR practice as was at the

Quest (case study) definitely is a recipe for disaster and high staff turnover.

2. With correct HR input, efficiency and cost effectiveness is achieved.

Cost effectiveness and efficiency are the cries of many projects and institutions. Despite planning

and widely consulting before and undertaking is implemented, there is always “Murphy’s law”

along the way to disrupt things at the critical hour. In one breathe, everyone on the team is all

fired up and excited to do a task but in the next, everyone has quit and gone elsewhere creating a

gap in project implementation. HR comes in here to mitigate the impact of this staff attrition by

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ensuring that new staff quickly get into the vacant positions and continue flying the plane.

Eventually, this cuts down on costs, delays and enhances efficiency and effectiveness.

3. Ensures continuity as succession is taken care of.

As earlier alluded, it is important for any entity to acknowledge the reality of staff attrition in

various forms and prepare accordingly to avoid needless shocks and panic in future. HR plays

that strategic role of anticipating changes as well as developing a pool of potential successors so

that work does not stall. The Zambian Government used to be very good at this years go and

even had a specific department (Directorate of Manpower Development and training, DMDT)

whose primary function was to train and prepare staff for better service in future. Thus, the

Government rarely had staff gaps in the respective establishments. Some NGOs are also good at

that though very few and far between. That said, HR and project managers play this strategic role

of ensuring continuity.

4. Enriches jobs thereby improving staff retention.

Job analysis and enrichment continuously takes place in the organisation with a view to refine or

improve on the job richness that people do. If someone has been doing the same old procedure

for ten years, they eventually lose interest or concentration. In other cases, they turn into

“corporate terrorists” as they suffer from the founders’ syndrome or simply are frustrated. This

happens when new junior staff come into the project and soon surpass them rising to the top in

record time. To mitigate this and avoid other ramifications of a boring job or procedure, HR

explores ways to enrich jobs as well as ways of motivating staff such as added responsibility or

even reducing the present work load. Various tools are used to do this but Boydell has done

much work in that area worth consulting. To some extent then, the HR department and project

Manager must have the ability to tell and recommend appropriate changes periodically consistent

with the changes in the environment.

5. Builds and empowers people beyond the organisation.

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Professional HR practice aims at improving and empowering the softer qualities of a person so

that while they serve and after they leave the organisation, they will be far better than when they

first took up the appointment. In other words, HR turns blunt wood pierces into swords that

achieve far much more. It is said of John Calvin of Geneva (1509-1564) that people would come

to him for instruction as blunt tools but return to their countries as sharp spears! That is what any

HR practitioner or Project Manager should aim for. A project life is usually short and in that

time, the project staff must achieve both the project and personal goals and this hinges on

strategic leadership.

Some recent changes: From ‘Personnel management’ to ‘HRM’ to ‘People

and culture’

Consistent with the rapidly mutating way of the world, HRM has had different faces, emphasis

seasons and attention over a long period of time. From being an insignificant, non essential

discipline, the trends have been changing consistent with the way people perceive HRM. Grobler

et al16 attest to this assertion in their book “Human Resource Management in South Africa” as

follows: “Modern Human Resource (HR) is radically different from Personnel Management of

decades ago.” Among those that helped to change this perception is the venerable Peter Drucker

who held and taught that people were the most valuable asset of any organisation rather that a

drain to the pocket. If that is so, then it means that they (people) need to be treated well,

motivated and appreciated by way of good conditions, remuneration, reward and positioning.

Lately, however, as a result of the changing perceptions of this function, the HRM has been

termed variously. At first, it did not exist as a department probably because it was not considered

critical or assumed all human concerns were automatically taken care of once one got employed.

With time, it would appear that departments were set up and came under the umbrella of

“Personnel Management” which largely focused on hiring as well as firing. Again, as times

changed, Personnel Management encompassed aspects of motivating, capacity building, training,

succession planning among many things rendering the term “Personnel Management” inadequate

16 Grobler Pieter et al, Human Resource Management in South Africa, 3rd Edition, Thomson, 2006, pp2

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to denote all those aspects in capsule form. The term “Human Resources Management” ascended

to the throne and has been there for some time. However, as business took on an international

dimension, the term “People and Culture” is increasingly taking its rounds. This later

development encompasses people management, cross cultural mixed staffing, self managing and

virtual teams among many. We have no telling where this leads us next.

However, it is prudent for us to briefly give a definition of “Personnel Management” so that we

appreciate its distinction from HRM. Here is a makeshift definition:

“Personnel Management (PM) is that function of people management that focuses on the

logistical well being of staff enabling the organisation to reach its goals. This includes hiring,

firing, payroll, advances, staff loans among many” (Billy Sichone 2009)

This definition once broken down touches on:

a. Logistical staff well being. In as much as HR is concerned about such matters with

respect to motivation and retention, PM is equally concerned about the staff’s wellbeing

in areas that have to do with their logistical affairs such as office, appointment

letter/contract, settling, policy documents and whatever support a staff initially needs to

know or have when they newly enter, stay and leave the organisation.

b. Hiring. Many people think the sole function of the Personnel department is to “hire and

fire”! In a sense they are correct but not entirely because there is far much more that PM

involves. However, for this point we can safely assert that once the right people have

been recruited, the personnel department ensures these are interviewed, selected and

hired for the job on offer. This hiring involves drafting an offer letter to the would-be

staff member. In this regard, at project level, the Manager functions both as HRM and

PM both in one unless the project or program is large scale needing a specific staff to

handle those aspects. It is none the less critical for authorities to be abreast with what the

times demand.

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c. Firing. This is the sad and most painful part of the PM function, parting and tearing away

from colleagues you have worked with. If for some reason it becomes necessary to part

Company with a particular individual, the Personnel department has that duty to execute

what has been decided. Some time ago, a colleague of mine was instantly fired for

misconduct and the people that dealt with this matter were the Personnel Manager who

did it with great pain but had no option. Therefore, once a person steps on the wrong end

of the stick, yea, crosses the line, the Personnel department will be on hand to usher them

out! What a task!!!

d. Loans. As often happens, we all get hard up and broke once in a while. The only

alternative we have at such times perhaps is the organisational coffers and depending on

the organisational policy on loans, the Personnel department will again rise to the

occasion and give the exact position whether it is possible or not.

e. Advances. Closely connected to loans are advances which are technically very short term

loans. In a sense what a person does when they apply for an advance is to request a pre

payment before the stipulated right time arrives. This means when the right time arrives,

the person does not get their dues although they must work for what they got. The project

manager, with the help of the finance person must be well versed in these matters and

keep a tab on this one as it is sometimes abused. Some organisation however does not

permit advances for various legitimate reasons. Once again, the Personnel department

will be on hand to assist on this matter.

f. Leave. Keeping track of the accumulated days per employee may be a difficult task for

some but the personnel department keeps all these records and advise how many days one

has accumulated as well as processes requests that reach the office. Leave may be of

various types such as compassionate, study, local and annual among many. In each case,

the applicant fills in a form which is processed and approved accordingly, and leave pay

effected if allowable and relevant. At project level, the manager is the goal owner and

ensures the correct thing is done all the time.

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g. Health matters. Although HR deals with this aspect as well but PM ensures that staff are

in good health at all times so that they maximise their output. In addition, the personnel

department ensures that an appropriate health facility is accessible to staff at all times. In

some progressive organisations, staff and immediate biological family are catered for as

well. The project must rise to the occasion in the event their staff fall ill or have been

injured in the course or duty assuming they are still in employment.

h. Policy issues. As earlier hinted at, once staff initially step into the organisation, they are

blank except for the little research they have done on the said organisation. They come

with their own baggage, set of practices and expectations. It is the duty therefore of the

Personnel department to immediately hand critical necessary documents to such an one

so that they quickly peruse through, understand and know what to do while the iron is

still hot. Technically though, the HR department deals with this aspect but it is important

to make sure the organisational policies are on hand as soon as someone comes on board.

This entails a deep knowledge and appreciation of the extant policies by those that would

administer them. For instance, the project manager or personnel manager must have the

correct interpretation of whatever is contained in the policy document.

There are many other areas that our definition of PM touches on or does not that we leave for the

HR gurus to deal with in detail. Suffice it to say that HR and PM are different in focus and

approach although they merge as well as overlap in more areas than differ.

That said, we need to realise that we are operating in a fast mutating and dynamic world. Things

are changing all the time and so should our techniques in managing people. To give snap shot of

what we allude to, we give a brief description of some relevant current subjects in a global

economy especially for those international project workers. These are relevant for both the local

and international scene and worth musing over.

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International Human Resources management in perspectiveIn many senses, International Human Resource Management (IHRM) is pretty much the same as

the regular localized HRM that we are all accustomed to except that several parameters change

as we add the international dimension. One of the first culture shocks one encounters on the

international scene is the amount of relativity and just how people perceive the same thing

differently. As an international project Manager, you have to be armed with the right credentials

and traits to handle this relativity and to some extent, the uncertainty that goes with an

international assignment. In discussing IHRM, we cannot avoid the following points:

a. Third country employees: These are staff from a country other than the country of project

origin where the project originates nor indigenous to the work area. For instance, a US project

operates in Zambia but hires a project manager from Mali. This entails that they are expatriates

much like those from the country where the project originates.

b. Indigenous employees: These are local staff hired to work with a project of international

origin. These are treated as local staff rather than expatriates. These are far much easier to handle

for the indigenous HR practitioner because they easily connect and able to read the cues,

understand the values as well as perceive things in similar light.

c. Country of project origin employees: these are staff sent from the country where the project

originates with a view to either give technical advice or simply to get employed and in the

process acquire experience. These too are usually on expatriate conditions of service since they

have left the comfort of their home countries to work away from family and friends.

The above staff cadre will usually be interwoven in one multicultural team, each of them with

their own peculiar demands, work cultures, preferences and desires. The project manager cannot

escape the group dynamics that are generated by staff from different backgrounds and

orientations.

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For a fuller treatment of this section, refer to Schuler et al whose book is solely devoted to

IHRM. You could also refer to my book, “The Strategic Horizon” which has a larger and deeper

treatment of this section.

That said, we can safely say that international project management is here to stay and its high

time people started considering international assignments.

The virtual organisation and HRM

With the advent of the borderless virtual organisation, there is need to change the way we handle

HR matters. In the past, same location projects and teams could easily interact and get immediate

feedback about many matters but there is need for a complete paradigm shift in the mind of HR

practitioners. Whereas in a regular project, the manager could easily make decisions that would

easily be consented to or respected by subordinates and colleagues, the multinational virtual team

may have a different face and that for good reasons such as:

a. Time differences

b. Cultural differences

d. Different perceptions and orientations.

e. Communication challenges

f. Different expectations and interpretation of policy.

The virtual team dynamics are largely different from the regular teams as people cannot see each

other and somehow read expressions from each others’ behaviour. Granted, gestures also differ

but if they are in the same place, they can easily ask and correct the situation immediately unlike

in cyber space.

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With respect to practice, the HR practitioner must come armed with the necessary attributes to

handle the relativity that comes about with crossing time zones and cultures. For instance, is a

North American agrees with an African project colleague to meet on skype at 14 hours GMT for

a chat, the American must factor in an allowance of technological glitches, time delays and all

sorts of things that might come in the way. When they do finally get to communicate, the

American wants to go straight to business while his/her colleague wants to greet and find out

how things are at home! These and many other issues must be carefully managed in a virtual

environment. If the virtual organisation has staff scattered all over the globe, then there is need

for an extra effort to ensure people are on the same page and are responsible individuals of a self

managing team. In addition, the virtual team entails there should be mutual trust, accountability

and consistencies by all parties on board the organisation lest all things fall into disarray. That

said, there is no escaping this virtual organisation with all its challenges, the best we can do is to

position ourselves and brace for the challenges ahead.

Generation mix issue

Increasingly, the differences between generations are becoming apparent as people from

different eras meet and have to work together. The older folk seem to appreciate reverting to

rules and regulations as they work while the newer and younger generation would like to get

things as quickly as possible without much ado, many times disregarding policy or rules, which

they perceive as needless red tape and bureaucracy. When these two groups are on the same

team, expect some sparks initially but as the team members mature and accommodate each other,

expect a mutual learning experience, assuming each party is ready to learn from the other.

Increasingly, modern writers have recognised this matter and write about it. Their view, unlike

the older folk, is that as cultures collide and generations mix in one pot, perceptions invariably

will differ. This challenge is therefore worth approaching positively and managing well. The

author once worked in a program where the Manager was from an older generation while the rest

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of the younger team mates were from another age. There was often drama in the office until both

sides begun to appreciate each other’s perceptions.

Hiring for tomorrow

In the light of the rapid changes constantly taking place all the time, there is need also to alter

some time honoured practices such as how people are recruited as well as what to look for in a

potential candidate. The Manager recruiting staff and desiring to constitute a working team must

look far beyond the regular things that employers look for such as academic credentials,

experience and whether they are malleable or teachable. In as much as these traits are good,

essential and important, there is need to do far much more home work in arriving at the best staff

profile to work in projects of the 21st century. We suggest some things potential project managers

or employers should look out for in the potential team members.

1. Technologically apt and proficient. This means staff must be at home in a hi tech environment

where computers, machines and all modern gadgets are the norm and used as tools rather than

status symbol issues.

2. Team playing skills. Staff must be self motivated, responsible and proactive in their team

playing role. They should aim for collective good and success rather than individual brilliance,

although this has a place in the right context.

3. Exposure, preferably international. The world is getting smaller as globalisation makes inroads

into our world. Relativity is increasingly the norm as we head towards homogeneity of tastes and

perceptions. In the interim, our sharp differences remain and must be meticulously managed for

the team’s good.

4. Flexibility and ability to learn new skills set. In the past, our forefathers survived with one

skill set throughout life but things are changing and have changed. Staff need to constantly

acquire and appropriate a fresh skills set all the time so that they remain relevant and useful.

Rigidity and one track mindedness is the sure way to fall over the career precipice.

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5. Ability to work in the virtual organisation as well as the paperless office. In the past, offices

were filled with all sorts of paper work, red tape, bureaucracy and various policies such as the

dress code, corporate layers and the rest of it but things have drastically changed and so must the

employee of the future.

6. Goal and task oriented. This staff cadre must work on tasks in a given time frame with a view

to reach the goal in the shortest possible and most cost effective manner. Once they put their

hand to the plough, there is no looking back, as it were. Until the task is done, they will not rest,

given the time constraints in the click generation.

Bruce Tulgan, Carolyn A Martin, Richard Bellingham, Gary Salton, Terry Fitzwater and others

have done some extensive work on this matter and their books17 published by the Jaico

Publishing house is worth your perusal.

Recruiting and retaining the best talent

Today’s highly competitive world demands the best talent on board. To recruit and retain them

on your staff team is one of the most difficult challenges an HR practitioner faces. This is for a

good reason: People are looking for value for money, regardless of where they can get a good

job. It does not matter whether they are at home or abroad, if the skill set is relevant and equal to

the task, with demonstratable evidence to buttress their cause, then they are in business for as

long as they are useful and add value to the world. By definition, recruiting carries the

connotation of attracting the attention of potential employees or consultants for possible hiring

having gone through the selection processes. After successfully getting them on board, the next

challenge is to keep them interested enough so that they stay and contribute as much as possible.

Usually, the best talent is found among the educated, exposed and experienced people on the job

market but there is a price to be paid to retain them. These are called ‘Known quantities’

17 Refer to “Virtual teams” by Bellingham, Tulgan & Martin in “Managing the Generation mix”, Tulgan in “Recruiting the workforce of the future” Fitzwater in “Documenting employee performance” and Salton in “Organizational engineering” All these titles are published by the Jaico publishing house. Another book worth consulting is one by Manfred Steger called “Globalization: A very short introduction” by the Oxford Press. Steger sets the stage for global thinking exceptionally well.

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probably are probably past the job application stage. Instead, Companies and institutions pursue

them to consider joining their staff team. Alternatively, the organisation can invest in training

people with a view to fill in the future gaps. This is an expensive venture as well as a gamble to

some extent but this in and of itself may be the way to go depending on the context and what has

been agreed between the two parties (employer and employee). After all, modern and post

modern management practices highly encourage continuous training and staff

improvement/capacity building. There is no escaping unfortunately.

As regards project management then, HRM is a critical function that cannot be over looked.

If it is neglected or given a low view, the adverse off shoots soon begin to manifest in the

following ways:

i. High staff turnover (Staff leave the organisation or project and joint the next.

j. Reduced productivity (e.g. output lowers, time of doing something lengthens,

inefficiency, costliness, excuses etc)

k. Project sabotage (e.g. theft, fraud, collusion, disruption, carelessness, abuse of assets,

‘dirty deals’ etc)

l. Dysfunctional teams (instead of building synergy, people compete against each other, self

takes the centre stage)

m. Unresponsiveness (ignoring, responding at will, passive resistance etc)

n. Poor quality output (work done with little commitment, work done but with errors,

incorrect, poorly packaged, misinformation)

o. Poor time management (late arrival at work area, persistently working late)

p. Bad attitude to work and supervisors.(i.e. passive resistance)

q. Absconding without permission (e.g. absenteeism).

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r. Destroying of corporate image (e.g. by bad behaviour, obscene talk, fighting on duty &

other vices etc)

s. Poor interpersonal relations (turning to backbiting, gossip, rumour mongering malice,

cartels, busy bodies etc)

t. Increased morbidity

As we come to a conclusion of this basic HRM/PM introduction it is prudent for us to state that

Human relation issues are equally critical in project management as well as this impacts on the

ultimate project delivery quality. If staff are not well treated or their supervisors are weak in this

area, then expect an avalanche of problems. Poor HRM abilities is indeed an recipe for disaster

and confusion leading to all sorts of undesirable behaviour patterns that may include project

sabotage, dysfunctional teams or even disruptions with the partners/stakeholders. There is need

therefore to master these skills, internalise them and seek to reduce to practice the theory that we

learn. In addition, the Project Manager or HR practitioner constantly needs to frequently appraise

themselves as well as acquire new skill sets that would work well in the post modern context,

especially as we veer towards virtual teams as well as work group centred technologies. The ball

game has rapidly changed and continues to, hence the need to keep in step with the times lest we

fall by the way side. For instance, the Project Manager, who handles HR matters must get to

grips with the extant local labour laws, legal provisions, the local psychology as well as how to

best harmlessly wiggle him/herself around difficult situations with perceived difficult situations

that include handling stake holders (e.g. politicians), partners (e.g. other NGOs, target

communities, customers & sponsors), failure to which may have long lasting adverse impacts on

the project. In other words then, a Project Manager handles more than internal customers (staff)

but others who are connected to the project in one way or the other. This has a tone of public

relations, marketing and human resource as well. At times, Managers of large scale projects and

programs get blinded with their power/financial muscle and forget that project work and success

hinges on team work as well as support from other players in the environment.

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We have spent some time around this HR hill, defining terms as it were, it is high time we

progressed to something else. In the next unit, we consider quality issues as relates to Human

resources, stay connected!

Case study 1

Motivating People

“All organisations say that people are our greatest asset. Yet few practice what they preach, let

alone truly believe it.”, aptly quips Peter Drucker, that Management guru of our times. And yet

how so true this assertion!! Finkelstein quotes Drucker as it introduces the article “Motivating

People”. It is a lamentable fact that we have slid into the new millennium with relics of the past

still firmly clasped to our “corporate skins!” What can be done? How can we handle this hurdle?

What parameters can we employ that will help us to fight lethargy and demotivation?

Finkelstein points out four critical dimensions to rescue us. But before we proceed, it is fitting

for us to define what motivation is. Using Kreitner and Kinichi’s definition, we state that

motivation is “Those psychological processes that cause the arousal, direction and persistence

of voluntary actions that are goal directed” From this definition, it is clear that the factors

under consideration are the inward disposition and internal motions that ferment as one is about a

task or activity. In a nutshell, we are considering parameters that cause someone to feel good,

happy, exhilarated and satisfied to do a task.

Having briefly defined what motivation is we now tackle the four critical dimensions (Where,

who, how, and why).

In the first place, for anyone to function well, they need to operate in a conducive and palatable

environment, i.e. the buildings, office accommodation, furniture, “family” kind of work

Executive Excellence, April 2000 issue pp10 Organizational Behaviour, Kreitner R. and Kinichi A. 4th edition, pp 189

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treatment, freedom to contribute to the company goals and any outer gadgets that make life

worthwhile. It must be remembered that the average worker spends over 8 hours daily at the

work place and as such must needs finds the work place attractive and comfortable otherwise

work is reduced to a mere “necessary evil”. In the second place, the worker must have a sense of

belonging in the company. As new employees join a company, they come with expectations that

are either fulfilled or drastically altered, in which case many feel disillusioned. In other words,

the company culture must be one that is realistic, open, clear and framed in such a way that

mutual trust and teamwork harmoniously co-exists. The culture of two merging companies is

especially tried and tested when two hitherto different work forces converge, obviously causing

“sparks” which need to be extinguished through the evolution of a new culture. In a nutshell,

“culture is how people interact at work, how they support the mission, how they regard each

other, how they work together toward goals, and how they treat customers”. This definition is

all encompassing and deals with all the salient features of a corporate culture. If the right culture

is absent, it leads to losses and ultimate company failure. In the long run people become

egocentric rather than corporate goal focused. The culture contributes significantly to staff

retention rates as well as diversity and high employee turnovers.

The third parameter that rears its head is that of development. This is the “how” of the work

place. Workers must be given the skills to handle their tasks, through prolonged continuous

training. If strategies are clearly set, pursued to the end through appropriately trained staff, then

some positive progress is registered. If the “how” is not clear in peoples’ minds, they feel

incapacitated, directionless and demotivated. To the contrary, if they are capacitated and

involved in some way at the planning stage, as well as kept abreast with the latest developments,

they will “own the goal” and will wholeheartedly support it to the end. In other words, the

company must plan, train staff, and ensure that these appropriated abilities are utilised rightly.

Short and squeezed training sessions are not recommended for “practice makes perfect” as that

quaint old saying goes. People need to internalise what they learn and only by constant practice

do they perfect their skills. The fourth dimension is the all-time famous reward system. Many

“Motivating people”, Executive Excellence magazine, April 2000 issue pp10

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reward systems have appeared on the horizon, some fair while others horribly inhuman! The

universal one which has stood the test of time is that of compensating at the end of the service or

through periodic performance reviews after which one is paid some token of appreciation. In as

much as this method has worked well in the past, the present generation is more individualistic

and favours “Instant gratification” compensation. The worker of today is interested in seeing

immediate results as well as investing in the future, to secure the retirement. Unlike in the past,

one could bank on the retirement package and there after run “broke” as soon as the cash is

exhausted. In other words, immediate cash value is more ideal for the modern day worker called

the “X generation worker”. Interestingly, not only is cash crucial to motivate a worker, time off

and the psychic gratification are paramount today. In this hurried generation of hustle and bustle,

one will appreciate some time off work to pursue other refreshing activities (Such as family life,

holiday, set up own business etc) and then return, having “recharged the brain cells”.

Thus, we have unveiled what Finkelstein and others propose as the way to motivate today’s

worker. Me thinks this is an excellent and relevant article which ought to be read by every

practicing manager. The 21st century worker then, is looking for the four-fold dimension to work

effectively. As more managers pick up these jewels and pragmatically implement them, I am not

afraid of the result!

Source:

Finkelstein, “Motivating people”, Executive Excellence magazine, April 2000

Case study questions

Why do you think Drucker makes such a sweeping statement at the beginning of this case study?

Why do you think staff are viewed as a cost rather than a critical asset to the organisations’

progress?

What is motivation and how relative is it in a diverse cultural context/team?

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Comment on the X generation.

How can this cadre be motivated and kept interested in the organisation?

How can perceptions be changed of managers to cease considering staff as mere cogs in a chain?

List and briefly explain the four dimensions that will foster effectiveness in the 21st century

worker.

=====================================================================

Case study 2

Diversity management

With the rapid re-engineering that has been sweeping across the world’s businesses, one hardly

finds it difficult to stumble across literature that deals with the said changes. The media is also

replete with reports of company reorganizations every day. Indeed, these inevitable changes are

sweeping across the world like a typhoon and there seems to be no panacea to this traumatic tide.

What is really happening? Why this seemingly mindless closure of companies and the shift

towards diverse corporate companies? These and many other questions, the Organisational

Behaviour student seeks to determine and unveil. One aspect dealt with is that of nurturing and

maintaining a diverse workforce in this competitive environment. But why should we bother

ourselves with diversity? Why the countless studies?

Two excellent authors, Caela Farren and Bob Nelson have written an article entitled “Retaining

Diversity”. This is a brisk but clear treatise that high lights the necessity of a diverse work force

and how to retain the same. The said write up opens by stating that although recruiting a diverse

workforce can be challenging, retaining the same is even extra dicey. The article further reveals

four best practice methods to be imbibed so as to minimise the employee turnover. The retaining

of a diverse workforce is crucial because of the obvious advantages that accrue to the company.

Firstly, people from different backgrounds and races come up with different ways of carrying out

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a procedure as well as new and cheaper ways of producing a product. Closely akin to the first

reason is the fact that a rich diverse company will help the multinational corporation to sail more

easily on “foreign waters”-markets because valuable insights and connections are within the

corporate ranks. Thirdly, in keeping with the affirmative action, where minorities are given an

equal chance of employment, advancement will ultimately bring about more production and

harmony. Hitherto, the top jobs have been the private preserves of a few elite men. In the past,

women and people of colour have been relegated to the terraces. With the aforementioned

culture, a company risks missing out on excellent the contributions from the said minorities.

In the first place, open communication is highlighted, and rightly so. Communication is crucial if

any institution is to survive in any circumstance. Even marriage, to a greater extent, hinges on

effective communication. By this is meant that every one has a right to information at the right

time and must keep abreast with the current happenings within the firm. This entails talking over

issues, having access to the top executives and liberty to suggest innovations. Every one, despite

their colour, sex and creed must have a fair hearing. For example, at Pacific Enterprises18, one or

two top ranking employees sit before an audience and describe how they moved through the

corporate ranks. This offers tremendous encouragement to those beginning the corporate ladder

ascent. Berlinda Fontenot-Jamerson, who heads the Pacific Enterprise Diversity Program and is

herself an African American woman, testifies to the usefulness of this approach.

The second suggested best practice is that of training and education. All employees must be

given some form of training to sensitise them of the potential dangers of discrimination and also

about other cultures. Gross ignorance accounts for some of the discriminatory attitudes such as

ethnocentrism where one feels their colour, sex and race are superior to others. Thus, the training

and education will go a long way to clear defective stereotypes and prejudices. Furthermore, all

staff must be given similar opportunities and leeway to express themselves. At Microsoft for

example, two programs are in place to tackle the diversity issue. The first is an awareness

program designed to limit the influence of stereotypes while the second is a “business program to

18 An American company

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provide real-life situations, challenges, and solutions to diversity issues”G. In addition to the

aforementioned training, the companies should embark on staff career development that will

make them self reliant, thus building capacity.

The third best practice method is that of deliberately providing mentors to new employees. The

said mentor should be attached to a new team member and should meet at regular intervals to

exchange notes on the progress. A period of one year is recommended. In this way, the new

people will feel welcome and not lost. Digital Equipment19 has reduced minority turnover as a

result of the mentor program introduced into the company. The idea of mentors was nearly a

forgotten art until the world woke up a few years ago. Most of the world’s great personalities

have had mentors to whom they looked for inspiration, much like the ‘management gurus’ we

read about in our courses!

The fourth and last best practice is to make managers accountable. Far too many pay lip service

to the importance of diversity than they practice. Once given a platform to present a paper, they

give heart rending, tear evoking and moving speeches but as soon as they turn round to leave,

they discard everything! There is need to put parameters in place to ensure that minorities are not

only represented but are appreciated, as Roosevelt Thomas, Jr. would advocate. Top

management must be seen to tangibly and pragmatically support the diversity program. We learn

many valuable lessons from each other and ultimately the organisation benefits once the right

attitudes are internalised into the company culture.

Having outlined the best methods, the article hurtles to give some guidelines for a strong

foundation. To build a powerful superstructure, there is need to foster understanding on key

concepts, address all representation and diversity issues regularly. With these and other practices

such as cultivating team spirit, mutual trust, effective communication, we have no reason to

believe that a company will continue crawling in the dust of competitive disadvantage!

Source:

G Retaining Diversity, Excellence magazine-May 1999 issue page 719 An American company Diversity management, Excellence magazine-May 1999 issue page 8

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Farren Caela and Nelson Bob, “Retaining Diversity”, Excellence magazine-May 1999 issue

Case study questions

What is diversity?

Is it (Diversity) beneficial to the organisation? Explain.

“Bringing people of different cultural backgrounds and orientations into one team just promotes

friction and lower productivity. It also wastes a lot of time in the process” Discuss these

statements.

How can diversity be best encouraged and harnessed to reap the most out of a team?

How harmful is ethnocentrism in a company. Give examples from your work place or where you

have been/heard of it.

What is the affirmative action? Does it apply for Zambia?

Revision exercise

Give some ways of motivating people.

How different is IHRM from HRM?

What are the merits of a diverse work force?

What, in your own words is the X Generation and how does it impact on organisational quality

output?

How different is the virtual organisation from the regular as relates to HRM?

In your own words, define HRM and how it differs from Personnel Management.

Why is succession planning key in an organisation, project or institution?

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BibliographyBell H Cecil Jr & French L Wendell, Organisation Development, 3rd edition, Prentice Hall of

India, 1989

Bellingham Richard, Virtual Teams, Jaico Publishing House, 2003

Boydell T. H, A guide to Job analysis, British Association for Commercial and Industrial

Education, 1981

Brake Terence, Managing Globally, Dorling Kindersley, 2002

Bramham John, Practical Manpower Planning, Institute of Personnel Management, 1982

Clarke Alan, e-learning skills, PalmgraveMacmillan, 2004

Clegg Stewart & Dunkerley David, Organisation, class and control, Routledge & Kegan Paul,

1980

Crainer Stuart, The Jack Welch Way, Magna publishing co. 2003

Davies Anthony, Managing for Change, ITDG publishing, 2001

Dessler Gary, Human Resource Management, 10th edition, 2006

Farren Caela and Nelson Bob, “Retaining Diversity”, Excellence magazine-May 1999 issue

Fitzwater Terry L, Documenting Employee Performance, Jaico Publishing House, 2003

Flippo B. Edwin, Personnel Management, McGraw-Hill, 6th edition, 1984, International edition

Gebhardt E Joan & Townsend L Patrick, How organisations Learn, Financial World Publishing,

2001

Grobler Pieter et al, Human Resource Management in South Africa, 3rd edition, Thomson, 2006

Heller Robert, Managing Teams, Dorling Kindersley, 1998

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ILO, Labour Inspection, International Labour office, 1973

International Labour Organisation, International Labour Standards, International Labour office,

1978

Kakbadse Andrew & Analoui Farhad, Corporate sabotage, Jaico Publishing House, 2004

Krames A Jeffrey, The Welch Way: 24 lessons from the world’s greatest CEO, TATA McGraw-

Hill Publishing company, 2002

Langdon Ken & Bruce Andy, Strategic Thinking, Dorling Kindersley, 2000

Maylor Harvey, Project Management, Pearson Education, 2006

Morgan Gareth & Burrel Gibson, Sociological and Organisational Analysis, Gower Publishing

Company, 1979

Mouzelis P. Nicos, Organisation and Bureaucracy, revised edition, Routledge & Kegan Paul,

1967

O’Hara-Devereaux Mary & Johansen Robert, Global Work, Jossey-Bass Publishers, 1994

Papp S Daniel, Contemporary International Relations, Macmillan Publishing House, 1988

Peters J Thomas & Waterman H Robert, Jr, In Search of Excellence, Warner Books, 1982

Render Barry & Heizer Jay, Principles of Operations Management, Pearson/Prentice Hall, 2006

Salton J Gary, Organizational Engineering, Jaico Publishing House, 2003

Schuler S Randall, Welch E. Denice & Dowling J Peter, International Human Resource

Management, South Western College Publishing, 1999

Silbiger Steven, The 10-day MBA, Magna Publishing, 1999

Steger B Manfred, Globalisation: A very short introduction, Oxford University Press, 2003

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Tulgan Bruce & Martin A. Carolyn, Managing the Generation Mix, 2003

Tulgan Bruce, Recruiting the workforce of the future, Jaico Publishing House, 2003

Turell M, Training Analysis, MacDonald and Evans, 1980

Wanless Derek, “People-the key to success”, Banking World, December 1989

Unit 6

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Aim

The aim of this unit is to help student recognize the centrality of quality people management in

the organisation as well as highlight the changing perceptions on people management/HRM.

Objectives

By the end of this unit, students must understand:

a. Why staff need motivating

b. How quality staffing affects output

c. How to motivate staff/increase productivity.

Quality issues relating to HRM

Managing Human Resources can be both a joy and a taxing undertaking. It is a joy when people

working on the team are sincerely dedicated and diligent at their duties and will not rest until the

task assigned to them is done. A taxing drudgery when the job holders elect to do exactly the

opposite or engage in all sorts of destructive tendencies that disrupt the smooth flow of things as

well as destroy team work and spirit. The Manager has to be sufficiently equipped to

competently handle both scenarios Methods, Staff appraisal, continuous training, staff retreats,

team dynamics, self managing teams, coaching for performance, study tours, job rotation etc.

Staff need motivating for various reasons and one of the aims of the issues we consider in this

unit is just that. It is however helpful to mention briefly that staff come on board with

expectations and goals which must be seen to be fulfilled in the course of their service to the

project or organisation. If that is objective(s) is met, then they will have good reason to stick

around much longer other than just for merely earning a living. It is important to motivate them

because their productivity and productive levels largely hinge on this. Drooping spirits scarcely

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achieve much or go far in life achievement. One indication of a drooping spirit is the propensity

to and frequency of quitting what they begin at the slightest encounter of a challenge. To get the

best out of them, provide a conducive environment where their latent potential is encouraged to

come to the fore. In that way, they also discover their previously veiled talents and competencies.

In this unit, we consider a select sample of some quality enhancing methods in common use

today.

Methods of enhancing Human resource quality performance As hinted at above, this unit considers some tangible and tested ways of measuring performance

with some suggested improvements where necessary. A number of points are considered

beginning with appraisals which are by far the most common way of measuring performance

with a view to improve quality output though admittedly, these are variously applied and viewed.

Appraisals

Progressive entities have made effective use of appraisals with impressive results and benefits.

Appraisals have significantly contributed to staff productivity improvement where appropriately

and objectively utilised. Unfortunately, there has been a fair share of Appraisal abuse. Instead of

serving to advance the organisational capacity, appraisals are used at times to hound out the

threats and foes by the people in authority. Thus, an employee works in fear of being marked out

and consigned to the streets after that particular contract comes to an end. In that sense then,

appraisals play the unfortunate role of short-circuiting people’s career in the organisation as

people recoil fearing victimization.

The place of appraisal

Periodically, the project/organisation carries out staff appraisals. These self same appraisals are

meant to evaluate how team members have fared in a given time frame, what challenges they

encountered and what they intend to do about issues raised. As with other terms, appraisals are

defined variously. Their objectives are equally varied but the bottom line is to ensure improved

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quality performance within the organisation. What is the precise definition of the appraisal, why

appraise and how frequent should these be done? Professor Mwanalushi and Mr McMahon have

done a good job about appraisals in their little booklet “An introduction to Performance

Appraisal: The human resource evaluation process” They have said “The appraisal of people at

work goes on continuously. Indeed some kind of employee evaluation is carried out in all

organisations. This ranges from intermittent, informal and often ill-informed discussion between

managers and supervisors about individual staff members to highly formal appraisal techniques

based on comprehensive forms and procedures. Each time a supervisor issues a good word or a

reprimand some form of appraisal takes place…” from the above, we can see that the precise

definition is difficult to arrive at but what the authors (Mwanalushi & McMahon) are saying is

that the organisation has various ways of assessing its workforce with a view to establish their

capabilities in terms of strengths and weaknesses in the process raising productivity and quality.

Appraisals carry different meanings from organisations to organisation. Depending on the

objective, the appraisal may or may not hold a significant place. We must be mindful though that

appraisals are as much informal as they are formal. What ever we do each day tells a story and

creates an image. In progressive organisations where formal appraisals are imbibed, the

supervisor appraises the staff over a period of time, say one year. Depending on the rating, the

person’s contract may or may not be renewed. Increasingly, the period is being shortened to semi

annually as this enables the appraiser to capture much more relevant and useful objective

information. In that way, some level of objectivity is maintained.

The uses of the appraisal are basically to help ascertain the training needs as well as the growth

areas for the individual. Further, the individual is helped to see their own blind spots and then

quickly venture to correct the situation. Admittedly, we all are usually blind to our own defects

and some times do not even realise our greatest potential unless another hints to us. Thus, in an

Mwanalushi M & McMahon G, An introduction to performance appraisal: The human resource evaluation process Volume 1 #. 2 The personnel Management in Zambia series 1989 pp 1

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ideal sense, the formal appraisal is good because it is a relaxed time when people pause to take

stock of them selves.

The right spirit of an ideal appraisal

Appraisals have one major aim: improving performance. Any other use of the appraisal is either

derived from this goal or an abuse of its function. The right spirit of the appraisal is to be used as

an objective tool to assess the performance of an individual against a set of objectives mutually

agreed upon at the beginning of a particular period. This evaluation has a two fold goal. The first

is to identify the weak areas of some one with a view to offer any possible support so that they

reach the expected competence levels. The second is to check whether progress is being made

against set bench marks without which, we grope in the darkness and hope for the best. In other

words, appraisals are indicators of one’s performance over a given agreed period.

Sadly, in many places, appraisals are abused. This abuse shows up in many ways especially

where people are hired on contractual terms. Instead of using it as a performance improvement

tool, appraisals are used to settle old scores as mentioned earlier on. Secondly, they are used as a

whip to threaten operatives with dismissal. That said, a right spirit as originated by the designers

is to foster objective cordial empowering relationships between the assessor as assessed.

Types of appraisal

As hinted above, appraisals take various forms but below are some of them:

1. The Peer employee appraisal- This is the kind of appraisal where peers appraise each

other and give their thoughts about a particular person. One of the ways is to ask team

mates to comment about a person on a standard questionnaire while maintaining

anonymity. The questionnaire touches the strengths and weaknesses of a person. This

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approach is rich in that it helps the person get an idea of what others think about them and

have a 360* appraisal.

2. Rating- this is where a supervisor sits with the said staff and they review the period

together against set benchmarks listed at the beginning of the period. Using that

background, a person is tallied and given marks that determine their performance.

3. Descriptive essay- this is a situation where a supervisor writes a descriptive essay about

the perceived weaknesses and strengths (areas of improvement) of a given person and

gives it to the staff. A discussion then ensues based on that essay.

4. Ranking- In this approach, the employer ranks staff from the best to the worst based on

what the employer sets as the bench marks. This approach has a way of motivating the

perceived good employees while it shatters the “bad” ones.

Pitfalls of appraisals

Each of the appraisal methods listed above has its own pitfalls but here are the general ones:

1. Some of the appraisal methods are not objective.

2. Some superiors use appraisals to settle old scores.

3. The basis/ terms of reference for appraisal in some cases are not clear. As a result, some

come off injured rather than edified.

4. Sometimes appraisals are used to manipulate staff or are an organisational political tool.

5. At times appraisals kill innovation, the volunteer spirit or calculated risk taking. Staff

figure that they may not get any points for going the extra mile and content themselves

keeping within bounds.

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6. The appraisals are not comprehensive/holistic and as such do not capture all the aspects

of a person such as feelings, thoughts or factors that led to a particular outcome.

Merits of appraisals

1. They are a guide and help people to keep focused.

2. They ensure that only the relevant and competent staff retained.

3. They help in assessing the staff needs.

4. They help in team building as people begin to realise their potentials.

5. They add value to the organisation in that the appraisers and appraised are challenged to

soar to higher orbs.

6. Appraisals are a contact point for the supervisor and the supervised. Hither to, they may

have been caught up in the hustle and bustle of the workdays but at appraisal time, they

as it were, cool down and reflect together.

7. They have a way of helping people realise their strengths and weaknesses. In this way,

people take note of their growth areas and diligently work on them.

8. They motivate. Once given audience, aggrieved staff feel fairly treated and heard.

9. Improve quality & productivity as well as eventually cut costs.

Best practices

It is always wise to adopt best practices in project management as relates to Human resources

because this enhances the quality of output from staff. In addition these best practices once

properly bought into have a way of lifting the project profile as well as the entire organisation as

a whole. Best performing companies like DHL or FEDEX (although on recent 2009 Fortune 500

list, they may not rank exceptionally high) most likely have invested in creating a culture of

excellence, customer focus and timeliness. They most likely put a high price tag on great service

delivery because this pays back dividends many times over. To achieve this superior quality

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service, there is no short cut than to invest heavily in continuous staff training and improvement.

Staff must be facilitate to bring out their latent potentials to the fore and thus promote the

organisation as well as themselves. In regular Human Resource Management therefore, the best

industry practices must not only be imbibed but promoted as well. This entails meticulous

documentation and monitoring of all staff development as well as treatment processes. In the

ensuing paragraphs, we attempt to offer some best practices that would be handy in a project,

program or entire organisation.

Documenting the best staff practicesThere is need to document whatever takes place in the organisation for several reasons, one of

them being for future reference as the organisation seeks best practices. Another is for records’

sake, in the event there is a dispute or problem. In either case, the idea is to learn as well as

defend the organisation from whatever betide. Documenting staff performance is one of the best

things that an organisation/project can engage in because this remains a pivotal point for future

action. Documenting staff performance can loosely be defined as “keeping a record of something

or some activity relating to staff” or better still, as Fitzwater as defined it “the practice of

formally recording, in writing, your actions and discussions throughout the coaching and

disciplinary process”20. As we consider the documenting of the best practices, it is best to handle

this in point form as the ensuing sections demonstrate.

The first best practice is already alluded to above, that of documenting how things are done. The

can be done in several ways that includes the following:

a. logging: When staff begin a work day and knock off, it is good for them to log in and out. In

this way, their work hours are documented and paid accordingly, that is assuming they get in and

engage in productive work all the time they are in the company premises. This practice also

makes people conscience that they have a duty to report for work on time and subsequently

raises their productivity, all things being constant and equal. Further, this practice instils

responsibility and discipline to relevant staff as their pay is connected to their output. 20 Fitzwater Terry, Documenting Employee Performance, Jaico Publishing Hse, 2003, pp8

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b. Periodic reviews: In project management, it is a good practice when staff frequently meet at

designated times to review staff and project progress. As these meetings are taking place,

minutes should be jotted down and reports produced as a reference point for future reference.

Brain storming sessions are equally good times to get feedback as well as to build the team.

Where there is a shared vision and people pull together, there you find improved qualitative

output, although one or two people may be problematic probably because of a wrong fit.

c. Ongoing mutual feedback: Professor Mwanalushi has asserted that an appraisal always takes

place in one way or the other as people brush shoulders in the normal course of life and business.

This is true and must be recognised that we owe each other an objective and frequent mutual

feedback. Note that this feedback is mutual and can go either way. If possible, let this be

documented in some form so that a trail can be followed in the event of future learning or

dispute.

d. Appraisal: This is the most common way of assessing staff. As was demonstrated earlier,

appraisals are used to evaluate staff performance on a periodic basis with a view to improve

one’s performance and usefulness. In doing this, the quality of output is improved. Like earlier

mentioned, appraisals are of different forms and applied variously. For instance, a 360* appraisal

gives one of the best feed backs a staff can ever get, assuming their peers are objective and

sincerely want to see improvement. This particular appraisal ensures that colleagues

anonymously review each other and give feed back in areas that need improvement as well as the

perceived challenges an individual faces, perhaps unknowingly. All this feedback is documented

for future reference and learning.

d. Targets: Targets are benchmarks in themselves because a person is given tasks to perform in a

given time frame and the progress rate is documented. With repeated practice, it is expected that

the said staff will end up more proficient and will inform the job evaluation tool as well as set a

standard for future reference. Targets have a way of motivating self motivated staff to work hard

so that in the process they discover their hidden or latent prowess.

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e. Coaching for performance: As people come on board, they come with a lot of background

baggage which needs to be refined so that it fits into the corporate culture very well. This may

take time as people assimilate things in different ways and rates. Thus, in coaching for

performance, what we are saying is that the supervisor and supervised sit down together at the

beginning of a given period, set objectives and targets as well as document and then begin

implementing whilst mutual monitoring is going on. As opposed to the old mode where review is

only given at the end of the set period, the supervisor, being more proficient and skilled, moves

along with the said staff, offering advice and passing on skills whilst documenting progress

which they discuss at the end of the agreed tenure. In that way, the staff is built up and needless

tussles avoided.

f. Team building activities: this may include having staff retreats, outings or simply get together

occasions where staff spend time together to socialise as well as know each other better. In effect

this is a double edged sword, killing two birds with one swipe. This interaction enables team

building but also is a source of vital information for different staff which they would not

ordinarily give out. For instance, a tea party would reveal who loves what tea brands and thus

inform HR what type of tea to buy for the particular staff when a special occasion such as an

anniversary or birthday comes around the corner.

This list is by no means exhaustive but gives a good objective idea of what and how to document

staff performance.

Importance of quality in HRM

The importance of quality in HRM cannot be over emphasised. It is beyond dispute that to get

the best results, you need the best means, in this case being human and other resources. The

Human resource component is particularly crucial because people are like the rudder that directs

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and steers the gigantic ship in the required direction. An insignificant ant like person in relation

to a big ship does the thinking, charting the course and ensuring the desired haven is reached in

the given time frame. Thus, any company may be endowed with excess resources but if the

human resource, yea, top management and staff do not correctly fit in the context, expect endless

problems and disasters. Thus, we can safely assert that hire the best fitting competent staff and

you are off to a good start. On the other hand, hire mediocre staff, expect a multiplication of

problems in your project implementation. That said, we need also to say that the HR function

needs to be itself well orbed, fashioned and positioned. This means that the HRM practitioners

(Including the Project Manager) need to constantly sharpening their axe so that they always have

cutting edge technologies and knowledge that they pass on to the rest of the organisational team

as the culture is cultivated. HRM, like any other discipline is not static, it is dynamic in a

mutating context, as the case may be.

As we wind up, we need to re-echo our clarion call, “Hire the best talent and you are off to a

good qualitative start”!

Case study 1

In depth interview with Mr Sikapale Chinzewe, Human Resources

manager, World Vision Zambia.

April 2000 Lusaka.

An interview was carried out with Mr Sikapale Chinzewe, Human Resources Manager at the

World Vision Zambia office with a view to establish Leadership and quality practices in the

organisation, having adopted the Team approach as well as successfully survived a near total

close down. This interview focuses on quality, Human Resource and Leadership matters. World

Vision International as a whole has grown over time and in a way more complex than in 1950

when it began in that corner of the World-Korea. As a result of all the continuous international

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changes, World Vision Zambia has been affected as well. This interview therefore highlights the

most remarkable changes that have and will continue to affect World Vision.

Questions:

Q. Mr Chinzewe, tell us briefly about your self.

Ans: My Name is Sikapale Henry Chinzewe and I am currently the Human resources Manager at

World Vision Zambia. I am married and was initially trained as a teacher. My first appointment

was in the Luapula province and then I went back to school to study Business Administration. I

was at the Copper belt University and there after Joined World Vision. I was in the Evaluation

department and was later appointed Human Resources Manager in 2000.

Q. My! Your profile seems interesting! It seems you have changed fundamentally in terms

of career and now you are the HRM from evaluation, how have you managed? What have

been the benefits?

Ans: I believe that life is dynamic and people should be ready to change any time. I begun

working as a teacher when still quite young and therefore, it was easy for me to change. Further

more, I think I like taking up challenges as they come. As to how these shifts have helped me, I

think the training I under took at the Copper belt University (CBU) opened my mind a lot. For

example, I am better able to look at issues from both the Teacher and Business person’s

perspective. Hither to, this would have been impossible. Lastly, I have learnt that to be a

Manager is not to be bossy but to be a team player, thus, I do not suffer from the pitfall that many

teachers suffer from such as ordering people around, at least in Zambia!

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Q. Now Mr Chinzewe, What has been your most challenging time as a professional?

Ans: I have had many challenges in life but I can safely say that dealing with people has been

very challenging for me, how to motivate, inspire, coach people and solve issues as they come. I

have been at the helm of hiring and training staff at WVZ. These two aspects have been daunting

tasks because qualified personnel have been hard and far between as well as the ever shrinking

budgets! In a way, I have handled some of the worst characters imaginable and have often gone

home with my head spinning. Some time, I have noticed this stress creeping even into our home!

Another aspect has been to be at the helm of initiating changes in WVZ both from those that

were already in process at the time I took office and the new ones. We have been at the centre of

organisational cultural and structural changes where either some jobs are scrapped or others

created. As World Vision expands in terms of work force, so also, the needs for frequent and

continuous training at all levels. In the past we have failed to carry out some critical activities for

want of cash. We are now trying to find ways to sustain ably raise cash to cover the overheads as

we facilitate further training.

Q. World Vision Zambia has been embarking on Leadership, team and total quality

changes in the past few years, could you shed some light on this.

Ans: Yes indeed, World Vision has been undergoing rapid changes and re engineering so as to

get to the best operational levels. Thus, TQM, teamwork and leadership are all efforts towards

that end. We have reached a stage when organisational fluidity is essential. As I have often said

at other forums, “The only thing that is constant is change”, world vision is no exception.

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Q. Why has this been adopted, any reasons?

Ans: As I have intimated, the dynamic times demand that we move with the times. Like any

other organisation of the past, World Vision found serious operational problems with the

orthodox hierarchical management structure that proved inefficient. Therefore, in 1995, the

organisation embarked on a major re – engineering (as well as reorganisation) exercise so as to re

– align the organisation towards the best ministry delivery routes. This was a result of the

realisation that the organisation had inherited a rigid bureaucratic structure where most of the

individuals are either under utilised or over worked. A way had to be found which provide the

best delivery avenues at a minimum cost yet at high quality, thus, from 1995, we had

Management structural changes in a bid to arrive at the efficient structure. In some cases, we

have had to scrap some positions and thus, scaling down on the number of staff. We have no yet

arrived as this process is on going. In a nutshell, we have to change in keeping with the trends in

the partnership worldwide or else risk being obsolete and in efficient.

Q. In your own words, what is leadership?

Ans: In my own words, I would define it as the ability to inspire confidence in others. It means

being able to influence others towards a certain direction as a result of being intrinsically

visionary on long and short-term goals. A leader works alongside colleagues so as to unleash the

potential latent within them. A true leader is not “bossy” but a facilitator, inspirer, motivator,

coach and mentor. Let me add and say that a true leader is a strategic visionary thinker who

carries others along to a known destination.

Q. How applicable is this ethos to the World Vision and how sure are you?

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Ans: Oh yes it is very applicable! We are moving towards teams because we perceive that where

teamwork thrives, the output is higher. Like I said, without adopting leadership practices as

opposed to Bossy kind of management, we are done unless we slowly sell the ethic to the extent

that it is internalised into the organisation. It must be a company culture. As to whether I am

sure, I have seen it taking root in the World Vision National Office and in some Area

Development Programs (ADPs). Of course I must be quick to say that this is new and will be

opposed by some quarters that hold on to the past hierarchical structures. I cannot give a time

frame as to when we shall arrive, but given present pace, we should begin to see this more

pronounced in the next three years or so. We are getting there.

Q. Are you involved in these leadership innovations, and if so, what is your role?

Ans: I am definitely involved in various ways. I am part of the Management team and actively

so. In what we call Program Development Quality Assurance (PDQA), I head the leadership

component. I am also on the self-review team that we have decided to host periodically to take a

critical introspective look at our performance levels against the set benchmarks.

Q. Do you see the potential of developing this ethos in World Vision?

Ans: The potential is indeed immense because we now and continue to have the right people in

place. Hither to, we have not had many qualified staff but the trend has been towards hiring the

right staff. In the past, as long as someone was a Christian, they qualified for the job. But now,

we are looking for much more than the paper or a good testimony (although this latter aspect still

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remains pivotal), we are looking for potential, creativity, diligence and team player traits in our

candidates. Besides, Human resource is the best resource we have to hand. A well-trained and

motivated Human resource can accomplish much, especially when done as unto the Lord. I see

this culture slowly creeping into the organisation; this is a good and pleasant development.

Q. If so (preceding question), how do you think World vision will attain its objectives?

Ans: Talking about the way we are to achieve the aforementioned goals, the organisation is

determined to hire the best-trained Christians around who have the knowledge and skills. That is

why we have the Personnel Manager who handles the hiring, training and motivation of the

current staff. In a way, the HR is strategic while the PM is operational although the functions

will obviously overlap frequently. Thus, the burden is on these two departments to coordinate

and come up with ways to develop a team kind of environment. Our present goal is to train the

extant staff so as to help sharpen some individuals that are potential achievers.

Q. What are some of the hurdles you envision will buffet the organisation in the quest

towards that goal?

Ans: To say that we have no hiccups would be telling a half-truth. The path to organisational

transformation is fraught with many hurdles, the chief of which is Finance. Many plans hinge on

the availability of funds. We have planned many marvellous training sessions but alas, we have

failed to implement them. We think continuous and consistent training of staff is the only way

forward. One way we are trying to get round this issue is by writing project proposals about

capacity building. For example, recently we wrote and sourced funds from the US office to train

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facilitators in leadership. It is about $ 10,000 but I trust this will help. In days that lie ahead, we

shall continue to write, as the ADP budget cannot meet the demands.

The fourth hurdle has been to attempt to break those departmental “walls” that have been created

in the past. Apart from personal conflicts, it is true that we feel secure and content in our

confined specialty and are not willing to learn or allow others to intrude into our domain Our

catacombs are too warm and cozy to let any villain enter in. In a team setting, the players are

multi-talented and are willing to learn and overlap each other’s duties where need be. If a person

is absent, the work will not stall on that account but another easily fits in and then work

progresses. We hope to move away from the archaic culture where certain jobs are the sacred

preserve of some people. Admittedly, this is and will be an uphill battle.

Having asserted the above, we are determined to do our best in the circumstances. So far, so

good!

Q. How do you assess/gauge the progress, are you satisfied with the pace?

Ans: We are pleased to note that there has been a tremendous improvement in the quality of

reports. In the past, the reports were either scanty or too detailed but now we have adopted the

“methods of best practice”. Where we pick the best methods of doing and reporting activities

also, we have ensured that we have a standard report format. In addition, we make sure that we

respond to our partners in the stipulated time. Proactively is now normal. Generally then, the

progress has been good but we need to keep up the tempo and infuse a sustainable system that

will guarantee timely and quality responses to all stakeholders. In addition, the advent of

Information technology has been a tremendous help to the organisation because it has ensured

that we move faster while keeping in step with the outside world.

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Q. Quality is also a buzzword in World Vision circles, why?

Ans: For some time now, TQM has been a buzz word because management circles have

perceived it as the “silver bullet” that has suddenly transformed organisations from being

inefficient, rigid, inflexible and crippling bureaucratic to agile, responsive and continuously

mutating and learning organisations with near zero defects in the products and services.

Although we do not deal in tangible products (as World Vision), in a way we do and as such we

endeavour to produce services at the right time and place as the case may be. We desire to have

quality in all areas of our delivery system to the greater satisfaction of our stakeholders, in this

case being children and donors.

Q. What are the objectives of TQM?

Ans: The objectives of TQM are to have the best products and services at a low cost and yet high

quality that satisfies customers. Furthermore, TQM aims at eliminating defects in products and

services by avoiding defects within the system. Thus, the goods and services are of the highest

quality, low cost and yet what is in keeping with present consumer taste.

Q. What are your strategies to achieve TQM optimum?

Ans: Since we are in our preliminary stages in infusing this important process, we will largely

depend on the feed back from all areas the organisation.

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We will put certain parameters/benchmarks in place so that we can measure our progress

periodically. For now, we will rely on those key indicators.

Q. How do you ensure that it is not just another “program” or “management fad”

Ans: true as it maybe, we are determined to ensure that this is not just another abstract program

where we just make noise, clamour and then fizzle out. To avoid this pit fall, we will ensure that

we implement the changes slowly, but properly focused while armed with the right human

resource at hand. Change is inevitable, no matter what forms it takes.

Q. What mechanism have you put in place that you achieve your objectives?

Ans: The mechanisms we have put in place are the following:

1. We are encouraging team work within the ADPs and at the national office.

2. We have gone further to divide the country in to zones where we have a rotating periodic

leader for each given zone.

3. The PDQA21 at the national office among other things has been charged to ensure that all

the planned goals are on track and quality is in build in to the organisational structure. In

addition, the PDQA is mandated to propose, initiate, assess and write concept proposals

to potential donors outside World Vision. In other words, the PDQA ensures that

whatever goes out of World Vision to donors is in near perfect shape.

21 PDQA=Program Development Quality Assurance

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We will ensure that consistent and continuous training picks up in the organisation and also

by the same token ensure that the right people are hired to foster the organisational objectives

better.

Q. In the light of other NGOs with the same goals as WVI (E.g. CARE International,

PLAN International, Christian aid, CCF etc), how do you ensure that you keep a

competitive edge considering that you get donors from the same pool?

Ans: There is no competition at all! We have nothing to fear as we are in our own market.

Effectively, they are all in different markets from us. We may be in development quite alright

but our goals and objectives are completely different. In addition, our target group is

completely different. If that were not the case, then we would endeavour to cut a niche.

Happily, that is not the case. Having vehemently asserted the above, let me hasten to say that

we are in the business of wooing donors and satisfying our clients by providing impeccable

service. The customer is king in our business as well.

Q. How long has this process (TQM/Leadership) been going on?

Ans: Like I said earlier, it has been on going for some time and will continue.

Q. Just how much longer will this continue?

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Ans: It is difficult to put a limit on this process as it is on going, although we can attempt to

put benchmarks to that process and assess how we are doing at each stage. Otherwise, this is

an on going journey and must be taken at the right pace. A major paradigm shift takes time to

flower.

Q. Has training been necessary for this?

Ans: Of course! If any process is to take place in any organisation, there has to continuous

training of staff so that their minds are abreast with this dynamic world. Training should be

on going and frequent if the changes implemented are to pay dividends. Further more, World

Vision is changing rapidly and to keep in step with the times, we need human resource that is

apt, flexible and efficient at their tasks. Otherwise, how else are they going to develop?

Hither to, World Vision Zambia has emphasised on training and as such, our impact in

partnership has not been felt. In the region, we are probably the least trained. In addition,

training builds capacity and also motivates. It is high time we had a deliberate policy on

training so that people can stand on their own feet long after they have left World Vision.

Q. Who are your models/mentors in this whole idea of TQM/Leadership?

Ans: I am not ashamed to assert that Bwalya Melu and Sheldon Rankin inspire me the most

because they have a very clear vision, are articulate and excellent team players. Bwalya

particularly is my mentor, having worked with him closely over 4 years. He has a way of

helping you unleash the hidden potential within you.

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Q. What about current books on these trends, who is / are your most preferred

author(s)

Ans: I like many authors but none like Max De Pree, Osward Saunders and Stephen Covey.

The best books I find are Servant leadership, Spiritual leadership, Auto Biography of BC

Montgomery, the Bible and Green leaf. There are other books, magazines and periodicals of

course such as the ‘Executive Excellence’ magazine.

Q. Tell us about some of your personal goals.

Like every body else, I would like to improve my lot in terms of education when I find an

opportunity. As I have hinted, continuous training is critical as it sharpens one for effective

service. At one time, I quit World Vision but came back later. Now I am determined to stay

as long as possible and then contribute to the welfare of the organisation. My present job is

very challenging as I handle people of different shades, far different from what I ever

imagined but I know it is shaping me for better and bigger challenges. So, If and when an

opportunity avails itself, I will grab it!

Q. Finally, what are your goals and aspirations in WVZ?

Ans: My goal is to hire the best-trained and motivated staff on the market. Also, I would like

to see a teamwork culture take root where there will be less of the “Bossy” attitude but rather

a work environment where we view each other as colleagues, akin to football team.

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Thank you for according me this interview Mr Chinzewe, it has been good talking to you and

wish you the best in your future endeavours.

You are welcome Billy, it’s equally been a pleasure, and I hope you join in championing the

cause for TQM and leadership.

====================================================

Case study questions

What in your own words is TQM?

What do you think about having a specific department or group that focuses on quality? Give

some merits and demerits of this approach (having departments).

Who or what is a leader? How different is this from a boss?

What one quality do you think a leader must possess to remain fresh and relevant?

How best do you think organisation can remain attractive to donor support, despite the tough

competition on the donor funds market?

Incumbents are usually very confident and easily dismiss puny new market entrants, do you

sense any of this attitude problem in this interview? If so, what should organisations do to

avoid this fatal error?

Case study 2

Reasons why employees leave

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Organisations go through different seasons as they evolve over the years. This largely depends

on the context and industry the organisation is in. If it is a donor funded organisation,

conditionalities will apply too. If it is a profit making entity, different conditions as well will

dictate how and why staff are remunerated. Further, we can consider the environment, economic,

legal and political structure of a country where the entity is located. For instance, if the place is

war torn, politically unstable and highly volatile, it attracts other terms too.

It is often sad when an employee tenders in their resignation, if they have been star performers

while it turns out a grand relief when a time waster leaves through natural wastage. Many have

undertaken to research and crystallise the major reasons for departure. Among these is Leigh

Branham in his monumental work “The seven hidden reasons employees leave” and perfectly

summarized by the Sound view executive book summaries. It is an insightful article that explores

what he calls “seven hidden reasons”. The hidden aspect could refer to the unspoken or

undocumented reasons that almost never appear in the exit conference, where relevant. But are

these really “hidden”? Not exactly, except that they are discovered by personal experience or

informal interactions with the people that leave. Neither are the seven reasons exhaustive as

listed by him but suffice it to say that these reasons are indisputable. They give an insightful

excellent view to the manager so that they may be vigilant to watch out lest they receive a rude

shock when the resignation letter “suddenly” lands on their desk. They are startled because all

along, they were too preoccupied with their own world and did not realise that they had drifted

away from their operatives. It is instructive to learn that when people finally scribble their

resignation letter, they will have passed through various stages of disengagement. For them to

finally document means that they will have thought through their decisions, options and career

prospects. It is difficult for any external force within the organisation to turn the mental tide, the

bridges would have been burnt by then-Point of no return has been reached.

Among the reasons Branham points out in his book as to why people leave include the following:

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1. Disillusionment. When people join organisations, they come with a lot of expectations

and an agenda. For a season, most of them assume all the common problems that bug the

average organisations will have been a thing of the past. If it is their first job out of

college, they diligently run along for some distance without noticing any flaws. But alas,

the time comes when they begin to realise that things are not as rosy as they initially

thought. Much exposure to better organisations even worsens the situation and

consequently leads them to the human resource exit door. Others leave because their

working environment, interpersonal relations or expectations are not cordial or good

enough. Thus, when a competitor organisation comes along and dangles a better deal, the

person swiftly takes the next flight out of the organisation.

2. Secondly, people often quit when they realise that their training and current job do not

match. Others find that they do not have the right fit and thus by and by degenerate into

frustration, antagonism, boredom or a clear struggle where others sail plainly. Some jobs

demand that some one be technical, analytical or time bound while others are more

relational and dependant on what the day brings along. If a technical person is put in a

social/non technical job, they eventually feel caged and quit. There are exceptions to the

rule though, those with versatile fertile minds are able to wiggle around and still tick.

3. In the third place, some people feel abandoned and unguided when they commence the

job. Where the systems are refined and working, some organisation fall into a pitfall of

assuming people will “automatically fit in” and thus offer very little or no orientation. All

the organisation is interested in are results. Even the best self starter often feels stranded,

abandoned and alone. It is worse where the corporate culture is too formal, impersonal

and restrictive. Once thrown into the deep end, they are expected to swim to safety and

produce wonders. There is need to have a consistent coaching arrangement where people

are helped to settle and walked with along the way. This builds a sense of belonging and

reduces staff turnover. The other pitfall is lack of proper constructive feed back on many

issues. This leaves people wondering whether they are making headway or on the wrong

path. Sadly, in some organisations that abuse “management by exception”, people

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discover that they are in the wrong when they receive a warning letter or a sudden strong

reprimand. This kills morale and people begin to visit the newspaper job advert page and

eventually flee at the earliest opportunity.

4. A pyramid structure arrangement often blocks people’s prospects of advancement. If the

structure is too elaborate and narrow, people will see the road block from afar and

quickly look for an alternative that will cut the long route. Often time, external

organisations with better and fewer/flatter layers are more appealing to the ambitious.

Many people are in a hurry to get to the top as soon as possible and thus eventually leave.

The figure below attempts to show what an average organisation structure looks like:

Directors/CEO

More than just upward movement is the possibility of fluidly moving across the organisation

for one to enrich their job experience or develop within the organisation. Rigid organisation

curtail any attempt to move and thus frustrate people. The last straw comes when all

possibility advancement doors are blocked on account of internal organisational politics,

prolonged and frequent reorganisations as well as other external threats and limiting factors

such as donors, market loss and permanent road blocks.

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Top

Layers- Middle mgt

Layers-most people here

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5. In the fifth place, people leave the organisation because they do not feel valued or

recognised. If they do not feel “at home” they will grab the earliest place where they will

be given the due dignity, support and appreciation. Many organisational structures are

bureaucratic and laced with a thick layer of red tape. Brain storming sessions or staff

involvement are non-existent, people are ruled with an iron dictatorial hand, from the

traditional management school. Progressive organisations however, value each team

member from sweeper upwards and consult widely from the internal customers. It is even

better where self managing teams exist as opposed to mere work groups. As people feel

the sense of community, are heard and valued, they naturally become reluctant to quit and

in turn market the organisation to the outside world.

6. In this fast paced global world, people find themselves always on the run. Decisions that

once took a year now take seconds and by that token speed up the work pace. Deadlines

are the order of the day coupled with a shrinking job market in places like Zambia. In a

bid to retain or maintain their competitive jobs and make the mark on the industry, many

do it at the expense of other equally important issues such as family life, leisure time,

leave or even engaging in refreshing personal projects such as home building. A dilemma

is created that raises the stress levels and in some cases wrecks people’s health. Prudent

and marketable people quickly quit. Sadly, the stranded stick around until they totally

break down. There is need to rest. All work and no rest kills the horse God gave you.

7. The last reason advanced by Branham is loss of mutual trust. When employees look at

their superiors, they look at them with some measure of cynicism and suspicion.

Whatever the leaders say is taken with a pinch of salt and never relied on. Leaders often

lose their followers’ confidence when they are insincere, unsure, inconsistent,

intimidatory or manipulative. Because of the betrayal, ill treatment or breach of trust, a

power distance is created and scarcely can be mended. Frustrated staff instantly fly away

at that point.

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Having looked at the reasons advanced, I would like to add a few more reasons that I feel

significantly add to the high staff turn over.

People leave when they feel unfairly treated by their superiors. Insecure leaders are

constantly sending intimidating gestures and messages that discourage the lower operatives

who eventually quit. Secondly, staff quit when unethical practices are tolerated by the

organisation such as window dressing of accounts or no proper documented referral policies

on file. Decisions depend on what the boss feels not policy. The third reason could be

insecurity. Traditionally, many people in Zambia have been accustomed to life long

employment and often feel insecure to be given short contracts lest they prematurely lose

their living. The pre-nineteen ninety two (1992) hang over still lingers in many Zambian

minds and needs to be quickly exorcised. The fourth reason is simply that other competitive

organisations have emerged which offer far more monetary rewards for the same type of job.

This enables some one to invest quicker, build their empires, build profiles or indeed better

exposure. By the time the contract expires, they will have had immediate benefit and moved

on to the next level. For instance, if working for your present employer offers you a steady

lower paying job while a shorter contract job offers you ten times as much as your current

job, we suppose you will elect to get the shorter contract and more money in one month than

would be earned in ten months. In effect, your value for money is higher now than at a later

date. Many out of college graduates prefer the big jobs for instant gratification. The fifth

reason could be that some organisations offer variety, challenges, are more versatile, lean,

agile flexible and fit in well with the present trends. People get incentives that betters their

lives albeit they be hidden such as transportation, leave pay, loans, bonuses, holidays or

medical. The sixth reason is when the persons’ personal goals do not agree with the

organisations’. The person finds the bad practices, behaviour patterns, lack of

leadership/direction, laissez faire attitude etc rife and unabated in the organisation, they feel

disappointed, disillusioned and fear corrupting their own good work culture/ethics. Thus they

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leave despite having a secure job. This culture thrives in the civil service where people live at

their own pace. They dare not quit as they value the perceived security. The progressive

professional feels crippled in such a setting and soon quits or conforms. That partly explains

why NGOs are reluctant to hire candidates from the civil service as though they suffer from a

plague.

These are but a few of the additions but we would safely conclude and say that the global

worker of the 21st century is looking for the best possible personal deals they can get hold of.

They are offering a skill and as such need to partner with progressive companies that are

relevant to the times. In fact, many of them commence their careers with a clear agenda in

mind-to employ rather than be employed. If their goal is elusive, they leave in search of

greener pastures.

Case study questions

Give at least five reasons why staff quit organisations/projects.

In your opinion, are the seven reasons advanced by Leigh Branham actually hidden?

What is your suggestion to increase staff retention and motivation?

How best can the Generation Gap be narrowed?

How did the post 1992 economic unfolding impact on Human Resource Management?

Revision exercise

Why is it important to hire the correct staff?

Give some ways which staff performance can be documented.

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What is the aim and spirit of the staff appraisal?

If you were the Manager of a soon phasing out project, how would you motivate your staff?

Give at least four reasons why employees leave organisations.

Do you think the project manager is the best person to handle HR matters? Discuss and give

reasons.

What is productivity and how can it be increased in staff?

BibliographyBell H Cecil Jr & French L Wendell, Organisation Development, Prentice Hall of India, 3rd

edition, 1989

Brake Terence, Managing Globally, Dorling Kindersley, 2002

Bramham John, Practical Manpower Planning, Institute of Personnel Management, 1982

Dessler Gary, Human Resource Management, 10th edition, Pearson/Prentice Hall, 2005

GRZ, Annual Performance Evaluation in Civil Service (APECS), APECS user guide, 1989

Kakabadse Andrew & Analoui Farhad, Corporate sabotage, Jaico Publishing House, 2004

Kapatamoyo Abel & Gunnigle Patrick, An introduction to Job Analysis and evaluation, Zambia

institute of Personnel Management, 1988.

Kinicki A & Kreitner R, Organizational Behaviour, 4th edition, Irwin/McGraw-Hill, 1998

Mwanalushi Muyunda & McMahon G, An introduction to performance appraisal: The human

resource evaluation process Volume 1 #. 2 The personnel Management in Zambia series 1989

Peters J Thomas & Waterman H Robert Jr, In search of Excellence, Warner books, 1982

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Schuler S Randall, Welch E Denice & Dowling J Peter, International Human Resource

Management, 3rd edition, South-western College publishing, 1999

Turell M, Training Analysis, MacDonald and Evans, 1980

Unit 7

Aim

The aim of this unit is to give an integrated view to project and program management so that the

student is able to intelligently appreciate the two and how they relate.

Objectives

By the end of this project, the student should:

Tie up all the loose ends of project & program management.

Distinguish between a project and Program

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Integrated Program management

For any project to successfully kick start, progress and eventually “phase out with dignity”,

there is a lot of work that is involved and goes on throughout in the back ground. Granted that

hurdles, challenges and frustrations will be faced by the front liners (“where the rubber meets the

road”) there is a powerful machinery that ensures the right thing is done at the correct time. From

inception, through the design and implementation stages, the way a project is going to function is

predetermined so as to ensure correct, efficient and cost effective implementation is achieved.

The wheels which makes this machinery work well is known as ‘Operations’. The careful

harnessing of the same to achieve the intended goal is called Operations Management. This

usually centres around the project core business without which the project will be defunct or

ground to a halt. Operations Management has been defined variously by different authorities but

its basic understanding revolves around ensuring that the operational gears of the entity are

functioning in tip top condition to create satisfactory product or service for the customer (i.e.

consumer, sponsor or donor etc). Roger Schroeder22 defines it as being “responsible for

supplying the product or service of the organisation. Operations Managers provide value for the

customer at the lowest cost making decisions for the operations function and by managing the

transformations process”. This elaborate definition attempts to give an anatomical production

oriented definition of operations management but could be further refined. It emphasizes a

number of key points such as decision making, functionality, process and indirectly quality. Any

process must have quality attached to it or else it is not worth undertaking as it risks being a

sheer waste of resources.

In considering integrated program management, we are talking about various projects clustered

together to form one huge program whose effect is greater than the sum total of all the projects.

In other words, there is some form of synergy that results and these projects together target

specific problems which when dealt with bring about a lasting impact in the area where the

program operates. We briefly explain the difference between a project and program below:

22 Operations Management: Contemporary concepts and cases, pp 4

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A project, as explained in an earlier unit is a specialised undertaking whose mandate is to deal

with a specific problem in a given time frame. In other words, a project has a definite lifespan,

start and end date. The project also passes through phases and is summarized by a log frame, if

that is the method chosen. A project is monitored at activity and output level (implementation

stage).

A program on the other hand is a large scale undertaking which also has a lifespan, targets and

benchmarks which are evaluated at some time. Strictly speaking, a program is not monitored but

evaluated because its constituent projects combine to feed into the program goal. In other words,

a program is made up of clustered projects whose cumulative effect impacts on a larger scale

than the separate individual projects. For instance, World Vision International runs Area

Development Programs (ADPs) around the world that implements interventions for long periods

of time between 15 and 25 years. Projects collectively form integrated development programs

that have periodic “add on” projects which come and go as their cycles elapse. For instance

many projects with different funding sources (i.e. Japan, UK , Korea or USA) might all be

clustered under one ADP but collectively deal with an issue in an area with a view to improve

the quality of life of the target beneficiaries.

In the corporate world, different programs focus on different issues but their goal is to sort out a

specific issue or develop some product that is needed to help the business. For instance, NASA is

to retire the entire space shuttle fleet in 2010 after completing the construction of the

International space station. In preparation for the post 2010 era, a number of programs have been

initiated whose mandate is to develop the next generation space vehicle fleet (Aires) which are

probably more versatile, cost effective and for longer range space travel. The said program

probably commenced several years ago in anticipation of the shuttle retirement and will

smoothly come in to supplant the legendary “STS” fleet which have worked well from about

1981 although two were lost in the process (Challenger in 1986 & Columbia in 2003). Other

programs exist in the motor industry whose main goal is to carry out R & D for product

improvement.

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Operations issuesFor a project or program to efficiently work well, a number of issues have to be in place which

include the structure, human resource, financial resources, teams, culture, philosophy as well as

the vision and mission statements.

The Vision and mission statements usually have a bearing on the strategy adopted and ultimately

influence structure. We briefly investigate each of these areas.

Vision

Every entity that gets into some kind of activity has a desired dream or goal at the end of the day.

No matter what activity or intervention engaged in, whether long term or short, big or small, the

entity has a mental picture of what it would like to see or be a given distant future. This is its

vision. Simply defined, we can state that a vision is the entity’s future position or what it would

like to be. We could still refine this definition and say that a vision is a desired future dream

viewed from the present podium. For instance, a project may want to see every child enjoying a

higher quality of life as is for World Vision International and state it as “Our Vision for every

child, life in all its fullness, our prayer for every child, the will to make it so”. This may appear a

lofty goal and perhaps not attainable but this is World Visions’ dream that they would like to see

a world where every child is secure, healthy, well cared for and happy where they (World Vision

works or not). Thus, in order to reach this goal, the said entities will aspire and position itself to

contribute to this vision and not rest until some semblance of this is attained. Thus, the project,

program or entity will state its reason for existence in broad terms justifying its existence as

encapsulated in its mission statement.

Mission statement

Drawing from the vision, the entity then proceeds to state its reason for existence in an elaborate

and all encompassing statement. This statement explicitly expresses the reason or justification

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why the firm exists and how it will attain its goals. In a nutshell, a mission is a broad statement

which explains in clear terms why the firm exists and if it acts ultra vires, there is no justification

for its existence and will subsequently not reach its goal. Following up with the earlier example,

World Vision International has the following elaborate mission statement: “World Vision is an

international partnership of Christians whose mission is to follow our Lord and Saviour Jesus

Christ in working with the poor and oppressed to promote human transformation, seek justice,

and bear witness to the good news of the Kingdom of God.

We pursue this mission through total commitment to:

Transformational development that is community based and sustainable, focused especially on

the needs of children.

Emergency relief that assists people afflicted by conflict or disaster.

Promotion of justice that seeks to change unjust structures affecting the poor among whom we

work.

Strategic initiatives that serve the church in the fulfilment of it's mission.

Public awareness that leads to informed understanding, giving, involvement and prayer.

Witness to Jesus Christ by life, deed, word and sign that encourages people to respond to the

Gospel.”

From the statement we learn that World Vision has a mission to accomplish in the world,

bringing about holistic transformational development in the lives of all people regardless of race,

creed, location or gender, from a Christian perspective. Note also that the statement shows

WHAT the organisation seeks to achieve as well as HOW it will do this, although the latter point

is further amplified in objectives (which are specific steps to achieving the dream).

At first glance, one can tell what a project is focussed on or what it deems important by the

project structure or organo gram. Depending on the interventions pursued, the project may have

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an elaborate or lean structure which either expands or contracts. For instance, if the project or

program is a relief focused, expect a number of food monitors and distributors. Expect the

structure to expand or contract periodically contingent of the nutrition levels. By the same token,

if it is a development program, the structure will progressively expand as the project cycles take

effect until the maximum establishment is in place. These will run all the projects under the

program and each Development Facilitator, being a specialist in that respective field, acts as

Project Manager while the overall program is managed and led by the Program Manager. To

illustrate what we are talking about, we have inserted two sample organo grams, the first (fig 1)

fully established and the second (fig 2) of a program in expansion.

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Structure or organo gram

Different structures at project level:

Fig 1 An elaborate organo gram showing program staff and their reporting roles.

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Driver

DF Agric.DF – Water &

Sanitation

Office Assistant

Development Co-ordinator

Program Manager

Program Accountant

DF HIV

DF XDF Health

Accounts

Assistant

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Figure 2 An organo gram depicting program staff and their reporting roles

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ADPM

DF HIV DF-ChildrenDF

Agriculture

M & E Accountant

CDWG CDW CDW

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Human Resources

For any project, and indeed any entity to thrive and succeed, the human element in

some way is critical. For now, human input cannot be avoided and still remains the

driving force in every undertaking. There is a lot of thinking, consultation,

collaboration, networking and implementation where a project is going on. To get the

best out of people therefore, there is need to recruit and hire the best talent on the job

market that will be able to diligently work and deliver at the end of the day. But hiring

is not enough, there is capacity building, training, team building and organisational

culture “indoctrination” that takes place in the intermittent period while the staff is

still on board before they eventually depart for one reason or the other. Thus, every

entity needs a human resource specialist that must handle all these delicate matters

that border on motivation as well as keeping people on board as long as possible.

Where this is not possible, the project manager must be sufficiently equipped with

skills to competently handle issues of that nature. A motivated work force with a good

leadership achieves wonders. In the absence of that, staff engage in all sorts of

sabotage, venting out their frustrations! None the less, the human component must be

well harnessed to contribute to the corporate goal congruence.

Finance department

The finance department is probably the most sensitive section, though not necessarily

the most important. It is sensitive in the sense that it is the nerve centre of the project

and if the wheels in this department are not well oiled or sufficiently efficient, the

whole project suffers, many times grinding to a halt. Financial management includes

all matters related to project assets (fixed and current) and how these are acquired,

kept and utilised. To effectively execute these functions, the finance department

institutes a system that ensures everything in the program is tracked and used as per

plan. This system is called an internal control as it is there not only to inhibit abuse

but also promote efficiency in the project. Specifically, the finance department

handles the following:

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Budgeting. This is done before and during the project implementation. Depending on

the project life as well as mutual agreements between sponsor and implementer, most

projects do a fresh budget each year, although a budget life time budget is drawn up

before the project actually begins with modifications along the way. Budgeting entails

knowing the costs as well as when the specific activities will take place.

Asset acquiring/procurement. Although this function is increasingly being handled by

the supply chain or purchasing department, the finance people are involved at every

stage because they are the ones who made up the budgets with input from others of

course. Therefore, when the right time to acquire assets arrives, the department

facilitates payment, bearing in mind the budget provisions.

Financial advice and training. Many assume that they know financial matters well

enough while others do not care about budgets at all. Their only interest is to see

things they demand acted upon. This is a weakness because finance has rules,

regulations and standards that must be observed before any transaction takes place.

Thus, the department offers financial advice and training to whoever may need

educating. In addition, management is constantly kept abreast with the financial

situation by use of various tools like cash flows, target low (standard minimum cash

balance at the end of every financial period e.g. month end), asset register, inventory

list, bank balance among many.

Financial reporting. Periodically, there is need to give feed back to whoever requires

it, especially the sponsor. A report is therefore generated and made available for

scrutiny and information to and by whoever is an interested party. The financial

reports differ from project to project depending on donor requirements and

specifications. Some require simple and summarised reports while others demand

detailed line by line report backed by a narrative variance report. In addition, the

report must be in a set format and be accompanied by a bank reconciliation for each

bank account maintained by the project. Rules around bank accounts also apply and

are effected by the finance department.

Internal control enforcement. As part of the finance management system (and this is

very critical to any auditor), the project has systems in place that ensure project

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resources are not only safeguarded but used for their intended purpose. This involves

how the bank accounts are handled, who has access and control to them, how

vehicles, computers, phones, office premises, motor bikes, bicycles, debtors, creditors

and all that is utilised or affects the program. The finance person must especially

watch out on debtors and creditors for these wreck not a little havoc. This system

attempts to ensure these things are used well and appropriately so that the project

functions efficiently.

Budget control. Although closely connected to an earlier point (Budgeting), this point

merits its own place. Once budgets are drafted with everything required factored in,

these provisions must be followed. Many non-finance people do not always have the

discipline to adhere to budget because they do not appreciate what impact every

transaction has on the overall budget. For instance, every over expenditure robs the

next line item in the budget of getting the required funds and may eventually not be

carried out for lack of funds. At one time, this author worked in a project that

exhausted its budget by quarter three of that particular year and had no money for the

last lap. You should have seen the confusion and disorientation in the non finance

guys! They forgot that they had over spent in about every line item they managed to

do! The function of the finance team is therefore to meticulously watch the costs and

ensure every one safely gets to the end of the year with a pay check because of

sticking to budget! Governments desperately need to learn fiscal discipline and I am

sure NGOs will go out of business. Many donors dread the red tape, bureaucracy,

misapplication or diversion of funds when it enters government coffers. Genuine

NGOs are far better in their financial controls and accountability.

There are definitely other functions that the finance department does but we need to

wrap up this point by stating that the said department is there to facilitate smooth

implementation of the project, in keeping with the set goals for that period as set

financial rules are observed.

Production department

The production department usually applies for a manufacturing industry but none the

less, all entities are involved in some form of product churning out. That in itself is

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production of sorts. But suppose we are in a fully fledged manufacturing firm, this

department receives specifications and raw materials and processes them to get a

product, usually with added value to the customer. This department does not act

arbitrary but has systems and processes that work to ensure that only required things

are produced having received feedback and instructions from other sister departments

such as the marketing, research, finance among others. Usually, in the manufacturing

sector, this is the core business centre of the organisation or project and the operations

department revolves around this area. In an ideal organisation or entity, the

production department works closely with other departments to produce quality

products timely, with the right systems (such as JIT) at the required standard of

conformance and specification. In the past when production was the main thing, all

other departments shrank into oblivion but with the realisation that quality is key, this

department cannot work solo lest it wastes resources by producing incorrect products

which in some case may be more costly when outsourcing would have been a better

option. A detailed description of this department is beyond description of this module

but suffice it to say that the production department is a equally essential “cog” in the

supply chain of a successful project or entity.

Marketing department

The Marketing Department has a number of functions but its principle aim is to build

a brand name thereby encouraging brand loyalty. Contrary to the common belief that

Marketing is only about sales, it is far more than that and includes, Market Research,

Product Development, customer satisfaction and retention, quality service delivery

among many. Therefore, Sales or market expansion is but a small component of what

marketing entails. In project management, some form of marketing takes place in the

quest to please or satisfy sponsors by doing a good job, in record time and of high

impact. As a result of this, the sponsor is impressed and probably pledges more

resources as well as tells ten others to equally contribute. This latter bit is some form

marketing department who had no clue whatsoever of what is involved in marketing.

Their aim was to increase sales in the absence or competition (command economy)

and at mediocre prices. People bought their goods simply because they had no other

choice but at the economic change over of 1992, most of these companies folded.

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Only those that saw the importance of the marketing function remain buoyant today,

far different from what they were then!

Public Relations

Closely connected to the previous point of consideration (Marketing), the public

relations wing seeks to among many things:

1. Inform the public and staff about what is going on.

2. Alert on what is yet to come in the year.

3. Correct wrong impressions/misunderstandings created within and outside the

organisation.

4. Defend the project from unjust public utterances.

5. Record, document and capture significant stories worth telling to the outside world.

This department, though usually viewed as inferior or unimportant actually carries a

lot of wait and preserves or enhances the corporate image of the entity or project. This

Public Relations (PR) department does a lot of back ground work and checks before

publishing or issuing a statement over any matter. It is therefore the mouth piece of

the entity and no other person is allowed to issue any press statement relating to the

organisation, unless so allowed. The reason is simply: To preserve the corporate

image and avoid damage control that ensues in the event of an erroneous statement.

On a positive note, the PR department goes ahead to uphold and enhance the

corporate image so that sponsors or donors are made aware of the entity’s existence.

In project Management, the ball again falls on the Manager’s lap, unless so delegated

to another functionary. The PR methods and avenues are many and contribute to

mutual understanding among partners and stake holders. Thus, PR is a critical part of

the program in the quest to maintain consistency.

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TeamsToday’s progressive entities prefer working in teams in order to build synergy. For a

long time to come, teams and team work will be the best practice and way to go in

order to achieve far much more than would ordinarily be accomplished. A team is

basically an integrated organic unit of people working on a common objective as well

as looking out for the common good of each other. The said team is a matrix of

individuals who look out for, interconnect, inter depend and overlap in their

functionalities ensuring that the project does not stall on account of an individual’s

absence or inefficiency. To function well, the team must be mature, organised, with

clear common goals and objectives. Teams are of different types and are

distinguishable from groups. While a group emphasises allotting duties and

responsibilities to specific individuals and assessing them by what their output, teams

focus more on a system and interdependence with a view to build synergy, collective

responsibility and success. Star performers are acknowledged but within a team

context rather than as isolated individuals. Some teams are self managing composed

of all professionals on board with a rotating leadership. Others are virtual in that they

do not physically work in one place but are interconnected by appropriate technology

such as video conferencing, skype, webbex, twitter, face book, email or whatever

facilities that enable interaction. By and large, most of the project teams around the

world work together in one locality with one person that heads the team, calling the

shots as it were.

Projects develop teams as they mature ensuring that the best team members are co-

opted into the project staff structure. Trends observed recently in project circles is that

groups are fast ebbing away and giving room to multifunctional or cross functional

teams. It has been observed in some organisations that a strong team work culture has

significantly improved the results of the project, although teams also have their own

fair share of challenges along the way. We highlight some of these common

challenges shortly but for now we state that team work is the way to go.

Challenges faced by teams

Team dysfunction

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At times, teams are crippled by internal wrangling resulting from egocentricism or

organisational politics. An off shoot of this is mistrust, acrimony and a myopic inward

looking mentality. People become unsure and spend more time looking over their

shoulders just in case some “matchet” carrying colleague is hot on their trails. Often,

when the power distance between the team leader and colleagues is very wide, this is

bound to happen. Another reason for this could be that the staff do not have the right

competencies and credentials forcing the team leader to act as a ‘goose chaser’. This

has a telling effect on the output and quality drastically plummets as a result.

Little buy in by new staff also contributes because they come in with their own un

checked baggage and operate as usual only to receive a rude culture shock when

others cry foul. In the teams that the author has been privileged to work, he has

repeatedly confirmed this development. Another contributor is lack of continuous

training of team members so that they acquire a fresh skill set as well as be on the

same page with the rest of the team. Half the team, the leader is light years away

while others are ignorantly groping in the darkness.

Vision and objectives unclear

Often times, in the quest to beat deadlines and impress the sponsors, projects

commence in earnest overlooking a lot of variables which back fire in the long run.

One of these back lashes is when people do not function as expected simply because

they do not know or realise the importance of the shared project goal, vision or

objectives. Had they been appraised during orientation, then the turn of events would

have been totally different. Usually, a small click knows the bigger picture and what

is at stake while the rest remain in the dark and therefore care little about their output

quality.

Inappropriate leadership style

At times, project teams are a circus and the chief clown is the project manager him or

herself! In such scenarios, the staff are highly demotivated, disillusioned and do not

put in their utmost. The simple reason could be that the leadership style is

inappropriate and out of step with the cultural and team norms. In Zambia, the power

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distance, perhaps influenced by the cultural and traditional managements beliefs

account much for the problems at hand. In extreme cases, the team leader becomes

self centred, disregarding anyone else. Some leaders personalise everything and treat

the project as their own farm or house hold totally trashing professionalism. Other

problems beyond the scope of this book could also be summoned.

Diverse cultures and orientations

Due probably to our diverse background orientations, our perceptions, values and

inclinations play a critical role on how we respond to the world around us. Some are

brought up in a time conscious culture while others use the sun to determine their

activities whilst others still place so much importance on interpersonal relations

(knowledge of each other) that impact on their responses to the world. Those that

value time are always on target and feel extremely uneasy if things correct or not, are

done at the wrong time. The other extreme is true for the other group who are always

reacting to circumstances rather than proactive. Now when all these characters are co-

opted into one team, the drama begins! One will be pulling in one direction at

lightning speed while the other will be half asleep! Not a little tension and acrimony

results. If this difference is not recognised early in the project life, the tussles continue

on and adversely affect the team effectiveness. Some eventually quit and head

elsewhere and the cost of replacement is quite high, having invested so much in

individuals. Griffin, in his classic management book tells of a case where some

Japanese and American engineers constituted a team to work on a project of mutual

interest. There was chaos in the team to the extent that the project nearly failed. One

part of the team had some preferences, like working long hours with no breaks in

between while the other was so time conscious and took frequent breaks at the right

time. The one loved open low open windows while the other preferred high closed

windows. These little things brought untold wrangling and acrimony. But it is good to

know that diversity is good and extremely profitable once correctly harnessed and

approached.

Differing ambitions

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With the advent of the generation X, there is a clear difference in the way people

perceive life. Their world view is totally different from the previous generation. While

Generation Y workers are content to progressively development their wealth base

over time, Generation X people are different, they demand instant results. Be that as it

may, people from the same generation have different ambitions and thus will react

differently. One would like to buy a house in the first year of employment while

another would not mind getting it the next year or prioritise something else. These

differences eventually come to bear on the team dynamics as well as how people work

or relate to each other. Having worked in projects for over a decade, the writer is fully

alive to this issue. But then, people respond differently to issues pertaining to their

ambitions. Some quit while others hang in there hoping things will change in due

course. This attrition, if severe, adversely affects the organisation.

Low motivation

One of the major killers of project progress is the issue of motivation. If staff are not

motivated, they find ways to vent out their frustration. Some of the ways may include,

back biting, pilferage, corporate sabotage, malice, late coming, absconding, increased

absenteeism, poor interpersonal relationships, unhealthy suspicions among many.

Once one enters an area of low motivation, it shows as people are indifferent, exhibit

little or no enthusiasm and to some extent careless with project assets. In Zambia, the

major motivator is the amount of net take home pay though this is not the only.

Competition rather than collaboration

Projects can be interesting places sometimes! Instead of being a haven for

development and peace, it sometimes turns out to be a place of aggressive competition

against each other! What suffers in the end are other vulnerable team members as well

as the project progress because people are busy outdoing each other! At other times, it

may not be amongst the immediate team members themselves but tussles between

sister projects which are supposed to be complementary to each other.

Imaginary dividing walls (by departmental walls)

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This happens all too often. People profess to be world class team players but in

practice defend their turf or ward off any intruder at any and every cost. The

imaginary silos do more harm than good in that they inhibit cross functional team

work as well as prop up red tape, bureaucracy and acrimony. Granted, we all need

privacy to do our respective tasks and callings but there is need for flexibility and

openness if a project or indeed, any entity is to succeed. Jack Welch23, that legendry

leader, loathed bureaucracy so much that he determined to kill bureaucracy, along

with it, the dividing walls of hostility. He believed in a boundaryless organisation that

facilitated learning from any point, anywhere, anytime. Since we are generally boxed

in our thinking and value our privacy too much, there is a tendency to hide

information and work solo and independently. While it is good to be independent and

competent, we cannot do without others. This leads to tearing rather than building the

team.

In the quest to build the team, it is prudent for us to consider the team building cycle

so that we learn how best to build the winning team that will consistently score as

long as the project lasts. We briefly consider the team building cycle.

Team building cycle

Team building is an arduous but rewarding task and exercise. It is arduous in the

sense that to get any meaningful semblance of a team, there is a lot of work

involved, the hours, efforts, costs and disappointments along the way. Sometimes,

the very people intended to be on the team are the very ones that turn round and

repeatedly tear down any tangible progress achieved. On the other hand, team

building is a rewarding task because of the elating results that it brings about the

fore. In an ideal situation, there are higher quality results, over lapping, continuity

and self managing, not dependant on one individual to get things going. A team-

building model developed in America best summarises the team building cycle or

phases. The first time people meet, they hardly know each other and

unconsciously start by sizing each other up (forming) followed by the red cards,

tussles, tip over and antagonisms as people get to know each other in terms of

their limits, temperaments and preferences (storming). At this stage, a lot of sparks 23 Stuart Crainer’s “The Jack Welch Way” is instructive, pp 115

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ensue and can either make or break the cycle. Once that critical stage has been

successfully crossed, people begin to settle down, know each other, and avoid past

pitfalls. At this stage, people sufficiently know each other and can safely joke,

brainstorm or tease one another without major repercussions (Norming). Having

known each other, their attention now shifts towards achieving results, since the

preliminary hurdles have been cleared out of the way. At this stage, people are

issue based, goal and target focused and will not easily be detracted by criticism

since they view challenges as opportunities and stepping-stones to the next level.

At this stage, the team is mature and self-managing. The petty power politics,

suspicions or daggers are long hurled away in preference for team effort and goal

getting. Many so-called teams rarely get to this mature refined stage in Zambia,

though exceptions exist.

The diagram below summarizes the team building cycle:

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American Model

Chaos stage

In this text, we have further refined this model by adding two stages prior to the

forming stage highlighted in the previous diagram. Our two stages emphasize the

point that before people ever come to the organisation, they are outside the system

which we can consider “roaming” around with no particular aim as regards the

FORMING

(Start)

NORMING

PERFORMING

STORMING

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organisation. Of course we know that they are part of other systems, teams and so

forth far from this system and have different orientations, goals, aims and ways of

functioning but when they take a step to join the firm, they come with hind experience

and disengage from the previous attachments. As they resolve to come, they pass

through the various induction phases such as interviews, orientation, negotiation,

contract signing etc and then subsequent entry on board the organisation. This whole

phase constitutes what I have elected to call the “coming” stage because it is a

conscious deliberate step on the individuals part to enter a “corporate employee pool”

from which the teams now begin to take shape. The model below highlights this

thought pattern:

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Refined American model

Chaos stage

[ Chaos stage ]

Equation: Roaming-> coming-> forming->storming->norming-> performing

Start

ROAMING

(Start)

COMING

FORMINGSTORMING

NORMING

PERFORMING

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Once on board, the hired staff cadre join their respective departments/units and areas

of specialization. This constitutes a dormant stage where groups exist and people

focus on their specific work area, passing on their output to the department head who

consolidates everything to make one report. If a functionary fails on their part, the gap

is clearly spotted and incumbents are penalised for their error. Furthermore, this is the

raw material stage for potential teams. As organisations realise the disadvantages of

groups, they opt for teams that are cross-functional which demolish the imaginary

departmental walls. This allows for information free flow, idea exchange and higher

quality output and outcome. To attain this fine performing stage is not easy, much

work, time and effort as earlier intimated, goes into this maturation. Apart from hiring

the right staff with the correct competencies, you need to integrate them into one

cohesive front that operates like hand in glove. To have an organisation that works

like the human body is marvellous because it will not only respond to stimuli but also

proactively position itself at the right place. A number of team building

techniques/approaches have therefore been suggested in the ensuing section and worth

serious consideration. Remember that these are but suggestions, you are advised to

think of other equally potent ways appropriate to your context:

Suggested team building techniques

These exercises are designed to build a cohesive team and the best way to build unity

of purpose in the organisation is to first make team mates realise the goal and benefits.

As opposed to working as “stand alone units” or concentrate on destructive

organisational politics such as position jostling, back biting and devouring one

another, the team players are made to realise that unless they pull together, they must

necessarily sink together and all lose out. To achieve this, the strategic team builder

should use various methods such as:

1. Making people have unity of purpose and goal. The leader should endeavour

to pull along the friends in a smart but systematic way to the extent that they

begin to see the whole picture, the pros and cons of what the organisation is

about or intending to do.

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2. The managers from different places of the same organisations should go off

together for team building exercises. This should preferably take place away

from the hustle and bustle of life with cell phones and land line phones

banished unless the critical calls. At that far-flung place, the managers should

engage in physical exercises such as mountain climbing, swimming, soccer,

relay race, boat cruise or going down some steep cliff. The exercises should be

designed in such a way as to enhance interdependence, connectivity and

teamwork. For instance, a team could go to a place like the boiling pot at the

Victoria Falls. In getting to the pot, a steep distance of over six hundred metres

has to be traversed. Along the way, the participants encounter a number of

things like the steep rocks, monkeys, a stream and some thick vegetation.

Strange sounds from Mother Nature are also heard. On arriving at the pot, they

see the marvellous swirling flow of water, relax and then head back uphill.

The journey back is the most challenging and many may fall by the way side

but others will pull them along until the original starting point is reached. The

team members then can go for a swim or continue on to soak in the Victoria

Falls spray. After all the fun, the team will definitely be more cohesive if

people are sincere and open with one another. Another place is the outward-

bound camp in Mbala, a secluded and quite place far from the conventional

civilisation. The scenery is good and ideal for brainstorming and team building

exercises. Akin to the boiling pot experience, the Mbala place is

recommended. Some other places include the Chishimba and Lwitikila falls

(Kasama and Mpika), Shiwa Ngandu (Chinsali), and the Chinyunyu hot

springs (Chongwe) among others.

There could be other places that have mushroomed across the country recent

years and the various management teams must take advantage of this. In a

nutshell, the watchword is innovation and tact to make the team glue stick.

Further, the team could elect to play games such as volleyball or tag of war.

These games make people pull together.

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3. Another way to build a team spirit culture is having regular brain storming

sessions where the Chief Executive Officer (CEO) or Project takes off his/her

status and contributes like any other person. The average African boss has

such an enormous power distance to the extent that it is nigh unthinkable to

view them apart from their office. But that notwithstanding, the ideal leader,

can and will delve to the lower orbs without much ado and intermingle with

everyone. In the brain storming sessions, the atmosphere is meant to be

informal where every one can say whatever they please whether it makes

sense as long as the general context is kept in focus. In other words, a subject

is laid before and all sorts of ideas are allowed, including the wild and weird

ones. At that stage, no one is right or wrong but as the team deals with issues,

they pick out the helpful ones while the less appropriate fall by the way side.

This brain storming exercise has a way of building objectivity, openness and a

desire to connect. Despite the fights and sometimes violent reactions, the

people know each other and subsequently build life long friends. In other

words, the friendships transcend the office as people become colleagues.

4. Once in a while, teams should spend time together by way of partying or going

out together just to have an informal time together. Socials could even extend

to the entire organisations at particular times, for instance at Christmas times.

Care must be taken here so that the focus is not lost.

5. Go rafting together as a team. White water rafting is one of the most exciting

activities one would ever undertake. The Zambezi rapids are said to be among

the most exciting in the world, meaning that they are some of the most

dangerous! Once the team commences the five hour trip down the gorges, they

entirely depend on one another for survival, for they go through places where

no man lives. At the end of the exhilarating trip, people have had fun together

and get bonded to one another. The Sobek expedition will have done its work

by giving you the rare treat.

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6. Watch the ants at work! If possible, create an area where ants can freely do

their thing while you watch and interpret as a team! Proverbs 6:6; 30:6

7. Another team building aspect you could consider whilst out there is to divide

the entire team into smaller competing groups and then give the groups one

puzzle which they will have to solve as a team. The wining team gets a prize.

A suggested puzzle is to let them hang sixteen nails on one (The seventeenth)

plus a plank. The first team to complete the task will be applauded. Watch

how they feverishly get to work as a team! See the Beaver like diligence!

Boat cruise, sports (e.g. football matches), group work etc. Closely connected to an

earlier point, in a workshop or conference environment, the work pressure is likely to

be high and knock out some. It is refreshing to have some team building activity such

as some popular sport, boat cruise group work, bus ride to some place, visit to the zoo

or any other interaction providing a resting valve. The next day, every one will come

to the meeting place exhilarated with something to talk about and look forward to

some more. Do not worry about those aching muscles, it is part of spicing up the

activity.

Culture

Culture has to do with the value system as a way in which a group of people operate

together. In this context, we are talking about how an organisation elects to operate

and conduct its business consistent with what has been spelt out in the mission

statement. In short, culture refers to the values, approaches and ways of doing

business. For instance, some projects and companies have espoused a teamwork

culture and whoever is to get on board must subscribe to this culture or else not be

hire, or be swiftly removed should they fail to two the line. The reason is simple, they

may infect others with the wrong virus and thus bring about team dysfunction. In

progressive entities, culture plays a major role in organisational success. To achieve

this objective, people must be oriented into the team immediately they get on board,

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“while the iron is still hot”, as it were. One organisation uses different formats that

includes, workshops, CD, policy documents as well as visiting the respective projects

around the country. That way, a person gets whole rounded in approach and would

most likely contribute appropriately or press the “eject” button should they realise it is

a wrong fit.

Philosophy

A philosophy is closely knit to a culture but this is different in the sense that it is a

system of believe or approach to something. For instance, Humanism is a philosophy

which focuses on man being at the centre of everything and thus, everything else that

is done points to the human being at the centre. A philosophy may not necessarily be

correct or the best way of doing something but that is what someone is convinced of

and thus disseminates it to others who buy in. Thus, if the philosophy is to hire the

best staff on any program or project team, then the entity will fashion its recruitment

drive in a way consistent with its philosophical approach. Organisations also need to

drill people in their philosophy immediately they hire or else they invite future

problems and backlash. For instance, Microsoft has a team culture and continuous

improvement philosophy. Thus, any one getting on board must subscribe to these

tenets.

Some frequently encountered challenges in project and program managementLike any other entity, project and program management is often beset with many

surmountable or insurmountable challenges, hence the need to hire competent project

managers and teams. From the start, projects have their own challenges which

impinge on their effectiveness and efficiency contingent of the complexity and critical

nature of the risk of challenge. One way or the other, each project has its down side as

well as its bright side which must be meticulously handled lest the program lands into

a ditch and dismal failure. Examples abound of projects that have been completed but

the ramifications still haunt us today. For example, while the Kariba Dam

construction was a major undertaking with immense benefits derived from it to this

day, the down side is that some animals and people were displaced forever without

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being compensated (humans). Further, the displaced people were pushed to the upper

infertile lands as well as others permanently cut off from their relations across the

river. To date, the displaced valley Tonga people around the lake are disoriented and

to some extent bitter. Another downside is that some rare bird species and varieties

were displaced and one wonders whether a comprehensive Environmental Impact

Assessment (EIA) was done to take into consideration of all environmental concerns

contributing to degrading the planet in peril. But from another perspective, millions

are benefiting from more than two countries compared to the few native inhabitants

who once roamed and cultivated the valleys decades ago. Some other challenges

include corporate sabotage, dysfunctional teams, organisational politics, cartels and

subjectivity among many others.

In this section then, we highlight some of the common problems faced by projects

across the world and offer some possible solutions to these. We shall do this in tabular form

so that our work becomes easier to grasp and execute.

Problem Cause Effect on

project

Proposed

solution

Delayed funding Delayed reporting or

feed back to

donors/funding source

*Implementation

disturbed and in

disarray leading to

panicking.

*Stakeholders/

partners’

commitment and

trust disturbed.

*If funding is

contingent on feed

back/reports or on

imprest system,

timely reporting is

recommended.

*Also get the best

competent

finance staff

Delayed

implementation

*Funding hiccups

*Stake holder apathy

& indifference

*Project not on

target

*Panic later on in

*Program well

bearing in mind all

possible

hindrances e.g.

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*Wrong timing and

poor programming

project life

*In extreme cases,

sponsor terminates

project.

*Donor fatigue.

*More costly for

the project.

farming season,

materials

availability etc.

*Continuous

stakeholder

engagement as

well as regular

mutual updating.

*Only retain the

best staff on your

team for better

results.

Sour relations

with sponsor

*Poor or no feed back.

*Little or no progress

on project.

*Unexplained delays

*Doing what was not

initially planned for or

mutually agreed upon.

*Suspension of

funding.

*Donor/sponsor

withdrawal.

*Good will and

mutual trust

disturbed.

*Be timely.

*Give timely and

correct feedback

(i.e. Reports,

pictures, impact

stories, significant

changes etc)

*Continuously

engage sponsor on

the triumphs and

challenges of the

project.

Premature

project closure or

reduced funding

*Sponsor/Donor

dissatisfaction.

*Target community

loses funding.

*Prepare and exit

strategy.

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*Theft

*Acting “ultra vires”

*Little or no progress.

*Fund sourcing

problems(e.g. as result

of global economic

meltdown or change

of government etc)

*Job losses

*Half done jobs

remain as white

elephants in

community.

*Product/service or

community

development

retarded.

*Transition well

ensuring all

stakeholders

understand exactly

why the project

has closed,

drawing lessons

there from.

Weak outcome *Incorrect assessment

of problem.

*Weak or lack of

commitment to

project by target

beneficiaries.

*Programming was

weak and thus wrong

activities or correct

activities done at the

wrong time.

*Weak or no “buy in”

by stakeholders.

*Killer assumptions

and risks over take

project.

*Donor/sponsor

dissatisfaction.

*Disillusioned

community.

*In some cases,

dependent

communities.

*Ensure correct

problem

assessment and

identification

takes place at

initial project

stage.

*Conduct EIA at

the beginning to

forestall future

backlash.

*Secure full stake

holder

commitment from

the start.

Document this

commitment.

*Schedule

activities correctly

and ensure

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resources are

available at agreed

times.

Dependence

syndrome

*Incorrect entry

processes.

*Different messages

to the community by

staff team.

* Terrible

ramifications after

project phase out.

*Partners stop at

output level as long

as project in

implementation.

*Target group

abandon indigenous

survival/coping

mechanisms and

become dependent

on project.

*Community worse

off than before

project

implementation.

*Initiative and

innovation killed or

reduced.

*Intended outcome

thwarted.

*Speak on unified

voice as a team.

*All staff team

members should

be abreast with the

latest

developments.

*Careful with

wording in initial

and subsequent

stages.

*Consistency

throughout project

phases.

Unresponsive

partners and

stakeholders/pass

ive resistance.

*Inconsistency in

behaviour or approach

by project team to

partners/stake holders.

*Delayed project

implementation.

*Poor quality

*Continuous

engagement of all

partners and

stakeholders.

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*Unexplained actions.

*No feedback.

*Disillusion by

community/stakehold

ers by not getting the

expected project

“goodies”

*Community/Target

group not

understanding the

project cycle.

*Clandestine acting

by project team.

*Lack of transparency

by project team

*Wrong timing of

activity (e.g. during

farming season etc)

output.

*Indifference.

*Consistency in

approach and

behaviour.

*Reverting to

Memorandum of

Understanding

(MoU) as you

argue/negotiate.

Hurried (rush

hour) spending

*Delayed project

execution.

*Unclear terms of

reference (TOR).

*Poor budgeting and

projection (asked too

much at the wrong

time)

*Too stringent

*Increased risk to

project resources.

*Abuse

*Over working staff

*Activities not

allowed to

“simmer” so that

they properly

contribute to the

*Ensure

implementation

plan is well done

and in sync with

all

partners/stakehold

ers’ schedule.

*At time of

signing

cooperative

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proposal (budget)

conditions e.g.

allowable or

disallowables

*Incompetent staff

team.

next level hierarchy

of objectives.

*Project appears

good at output level

but not outcome.

agreement/project

document Terms

of Reference,

(TOR), MoU

contract etc) with

sponsors, ensure

only realistic

conditions abide

in the document.

*Ensure frequent

and regular

consultation and

mutual feed back

with stakeholders.

*Assemble the

best team possible.

Huge back log

(e.g. funds)

*Procrastination and

laissez fair attitude by

all parties concerned.

*Weak or no

monitoring.

*Incorrect

programming

*Project viewed as

inefficient.

*Team management

competence

doubted.

*Donor/Sponsor

confidence affected,

mostly negatively.

*More costs on

repeat jobs.

*Strictly follow

implementation

schedule.

*Institute

mechanisms that

ensure constant

monitoring and

implementation

e.g. weekly plans

of actions (POA).

Poor quality

results at output

*No one is held

accountable.

*Donor

dissatisfaction.

*Embed quality

within the system.

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level *Lack of quality

monitoring tools such

as M & E plan, ITT

and variance

reporting.

No set standards

*Pull out from

project by sponsors.

*Discontentment by

target group and

other actors.

*waste of valuable

scarce resources.

*Make much of an

issue who is

engrafted into the

project team, are

they performers?

*Ensure

mechanisms and

systems are in

place e.g. M & E

Plan, indicators,

ITT, financial

reporting etc.

*Hold some one

accountable at

every stage.

Set binding

standards

‘White elephant’

phenomenon

(e.g. the

community does

not identify with

or abandons a

project or

structure)

*Community/

stakeholders not

involved or over

looked from start.

*Stakeholders do not

fully understand,

appreciate or

comprehend the

project, its cycle and

implications (No buy

in or shared vision).

*Exit strategy for

*Vandalism

*Theft

*Abandoning

*No maintenance as

target stakeholders

do not appreciate

project goal or

process.

* People are worse

off than before as

community

*Engage

partners/stake

holders from the

start throughout

project life.

*Consult

community at

every turn. Avoid

a top down

decision making

routine but the

other way round.

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project not good

enough.

*Stake holders not

adequately or properly

trained for project

close out.

*Strategic thinking

and acting weak or

lacking by community

and project

implementer.

structure has been

disturbed despite

the good intentions

of the project.

*Hand a copy of

the project

document from

start to end to

stakeholders.

*Project ‘hand

over’ should start

as soon as project

implementation

commences, do

not wait till the

last.

*Continuous

training of target

group so that they

can lead their own

development

processes with or

without your

intervention

(community led

response).

*Secure buy in at

or before project

start

Delayed

reporting/feedbac

k to donor

*Incompetent staff.

*Unclear standards or

deadlines.

*No definite reporting

*Donor displeasure.

*Funding delays.

*Bad image

created.

*Hire competent

staff.

*Review present

systems and

ensure they work

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date/deadline.

*Delayed

implementation thus

nothing to report on

deadline, thus buy

time and report late.

*Weak time

consciousness (i.e.

time orientation)

*Differing time zones

some times (e.g. if

sponsor is in Australia

and project site in on

cape Verde island.)

*Misunderstandings

.

well and are

relevant.

*Review

organisational

structure and re-

engineer or

reorganise.

*Set realistic

deadlines.

*Be proactive and

beat those

deadlines!

Inaccurate

reporting

*No M & E system in

place.

*Infrequent visit to

project site.

*Incompetent staff.

*Poor audit rating.

*Donor withdrawal.

*Loss of sponsor

goodwill and

trust/confidence.

* “Capital flight”

*job losses and thus

negatively

impacting project.

*Strong

monitoring system

put in place.

*Strengthen

quality within the

project (e.g.

quality reviews

etc).

*Counter check

and validate the

report by on site

visit(s).

Project extension *Delayed

implementation.

*More costs

incurred.

*Diligently follow

implementation

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*Target outcomes not

realised.

*Target outputs not

realised.

*Weak project

management team.

*Confidence levels

in project team

drops.

*Project may not be

replicated

elsewhere but

permanently closed.

schedule.

*Negotiate such

extension well in

advance.

*If possible, settle

for a no cost

extension.

*Do a fantastic job

in the “grace

period”.

Unrealistic

expectations

from

stakeholders (i.e.

sponsors, donors,

customers,

communities etc)

*Unclear objectives

from the start.

*Not stating mission

clearly from the start.

*Over stating your

project goals and

intentions.

*Differing statements

from same project

team over project

goal/intentions.

*Stake

holders/Partners

react negatively if

project does not

deliver according to

expectation.

*Disillusionment

*Hidden suspicion

of being “ripped

off”. Evil

suspicions

promoted.

*Gossip, malice and

passive resistance in

the

community/partners

*Set the tone and

be consistent in

what you say from

the start.

*Revisit your

entry processes

and state your

mission from the

start.

*Continuous

stakeholder

engagement.

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.

Sabotage or

boycott

*Frustrated

staff/partners.

*Disagreement.

*Theft/pilferage

*Acrimony

*Back stabbing.

*Malice, envy,

backbiting etc.

*Wastage of project

resources.

*Dysfunctional

project team.

*Attention diverted

from core issues-

development.

*Get buy in from

all stakeholders.

*Identify root

cause and get rid

of it.

*Transparency

and frequent

dialogue/mutual

feedback.

*Meticulous

monitoring of

potential problem

spots.

*Negotiation and

reasoning.

Misunderstandin

gs with civil,

political and

traditional

leaders (e.g.

political

interference,

suspicions etc)

*Insufficient

information

dissemination.

*Inconsistency on the

project team’s part.

*Unfulfilled promises.

*Abuse and ill

treatment of

community/stakehold

ers.

*Political

*Delayed project

implementation.

*Opposition.

*Sabotage.

*Hostility to project

and staff.

*State clearly your

allegiance from

the start.

* Political

engagement.

*Dialogue and

transparency.

*Involvement of

these stake holders

as well throughout

project life.

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engagement.

*Secrecy and

clandestine

manoeuvres.

*Regular mutual

feedback and

updating.

*Good public

relations (PR).

Arson (rare

though)

*Frustration.

*Evil suspicions.

*Secrecy

*No feedback to

stakeholders.

*Project loses

property.

*People keep away

and project stalls.

*Continuous

engagement.

*Proper security

around project

assets and staff.

*Become

‘politically

correct’.

‘Turf battles’,

territories and

labels

*Frustration.

*The race to be in the

limelight.

*Donor support rush.

*No proper regulating

ethics for all players

in the industry.

*Desire to please

donor and get all the

credit for success

stories.

*Project politicking.

*Competition

instead of

collaboration or

networking.

*In fighting

*Attribution to

various stake

holders.

*Collaboration

and networking

realising we are in

an interdependent

world and age.

*Information

sharing and

‘seeing the big

picture’.

* Contribution at

outcome level.

Double dipping *Lack of information *Waste of scarce *Create a local

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and reinventing

the wheel

sharing.

*Desire to please

donor without

connecting with local

actors.

*Selfishness

(egocentrism)

resources.

*Less community

development.

*Same people

benefit and

eventually become

wasteful.

*Acrimony in the

community.

data base

accessible to all

stakeholders.

*Frequently

compare notes.

*Share goals and

see how you can

collaborate.

We have briefly surveyed the integrated program landscape and must now hurtle to a

conclusion. As can be seen, the program equally needs to be meticulously managed so

that the best quality standards are adhered to and upheld lest the program be mediocre

in output. If it is not well handled, it can exist through its life span and leave no

lasting impact and at times leave dysfunctional white elephants. This quality is

guaranteed by the right staff, M & E approaches, embedded quality, frequent

reflection and application of right emergent strategies, long range strategic thinking

and acting, adopting lean and agile systems, reading the times, correct positioning and

breaking down the separating imaginary silo boxed kind of thinking that divides

departments fostered by the departmental walls. In a nutshell, the operation gears are

the ones that make things work. If the wrong leaders, team members or policy makers

are at the helm, be sure to end up a dismal failure as the program attempts to swim to

shore. Qualitative integrated program management pays dividends and brings about a

synergistic outlook to the intervention area. A well planned and implemented program

will yield longer lasting impact on industry, community or country. Investment into

Research and Development (R & D) programs is the need of the times rather than

specialising in reactionary measures as has been the case hitherto.

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Implications of delayed project or program implementationIf for some reason a project or program delays, a lot of things are thrown into

jeopardy evoking many of rippling dire effects along the line, some are very critical

while others insignificant. Whatever the case, delay is neither encouraged nor

desirable unless by mutual consent and agreement with the sponsor because each

stakeholder would like to see tangible results. To demonstrate why delayed

implementation is bad, we have attempted to list the off shoots of this delay may be.

1. More costly (in cost or no cost project extension)

2. Quality compromised

3. Interest and commitment may decline from stakeholders & partners

4. Complicates matters (i.e. partners inconvenienced)

5. Loss of business and funding (e.g. The Freedom tower deal with the Chinese)

6. Good will and image scarred

7. Risks increased (e.g. the recent global crunch, inflation, political, economic,

technological, social, globalisation leading to obsolesce etc)

7. Waste of resources may result (e.g. market research results, survey needing to be

redone etc)

8. Disfiguring the ultimate product or outcome as context may have evolved or

mutated with different actors all together. The long sought after lasting change may be

over taken by other events (e.g. Kopa ADP and ZamPalm, HIV pandemic etc)

Grant Management snap shotGrant management has been around for some time and involves funds from specific

donors, especially Governments. By definition, a grant is a gift and thus not to be paid

back though there are strings attached to its use and project execution. Different

funding sources such as AUSAID, NORAD, DFID etc have their own unique

requirements on the use of public funds in a foreign country. These conditions

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stipulate what can be done or not done using those particular funds as per donor

requirement. Each donor has expectations, rules, regulations as well as what they

expect to see with the use of their money. For instance, in supported USAID (USA

Government International development wing) projects, there are regulations termed

“Allowable” or “Disallowable” to regulate the grant execution. If any one does an

activity outside or beyond the set parameters, the grant will not absorb that cost

because it is termed “disallowable” meaning that the implementer rather than the

grant will bear the cost. Depending on the project document, certain things are

permissible (directly related to the project, as well as made in America, “Buy

America”) and expected while others are flatly forbidden (e.g. fire arms, bombs,

terrorist acts etc) or allowable with prior consent from the funding agency in

exceptional cases (e.g. using an airline other than a US airlines on international

travel). Thus, grants need to be meticulously handled ensuring that the laid down

regulations are adhered to. The project document stipulate what type of agreement has

been entered into as project agreements are of different types. A cooperative

agreement entails substantive involvement of the donor agency throughout the

projects life (i.e. the donor has a say and influence on project execution, sometimes

even interfere!) while other agreements give the implementer leverage and freedom to

implement without interference from the donor agency as long as they observe the set

parameters. When managing a USAID grant, just bear the following in mind with

respect to project expenditure: Costs should directly relate to the project. Remember

the acronym “NRA” meaning that the costs or expenditures must be Necessary,

Reasonable and Allocable to the grant. If the cost does not fit into this structure, then

it is disallowable and keep away from it. In evaluating the grant execution quality,

these conditions will be borne in mind and may lead to project premature termination

or even extension.

It is high time we transitioned. In the ensuing unit, we consider why numerous

companies and projects fail despite employing many world class quality systems &

strategies.

Case study 1

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The Fall of Quest

Note: This case study is mainly based on the recent troubles (1999) of a real computer

manufacturer.

1997 was a banner year for Quest Computer Corporation, a leading manufacturer of

personal computers. The company surpassed $15 billion in sales, nearly seven times

its revenues in 1992, the year John Clarke took over as CEO.

Clarke is a hard-driving, no-nonsense leader. His vision was to create a $30 billion

enterprise by the year 2000, but things were slowly started to crumble around him.

What once had been an open and productive atmosphere that cultured teamwork, was

now deteriorating under the strains of political infighting, cronyism, and allegations of

sexual harassment.

In the eye of the storm was Samuel Anderson, vice president of human resources.

Anderson and Clarke worked together in the eighties at another corporation before

Clarke came to Quest in 1992. Three years later Anderson followed. Anderson

immediately started using his relationship with Clarke to influence business decisions.

Anderson also leveraged his ties to discreetly resolve two allegations of sexual

harassment against him.

Although the majority of senior executives and managers believed Clarke was an

extremely tenacious and good executive, they also believed he was getting bad advice

and accepting it. Clarke, when asked about the sexual harassment complaints against

Anderson, replied, "People make things up. There is no way of knowing. People

spread rumors." This and other incidents further strained relations between Clarke and

the rest of the senior executive team. Busy with the task of running one of the world's

leading PC manufacturing organizations, Clarke began relying heavily on three senior

executives - Anderson, Senior Vice President Tim Hunt, and Chief Financial Officer

Barry Lynn.

The rest of the team felt increasingly alienated. Over a three-year period, starting in

1996, 10 top executives left the company and following them were several essential

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managers and supervisors. At the centre of this exodus was the bizarre dynamics

between Clarke and Anderson. Many believed that Clarke empowered Anderson to do

things way beyond his role in human resources. For example, Anderson had

significant influence on changing the organizational structure of the company,

determining what divisions ought to sell into what markets, and which products

should be sold through various departments. He also took steps to drive a wedge

between senior executives, strengthening his position with Clarke while inducing a

communications breakdown throughout the organization. Anderson had a list of

people whom he would constantly campaign against by advocating organizational

changes to lower their profile. Once he lowered their profile, he would start a process

of easing them out of the door. As one executive put it, "Anderson was instrumental

in deciding which people to bring in and which were no longer acceptable in the

company."

Clarke's reliance on Anderson baffled, and angered, other executives. Anderson was

very close to Clarke, and he had a huge impact on the business. Human resource

professionals usually do not play that kind of a role, as they are supposed to try to

bring the team together, but all anyone saw Anderson doing was creating divisiveness.

Instead of working together to fine-tune a coherent growth strategy, Quest's senior

executive team became disjointed and increasingly detached from the rest of the

company. Their inability to lead soon had an effect on the morale of almost every

employee within the company.

Two of Anderson's initiatives drove home the point of an executive team that was out

of touch with its workers. The first initiative was the building of a multimillion-dollar

on-campus cafeteria that included reserved underground parking for senior

executives. Prior to that, executives shared parking space with the rest of the

company's employees. The second initiative was the increased security on the eighth

floor of the corporate building. Here the executives and several key managers had

their offices; even though every other executive objected to the idea by arguing that it

created a hierarchical environment not conducive to a free exchange of ideas with

subordinates.

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Anderson was at the centre of almost every bit of chaos that existed within the

company. Clarke denied that Anderson had undue influence. "Every executive has the

same access to me," Clarke said. "I have always had an across-the-board relationship

with everybody. I always maintained a high degree of equality. There was no

favoritism." Clarke also maintains that Anderson had "very good relations with just

about everybody." Anyone who says otherwise, Clarke added, must "have an ax to

grind." Many former executives said they were reluctant to complain to Clarke about

Anderson because Clarke took personal offense, as if he were being criticized, and

because they feared winding up on Anderson's "list."

The erosion of the executive team came at a very bad time. Its main competitor was

starting to grab big chunks of PC market share by proving the viability of the direct-

sales model. When Clarke replaced the former CEO in 1992, his aggressive price-

cutting initiatives reversed Quest's direction and led the company to the top of the PC

market. But now, Clarke was much less decisive. As one former executive noted, "He

was paralyzed by the speed with which the market was changing, and he couldn't

make the difficult decisions." Clarke failed to see the opportunity of the web. Its main

rival was now selling over $2 million worth of products per day over the Web. In

1998, its rival surpassed Quest in desktop PC sales to U.S. businesses for the first

time.

The high turnover in the sales divisions led to instability that caused several high-

profile corporate accounts to take their business elsewhere. As people left, the

performance of the company started to degrade. Quest attempted to construct its own

build-to-order strategy by purchasing a rival company. This failed as it had no vision

to guide its direction.

Finally, things came to a head. Quest could not significantly reduce distribution and

manufacturing costs or boost PC revenues. Huge oversupplies of inventory adversely

affected Quest. While its main competitors grew at about 55 percent from the first

quarter of last year to the first quarter of this year, Quest's business fell by 11 percent

over the same period. By the end of this year's first quarter, Quest's stock lost almost

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half its value, and the company's first-quarter earnings fell far short of analysts'

estimates.

Then came the kicker, the forced resignations of both Clarke and Anderson. The new

CEO, Paula White, now has the massive job of turning a lot of infighting rank and file

into a cohesive organization. The leadership structure was severely damaged due to

the large number of people leaving Quest. Although a large number of replacements

were found, it is extremely hard to replace the collective experience of that many

people leaving in such a short time. To help rebuild the leadership structure, Paula

White has charged the interim human resource vice president, Samuel Wines, with

rebuilding the leadership structure. Samuel created a special leadership task force

team by hiring several new human resource specialists. You were brought on as a

training analyst to be a part of that team.

© Clark, D. R. (2004), Instructional System Design Concept Map. Retrieved April 1,

2009 from http://nwlink.com/~donclark/hrd/ahold/isd.html

Case study questions

Visit the following site http://nwlink.com/~donclark/hrd/ahold/isd.html and analyse the

case. What exactly was the central problem at this entity? How could it have been

remedied or avoided?

Why do you think Quest flourished?

What was the central problem in this organisation and how can we relate this to

project management?

How does this case demonstrate/illustrate the centrality of effective and proper HRM?

What is your view about the HR function in this entity was it too unduly powerful?

Justify your answer.

Do you think one individual has the capacity to disrupt and possibly demolish team

dynamics? Explain your answer.

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What lasting lessons do we derive from this case?

Case study 2

The Body shop International

This has been a dynamic shop network that has been lobbying various social

crusades especially those on the Environment. If one only heard about its activist

works, one would never imagine that the same entity could possibly produce excellent

products, whereas if one only knew about the excellent products, one could not have

imagined that this was the same unorthodox, blunt, rough and riotous shop! Yet both

these attributes mystically unite in this selfsame organisation!

For the body shop, it has meant changing all the time depending on the social needs

that confronted it. It has been built around the robust principles of Anita Roddick,

whose ways have been dubbed eccentric but highly relevant and profitable. Anita has

had a passion for social change and has successfully left her mark on the company

work culture. The Body shop has been an exciting and thrilling place to work at

because of the constant new challenges. But who is Anita and from whence does she

hail? What has she done and where is she heading to next? What prospects lie ahead

of the body Shop in ensuing years?

Anita Roddick begun the shops in 1976 and developed them. She, with the help of her

husband worked together and moulded the shop as they saw fit. Having owned a hotel

previously, they sold it to pursue other life long desires before Anita begun doing a

business based on natural herbs. The herbs business mainly focused on skin care, and

thus attracted women. With time, people developed confidence in the products and

thus, the shop picked up. It is now close to twenty years since the first shop was

opened and today, the shops are dotted internationally on the globe. Its presence is

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mainly in the UK but plans are under way to conquer more and new frontiers.

Although the body shop does not market its products, quality does it for the shops.

But who is Anita exactly? Anita descends from Italian-immigrant parents and has

some hind exposure to business although she never had any formal business training.

She got married to Gordon and turned their house into a hotel. As earlier intimated,

they sold it to pursue other things. It was whilst in that state that Anita begun a small

shop dealing with skin care, using natural ingredients. From one shop, the business

blossomed into a chain of shops that are a force to reckon with. Founded on Anita’s

strong principles of social good and environmental protection, the Body shop has been

so successful capturing international attention.

But what has made the Body Shop tick? What has been the secret behind the

phenomenal growth despite unorthodox business practices? For one thing, the body

shops have been a hive of activity, constantly changing with the times. A lot of

innovation takes place, is customer taste sensitive, strongly social and

environmentally conscious, possessing appealing, natural and personal attention to the

customer, responsive to the current needs and strategic in approach. In addition, the

goods are of high quality, the leader is daringly radical, possesses a good franchising

net work with a unique anti animal testing stance. All these attributes have blended so

well together so as to boost the company success while defying proven industry

norms. Further, we assert that the most important sources of this success have been

many.

The first source has been the environmental protection stand. Today, with the frequent

talk on the uncontrolled planet degradation, anyone raising a finger against this

scourge will receive a hearing. As such, the environmental crusade has highlighted the

body shop on the international scenario. For another thing, the unique and strong

community contribution thrust is an asset. The company believes that the company

has a moral duty to pay back, in some way, what is got from the community. This

stance alone is a powerful competitive advantage tool. Still further, the head of this

organisation, Anita Roddick, is a robust, diligent and candidly outspoken leader who

can not be easily ignored. When she yells from her tunnel, the world halts to hear her.

In addition, the ingredients used in the products are natural and do not allow testing

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on animals. The use of the environmentally sensitive methods receives a lot of

applaud from all corners of the world, thus the global acclaim given to the body

shops. It is a curious fact that the shops do not advertise, but the ingredients utilised

do the marketing.

Anita has been the single most powerful force in the company. Her management

philosophies are excellent though they are centred around her and are quite imposing.

If any will not toll the same line with Anita, they are surely on the warpath with the

iron lady. That not withstanding, she is an asset to the company in that she has led the

company to a strategic position, etching out a unique niche. Although there is a lot

more competition today, the shops continue to tower above rivals because Anita has

wielded certain potent attributes onto the company culture. For example, the company

is very sensitive to environmental and customer taste change, vibrant, agile, and

responsive maintaining high quality products. Further more, there is a lot of

innovation and ideas constantly flowing from Anita’s fertile mind. She has brought

about product changes, initiated projects, research and collaborated with powerful

NGOs to get mammoth tasks and changes done. Single handedly, she has resiliently

and valiantly stood against the world even in the face of major opposition from her

own employees. For Anita, dead orthodoxy is not relished but hounded out through

the window. Once she sees something and approves it, she will unflinchingly charge

like the Bull towards the goal, of course minding that the business continues to run

successfully.

Obviously, there are many lessons we can learn form such a dynamic company and

individual. Firstly we learn that if a company is to be successful in today’s hostile

business environment, it must be constantly alert and adjust with the times. This

means continuous improvement of products, be constantly learning, be more sensitive

to customers, maintain a “small company” atmosphere in the company, be agile,

contribute to the community, and add a “human face” to the company. Secondly, we

learn that a company must hire “Known quantities” as much as possible for these will

attract attention to the company. Not only should these be known people, but also they

must be creative, robust, resilient and diligent risk takers who will not mellow at puny

attacks. Anita is the very epitome of constancy. Thirdly, we must ensure that though

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star players are preferred, the must not be allowed to paralyse others. This is evident

at the Body shop where Anita is almost everything and no one dares cross her path.

This means that when she fizzles out from the business horizon, the company sinks

with her. An ideal situation is to have a “pool” from which to tap leaders. Anitas’

eccentric manoeuvres are uniquely good but their sustainability is questionable.

Fourthly, let it be noted that the company must be agile, fluid, unbureaucratic,

flexible, customer sensitive and must provide that ‘personal touch’ to their business.

Customers must feel individually appreciated and noticed. Myriad companies have

staggered to the company graveyard because of the loss of that personal and good

quality speedy service to customers. Fifthly, the company must maintain a clear

strategic mission that should, like the star that guided the wise men, lead the company

to its destiny without much ado. Sixthly, the unique and unprecedented product niche

must be guarded jealously. Not only must this be improved and expanded, but also the

products themselves must be improved continuously. The body shop is unique in its

social goals as well as in its use of natural ingredients. Others are copying this

uniqueness today but they cannot attain unto its unique prowess. From the afore

mentioned lessons, we can clearly see that the Body shop deviates widely from the

regular business trends. Although one’s hair stands on end when thinking about this

entity, yet a company can survive outside the norm, as long as it reads the times well

and acts at the right time. Timing and the right moves are what count. Having asserted

thus, let us be quick to say that it is safer to use the long tested and tried ways, though

with a strategic eye.

Looking at the way that the company has developed and evolved over the years,

especially in the UK, we have reason to believe that the body shop has a bright future

though this will be hard won. The business world is replete with companies that are

moving towards the use of the same natural ingredients that have hitherto made the

company have a strong uniqueness. The niche has scarcely been neither challenged

nor eroded. In the light of the emerging threats, it is imperative that the company

relocates to a more sustainable position that will strengthen the uniqueness. Among

the many things it will have to do it its quest to evolve into a better company is to

maintain and enhance its “personal attention” to clients, its sensitivity and

responsiveness to the changing demands and tastes of customers out there. Above all,

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the company must continuously be innovative, train human resource to take over from

Anita, and not lose focus on its community contribution ethic. Now that the body shop

is confronted with the titanic task of penetrating the American market, it must adjust

its gears very well because the issues it will face are fundamentally different from the

usual. For example, the American consumer tastes will differ. Further more, the big

social concerns such as the environmental crusades are not as hot issues in the States

compared to Europe. Added to the list of potential hurdles is the legal environment,

trade restrictions, approval criteria of products by the American authorities, the

difficulty to recruit people with a like passion as those else where in the body shop

network and the threat from more apt “copy cats”. One other concern is the age-old

stance of not advertising. On the American market, if a company will not advertise, it

will not be noticed and book a place among the company graves. These and many

strategies that have eked triumphs in Europe may not carry the day in the States. That

notwithstanding, the Potential market is there as long as the following are observed;

Firstly, the company should strategise, by initially carrying out a market research and

then looking for the best way to enter the market. One way could be to produce some

exceptionally high quality products that can be given free to some key clients for a

start. Powerful policies and structures that will ensure sustainability over time must

further support this strategy. We suggest that initially, only one outlet initially be open

and then spread wings depending on the performance of the same. As such, there must

be an allowance for a pay back period of say two years. This may mean running at a

loss for a while before breaking even. It would be wises that the shop hires “known

quantities” that wholeheartedly imbibe the Body shop ethics and who will fearlessly

champion the entity causes. Alternatively, the shop could identify the “Big” social

issues on American soils, adopt them and champion the same. Furthermore, the

community contribution must be elected carefully so that it is relevant. Natives could

be trained who will easily accomplish all these. In addition, we think that the Anita

grip over the company must be modified to allow more liberty for the shop mangers.

Apart from franchising, the company must now reconsider its stance on marketing. In

the UK, absence of direct marketing may work, but the American situation is

different, therefore, due care must be given. It is true that what has made the shops

thrive all a long has been the risky ventures and unorthodox methods, but this new

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prospect calls for walking circumspectly lest failure dents the company image. The

legal environment as well ought to be watched carefully and if possible, the best

lawyers and partnership/collaborations are sought. If an American partner can be

found, a partnership knot could be tied. Lastly, the company must strengthen its niche

by adopting new strategies that will highlight the uniqueness of the products. Topping

those qualities should be the high standards and usefulness of the products. The

community contribution must come in by and by though must be highlighted in the

mission statement too.

As Anita and colleagues peer into the future, what would you suggest they do? Should

they launch full throttle onto the American market?

SourceBower, Bartlett, Uyerterhoeven, and Walter, Business Policy: Managing Strategic

Processes, 8th Edition, Richard D. Irwin

Case study questions

What has distinguished the Body shop?

Would you classify Roddicks’ approaches to business as ethical and regular?

Mention two critical ingredients that have contributed to the Body shops’ success.

As the Body Shop prepares to enter the international market, what advice would you

give to its management?

What are some of the pitfalls and weaknesses of the body shop? How can this be

rectified before it is too late?

Revision exercise

Differentiate between a Project and Program

What do you perceive are the advantages of a program over a project?

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What does the word “Integrated” emphasise in an integrated program?

What information does an organo gram give about a program?

What is Operations Management and how relevant is it to programs and projects?

Which influences the other in formulation strategy or structure?

Explain the significance of a vision and mission statement in an organisation.

“A Program equals the sum total of its projects under it only.” Discuss this statement.

BibliographyBaker Larry & Douglass Merril, Time mastery Profile: How to manage your time

more effectively, Carlson Learning Company, 1992

Baker Susan, Sustainable Development, Routledge, 2006

Bamberger Michael & Valadez Joseph, Monitoring and evaluating Social Programs in

Developing countries, World Bank Institute, 1994

Brake Terence, Managing Globally, Dorling Kindersley, 2002

Burnes Bernard, Managing Change, FT Prentice Hall, 4th edition, 2004

Buttrick Robert, Project Work out, 2nd edition, Pearson Education, 2000

Campbell J David, Organisations and the Business Environment, Butterworth

Heinnemann, 2002

Clark, D. R. (2004), Instructional System Design Concept Map. Retrieved April 1, 2009 from

http://nwlink.com/~donclark/hrd/ahold/isd.html

Dessler Gary, Human Resource Management, 10th edition, Pearson/Prentice Hall,

2005

Grobler Pieter et al, Human Resource Management in South Africa, 3rd edition,

Thomson, 2006

Heller Robert, Effective Leadership, Dorling Kindersley, 1999

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Heller Robert, Managing Teams, Dorling Kindersley, 1998

Kakabadse Andrew & Analoui Farhad, Corporate Sabotage, Jaico Publishing House,

2004

Langdon Ken & Bruce Andy, Strategic Thinking, Dorling Kindersley, 2000

Maylor Harvey, Project Management, Pearson Education, 3rd edition, 2003

O’hara et al, Global work, Institute of the Future, 1994

Peter Paul J, Certo Samuel C, The Strategic Management Process, 3rd edition, IRWIN,

1995

Render Barry & Heizer Jay, Principles of Operations Management, Pearson/Prentice

Hall, 2006

Salton J Gary, Organisational Engineering, Jaico Publishing house, 2003

Schroeder Roger, Operations Management: Contemporary concepts and cases,

McGraw Hill International edition, 2008

Sleight Steve, Moving to E-Business, Dorling Kindersley, 2001

Steger B Manfred, Globalization: A very short introduction, Oxford University Press,

2003

Stevenson J William, Production/Operations Management, 5th edition, IRWIN, 1996

Zambia River Authority, Project Noah’s Ark,

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Unit 8

Aim

The aim of this unit is to train or equip the student with case study analysis skills by

dealing with different case studies.

Objectives

By the end of this unit, the student should be able to:

Identify and note the key quality issues that have made the entities succeed or fail.

Create new case studies from the local scenario.

Identifying quality in practice

This unit is devoted to case study analysis with a special emphasis on quality issues

as documented in recent cases. Most of these cases have been discussed in different

day to day text books and other media and would therefore be a good practice point

for the student. To get detailed case studies, students are advised to consult the source

materials such as Bower and et al as well as the local dailies. The internet is replete

with various case studies that would give the student more practice. The author would

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further recommend that students broaden their reading scope and attempt to build live

case studies as they see them in the world around them. Thus, case study after case

study is tabulated which the student should read and attempt answering the case study

questions at the end of each scenario.

Case studiesCase study # 1

Ben and Jerry’s Homemade Ice Cream Inc: Keeping the

mission(s) alive

If one has heard of the Body shop’s strong social change goal, then, the Ben and

Jerry’s Homemade Ice cream Incorporation will be a good reminder. The company

was incorporated a partnership comprising two long time friends, Ben Cohen and

Jerry Greenfield in 1977. It was an immediate success and has advanced to be a

powerful No.2 on the ice cream market (as at 1990). The success story is attributed to

a number of factors, which we endeavour to unravel.

From the outset, the founders did not design the company primarily for profit making

but rather with a strong thrust towards social change. Their aim was to bring about as

much Community change and thus their policies and values thus far has been directed

towards that goal. Since we know that the destiny of any entity is not entirely in our

hands, the Ice cream business blossomed and has been moving from strength to

strength as more consumers get captivated by the delicious multiple flavours on offer.

The Company rests on very strong principles that are worth noting. Firstly, the

company has a strong belief that the yawning earnings gap between the top executives

and a new entrant is immoral. This is a sad but common phenomenon in America, and

as such, the company has endeavoured to minimise the discrepancy by imbibing a “5

to 1” wage condition. This means that the highest paid employee does not get more

than five times the lowest paid, thus minimising the disparity. Secondly, the company

has from the beginning emphasised quality and timeliness of service. By this, the

company endeavours to continuously improve its Ice cream quality, flavour and

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packaging while in the same breathe ensuring that the customer is treated as king,

with maximum satisfaction. As such, all the employees take it as priority to serve the

customer first and also keep true to their word. Thirdly, this high quality and speedy

service hallmark has turbid the company to a strong unique position where all other

imitators find difficult to copy. Further more, the strong social change outlook of the

company marks it further from the rest. In a nutshell then, the company has beaten

out a clear path all these years having upheld its social obligations as well as the

internal ethics such as the “5-1” wage condition as a beacon. In this twofold thrust, the

company has prided itself.

Having laboured to show that the company built by the duo is very strong, we hasten

to say that not all has been rosy lately. Like any other growing company, the entity

has been encountering hurdles. The first has been that as more people have been hired

over time, not everyone espouses the ancient core values. Since the company is now

more complex, profit making and possesses a powerful presence on the market, the

new employees possibly do not whole-heartedly imbibe the values. While some

appreciate the said values, others question their relevance and usefulness. Secondly,

many, including the outgoing CEO, Chico Lager, feel that the company must throw

off some “obsolete” relics which tie down the company and impede further

development. They argue that the company is past the napkin stage and must

modernise some values, especially the “5-1” wage condition. They (opponents) argue

that the company can neither retain nor attract professionals due to the unattractive

pay and compensation. Why should one sacrifice a better wage for a lesser paying job

where one is even over worked? Thirdly, the “5-1” condition opponents further argue

that the company is in a competitive environment where only the best must be hired or

else the company sinks. From these views, we can clearly see that the company was

divided into two camps, one with Cohen (adherent to) and Lager (opposer of) on the

other. This was the turbulent atmosphere in the company that Chuck lacey was soon

to take over in the ensuing few months following the September 1990 final decision

making meeting. His interest lay in the fact that he was the one to steer the ship

henceforth. As such, he had to be most objective and not appear partisan.

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But does that mean all the “obsolete” values of the past have been overly and

pointlessly imposed? Nothing could be further from the truth! To the contrary, these

values are the ones that have won battles for Ben & Jerry all these years. For instance,

the company has been powerful and competitive from the beginning because of its

unique social change policies. By that token, some people have been buying and

popularising their products. We must go further to assert that the non profit ethic in

those earlier days was excellent in that the employees knew full well that theirs was

more of a service than a wealth amassing venture. Thus, this has meant less pay,

fewer over head costs and lower price but high quality products to the customer. The

consumers have not only been continuously satisfied but have also felt they were

contributing to a worthy cause. But like they say, “what goes up must come down”,

Ben & Jerry’s Inc’s weapons of yesterday are blunt and must constantly be revised

ensuring that they remain current and strategically relevant. This may mean

modifying some traditions or discarding some practices as the case may be. The

difficulty with the present crisis at Ben & Jerry is that the points of contention lie at

the very heart of the company, without which, one of its distinctives will be lost. This

will weaken the company “punch” and become like the rest. In our view, Chuck

Lacey must approach this scenario very cautiously, taking to heart the pros and cons.

He must be seen to be objective, though forward looking. If it means changing the

points of contention, the reasons must be fully furnished and the history books re-

written. If the present status quo is maintained, then alternative ways must be found

which will attract and retain staff because a high employee turnover in itself reflects

badly on the company.

In a nutshell, Chuck lacey must be objective, strategic and wise. When the decision is

made, he must be ready to go full throttle in implementing the decisions, all the time

keeping an eye on the market. A divided house is a sure recipe for disaster but also,

we must acknowledge that change is resisted at all costs, especially if it impinges on

time honoured hallmark values. That notwithstanding, we are confident that the Ben

& Jerry will surmount all these hurdles with agility and hurtle towards a brighter

tomorrow!

Source

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Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin.

Case study questions

What is the secret of the Ben and Jerry partnership/company?

What would you comment on its policies/philosophy?

How can things be improved in this global context?

Suggested case study question answers

What is the secret of the Ben and Jerry partnership/company?

What would you comment on its policies/philosophy?

How can things be improved in this global context?

Case study # 2

Effective leadership

Leadership has now taken the centre stage in Management circles as this has proved

to be more effective mode to unleash the latent potential within fellow team members.

As opposed to the now obsolete way of the traditional “Bossy” kind of management,

the latest trends of leadership permeate the organisation with a fresh fragrance of new

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pragmatic motivational ethics. This is what the book, “Effective Leadership” by

Robert Heller seeks to address.

Without much ado, this small book of only 70 pages summarises what one needs to

know about effective ways of leadership. The said book, divided into three sections,

presupposes that one is already a leader and seeks to sharpen his/her leadership

prowess, hence the title “Effective Leadership”. Having asserted the above, let me

hasten to say that the person first encountering the whole subject of leadership will

also grasp a clear understanding of what the principles of leadership are as the book

defines what leadership is in the introduction and then progresses to deal with the

whole complex web of learning to lead, leading others, improving effectiveness and

inspiring excellence in others. But wherein does effective leadership consist? What

exactly is effective leadership?

Leadership is simply defined as the ability to influence and inspire others towards a

goal. Effective leadership goes a step further than the aforementioned definition.

Heller accurately defines it as “the key to truly effective leadership lies in mastering a

wide range of skills, from implementing and administering processes to inspiring

others to achieve excellence”. As can be seen, this definition states that for one to be

effective, they must have a wide knowledge in many a field and be able to make the

most of every opportunity that presents itself. The leader, among other things, must be

visionary and able to inspire confidence in others by being a challenge, trusting

others, being a mentor, a coach, able to motivate via compliments and rewards, able to

seat with subordinates and give an empathetic listening ear. The said leader does not

content him/herself to know about the general things regarding the workmates but

goes out of his/her way to know the back ground details which might affect out put as

well as the best ways to delegate and build a team spirit among workmates. This may

well mean taking time off to visit team members on the job, at home, in a social

gathering, having informal chats over a drink or cup of tea as well as going for

workouts together after hours. This has the effect of reducing suspicions and

prejudices that people harbour. Once people feel valued and needed, they open up and

are willing to take on bigger challenges as well as risks to innovate and promote the

Effective leadership, Robert Heller page 5

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cause of the organisation rather that remaining indifferent and aloof. They “own the

goal” as it were, due to the effective leader’s presence.

The effective leader is systematic, highly organised and focused on what he/she wants

to achieve. S/he sets benchmarks of quality, time frames and is determined that others

catch the ropes as well. This further means that the said leader is continuously willing

to listen and learn from others who ever they may be (Whether young or old,

subordinates or superiors etc.), gains experience by the day, and makes every effort to

master own function as well as others’ functions. The time has arrived when one must

be multitalented and has a good working knowledge about other disciplines. Gone are

the days when the Manager knew next to nothing about Marketing or finance, for

example. The 21st century leader must have a firm grasp of all the areas in order to

confidently lead. Apart from the afore mentioned points, the leader must ensure

he/she is able to detect strengths and weaknesses in others and positively facilitate the

strengthening of the positive sides while correcting the weak sides. Having done the

above, in the second section Heller hurtles along to deal with the preparatory work to

leadership, which culminates into forming teams over which the selfsame leader,

exercises authority in a prudent and efficient fashion. Under team work, the issues of

delegation, communication, decision making (through discussions and brain storming

sessions initially), goal setting, analysing problems and giving support to staff in

agreed areas of implementation are dealt with. The last section of the book talks about

the all important areas of motivating others, establishing a vision, generating ideas,

ideal management style (in this case, open management), boosting achievements and

finally, being competitive with respect to the outsiders. This competitive advantage is

realised by first treating the internal customers Employees) well who in turn will go

out of their way to treat the external customer most diligently and courteously.

Remember, the customer is king! This approach to business works wonders for the

organisation in that it produces product loyalty and woos many more to the company

products. High quality and low prices cannot be over emphasised. Furthermore, the

effective leader must develop an apt acumen to network, identify and exploit

opportunities through taking risks as well. SWOT analysis and frequent market

researches are critical. Further more, the leader must be bent on success and all out to

win. As we begin to enjoy the book, it suddenly draws to a close having clearly

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scanned over the whole subject spectrum excellently. We therefore heartily

recommend the perusal of this book by those busy executives and indeed, those that

would aspire to be effective leaders of tomorrow because this book is a classic tool,

dealing with the very heart of leadership. In our estimation, the book is destined to be

a best seller and is a must for every leader worth the salt!

Source

Heller Robert, Effective leadership, Dorling Kindersley, 1999

Case study questions

What, in your own words is Leadership and how does it differ from management?

How does leadership impact of organisational quality?

Suggested case study question answers

What, in your own words is Leadership and how does it differ from management?

How does leadership impact of organisational quality?

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Case study # 3

Marks and Spencer: Sir Richard Greenbury’s quiet

revolution

Today, almost no fashion and quality conscious English person is ignorant the St

Micheal brand. It is a brand that has stood the test of time and has continuously been

improving. Half the time, consumers do not bother to find out from whence and why

this brand exists. A brisk sketchy background is handy at this point.

The origins are simple and soon told. Two fine gentlemen, Michael Marks and

Thomas Spencer opened the first shop as a partnership in 1894. Michael was a polish

Jew while Spencer was probably Scottish. Upon agreement, they established their

shop that sold small items costing very little and thus, their quaint marketing heading

“Don’t ask the price, its one penny.” It was one penny indeed because the store

ordered in bulk and in turn sold the high quality goods cheaply. This attracts scores of

clients. As time went on, the stores gained a reputation of stocking very high quality

but low cost goods. This has been one of the most powerful competitive tools that has

marked out the company from the rest. Michael and Thomas worked tirelessly until

the chain stores begun to be dotted all over the United Kingdom and lately has been

penetrating further into other international markets such as the USA, Canada, Eastern

Europe, Asia and Hong Kong. These new frontiers present fresh challenges seeing

that the environments are totally different from the UK setting where the company’s

hub rests. But that is not the end of the story, the company is now run by some

descendants of these great pioneer entrepreneurs having taken over the mantle when

their kinsfolk withered away. It is interesting to note that the next generation of

Directors included, Simon Marks, son of Michael, and Israel Seiff. These two married

each other’s sister further cementing associations. With the passage of time however,

more professionals were hired except that the system did not give them leeway to

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introduce new innovations due to the strong bureaucracy. Sadly, all the brilliant ideas

fell flat to the ground. That explains why when Sir Greenbury was appointed, he

turned this gloomy picture right round. Under the leadership of this man, the shops

have blossomed having a wide product range especially men’s clothing and women’s

undergarments. The Chain store also deals in food as the other product, representing

40% of the total group turnover.

But what has been the secret of the Marks and Spencers’ success? A number of

reasons come to the fore but the following reasons will suffice. Firstly, the shops have

maintained a customer sensitive approach. In saying this we mean that the Chain store

has ensured that the customer remains king, calls the shots and gets maximum

individual attention. Secondly, there has been a deliberate effort to ensure that the said

customers get a speedy and high quality service. Efficiency is the word! Parameters

have been inserted which ensure that the customer is not inconvenienced at all.

Thirdly, but closely akin to the second point is that the shops are a convenient place to

shop because of the wide product range that provides everything under one roof.

Flexible shopping hours is yet another great convenience. Fourthly, the shop has been

strategically placed, exploiting the latest technology so as to keep ahead of the times.

The shops anticipate customer tastes and go ahead to supply the goods. Further more,

because of the bulky nature of the stores’ orders, they bargain and get concessions,

which significantly cuts costs and enables lower prices to the customers. In the sixth

place, the internal working environment is excellent! Having cut down on staff,

Greenbury successfully infused an excellent teamwork spirit where the employees

work together like ants to achieve a goal. They corporately, diligently and constantly

make the most of the every opportunity to the extent that there is mutual trust and

interdependence among them. Each person is valued as a necessary part of the team,

working as an organism. It is worth noting that the company cares for the welfare of

employees knowing that the ‘internal customer’ must be satisfied first before the

outside. In keeping with this belief, employees are individually attended to. As such,

the said workers put in their best all the time and will stick with the company to the

end. This loyalty manifests its self in the way that the company image is jealously

guarded and the “restless present product calibre dissatisfaction”. Traditionally, the

company has had one of the best compensation policies, being ardently devoted to its

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staff. In addition, the company rewards those that excel. This further motivates

employees to excel in their calling. These salient points are the ones that have largely

led the triumphs of the past for Marks and Spencer. Let it be known also that effective

communication within the firm has been highly valued as it has kept the stores

marching as ‘one man’ with a similar goal and aspiration. No longer does top

management merely dictate decisions top-down but rather, the employees are made

aware beforehand what is going on and to some extent given leeway to suggest some

valuable ideas. Greenbury opened the door to “freedom of expression”. Management

is now participative. Hitherto, decision making was the private preserve of only a few.

If we were to be brisk about the key aspects of the Marks and Spencer strategy, we

would simply say that the St. Michael brand has been jealously guarded and

constantly improving. If people come across any St Michael brand, they will

automatically assume that it is of the highest quality and worth the price. The said

brand has been consistently of high quality but low price thus commanding the huge

product loyalty.

Having described the key areas that have made M & S tick, we now proceed to

examine the mastermind behind all these innovations-Greenbury. As earlier intimated,

this gentleman has done a lot in refining and shaping the entity. His major strategic

moves have been the building of partnerships with suppliers. This entails restricting

the sources of materials by entering agreements where periodic audits are conducted

by the M & S officials to ensure that the supplying company’s facilities and materials

meet the agreed high standards. In these days of International standards (ISO),

perhaps these companies must subscribe to and be certified by ISO. Furthermore, the

shops which hitherto (until 1985) dealt strictly with cash or cheque have introduced

financial services where a client can buy goods using some kind of credit card. Since

world trade is rapidly hurtling towards credit, it was necessary to keep abreast with

the trends. The card method now accounts for over 20% of all M & S sales. In a bid to

expand the market, the shops have made frantic efforts to spread locally and

internationally via franchising. Hitherto, on the local scene, the shops were located on

the main streets and in major towns but now, there has been a shift to open outlets in

the out skirts and the smaller towns previously untouched. This is where the greatest

growth potential lies. While the other competitors confine themselves to the big

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towns, Marks and Spencer has strategically been spreading its tentacles to the utmost

parts of the UK and beyond. Internationally, there has been some success recorded

though more could be done. As earlier intimated, the shops are sparsely doted over the

European continent and other parts of the world. We must also hasten to say that

Greenbury has brought about a ‘minimum inventory’ culture where very little stock is

kept in the stores but ordered and supplied to customers in the shortest time frame.

This just in time approach has significantly reduced overheads and thus enabling the

company to keep its product costs and prices low. In addition, there has been an

expansion of product ranges covering the entire family and with high quality long

lasting clothing. The deliberate effort to strengthen the brand name as well is worth

noting. Furthermore, Greenbury has scored a first in dismantling the old bureaucracy

that firmly clutched the entity in the grip of family control, and inflexible standards.

Although in the past, this management style may have succeeded, time is ripe to

strategically change towards a fluid and agile company. Flushing out bureaucracy is

the only way to survive in the hotly competitive environment or else risk running

aground. The ascendance of Greenbury to the helm has been a blessing to M & S,

though more reforms are awaited.

As the company moves to a more complex and fundamentally different international

market where peoples’ views and tastes are different, M & S will do well to take heed

of the ensuing points, although international expansion is inevitable, the company

must move in slowly and meticulously. Initially, a skeleton manpower will do,

accompanied by a lot of marketing and good high quality goods. This initial entry

presupposes that the market has been studied thoroughly to ensure that the customer

needs and wants are ascertained exactly. Market survey and research are crucial at the

initial stages, lest the resources be wasted. Another option is to appoint a local agent

who knows the market very well and has a powerful distribution network as well as

many outlets for the goods. This also means using local but high quality materials that

will be appealing and attract the customers, thereby creating more product loyalty. A

consistently high product image should be the hallmark of the entity abroad as they

have been in the UK. Having produced classic goods, it is also imperative to ensure

that the products are well positioned on the market so much so that the same are

differentiated from the rest. One way is to have these selfsame goods find shelf space

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in those agency shops spread across the country. Another way is to have a uniform

international brand except that the local conditions are taken into account. In an

extreme case, the M & S must merge (In those particular countries) with some local

company possessing an extensive outlet network so that the products have a larger

surface area of being sold. Should this chain store take to heart the above, as

Greenbury has aptly quipped, “In the 1990s…the customer is not only king but

dictator”, we are very optimistic that the stores will surmount all hurdles with greater

agility, and then sail to zenith glory!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin.

Case study questions

What are your views on the St Michael brand?

What is the one factor that has made St Michael a house hold name?

How can the Marks and Spencer improve its profitability?

Suggested case study question answers

What are your views on the St Michael brand?

What is the one factor that has made St Michael a house hold name?

How can the Marks and Spencer improve its profitability?

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Case study #4

ABB Deutschland

The Asea Brown Boveri (ABB) company is an entity that suddenly appeared on the

scene. In a sense, the said company already existed as two separate companies,

Brown-Boveri (BBC) and Asea, but only merged on January 4th 1988. Hitherto, these

companies had been fierce competitors but secretly merged to form an even more

formidable force. The surprise announcement on January 8 shocked the world because

this was the most unlikely marriage of all time!

A brief background of the two companies will be handy. Asea is Swedish in origin

having been founded in 1883 and headquartered in Vasteras and its strength lay in the

technical competence. For many years, it had been consistently successful until it

plunged into a strategic miry bog in the seventies, its strength became its weakness.

Asea had become arrogant, unresponsive to the market, sold at a loss and was crippled

by the huge bureaucracy at HQ. But a turning point came in 1980 when Mr Percy

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Barnevik, the first none engineer CEO, was hired. He did a tremendous turn around

job and towed the company back to safety. He did this by eliminating losses,

internationalisation of the company, establishing profit centres and dismantling the

bureaucracy. This was a hard but necessary task that saved the day for Asea.

As for the Brown Boveri, the story is slightly different in that the company was not

financially on the rocks but the problems that engulfed it were that of in fighting for

superiority emanating from the strategy earlier set by the founders. The company

founded in 1891 by Charles Brown (an English man) and Walter Boveri (a German

national), also boasts of high technical expertise, although less diversified relative to

the Asea. Over the years, the company experienced rapid local growth and

international expansion except for a few dry patches during the world economic

recessions of the 1930s. The demand for the quality technical products propelled the

company into further profitability although this was curtailed after the second oil

crisis. It was suddenly confronted by declining demand, increasing competition and

the heavy leaning on one core competence that ceased to be strategic. The highly

focused strategy of the 1960s and 1970s backfired by 1980. But what was this

strategy, if we may ask? The strategy was that the company was to produce high

quality goods and market them. The company adopted a “Think globally but act

locally” approach wherever the company spread its wings. The chief reason was that

each market was unique and that the people on the ground were the ones who

understood the market exactly. As such, each subsidiary was locally autonomous and

managed by local nationals though owed allegiance to the holding company. This

strategy initially worked very well in that the company knew and handled the market

well having understood the local tastes, habits and was viewed as a indigenous

company. This in itself was a powerful competitive advantage tool fostering market

expansion. Things began to change when the autonomous subsidiaries developed and

clashed in the same market, though coming from different standpoints. The company

presence was largely in Germany and Switzerland. Fierce competition ensued to the

extent there were squabbles between two subsidiaries! Although cooperation was

verbally advocated, mere lip service was worsened by the interventions from the

Princes who opposed any attempt at implementing the overall company ideals. This is

in keeping with the old adage “old habits die hard”, clearly shown by the business

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unit independence that still carried the day. This mess was a direct result of the local

autonomy which, in this case resulted in disaster as the subsidiaries outgrew their

local market and ventured abroad where they collided. None was willing to bow out

of the race. In the end, there was duplication, waste of resources and inward looking

so much so that the company ceased to respond to the customer needs and by that

token, experienced stagnation in market growth. As though that were not enough, the

German subsidiary, on account of its size was unwilling to bow to the head office

whose sales were lower than it. Thus, the relationship between the two subsidiaries

became difficult to manage. Each was hurling sand in the others’ eyes until the merge

took place. Now that all is in place, we anticipate that their profitless squabbles are a

thing of the past, having been dealt with in three ways. Firstly, the new holding

company has decided to standardise products so that they are the same cost,

packaging and quality in the whole market. Secondly, there has been a move to reduce

on the hitherto extensive product line. This will ensure concentration on a narrower

range that is by far more qualitative. Thirdly, the company has worked out a

framework so that the duplication and wastage of resources is eliminated. This will

also add to the strategic positioning of products as this will eke out a niche for the

brand.

The developments that took place on January 4th 1988 and the subsequent meeting at

Cannes caused a stir and raised more surprises in peoples’ minds. The said meeting

basically dealt with four issues, the first being on strategy, then on organisation,

followed by behaviour and lastly on financial targets. Each of these were crucial but it

is worth noting that these goals were equally eye catching as they were not expected.

For example, the declarations by Koerber on the 1991 DM 500 million profit goal and

the fact that power lay in the highly focused strategy akin to the defunct BBC were

revolutionary statements. If we were one of the executives from Mannheim, we would

have been puzzled and also had a lot of explaining to do back home, especially

looking at how our sister companies had been at each other’s necks. Further more, we

would have trouble convincing my subordinates that the rivalry of the past was over

and that we had to join hands with our “Brothers and sisters” across. We would have

had to reorient them to the fact that the times had changed and many things were to

change as a result. In the new setting, the goal is one, though the decision making, to

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some extent, to be decentralised and that all subsidiaries henceforth had create

service, customer and profit centres with an eye towards the overall corporate goal. In

addition, the organisational changes were equally shocking because the head quarters

would be at Zurich with only minimum staff. This meant some would lose jobs or be

deployed. Explaining all these changes would take time because change is always

resisted especially the sort that threatens to unleash job losses. What my perception

about the apparently shocking reforms is that it entails more work, quality, customer

focus, speedy service, continuous improvement, “reading of the times” and frequent

innovations. No longer would we merely boast about “quality attracting customers”. It

is time to be outward looking and also to slay the evil suspicions and rivalry that have

plagued the past companies. It is also high time to look out for the opportunities that

have hitherto eluded the company while it focused its eyes inwardly. Time and energy

wasting hereafter are relics of the past and are relegated to the company bone yard.

Obviously, the Mannheim contingent had expected that their already much maligned

highly focused strategy would be bullet riddled but alas, it was hailed! The reasons for

this strategic choice by Barnvik is because he perceived, and correctly so, that once a

niche has been eked out, it is difficult to replace, let alone rebuild. That which has

taken years to establish, the good will and the excellent brand name can not simply be

thrown to the winds but rather be guarded jealously. As such, we think that the wise

eagle eyed Barnvik discerned well when he made that particular strategic choice, as

no other better alternative was available then and now. The chosen path of

electrotechnical and other related areas was excellent. The cutting down on staff, costs

and the closing down of some unprofitable subsidiaries were all very difficult, painful

but inevitable decisions. Thus, having synchronised the two companies to form the

formidable ABB, we can comfortably turn to the other side of the bed and sleep

soundly for a while until the next strategic planning time!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition Richard D

Irwin.

Case study questions

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What do you think about the BBC and Asea consortium? Was it a wise move after

all?

How best do you think ABB should have responded or crafted its strategy problems

and integration?

What is the central success key factor for the ABB?

Suggested case study question answers

What do you think about the BBC and Asea consortium? Was it a wise move after

all?

How best do you think ABB should have responded or crafted its strategy problems

and integration?

What is the central success key factor for the ABB?

Case study # 5

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The Kentucky Fried Chicken (Japan) Limited

Getting started in a foreign new market can be a nightmare. This was the experience

of the Kentucky Fried Chicken in Japan, where their products were not appreciated

until certain unorthodox methods were devised. Back in the USA, the fast food sold

like hot cakes but in Japan, it had to take the likes of Loy Weston and Shin Ohkawara.

But who are these maverick individuals? From whence do these folks hail? Loy is

American and has vast experience in the Far East, having laboured in Japan during the

Korean War. Weston had been intrigued by the oriental culture and studied it

thoroughly before returning to the States. In many ways than one, he was the right

man for the job. On the other hand, Ohkawara is native Japanese and has excellent

local contacts. He too has vast experience having worked for the giant printing firm,

Dai Nippon of Osaka. The pair is simply marvellous when working together.

For a long time, the Mitsubishi Company had desired to popularise chicken sales in

Japan but had had problems. As such, the said company approached Kentucky Fried

Chickens (KFC) with a view to start up a partnership in Japan. KFC willingly obliged

as they were planning further international penetration. The only problem that

confronted the partnership was the lack of the right human resource, which was

solved when the above mention duo were hired. These were valiant men equal to the

mammoth task.

Initially, as earlier intimated the Fried Chicken shop went in with the all time popular

American dish and menu, which to their surprise was a near disaster. The local people

preferred other dishes! For the Natives, fish and not chicken was the meal! After

several dismal attempts, the duo devised survival strategies. As would be expected,

cash was the need of the times. KFC International came to the aid and got the KFC

Japan on its feet once again. Weston and Ohkawara figured that their only survival

strategy lay in the innovations that met the local needs best. As such, they introduced

some local foods like fish on the list, though not formally approved by head office.

This innovation proved extremely successful because the locals loved the taste,

service and quality of the food. In a short time, KFC Japan begun to blossom and

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opened other outlets as the demand grew. Today, KFC Japan is a shining example of a

KFCI outlet that has adapted to the local scenario and excelled.

But as expected, the apparent independence of KFC Japan was not well received by

all concerned stakeholders at KFCI. Their arguments run as follows: firstly, the added

dishes are not on the list of the KFCI products worldwide, why should KFC Japan be

unique? Secondly, some feel that the shape, size and the design of the kitchens in

Japan are not akin to the standard KFCI allowable. The Outlets in Japan are slightly

smaller and slightly crammed together. Thirdly, the quality of food and the place

where the food is prepared is not to the KFC international standards, although may be

acceptable by the local standards. Fourthly, the apparent disregard of, and hostility to

the KFCI by the KFCJ management irks many. KFCJ wilfully refuses to neither obey

nor implement uniform standards and also questions every suggestion that comes

from KFCI. Quality standard auditors from KFCI also have a tough time with KFCJ.

This situation has led to a situation where KFCI is seen to be interfering with local

operations worldwide. In general, KFC is not managing its international operations

well because of two reasons. Firstly, for many years, the head office neglected the

international operations and let them run independently as well as fend for

themselves. They grew like ‘wild grass’ with little or no outside interference or

guidance. How then, can HQ suddenly begin issuing orders at this late hour?

Secondly, though closely akin to the first point, the HQ has not effectively

communicated with the subsidiaries the new strategies. Having had such a weak and

fragmented background, there is need to come in slowly while explaining the new

approach. The top management must be sensitive to the unique views of each KFC

outlet because the new and excellent strategies if insensitively and wrongly applied

will lead to another disaster. So far, the KFCI has handled the situation badly.

It must be realised that although international uniformity is required in multinational

companies, certain standards are not applicable in some cultures, although the

principle remains the same. This scenario is what obtains in the fast food franchising

business and demands organisation, strategic vision, financial muscle, high quality

fresh food, speedy service, wide menu selection and knowledge of the local cultural

traits. Unlike the other products, food is very sensitive and affects the very

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foundations of some one. It takes time for one to convert to new foods, especially if

they are exotic. That is what confronted KFCJ. Talking about these impediments

means that the Kentucky Fried Chickens must alter its strategy to suit the prevailing

local circumstances. In as much as a uniform international menu is desirable, room

must be given for the local KFCs to add the perceived delicacies, of course bearing in

mind certain principles. Firstly, these ‘offshore’ outlets must maintain the highest

hygiene standards that cannot be faulted either locally or internationally. This calls for

more accurate planning ensuring that minimum stock is kept thus lessening the mass

destruction of the food, after specified time limits. Secondly, The Company must

“think globally but act locally”. This will entail still delegating some muscle in the

local management to make local strategic decisions, of course in consultation with the

HQ. Effective communication is crucial prior to any implementation of plans. The

Dick Mayer ‘stages theory’ of country management is plausible because it is

progressive and fosters better overhead management. The three stages advanced were

the following:

1. The entrepreneurial stage where there is a lot of managerial orientation. This

needs goal-getters like Loy Weston. At this stage, very little bureaucracy or

inflexible control is applied. This is at the initial stages of foreign market

penetration.

2. The second stage involves the involvement and appointments of local baronies as

management. This ensures that the same champion the cause locally and help the

natives to accept the company easily.

3. The last stage is marked by the appearance and hiring of professional managers

who run the company henceforth. This has been the stage at which KFCJ has been

at daggers drawn with the HQ. Professional Managers are generally viewed as

strategic thinkers, objective and accurate observers, who can easily read the times

and ably anticipate trends. In a nutshell, the professional managers are long term

planners, as their plans are sustainable.

By all standards, this approach is fine as long as it still remains conscious of the

unique local needs. If the above management proposal is anything to go by, then it

means that the KFCI management must change and standards set which must be

imbibed by all. As earlier intimated, the background notes about KFCI are not

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plausible, but time has come when the house should be made orderly again. To

achieve this, patience, training and much discussion has to go into it. Let the lessons

learnt from the past experience serve as a beacon to avoid a similar mishap in future.

This means KFCI getting involved from the initial stages all the way through to the

maturity of the same outlet. We have reason to believe that present hostile reaction

from the foreign field is largely due to the past neglect by HQ, much like how a child

would react to a long absent parent who suddenly appears issuing marching orders!

This brings us to the question as to how to handle the present independent minded

staff like Loy Weston. Though he has been elevated to Vice president for the North

Pacific, he still is viewed as obstinate. In many ways, the hot criticism is not

justifiable for the following reasons; Firstly, he was made that way by the company,

when they did not support nor nip his unorthodox tendencies in the bud. As such, he is

merely acting consistent with the past culture. Secondly, care must be taken to

recognise that Weston is a goal-getter and by that token has certain strengths that

others do not possess. Further, he has a thorough knowledge of the market, tastes, and

the culture which no other person from the West may possess. His vast experienced is

unequalled as well.

Thirdly, let it be noted that Weston is a “known quantity” in the north Pacific as well

as all the Pacific rims of the Far East. This goodwill alone should make KFCI tread

carefully lest they lose some market. Believe it or not, some people’s presence on

board speaks connections and quicker market triumphs. Our suggestion is that Dick

Meyer should directly talk with Weston rather than the arm chair criticism tactics he

has employed hitherto. Weston must feel valued, respected and saluted for the

excellent feats he has thus far achieved and then reason with him about the new

strategies. Let it never be forgotten that Weston has studied some law privately, and

so, he is bound to react eccentrically if not diplomatically approached. Care must be

taken to ensure that KFCI is not merely reacting with an individual rather than a

wrong principle. We say so because the criticism seems to be aimed at an individual

rather than a practice. Having laboured to table the new strategies, he must be gently

told to choose whether to tow the same line or leave. Past follies must be

acknowledged and then the new strategies asserted. Alternatively, Weston could be

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moved to new markets where penetration is needed. He may not easily countenance

this frequent shuffling though! Lastly, he could be recalled to head office as one of the

Directors so that he can see the dilemmas. If still unyielding, sadly, KFCI must part

with the man, for the 21st Century manager must be learning all the time and flexibly

change with the times. This painful decision must be arrived at after the KFCI has

done a critical self-audit. Could it be that the internal system is faulty?

Having cleaned the house, it will now be possible to spread the wings wide, flap them

and then fly to success!

Source:

Bower, Bartlett, Uyterhoeven, Walton. Managing strategic processes, 8 th Edition,

ISBN 0-256-115191-5) Richard D Irwin.

Case study questions

What do you think about KFCJ’s strategy?

Is Weston the best person to manage this international assignment?

What do you think about their (Weston and colleague) innovation to deviate from the

standard, was it a compromise of quality?

Is Weston worth retaining on board?

Suggested case study question answers

What do you think about KFCJ’s strategy?

The strategy looks great given the context but must continue to be refined because of

the many dynamics in the business environment.

Is Weston the best person to manage this international assignment?

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I think so though he gives one some fright making one’s hair stand on end. But one

thing is sure, Weston knows his job and is a good initiator of business where others

would have lamentably failed and embarrassingly returned home.

What do you think about their (Weston and colleague) innovation to deviate from the

standard, was it a compromise of quality?

They are great guys. Leaders take risks and in this case, they read the times and acted

although ultra vires in some way. Each context is unique and demands different

strategies which they did. As for quality, well that is a talking point. There is need to

keep the quality high but the parameters also must be contextual in some instances. If

that is not possible, use the same high standards but make them relevant to the given

context.

Is Weston worth retaining on board?

If he is critical to the continued success of the entity, it may be prudent to keep him

while grooming another to eventually take over from him. Drastic moves may hurt the

company.

Case study # 6

The Harvard Business school

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In 1908, the Harvard University opened its Graduate Business school doors for the

first time. Never will those earlier days be forgotten because this long overdue school

of business was as critical at that time as it is now. When President Eliot sanctioned

that it be opened, his decision was for all time in the sense that a myriad have

benefited from that decision. Although the move largely came as a result of

complaints from the industry and the perceived need of the times, it was high time to

introduce a course that was dynamic, relevant, flexible, informatively analytical, high

quality and yet remaining a business program.

But what exactly caused Eliot to create this program? It is a curious fact that as early

as 1869, prior to his ascending the University presidency, Eliot wrote about the need

of a curriculum that was relevant, high quality and helpful but which eluded him at

the time. This idea, it seems stayed latent in his mind and was finally hatched in 1908.

It must have been a brave day for Harvard. The undergraduate program had become

obsolete, abstract and was moribund due to its impracticality on the field. The

graduate school was no better either. The extant courses were rigid, static, of

questionable quality and did not address the needs of the times. This resulted in low

calibre graduates churned out who failed to perform on the industry. Naturally, the

Industry felt cheated. Further more, the curriculum prior to 1908 was basically

textbook oriented, far detached from reality. This was what the new graduate school

sought to address.

As expected, where standard norms of practice have been set, it is not easy to initiate

change. This has been the lot of all who have had a vision that threatens to change the

established status quo, for many will resist change at all costs. Of course the reaction

differs from person to person but largely those who feel most secure in the prevailing

status will strongly oppose any position threatening innovation lest they lose their

creature comforts. Eliot and the subsequent presidents had to wrestle with different

shades of opposition. Granted that standards must be set which must stand the test of

time, the rapidly changing business environment, unlike the scientific facts, demands

programs that remain strategic. In the light to these hurdles, the president had the

option to remain silent and walk out of office peacefully or he could have continued to

defend the obsolete programs against outside attacks.

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Eliot passed on the mantle to Edwin Gray, (the first Graduate Business School Dean)

who continued the work initiated by his superior only that his focus was on the

definition of the school. The question that begged answering was “What is a graduate

school of business?” In attempting to answer that question, a cross section of people

were asked as to what they thought. As many answers as interviewees were collected!

Thus it was difficult to define exactly but with time, it became clearer. Having

collected views, Gay went ahead to make some strategic choices, which included

formulating unique business courses that covered relevant issue experiences on the

industry. These courses were backed by data collected from research, which data

helps in making informed judgements and decisions. Further more, in order to attract

government aid, he opted to collect data from a business area hitherto untouched- the

small retailers and then came up with a database. This database was further refined in

subsequent years. In addition, he made sure that the courses were pragmatic, current

and flexible in nature. The heart of the business courses lay on manufacturing and

marketing, which dealt with the production as well as the distribution aspects of the

business. Gray ensured that the best high profiled professionals such as George Elton

Mayo and Fredrick W Taylor were got on board the Academic staff. These two star

lecturers waxed eloquent in their fields. Mayo is famous for his monumental

Hawthorne studies while Taylor is an authority on scientific management theories.

Also to hand was the magazine, later called the Business week which further

publicised the work at Harvard Business graduate school. All in all, the school was far

above its peers if any. But why did Gay take such pains to strategise? As earlier

intimated, the extant courses were irrelevant and abstract so the existence of a new

program had to be justified or else be treated like any other. Secondly, since it was a

new program with no prior record or experience, it was necessary to continuously

tailor it to the current needs and this was possible through input from without the

institution. Usually, time is the best judge, it either vindicates one or confines them to

the “academic and professional dust bin”. Gays’ efforts paid dividends because his

innovations bore fruit, for they were extremely successful despite set backs due to

high over head costs, suspicions and sometimes outright hostility from other

colleagues.

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As the years rolled on, the school begun to take shape as more students enrolled and

went out into the industry. Many however, did not complete for two basic reasons.

Firstly, the majority of them took up jobs after finishing the first year while others

abandoned the course due to the unsuitable nature of the curriculum.

After an eleven year distinguished career, Gay passed on the baton to Wallace Brett

Donham who took office in 1919 and remained Dean for 23 years, in which time

more changes took place. These changes ultimately put the school on the map as

unique, superb and the centre of education evolution. Donham refined the curriculum

further by introducing more teaching methods that met the current needs. He was the

first to introduce the Case method that ultimately became the standard way of

teaching at Harvard. In the Case method, a professional from the industry would be

invited to give a talk painting an actual scenario and then ask the students to come up

with a solution. There after, another sitting would be convened and the said

professional would discuss the case and answer questions from the students. In this

way, the students learn how to analytically look at practical cases and solve the

problem. This was and is an excellent way of teaching because the students feel part

and use their brains. Initially, financial problems and resentment bugged the Case

method. Some members of staff, preferred the well tried and tasted methods which

bore students, to the strange new method. In the fullness of time however, the case

method vindicated Donham by their usefulness and popularity.

As though the case study method was not enough, as earlier intimated, relevant new

courses were introduced to cater for the needs of wartime. America was involved in

the World war two, the following courses were tailored towards the contemporary

scenario. The first course was that of the Industrial Administrator (IA), a short

program to equip staff who were going into government service connected to defence.

The second, akin to the first was equally good as it taught statistics and other related

war functions being a Statistical course. But after the war, Harvard rose to the

challenge and offered another course- “Retread” program that basically was aimed at

people who had been employed in wartime and needed retraining. It also focused on

Chief executives who needed retraining. The aforementioned innovations show how

the institution has moved with the times, built strategy, and has constantly kept

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improving. Donham phased off the academic horizon in the early forties after an

equally illustrious career, having laboured tirelessly to shape the Business school.

Today, if one went to Harvard, they would not believe that this University has gone

through many evolutions so as to arrive at that most competitive position. Obviously

in arriving at this position, much energy and sacrifice has taken place. The earlier

days were hectic because the School had to find its feet, the need for self-identity, the

opportunity grasping, and then hiring the right and articulately robust staff. This

process took time.

Having surveyed the Harvard case, one cannot fail to learn many valuable lessons.

The first lesson to take note of is that an organisation takes time to find its position on

the industry, but this comes from painstaking strategic thinking. The second lesson we

carry home is the fact that organisations must continuously read the times and ensure

that they know what is going on and thus respond appropriately with hind sight.

Thirdly, the organisation must ensure that it remains flexible and has the right people

in place, who are ready to change with the times. Fourthly, the organisation must

ensure it remains relevant and ahead of the times. It must respond to the situations

confronting the same. Fifthly, the institution must ensure that it not only churns out

quantity but quality graduates by having quality programs. Lastly, once the institution

has achieved success, it must fight resting on its past laurels but rather constantly

continue looking for ways to improve all the time.

All the above, Harvard has achieved to the finest levels all because it has been ready

to change and yet remained the business school of the times, if only others would take

a leaf!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin.

Case study questions

What do you think about the development of the Harvard Business school?

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Do you think Business schools are essential and helpful? Explain your answer.

Is the Case Method analysis to business appropriate in a dynamic global business

context?

Do you have any suggestions on how The Harvard Business school can improve?

Suggested case study question answers

What do you think about the development of the Harvard Business school?

It was an excellent development and definitely went through many defining moments

as each new leader took over the mantle of the school, long before other Universities

and countries had ever thought of that idea. The school is there today and boast of

being one of the best and without doubt, it has some of the best business thinkers and

theories floating around the Business market today. For a long time to come, Harvard

will remain the place to be!

Do you think Business schools are essential and helpful? Explain your answer.

They are essential as they sharpen one’s latent skills and potentials. They help some

one identify their unique competencies as well as encourage them to fan to flame what

they have already embedded in them. In other words, the business schools, just like

theological schools do not make the man but sharpen them. For a long time, Japan did

not have Business schools as they probably did not view them necessary but it would

appear things have been changing, given the rapid global dynamics.

Is the Case Method analysis to business appropriate in a dynamic global business

context?

Definitely! It gives the student an opportunity to simulate with real live cases that they

may or may not encounter later on in their careers. In that way, they will be better

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prepared to handle scenarios better than someone who has never exercised themselves

in that way.

Do you have any suggestions on how The Harvard Business school can improve?

There are many ways to improve but one caution would be that Harvard needs to

remain a learning entity lest it rests on its laurels and fizzle out of the lime light. Its

good to have a brand name but this could also prove your undoing.

Case study # 7

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Salvatore Ferragamo, SPA

Very few people have left such an indelible mark upon their generation as Salvatore

has. It is now over 30years since he died and very little of his classic convictions have

been altered or adjusted to suit the prevailing circumstances. He was indeed a legend.

Tracing his history as a shoemaker will leave echoes in ones’ mind long after reading

his biography. This is surely a mortal to emulate about perfection in quality products

and commitment to good business ethics.

Perhaps for the curious reader, a brisk history will be handy. Salvatore’s life is easily

told but it leaves an awesome legacy. Born at Bonito, Italy, at only age 9, he made an

excellent shoe for his sister saving her from shame. Then by age 12, he was the choice

shoemaker in his locality such that at only 16 years he left for America to seek

greener pastures and to train, but not even this voyage satisfied his quest for quality

and design. As a result, he formed his own firm making shoes and subsequently found

his products in the Hollywood films. This really put him on the charts such that by

1927 he had a booming business. But as many people say, “There is no place like

home”, he trekked back to his native Italy where he continued the business. There

also, the trade blossomed as well having become renowned for creativity, quality and

excellence. Salvatore had three business philosophies that are still cherished by his

heirs to this day. These are:

1. Be honest and fair with employees, suppliers, and customers,

2. Build a product of the finest quality, and

3. Provide excellent value for money.

These are firmly wielded upon the chests of his family, the present proprietors of the

gigantic multinational company. After his demise, the widow, Wanda along with her

children picked up the broken pieces and have worked tirelessly the last 30 years to

see the company to where it is today, so big and different from what it was three

decades ago. Today (1990), the company has a very fine international brand, well

known for guaranteed high quality products, and has ironically sustained a loyal

clientele all these years. Other product lines have also been introduced along the way,

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although women’s shoes and clothing remain the core of the company. It maintains a

strong international presence in Europe, America and Asia but like in every case,

Salvatore’s position is under threat from competitors, who would undercut and are

more market focused. It was precisely this reason that the Salvatore board of

Directors, comprising Wanda and her six children sat to consider seriously the

proposals put forward by Mr Mazzalovo to enable corporate growth from the 1990 $

200 million to $ 400 million in 1995. It was a tense and crucial meeting because some

of the proposals potentially threatened the age-old hitherto unquestioned standards

such as rapid decision making and incorporating non-family members to run the

business on equal footing. Considering the turbulent business environment,

Mazzalovo’s arguments were so potent such that a dilemma resulted in the family

whether to abandon the past and surge ahead full throttle with new policies or to reject

the proposals and stick to the past until the company finally ground to a halt?

From Mazzalovo’s presentation he clearly showed that if any significant growth was

to take place, the following steps were to be taken. Firstly, a self-audit had to be taken

to ascertain the strengths and weaknesses that were inherent. His immediate findings,

subject to a thorough research, were that the major weaknesses that plagued the firm

were that the family values often overrode the corporate strategy, in effect, the

company did not have a strategy at all! It was found that anything that appeared at

variance with the family values was discarded without further discussions, even if it

was meant to propel the company further, the family axe fell at the root of the idea.

This showed itself in many ways such as reserving all the decision making

management jobs to family members, no form of “brain storming” sessions, but a top

down form of management, product focus rather than team work or customer needs

were the thrust, slow centralised decision making by top family management. Further

highlighted weaknesses were as follows: The company was inward-looking and not

market focused, not caring what the customers needed but churned out what was

thought the customers would want to buy, relying on the 30 year old goodwill. It was

also evident that no reading of the rapidly changing market was extant so as to

formulate aggressive relevant strategies. The other pitfall was that teamwork was only

practiced among family members and the personal touch to the customer was absent.

Although the three Salvatore values were firmly up held, Mazzalovo concluded that

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no effort was made to motivate employees or to satisfy customers. In fact, the

company did not really know why people bought their products! Where as other

competitors were diversifying and targeting the younger, more fashion conscious

generation, Salvatore stuck to the old styles of yester years with slow minor periodic

product launches. Aggressive marketing was generally neglected . But does that mean

Salvatore has nothing good to offer? We do not think so, to the contrary, as

Mazzalovo concluded, the company has a number of excellent strong points from

which premise to dive into the river of success. These strengths as follows: Firstly, the

company has a luxuriously powerful brand name. Every quality conscious individual

knows that any product from Salvatore is of the highest calibre, quality and durability.

Secondly, the quality of products is excellent, second to none in the industry. Today,

it is not a question of churning out mass products but quality should permeate all

aspects, without which, the product name deteriorates to the background. Quality is a

powerful marketing tool in its own right. Furthermore, the company has immense

financial resources to freely re-invest in the business on a long-term basis, which

others do not have. With the correct information and cash, Salvatore can perform

wonders. Not only is there sufficient liquid cash, the company is endowed with

perhaps the most powerful business people around. This unique family has the best

men and women who potentially could turn the company upside down within a short

time, if they so willed. The issues of customer sensitivity, marketing, morale would be

things of the past if modern management principles were imbibed, of course within

the context of the original core values but in a modified sense. Being a multinational

Company, it has the prowess to hire the most experienced and dependable

managers-“Known quantities” as the common business phrase goes. With all this

immense potential, we turn to look at the opportunities that lie untapped. It is a sad

truth that apart from the women’s shoe line, other opportunities are either

underdeveloped or ignored on account of keeping “Family tradition”. Tremendous

opportunities lie at the doorstep, all that has to be done is to open the selfsame door

and let the opportunities in or else risk losing market to other competitors who are

sparing no efforts to snatch as much of the market as possible. Opportunities

especially lie in the “Ready to Wear, RTW” market. New product lines such as

perfumes, bracelets, watches and jewellery could be introduced so that no foothold is

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given to under cutters. Men’s products like ties, shoes and clothes must be enhanced.

As suggested, professionals must be employed specifically to champion these brands.

In addition, the products generally must be market focused and contemporary, yet in

the same breath maintaining high quality and consistency. Coordination and effective

communication must be implemented to ensure that target groups are effectively

catered for such as the young, fanciful and fashion conscious must feel at home with

the brand. Salvatore is so strategically positioned and must be proactive rather than

reactive, as has been the case hither to. It is high time to be the universal trendsetter

once again. More frontiers must be conquered such as Africa whose markets are

beginning to open up. These opportunities must be grasped because threats are galore

and will eventually overtake the company. If we were to advise Wanda on

Mazzalovo’s proposals, we would encourage her to imbibe them whole-heartedly

though with two cautions in mind. The first is that she should ensure that the best

strengths from the two eras are taken into account, for example the quality. Secondly,

ensure that the brand name and niche remains firmly rooted in the company culture

and also that the corporate structure is clearly defined. In the main, it should remain a

family undertaking but new and brilliant ideas must be given a fair hearing before

being discarded. This under taking is a make to break situation and so, due meticulous

care must be taken.

With that twofold caution in place, and having shaken off the shackles of past follies,

we are confident that Salvatore will surge to even higher international market growth,

which in itself is bad news for competitors!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin.

Case study questions

Why do you think Salvatore succeeded at such an early age?

Was the trip to America helpful to his success? How?

Do you think Salvatore is correctly positioned for the current global market given the

succession issues and rapid dynamics in the world?

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Suggested case study question answers

Why do you think Salvatore succeeded at such an early age?

He seems to have discovered his talent and strategic strength at an early age,

improved on it and exploited the resulting competitive advantage and market gap.

Was the trip to America helpful to his success? How?

It was in the sense that he got international exposure as well as marketed himself there

despite all the challenges he faced along the way. International exposure is key,

especially in this global economy.

Do you think Salvatore is correctly positioned for the current global market given the

succession issues and rapid dynamics in the world?

Potentially, the company is correctly positioned only if the succession wrangles are

quickly sorted out independent of the company. If this is not corrected, the company

is headed for the corporate graveyard, where myriads before it have ended up.

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Case study # 8

Bill Gates and the management of Microsoft

He suddenly appeared on the computer horizon and has been there ever since. His

name is Bill Gates, probably the richest and most influential man on this terrestrial

ball. At 14 he had a company and by age 35, he was the Chief executive officer and

Chairman of the Goliath Microsoft Company, except this time, this modern Goliath is

invincible on the computer Market. Gates has sustained a powerful intense love for

computers from his youth days and has continued to improve his mastery over

computer software programmes and this has surely rubbed on to the company teams.

But from whence has Microsoft hailed and what has made it so powerful? What has

been the “silver bullet” and who have been the major key players?

For one thing, it is very clear that Bill has been at the helm of the Microsoft success.

He, along with Paul Allen, a childhood friend started the small unknown company in

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1975, having had a short stint with MITS in New Mexico and then proceeded to open

up Microsoft. The early days were rather rough because Microsoft was unknown in

the computer forest where giants like IBM reigned supreme. Armed with only three

workers, knowledge and determination, the company commenced business in New

Mexico, later moving to Bellevue, Washington. Slowly but surely, Microsoft found its

feet in the relatively new computer industry. Market positioning is a crucial stage.

Knowing that for Microsoft to be spotted, there was need to be aligned to some big

name, hence the choice to develop software programs for IBM was hardly surprising,

this being an excellent strategy. Having noticed that many were more involved in

hardware, Bill and Allen figured that the Software would be the need of the future,

what insight they had! As such, they plunged headlong and developed many

successful software programs such as BASIC and COBOL. These programs were

excellent that Microsoft begun to licence out their products to the computer giants of

the day. The said software programs were IBM compatible for example. In the

fullness of time, Microsoft exploded and proved too big and independent. Thus, this

entity has sailed to higher heights ever since.

But what has been the secret behind Microsoft, when myriad companies in the same

industry have folded up? How has it managed to defy all company demise, but to the

contrary, managed to blossom further? A number of reasons can be advanced when

we analyse its progress against the competitive background from which it was hewn.

Firstly, Microsoft etched out a powerfully unique niche. Its software products had

such unique features which rivals failed to copy, components like the operational and

application packages. Secondly, Microsoft has always been customer focused, in most

cases reading the “writing on the wall” as well as anticipating what features the

customer would like. To that end, the customer has been the one to determine the end

products. In addition, there has been speedy attention to the customer needs and

orders. Thirdly, there has been continuous improvement on the programs ever so

often, so much that the programs are improving every year. Microsoft has always had

a special place for programmers and developers no wonder the phrase “reverence for

the Programmer” is strongly upheld. Not only is there a special place for the

programmer, Bill Gates has created an intensely exciting atmosphere in the company

as there is commitment to graphics user interface and an efficient development

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process. This has been the backbone of Microsoft. Furthermore, the company has had

aggressively strategic marketing ventures and teamwork has been the company

culture from the beginning. The Gates leadership has cultivated an informal but highly

charged atmosphere where people will do their job excitedly, many times working

late. It has been fun to work at Microsoft, not so much the pay but the goals. A

consistently watchful strategic outlook has made Microsoft the trendsetter in the

industry. As can be seen, Microsoft’s success cannot be solely traced to setting the

standard for PC operating systems but rather its strength lies in the integration of

programs so that one can work in more than one program at the same time. In the past,

these programs were independent and could not be integrated, but now this hurdle has

been overcome with the advent of windows. Furthermore, the dynamic and strategic

leadership of Bill Gates whose insight into computers, zeal and determination to

succeed has wrought success for Microsoft. The hiring and nurturing of the best

college graduates and professionals is another way Microsoft has stood out from the

rest. These graduates are sharpened and contribute brilliant ideas to the product

development. Also, Gates has been careful to hire only the right people with the

appropriate acumen, expertise, experience and must be “ Known quantities” equal to

the task. The products, by that token have been of continuously improving quality,

much to the pleasure of customers. As Microsoft has been becoming more complex, a

deliberate effort has been made to maintain a “small company” culture so that the

personal touch is not lost with time. Contact with customers is vital. Whereas in the

past, Microsoft only concentrated on churning out high quality impeccable programs,

it has also gone further to cater for consultancy and customer service. This has been

another plus.

All the above has been achieved by the fiery zeal and determination of basically two

men, Bill gates and Paul Allen. These men, as earlier intimated, worked closely

together until Allen was taken ill in 1983. Bill continued to herald the Microsoft torch

which has radiated brighter over the years. Bill possesses a peculiar simplicity about

him that one cannot fail to notice. He is self-assured, creative, energetic and intense.

The CEO also has a clear mind, insight into multiple issues and very daring too. When

he is about a task, he works feverishly and relentlessly until the mission is

accomplished. Software innovation is not for the fainthearted. Determination,

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diligence and hard work distinguish him from other Chief executives. As one would

expect, such a high profiled man is very passionate and demanding until results are

produced, most of the products being time bound to keep a head start. The irony of it

all is that this zest is contagious because Bill gives as much individual attention as

possible on e-mail and other wise. He works closely with the developers and keenly

reviews everything they do. Together, they have been able to develop such classic

programs as MS-DOS, Word, Excel, Fortran, and Power Point. Apart from these

programs, other developments have been in the operating systems and applications

software, headed by Steve Ballman and Mike Maples respectively. This team has

fought computer “wild beasts” and triumphed! Furthermore, Bill has continued to

champion the development of other multimedia software programs. This man in

particular has been highly inspirational and sensational; ideas never cease to flow out

of that mind!

Now that Microsoft is unquestionably the most powerful organisation in the computer

software industry, many problems have begun to buffet it, which the Gates

administration have and will wrestle with. That Microsoft is and will be the foremost

software giant in the 21st Century is beyond doubt, but to maintain that leadership is

quite another another issue. For one thing, there is a general feeling that the

organisation is fast losing the “small company” culture due to its complex nature.

Although vigorous efforts have been made to resist this decay, change is inevitable,

unless the company is fragmented into smaller units. The said complexity means that

the company by bits loses the fluidity, agility and the “family-ness” of the entire

organisation. Time was when Bill knew everyone by name but with a nearly 14,000

workers worldwide, it is practically impossible to know everyone. Closely akin to the

afore mentioned is the slow but sure increase of people who do not really identify

with the initial passion, intensity, sacrifice, team work, high quality output and the

continuous improvement goals that engulfed the forerunners to the present Microsoft.

Today, it is feared, many join Microsoft with the self-gain motive rather than the love

for the job as well as longing to see new products churned out, far ahead of any

competitor. Continued growth and complexity has meant that the single Redmond

campus has proved inadequate. There is need to expand and probably explore other

sites although this will lead to a further “unity” disintegration in the sense that the

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pace of development will not be uniform. Saliently, more professionals have had to

be hired as well as train staff within. This is no mean task at all. Furthermore, the

popularity of Microsoft programs has far outstripped the ability to satisfy the demand.

Today, it is unthinkable to imagine a computer without the Microsoft programs, as the

integrated operating and application programs are literary in every computer! This has

led to a situation where even the newly introduced consulting and customer user

services are far not equal to the demand. All these are business opportunities lost.

If we were to advise Bill Gates on what to do to remain buoyant, we would suggest

the following:

1. It is good that Gates has acknowledged that Microsoft is no longer the same as in

those formative years. It is far more complex and naturally the centre of attraction

World over. Thanks to his accurate foresight, Bill acted prudently long before

hand in appointing Shirley and then Micheal Hallman as COO. But Gates should

do this more often as need arises long before slothfulness creeps in and solidifies.

2. Bill should continue to be strategic in approach while the Hallman focuses on

operations, ensuring corporate agility.

3. There is need to sharpen the customer sensitivity needs and to be as personal as

possible.

4. Innovations and niches must continuously be explored. This means that Microsoft

must not rest on its laurels but strive to be the trendsetter, where rivals find it

difficult to copy. They must have a satellite approach where information is shared

freely and quickly sent across the entire organisation.

5. Quality must run in all spheres of the organisation and products. The service must

be speedy, timely, personal and customer satisfying. The products also must be

excellent, always adding new features.

6. Every person joining the corporation must be a team player and have a similar

passion for high quality and continuous product innovation. These traits must not

be trifled with nor treated lightly.

7. In an extreme case, where Microsoft becomes too big to be governable, it must be

split into small units. This is a very sensitive line to tow though.

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8. Training of staff must be stepped up more vigorously than hitherto, so that they

are inculcated into the company culture.

9. Effective communication is a must, more than ever before. Management by

exception is becoming a must but this should not compromise detail and

meticulousness.

10. The right information must be on hand all the time. As we know, one can have all

the money but without information, all efforts are endangered because of the

rapidly changing environment. Time and opportunity can only be redeemed when

the correct information is at hand. This information is very crucial for strategic

decision making. Also, everyone in the organisation must know what is going on

at any time and no one relegated to the “information vacuum”. This tends to make

people feel left out and as such, they will not put in their best due to lack of the

same goal empathy.

11. Aggressive and constantly refined marketing strategies must be put in place.

12. Diversification is a welcome option where possible, but ensures that the core

values of the company are preserved and enhanced. More computer accessories

can be developed as well as an expansion of the present consultancy and customer

services.

13. Give incentives to those who bring in excellent product innovations that are

viable.

14. Continue to hire “Known quantities” that have the same corporate goals as

Microsoft. Having qualifications is one thing but being a team player is quite

another issue.

15. Watch the market meticulously, and “benchmark” backward to ensure that the

nearest rival does not get too close. Further, watch out for those unknown entities

that might come up and undercut Microsoft. Recall that Microsoft itself was once

a start up feeble company compared to the giants like IBM. The picture is entirely

altered today because the “Big brother” despised the once “non entities” like

Microsoft. Due to its size and power, it felt secure. Frequent market research and

“market reading” are crucial, remembering that rivals are always prowling around

looking for an opportunity to seize.

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16. Watch out for bureaucracy that has crippled many powerful organisations. This

“vice” tends to slow down the pace of development and corporate agility. The

company structure must be kept as “flat” as possible, meaning that although a

defined and organised structure should be in place, the layers must be kept at a

minimum.

17. Keep information as secure as possible. Developmental secrets must not be leaked

to anyone or else rivals will pick them and outdo Microsoft. This means

information must be classified and accessibility restricted to a few. This must be

clearly explained to all employees that the issue at hand strategic rather than

mistrust but a strategic move.

As Microsoft hurtles into the 21st century, and observing the above points, we are not

afraid of the results. Let those who try to compete with Microsoft do as they please,

we have the powerfully innovative and strategic Bill Gates team, and as such, we can

safely rest our case!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin.

Case study questions

What do you think about Bill Gates as an individual?

Do you think Microsoft is invincible on the software market? Give reasons for your

answer.

What one thing has made Microsoft succeed over the years?

What should Microsoft watch out for if it is to continue succeeding?

Suggested case study question answers

What do you think about Bill Gates as an individual?

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He is certainly a marvellous gentleman, hard working, innovative and very creative in

his own right. He is a leader determined to succeed at all costs.

Do you think Microsoft is invincible on the software market? Give reasons for your

answer.

Not quite but for now, it dominates the global computer software market no doubt but

we have no telling for how much longer because lesson from the past seem to suggest

that anything can happen. Consider the once invincible IBM, where is it today? Its

almost in the shadows of the computer industry!

What one thing has made Microsoft succeed over the years?

Creativity, quality and innovation!

What should Microsoft watch out for if it is to continue succeeding?

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Case study # 9

WAL-MAT STORES, INC.

Wal-Mart was probably the best place to be in at the end of 1993, as it had been

experiencing continuous phenomenal growth for a number of years. It was voted

among the richest companies by the Forbes magazine and had captured the fifth to

ninth spots of the richest American companies. For a number of years Wal-Mart had

been an exciting place for any that worked there, especially under the inspiring

leadership of Sam Walton who had left a huge complex company at his death. Wal-

Mat had exploded from a small insignificant entity to a giant multinational chain of

stores. Now it was by far the biggest in the market, with no rivals to benchmark with.

By that token, David Glass and Don Soderquist, the CEO and COO faced a mammoth

task to maintain the much-heralded triumphs of the past despite changes in the

business environment. But what propelled it to such heights in such a short time?

How secure was their leadership position in the market and how profitable were the

diversification efforts?

After running some small businesses, Sam opened the first Wal-Mat shop in 1962 and

slowly steered the store to success. The secret of his business, as is the case for many

discount stores, was to offer goods and services at a discount, say 10% from the

standard market price. This was possible through bulk purchases and bargains with

suppliers. The source of this company’s success lay in a number of excellent

strategies. Firstly, Wal-Mat invested in technology where all the latest information

was captured, analysed and sent around the Wal-Mat stores via satellite. While other

shops were still using outdated methods, Wal-Mat had this powerful tool thus having

a competitive advantage. This enabled the company also to put in place a Just in Time

system where goods were ordered and delivered speedily to the customer always.

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Inventory, although still very much part of the business was minimised. In this way,

the customer was better served. Secondly, the quality of goods sold was excellent, at a

lower price. This undercut the bigger shops which sold the same goods but at a higher

price. Thirdly, the Wal-Mat employees worked like ants building a castle or Beavers

felling a tree. Teamwork, modern management styles (e.g. “management by walking

and flying around”) and customer focus all blended in so well and complemented each

other to make Wal-Mat a force to reckon with. Those brain storming sessions for

example, made people feel important, appreciated and heard so much that when they

put their hand to the plough, all their souls were involved. Last but not the least, the

choice of placing stores in the neglected “little one-horse shoe towns” was superb. In

a nutshell, the company is what it is because of the technology, Satellite

communication, speedy customer service, teamwork, management style, location,

pricing strategy, cost consciousness and continuous customer taste sensitivity. Wal-

Mat etched its niche very well.

But being at the market apex has its own nightmares. Every time, there is fear of

losing the top slot to some unknown competitor. As such, the giant must watch out all

the time. What are the things to be done to maintain market leadership, if we may

ask? For one thing, Wal-Mat is far much different from what it used to be in those

formative years. Then, it could afford mistakes and still forge ahead, the picture

however, is different today. The company is big, complex, multinational and

diversified. It is also the centre of attraction from the press. Wal-Mat still stands a big

chance to maintain its position if it sticks to the good old company ethics of

teamwork, continuous ethical and quality improvement, and effective communication,

though in a more complex setting. In addition, the company must continue to be

customer focused, be a learning organisation and etch another niche in all new

products. Company agility, quality, timely customer service, aggressive frequently

changing marketing strategies must be the hall mark of the company. Furthermore, the

company must look for ways to ensure that the pricing system, although lower, is

within the law because frequent lawsuits dent the company good will. Also, Wal-Mat

must not tire meticulously studying rivals despite being the market leader,

technological advances and excellent cost saving measures of the past must be

maintained, if not enhanced.

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Having looked at the sustainability of success, we now pass on to analyse the

effectiveness of the diversification into the food industry. As you will recall, Wal-Mat

in those earlier years specialised in non-food products but in the last few years, the

food service component has come in. As will be noted, this industry is potentially

very profitable if well managed. For example, in 1992, it was worth $ 16.3 billion.

This is a lot of money! It is also on record that the presence of this food component

increased the customer traffic because it was very convenient for shoppers. Under one

roof, customers found a whole spectrum of needs from clothing to food, at a cheaper

yet high quality standard. Furthermore, the 24 hours, seven days a week operating

service were convenient and flexible for the customers. In that way, Wal-Mat had

loyal customers who would willingly walk in to buy everything at whatever time they

pleased. Clearly, the food industry has come in handy as a complement and booster of

the earlier business niche. In these turbulent days, a head start as well as another niche

is crucial. Only a few things must be observed to maintain effectiveness. Firstly, the

food quality must be second to none. This entails that the food must be fresh and of a

fine taste! Secondly, the price must be lower than anywhere else. Thirdly, the

customer tastes must be the driving force all the time. Fourthly, the service must be

superb, including outside catering. Fifthly, this food component must be developed in

such a way that it is intergrated within the Wal-Mat brand name and always be

enclosed within the large Wal-Mat product shops. At a later date, separate food shops

could be opened when the fine Wal-Mat food brand name has been firmly established.

With the advent of these potent developments, the spirit, focus and passion of Sam

Walton must live on in principle, despite attacks from rivals, which attacks show that

Wal-Mat is still feared and admired! Forward with strategic Wal-Mat!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin

Case study questions

What do you think contributed to Wal-Mat’s exponential growth over the years?

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Why has it maintained its lead in its respective industry?

How can it develop to better levels?

Suggested case study question answers

What do you think contributed to Wal-Mat’s exponential growth over the years?

Many factors have contributed among them being: Good pricing, continuous

improvement, good customer care, diversification, high quality products and services.

Why has it maintained its lead in its respective industry?

Continuous quality improvement and strategic thinking coupled by strategic acting.

How can it develop to better levels?

It should never stop being a learning organisation. It should also watch those new

industry entrants!

Case study # 10

SERENGETI EYEWEAR: ENTERPRENEURSHIP

WITHIN CORNING INC

Few companies have gone into a “coma” and recovered like Serengeti Eyewear

Company did. Being a subsidiary of the Corning Inc, Serengeti was destined for the

company grave having continuously been dogged by financial losses in previous

years. In 1985, the last straw broke the camels’ back as a decision to shut down

Serengeti was passed. As expected, not all agreed to the decision. Zaki Mustafa was

one of them and thus requested that the ailing company be given another chance of

resuscitation. After protracted discussions and persuasion, Serengeti won another

chance to prove its viability.

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Having been given the leeway, Mustafa and friends asked for independence from the

bureaucratic Corning Incorporation. Thus, the new Serengeti management team took

over the mantle of the company and then went right ahead to do the “organisational

surgery” which, among many things included the following:

1. The company workforce reduced from 135 to 35, and these 35 were unswervingly

committed to the company. The remnant were not the best but the resolved. As

such, Serengeti had people with one goal and aim.

2. The second was to reposition the products in the market. Hitherto, the products

were not properly positioned. Repositioning meant that the company revisited its

target, marketing strategies and response to the customers. It aimed for a product

niche.

3. Quality and good pricing were carefully implanted into the products, which had

not been the case hitherto.

4. Customer sensitivity was noticed as a major weakness in the past. This time, the

Customer was to be king and every effort was made to maintain satisfaction as

well as product loyalty. In the past, what was produced was not what customers

needed and wanted but what Corning perceived people would want.

5. Personalised service was emphasised. As seen in No.4 above, the customer

transactions were impersonal. The Mustafa regime determined to interact more

closely with clients.

6. Partnerships with clients became the norm. This meant that some of the Serengeti

staff members were to be attached to the outside suppliers to ensure quality and

timeliness of products out-sourced. Also, the consumers could freely contribute in

the product design they wanted developed.

7. The Brand name was heightened so that the customers knew that they were

dealing with the high quality, reliable and technical Corning products.

8. Teamwork was noted as the key to success in those turbulent times. This same

philosophy is still deeply ingrained in the company culture.

9. Modern Management principles were imbibed by Mustafa and associates. This

entailed allowing a free and informal working atmosphere to prevail. People were

not strictly supervised or held in suspicion. This strengthened the team spirit.

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10. The company survived closure and then was “weaned off” from the main so that it

could operate independently. In these turbulent times, a company must be fluid,

agile, always learning and flexible, which was made possible independent of the

bureaucratic Corning Corporation.

11. The marketing strategies were sharpened placing the products on the market,

ensuring that the “Opinion leaders” were seen wearing the glasses as well as

giving out some free glasses in the initial stages.

12. Specialists, who easily discern the customers’ taste, have been doing the designing

of new products.

In a nutshell, Mustafa led Serengeti in the turn-around by repositioning products,

customer sensitivity, ensuring continuous quality improvements, modern management

practices, and Company sovereignty. These attributes propelled Serengeti eyewear out

of the financial quagmire. Having come out of the “near death” mishap, Serengeti

awoke from its slumber and continues to this very day. Serengeti has made headway

and is a force to reckon on the market. It has sustained its growth basically because of

three reasons. The first is that Serengeti has won back the distributors’ confidence. In

the past, mutual trust was lost but a lot of work has gone into “mending the fences”.

The distribution channel is now thriving and in addition, the distribution channels

have been broadened touching a wider coverage. The second reason is because

Serengeti has gone international. After successfully establishing itself locally, it went

on to the international scene where it sold its products. It has a presence in Europe,

Canada and Asia where production and research is carried out. The third reason is the

continued expansion of product lines. When Serengeti was coming back to life, its

product line reduced from 230 to 53 because it had to concentrate on its core

competence products. Now that that scenario is past, Serengeti has flapped its product

wings again. These innovations and products have been immensely popular and in

keeping with the continuously changing consumer tastes. The advent of new

technological feats has boosted the company, especially the Serengeti Drivers

sunglasses. The afore mentioned three reasons have been possible because the

company has had excellent pragmatic leaders who have had an eagles’ eye towards

what must be done. There has been constant reading of the times to the effect that the

company is always alert, not sitting on its laurels. Serengeti has had a number of

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hurdles along its pilgrimage to success, hence the need to watch out. Among the many

challenges has been the interference from the Corning Inc top management who have

many times tried to curtail the companies’ apparent independence. Probably there

have been some fears in the Corning management circles that Serengeti has been too

liberated and may eventually prove difficult to keep under the Corning umbrella. But

this cannot be, for the legal papers are in place! Closely connected to the problem we

have advanced, is the fact that the unprofitable years have been footholds for

adversaries to attempt fostering absolute control over the Serengeti. In as much as the

company (i.e. Serengeti) would like to institute a Just in time inventory environment,

it has proved elusive in certain years, as was the case in 1990 when more stock was

marooned in the warehouses because of poor sales. Apart from those problems, the

usual operational hurdles have begun to cling to the company. As Serengeti has been

growing in both sales volume and staff, so has been the complexity as well. Back in

1985, with only 35 staff, every member of staff was counted upon, including the top

executive, who would also take part the daily chores, such as packing! The picture is

entirely different today potentially giving room to a generation to come up that knows

not those earlier ethics, values of diligence, self sacrifice, resilience and simplicity in

relations. Thus far, the tenaciously held principles of teamwork and strategic

orientated thinking have held the company together like supper glue amidst all the

storms. As the future lies enshrouded in mystery, Serengeti stands a great chance to

successfully bull dose her way to the future. This is because Mustafa is an excellent

General Manager. He is one in whom all the attributes of a 21st Manager reside.

Mustafa has excellent management style because he has the following values wielded

on his heart. Firstly, he holds that the rigid type of management is obsolete, as people

are mature enough, not needing a “watch dog” kind of approach. He also firmly

believes that people must be allowed to express themselves, be involved in

brainstorming sessions, smooth information flow to all and that staff internalise

shared values, without which, the company is doomed. He makes people feel valuable

and worth much more encouraging them to do better each time as they exert

themselves. Furthermore, he holds that mutual trust is crucial if teamwork is to be a

reality. The team work conviction entails that the relationships must be excellent and

should go beyond the office environment. It is worth noting that in those earlier years,

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some lowly placed staff did come to terms with the team and family spirit that was

being cultivated in the company. Mustafa has gone beyond the ordinary manager in

that he ensures that his staff are well cared for in all spheres. He has been heard to say

“I regard myself not just a business manager, but a surrogate father to our people. I

say to our employees, “You worry about your work, I‘ll worry about you.” “I am a

friend, and I do it because I get a lot of pleasure out of it.” What a Manager!! Here is

the epitome of a caring Manager! This shows that he does not only care about the

balance sheet or profits but uses the same in a different but effective ways. Trust and

value are mystically married in his chest.

With the rapid ascendance to the limelight has meant that all decisions have a bearing

and repercussions on the company image. In the past, the company could afford some

errors and not injure the sales or image but today, every move is meticulously

watched by both friends and foes. Against this background, Serengeti got entangled

with the Eclipse launch question. Eclipse was a new product that was developed and

was to be launched on the market by Serengeti. As always, the idea was floated

around and there were many opinions over the same. Some thought that this had to be

shelved, as it would be a failure in the light of other stronger brands like Ray ban. It

was feared that a collision with Ray ban would actually “Eclipse” Serengeti’s image

all together! Others however thought that the launch was overdue and had to be

launched immediately. Still others think that the product should have been launched

provided the following are taken into account:

1. Enough market research has been done and favours the launch.

2. The price and quality are what customers want and accept.

3. Ability to undercut Ray ban on pricing.

4. Aggressive sustainable and progressive marketing strategies will be employed.

5. Must emphasise the unique qualities of the product, establishing a product niche.

6. Team approach is still as strong as before.

7. A test launch must first be instituted and in some cases, market segregation

employed initially.

On the above premise, it was strongly recommended that they launch.

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Thus far, Serengeti has proved its robustness, flexibility, and strategic foresight

therefore many are confident that it will continue to glide among the agile

multinational giants of tomorrow!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin.

Case study questions

What do you think of the company’s staff reduction strategy (downsizing) from 135 to

35? Is this practice recommended, especially in difficult times like a

recession/depression time? (E.g. the 1930s and 2008/9)

List the success factors that have led to Serengeti surviving a near death experience

and rising to prominence.

Suggested case study question answer

What do you think of the company’s staff reduction strategy (downsizing) from 135 to

35? Is this practice recommended, especially in difficult times like a

recession/depression time? (E.g. the 1930s and 2008/9)

The answer to this deep and searching question is really relative. On school of thought

does not at all favour staff reduction for any reason at all while another thinks that is

the way to go if profitability being the main goal of business is to be achieved. The

job losses in a recession is another topic altogether but students should discuss this

matter and come up with tangible solutions worth falling back on.

List the success factors that have led to Serengeti surviving a near death experience

and rising to prominence.

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They are many but obviously the one main success factor was TQM in all the

organisational processes, products and service. Strategic thinking and acting certainly

played a big role to this success.

Case study # 11

Virtual team work

“Teamwork is the key word” declares Vic luck, the Chairman of world-renowned

Accounting and consultancy firm-Coopers & Lybrand. Teamwork being the

keyword for the successful company of today and tomorrow, Collaboration is the

Buzzword. Turn every where today; there is a shift towards collaboration and

teamwork so as to reap the best qualitative results. Vic Luck has vast experience

having worked in big companies such as Philips, Ford and Chrysler. These are

giants in their own right as they have well-established brand names. Reading the

article “Teamwork is the key word” from the CIMA Management accounting

magazine, one cannot help but notice how even the service industry is no exception in

the march towards quality goods and services.

Coopers & Lybrand is in the service industry providing consultancy services all over

the world. There is a sudden outburst of consultancy demands on the said firm every

where, especially in Asia. But what is the secret of this company’s success story?

The chairman gives us a number of hints, which are condensed in the following

fashion:

i. Teamwork is highly emphasised. The consultancy firm has 11,000

professionals world-wide. Only collaborative teamwork will do in such

circumstances or else risk running 11,000 “stand alone consultancies!” The

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consultants sit together and brain storm an issue and then come up with one

answer which is the best for the purposes.

ii. Quality standards. Despite the increase in demand of services Coopers is

careful to maintain high quality standards, For it is these very high standards

that put Coopers on the map.

iii. Point system and rewards . The organisation gives points and probably

rewards for outstanding performances. This acts as an incentive to the team to

work hard and attain even higher heights. This has the effect of ensuring

continuous improvement in the services rendered to clients.

iv. Shared Knowledge . The firm has one big database to which all consultants

can avail themselves. Vic Luck has been at the helm of building this network

and has done well because this has propelled collaboration and teamwork.

There is a sense of having one “global team” in this IT24 setting. Shared

knowledge is another buzzword because without information, one is doomed

to failure. Capital alone is not good enough. The firm is getting the benefits of

having one big database, as information is very crucial today if the firm is

going to be strategic. The world is changing very fast, hence the need for the

right information at the right time, and that to teams! “The reliance on shared

knowledge rather than on the individualistic approach is one of the greatest

changes in our business”, quips Luck confidently.

Given the four reasons above, one cannot fail to see that teamwork has turboed

Coopers & Lybrands to the apex of the consultancy business. The hind experiences at

Chrysler, Philips and Ford perhaps have given the Coopers chairman the insight into

gaining a competitive advantaged position. High quality standards and continuous

improvement through teamwork are the only way forward for Coopers and Lybrands.

The article ends with an aptly brisk statement “With Luck, Coopers will probably pull

it off”. This is a fine way to think of a firm and the players therein!

Source:

CIMA Management accounting magazine January 1998 pp 18

24 IT is Information Technology

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Case study questions

What one trait has brought about success to Cooper?

Comment on what Vic Luck’s experience has on corporate success.

Given the glitches encountered in internet connectivity today, how do you think

Coppers has reaped the technology benefits?

Suggested case study question answers

What one trait has brought about success to Coopers?

From the case study, team work, virtual teams and the effective use of the internet. It

would appear that Coopers makes much on who gets on the teams.

Comment on what Vic Luck’s experience has on corporate success.

He certainly has been around and is no doubt a known quantity capable of delivering

once put in any setting needing a strategic mindset. There is a way in which hind

experience shapes us, curves our world view as well as refines our competencies. We

become experts at out trade and easily plain sail where others plummet, thanks to our

hind experience. But again, our past success and experience can be the recipe for

disaster, because we do not know better than the new circumstance we encounter.

Given the glitches encountered in internet connectivity today, how do you think

Coppers has reaped the technology benefits?

It has because they probably got there before others realized the potency of the

internet and are thus more experienced as well as competent in virtual team playing.

With the continuous improvement that we are witnessing today in the IT world,

Coopers are poised to reap even better returns in days to come.

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Case study # 12

Team players at Saturn

Companies and projects largely succeed contingent on the strategy and approach they

exploit. Some work better in groups while others work better in teams. Most of

today’s successful entities work in teams. Thus, the brisk and resourceful article by

the Executive Excellence bearing an interview with Mr Brian McClelland, Vice

President of People systems at Saturn Corporation is extremely handy. We spend

some time analysing it and draw lessons for our application in the quest to etch a

unique niche.

The interesting feature is how the giant Motor Company like Saturn is using teams

and Managers to make headway in its pursuit of industry for leadership. Reading the

article brings to the fore how companies are turning the tables “upside down” in that

the traditional approaches to management and planning have fallen by the way side.

For example, Saturn no longer uses the term “Human resources” to refer to its

workforce because the team spirit is deeply ingrained into the culture of the

organisation. The interview gives the impression that Saturn is a continuously

improving and learning Company. There is a deliberate effort to train and educate

team members for a minimum of 92 hours every year! It is believed that as the team

players are sharpened in problem solving as well as people skills, this will lead to

more satisfied customers and ultimately product loyalty and expansion. This points to

pervasive Total quality in all spheres of the organisation. Saturn was initially put on

the wheels of Team spirit and onto the quality van by the founders who most probably

read the times. The writing on the wall is very clear for the successful company of the

21st Century. The chief reasons why the founders saw the need to engraft teamwork

and quality was the realisation that modern success on the market demands that the

internal customer (employee) is satisfied so that they can put their full weight behind

any implementation plan. It is widely believed that if the people who actually do the

job on the ground (operatives) are involved in the planning and to some extent

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charting the future course of the organisation, they will fully support the

implementation stage because they feel they “own the goal”. At Saturn, teamwork

has worked very well because of the aforementioned people, despite having a

diversity of employee classes are viewed as important to corporate success. Among

the many classes at Saturn are those who are unionised and those who are not. All the

classes are well handled and generally have one goal in mind- To make Saturn the

leader in the Motor industry.

The quest for quality products and market leadership is achieved via two vehicles

given below:

i. By including customers in teams. This helps the organisation know exactly

what the customers need and also ensure that the company is proactive

anticipating customer tastes. Furthermore, the inclusion of customers in the

planning stage helps to build loyalty. If ones` needs are met and actually

exceeded, the same will see no need to jump over the fence to another rival.

ii. The organisation has embedded five shared values in its mission statement to

which all team members must subscribe and adhere to. These values have been

internalised very well at Saturn because the team members actually live out

these values! This is a desired position for any strategically inclined business

of the 21st century. The five values are:

1. Team work

2. Excellence

3. Trust

4. Respect

5. Continuous improvement

All the five values highlight the fact that Saturn has a clear direction and transparent

objectives. The impression created is that customers are left to exclaim, “Who

wouldn’t want to be associated with Saturn?”

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But that is not the end of the story, Saturn also benchmarks other excelling

organisations. This is crucial because once the secret of success is known, the

organisation makes the correct manoeuvres so that it maintains or ascends to the

pinnacle of the market. The effects of these values are evident in the lives and work

culture of all Saturn workers.

Although Saturn has made tremendous strides towards quality leadership, there is still

more they hope to achieve. In the spirit of continuous improvement, Saturn is not

content neither will it rest on its laurels. They are ever making innovations so that the

customer is more than satisfied. The greatest asset that Saturn possesses as it attempts

to be more agile, is the immense brand loyalty that has accrued over the years. Their

immediate plans are to put a product- the midsize Saturn on the market. The company

(At article time) is confident that the customers will love this product. Saturn has used

teamwork and managers very effectively. It is not afraid of the future because quality

is their best weapon coupled with the best management practices.

Furthermore, Saturn has scored another first by having a lady Chairman in the person

of Cynthia Trudell. In a major car company, this is both a plus and potentially a

powerful marketing tool.

Reading about Saturn’s teams and the incredible achievements make one look forward

to visiting the plant and keenly observe TQM at work raking in Market success

through teamwork!

Source:

Executive Excellence magazine, May 1999 issue, page 18.

Case study questions

What is the place of TQM at Saturn?

Why do you think the corporation no longer use uses the term “Human Resources”?

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How well has Kaizen worked at Saturn?

Would you like to work at Saturn? Why or why not?

Suggested case study question answers

What is the place of TQM at Saturn?

It would appear that Saturn makes much of quality and as such, TQM is very critical

to success. Without applying these techniques, there is just no way of succeeding.

Why do you think the corporation no longer use uses the term “Human Resources”?

From the case study, the corporation has a learning culture that ensures a team work

culture is strengthened and internalised in the entire organisation. As a learning

organisation, Saturn is reading the times and trends and uses promotes appropriate

words to foster corporate growth and comradeship.

How well has Kaizen worked at Saturn?

‘Kaizen’ is a Japanese word for “continuous improvement” and it would appear that

Saturn is hot on the path of relentless improvement on its products so that its

competitors do not outdo it. It (Kaizen) certainly has done wonders at Saturn.

Would you like to work at Saturn? Why or why not?

The student should give their answer and give reasons for their answer.

Case study # 13

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Sherwood stores

Sherwood is a retail grocery store chain that has a network of 14 outlets in a

particular city. It has a goal of establishing 10 more outlets in the next five years so

that the total should rise to 24. As at now, the expanded network has established a

computer based information system that allows it to perform efficiently at all times.

The system is both closed and open at the same time, meaning that within the

company, the system helps to monitor the amount of stock in stores, the rate of use

and the reorder level at which new stock must be ordered. This reorder level helps to

cut costs and ensures only optimum stock levels are maintained all the time.

Furthermore, the system keeps links with the outside world-the suppliers and sends

order information as well as reports the quality of materials last ordered etc. Thus, this

system ensures continuity, no shortages or those costly production stoppages on

account of lack of materials. Also, the systems is used as a tactical tool to analyse the

quality, the rate used, the demands and the information for onward transmission to the

top management for strategic decision making. It can be seen that the system helps to

meet the company objectives of control, cost cutting and enables management to

handle the distribution system, process and analyse trends and make long term

decisions that will affect the company. In these times of Just in Time (JIT) inventory

management, the system helps efficiently. Looking at the system, as earlier intimated,

it meets all the three levels of information required to run the organisation. Firstly, the

system caters for the operational level as it helps to monitor stock and alerts when the

reorder level has been reached. Secondly, the system caters for the tactical level in

that the said system generates information for analysis so as to either control the

operations or see whether any more stock needs to be bought or reduced. Thirdly, the

system provides for the strategic level in the sense that the decision making is easier

with the analysed information from the tactical level. At this strategic level, the long-

term decisions are made, and without adequate, relevant information, it is difficult to

make correct forecasts.

Sherwood is a modern company that potentially has a competitive advantage provided

it makes good use of its information system. The customer of today demands quick

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services and will not mouth any delays. Also, the overheads must be kept as low as

possible to increase the profit margins.

Source

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

What are your impressions about the store chain?

Is it likely to sustain its competitive advantage?

What are some of the key ingredients that will contribute to success?

Suggested case study question answers

What are your impressions about the store chain?

It is a very efficient and progressive entity that is like to remain in profitable business

for a long time to come. The chain store shows and has adopted, internalised all the

techniques necessary for any entity to succeed in this ferociously competitive world.

Is it likely to sustain its competitive advantage?

Naturally, if it continues on the learning path and continuous improvement in its

processes, customer care and right pricing as demonstrated in the case.

What are some of the key ingredients that will contribute to success?

The major key is that it places quality on a high podium in all it does, whether

customer care, service, process or responsiveness. In short, TQM seems to have been

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well embedded in the chain store. One hopes this efficiency continues even after the

expansion from 14 to 24 stores.

Case study # 14

Tip Top Diner

Tip Top Diner is a budding restaurant with an increasing clientele. Most likely, it has

an excellent reputation of having good menus and as such, people rush to have a bite

from there. It seems as the market has increased over time, the eating place has begun

experiencing problems handling clients due to the demand for its menu. The overall

objective of the restaurant is “to provide good service at low cost and to make a profit

of 10% of the total sales volume.” Therefore, there has been concern lately to

diagnose the problem and then offer possible solutions. A number of root causes have

been identified as below:

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1. The workers and staff do not seem to be well coordinated and most probably,

there is no proper leadership or system of doing things.

2. There seems to be an absence of a team work culture.

3. There seems to be an information breakdown. Either the information is not well

analysed, not available or just not timely.

4. It seems that the entire restaurant is overwhelmed with the good demand such that

there is hardly any time to sit and analyse the trends so as to think strategically.

5. The facilities on the other hand may not be adequate and may need revisiting by

way of increasing them, modernizing them or simply replacing them to the

increasing demands.

6. There seems to be an absence of a computerised information system that helps to

forecast, control or know what stock levels to have at any given time. This system

will help to produce the food freshly at the right time and avoid things like

shortages of some ordered food. Customers get irritated and go away.

Furthermore, customers want to be served timorously.

Having discovered some of the possible root causes, the company must respond by

realigning itself again to the right levels, the customer needs and demands, the right

facilities, the right staff, building the right culture by way of team work and most

importantly, installing an IT system for prompt analysis and decision making. The

opportunities for market expansion are great and if poorly handled, will lead to a slow

death of the restaurant, as customers will gravitate to other competitors.

The scenario at Tip Top Diner is one that can be simply solved by using Information

Technology through installing on line systems that will automatically tell the status

quo. Another thing worth noting is training staff to use these gadgets and also by

motivating them in various ways. Can you suggest other ways?

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

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Tip Top Diner is an excellent budding restaurant, if you were the proprietor, how

would you improve and expand its operations?

What one factor would you focus on as you head towards market expansion?

Suggested case study question answer

Tip Top Diner is an excellent budding restaurant, if you were the proprietor, how

would you improve and expand its operations?

Clearly, the restaurant has the goodwill and right clientele but needs to invest more it its operations management so that things change for the better. The Restaurant cannot afford to squander the opportunity already in its lap and grasp. Thus, our recommendation is that quality should be all pervasive and embedded within all operational aspects. In that way, the process will then guarantee better results. Lessons must be learnt from other successful fast food entities like KFC or McDonald. Bench marking them wouldn’t be a bad idea. With respect to expansion, the strategy must be crafted right using SWOT analysis and other tools that will help the organisation identify and exploit its core competence.

What one factor would you focus on as you head towards market expansion?

If I was at the restaurant helm, I would focus on TQM in all operational aspects of the

restaurant. Our service and products must be as perfect as can possibly be.

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Case study # 15

IMPACT OF TECHNOLOGY

echnology has had a tremendous impact on our daily lives in unprecedented

ways. Almost in every area of life today. In one way or the other, a computer

system has been at play, making it universally applicable. The impact cannot exactly

be measured because it is too big as it permeates all sectors of society whether

privately or publicly. Were we to recount one by one where it is utilized, want of

space to list down all the areas would be the limiting factors.

T

For instance, the advent of IT has brought about efficiency because information that

previously took many months to process only takes a few days or hours to deal with.

By that token, decisions are made intelligently and promptly unlike in the past. In

addition scanning has even made things extra easier because entire texts and photos

can simply be copied and pasted on another text in very short moments. In the stores

for example, the online inventory system not only helps in security controls but helps

to give an up to date picture all the time.

Another impact is that IT helps individuals to work quickly and conveniently thereby

hastening the processing of transactions, with proper orientation, IT helps to develop

the company as well as give it a competitive edge above its rivals. In other areas such

as debt collecting and accuracy are some other impacts that IT has brought. In the

past, a lot of mistakes and debt collecting was far more strenuous than today in that it

was difficult to track down defaulters or those who received loans elsewhere but

bolted to another area. With the advent of IT and establishment of a database, such

people can be detected and tracked down. Further more closely connected to what has

just been highlighted; at the simple click or punching of some buttons, an entire

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profile of someone can be displayed on the computer screen. Thus, mistakes are

avoided at that stage.

Apart from increased efficiency and stock control, IT helps the organisation to

maintain or expand a market share in the market. Clients like an accurate, efficient,

friendly and attentive service delivery system that matches with their needs. If any

given company can provide that, the said clients will mob around the company like

moths to a light. IT is here to provide this service.

Thus, in our view, IT is here to bring about the virtual office remote application for

school, e-commerce prompt and current updating of information & books as well as a

strategic tool to achieve higher heights of service. I would encourage any company

worth its salt to enter the new millennium on an efficient note via IT!

Case study questions

What other impacts has Technology had on day to day life?

In your opinion, is it possible to ignore technological developments? To what extent?

Suggested case study question answers

What other impacts has Technology had on day to day life?

The student should give answers that are ‘outside’ what has already been highlighted

in the case above.

In your opinion, is it possible to ignore technological developments? To what extent?

It is clearly not possible to totally ignore technological advancements. What is

possible is to manage its use so that technology does not rule but is a tool for us.

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Case study # 16

TORONTO OFFICE SUPPLY COMPANY

Toronto office Supply Company is a budding little entity that has over 30 branch

stores, having begun with only one-store two years ago. It quickly proliferated into

and around the Toronto Metropolitan area. As a result of this expansion, it became

difficult to keep track of stock levels among the branches resulting in mistakes and

high expenses to maintain the stock. Not having accurate information timely and

promptly is extremely costly. As such, there has been talk towards computerising the

entire system so as to bring about efficiency and to eke a competitive advantage. But

to put up this system is not as straight forward as it appears because certain key

people have different opinions and objections towards the installation of a

computerised IT system. For example, Gerald Clark, the president of TOSC thinks

that what matters is the growth of the company rather than a new computer network

system. As such, he has devoted himself to the same rather than the operations.

However, the escalating costs have forced him to addresses the issue by Hiring

Marple leaf Associates to advise on the computerisation. Having been advised on

setting up a wider area network (WAN) using a central chip, Clark presented his case

before his staff for consideration.

As expected, there was some dissent. Charles Robertson for example felt the initial

installation and computer purchases costs are too high to be justified. He thought

waiting few months should bring the computer prices down. But this

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recommendation, although true and plausible overlooks issues such as the rapid

technological changes as well as the unavoidable high initial installation costs.

Another officer, Sarah Blake thought that the company was about to purchase

obsolete computers that would probably soon not be compatible. Sarah is right but it

must be noted that technological changes are too rapid and one cannot possibly cope

with unchecked continuous changes. The best is to either purchase the latest

computers and network at a higher cost or simply settle for this one & then upgrade it

with time.

Having looked at the two objections, the consultants’ recommendations are examined

as well. After careful consideration, it is found that the recommendations are

potentially good if the meet they immediate and long term needs of the company. As

such it is impossible to be up to date. Another thought is to ask the consultants to look

around on the market and identify an advanced but cost effective system that is

relevant current, “upgrade able” and probably long lasting from another supplier. One

thing is certain preferences & opinions will always differ but what counts is whether

the system and network delivers the goods as per customer requirements.

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

How can the company best improve its efficiency, apart from what has already been

suggested in the text?

Suggested case study question answer

How can the company best improve its efficiency, apart from what has already been

suggested in the text?

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The student should examine what is on the table and already suggested by the

consultant as well as the two objections raised and then offer their own solution or

simply consolidate what is there though they must give reasons for their answers.

Case study # 17

KRIEGE CONSTRUCTION COMPANY (KCC)

Kriege is a construction company operating in Western Canada. It wishes to

automate & computerize its construction proposal procedures. It hired a consultant to

analyse the situation.

The situation on a ground just now is that the company has no previous experience

with computers except for word processing programs for secretarial services. As such,

most of the managers have no prior experience with computers. So what should be

done? When should this exercise be commenced?

Kreige hired consulting firm (Read & Owens) though Mr Kaline have suggested that a

proposal system using an insite data base management system that has been tried

elsewhere. The choice of the Macintosh program to run the insite package is an

excellent idea because the same (insite) is user friendly for all including the managers

who have little experience with computers. Kaline have suggested to get started in

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two months time. If you were part of Kreige decision makers, what would be your

position on this matter?

Source

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

If you were part of Kreige decision makers, what would be your position on this

matter?

What do you think about the insite program? Will it help matters in any way?

How best do you think a new computer system should be adopted, let alone

introduced for the first time to a company with no previous connections to computer

like Kreige?

Suggested case study question answers

If you were part of Kreige decision makers, what would be your position on this

matter?

If I were part of KCC, we would not object to that proposal because company policy

does not hinder us though Mr. Kriege and the owner of the consulting firm are close

circle of friends. We are pretty optimistic that objectivity would not be lost, if not

enhanced. The customer needs would be better met in this way. At another angle,

Kaline, we are certain will have taken all factors into consideration. In our thinking,

he (Kaline) should have looked at the cost effectiveness, versatility and compatibility

of the recommended program.

Having taken into consideration of the above factors, some problems would still

stubbornly surface if KCC goes ahead with Kalines’ present recommendations. We

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think the costs, would be either high or low affecting future cash flow. IT is constantly

changing so the recommendations are subject to change with time.

What do you think about the insite program? Will it help matters in any way?

The insite program is potentially good and might help the organisation very much.

However, the ethical concerns raised must be handled objectively so that things do not

back fire in future. The student must demonstrate that they have understood the case

and give reasons for the answer they give.

How best do you think a new computer system should be adopted, let alone

introduced for the first time to a company with no previous connections to computer

like Kreige?

The student should suggest practical ways that will help the organisation adopt and

internalise the software bearing in mind that most of the managers do not have

computer skills if not opposed to them! The student must empathise with the

managers and suggest practical ways that will help matters such as training,

sensitization among many options.

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Case study # 18

STATE MUTUAL LIFE INSURANCE COMPANY

Mutual Life Insurance Company is an entity that has been rapidly growing and

changing from strength to strength. Changing by leaps and bounds, Mutual has kept to

its main objective of providing quality service to its upper middle class insurance

customers.

In the past years, the changes in the environment have been so rapid and in the quest

to keep abreast as well as position itself competitively, Mutual life has taken

advantage of the Information Technology. Commencing with automating in

information systems in the early 70s, Mutual proceeded to upgrade most of the batch

systems to the extent that by 1980, the company had drastically changed in keeping

with the trends. As earlier intimated, the target group is the upper middle class and as

such, all efforts are designed to please, capture, satisfy and service the target

customers using the information technology strategy. Another strategy put in place so

as to maintain an advantage is the introduction of new products periodically, yea, in a

shorter time. How is this advantage to been achieved? A number of ways come to the

fore. Firstly, the company has continuously launched new products faster via the use

of IT. Secondly, the company has used IT to guarantee quality in goods. Thirdly, the

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company has utilised the Internet to boost the use of e-commerce, is online, real time

and fourthly has exploited the possibilities of using the virtual office.

In the fifth place, Mutual Life Insurance Company has ensured that they diagnose the

customer needs and anticipate them, thus being proactive. The customer is king in

these times.

As Mutual Life Insurance Company continues evolving using Information

Technology, what new thing must it do to remain competitive?

Source

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

What do you think about Mutual Life’s competitive strategy as relates to IT?

How best can the entity beat other competitors in an ever changing environment?

Suggested case study question answers

What do you think about Mutual Life’s competitive strategy as relates to IT?

The competitive strategy of Mutual Life is very good and it would appear the entity

has grasped the correct essence of IT though the strategy continuously needs refining

so that it remains fresh and relevant all the time. In short, the organisation should

change with the times by being timorously responsive to the changing context.

How best can the entity beat other competitors in an ever changing environment?

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Quality is the key factor buttressed by appropriate cutting edge state of the art

technology. The said technology must be effectively exploited to strategic ends or else

the potent weapon in their hand may not be advantageous as should be the case.

Case study # 19

CLARK CONSULTING

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Clark consulting is a company that has been in business for many years but has not

used an expert system before to handle any of its cases. With the advent of

information technology, the said company has been forced to use an expert system to

help in decision making in certain areas. Expert systems are computer programs that

have been developed lately and use some kind of artificial intelligence to help come

up with proposed decisions in a very short time. These self-same systems can advise

appropriately, and in many instances act as experts in certain areas. Their

recommendations, most of the time, are as good as an actual human expert responding

except that they have certain limitations that make the human brain superior. For

example, expert systems have no emotions or any ability to treat exceptional cases.

Generally, expert systems are helpful.

As such, when a company wants to carry out an evaluation as to the potential sales

leads, an expert system will be handy, as it will ably give indications. With respect to

selecting potential stores sites, develop an effective sales incentive program and the

supply of legal advice about corporate taxes, expert systems will help greatly. But to

diagnose problems with plant production equipment, the expert system may not help

much because it has limitations. Such issues need a good flexible and inquisitive

human mind that may not be possible with the extant most advanced artificial

intelligent computers.

As Clark consulting treads this new route of consulting using advanced expert

systems, they are uncertainties along the way, should they go ahead or abandon this

whole exercise?

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

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What is the place of Artificial intelligence in today’s world?

How can this program be used as a competitive tool in today’s world?

What do you think about the expert system about to be adopted by the Clark

Consulting?

Suggested case study question answers

What is the place of Artificial intelligence in today’s world?

Artificial intelligence has been gaining ground over the years especially in the

developed world where computer programs have been developed which have

spectacular capacities such as being able to learn things, much like the way a child

learns as they develop. At the moment, artificial intelligence may not be that

pronounced but the future certainly holds promise for its eventual triumph. Some form

of intelligence is seen in robots, advanced space grafts and planes etc. Thus, we can

conclude that artificial intelligence is advantageous and finds much ground in today’s

world.

How can this program (Expert system) be used as a competitive tool in today’s world?

This helps in the quality of decisions made as well as improves the efficiency of the

user. For instance, decisions will easily be made in a shorter time frame.

What do you think about the expert system about to be adopted by the Clark

Consulting?

This is an excellent system as long as it is used in appropriate places especially in

quantitative or statistical related decisions. The qualitative may still need the human

mind still. If the one part is handled by the expert system, then that is half the work

done and brings down the work load!

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Case study # 20

TREXEL ASSEMBLY INC

Trexel Assembly Inc (TA) is a budding Company and has lately recorded

unprecedented exponential growth. There has been an excellent expansion rate but

alas, the organisation is reaching levels that it cannot sustainably manage. The

Company seems bugged by a number of problems, largely hinging on the use of

Information Technology (IT). In as much as it is successful, it is threatened with

failure in the long run because it has a Management Information System (MIS) that is

obsolete (for its purposes) as well as suffers from multiple glaring errors in data

capture especially to do with the payroll. Those two problems have somewhat

crippled relations among staff and may ultimately precipitate disaster at a later stage

unless immediate emergency measures are put in place such as:-

1. Setting up a more powerful, versatile and relevant system.

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2. Continuously training staff to adequately handle all issues.

3. Installing an online system that will update records promptly and

4. Considering changing programs or designing ones that suit the local needs.

Having diagnosed the underlying problem of this particular IT component, some staff

(probably line managers) have suggested to management that most of the problems

can be sorted out. For example, Frank suggested that more clerks be hired to ensure a

quick delivery of materials but others think appropriate updated technology should

take care of this thereby eliminating the need to hire more people at a costly note. As

for the purchase of new software for accounts receivable, still others think updated

levels of the same system may deal with this although the cost component worries

them. They are however open to purchase the said software as long as it is compatible

with current system. Tricia is a casualty of the faulty system arising from data capture.

Going by what she has reported, some have concluded that the program may be

entirely to blame because some errors may have occurred during data capture and

processing. There appears to have been very little review before processing. If the

problem is truly with the program, the company may consider changing software

suppliers or better still buy a new program or update the present one to an online one.

With the new system in place, these problems with be things of the past and then

focus will shift to other more critical issues. What route should Trexel take?

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

What route should Trexel take?

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Suggested case study question answer

What route should Trexel take?

The answer to this question is relative. The student may elect to go for a complete

change over to another system, update the existing one or simply employ more

competent staff to minimise problems. For instance, should the organisation elect to

hire new staff, there is need to continuously train them so that they have the correct

competencies which in itself is costly but eventually pays dividends. Should there be a

complete overhaul of the system (change over), the initial costs may appear

astronomical but will be cost effective in the long run. In addition, output quality will

be enhanced as well. In either case, the student must give a tangible reason for their

answer.

Case study # 21

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BABBIT INC

Babbit, Inc is a wholesale sporting goods firm that serves clients in a two state area. It

has developed a local area network accessed by all sales people as they go about their

business by way of micro computers remotely connected to the main frame. This

connectivity helps them to find out the credit limits & inventory of particular lines of

goods that are in store at a particular point in time. Granted that this one of the latest

technological developments (of using note pads line is good in and of itself though

concerns were raised as to the security of the system thus, the aim of this report is to

deal with the following queries raised.

1. The threat of unauthorized access to the e-mail system.

2. The unauthorized access to the LAN and to the main frame financial

accounting data base.

3. The risk of theft of the note book computers and the software and data stared

on them.

You have this question placed on your table. As chief IT officer at Babbit Inc., you

are requested to give a response to these concerns, giving your opinion on each point

raised. Give an analytical answer bearing in mind that this may have a bearing on the

company competitiveness. Should Babbit continue with this LAN?

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study question

You have this question placed on your table. As chief IT officer at Babbit Inc., you

are requested to give a response to these concerns, giving your opinion on each point

raised. Give an analytical answer bearing in mind that this may have a bearing on the

company competitiveness.

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Suggested case study question answer

Analysis and recommendations

The fears are indeed legitimate and the following proposals should suffice to inoculate

the system from possible interference:

Firstly, the issue of unauthorized access to the LAN and the mainframe is real in the

sense that people called “hackers” and other intruders can have access by either

stealing passwords or introducing programs that unlock the system. In the worst

circumstances, they even introduce viruses that ravage the system! In our opinion, all

these fears can be allayed by introducing secret passwords (which we have) that can

be used and frequently changed to eliminate all possibilities of someone stealing the

same to unlock the system. Another effective way is to have edit rights given to

specific people only authorized to access, edit or change data. Others must be barred

from these rights. Finally, the organisation can install “fire walls that will act as a

shield and off any intruders, by possibly sending alarm to the owner of the system.

Continuously updating and installing current anti-viruses is another must to ensure

security.

Secondly, the threat of unauthorized access to the e-mail system is generally the same

to the above except that some mechanism must be put in place to stop people

intruding (these have been). One of the ways is to licence people and define special

boxes for them with passwords known only to them. Fire walls are handy here too.

Thirdly, the risks of note book computers & software data to be lost can be dealt with

in a number of ways such as backing up, Insurance, pass wording or licensing the use

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of the said computers to particular staff only so that if anyone else has access to them,

the computers will not respond (the note pads). With the above safe guards in place,

we have no doubt that all is well although you will note that we cannot guarantee

security though we can certainly minimize the risk by installing both physical &

software controls i.e. passwords, fire walls or restricting physical access to the

computers at hand.

Your feedback is highly appreciated.

Case study # 22

NORTHERN PAPER CAMPANY

Western Paper Company, a very busy and expanding company has been

experiencing complaints of inaccessibility by clients and as a result, a threat of losing

them is emerging. This thorny issue has bugged management and inspections

department suggests that people (staff) hold the line for personal use which is

detrimental to the organisation. What should be done to rectify this hurdle? A number

of options have been advanced such as the procurement of special equipment &

software for the private brunch exchange (PBX), as well as centralised the external

calling system both these options look good.

In terms of equipment, it is advisable to buy handset control operator consoles cabling

& distribution boxes as hardware. There is need to buy compatible software each of

these will add to advancing the probability of opening up the organisation to clients.

The hardware for instance will be useful to protect software as well as provide the

needed service. Once the PBX is in place, it will help to allocate phone lines

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automatically and ensure the clients get preference access to the company. This

should improve the connectivity tremendously.

Obviously, any system raises concerns. In this regard the following concerns will

surface. Firstly, is the equipment and software compatible and agreeable with the

company needs? Secondly, how durable & relevant is the soft & hardware? Thirdly,

will the proposal new gadget(s) be cost effective in the long ran, bearing in mind that

the initial costs might be high?

Northern Paper Company has a real problem at hand and it can be only sorted out by

the right soft and hardware, relevant & in keeping with the corporate needs.

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

If you were at Northern Paper Company, how would you react and sort out this

problem? Would you adopt and recommend the PBX option? Give reasons.

Suggested case study question answer

The student should first of all give their initial reaction and course of action they

would take to sort out the bagging problem. In the second place, the student should

state whether they would go for the PBX and why. If not, let them give reasons as

well as offer alternatives.

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Case study # 24

STERLING INDUSTRIES

Sterling Industries is a company involved in the textile manufacturing industry,

having developed segments of its information system over time, with multiple updates

& upgrades. As a result of these modifications, the system has been grossly inefficient

and has caused a backlog of as bad as six years in some cases! There have been

demands in one quarter to have the system completely over hauled. What should

sterling industries do about this dilemma as the fragmented system is more of a

liability rather than a help? Below is a suggested route out of the problem offered by

some company staff in one brain storming session:

A number of steps are here suggested to deal with the problem as follows: -

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1. Have junior management make a firm commitment towards the development

of the new system. This assertion trickles down the structure as people will

view it as important.

2. Have the relevant people prepare for the study in terms of orientation,

appraisal, and survey prior to any formal general meeting.

3. To launch the entire exercise hold a kick off meeting signalling the changes to

hand.

4. Then define the business processes, what is going to be done, how and when

so that a common understanding is arrived at.

5. Furthermore, there is a need to define the data classes as all the different

batches of data will haw specific locations

6. Sixthly, proceed to define the executive perspective as to what the outcome is

expected to be

7. Having set the executive perspective, proceed to assess the actual business

problems at hand. This process helps to sort out the problem where it is

exactly.

8. As the build up continues, there will be need to further define the information

architecture, what will be the set ups? What are the components to include or

leave out? There are some of the questions to tackle at this stage. All of them

must be listed down and then.

9. Determine the priorities in relation to the resources and commitment in (1)

above. After this has been done then

10. Ensure that a review is done at this stage of the information system so that

management can make comments before a final draft is done.

11. The last but one stage is to recommend an action plan to deal with the problem

to hand in keeping with the earlier findings and the crown the whole exercise

by.

12. Reporting the results against a background of the objectives set up.

Having followed the above steps, it is expected that the results should improve,

especially if the data processing management and user management sectors are

properly co-ordinated during the study. The data processing management section must

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process data quickly while the user management sector must ensure that the actual

needs of the customer are taken into consideration at the planning & implementation

stage rather than just guessing what clients need & want.

With the right procedures & people in place, sterling industries will easily surmount

these problems and begin to clear the menacing backlog. What does Senior

Management think?

Source

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study question

You are in Senior Management and are expected to respond to this proposed route to

correct the problem at Sterling Industries. Convene a meeting and then write a

response, giving additional views as well as Management position on the suggested

solution. 300-500 words should suffice.

Suggested case study question answer

The student should state whether Management agrees to the proposal or not with

tangible reasons in each case. Remember that corporate image is at stake here.

Case study # 25

Pine Products Company

Pine Products Company has been expanding since it began 5 years ago. To maintain

its phenomenal grow. There is need to have a very good efficient system that can

handle a huge volume of work. The present system is slow, inefficient and naturally

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has raised discussion between Pratt Williams with his son, John Williams. Pratt thinks

that it is prudent to establish two remote data entry sites as well as one printing

Station to cope with the demand. In this way, the new outlets will not fall into the

same problem as the other two outlets. In addition, Pratt thinks the present inefficient

system should simply be updated to meet the current situation. On the other hand,

John thinks the prudent thing to do is to replace the entire system rather than

upgrading it as doing so will cosmetically solve the problem. What should pine

Products Company do? What options are available?

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

What should pine Products Company do? What options are available?

Suggested case study question answer

What should pine Products Company do? What options are available?

The first option is to simply upgrade the current system in terms of memory capacity

expansion so that it becomes “bigger” & faster.

Secondly, just dispose off and buy another system because it will not only be efficient

be versatile but, flexible and more cost effective in the long run.

The third option is to limit the use of the old system to certain functions while

exploiting the remote outlets to be installed in the two areas.

Pratts’ recommendation is probably better although more costly because new system

is current, flexible & versatile. In this way there will be no need for a remote terminal

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as everything will be online & in real time. The old system will still lose time to

accomplish its tasks.

As Pine products proceeds on its quest for efficiency, we think the options listed

above would be handy. We say so because they are more realistic and cost effective.

As for the use and installation of a server for the remote terminals, it is a good option

but slows down progress significantly. An overall online, real time system is far above

John’s and Pratt’s recommendations.

Case study # 26

CF INDUSTRIES

CF Industries is a company, like many others, who have been in business but due to

the pressure, there has been a backlog of work. The delay is so great to the extent that

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some cases are two to three years behind and lie in the “In” tray. As such, CF has

embarked on developing an information system that will help clear this entire

backlog, update files and then give strategic guidance to the said entity. In doing this,

CF has resolved to use a 4th generation language, which, it is hoped, will be both user

friendly and versatile. However, to implement this resolve, a plan has to be in place. If

we were at the helm of the implementation, the following would be our proposed

plan:

First and foremost, we would define the problem and know what needs to be done.

Secondly, we would set the objectives for the user support centre i.e. Help users

acquire abilities to enable them develop information systems tailored towards both

individual and departmental needs.

Thirdly we would ensure that the role of consultants is clearly defined so as to avoid

overlapping, inefficiency or unnecessary overheads. We would ensure that among

other things the consultants provide training, technology assistance, and management

of data as well as onsite consultancy services.

Fourthly, in carrying out the above-mentioned task the consultants will help maintain

a number of “tools”. Among them would be the main frame and microcomputer-based

tools as the case maybe. These tools will carryout adhoc queries, modelling and

analyse applications. With that in place, we would crown up the entire exercise in the

fifth place by instituting a framework of policies that will govern the systems

development discipline. Embedded in the policy will be the ensuring of quality in

areas such as data security, validation, testing controls documentation as well as

operations management covering issues of security, backup and accessibility.

Having done the five cardinal steps above, we would then venture full throttle to

implement the program using the 4th generation language. Armed with the above

system, we are not afraid that CF will surmount all hurdles. Do you have any other

quality suggestions to further improve the situation in addition to our suggestion?

Source:

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Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study question

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Do you have any other quality suggestions to further improve the situation in addition

to our suggestion?

Suggested case study question answer

The student should originate new ideas that will either complement or side line the

ideas and steps thus far suggested in the case study. The aim is to sort out the backlog

and improve qualitative efficiency at the entity.

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Case study # 27

Munson Beverage Corporation

Munson Beverage Company owns 30 warehouses and the distribution equipment

necessary to supply a variety of soda products to retailers throughout the Midwest. It

(the company) is computerized and has been seeking to keep abreast with the trends.

To do this, the company generates and exploits various reports that contain valuable

information used at different management levels. Some reports are daily and

operational while others are tactical reports handy for middle managers to control

operations. The third set of reports is at strategic level from where the top

management get valuable indicators for strategic decision making so that the

organisation is steered to safety and properly positioned.

Among the reports that are generated and churned out are the following:

1. Aged accounts receivable reports. (aging analysis)

2. Balance sheets.

3. Current merchandise inventory lists.

4. Employee earning records.

5. Fixed assets and equipment inventories.

6. Income statements.

7. Payroll sheets.

8. Schedules of accounts payable.

9. Schedules of accounts receivable.

10. Sources and uses of funds.

11. Stock out lists.

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All these reports are useful and appropriate depending on what one is doing. For

example, if one wants to find out the status of the company stock or debtors, the

balance sheet is handy especially if compared with the previous period. Although

these reports are excellent and useful they will be more relevant if they are on line,

current and frequently updated. Furthermore, one more report may be handy to

include that gives a picture of the market share held, the product and the main

competitors/rivals in the trade. It is helpful to have a periodic market research report

for strategic purposes. Could you recommend any software to increase efficiency and

quality?

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study question

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Could you recommend any software to increase efficiency and quality?

Suggested case study question answer

Could you recommend any software to increase efficiency and quality?

If we were asked as to whether we would recommend any new software for the organisation so as to mark up the efficiency levels, we would suggest that a constant updating exercise be done often so that the programs remain versatile, current and relevant all the times. If any new software is on the market, we would ensure it is tested before it is adopted, of course bearing in mind the overhead costs and whether it is keeping with our corporate goals. As the organisation expands with warehouses dotted all over the country, a wide area network that is on line may be handy at some stage so that at all times, information such as stock levels and records levels are automatically updated for all users to have a correct picture. The times demand the prompt action at all times by all. Today, we believe information is the most valuable tool for proper control, operation and strategic decision-making Munson Beverage Corporation stands a chance of excelling given its potential advantage to hand. Alternatively, the organisation could consider adopting an online Just in Time (JIT) system. This significantly cuts down on storage costs.

Case study # 28

REPORT ON SRC PROBLEMS

A scenario has arisen in your company requiring your response, decision making and

expert pragmatic steps to heal the ailing organisation. An expert was hired to carry out

an organisational operations audit/evaluation and has come up with the report given

below. Further queries have been raised and you are required to respond. Read the

findings and respond to the case question.

=============================================================

TO: The Director

FROM: Chitunguza Maloza – Consultant

DATE: 27/02/2009.

SUBJECT: REPORT ON POOR PERFORMANC OF SRC

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Introduction

A survey was carried out by our firm to ascertain the root causes of the dismal

performance of the organisation in recent years (2000-2008). The survey covered all

areas of the organisation ranging from management style to all the delivery systems

hinging on time management. This entire process took place between 15 th-23rd

February 2009 and the report on our findings is here presented.

Objective

The objective of this survey was to find out the root causes and reason for the dismal

performance of the organisation.

Methodology

The methodology used in this enquiry covered both qualitative and quantitative

aspects. The questionnaire method was used as well as person to person interviews

conducted. This was a 100% enquiry and thus no sampling was used. The data thus

generated was subjected to our SPSS software although some parts of the quantitative

questionnaire used Epi info.

Findings

The survey established that the organisation was grossly inefficient in a number of

areas that led to the poor quality and un-timeliness of report submission. Among the

major possible causes of the problems were:

1. The high turnover of staff.

2. Lack of proper training and orientation.

3. Constant disturbances (interference) and interruptions of professionals

assigned to a task.

4. Lack of time consciousness and goal setting.

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The survey also discovered that although SRC was well equipped with modern

equipment, there was probably a serious management problem that led to a poor and

uncohesive fragmented teamwork spirit among staff, although on paper, the reverse

was portrayed.

In the study, the following were the problems identified as well as assumptions taken

in arriving at conclusions.

Problems & symptoms of malady

(i) There was a consistent trend of late report submission and in many cases,

contract breaching in terms of time frame.

(ii) There was a high employee turnover leading to serious gaps on many

projects.

(iii) The assignments/ contracts turned out more costly than anticipated due to

either poor projection or longer than planned project completion.

(iv) There were more errors in the systems installed leading to frequent “fire

fighting” stints to staff and thereby contracting ‘bad will’ from clients.

(v) There were low quality reports & systems in the organisation’s output.

This would be traced to the calibre of staff hired.

Assumed problem root causes for the above issues were:

(i) Low morale among staff

(ii) No cohesive team work among staff

(iii) Lack of a strategic leadership vision

(iv) An archaic Management style.

In our findings, we feel that either the poor management of the staff may

contribute significantly or else the delivery system is not properly aligned. In an

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ideal situation, the right staff and systems must be so well aligned to the extent

that every product churned out is of a high quality. As it is, management does not

seem to be conscious of time or the corporate image created outside, as long as a

task is done anyway as time is not a factor. But nothing could be more damaging

in this modern age than not to stick to contracts, especially those that are time

bound. Once a task is done within bounds and above expectation, the corporate

image rises by that token, and customers (internal and external), who are king,

market the organisation to many more clients. Having briefly analysed the

possible problem root causes, we now proceed to give some of the possible

solutions that will hurtle SRC out of its present doldrums.

Firstly, the organisation must strive to hire and maintain seasoned ‘known

quantities’. It is not enough that one is a professional but are they adept and apt to

do the job efficiently in a given time frame?

Secondly, the organisation must begin to be strict with deadlines and timeliness.

In other words SRC must set realistic timeframes and work round the clock to

accomplish the task. The shorter the time frame, the better. This hurdle can be

surmounted by attaching the right people to the right tasks. In short, people must

be equal to the task.

Thirdly, the organisation must only take up enough tasks at any given time to

avoid a situation where the organisation fails to handle all the cases. Failure to

accomplish tasks reflects badly on the organisational image. This calls for an

honest introspection to discover the capacity limits.

Fourthly, the organisation should ensure that professionals attached to tasks are

not interrupted or interfered with at all. As the situation is, staff are often being

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shifted from task to task midway and thus their usefulness is drastically reduced,

since their energies are spread thinly across the organisation.

Fifthly, there is need to constantly motivate staff either by remuneration, team

work, challenges or the right conditions of work. Other incentives could be

include giving them time off and not disturbing them once on holiday. Although it

is a good gesture to have bought them cellular phones, conscious effort must be

made to minimize disturbances on the off working hours or holiday times.

Recognition of outstanding individuals & teams must be catered for in the scheme

in one way or the other.

Sixthly, there is need for continuous training of staff, not only while on the job but

sometimes to take refresher courses. Usually, in busy organisations like SRC, the

temptation is to work on endlessly without giving staff a breather to “recharge”

their brain cells. There is merit in not only training but also taking time off to do

something different which is less time framed. Training has a way of motivating

and exposing people to new experiences that would be handy in future.

Seventh, quality standards must be jealously guarded. ISO certification is

recommended and lastly, if the present section leaders or managers fail either to

tick or comply, they may need to be replaced. This extreme recommendation must

be taken with great caution and the highest level of objectivity because replacing

any professional is very costly business. It is costly not only in terms of cash

involved but also training to orient someone to align themselves to the corporate

expectations.

CONCLUSION

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Thus, having looked at SRC, the survey team concludes by stating that the

organisation is potentially very viable and able to recapture the lost market if only it

works on the delivery systems ensuring that quality and customer focus are

intertwined into the corporate culture of the organisation.

Source:

Schultheis & Sumner, Management Information systems, McGraw-Hill 1998

Case study questions

How best can the company turn itself around into an even more high performing staff

team?

Point out some of Deming’s management principles in this case. (Refer to the famous

14 points)

Suggested case study question answer

How best can the company turn itself around into an even more high performing staff

team?

The student should give more ideas outside the ones that have been mentioned in this

case. It would be good if they could think through the case first and from experience

or what they research add new dimensions either ignored or not raised in this case.

Point out some of Deming’s management principles in this case. (Refer to the famous

14 points)

The case has many of the principles that Deming taught in his famous 14 points as

tabulated in his classic book “Out of the Crisis”. Deming believed that 85% of the

problems in organisations were caused by Management practice and policy. The

student must identify these ideas scattered across the case as well as other teaching

taught by other quality gurus.

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Case study # 29

The following write up is based on an article that appeared in The Post in February

2002 and talks about technology. Read through the write up and answer the questions

that follow.

_____________________________________________________________________

“Deaf go Mobile phone crazy”

For the long time, technology has been tailored specifically for the totally physically

able while the people with disabilities have had their special needs relegated to the

terraces. But now the tide is changing. One of the many ways this has changed is the

introduction of user friendly and specially tailored technological gadgets.

The article “Deaf go mobile phone crazy” introduced a totally new product by Nokia.

Heretofore, cell phones have been restricted to the domain of the able bodied user

clientele but with the advent of the cell phone that can capture text messages and send

them, much akin to the e-mail facility, it is now possible for the deaf and dumb to use

the facility. From the report, the gadget can capture data, process it and then send it to

other people. The vibrator on the phone alerts the receiver of the message who opens

and reads it. Thus, more and more people can communicate in some way.

But what are the advantages of this gadget in comparison to the rest of the mobile

phones?

(i) The phone can be used by more people.

(ii) The phone is portable

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(iii) It looks pretty much like the rest and thus will not raise attention and

curiosity from on lookers.

(iv) Not very expensive to acquire.

In as much as these clear advantages are helpful, this new technology has some

disadvantages such as

(i) The text messages are short, clipped and often incomplete sentences.

(ii) Propensity to be misunderstood – messages

(iii) Give greater problems to people who prefer sign language to inputting the

English text.

(iv) Texting quickly becomes expensive and

(v) The short messaging service (SMS) may not be immediately received.

(vi) Disturbs and interferes with nearby hearing aids.

Doubtlessly, the new Nokia 9210 communicator mobile phone is an asset that will

go down the annals of IT history as one that helped open up the mobile phone

door to the deaf. It is expected that this technology, albeit not perfect, will

continue to improve each time.

What then are the implications to the MIS World? A number of answers come to the

fore.

(i) There will be increased communication among people across cultures,

physical health status and location.

(ii) It will be cheaper and quicker to send messages due to the portability of

the gadget.

(iii) It will be more convenient to use the mobile phone to send short e-mails as

opposed to the desktop or laptop.

In times to come, the phones will turn out to be proper microcomputers that will do

most of the functions a desk top can do, only that it will be carried in the palm. We

eagerly wait such a time.

Source:

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The Post, February 2002

Case study questions

What is the distinguishing mark of any Nokia product?

What accounts for Nokia’s success?

Suggested case study question answers

What is the distinguishing mark of any Nokia product?

No doubt, the distinguishing mark of all Nokia products is the pervasive quality in all

their phone products. Nokia, a Finnish company, has been in the phone business for

some time now and has capitalised on its core strength, ensuring that it is continuously

improving on its products to the satisfaction of its customers. The phones have the

right features, meet specifications and are fit for use in almost any locality in the

world. For instance, Nokia is by far ahead in the Symbian technology which makes

their phones more flexible and ‘updatable’. In addition to the product, there is a Nokia

site which continuously offers customer support and phone update software. Thus,

QUALITY products and customer care distinguish Nokia.

What accounts for Nokia’s success?

As mentioned in the previous answer, Nokia has identified its core competence and

differentiated its products from other phones on the market by embedding quality in

all its genuine products. The moment one comes across an imitated Nokia product

(whether from China, Malaysia, Thailand etc) they can easily tell as well as verify

using special codes or consult the relevant internet site. In addition to its quality

products, Nokia has an excellent after service support system which advices, cautions

or supports all Nokia users. The final thing is that Nokia makes much of quality

standards and ensures that it remains ahead of all other possible competitors by

improving there by cutting a unique niche. For instance, Nokia has been strong on

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Symbian phones, software but not memory or music phone editions. This is now

being dealt with as Nokia releases many other phones each with a specific focus and

target market group such as music, memory or PDA/smart phones. This move keeps

Nokia gaining more product loyalty for a long time to come. Always focus on your

core competence.

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Case study # 30

UNION BANK GOES UNDER

On the morning of February 14th 2001, the Union Bank, a force to reckon with in

banking, suddenly closed its doors to business. Like many banks before, it went the

way of the financial graveyard having been around for over a decade and a half. But

what exactly went wrong at the Union bank for it to be shut?

Not much information was released in the article “Union Bank goes under” which

appeared in the Times of Zambia on 14th February 2001issue but for all we know, the

bank failed to comply with the Banking and Financial services Act. The Bank,

according to section 81 of the said Banking and Financial services Act cap 387, failed

to meet its obligations. Two basic reasons have been advanced, both hinging on

financial ratios. It is a requirement by law that any commercial Bank must maintain at

least three accounts with the central Bank (Bank of Zambia) for it to be licensed to

operate. There should be a current account that can have any minimum balance. The

second and third accounts should be reserve accounts, acting as a security in case of

problems. The one is a local currency account while the other is foreign. As at the

time of closure, the liquidity ratio had to be at least 15% of all the total deposits but

have since been revised to 30%. This means that, If $ 10,000 is deposited in a given

month, $1,500 (15%) or $ 3,000 (30%) has to be in the reserve account at any given

time. Note that this is a liquidity ratio computed by the following formula

Reserve acct balance X 100 = % Where X = 15% or 30% at the present legal

requirement

Total Deposits

Or shown by the liquidity ratio Current assets – Stock = X Times

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Current liabilities

This entails that all Banks should have a security deposit with Bank of Zambia to

show that it is viable and able to pay all liabilities in case of any adverse event.

Furthermore, the above assertions also allude to the fact that a bank should have a

capital investment liquid over and above the afore – mentioned percentage. Currently,

it stands at K3.75 billion or $ 125 million. Any drawings “eating” into this figure

would indicate that the bank is in trouble and may shutdown. As such, the deposits

must be either equal or exceed with drawals at any given time as long as the minimum

K 3.75 billion is maintained all the time.

In both those two cases (liquid core ratio and the capital ratio) the Union bank failed

to comply. It seems the management were drawing from the core capital cash and thus

caused the central Bank to swiftly move in and shut down the ailing Bank. We fear

that many more financial Institutions are on the “financial institutions death row” as

their liquidity ratios seem unfavourable. Thus far, the following banks have sunk in

the same perilous waters:

1. The Bank of Credit and Commerce International (BCCI)

2. Capital Bank

3. Meridian BIAO

4. Chase Trust Bank

5. African Credit Bank (ACB)

6. Prudence Bank

7. National Savings & Credit Bank (Now resuscitated) etc

In our thinking, ratios analysis is a critical indicator of the health of a given company.

Thus, the article and subsequent ones are fair and accurate. If we were to advise

banks, we would hasten to point them to these ratios as well as warn them against

practicing illegal things such as money laundering and “cleansing dirty drug cash”.

These taint the Banks’ image or indeed any organisation. Many feel that since their

fixed asset base is big, then the liquidity ratio is immaterial – nothing could be further

from the truth! Let us watch those ratios meticulously all the time!

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Source:

Times of Zambia. Issue No. 11, 054, Wednesday 14th February 2001.

Case study questions

Comment on the many Banks that have closed down in relation to quality.

What do liquidity ratios indicate?

Suggested Case study question answers

Comment on the many Banks that have closed down in relation to quality.

Obviously, the Bank closures noted on the Zambian scene was not a pleasant sight,

especially so that the economy was in transition from the 1992 economic

liberalization. The changeover was in one sense very good and a time of opportunity

but in another sense, it was a disaster for others. It would appear that the many Banks

that went under had very weak financial ratios and thus offered poorer quality

customer service which in turn caused some to migrate to other perceived better

entities. Some however, like the Meridian Bank crushed suddenly because of a capital

flight when people heard unfounded rumours that the Bank was bankrupt and would

soon fold up. That panic saw unprecedented withdrawals which sealed the Banks’

fate. Despite the super quality customer service and offerings, the Bank sunk. Many

others were to follow in the long trail of failed Banks, of which Union Bank was such

a one.

What do liquidity ratios indicate?

Liquidity ratios give an indication of the liquid soundness of an entity at any one

given time. They may give the earliest signs of a weakening entity which ultimately

translates to other qualitative issues which negatively impact on both the customer

and entity.

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Case study # 31

MARKS & SPENCER PROFITS CONTINUE TO SLIDE

Very few have not heard about the successful Marks & Spencer chain store of the

UK. It is by far the number one clothing retailer having experiencing phenomenal

growth for many years until 1998 when it bagged an unprecedented profit of £ 1.2bn.

But now, like many other businesses, the growth and profits have eluded the chain

retailer lately. The company appears to be buffeted by disappointing results from

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every front to the extent that it has had to shut down a number of strategically placed

stores in mainland Europe as well as sell its US business outlet. These developments

signal a drastic reversal in the hitherto prosperous company. What is happening? Are

things well with Marks & Spencer?

In the article, “Marks & Spencer profits continue to slide” which appeared in the

Wednesday May 23rd 2001 Post issue, we see the company experiencing turbulent

times. It is still viable and is making strides to address the adverse situation.

Marks & Spencer has had problems for some time now, and as such, it has embarked

on a restructuring program, so far having cost a whooping £ 335.4 million. The goal is

to make the said company, agile, profitable and more customers focused again, thus

returning to profitability. In order to carry out this mammoth task, Mr, Vendvelde, the

M & S Chairman, has put a number of strategies in place. These strategies will ensure

that sources of finance are identified and utilized accordingly.

Largely, the cash will come from sales, disposal of assets, closing of non–profitable

centres, job cuts as well as relocating from the expensive & luxurious Banker Street

headquarters office to the cheaper Paddington Basin new head office. The pending job

cuts for instance, will reduce the work force from the present 3,500 to 1600 in 2003.

Having sourced the funds, the company intends to address the problem areas such as

the adult clothing division where the problem specifically lies in the women’s wear

section. Once the exact problem root cause is diagnosed, appropriate steps will be

taken to reactivate that area and any other. Furthermore, the retail chain store plans to

invest more in the food and services areas. Other possibilities exist but in all the areas,

greater quality and appeal in a better store environment will be the hall mark.

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All these strategies look fantastic but as Vandevelde quips, “The results will not be

seen over night, but our customers will see a gradual and progressive improvement as

changes take place”.

The risks associated with the raising of funds from within is that the various stake

holders such as share holders may not be entirely pleased because the company will

appear to be shrinking instead of expanding. Furthermore, the company may not

declare big enough dividends and thus lose stockholder confidence. Other

disadvantages could be the job losses as well as a potential major shift from the

traditional strength of retailing into the service industry.

On the other hand, advantages come with raising cash from within one of them is the

minimizing of debt costs as well as not changing the capital structure fundamentally.

In the long run, when the company is viably profitable once again, the chain store will

declare more and bigger dividends. This is a survival time and the times demand that

the company mutates swiftly or risk tumbling to the ground, like many others have

done. The Dynamic competitive business environment forbids M & S to stand at ease

but must of necessity act swiftly and drastically.

We agree with the M & S strategy as long as a proper SWOT and environmental

analysis has been done. Also, we will vouch for the M & S more if appropriate

contingency measures are put in place in the event of the worst coming to pass. Issues

such as a superb cash flow must be guaranteed after the restructure. Further, we

strongly feel that these reforms must be implemented diligently, prudently, slowly and

cautiously. There must be a continual reading of the environment to make sure that M

& S ekes out the best route.

After all is said and done, we have no doubt that we shall continue to enjoy the high

quality goods from Marks & Spencer many years hence.

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Source

The Post newspaper, Wednesday March 23, 2001. Issue # 1738, pp 8.

Case study questions

What has really caused M & S to tumble?

Do you subscribe to job losses and outlet closures in time of profit loss? Explain your answer.

Suggested Case study question answers

What has really caused M & S to tumble?

The real cause of the profit decline is not fully explained in the article but some hints

and indicators are clear. Among the reasons which may have caused the decline is that

the shop chain probably expanded too fast, diversified and thus “sucked in” all the

little excess cash that could have previously been available. The other reason could be

that quality standards had declined considerably relative to new industry entrants or

other competitors. The diversification, although good, could have forced the company

spread its resources thinly as well as spend more money in the non-core issues.

Do you subscribe to job losses and outlet closures in time of profit loss? Explain your

answer.

It is difficult to give a definite answer to this question because people hold various

views. Some firmly hold that in turbulent global post modern times, life time

employment and job security is out. People must accept the fact and prepare for the

rainy day to get another job once one contract comes to an end. As such, they feel that

re-organization and re-engineering are ethically correct and the way to go. Others

violently oppose this view and think it is a violation of human rights some what. They

say that a job is a right and in the event of separation, people must be warned and

prepared to transition well in advance with the company bearing the larger cost of

preparing people. Further, they argue that instead of job losses, pay cuts across the

board for a n agreed period may be better than sacrificing some people while the big

fish get away with it.

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Thus, the student must clearly express the view on this matter in the light of the

current global crunch.

Case study # 32

Interview with start up local businessman, Mongu

An interview was carried out with Mr Kudra Bashir who happens to be the

Managing Director at a small but drastically budding restaurant in Mongu town –

Western Province. Kudra has been in business for the past 5 years having engaged in

various businesses from the Salt trade to the current Food industry business. There

have been many challenges in terms of the growing fierce competition but Kudra is

not the type to be daunted by such threats. The same gentleman hails from Uganda

and has studied among other courses, a Diploma in Business studies. He intends to

pursue either the ACCA or CIMA qualification to strengthen his financial acumen.

The inter view is part of the fulfilment of the Advanced Financial Management course

for the MBA program. As intimated, the interview was carried out with a view to find

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out how Mr. Bashir, a seasoned Business and Finance person, runs his organisation as

well as his views on other related issues. The said officer has travelled widely and is

greatly exposed in the region as well as holding a short working stint in Namibia.

Kudra is a beacon in our times of someone who has combined Finance with a strong

management strategic eye.

Questions.

1. Please tell us briefly about yourself.

My name is Kudra Bashir and I was born in 1970 in Uganda. I was raised and

trained there until after school when I left Uganda to go to Namibia to help my

Uncle run his business. I was there for six months in which time I successfully

ran the Motor spare parts and textile business. I was so successful to the extent

that we opened an outlet in Okahanja, outside Windhoek. Apart from

managing the entire business, my job entailed preparing the bank

reconciliation as well as maintaining the stock levels. There after, I left and

came to Zambia in 1996 when I linked up with my brother and started

assisting him with his business. With time, I felt I needed to weaned off and

start my own business. Thus, I begun the first business in early 1997 by

buying groceries on credit from my brother and sold them in the corridors of

Mongu. My line of trade in business was in groceries such as cooking oil and

salt. After succeeding, I opened up my present business premises from which I

have been operating since. I am married with one daughter.

2. What have you studied and how long have you worked?

I pursued a Diploma in Business studies at the Makerere University and then

attempted another Diploma, this time in Business Administration with the

Cambridge international College in England. I also did a local certificate course in

accounting called CABS (certificate in accounting and business studies) I intend

to pursue professional financial studies either in the Association of Chartered

Certified Accountants (ACCA) or Chartered Institute of Management Accountants

(CIMA), I feel this will help me greatly in my business and financial prowess. In

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terms of my working experience, I must say that I have not worked for any place

except in Namibia where I managed a business for six months. Part of my job was

to source, procure and control the use of stock in the business. In short, I was in

charge of the sourcing and use of the cash. After that stint, I went straight into

business where I have been both the MD and chief financial officer. Among the

things I do is to ensure that there is a proper accounting of cash, planning its use

and controlling the budget. On the strategic plane, I am always scanning the

business environment to ascertain the trading climate and then respond

appropriately.

3. Just how exactly did you source the initial capital to begin your company

and how do you sustain it now?

As I mentioned earlier on, I started more or less as a street vendor on behalf of

my brother where we agreed that I should sell on his behalf and any profit

margin there from would be mine. I worked hard and saved some capital.

When it was time to open up my own place, I got a loan to cover the fixed

overheads such as rent and wages. I started with six people working under me

but I intend to cut down by two, since the profit margin has not been as much

as before. Talking about sustenance, the business has thus far sustained it self

as the income has been enough to break even. I do not strictly get any outside

help.

4. Have you been in one business only?

No, I initially began with a grocery shop where I sold a wide range of goods

including cooking oil from Lusaka as well as salt from Namibia. These two were

the pillars of my business. In 1998, I opened a barbershop and Photocopying

services, alongside the grocery. I had in mind to open up a business bureau but

due to the rising competition, I fizzled out this aspect and remained with my core

business. In 2000, I switched from the grocery shop and went into the food

business where I feel comfortable, comfortable in the sense that we have captured

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the market, less competition and have a good customer loyalty. Our strategy has

been to produce high quality products and yet maintain lower prices than our

competitors. Many think that when the quality is high, so also the price, but I think

otherwise. Thus far, I have been in this business and no regrets!

5. How has been the business in the food industry and where did you get the

cash to start the same?

I must say that we are doing well though our profit margin has narrowed though

we are able to break even and invest some. The source of my funds was two fold.

The first was to sell my old stock, keep the cash and re invest it. The second was

to sell some assets.

6. If I may ask, why did you pull out of the other businesses instead of

attempting to beat competitors?

I could have but at the time, my strategic instincts told me that I did not have the

muscle to hold on for long since my competitors were bigger, well established,

better net worked and had access to credit facilities which I did not have. In

addition, they had the capacity to increase or reduce the price on goods that would

have been fatal for me. In short, they had competitive advantages in terms of

economies of scale as well as access to credit purchases.

7. How long have you been in financial circles?

I can’t claim to be a typical financial specialist but I think every person in some way

is a finance person , though the degree varies depending on the profession. That not

withstanding, I have been a finance person seriously fro slightly over five years when

I begun to apply my business training lessons.

8. How much money, on average goes through your hands per year?

I have had varying levels of cash going through my hands but I will give a

very good estimate for the businesses I have done before and now. In the

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grocery shop, we used to make about K 300,000 per day, which translates to

about K 84 million per year while in present business, we make about K150,

000 on average per day which turns out to be in the region of K 40 million. In

a nutshell, the income fluctuates depending on the business climate that day.

9. In your own words, what is Financial Management?

In my own layman’s definition, I would say that it is how you source money and

what you intend to use it for so that it does not diminish but expands as well as

spent in such a way that priorities come first for your satisfaction. It is basically

the sourcing and use of the money.

10. What type of Financial Management do you do apply in your business?

I try to use the modern Management methods where we build a teamwork kind of

approach. I try to train and motivate our workers so that they develop confidence

and do things on their own while I am out of office. Though we are small, I look

for ward to a time when we shall be able to test our present applications.

11. What are the critical factors you consider in making a decision?

Two things, Firstly, I consider the amount of profit I will raise and the risk

involved. In any business, the profit and loss factors affect our choices, though the

bottom core line of any business is the profit orientation. Before a decision is

made in any area, profitability should always be first. Having considered the profit

and risk involved, we must not forget the leisure as well.

12. What is the difference between Financial Accounting and Financial

Management?

In my mind, these appear to be basically the same in the sense that they are both in

business, though there is a difference. In my thinking, Financial accounting has to do

with collecting, processing and interpreting transactions that have already taken place

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in the past (by using the cash book and drawing up reports etc) while financial

Management may not necessarily involve cash transactions but merely the sourcing

and application of funds. This means that in Financial Management, we are projecting

the source, planning the use of and how much cash flow we expect to have during the

period under consideration.

13. Would you classify yourself as a Financial Accountant, Management

Accountant or a Finance Manager?

I think I am a Finance Manager because I source funds and ensure that it is used

appropriately. I also look for potential investment opportunities.

14. In choosing to undertake a project activity, what are some of the things

you do before making a decision?

I look at the capital involved, the risks and the returns expected. Another

critical factor is the competition at hand. In our present business the capital

was enough to run the same. The potential cash flows were done as well as the

estimates and discovered to be potentially profitable.

Thus, one has to count the cost in terms of cost, sources of finance, the

competition, cash flow estimates and the pay back period to recover the

investment.

15. How do you evaluate performance after implementing an activity – the

value of money?

We firstly set benchmarks and then periodically assess how we are

performing. We tell this by reverting to our records on a weekly basis. I do

this on Sundays.

16. What are the key indicators in the question above?

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The key indicator is whether we are meeting our targets as well as the profits

yielded in a given period, say quarterly.

17. Have you dealt in shares before? Why did you do so?

No, I have not dealt in shares at all but I know what they are. Shares are amounts

of cash at the stock market what one acquires to have partial ownership of an

entry in return to get a profit or dividends. In other words, when one buys shares,

they are buying a portion of a company by investing money. They forgo the

immediate use of the cash in the hope of a better yield in future.

18. At the Eatrite how do you fore cast financial expenses?

We do forecast frequently so as to avoid unnecessary expenses. When we forecast,

we input our projected income as well as the intended expenses before we actually

begin the expenditure.

19. As the business has expanded and mutated, how have you managed it?

Initially, I started with 6 people but as we have progressed and acquired skills, we

have come to a point where we need to cut costs. My immediate thoughts are to

reduce on staff and motivate the remaining. Thus far, we have built a team culture

and I motivate my staff in many ways such as giving them a day off, giving salary

advances as well as giving them tokens of appreciation. I also pay them timously

every month end.

20. Has the expansion/growth been rapid or slow?

The growth has been there but slower than anticipated. I am optimistic that we

shall see better days in the future.

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21. Tell us about the discounted cash flow techniques that you have used

before.

I do not know them in details but it has to do with the value of money now and in

future. For example, what K1, 000 can buy to day will not be the same in two

years’ time. Thus, the discount cash flow techniques have to do with projecting

values of cash flows, in inflationary terms at a given percentage rate. In my

business, I am always conscious of the value of our Kwacha and ensure I either

invest the cash in stock or assets. In that way, we beat losing the value for money

especially in high inflationary times such as what we have experienced most of

this year when the Kwacha tumbled against the US $.

22. What are some of the financial risks you have taken before, and how did

you overcome them?

Business itself is a risk but the greatest risk I have taken is going into a joint

venture with someone with a view to buy a capital item across borders. I trusted

him since we had done some business together before but he disappeared after

giving him cash. I keep hoping that he will return as 3 months have already

passed. This has left me struggling financially but I know I will pull through.

Trusting someone was a major risk because I could have run bankrupt but I will

sale some personal assets to source funds

23. I suppose you have been found in an organizational restructuring process

before, how expensive was it and what were the results?

Not really except the changes we intend to effect in our business shortly, then I

will have and idea. It will obviously cost money to lay off some one and to pay them

their terminal dues. As a result, we hope we can be more efficient and save costs

thereby increasing the profit margin.

24. In your organization, how do you handle excess cash?

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It depends what you mean by ‘excess cash’ but in my case, I do not have the

excess cash in that sense of the word because there is always need for more.

However, the times I get a bit of cash I reinvest it by procuring assets or investing

it in another viable venture.

25. Do you classify yourself as a strict Financial Manager?

Not really but I am very strict with my business cash and investments!

26. What is your view about Historical Accounting with respect to the

modern trends towards inflation accounting?

Initially, the idea of historical accounting is good but the practicability of the

same. You find that the actual situation on the ground is different as assets either

appreciate or depreciate in value. The prudence concept teaches us to capture the

cost not the present value. Therefore, the historical is helpful to give us an idea of

what value to attach to an asset so that we can ascertain the present value.

27. How do you think Zambia/ your Organisation can improve Financial

Management?

I have always thought that education is the key. People need to know the

implications of financial management so as to beat impulse expenditures. Also

people need to know how to budget, source funds, explore markets and spend

appropriately. This applies to both my organization and Zambia at large.

28. What controls have you put in place to ensure that the systems are on

course as well as protecting your back?

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I ensure that people in the restaurant are given specific responsibilities, which they

fulfil across the day. I have also put a system in place to control stock as well as to

record every transaction. Up and above what I have said, I conduct a personal

time-to-time supervision, of course taking care to make them feel responsibly able

to handle their job without me.

29. Have you ever worked in a commercial company before? If so, where?

As I early intimated, I have not seriously worked for any commercial company

except the Namibian stint and my own business.

30. Do you receive funding and what is your role?

The answer to the above question is both a no and a yes because I rarely get

funds from outside. Even the few times I get a loan, I ensure that it is within

manageable limits that I quickly service. Generally, I determine to work within

the limits of my budgets.

31. I notice that you have some insight into computers, where did you acquire

all this knowledge?

I did a basic training course locally with the Systems computer company as well

as using a computer I bought. I was quiet good but could have been much better

by now if I had not disposed off the Laptop.

32. How helpful is IT to your work?

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I have not applied it much except typing some things. Initially when I bought my

computer, I intended to open up a business bureau but I changed my business

strategy.

33. What finance packages are you conversant with?

I am not conversant with any Financial package.

34. Which package do you as Eatrite use and why?

At the moment, we do not use any financial package.

35. Kudra, you seem to be widely traveled, where have you been so far?

Well, I haven’t exactly traveled far but I have been in the region abit. I have been

to Kenya, Tanzania, Namibia, The Congo, Sudan and Zambia.

36. What are some of the titles you like and would recommend to people?

The one I find most helpful is Frank Wood’s book on financial Accounting.

He does not only deal with accounting but various finance principles.

37. Do you have any words to those would be Finance Managers like

yourself?

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I would encourage them to aim for higher goals but it is very important to have the

basic professional ethics and know the risks or profits of an undertaking. I

strongly recommend studying prior to launching into the sea of business.

38. Do you have any Mentors that have left a mark on your life?

Yes of course! I have some; one of them is my uncle in Namibia, who passed on

to the business acumen and survival business instincts. I also learn from fellow

competitors though we may not have direct interaction, by knowing what they do.

39. What are your future plans from here?

I intend to improve my qualifications as well as expand the business!

Furthermore, time and opportunity permitting, I hope to diversify.

Well Mr Bashir, thank you very much for according me this interview. I wish you

well in your future endeavours.

Any time Billy!

===========================================================

Bibliography

Case study questions

Do you think Kudra will succeed? Why or why not?

What distinguishing trait should he employ to succeed?

What chances are there for Eatrite to sustainably succeed and expand?

Suggested Case study question answers

Do you think Kudra will succeed? Why or why not?

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Certainly, Kudra will succeed if he implements all the plans that he has laid down and

mentioned in this interview, such as pricing, quality and strict financial/cash flow

management which many SME fail to master. Clearly, the market where he is

operating offers a lot of opportunity which the natives may not immediately see.

What distinguishing trait should he employ to succeed?

As earlier mentioned, those three factors pricing, quality and strict cash flow

management. But quality must pervade all these ensuring that the customer is

consistently treated well as masters.

What chances are there for Eatrite to sustainably succeed and expand?

Eatrite can and will definitely successfully expand if given the right leverage,

attention and due diligent attention. Sustainability comes in overtime as the business

is nurtured and grown like a child until it becomes mature. As it expands, quality must

be embedded in everything to the end that Eatrite distinguishes itself from the rest

thereby cutting a niche.

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Case study # 33

“TESCO to spend £2.25bn in Asia”

In its continued unprecedented growth rate, Tesco is expanding by leaps & bounds.

Recently, The Post Newspaper of May 15th 2001 reported that the successful

supermarket chain was about to spread its wings wider as it penetrates other regions

of the world. This phenomenal growth rate raises not a few eyebrows in business

circles. What after all is Tesco? Who is at the helm and what strategies are in place?

How is this growth and expansion being managed? Is it sustainable? All these

answers beg objective answers.

For one thing, the article “Tesco to spend £ 2.25bn in Asia”, does not give us much

data about the genesis of the said firm but one thing we know is that it is probably the

biggest UK supermarket chain. It has been around for a long time and has been

making large profits to warrant its rapid expansion program all over the UK and

beyond. As a supermarket, the said chain deals in a wide variety of goods ranging

from fresh fruits, snacks clothes and hardware, all under one roof. The great

advantage is the self-service and an excellent customer focus, and response. The chain

store has distinguished itself in unique top quality service, goods pricing, as well as

the product type. For example the fruits and vegetables are strictly checked when

bought to ensure standards are upheld. Also during their stay (fruits and vegetables)

on the shelf, they are constantly monitored and replaced after a certain time frame.

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The Terry Leahy (Group Chief Executive) led team is simply marvellous too as they

are strategically focused yet intensely customer sensitive. Their management style is

equally good as it motivates staff, causing them devote themselves more to the cause

of Tesco. Thus with such a progressive management style, good team culture, strict

quality control, Tesco is on firm rails to success. No wonder it is expanding rapidly!

As a result of good strategic manoeuvres, the chain supermarket has spread like

gangrene all over Europe and is now making giant strides to establish a presence

further a field on the International market. Thus far it has a presence throughout

Europe, Thailand, South Korea and Taiwan. With unrivalled profits of over £ 1bn in

April 2001, Tesco is now making headway to consolidate its Samsung–Tesco joint

venture where it presently holds 81% of the stock. In addition, in its quest to expand

globally, it is to increase the number of shops in Korea, Thailand and Taiwan. Further

future expansion is set to take place in Japan, China and Malaysia. This is where the

biggest world economies have shifted to and for Tesco, the sky is the limit.

In our assessment, the expansion and growth is within manageable limits as the chain

store is growing at rates that are alright, not too fast nor too slow but strategically

optimum. The management style and strict quality standards have won a multicultural

market niche and customer loyalty. This has opened a way to the international

scenario heading towards a global presence. The company is not only concerned

about the balance sheet but the corporate image and customer satisfaction as well. The

continued growth brings with it a lot of challenges, which need to be meticulously

handled. Circumspection and prudence have to be the hallmark of any management

team.

Thankfully, Terry Leahy leads an excellent team who have the same strategic vision,

goal, passion and aim for the supermarkets. They all want to see Tesco rise higher &

higher in market expansion and stockholder returns. They could have easily opted to

limit the expansion to Europe alone, by merely increasing the number of outlets, but

in this global economy, it is incumbent upon management to sanction further

expansions to all areas imaginable. The shop tentacles must reach as far as possible.

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By that token, the growth rate can be said to be sustainable as this is not too much or

too little. In financial management terms, the growth rate equation comes in handy.

The said equation brings into perspective the stock holder returns and satisfaction.

Not only should profits rise, but also the value of shares as well. Thus, the equity

growth rate is measured by the following equation:

G = Change in equity

_________________

Beginning of Period equity

Where G = growth rate, the change in equity compared to the equity at a given point

in line

Thus, although the article does not directly mention, we think Tesco is growing

sustainably as the key business parameters such as profit margin, asset turnovers,

equity ratio and retained earnings rate are all in good proportions. As such the

company is to spend a total of £ 2.25bn over the next five years. We can thus safely

rest our case and watch the Tesco blossom further on to the global market. Although

it is tipped to expand at 10 stores per year until 2005, we have reason to believe that

the profits made as well as the reinvested cash will effectively capitalise the

expansion program. Already, Tesco has 24 stores in Thailand, one in Hong Kong and

seven in South Korea, giving it a firm expansion point, having carried out self SWOT

analysis.

Source:

The Post News paper, 15th May, 2001 issue # 1732 Page 10

Case study questions

What one strategic weapon should TESCO use to succeed on the Asian market?

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Suggested Case study question answer

The one strategic weapon is to imbibe and foster total quality throughout its systems and

standards. From the write up, it is evident that Tesco has taken great care to maintain product

quality and monitor it very well. This should be replicated throughout the shop chain holding.

Quality must pervade the chain in other words.

Case study # 34

BAY BANK BOSTON

Handling community can be unsettling, if not traumatic, sometimes. Those

companies and individuals that aspire to work among and with the underprivileged

must brace for tough times of misunderstanding. They must labour to be accepted as

part of that setting or else their efforts will be in vain. As soon as they appear, they are

either appreciated or repulsed on sight. If misunderstanding is bad enough in a

culturally more homogeneous society, what more in a diverse cultured setting where

minority groups exist and strongly feel discriminated against?

This is the scenario that the Bay Banks Boston with other Banks found their firms

entangled in. While attempting to be socially responsible and helpful, their efforts

were overturned and perceived as racially discriminative. For a long time, the

minority groups, especially the Blacks in the United States have felt marginalised,

side lined and relegated to the poverty terraces, to the extent that they have to literary

survive. The situation at hand depicts a situation where the local commercial banks,

having previously withdrawn from the non profitable “Inner city” loan investments,

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were making a comeback. In the quest to do so, a number of past practices were

exhumed from the data graves and splashed all over the local media. This brought a

lot of tension for a long time, stretching right across the year 1990.

The said banks under the umbrella of the Massachusetts Bankers Association (MBA),

and headed by Richard Pollard (Chairman of Bay Bank Boston) had realised the lack

of investment in house loans in the Boston area, where the majority of the poor black

and Hispanics resided. In an effort to be socially responsible, they set out to address

the need. This was done in the most professional way by applying all the required

procedures such as prior interviews, application, assessment and response. As the case

may be, certain critical information had to be of a certain standard if one was to

succeed. Unfortunately, many of the minority did not qualify on account of their

abject poverty status and thus felt discriminated against. The standards were

universally the same, but, unknowingly nor intentionally, 28% of the blacks’ loan

applications were rejected while only 10% of the whites were. This revelation fuelled

not a little heat in the area, but was the bank guilty of discrimination? It is difficult to

tell but we have reason not to think so, because from objective analysis of the data,

the procedures were followed and naturally, many failed to score. Subjectively, were

we in their shoes (minorities), perhaps we would have felt the same, since the

qualification criteria was not exactly known. Furthermore, on the objective plane,

many people default and have bad credit histories, how can they be trusted with more

cash? On the other side, the allegations must not be entirely dismissed because the

evidence shows that the whites were “Coached” and given preferential treatment

despite being in similar circumstances with their minority counterparts. Perhaps

whites are comparatively more honest and have a better good will, we have no telling

exactly. Remember, “there is no smoke without fire” as the quaint ancient adage says.

However, if we were in the credit loan business, we would also follow the same

procedures and demand standards to he followed, lest our company closes down on

account of bankruptcy. Another thing that ought to be noted is that community always

will feel they have a raw deal of the national cake and as such, will fill their fellow

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creature’s ear with the sad tale of their afflictions. That is consistent with human

nature, although where possible, efforts must be made to mitigate the hardships.

As chairman of Bay Banks Boston, Pollard saw the investing in the inner city as an

opportunity for expansion as many others had left this market unattended to. This was

to take place by opening branches as well as installing 30 ATMs. Although not

exactly profitable, it was good to build a good corporate image in those regions. As a

senior executive at the bank, the issues that would concern me the most is to develop

a good image, be seen to be positive, helpful and concerned about the local

development. The Bank had no option but to stand as a shining example of social

responsibility and pro activeness in either giving loans or helping out in any

sustainable way so as to build personal capacity in the natives. Thus, Pollard did well

to initiate and implement the above-mentioned strategies. These potentially gave the

bank a competitive edge. But having asserted the above it is prudent to say that in all

strategic manoeuvres to create a good impression, care must be taken to ensure that all

procedures and standards are upheld to the letter, shifting only where permitted by

head office. The principles are basically the same but the application is what differs.

Further, the entity should equally be concerned about the allegations of discrimination

levelled against the Bank because these have far reaching implications in terms of

good will and relevance to the community. No stone should be left unturned to ensure

that all that get loans have credit worthiness and have a historically clean record.

After thorough investigations relating to allegations raised, the Bank should issue a

statement while working behind the scenes to correct the situation if found wanting. If

not guilty, the Bank should candidly and objectively explain the procedures carefully

and rest the case, of course looking for better ways to minimize the future charges.

The truth of the matter is that complaints cannot be completely eradicated but only

minimized.

Following such a serious allegation, it is suggested that the Bank retraces its footsteps

and then makes amends. It should revisit its polices, checking whether the charges are

biased or not and look for ways to reduce to future offence. Furthermore, the Bank

should look for ways to help but remain strategically profitable. This may well mean

partnering with other banks or joining hands with the state. Strategic alliances are

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helpful sometimes. This is a common cause affecting all. Another drastic move would

be to withdraw from the community all together or diversify to include other areas

such as school adoptions etc. Withdrawing has other adverse implications and must be

taken as a last resort. Aggressive marketing must be stepped up consistently by

issuing brochures and adverts highlighting the positive good the Bank is doing in their

midst. The marketing should also show the customer care focus and products on offer

to them. For example the advertisement should show that the bank has come at their

doorstep with ATMS!

For Pollard, the double work at the MBA and at Bay Bank was a test of his mettle.

From the reports he received, statistically, it gave a hint of what was going on exactly.

Statistics are mathematical estimations and conclusions, giving an idea. In this case,

the impression given was that the minority were rarely succeeding compared to their

white counterparts. This gives homework for anyone for the statistics would affect the

new policies in the sense that future ones would avoid the past bit falls that seem

discriminatory. But as we know, statistics change over time depending on a number of

factors such as the status, season, sample, time or indeed information passed on.

Another thing is that even in interpreting objective statistics prejudiced people are

subjective. Apart from statistical findings, political pressure mounts and will take

various forms such as demonstrations, new coverage or even violence, as was the case

in the Rodney King case of 1992. In our case study, there was so much political heat

generated to the extent that the Banks were forced to bow down to some demands and

bring in some innovation.

The political environment must be carefully handled or else this can derail progress.

For example in the case at hand, the politicians (and clergy) did not care for the

welfare of the Bank as to its sustainability but fanned to flame all the negatives with

their demands. Granted, the Bank has responsibilities to the community as per law

and good practice, to go beyond profit, but equally, the community should also be

realistic. If the Bank can plough back some benefit without being coerced, it is

commendable and raises the image but the new innovations must be done in the

context of a well balanced economic strategy. In the case of the Bay Banks, the Bank

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innovations must be sustainable while those beyond must be backed by public funds

or in collaboration with other institutions.

Finally, Bay Banks and others can rise above these problems, eke out a niche and

prosper, if only they mind the social corporate responsibility as well as plan

strategically to survive!

Source:

Bower et al, Business Policy: Managing strategic processes, 8th Edition, Richard D

Irwin.

Case study questions

What is the best way to handle community projects/ social undertakings?

Do you think Bay Banks were correctly positioned in that market?

Suggested solutions to the case study questions

What is the best way to handle community projects/social undertakings?

As rightly stated at the beginning of the case study (Bay Banks), matters dealing with

humans and human nature are delicate and difficult to handle. It is difficult to come

up with ‘one fits all’ answer because whatever one does for the less privileged, it is

bound to be perceived differently by the recipients. For instance in the case above, the

standards were the determining factors to get a loan not race or skin colour. Humans

will always find an explanation to pacify their anger or failure. Thus, the best way is

contextual though some suggestions can be offered. One way is to involve the target

group right from the start and walk with them through the project cycle journey so

that transparency and accountability is your defence. In the final analysis, we settle

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for the fact that we cannot fully satisfy everyone no matter how we try though we

should do our best to employ the best practices.

Do you think Bay Banks were correctly positioned in that market?

The answer to this question is both yes and no depending on what angle you are

looking at this question.

It is correctly positioned in the market if it exploits the yawning gaps and

opportunities left by other Banks that have deserted the place. It also has an

opportunity to raise its profile by providing ATMs and other services that have not

been previously available in the Boston area.

The Bank is not correctly positioned on the other hand because it runs the risk of

being labelled racist and failing ethically. If those allegations persist, the goodwill

may crumble eventually and finally affect the Bank. The Bank needs to define clearly

why it is in the area, whether to make money or just to make a name. Having decided,

then it can safely justify its existence in the area, otherwise it may eventually even

lose some money to defaulters or outright robbery.

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Case study # 35

Adam Opel AG (A)

On November 9th 1989, an epoch making event occurred between the West and East

German border. After 28 years, the dividing wall of hostility obeyed gravity by falling

to the ground, amidst much jubilation. There had been a world of differences between

the Capitalist West and the Communist East Germany for many years. Now the time

had arrived when least expected especially following affirmation pronouncements of

Honecker (77) for the wall to crumble.

Following the events of November 1989 things begun to drastically change in East

Germany as the border was opened to the rest of the world akin to opening the dam

wall flood gates, people poured into West Germany to look for employment and also

to experience their new found liberty. Those were epoch making turbulent times

indeed for the political and economic scenario. Politically, people were tired of many

years of inhuman tyrannical dictatorial leadership and were calling for a change of

Government rule in East Germany. At last the hour had come.

Whilst still in power at the time, the communists had ruled with an Iron fist, treating

people like mere “things”. They did not allow other political parties or any opposing

views to theirs. As such, any dissent was drastically and firmly dealt with. Usually, it

was violently crushed so that others would be deterred. But in those turbulent times of

January 1990, a new political breeze was blowing with people freely hoisting West

German flags, clearly stating their preference of German unification. By the same

token, the stubborn Communist Government remained obstinately and tightly in

control but of course with lost ground, times had changed drastically in the revolution.

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On the economic front, East Germany, although believed to be the most prosperous

among the Eastern States lay in ruins. The economy was in tatters, a weak currency,

poor and obsolete products that were neither competitive nor desirable. Essential

commodities were neither competitive nor desirable. The said essential commodities

were in chronic short supply and very expensive by the same token. The

manufacturing industries were over staffed and operating on huge losses.

The people employed were largely on family lines and thus resistant to change. Due

to poor circumstances and polices, the economy was state controlled and as such the

market forces could not freely reduce the prices by the forces of supply and demand

as happens in Market economies. In addition, the State had all hierarchical structures;

sentencing decisions to long wait before approval or rejection. Bureaucracy was at its

best and no innovation or quality improvements were allowed. Many a brilliant

project died on the drawing board because some political figures did not fancy the

idea. Worst of all was the rampant corruption that gripped all sectors of the economy.

This crippled or stifled any further advancement.

As such, in January 1990, after the revolution had swept across Eastern Germany, it

brought about lasting changes. A number of challenges and implications therefore

confronted Louis R Hughes, the Opel chief, as he attempted to conduct a market

survey with a possibility to investment. Among the implications of the revolution was

that he had to tread most circumspectly, read the political scenario, build relationship

and attempt to strike deals for investment. Obviously, the developments in East

Germany attracted scores of other investors to the country, much like a moth to a

flame.

In the motor industry, renowned companies such as the Ford, Peugeot and

Volkswagen were all clamouring to strike some deal for either partnerships or

buyouts. This meant that Hugh had to act swiftly to outwit other competitors.

Although the economy had been State controlled with a record of over employment

coupled with poor, derelict infrastructure, the future potential of reaping benefits were

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immense. Louis envisioned using the “native” nature of Opel as a competitive

advantage in the quest for market penetration. In future, it would mean replacing the

dilapidated obsolete machinery, raising the quality, re–engineering as well as

establishing a manufacturing presence of international standards. All these thoughts

must have raced through Hugh’s mind as he took steps to meet the Kombinat leaders

in East Germany.

Obviously, one might have the financial resources but lack critical timely information

and the acumen to network which in itself is perilous in business circles. Therefore,

Opel had to overcome some hurdles and grasp opportunities that came their way.

Some of the problems faced were largely political. The Eastern regime still wanted to

hold back but the people on the ground demanded change.

The top brass was highly corrupt, uncompromising and refused to change with the

times. Thus, to get things done, one had to carry a bribe then things could be swiftly

and diligently attended to. But as at January 1990, things were slowly beginning to

change though bureaucracy and ceremony still held sway. Another problem Hughes

faced was language. He overcame this by hiring the right people to assist him. In

terms of opportunities, they were vast.

The East Germany company leaders seemed enthusiastic to have a change of products

and management. It was simply amazing to notice their honest object and willingness

to collaborate so as to change things for the better. One would have thought that they

would have stubbornly remained proud to defend their obsolete poor quality products,

but not so. This was a grand window of opportunity. Another window was the

abundant cheap labour nearer to Western Europe. Hitherto India, Korea and China

had been viewed as the cheapest but they were far flung nations.

The East Germans were not only cheaper but honest and well educated too. Thus, we

can see that the labour market was large. Another opportunity was the potential 17

Million market for the high quality “East German” cars which would be churned out

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by Opel (Opel was considered a German Company though wholly owned by General

Motors of the USA).

The options that Hughes had then were three fold. Firstly, he had the option to

concentrate on the western market and not bother about the east; after all, Opel could

hardly satisfy the demands in West Germany. The second option was to come to the

East through the West. This was advantageous because East Germans preferred and

believed that West German cars were better. The third option was to simply go to

other third countries where labour was even cheaper than the East especially so that if

Germany was to reunite, the expenses would dramatically rise to match international

standards, thus eroding the current advantages. All these three options lingered in his

mind as he tabled his case to other Board members.

If we were in Hughes’s shoes, our arguments would be that we go ahead and invest in

East Germany for a number of reasons. Firstly, the proposed investment, in our view,

is viable because the industrial sites are already in place just needing changes. The

complex designs are already in place and once the modern cutting edge technology is

installed, it would be cost effective. Besides, the labour market is currently plentiful.

Secondly, having established good relations and rapport with both the natives and the

key decision makers they prefer Opel as opposed to other potential investors because

they feel Opel is indigenous and therefore known. This is a huge opportunity for

effective market penetration. Thirdly, there is a lot of enthusiasm from both sides to

get to work together improving the present chaotic status. Willingness is the key to

international trade. Lastly, the potential market is vast. A population of 17 million

speaks a great market opportunity. Besides, the East Germans are educated and would

willingly put in their lot in design, marketing and selling the product. Being aware

that after presenting these arguments at the February7th , 1990 GME strategy board

meeting Bob Eaton would not let Hughes go unscathed. Most probably, he would

want to know what the chances of success for Opel are, how ahead of the other

competitors Opel is, how swift Opel is and what the over head costs would be. Armed

with our data “pack” all the queries would be adequately answered giving him

statistical data as well as relevant qualitative information such as the accrued good

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will and good corporate image as an indigenous company, which others do not have,

the company strategic movements, networks established, prior meetings with the

Kombinant and also the fact that Opel have the right cadre of people on board called

“known qualities” in East Germany. These arguments should put to rest all anxiety.

From a strategic stand point, Hughes’ goal to become number one in the GDR is a

possibility only if he comes up with a sustainably organic fluid strategy. Presently,

Volkswagen carries the day but a good strategy could dislodge them. The said

strategy, among other things should address quality and customer issues. There is

need to raise the quality to high international standards to the extent that the customer

is considered king, well treated and served. In addition, the strategy should include the

setting up after purchase customer service which includes repair stations all over the

country. Apart from carrying out frequent market research to establish the customer

needs and wants, the cars churned out must be low cost and the right price for

customers.

Furthermore, the strategy must address the networking framework, which should

involve befriending the key decision makers as well as being community conscious.

This may well mean producing more ‘green’ cars that do minimum harm to the

environment as well as our contributing to social needs and causes. In addition, the

Opel marketing must be consistently aggressive and relevant. Hughes’ two-step

multifaceted proposal seems superb because it will ensure that 10,000 Opels are

assembled and serviced as well. The second aspect or stage of bodybuilding is equally

good provided this is done at the optimum time and with the right infrastructure.

If Hughes presents his case well in the Norstand and at GME or OPG, we are

optimistic that they will fully rally behind him, though some might initially have some

reservations. The issues of political instability, labour market, infrastructure would

beg answering to clear some minds. Hughes should convince them of the potential

growth market value, the willingness of their counterparts, the cheap labour and the

envisioned political stability. Other issues such as eventual labour cost rise and

absenteeism could easily be dealt with by introducing modern Management methods

of teamwork, which are not only cheaper but motivating as well. The weak work

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ethics, unstable exchange rates and poor infrastructure are part of the package, which

can be worked on and improved over time. He would have to show them the long-

term goal and benefits.

Despite all the hurdles that confronted the possible investment. Hughes stuck to his

Eisenach plan because of the aforementioned reasons of potential growth, niche

potential, cheap labour and the potential 17 million market representing 25% of the

population. Having assessed Hughes’ capabilities and insight into the East German

market amidst turbulent times, we think his is potentially a good success chance. It

seems his financial and MBA backgrounds have shaped him well for the task. Some

of the pluses to his credit are his ability to appoint and use German nationals to

achieve his goals. He created a team culture and built excellent relations by the same

token. His insight into the advantages Opel has such as being indigenous,

consciousness of a moving target, contacting top business and Government leaders as

well as the focus on a market niche were all excellent ideas deserving applaud.

Having said the above about Hughes, we draw a few lessons for application. If a

foreign investment is to be undertaken successfully, the following points must be

taken into consideration. Firstly, the political environment must be initially assessed.

Is it right, conducive and stable? What are the Government policies and how will they

affect the business? Secondly, the social environment must be assessed. Is there

appropriate infrastructure? Does the organisation have the right distribution channels?

Is there enough and cheap labour? Thirdly, the cultural environment and attitude must

be taken care of. Are the people open to investment or xenophobic? How do they

view us, as foreigners or indigenous? Fourthly, the legal environment must be looked

at prior to launching out. What law will be asked in the event of a dispute etc? All

these must be grasped and then applied appropriately as the case may be. These were

the issues at play when Hughes was surveying East Germany in January 1990.

By that token, Opel achieved an early market leadership in East Germany, having

applied the right principles mentioned above (i.e. political, social, culture and legal

assessment). In particular, Opel sold second hand Opels, serviced and repaired them.

It marketed well, did a market survey as well as networked with the key decision

markers in the East whereas Volkswagen may have over looked these and went ahead

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to use their good will only. It could be that Opel was swifter in response relative to

Volkswagen. Given the above background, Opel will retain its number one slot

because of the cheap labour, because of the reasons earlier advanced provided the

right business acumen is consistently employed. The goal of becoming global in

approach is another competitive advantage for Opel.

Being global entails implementing and maintaining the best standards that are ISO

certified (international standards of quality). It means Total Quality Management,

teamwork and modern management practices come into play. This takes time to

culture but armed with a visionary leadership and determination, it is an achievable

feat for Opel. It may seem an insurmountable task but we are confident that the

Hughes led team will steer Opel to success, let us seat tight and watch them perform!

Bibliography/source

Bower et al, Business Policy: Managing Strategic process, 8 th Edition, Richard D

Irwin

Phillip Coteora: International Marketing, 9th edition, McGraw Hill

Case study questions

What do we learn about change in this case?

How best can it (change) be handled in relation to quality?

Suggested Case study answers

What do we learn about change in this case?

Strategy must not be static but change with time. Different contexts call for different

strategies if you are to be successful. When there is a transition from a command to

Market economics, there are great changes that occur in the economy and later

stabilise as things harmonise. It is also a time of opportunity which the astute business

eye swiftly grabs for their good and prosperity. This case also highlights the fact that

quality is non-negotiable and must be pursued at any and every cost.

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How best can it (change) be handled in relation to quality?

As someone has aptly quipped that “the only thing that is constant today is change” is

probably correct in most senses because it is practically impossible to remain stagnant

in a global economy. Many forces are exerting influence on our lives today and it is

thus only reasonable to embrace change with the view to manage and harness it for

good. Change also entails that our standards change a bit more frequently to a higher

level. Thus change has catalysed quality improvement.

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Case study # 36

The Legendary Jack Welch and General Electric

Corporation

When Jack Welch took over as chairman and Chief Executive Officer (CEO) of

General Electric (GE) in April 1981, the once Legendary Company was again at cross

roads. At 45, he inherited a huge conglomerate that had a tall structure, rigid

operations, bureaucratic, and highly diversified. The company; built originally to

exploit Thomas Edison’s patents, was too large and complex and had thus become

inefficient and potentially uncompetitive. Not only was it in many businesses, it had a

large work force and had been divided into multiple smaller Strategic Business Units

(SBU) and yet with only a limited successful life span. A solution had to be found,

and that came in the person of Jack Welch.

Jack Welch has been known to be a maverick, tough, determined and resilient in his

approach to management. An only child and holding a PhD, Welch is the man of the

times as he has managed to achieve the unimaginable, due to his foresight, candour

and resolve to succeed. As soon as he took over the mantle, he commenced his

momentous revolutions by assessing the status quo and what ought to be done. He

discovered that GE, though admirable, was in effect not as competitive as it ought to

be thus, the changes of restructuring & re engineering the organisation. This meant

among many things, destaff (down size) by 34%, giving more lee way to managers,

developing a team work culture, brain storming, adopting an open management style,

being customer focused, working in partnership with stakeholders as well as aiming

for perfection in quality. Impeccable excellence has been the goal. He achieved this

by hiring the right staff while relieving those that were not ready to change. As a

leader, he has always been visionary, articulates the vision, & passionately owns the

vision and relentlessly drives it to completion.

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By 1993, GE had achieved the unimaginable. It was by far the most complex and yet

agile company. It had a lean work force, was continuously learning was aiming for the

1st or 2nd slot in every business and where not possible, it pulled out so as to

concentrate on its core competences. It is on the road to success but certainly, the

strides hitherto are significantly great.

But how exactly did Jack Welch accomplish these shifts? What roles did he play?

Reading through his profile, one concludes that he had certain leadership traits which

translated into action. For one thing, he broke down GE into smaller manageable semi

independent businesses with managers freely making decisions on critical survival

decisions. For another thing, the Organisation was at cross roads, whether to continue

marching to the company bone yard or to mutate and live. Change was inevitable.

Thus the changes needed a maverick, clear and strategically minded person. Welch,

qualified on that score and went ahead to take bold fearless steps, setting goals and

targets. He determined that GE should be better than the best in all areas. But as one

would expect, his innovations were opposed, as they tended to threaten people or put

them on edge all the time. Change is generally resisted but he undauntedly faced the

opposition.

In the quest to improve GE after the rapid positive changes, which left thousands

jobless, the organisation adopted a continuous training approach where everybody

attended some kind of training. For chief executives, a program called “workout” was

instituted in 1989 where the managers would go off to some location to brain storm,

exchange ideas, recharge their minds and dream up new routes as well as share

methods of best practice. Rather than discussing plans, GE executives discuss

strategies, which they implement in their various companies, depending on their

mission statement. The heart of the workouts is to bring about cultural changes

overtime assuming and knowing that change is resisted at all times. Looking at the

Lincoln philosophy and Jack Welch’s, one cannot fail to see that in principle, they are

similar, only that Jack Welch is more aggressive and operating in a more hostile and

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dynamically competitive environment. Lincoln thought customers, suppliers and share

holders were to be treated well in order to maximise on benefits, so does Welch.

However, there is one fundamental difference between Welch and Lincoln’s style.

Lincoln was highly individualistic and rewards depended on output while Welch

believes in reduced numbers of work force while paying more as well as getting

higher profits with a thriving team work culture.

When compared to other legends such as Riboud, Barnvik or Mccoy, one notices that

there other people were excellent managers but conventional and working within a

framework. Welch is different in that he believes in constant unpredictable change-

his maverick traits again rear their heads.

Looking at GE today, it looks very fine and alive once again, especially as it crosses

into the 21st century. A new lease of life has been infused into it and as such, we can

optimistically look to the future for greater things. Sail well O’ GE.

Source:

Bower, Bartlett, Uyterhoeven, Walton. Managing strategic processes, 8th Edition,

ISBN 0-256-115191-5) Richard D Irwin.

Case study questions

What do you think about ‘workout’ with respect to team building and strategic

thinking?

Do you consider Jack Welch the regular CEO? Mention some traits you admire about

him.

Suggested case study question answers

What do you think about ‘workout’ with respect to team building and strategic

thinking?

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It is an excellent technique depending on your organisational work culture. In itself,

work out includes aspects of serious brainstorming in a conducive environment where

people just abandon themselves to dreaming and thinking, sometimes mentally

simulating some ideas which they later document and apply where necessary. Its more

than just a talk shop but involves serious intentions to implement as well as derive

best practices. In the workouts, no one emerges winner but everyone benefits and thus

builds the team. Some of the best brilliant ideas at GE were probably generated in

those “workout” sessions.

Do you consider Jack Welch the regular CEO? Mention some traits you admire about

him.

Welch is clearly a maverick, one of a kind CEO. His style and manner of doing things

remains unique to this day because the gentleman was his own man provoking you to

bring out your best. He would push you to the wall until you brought out what exactly

you wanted and intended and then he would pick up the ball and run with it as if he

were the originator.

Some of the traits admirable about Welch are listed below:

He was passionate about continuous improvement.

He was open minded and ready to learn from anywhere or anyone regardless of status,

rank or position in life. Ideas were his meat and drink.

Jack was never satisfied with the status quo or the seemingly “good Corporate image”

that GE had and turned the company upside down until it was the most admired

company in the world.

He was not afraid to make decisions and ready to take the ramifications of any of his

decisions.

Welch is a systems thinker as well as one that thinks outside the box.

He loathed mediocre quality output and ensured the six sigma worked for GE.

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Case study # 37

Harcourt Brace Jovanovich, inc.

For a long time, General Cinemas (GC) had been one of the most successful

businesses holding the industry leadership. It achieved this through many strategic

manoeuvres such acquisitions of profitable diversified businesses. One of these was

the Pepsi bottling agency, which it sold at the all time industry record of $1.7 billion.

This sale, by all counts was monumental, releasing a lot of disposable cash flow,

which GC had to spend. As is the trend, the cinema business had fallen on hard

ground lately and there was need to diversify.

It was this critical decision that captivated the GC executives on 14 th December 1990,

led by Richard A Smith to ponder up. The issue at hand was whether to acquire

another company, Harcourt Brace Jovanovich, inc. or not. Was it going to be

justified? How potentially profitable was HBJ? Would it add value or be a mere

liability? These and many questions begged answering before any strategic decision

could be made. Tabling the issue before the board, Smith brought along some experts

who were going to throw some light on the HBJ purchase potential

The decision largely depended on whether the purchase would be in line with the

corporate goals as well as whether this would add any competitive advantage to the

organisation. In many ways than one, the purchase of HBJ was the major step into

unknown “territorial waters” since HBJ’s business was largely in the book publishing

industry. While General Cinemas’ primary objective was to “create value for its share

holders by providing a total return–appreciation in the market values of its shares plus

dividends well in excess of the rate of inflation”, it was critical to consider

diversifying in another industry that was relevant, sustainable, potentially competitive

and manageable. The Cinema business was in a slump, hence the need to diversify.

But what exactly was the HBJ like? How did it feature on the industry?

From the data available HBJ was potentially very profitable, although had been losing

a lot of ground for the years 1987-89 and for a good reason. Before advancing the

reasons for the dismal performance, it is fitting to state that HBJ was in at least 5

categories where it (GC) did business and stood within the first 4 slots of market

leadership. It was basically the book publishing industry where it produced college

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texts, elementary and high school texts, text publishing, professional journal

publishing as well as the legal texts for both undergraduate and post. All these were

opportunities, which needed to be strengthened to achieve market leadership, with a

little more capital outlay and strategic planning. For example, in the legal/bar review

program, the company held sway of the market as most of the standard texts in law

were bought post and undergraduate students. Having said the above, we return to our

earlier intimation that HBJ, unfortunately had been in declining market share stage,

what were the root causes, if we may enquire? A number of reasons may be advanced

but the following immediately come to the fore. Firstly, there was a clear lack or weak

“disciplined” leadership resulting from not being focused or changing with the times.

While other competitors were carrying out frequent market researches, continuously

improving and responding to customer desires, HBJ was slow and in some cases did

not change at all. Secondly, product development had been extremely slow, almost

non–existent. There were rapid changes such as customized publishing, changes in

desires by the states or indeed new developments in the industry that needed

captivating. The third reason was simply a failure to achieve its goals of rapid

curriculum development or market expansion strategies. For instance, its market fell

from 8.1% to 7.0% of the market share. Fourthly, the declining HBJ was failing to

cost key popular authors to sustainable remain with them. As such, from being a

giant, HBJ was slipping from a secure position and needed urgent capital injection to

reverse the trend. But what were the key success factors which would revitalize HBJ?

The following needed to be addressed immediately: In the first place, there was need

to reassert the leadership for selected disciplines rather than spreading capabilities

across many areas, “spreading resources thinly” as it were. Where there was a

competitive strength and advantage, there resources should be directed rather than

investing for the sake of it. Secondly, there was need to attract and maintain a strong

well tasted and renowned editorial staff who were ready to change with times while

keeping focused. In the third place, there was need to train sales staff to sharpen their

prowess. Their customer care and marketing skills needed consistent serious attention.

In effect, the entire company needed to develop a culture where everyone was a

marketer and sales person, keeping customer priority all the time. From the afore

mentioned, it is clear that HBJ is potentially very competitive if it maps out a clear

strategy which will eke a niche for it as well as propel it to greater market expansion.

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While desiring to expand, it was critical to “read the times”. What were the trends at

the time of the acquisition probability? The present trends then were the states,

increasingly were conscious of their own peculiar needs and thus had boards that

determined which curriculum books and publishers to contract. Secondly, there was a

noticeable increase in the number of students of diverse background. The market was

no longer predictable and uniform. Thirdly, there was an increasing skill gap in the

classroom as the student had different orientation and training in their backgrounds.

There has also been a decline in enrolment in some sectors.

As for the future, the trends were leading to a greater fragmentation where customers

would call the shots. In other words, each customer would order and buy what they

needed specifically. Another trend was the integration technology in the classroom.

This means that as we move on to CD ROMs, Videos and Computer Software as they

will increasingly be the norm rather than hard copies. It has a way of condensing

large volumes of data, books and information cheaply and information on a CD. This

curtails that people will access information cheaply and quicker. The other trend will

be the growth of potential international markets, spanning international boundaries

hurtling towards a global setting. Furthermore, there is an emergence of the used

books wholesalers, photocopying and the difficulty to keep customers loyalty as

quality improves. The implications therefore for HBJ and GCC is that they jointly

have to work on ways on ways to handle the changes so as to “keep above the water”,

far ahead of competitors. Firstly, there must be a strength, weakness opportunities and

threats (SWOT) analysis and then proceed to carry out market researches (local,

international or global, as the case may be). Thereafter, a curriculum must be

developed while closely collaborating with the state and academic officials so as to

come up with exactly what they want. If this is done quickly and frequently, it will

guarantee sustainable market growth and leadership. Lastly, there must be production

of the materials, providing for some free gratis copies foe instructor and teachers.

Accompanying the products must be the initiative to deliberately orient the new and

young inexperienced instructors. These are some of the avenues to capture and

maintain leadership, apart from hiring the right people in the right places.

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In our view, the possible acquisition makes sense because the said company already is

an established company, with a lot of good will and good book brands. Its

international presence is another plus. We say it is a good buy guardedly though, as

long as certain parameters are put in place. The debt issue must be addressed, the

focus must be set, mission statements clarified, the revision cycle shortened, more

cash flow injected into HBJ, manufacturing costs selling costs reduced (Through

employing team work, TQM etc) as well as being willing to wait for some time to get

returns. Marketing Strategies must be sharpened and intensified as well as the

constant reading of the market trends. HBJ/ GCC must be customer sensitive, flexible,

agile, responsive and exploit the latest cutting edge Information Technology gadgets

extent. It is risky but an excellent opportunity if done on time bearing in mind the

advantageous nature of things like bank bonds.

Looking into the future, we do so with a sense of optimism to encourage General

Cinema to go ahead with the purchase, provided the safety gadgets are in place!

Source

Bower, Bartlett, Ufterhoeven, and Walton, Business Policy: Managing Strategic

process, Richard D. Irwin

Case study questions

What do you think about corporate integration?

What does this case teach you about the value of a strategy?

Suggest qualities of a good strategy.

Suggested answers to case study questions

What do you think about corporate integration?

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This is good depending on the motive and corporate strategy. Granted, the initial

“teething” problems will need contending with but if the integration results in synergy

and a right fit, this is encouraged. However, investors must meticulously watch what

they enter into. As for the GC case, they are encouraged to go ahead but with caution

and strategic mindset.

What does this case teach you about the value of a strategy?

This case clearly teaches that one has to be careful and plan well long before

venturing into something lest they live to regret. Clearly, the case also teaches that

strategy must be organic and relevantly fresh to add value or else that which was once

a successful strategy may turn out stale and out of date. If the strategy implementers

do not realise in time, resource wastage may result. For instance, hard copy books are

in danger and face competition from e-books. GC must therefore ensure that e

publishing be incorporated as well.

Suggest qualities of a good strategy.

The strategy must:

1. Be ‘invisible’ to competitors.

2. It must be organic and flexible.

3. Strategy must be both long and short range in outlook.

4. Strategy must be both reactive and proactive.

5. Periodic strategy audits and reviews/evaluations must take place if to remain

relevant and competitive.

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Case study # 39

RU 486

In October 1988, Edouard Sakiz, chairman of the French Pharmaceutical company, groupe

Roussel UCLAF was caught up with a critical discussion regarding a new product RU 486, whether to market it or not. The said product, when used in conjunction with another synthetic drug (synthetic prostaglandin) was 90% to 95% effective in causing a miscarriage in the first five weeks of a pregnancy. The discussion outcome was critical because various extreme reactions had been received from the public world over. Some pro-life groups violently opposed it and threatened legal and physical violence while other, pro-abortionists, equally lobbied for RU 486’s sale as they viewed it a mere reproduction control pill.

Edouard Sakiz, a trained Medical Doctor was at the helm of the ultimate sale of the drug developed by his company, Roussel UCLAF, partially owned company by Hoecst of Germany. The person at the centre of actually developing this drug was Etienne – Emile Baulieu, also a Medical Doctor by training, who specialised in the study of steroid hormones. He had made his mark after scoring a number of successes but this discovery was not as applauded as before, despite his claims to be attempting to help women. He once declared saying, “I want to help women. I have not dedicated my life to abortion. I am not anti children. I have three children and seven grand children. But women die in botched abortion, two hundred thousand of them every year. Ru 486 can save them”. These passionate words went unheeded as they were viewed to come from a murderer. Interestingly, Sakiz and Baulieu were long time acquaintances from University days and had worked closely together. This issue was but one of their collaborative efforts. What was Sakiz to do? Was he to sanction the marketing or not? What would be the implications on the organisational image? These and myriad other questions begged answering before launching out full throttle.

As chairman of the organisation, Sakiz had a number of principal responsibilities regarding RU 486. For one thing, he had to ensure that corporate sales went ahead in whatever sphere as new products were launched. Like any other competitive organisation, he wanted sales to grow, and by the same token, satisfy the stakeholders too. The second responsibility was to be strategic in approach, ensuring that he mapped out a route that best placed the company on safe rails of expansion. Thirdly, he had the responsibility of steering the company in all types of weather, including turbulent times such as these to do social good. The company believed that it had a strong social responsibility to plough back some of the benefits into the community that in itself

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was a marketing strategy. But in the fourth place, there was a corporate image to protect at stake. Many had threatened to boycott the products if the RU 486 product launch took place. This would dent the company image and have adverse effects on the overall sales. Sakiz had to count the cost meticulously. How then were Sakiz and other Roussel executive go about making their decision on RU 486?

A number of ways could be suggested but we feel this is a very delicate issue needing concerted efforts and minds to settle. People need to be united from the beginning. We think that these mortals were firstly going to use the experience in other countries, how it had been received, used and the effects. For example, in China (with the largest economy & population in the world) and France, this drug was legalised although under restrictions. In the USA, by 1988, the Reagan Administration largely rejected RU 486, although indications showed that the Anti–abortionist pulse was waning. They could have argued that the responses were relative and there for segment the sales to the countries that allowed the use of RU 486.

The second way was to allow people vent out their woe as much as possible and wait for them to cool down. Once people express themselves for a long time, they get tired and fizzle out. RU 486 was new, and like any other new thing, change is opposed. A case in point was the initial introduction of the pill, which was violently opposed in the earlier years, but by 1988, it was treated like any other medication so also the RU 486 issue. In addition RU 486 needed time to be accepted in people’s minds and all queries answered such as its side effects, success levels and any other unanswered question.

The third way forward though closely connected to the second, would have been to strongly establish a campaign to be open and show the positives of the said drug, how it would help women and how successful it was. For instance, it would help control the world population that if unchecked would hit above the six Billon mark in 1999 or above. Thus if corrected, the world population could be contained leading to a healthier world. These and many other advantages had to be highlighted. As to how exactly the executives were to go about deciding, in my view, they were supposed to be open to each other, brain storm and come up with a common decision on the way forward, whether, to go ahead with the launch, delay it or discard it all together. The implications had to be weighed very carefully. If we were asked as to our opinion whether the drug RU 486 should be marketed in France, China and the USA, we would advise them to go ahead in France and China but move slowly in the USA. It seems to me that the USA market was not yet ready as the decision had political and other registration hurdles needing many years to straighten out. In our perception, the USA, being an open society, though religious was to open up slowly. Depraved fellows exist in the USA in large numbers who do not care a whit about ethics or life as long as it was perceived good for them. They were pliable. Already, indications were that opposition was declining. By 1989, 59% of the US population thought RU 486 was okay and should be sold freely to the States. The major hurdle was the Food and Drug Administration (FDA) registration, which would probably take many years. A drug cannot be marketed in the USA unless approved by the FDA whose procedures take six to ten years. My

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second suggestion then, is that while waiting for the market to “ripen”, they should register with the FDA either themselves or through some other institutions. Lastly, the company could sell by mail to individuals in those respective countries where this is legalised or acceptable.

The RU 486 case was indeed a complex one because any decision was clearly going to go against the grain of many a society. Imagine for a moment contending with the Catholics and the Pro-life group? Perhaps we need to redefine when Life actually begins.

Yet in the same breathe, the companies ought not to abandon their social responsibility. If I had my way, standing on a sound Biblical premise, we would have probably opposed the abortion Bill because it goes against ethics and perceived as murder. By 1988, over 24 million babies had been legally murdered in USA! That is an entire generation wiped out!! What would have been your take?

Source

Bower, Bartlett, uyterhoeven, and Walton, Business Policy: Managing Strategic Processes, 8 th

edition (ISBN: 0 – 256 – 115191 – 5) Richard D. Irwin

Case study questions

What is your position on ethical matters raised in this case study?

Would you have gone ahead to sanction the drug development despite the odds?

How could the company better handled the FDA matters?

Suggested Answers to case study questions

What is your position on ethical matters raised in this case study?

Students give their convictions from an ethical point of view. Let them express their inner most deepest feelings on paper. The answer to this one is relative coupled with one’s religious beliefs.

Would you have gone ahead to sanction the drug development and sale despite the odds?

From a purely business, health and humanistic perspective the development and sale of the drug would have been approved but from a moral and ethical perspective, this would have probably been stopped or opposed. Again, the answer is relative. Students should offer their thoughts on this matter thereby demonstrating their analytical prowess.

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How could the company better handled the FDA matters?

Applying in advance and stationing someone in the USA to follow up matters. Further, the corporate image building antics should have continued and approval statistics periodically reviewed.

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Case study # 40

Smith & Wesson to change hands

When Greg Hutchings took over the reins of the Tomkins Company as Chief Executive Officer

(CEO), he immediately went full throttle to turn around the company. From a mere £ 17 million puny engineering firm to a global giant turning over £ 5 billion a year, Hutchins had achieved the impossible pending to be listed among the management legends.

The once obscure, simple engineering firm begun to change from about 1983 when Hutchins commenced implementing his mammoth development drive which among many things, included acquisition, expansion and diversification of the company business. As such, the Tomkins bought off many companies such as the Smith & Wesson, the Baker Rank Hovis Mc Dougall, Lawn mower makers, Murray and Hayter, and grocery products manufacturer Red wing. It was a bold and risky investment venture but Hutchins undauntedly went ahead. For a while, all went well but slowly, change and decay begun to set in resulting from myriad problems rocking the company. But what went wrong? Why did the company begin to decay after glittering so brightly? A number of problems are highlighted in the article “Smith and Wesson to change hands” that appeared in The Post issue # 1732 of Tuesday 15th May 2001. The said article begins with the sentence suggesting that Smith & Wesson was to return into US hands having been owned for 14 years by the UK based multinational, Tomkins. The article highlights the fact that as the Tomkins begun to expand into a conglomerate, it became too large, bureaucratic, rigid unresponsive, complex and too diverse. As a result it was neither as focused nor strategically responsive to the rapid business environmental changes. In addition to the complexity and bureaucracy, a chain of lawsuits trailed the company. Sadly, the maverick CEO also contributed by abusing office that led to his resignation in October 2000. All these problems then, caused all the subsidiaries not to thrive as expected.

The only way forward then was to reduce the probability of totally running bankrupt by a change in strategy. The viable option available at the time was to shed off the non-essential & non–core businesses, hence the selling spree that ensued. These changes, although necessary, were costly in that many issues had to be addressed such as reorganisation & restructuring costs.

Nearly all the earlier mentioned companies have been sold off with Smith & Wesson as the latest (as at May 2001). The said latter company was purchased at $ 112m in 1987 but sold 14 years

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later at only $ 15m. Sources say that it is even a wonder that S & W managed to sell at all, since the company is battling to survive due to the string of litigation battles as well as its shaky image back home having displeased certain quarters about fire arms sales.

The Tomkins financial crisis was so critical that the very existence of the company was threatened and needed drastic solutions to rectify problem. As earlier intimated, this came through restructuring and selling off all the non – core companies, thus saving Tomkins. Today, it is slowly returning to its directed goal of engineering. But why did Tomkins land in this mess in the first place?

Source

The Post Newspaper, Tuesday May 15th 2001. Issue No 1732 page 14

Case study questions

Why did Tomkins land in this mess in the first place?

Suggested Answer

(a) Case study question suggested answer: Why did Tomkins land

in this mess in the first place?

In my thinking, perhaps the company initially had too much excess cash and decided to invest at any & every opportunity. It seems that no proper risk analysis was taken in terms of the company sensitivity, return on equity, net present value, capital structure and the cash flows that would ensue. Ideally, before embarking on any project, there is need to carry out a detailed cash flow analysis to predict how viable a business could be in the short or long run e.g. 5 years hence. Thus, we can see that human factors of personal preference or the unguided quest to achieve and conquer were at play. In the end, the company is at the brink of collapse. We clearly see that the fact that we have excess cash flow is no guarantee that the same favourable providence will continue, hence the need to be meticulously watchful.

With the sales gone and investment risk minimised, Tomkins can now shift its focus to its core – competences that will ultimately carry the day for it.

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Case # 41

RICHARDSON HINDUSTAN LIMITED

Gurcharan Das took over the reins of the Richardson Hindustan Ltd (RHL) in January 1981

after an illustrious International career with the Richardson Vicks International (RVI, Mexico) & General foods. Relinquishing an international job was a major decision as this was the second time he was returning to RHL, only that this time as its President.

RHL had been a subsidiary of the RVI for a long time until Indian government pressure forced it to change share-holding ratio from 55% to 40%. Despite the changes, the RVI still maintained an influential position because it had its main decision makers stationed there. The forced change in share holding by the Government had forced other equally renowned companies such as the Coca cola and IBM to leave the country because they refused to compromise or dilute their share holding. Not so RVI.

As earlier intimated, RHL is part of the Richardson Inc of the USA whose main product and strength lies in producing cold alleviating “vicks” and other related products to deal with the skin. RHL itself was originally formed as an engineering / building firm to construct a chemical plant for RVI but eventually took over the marketing of the RVI products from the local RVI branch.

This holding presence went on until the aforementioned changed RHL went through different Managements and eventually proposed capital structure change despite many hurdles from the natives and Government who viewed it as a foreign and exploitative company. In an attempt to overcome these challenges, the RHL Management had tried to please the local conditions by participating in social activities and attempting to invest in the community pleasing projects . In that way, the company avoided some tax. As time went on however, problem after problem surfaced and buffeted the organisation as people clamoured for influential positions as well as build personal empires.

It was at this critical time that Das was hired. He found a divided house. The company was cash strapped, morale was low, hostile labour, adversarial labour management relations and high management staff turnover. Because of governmental price controls, Management for years had stressed volume, selling at any price and producing at any cost. Furthermore, there was jockeying for power, functional empires, international conflicts, obsolete traditional management style and low mutual trust. Phew! What a time to take over! But this was his inheritance and thus had to be determined to iron out the problems and burn the dross in the process lest he sunk with

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the rest. The first thing he did was to assure RVI that all would be well and then went ahead to hire the right staff while keeping the marketing goal in mind. With the right people on board, he ensured that they were continuously trained until a team spirit and culture began to take root.

Having changed the attitude, his next task was to pacify the local conditions while maintaining good relations with the holding company. Parts of the local stakeholders were the shareholders, customers and the Government. To do this, he embarked on product quality improvements, open participative innovation management style, customer focus as well as aggressive marketing campaigns. It was whilst trying to please all stakeholders that he entangled the campaigns into producing ayurvelic, a product that though socially helpful, was not in line with the RVI corporate products. To produce this would have meant diverting from the original strong marketing bias to manufacturing. This would potentially put him at variance with the RVI, and yet it was critical for RHL to receive preference treatment from the Indian Government. No doubt, this initiative was perceived as palatable and constructive to the local community by local key stakeholders but not RVI. The second thing, which was potentially controversial, was his proposal to sanction the production of dextro to be supplied to the RVI, which is the largest consumer in the world. Both these ideas were superb but would put him at daggers drawn with the RVI. This was a risky step but inevitable in the circumstances and would only be justified if Das convinced them (RVI) that both these would keep the international quality standards as well as the RVI regulations. These were bold steps marking out Das from other illustrious managers like Koerber or Bartlett.

The advantages of the two major products (Ayurvelis and Dextro) were that these would firstly not only rake in a lot of profits but also boost the company image in that both the Government and community would be satisfied. If you were in Das’ shoes, what course of action would you take?

Source:

Bower, Bartlett, Uyterhoeven, and Walton, Business Policy: Managing Strategic process,

Richard D. Irwin

Case study question

If you were in Das’ shoes, what course of action would you take?

Revision exercise

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How has the case study exercise helped you?

Have you been able to create case studies for your use?

What place does quality have in strategic thinking and planning?

Suggested answers

(b) Case study questions suggested answers

To case question: If you were in Das’ shoes, what course of action would you take?

If I were Das, I would seek to present all my facts to headquarters, statistical and otherwise. Having shown them, we would highlight the advantages such as profits and corporate image. I would point out the problems such as tax that could be significantly reduced. I would also show them the team we lead as well as their determination to succeed. All these persuasive arguments should carry the day, I hope. If others argued on policy and organisational international standards, I would show them that our situation is a unique case and thus merited to be treated as an exception to rule. We would show them that this is part of marketing and the winning of local goodwill for future days.

For Das, the appointment meant being a leader, a mentor, facilitator, and coach. He had to be visionary and determined to succeed while keeping within the limits delimitated to him. Having been exposed widely, he thought he could summon all his experience, exposure and proven to lead an organisation so that it would ultimately come up as the best subsidiary to RVI. This was his goal and passion, evidenced by the changes that occurred shortly after his taking over as RHL manager. In the twinkling of an eye, the once potentially defunct RHL was soon full of life and making headway. He viewed himself as one who motivated people whether they be marketers or not, so that they have customer satisfaction uppermost of their minds. Despite his excellent efforts, complaints still lingered from certain quarters, which is part of management. His was to lead RHL to conquer more market while maintaining a high goodwill from all stakeholders. Looking at Das’ prowess, he strikes me as close to Loy Weston except that Das has acumen to articulate things and the patience to consult and negotiate. Weston, on the other hand, has no time because he views himself as the decider on the ground. Once he sees a goal, he will go right ahead without consulting the head office and offers no apologies for his actions.

Das is very calm attentive and prudent but equally decisive too, after wide consultations.

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Having surveyed Das’ situation, I can safely assert that Das’ career options are many. He could choose to remain in RHL, or rejoin RVI and indeed go in to writing. Furthermore, he could also take up a political career as he has a heart for mother India as well as his strong benevolent pulse – In our view, we see a great leader in Das, slowly but surely budding and will soon blossom at noonday. His vision, strategic eye and focus merit out emulation.

(c) Revision questions suggested answers

1.How has the case study exercise helped you?

Helped the student to appreciate different scenarios related to quality in live case situations.

Helped student develop analytical skills.

2.Have you been able to create case studies for your use?

Yes, if have been a careful reader and been practicing exercises/reading.

3.What place does quality have in strategic thinking and planning?

Very high, it is the “silver bullet” for success in the global economy today and for a long time to

come. It is critical and the main thing in corporate, project or entity success.

Unit 9

Aim

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The aim of the unit is to sensitise the student on the dismal failures of TQM despite faithfully

and meticulously applying world class TQM approaches as well as to prepare the student for any

eventuality on the field.

The unit also aims to demonstrate that TQM is not full proof as well as offer some antidotes to

TQM failure.

Objectives

By the end of this unit, the student should:

Know why TQM has repeatedly failed as well as challenges it faces

Understand the possible root causes of this bad trend

Formulate survival strategies for their own respective entities/correct this TQM ‘malaise’

Quality challenges and why it fails“Where the super human fails to tick, TQM easily sails through”

BS

Although TQM has become a household name in many industries, high company or project

failure incidences still abound. Many once promising and well meaning entities have landed in

the corporate bone yard despite the frantic efforts to mutate into profitable organisms regardless

of the standard ISO certification as well as meticulous stringent project applications. What

exactly goes wrong? At what point do myriads miss the road? Is this confirming the long held

suspicion that TQM is just a passing fad? This unit briefly explores why TQM seemingly still

lamentably fails in some instances and what drastic remedial measures to apply.

As earlier intimated, it is an established fact that Total Quality Management (TQM) has been a

buzzword in the last few decades in the progressive industrialized western and far eastern

countries. In Japan however, TQM has been there slightly longer than five decades dating as far

back as the mid and late nineteen fifties when E. W. Deming proclaimed quality principles as a

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lone voice in the wilderness. Today, this is not only in discussion form but is a goal sought after

by every progressive organisation across the world. There is increasing demand to embed quality

into all aspects of the processes and products such that TQM becomes virtually invisible to the

naked eye but automatically permeates all spheres. It is, as it were, smartly intertwined and

internalised into the corporate culture. Unfortunately, there have been myriad testimonies that

have buffeted the “quality shores” which suggest that TQM is a lamentable failure and just one

of the passing “Management fads”. Many have undertaken to explain the root causes of such

dismal failures among them being Brown, Hitchock and Willard whose classic book “Why TQM

fails and what to do about it” gives valuable insight into the frequent TQM pitfalls. There is

scarcely any book on the market that diagnoses the problem and offers tangible solutions as this

book does. Many other authors also state that it is one thing to have a TQM program running in

the organisation but it is quite another to continuously score long after the certification process

has taken place. Hence, it is good to note that TQM is no guaranteed universal panacea but an aid

towards attaining the “silver bullet” principles.

As we scan the TQM book plethora, it is fitting to reassert that the no book provides a 100% full

proof solution to organisational woes but they merely contribute to the ultimate complex

solution. As Brown et al and other TQM gurus have rightly stated, the TQM remedial books do

not attempt to supply a magical answer for success, but rather, they provide useful information to

guide efforts so as to avoid a recurrence of similar pitfalls in future. This author presupposes that

the readers of this unit by now know what TQM is having somewhat dealt with it in a previous

unit. But just in case some reader has not done their duty, we re-echo the question: TQM, what is

it? Well, TQM can be loosely described as that approach where the procedures, processes and

outcomes of any activity are of the highest quality with no defect at all. This presupposes that

quality is integrated within the system and activities need not be repeated. Doing something once

with all perfection is the goal thereby cutting costs and raising profit.

Definition supplied by this author

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The TQM failure scan commences with the examination of the probable reasons why

organizations fail to kick start or take off during activation stage. Start up includes the initial

stages when the organization embarks on TQM initiatives. Myriad stories abound of many

companies that begun well but alas fell by the wayside along the TQM path. Among the major

reasons for failure is basically lack of top management commitment. This is a situation where

management either does not support the initiatives at all because some key people in the strategic

orbs do not see the relevance or do not believe in the importance of the same. Grand statements

are proclaimed in support of TQM but in practice there is clearly no commitment from the top. In

short, they do not buy into the concept. Progressively, this indifference trickles down to all

departments. Some early signs of such indifference and lack of buying in includes the over

scrutiny of any expense related to the TQM process or a mere lip service without any firm

commitment to the process by the senior staff as well as the junior operatives. Another sign is

lack of deliberate awareness campaigns resulting in almost everyone in the organisation being

aware of what is going on. No emotion, excitement, interest or even awareness is spontaneously

generated. Indifference reigns as it is a matter of duty. Why should people lose sleep over

something they are unaware of? In a place where TQM information is the private preserve of the

select few, lethargy and sloth thrive the most because people have not seen the idea value. In

such an environment, it is possible to have world-class internal control and processing systems

and yet come to ruin, as people’s hearts are highly indifferent. Yet another deadly sign is when

people fix their eyes more on the balance sheet and cash flow rather than the real issue- customer

satisfaction. This is a more enduring lifeline as opposed to the traditional cash centred

organisation. The information age demands knowing as well as anticipating the customer tastes

and trends and there by strategically positioning oneself long before hand. Sadly, many do not

want to spend much money on what they perceive as a mere unnecessary cost centre. This mind

set leads to multiple sudden midway project abandonment as the profit and loss picture begins to

show reduced gains.

But how do executives more vividly and specifically show that they are not committed? The

following signs immediately come to the fore:

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1. When actions speak louder than words, they do not “live the talk” but merely offer lip service

to the initiatives without moving an inch to support or denounce the moves.

2. When behaviour does not demonstrate commitment. For any quality effort to succeed, it must

be seen that the top executives believe, support and are committed to the cause of that effort.

Commitment is an intellectual characteristic, a personal attribute that cannot be mandated or

imposed from outside. It is something you believe in and demonstrate in your practices. The

absence of this shows itself in the way the executives interact with customers by not caring or

minding the actual needs of the said people. This manifests itself when the customer is not the

moving cause of the continuous quality strides. Furthermore, it shows itself with the time spent

with customers, the suppliers not considered as partners and the little time spent on the shop

floor. In addition, the time spent attending quality-related education and training as well as

permeating it to other organisational staff.

3. Lastly, when the executives seem to mind too much the amount of cash spent so that the

initiatives are implemented as “by the way” or scarcely sustainably supported.

Having highlighted the above, we briefly offer a number of ways management demonstrates its

commitment. These include learning the quality related concepts and skills, embarking on a one-

on-one coaching rather than a bossy commanding approach, regularly collectively reviewing the

quality and customer satisfaction data as a team, establishing reasonable quality goals that

challenge everyone to readily espouse the process, enthusiastically talking about TQM efforts

with employees rather than keeping them in the dark and keeping information under “lock and

key” limited to the top executive orbits only.

All the above is achievable provided there is sincerity, candidness, varying the time and

frequently talking with people on the work floor. Management By Walking Around (MBWA) is

critical and to some extent more thorough than Management By Exception (MBE). The other

trait is to implement home grown popular quality improvement projects that all the people will

own rather than abstract ones. In addition, the efforts must be allocated sufficient resources that

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show the importance and centrality of TQM. Sadly, half the time, many organisations are

reluctant to provide for sufficient budget allocations to ensure sustainability and continuity of the

initiative. Lastly, the best measurement and monitoring parameters must be installed at the onset

using the available state of the art technologies. These appropriate measures could include the

financial, operational, employee and customer satisfaction. Incidentally, even employees are

“customers” of the organisation needing satisfaction that ultimately motivates them.

The second major reason for the dismal TQM performance in recent years is the poor timing and

pacing of the TQM implementation (Rapid strategy obsolesce). Some companies, though well

meaning, set sail upon the high quality seas with all the momentum and robustness that can be

marshalled without counting the cost. They go to sea in a canoe instead of a Titanic ship

equivalent and thus sink just off the coast. The start up stage has ruined not a few companies

who have finally abandoned the entire project as a sheer waste of time, resources, unworkable

and unrealistic. On the other hand, others have not read the times as well as the pace of achieving

goals against set benchmarks. Complete change takes time and sometimes may take many years

to realise. As a known fact, change is often resisted and requires time, tact, patience,

perseverance, craft, smartness and a clear mind to effect major paradigm shifts.

The third reason for TQM failure is when organizations waste education and training, they do not

tenaciously seize the opportunity, as it were. That aside, although the organisation may engage in

staff training, the value, quality, effectiveness and usefulness of the same may be questioned as it

does not translate into action, thus paying dividends. It is important to have a deliberate

continuous training policy that ensures that people are constantly being trained to achieve

maximum output. We live in a dynamic world and as such, there is need to spend time

sharpening our selves so that we can successfully forge the battles that lie ahead. A new skills set

relevant to the times is of essence. Change is the only constant at whatever level, and so must our

mindset be as well. Training and education may seem expensive but actually, TQM proves that a

well-trained staff cadre are motivated, unleash hidden potential and ultimately pay back tenfold

to the organisation. In the quest to achieve zero defects, training is paramount so that people

acquire the right skills and acumen to effectively articulate issues. Someone has humorously

quipped saying “If you think education is expensive, try ignorance”

Anonymous but Crosby the quality guru said something similar in his book “Quality is free” of 1979

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The fourth reason is the lack of short term, bottom- line results where companies are told to

expect instant tangible full scale results in a short term. Although TQM is long term in outlook,

yet the organisation must sow quality seeds expectantly. They should watch out for and record

any small victories and successes. It is these small strides that compound to make the bigger

picture over time. In as much as we should not be overly expectant, there is room for this so that

the vision and momentum remain alive. Thus, the organisation must focus more on process, not

results, as the organisations’ scarce resources are poured into the quality activities without

demonstrating results. Always remember that TQM is a process not a one off event.

In a nutshell, the first phase illustrates the fact that people struggle to learn about TQM and its

principles. Early efforts generally involve implementing quality improvement projects by using

the tools and techniques of TQM.

What then can be done to increase the probability of succeeding in implementing the TQM

initiatives and sustaining them? What tools can be employed to help future success?

Among the many ways to improve the success chances are the following:

1. Justify the costs and timing of the TQM initiatives. This may well mean taking time to

compute and show the cost benefits of engaging in the project. All arguments must be

summoned to show that TQM actually pays more dividends than what is invested into it,

though it may be long term in nature. This should be done prior to undertaking upon the

quality initiatives.

2. Continuous staff education and training must be taken as priority. People can only be

motivated and learn to be proactive when they are properly educated. An ignorant work force

is a sure recipe for disaster. Technology and practices are dynamic, hence the need to be

enlightened and kept abreast with the dynamic times, if not ahead. Also, time must be taken

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to enlighten people that TQM is not just another passing craze but must be internalized to

succeed. They must endeavour to integrate quality into their own thinking system rather than

treat it as an abstract pilgrim management fad which is independent of the very core business.

For instance, project staff must learn and appreciate the project goal, good programming,

grafting good and workable log frames, good M & E plans, relevant indicators and

assumptions. They must also learn the best practices as well as laid down standards. This

demands time and repeated investment in staff development.

.

3. Implement the strategy while avoiding bureaucracy and red tape. When the people are

properly trained, as in (2) above, and the strategy crafted, the organisation should ensure that

the right people and time are at hand. This should be done within a framework that is flexible

and avoid the old slothful ways that take many years to effect tangible change.

4. Using the right measurements. The right parameters must be put in place whether they are

financial, operational, or other appropriate tools/scales. The right benchmarks must be set up

and the key indicators securely in place. The project must use verifiable indicators,

implementation schedule, Gantt chart and bench marking among many others to foster

qualitative projects and programs.

5. Watching the appraisals. The traditional appraisals tend to discourage teamwork and

continuous improvement as the appraiser may use the time as an opportunity to settle old

scores. The new appraisals must aim at bringing about mutual help and encouragement for

both the appraised and appraiser. This should be a time of retrospective self-review and a

time of setting new goals rather than a time of axing each other. It should be a time of

refreshing, charging the cells, as it were. Projects must adopt holistic and objective relevant

appraising systems such as coaching for performance which emphasises on-going staff

mentoring or the 360* appraisal which gives feedback on staff from more than one angle.

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6. Watch the reward system. The reward system in place should be appropriate, equitable,

realistic, relevant and encouraging to people. The system must be attainable and challenge

the people to greater heights of productivity as well as foster the team work ethos. Both the

executives and workers must be compensated appropriately so that they all feel valuable.

Post modern entities prefer teams and team work over individual star performances although

this mode (individual) is equally helpful in its own right.

7. Check the power structure, where does it lie exactly? Are your employees empowered?

Do they feel that they are equally important stakeholders in these initiatives? Do they “own”

the moves? If the power lies only in the top brass and not shared, by way of teamwork, very

little will be achieved. Once teamwork is in place, the number of hierarchical levels will be

cut tremendously, as people learn to overlap and complement one another. Sometimes, the

actual power does not lie in the formal office but in opinion leaders. Half the time however,

power is vested in a few people holding high offices. Also the structure which has multiple

onion like layers causes bureaucracy to encroach and build thus reducing the organisational

agility and flexibility. This detrimental status militates against total quality attainment quest.

Empowerment of employees is crucial because as their competence is built, so also their

liberty and usefulness. Said differently, there is need to check the power distance, minimize

the layers and promote a community team spirit and environment.

8. Review the current management crop and beliefs to ensure they are relevant. Half the

time in the past, there was the top-down kind of approach to management where the top brass

were miniature territorial kings. In other words, the boss reigned supreme and passed all the

corporate laws and decisions without consulting anyone. Decision-making was the private

preserve of a select few. We have however arrived at a stage where the managers are

facilitators, change agents, catalysts, mentors and coaches. From the “bossy” management

approach of yester-years, we have shifted to the strategic leadership approach to

management. Leaders are men or women who influence other people towards a vision by

moving them to unleash the latent and hidden potential within them. By that token, Leaders

are team players and trust others.

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9. Test the systems in place whether they are in perfect shape. Are the sustainable? Do they

leave any room for or prevent defects and errors to creep in? Do the systems promote or

hinder further development? Are they appropriate and adequate? Every effort must be made

to ensure that the extant systems are in such a way as to ensure minimal defects. Thus,

quality must be built and integrated into the system so that when a product or service is

churned out, there will be no need of a redoing of the same. In a nutshell, are the systems

enabling or inhibiting operational efficiency?

10. Ensure a continuous learning culture is imbibed in the organisation. Gone are the days

when either someone specialised in only one thing or the time when once one studied a trade,

they lived to use the same old knowledge throughout their careers. The “this is how we have

always done it” syndrome is now obsolete. It is time to be open-minded, innovative and

creative, expect change as well as take as leap strides if possible. The organisation must

constantly watch the persistent and constant changes in the environment and then respond

appropriately whether proactively or retroactively. Kaizen is the Japanese buzzword for

continuous learning and improvement. Agility and flexibility marks out a progressive TQM

soaked organisation.

11. Encourage brain storming and best practices implementation. Many organisations,

though claiming to be learning organisations, often fall into the reactionary trap of merely

adopting new techniques as a survival strategy. But progressive organisations encourage and

nurture brain storming, innovation, creativity, documenting and adopting best practices. The

silver bullet often lies there. However, staff are often apprehensive about imbibing new ideas

rapidly because the new strategy may just backfire into their job loss, as Peter F Drucker has

highlighted in his book “Concept of the Corporation” of 1945. Staff need job security and

then you see just how fruitful they become! They are also afraid to bring about new

innovative ideas lest they stab themselves or others in the back-they fear blame or loss. Job

security probably explains why the Japanese have succeeded from height to height, although

the recent global blizzards also threaten life time employment there as well.

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Finally, as one peers into the TQM future, after all is said and done, it is envisioned that TQM

will graduate from being a mere buzz word to being the main thing, having addressed all the

tangible areas that affect the organisation. All indications show that the future will demand

quality in all spheres. Thus far, the world has witnessed at least three revolutions, the agriculture,

the industrial and the mega technology revolution. Could we safely assert that the quality

revolution is yet another in the making? The 21st Century organisation will only soar to higher

heights of competitive advantage only to the extent it flies on the swift and golden TQM wings.

We trust that by now that we have sufficiently whetted your appetite to go to the TQM source

itself and mine the sweet truths for yourself. We encourage you to spare no efforts in your quest

to find, read and lay your hands on the classic TQM resources as they could make the difference

between your fortune or doom.

BibliographyBeatty Jack, THE WORLD ACCORDING TO DRUCKER: The life and work of the world’s

greatest management thinker, Magna Publishing co. Ltd, 1998

Brown Mark, Hitchchock & Willard, Why TQM fails and what to do about it, Irwin, Inc., Burr

Ridge, IL, 1994

Burnes Bernard, Managing Change, 4th edition, FT Prentice Hall, 2004

Henderson Gordon, “Quality is the key”, Banking World, October 1990

Kaswende Kingsley, “Bureaucracy complicates business process-Swart”, The Post, September

29, 2005

Norton Bob, Testing for excellence in one week, Hodder & Stoughton, 2000

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Oakland John S. & Porter Leslie, cases in Total quality management, Butterworth Heinemann,

1994

Oakland S. John, TQM: Text with Cases, Butterworth Heinemann, 2003

Render Barry & Heizer Jay, Principles of Operations Management, Pearson/Prentice Hall, 6th

edition, 2006

Schroeder Roger G, Operations Management: Contemporary concepts and cases, McGraw Hill,

4th edition, 2008

Stevenson J William, Production/Operations Management, IRWIN, 1996

Vroman William H & Vincent Luchsinger, Managing organisation quality, Irwin, Inc., Burr

Ridge, IL 1994.

Case study 1

General Motors Corporation

A few years ago, General Motors was by far the most powerful and successful organisation in

the Motor industry. By all standards, no other company could compare its market dominance,

size or financial muscle! By that token, General Motors Corporation (GMC) bathed in its glory

for generations. It is now over ninety years old, which record is rare to have in these turbulent

and competitive times. To be around for such a long time is one thing but to maintain leadership

in a particular market is quite another experience. Many companies have shot up like meteorites

and have disappeared as fast as they came. This has not been the case for GM because it was the

champion for many decades. How ever, GM has not had it easy lately. It had a crisis in 1992

when it recorded a net loss of $ 5 billion! It was at cross roads and any decision to be made was

definitely going to affect the future of the company. But what led to this crisis? Why is GM

transforming today? These are some of the answers that the article “Deeds, not Words” answers.

This is a classic article because it begins where GM went wrong and what it is doing today to

rectify the past follies. The following are some of the reasons why GM nearly collapsed without

realising it:

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i. GM grew too big and powerful as a multinational organisation after the Second World

War. This led to Complacency, stubbornness and arrogance.

ii. The company was highly focused on the financial figures, variances, and profits not

quality. The Profit and loss as well as the balance sheet is what mattered most.

iii. The products it made were not as customers wanted them but what GM deemed fit as

“What customers were going to want and buy” There was no consultation or choice for

the buyer.

iv. The Management style was probably another reason. Since GM was huge, there was a lot

of bureaucracy before any suggestion could be dealt with.

v. The quality of the products was taken for granted as of standards that customers

would like, not knowing that the Japanese were rising slowly from the atomic ashes

through the legendary lectures of Deming and Juran.

vi. The company did not focus on its core competencies but because of its size, GM took on

many other businesses, which were not competitive in the long run.

All the above led to the crisis of 1992 because the environment had changed so drastically over

the years while GM remained static like monument. As earlier intimated, the Japanese entered

the Motor Market with superior quality products which ultimately under cut GM`s market

dominance. By 1991, the Japanese had triumphed already!

A critical decision was made to restructure the mammoth Company by carrying out drastic

changes. Among the major changes implemented was the down sizing of the central workforce

from 13,000 in 1992 to about 1,000 in 1999. Further changes included the following:

i. Adopting the best practices through out the system. Only the best methods of doing

things were to be in place. This meant comparing how certain processes were done

within the international GM network and picking the best way to do some thing. For

example, a number of ways how to fit an indicator on a car is tried until the best method

is found, having zero defects.

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ii. Be proactive. The company had to be agile and flexible, while anticipating customer

taste changes.

iii. Meet customer needs. GM had to change to being customer driven. What the customer

wants is what carries the day. No longer will GM determine for the customer. As such

there was need to be constantly be in touch with the customer.

iv. Reduce the product introduction cycle time. Previously, it took many years to release

a new car on the market, but a deliberate move was made to shorten the period to months

and in some cases, weeks! We are told that GM plans to introduce a new car every 28

days on average! Now that is a feat but a necessity. This is to be achieved by having

strong teams that will brain storm and come up with new models.

v. Do away with the businesses that are not directly linked to the core competencies.

These may be profitable but if they are not competitive, they are to be divorced from GM

so that they can fly away to success on their own. This has been the case with Delphi-

once part of GM.

vi. Imbibe teamwork and continuous improvement. GM had to improve in quality and

also never again rest on its laurels! This is the only way forward as time for

individualistic tendencies in the business is long gone.

vii. Include customers in the planning stage. These are both the internal (employees) and

the external. If these are included at planning stage, success is almost guaranteed because

they will produce and buy what was agreed on at acceptable, if not superior quality.

GM went full throttle and implemented the survival strategies. Since the company is big, it has

not been easy to steer it back to leadership in the industry but the said company has scored many

successes, some of them unprecedented. The sales have gone up while the market loss rate has

reduced and the profits have shot up again. From a net loss of $ 5 billion in 1992, to a net profit

of $ 2.3 billion in 1997, this is by all means a feat! In five years, the Titanic Company is being

steered to safety and is definitely going to avoid the iceberg! As earlier intimated, GM is in top

drive to recovery though a few impediments still linger in the way. The President, John F

Smith, is optimistic that his organisation will surmount all the hurdles because signs of new life

are clear for all to see. For example, the company will introduce 23 new cars and Trucks within

three years. Now, this is speed indeed!

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Among the major concerns is the fact that GM is still the High cost vehicle producer in North

America. That not with standing, the important thing is that GM is on the right track having

thrown away the relics of the past that made it rest on its laurels. It is gratifying to note that GM

is determined to have agility and speed as its hallmarks. In all these efforts, TQM lies at the

heart or else the giant will tumble and die!

The market leader of the 21st century must take heed of GM`s mistakes and sail to safety while

the `Market dominance day` is yet young.

Source

Executive Excellence

Case study questions

What was the fatal error that GM committed and continues to?

How can GM get out of this trap which it repeatedly relapses into?

What do you perceive the permanent solution to the losses that GM faces?

Case study 2

Nike!

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Nike! It is now a well-established brand and one hardly needs explain to another. This goodwill

clearly demonstrates how a company can so establish itself amongst rivals and customers.

But what is the secret for this success? Who has been at the helm of all this and what does the

future hold for such a company? The Company has been around for slightly close to three

decades, having started in 1972, using Mr Bowerman’s kitchen as a factory. At that time, Adidas

reigned supreme on the American Sports shoe market. But today, Nike dominates the show. The

swoosh logo glides in the higher orbs holding over 30% of the market while the next rival trails

far behind at 19%. The curious question still lingers in our minds, “what has made Nike become

a household name?” Studying said entity, the reasons are crystallised in the following points:

1. From the beginning, most of the key people in Nike have been former sports stars who by

that token have had contact with the customers as well as have had insight into what the

customers would want and need in future. As a result, Comfort and design have been well

catered for.

2. Quality has been at the heart of every product that has been churned out of the factory.

Knowing that quality not only retains product loyalty, it also markets the product to other

potential buyers.

3. Teamwork has been internalised at Nike. It is not a mere abstract buzzword but is part of the

company culture. Teamwork is a lot harder in a more complex company.

4. Aggressive marketing methods. Nikes’ marketing strategies are second to none. They are all

encompassing and leave no stone unturned. With the Chief executive officer (CEO) at the

helm, every employee is involved. Further, Nike has signed contracts with sports stars who

market the brand effectively.

5. The people employed at Nike are those that have a strong affinity for teamwork. Hitherto,

team players have been preferred to specialists. It has been primarily ability to function not

qualification per se. The team culture has permeated through out the company. People are

infected with the “team” fever rather then being confined to a particular department.

6. Decision-making has not been confined to the “top brass” as the only think tanks. It is

gratifying to notice that the management has realised from the beginning that the people who

know the market are those closest to it. As such, collective brain storming has been the norm.

Although the company does not have regularised meetings, the said forums are excellent

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times of discussions as contribution not “office” is paramount. This liberty creates an

atmosphere where people feel heard and appreciated. As a result, they “own the goal” once

an agreement has been reached. Nike has scored a first in this area.

7. Minimal structure level has kept Nike buoyant. A complex company usually has a multi

layered structure system. As Nike grows more complex, there is a temptation to create more

layers of command thereby creating a big organisation that is “top heavy”. This adverse

situation has been resisted so far at Nike although ultimately, formal hierarchical structures

will be unavoidable. Thus far, bureaucracy has been kept at bay as this kills motivation,

initiative and slows down the development pace. The company of the 21st century needs to

remain fluid in order to survive competition, which Nike has been hither to.

8. Low priced but high quality products has been a major weapon Nike has exploited

effectively. While others have priced their products on a higher note, Nike has found a way

of producing low priced and yet high quality goods. This mixture is very rare and hard to find

in the same one product. Thus, Nike has had economic products at attractive rates and

superior quality. This has been a way to under cut the traditional giants in the sports wear

industry.

9. Further more, Nike has been sensitive to customer needs and wants. In other words, what is

produced is what customers want and need. It is probable that the customer is involved in the

planning stage to get what they want. It is also worth noting that Nike has been constantly

“reading the times” and has always been alert to the changes in the customer tastes and

wants, which the bigger and more established companies have neglected. Nike has been a

learning organisation, being gender sensitive too. This sensitivity is portrayed in the effort to

ensure women have out fit to their specifications and taste.

10. Continuous improvement in ways of doing things has been imbibed right through the

organisation. The founders have always thought that there is always room for improvement

and as such, the products and services are always improving. The Japanese “kaizen” concept

has been internalised well and every one is aflame with this passion. This is seen in the

timely production of goods, delivery and the constant product improvements in keeping with

the latest trends and preferences.

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11. Not overly controlling staff in their tasks but allowing innovation and initiative to blossom.

In other words, the top managers have not dictated what ought to be done in a particular

situation but rather, they have and will give general direction of what is to be done.

12. Excellent communication channels have been maintained always. Smooth information flow

is paramount to keep abreast with the times. The key people must know what is going on in

the company at all times.

13. Nike has diversified in its products. Out of the factory are churned out both shoes and apparel

which caters for the not-so-serious athlete as well. While maintaining the core competence,

Nike has developed sports wear for other sports like golf, tennis, soccer and football. As

much as 270 different products were on offer in 1983, and this trend continues.

14. The captivating exercise trend in America has been a major boost in Nike’s favour.

Americans have generally fallen in love with exercise because of its benefits health-wise. As

such, this has made many, even the not-so-serious athlete, to purchase some sports gear, and

obviously, the natural choice has been Nike!

The above reasons then have put Nike on the map. It would be grave injustice to leave out the

main architect of this excellent organisation as it would be akin to denying the presence of the

sun at bright noonday. The man behind the wheel has been Phil Knight, a very aggressive and

competitive man, who himself was once an athlete. It is said that before leaving University,

Knight wrote an exam business proposal paper which he later lived out as he advanced in his

chosen business career. He teamed up with Bill Bowerman, his former coach, in this venture.

Initially, Phil did not entirely throw his weight behind the small “Kitchen” firm but later devoted

himself to the same. As would be expected, the first few years were turbulent, especially that the

company lay in the shadows of towering multinational companies like Adidas. Determination is

what counted. Having got off the “teething” stage, there was no looking back for Phil as he

propelled into deeper territories. His acumen, insight and management style immediately sunk

into the company culture so much that probably by the time Jeff Johnson, the first full time

employee jumped on board, the culture had been sufficiently implanted. Knights’ management

style is excellent because it reflects the modern manager in action. Among his firm beliefs is the

fact that people should be given some leeway to do certain functions with minimal supervision

and interference, provided they are given some general guidelines. In addition Phil Knight

strongly holds that continuous improvement is a must for every flexibly agile company. His

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preference of team players rather than specialists is very deeply ingrained in the team spirit

manifesting itself in the brainstorming sessions that he himself instituted. In those meetings,

status is cast away as no person is called master- all are free to contribute, no matter how crazy

an idea. Unlike many a traditional leader, Phil believes that the office is merely a vehicle to

facilitate further efficiency rather than an end in itself. Perseverance, insistence on quality,

resilience, consistency, customer sensitivity and the robust marketing strategies are core assets

that reside in Knights’ chest. Armed with these convictions, Nike stands a better chance to

maintain its market top slot. But why should we begin talking about losing the top position, since

Nike is securely strategically placed at market apex? Is there trouble lurking somewhere? The

danger is that the organisation has been growing at an unprecedented rate resulting in a false

sense of security. It is feared that there is an unseen slothfulness, stubbornness and complacency

creeping into the organisation as a result of three basic reasons. Firstly, it is the fact that Nike is

so well established such that other rivals are hardly heard about. This alone makes the company

staff to rest on their laurels. It is feared that other yet unknown entities are slowly making inroads

into the market unnoticed and will undercut Nike. The second danger is the size of the company.

In a decade, the company has grown from720 people in 1978 to over 3,600 people in 1982,

meaning that the company has become too complex to manage. Nike is at crossroads, where

some formal structure is inevitable, risking strangling many a cherished norm like brainstorming

and initiative. Bureaucracy will encroach and the company will become slower, less agile and

inflexible. Teamwork is now an endangered species. The third danger that rears its ugly head is

the fact that Nike is now multinational. Hither to, it was a local brand name but in the late 1970s,

it scaled the national barriers and plunged onto the international scene. Different people have had

to be employed from different cultures, backgrounds and views. Sadly, not all appreciate the core

values that have characterised Nike from the beginning. In addition, maintaining a competitive

edge on the international scene is no easy task. The organisation must meticulously use relevant,

customer sensitive and dynamic marketing strategies that are continuously improved.

Furthermore, the organisation structure must be kept minimal or risk retarding organisational

progress. Nike faces the dangers of feeling secure on the market throne while the deadly

gangrene is silently spreading. These dangers are not uniquely for Nike alone but to all gigantic

companies.

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In the quest to curb these ensuing dangers, Phil suddenly appointed Woodell as the Chief

Operating Officer (COO). This choice was for obvious reasons when we analyse Woodells’

profile. Firstly, Woodell is a former sportsman and has vast experience. Most importantly, he has

this administration prowess probably second to none. Despite being paralysed in both legs,

Woodell has the acumen to handle operational matters better. As Nike arrived at the complex

crossroads, it needed some one best suited to handle this fragile company needing to stabilise and

yet continue spreading its tentacles far and wide. In the same vein, it is interesting to notice

Knights’ eagle eye for the future and the insight for the present times. Woodell will concentrate

on the daily operations of this titanic company, while Knight on the strategic- the long-term

goals of the company. This will give Knight the time to concentrate on the external environment

such as the customer needs, anticipated trends, the changes in the environment and formulate

remedies. Although Knight could have picked another person for the office such as Strasser, the

man of the times equal to the task was Woodell, who we trust steer Nike out of the threatening

operational hurdles.

Obviously, as Woodell assumed the mantle of the organisation, queries were raised as to his

suitability but we trust that Woodell will do an excellent job since he has years of hindsight and

experience in the organisation. Having been around long enough, he probably has insight into

where the potential problem areas might lie. As such if we were the one in Woodells’ shoes, we

would be positive about the situation, in that I would be objective and face the problem head-on.

My first task would be trace where we have been, where we are and where we hope to go. We

would do this by firstly scanning through the entire organisation checking for the human

resource to hand. Then we would check out the extant system to see whether they are compliant

to the overall company goal congruence. After that, we would also find out the available

financial and material resources to ascertain the human resources development potentials. With

these facts in hand, we would proceed to brainstorm, alongside with everyone, the possible

routes to take. Since the culture of teamwork is already deeply ingrained, my task is already half

done. Hence, all we would is to ensure that the present core values are enhanced, minding the

present dynamic complex setting. Furthermore, it would be our goal to anticipate changes over

the ensuing years taking into account the instability in the environment and the need to be

flexible, agile, fluid, customer focused while maintaining the highest quality product standards.

We would also want to motivate my staff by giving them incentives for innovations and by

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adapting best practice methods. At a future date, it may be necessary to diversify further, or to

cut down brand ranges and concentrate on core competencies as the case may be. An extreme

move would be to break down the company into smaller units that are more easily run. Our

overall goal would be to ensure that amidst all these changes, the customer remains king, is

served on time and kept satisfied always. The keywords would be the long held ones, though in a

more complex setting. We would fight the myopic view of being confined to a department but

would ensure that people have a broader picture of the entire organisation in their minds. Our

sense of purpose and mission must be maintained with the same sharpness as in those early

formative years.

Nike will continue to grow at that phenomenal rate and, like other multinational giants in other

markets, Nike will soar to still higher heights, far above danger!

Source

Bower et al, Business Policy, McGraw Hill,

.......................Executive Excellence, April 1999

Case study questions

What does the Phil Knight story teach you?

If you were to engage in a similar start up business, what would you focus on?

Unit 10

Aim

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The aim of this unit is twofold. The first is to demonstrate why TQM appears invincible while

the second is to activate motivations for all entities to embrace TQM at every level.

Objectives

By the end of this unit, the student should:

Appreciate TQM as a competitive tool

Consider TQM as standard bearer/trend setter

Quality now and in future

The quality revolution has now reached unprecedented levels and global proportions, far more

than what the original proponents ever imagined in their wildest dreams although their firm

conviction on quality necessity was dead on target. They at one time were lone voices in the

wilderness and perhaps despised or ignored by their countries of origin but now are venerated

whose legacy is sought after and perhaps improved upon. That is what often happens with

completely new ideas and innovations, they are initially ignored, opposed and disregarded until

proved useful or another adopts them and succeeds. Then the sleeping giant wakes up but is far

behind. At one time, this author attended an orientation program of a Palm tree plantation where

the Project Manager was explaining why and how the project was critical to economic

development. As he waxed eloquent, a number from among us kept mumbling some doubting

sentiments as to the viability of the said flowery project until he made a land mark statement. It

went something like this: “This palm tree will reach full commercial productivity by year six and

those of you doubting today and reluctant to join as out growers will realise too late to benefit, as

you will be six years behind!” This statement made every one sit up and pay more careful

attention. This is what happened to the Americans when the Japanese bought into the quality

teachings of the Quality gurus of the 1950s and afterwards. As we speak, Japan is probably the

leading country in quality matters as evidenced by their repeated success and market share

expansion over the years. If anyone thinks of the Toyota, Sony, Mitsubishi, Nintendo, Nissan

and Yamaha brands for instance, the basic assumption is that these genuine articles are of the

highest quality and will meet, yea, exceed customer expectation and satisfaction. Toyota for

instance is probably the leading motor company in the world, by passing General Motors,

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Crysler or Ford which were at one time the undisputed global market leaders. What is the secret

of Toyota’s success if we may ask? The answer is simple and soon told-Quality. Because of

excellent quality in all angles, the Toyota brand is cheaper, higher quality, efficient and

comparatively easier to maintain, purchase or resale without much ado. These and many other

traits, today’s customer desires and will willingly pay the extra cash for better quality-value for

money. But then, that is partly what the scenario is today, what will quality be like tomorrow

and beyond? Admittedly, it is difficult to state exactly where this ever complex quality craze will

lead to because so many changes and innovations are introduced every day. What may be the

latest today may drastically be obsolete and out of date the next day. At rare times, what was

considered inefficient and out of step yesterday may be brought to the fore once again with some

modifications of course. That is what happened in part to the Saturn Five rocket engine or the

record player disc which had been trashed but exhumed because of their unique properties. The

Saturn rocket used in the Apollo mission project appears to have been retired after 1973 but have

now been adopted for the Aires space vehicles that replace the Space Shuttle fleet after the 2010

retirement. Similarly, the record player disc (some form of CD) of the 1970s was trashed only to

see the light of day in the late 1990s into the new millennium except that laser technology was

adopted this time. That is what technological development is about, always changing and ever

advancing. At the core of all these innovations if the quest is to get better quality is the need to

ever innovate, create and fashion better products than before. Thus, returning to our question

about quality’s future, we can safely assert that we are neigh already past the TQM stage and fast

advancing to other quality enhancing models that will carry the day for us. For instance, Sigma

six and PERT, including many other innovations, qualitative and quantitative are on the market,

all clambering for attention and promising phenomenal world class super profits and success for

any entity that would adopt them. Sadly, most of these innovations are probably the same old

ideas dressed in a modern garb or just mere passing fads. But in the midst of all these

uncertainties lies the silver bullet. This calls for a stronger discerning eye.

That said, we can safely assert for sure that certain things will definitely happen although the

greater part of the iceberg remains veiled to the naked eye and submerged below view. In the

ensuing paragraphs, we attempt to open up what we perceive as what will happen in future.

Virtual teams refined and preferred

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For one thing, the quality revolution has and will increasingly usher in a new culture of

interaction across the world. Historically, we have known and trusted same time same time same

place teams which interact physically as well as jointly work on one project at a given site on a

daily basis. But quality will increasingly favour virtual team working where people will work in

self managing virtual teams with a federal net work arrangement, with practically no core or

head office. Team leadership will devolve and get better. In addition, one team member will be

connected to more than one team (multiple teams) and will successfully function, delivering on

their part. Matrix teams will be normal, ethical and encouraged. Consequently, knowledge work

will be highly valued especially in the weightless economy. Today, same geographical location

teams are the norm but tomorrow this is likely to change. As a result, costs will be drastically

reduced because a team leader will be able to communicate via video conferencing media or

other to be developed technology and give guidance as though they were physically present. By

that token, decision making will be quicker and thus increase working pace and speed. That said,

a network of thousands of knowledge workers akin to Vic Luck’s Coopers and Lybrand (Case

study) network arrangement will be the order of the day. Team members will be well versed and

better trained to efficiently work as team members of a diverse, geographically dispersed global

teams which will be divided by different time zones and cultures. Relativity will be better and

more competently handled. In short, cyber work will be the preferred mode of team work.

Virtual companies take centre stage in cyber space

Closely connected to the virtual teams mentioned earlier on, the mode, structure and type of

companies is increasingly changing and will continue to. Today, large multinationals with a huge

international workforce is the order of the day but may not necessarily be tomorrow. The

Executive Excellence magazine of 2000 predicts that virtual corporations are on the increase

with the advent of e-commerce/business. Today, anyone with internet access can just log on to

the relevant website and order a vehicle or whatever they desire at the click of the button. Most

of these genuine companies advertising on the internet exist with a large workforce behind them

working feverishly like beavers to satisfy the customers. Thus, they have huge overheads to keep

that work force running efficiently but these are now giving way to virtual companies which may

not have that huge machinery behind it. Some of these virtual companies are one or two man

companies operated in the comfort of their living rooms but with wide and deep connections

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with manufacturers. Once an order is pressed, in the nick of time, an automatic online order is

sent to the supplier whose systems operate on a Just in Time (JIT) arrangement will quickly

assemble the order and deliver as requested in record time. This arrangement is cutting down on

many overhead and storage costs, enhances quality and increases customer satisfaction. Thus, the

huge multinationals may need to revisit their strategies very soon lest they be undercut by the

new market/industry entrants. In fact, new industries are evolving which need meticulous

monitoring as well as timely response by the current industry leader incumbents. For instance,

the new companies are closer to the customer, more personal and focused on pleasing their client

far much more than the huge bureaucratic, inflexible, unresponsive and impersonal corporations

do today. Yesterday, General Motors was the unrivalled King of the Motor industry but today, it

is in deep weeds, worsened by the global economic meltdown of 2009. One hopes many other

traditional multinationals will not go down with it. For the first time in many years, bankruptcy

seems to be a sensible option. Fluidity, speed and flexibility are critical success factors today and

tomorrow. Projects will have to mutate the way they operate as well so that the deliverables are

made tangibly visible to the sponsors or else time will wipe away the project concept credibility.

Fewer technological glitches and flawless cyber space

In the early formative stages after the internet was invented way back in 1990 or so, an avalanche

of communication ideas have been developed over the years. Some are good and plausible while

others still are fraught with many problems while others have even been abandoned. Today’s

customer has many alternatives on what communication channel they can use on the internet. For

instance, there is video conferencing, You Tube, Face book, Twitter, email, Webbex, Skype,

teleconferencing, Internet chatting, fax, phone, wireless connectivity, document depository sites

and a whole range of alternatives. All a person has to do is access these mediums and connect to

the rest of the world within seconds, assuming their counterpart the other end is awake and ready

to chat. If not, they can leave a message and get on with other business unless further progress

hinges on feedback from the person so contacted. But then, despite all these technological

advances, there is much to be desired by each of them because their output quality is not always

good nor guaranteed. Admittedly, with advancement and continuous improvement, things are far

much better than years ago and will get even better. In future then, superb quality will be the

norm and one will feel much closer to their colleague across the globe as the present

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technological glitches will have been dealt with totally and finally. In fact, glitches will be the

exception rather than the norm. Customers, will feel very safe and comfortable to transact and do

business on the net rather than undertaking multinational cross global travels to attend a meeting

in Asia when it would be cheaper, better and more convenient to use other real time media. Of

course, tourism and cross cultural exchange visits will still be important and heralded but a

traveller will have more options than they presently have. Air travel will by that same token be

improved in order to attract the reluctant or more “choosy” customer.

TQM will set the pace & standards to which all shall aspire

As intimated in our opening remarks to this unit, we are fast progressing to other equally potent

quality models but TQM remains the major centre piece around which everything revolves.

Consistent with the TQM philosophy of an all pervasive companywide quality improvement,

TQM has and will set the pace but the bar will progressively get higher. If one needs to succeed

in the market place, they should not be short of the required minimum standard that will satisfy

the global customer. For instance, natural organic foods fetch a higher price than Genetically

Modified organisms/foods (GMO) because people perceive natural foods more healthy, palatable

and of better quality unlike in the past when volume was the issue. TQM still calls the shots and

will continue to for many generations to come. Anything that shall supersede it (TQM) will

merely be an improvement upon and an addition to what already obtains. That said, the standards

will be far higher than what presently obtains. We leave this assertion to a later point.

TQM is and increasingly will be a competitive advantage tool

As you will already have concluded from your studies and observations, TQM has set the centre

stage for global competition. Anything of mediocre or low standard has no chance of success in

today’s world, whether it is a product, service, process or even project outcome. Things just must

be at the highest and best levels for them to succeed. Thus, the processes will have to be even

better than was the case yesterday. ISO certification or other quality standards will assume

increasing importance and any one not adhering to some form of certification or other will

drastically diminish their competiveness as suppliers, customers and would be partners will

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demand proof of this. No one wants to risk their money or investments on what is not certain. If

things prove not genuine, recourse to court action is another laborious, inefficient and costly

affair so it is better to avoid complications from the start, thus certification will be that all

important key. Said differently, TQM will increasingly assume a competitive advantage tool

position that no one will dispute and in fact aspire after. Currently, certification is optional but

tomorrow, it will be inevitable, so the earlier an entity gets certified the better.

Quality will forbiddingly be high making today’s standards appear mediocre

TQM is the undisputed sought after gem today if the customer is going to be repeatedly and

consistently satisfied. One ignores it at their own peril. That said, we must be quick to say that

with the ever rapidly improving quality trends, things will get even better tomorrow than they are

today. What is perceived as exceptionally high quality today may not match tomorrow’s super

quality standards. In other words, quality will continue to be relative but minimum standards will

have been set beyond which entities will have to aspire after to remain buoyantly competitive.

This implies that what is qualitatively good today will appear mediocre and below standard

tomorrow. An example will do. When the Wright brothers first invented a workable plane and

flew in 1903, they were stars and the celebrities of their day. But in 2009, the same “makeshift”

plane they used is a hazard fit only for the museum! One even wonders how on earth some one

dared get into that plane! Today, we are talking about the A380 airbus, Space Shuttles, Boeing

787 and the rest of them which are somewhat highly computerised and can fly on auto pilot for

many thousands of miles without any slightest malfunction! Planes have evolved over the years

and continue to. What we are saying is that in the future, quality will be forbiddingly high and a

non-negotiable gem.

Many will build on today’s principles and concepts advanced by Gurus, past

& present

As earlier alluded to, there is nothing new under the sun except new innovations, improving on

what already exists. What we see as new today was probably inspired or triggered by something

in the creative mind of some genius. We can further say that we build on what our predecessors

have already done or laboured on. As one Puritan once correctly observed, “We shine today

because we stand on the shoulders of giants” meaning that the present “genius ideas” are

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probably a development on what already exists in some form or other. The point we are making

is that the quality initiatives started by yesterday’s quality gurus will live on and be improved

upon by future scientific cadres. Some unknowingly will adopt their principles and run with the

ideas whilst improving on them only to later discover that some earlier giant existed who

suggested those ideas albeit in a different context and form. Joseph Juran, Edwards Deming, Phil

Crosby, Douglass McArthur, Armand Feigenbaurn and Kaoru Ishikawa may not have been

viewed as legends in their day but the future will vindicate and honour them far much better than

we have hitherto done. Some recognition has admittedly been done but much more lies in the

offing. As a way of honouring them, people will work hard to build on their legacy to the point

where the original idea will scarcely be recognizable or linked to the highly developed product or

service. In fact, quality will become a basic norm akin to one boasting of having running water

flowing through the tap. To possess a cell phone was once a status symbol and affordable luxury

of only the filthy rich but not so now. What marks out some one is the quality and features a

phone has. The price gives you an idea of the quality of something. As earlier suggested, quality

will not and has not developed in a vacuum. There have been factors to be considered such as

availability of resources and correct systems. Increasingly, even other once remote factors as the

environment are now taking the centre stage. Quality will have to take care of all these

environmental concerns as we struggle to save the planet in peril.

As we come to a close of this grand quality treatise, we need to reassert that quality is indeed

free and cheap in the long run. This is for a good reason because once you eliminate defects,

produce a pleasing product or service, the returns and dividends are high, far outweighing the

initial costs. This implies cost saving, efficiency, effectiveness as well as attracting better and

higher funding if you are in the project world. If you are in the corporate world, you will have

strong staying power for decades, yea, centuries to come although some schools of thought do

not think a company can go past 200 years. With the quality weapon securely under your belt,

you will achieve far much more than you ever imagined. Your legacy will outlive you and your

product will be invincible while its time lasts. TQM is not a passing fad or management gimmick

to extort money out of people but is a companywide approach worth supporting by every

executive worth his salt. We must go further to assert that quality should begin with the

individual, much like what that phrase proposes, “Charity begins at home”. Once it is a value, it

will inevitably diffuse upwards within the system in as much as it can trickle down if there is top

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management buy in. The difference however with the upward diffusion is that quality will be

ingrained in people’s value system and will thus not be able to stomach or stand mediocre

output. This looks a tall order for now but the day will surely come when quality will be the

norm, if it is not already.

Bibliography.......................Business and the Environment (papers by various gurus)

Baird Grant, “It’s all in the stars...” Banking World, December 1989

Burnes Bernard, Managing Change, FT Prentice Hall, 4th edition, 2004

Campbell J David, Organisations and the Business Environment, Butterworth Heinnemann, 2002

Clarke Alan, e-learning Skills, Palgrave/Macmillan, 2004

Cole Robert & Mishler Lon, Credit Management, IrwinMcGraw-Hill, 1998

Comber Stan, “The decade of electronics” Banking World, December 1989

Crainer Stuart, The Jack Welch way, Magna Publishing Co. Ltd, 2003

Dresner Simon, Principles of Sustainability, Earthscan, 2007

Fortescue Seymour, “The dawn of a new age”, Banking World, December 1989

Fuller Michael, “What the Customer Demands” Banking World, December 1989

Genhardt Joan & Townsend L Patrick, How Organisations Learn, Financial World Publishing,

2001

Heller Robert, Managing Teams, Dorling Kindersley, 1998

Johansen Robert & O’Hara-Devereaux Mary, Global Work: Bridging distance, Culture & Time,

Jossey-Bass Publishers, 1994

Kakabadse Andrew & Analoui Farhad, Corporate Sabotage, Jaico Publishing House, 2004

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Krames Jeffrey A, The Welch Way: 24 lessons from the World’s greatest CEO, TATA McGraw-

Hill, 2002

Langdon Ken & Bruce Andy, Strategic Thinking, Dorling Kindersley, 2000.

Lindsey W Ian, “The competition will become fiercer still” Banking World, December 1989

Oakland S. John & Porter Leslie, Cases in Total quality Management, Butterworth Heinnemann,

1994

Peters J Thomas & Waterman Robert, Jr, In Search of Excellence, Warner books, 1982

Pirrie David, “A Revolution in delivery”, Banking World, December 1989

Robertson D Ritchie, “The customer friendly way to deliver the services”, Banking World,

December 1989

Sleight Steve, Moving to E-business, Dorling Kindersley, 2001

Tuke Michael, “Success will go to those best able to manage change” Banking World, December

1989

Wanless Derek, “People-the key to success”, Banking World, December 1989

Case study

Shantumbu Holdings versus the Shoprite Checkers

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For many years, the shantumbu holding had reigned over the Mongu scene unrivaled. Rising

from an obscure insignificant chain of shops in the early nineteen seventies, the business empire

rose from strength to strength. Mr. Kabonda25, the proprietor proved himself a very shrewd and

seasoned business man who ensured that his businesses were far above what obtained in Mongu.

As his business prospered, he diversified into other business ventures unrivalled because his

fellow tribes’ men did not possess the right business acumen. In addition, the command economy

espoused by the state discouraged business and subtly encouraged dependence on the state.

Many people devoted themselves to public service from which they derived their livelihood

while looking down on free range entrepreneurs. However, Kabonda had a different spirit and

strongly believed in destiny self determination. He thus weathered the storm, criticism and

threats from all quarters and forged ahead. Fortunately, he was well connected to the powers that

be of the day and eventually managed to worm his way to the UK to study business management.

While he was abroad, his wife and children successfully ran his businesses though merely

scrapping through. He noted a training gap for his posterity if they were to continue expanding

his legacy. At his return after a two year master’s degree study, he came with bright business

expansion ideas which further distinguished his business from the rest. His former business rivals

from the Mbunda clan were no match for him as he espoused modern management practices,

high quality output, customer focus, competitive strategies in relation to pricing, promotion,

placing, and products. He further hired more staff while sending his heirs to work in the

corporate world and later sending them abroad to study. They were thus detached from the

business for many years. That notwithstanding, the Shantumbu enterprise blossomed in the

1980s and into the early nineties. Those were high points.

As the years rolled on, Mr. Kabonda senior (snr) became too comfortable, influential, powerful,

married many women and was generally a philanthropic man. By 1994, the man was growing

old and started recalling his well established children to return home to run his businesses while

he gave expert advices from behind the scenes. Naturally, the children, particularly the sons had

moved on, established families and were thus reluctant to return to the relatively rural Mongu.

One son (Monko) however agreed to quit his full time job and returned to take over the running

25 Not real name. Actual names withheld for security reasons except the Shoprite Checkers

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of the business while others supported from the terraces, as far away as the UK and USA. No

sooner had Monko taken over the reins than the old man died. That was a serious blow to the

business but thankfully, the old man had left a lot of money in reserve which could allow the

young mind to explore new business plans as well as expand the extant business. He straight

away got busy reshaping the business amidst family tussles over property disputes. He weathered

the wind out of the quagmires and slowly expanded the empire to its peak levels around 1997.

The business was pretty comfortable with a positive book balance, high asset base, good flawless

liquidity, highly diversified, a work force of 40, well connected to the powers that be, enjoyed

preferential treatment in contract bids and above all ran the best and only supermarket in the

whole province. No other competitor could match the business quality, availability of goods and

timely service. In a sense, all other smaller traders shrivelled into insignificance leaving the

Shantumbu holding a monopoly in the district. As a result, the enterprise staff became proud,

obstinate, boastful and cared less for customers having enjoyed government support. The

organization ceased to learn and became unresponsive although it still raked in super profits at

the end of the day. But things were about to change. The 1992 privatization act and liberalized

economic policies had begun to make inroads into the country allowing the multinationals to

have free reign into the country spreading their tentacles as they pleased.

Thus, in early 1998, the Shoprite Checkers chain store announced its intention to open up an

outlet in Mongu. At first, people were excited because this advent would mean the district would

now be regarded as a developed place and thus attract further investment. Consumers

interviewed in the marketing survey indicated a longing to have the shop set up camp as soon as

possible.

As the shop was setting up camp, something shocking happened. The first shock was that the

Shoprite received a lot of resistance from the local business community, especially the retail

traders. The second shock is that the company was denied access to land or shop premises in the

main business trading centre but were instead directed to some old dilapidated, abandoned, filthy

structures far out of town near the grave yard! The premises had formerly been a ware house for

the defunct state owned NIEC26 stores but had been idle for nearly a decade. The third shock was

the attempted arson by unknown people buttressed by warning letters from anonymous local

26 NIEC=National Import and Export Company, one of the companies allowed by the state to import or export products during the command economy.

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individuals, probably business people. On four occasions, the shop stock was saved from

destruction just in the nick of time but eventually, with intensified security, the place was

secured and finally opened its doors in mid 1998. As is the manner of curious shoppers, the place

was jammed with buyers on the first few days but business sharply declined thereafter. The chain

store had to craft another strategy to overcome this. Despite being a one stop shop, it did not

attract as many consumers as was anticipated and struggled along for a while.

The shop carried out a market research and concluded that a number of things needed to be done

to remain afloat. Among the recommendations, the following were the action points:

1. The shop was to maximize in stocking relevant product ranges such as mealie meal,

bread, soap etc

2. Closely connected to the above, the entity was to ensure that as much as possible was

available in one shop at a reasonable price.

3. The shop was to ensure the pricing was good, fair and reasonable to attract demand.

4. The shop was to maintain a high quality and clean environment. In addition, the shop was

to be careful with its product quality such as expiry dates, regular checks and proper

storage.

5. The shop was to run frequent promotions that would attract people to come over.

6. A free bus ride was to be offered to shoppers for a period of time so that the distance

factor would be narrowed.

7. The customer was to be king and highly valued. Thus, the customer would be held in

high regard and always considered right all the time.

8. Repeated training of staff was necessary to inculcate the universal organizational culture.

9. Be politically correct with the sitting Government, Traditional leadership structure (e.g.

The BRE) among many.

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These and many other innovations were diligently effected and slowly begun to pay dividends.

On the other end of town, the Shantumbu still felt safe, secure and in charge of the business. The

arrival of the Shoperite checkers raised a bit of concern to Monko and team but they were very

optimistic that the empire would weather the storm and once the “Shopy shopy” craze was over

and his loyal clients would eventually return to his super market. If that did not happen, his large

real estate investments would cushion the impact and thus allow his empire to continue unabated.

Besides, his brothers and sisters abroad would come in to the rescue if need be. Surprisingly, the

“Shopy” craze went on for far too long, his supermarket had fewer patronages, less demand and

therefore less income. His clients begun to ask things they previously never used to and were

generally unwilling to wait for him to deliver ordered goods from Lusaka and beyond. Others

just simply snubbed him or drove past his shop and never set foot there again. Consequently, he

begun to record losses, his damages increased and staff pilferage went up. Because of poor pay

or delayed remuneration, some of his best staff quit to join the Shoprite checkers. Things looked

bad but as usual, the empire was in denial. Looking across the fence to other entrepreneurs, they

were equally complaining and withering fast. The die was cast; it was time to change strategy.

To mitigate further loss, Shantumbu enterprises did the following:

1. The supermarket diversified further to include a bar in one section.

2. Real estates were improved upon to increase value so as to attract the NGOs and wealthy

individuals.

3. Monko was to explore the lucrative timber business at Senanga and beyond.

4. For a season, prices were to be slashed in a bid to win back the local customers although

the price slash was not for long lest the company went under.

5. The bakery which had been closed was to be revived but let out to some other

entrepreneur. The Shoprite bread was not very good at the time as it tasted abit odd,

rather too salty and thus that was an opportunity.

6. The customer was to be treated better than before.

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7. Mobilize more capital from kinsfolk abroad.

8. Introduce some credit sale.

The Shantumbu enterprise immediately effected these strategies with some periodic modest

success but it appears the plans came too late to win back the product loyalty.

By 2001, the Shantumbu Empire had had most of its market share eroded and was generally a

deserted place. The little that was raised could scarcely meet operational costs while the real

estate business had declined as the number of superior housing units came up from about 1992.

With time, the shop closed down, most of the real estate sold and workers laid off. That was the

end of the empire.

But the Shoprite checkers lives on today, growing from strength to strength. Will another appear

to dislodge this giant? Let us wait and see.

© Billy C Sichone 2008

Bibliography

Bower et al, Business Policy,

Burnes Bernard, Managing Change, 4th edition, FT Prentice Hall, 2004

Kotler P & Keller K L, Marketing Management, 13th edition, Pearson/Prentice Hall, 2009

Zikmund G William, Exploring Marketing Research, Thomson South-Western, 2003

Case study questions

What fatal errors did the Shantumbu enterprises make that eventually cost them?

What one factor made the Shoprite Checkers succeed in Mongu?

What would you comment about the reaction and behaviour of the local business community?

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How best would have the local business community protected and improved their business

fortunes?

Comment on the diversification strategies of the Shoprite and Shantumbu companies.

Comment on the relevance of a strategy in a given context.

Comment on succession planning as relates to the Shantumbu enterprises and what lesson you

learn from it.

Write briefly (500 words or less) about a case you have witnessed or heard about in similar lines

to the above scenario on the Zambian scene.

What do you think caused the Shantumbu Empire to decline?

What were the success factors for the Shoprite checkers in Mongu?

What are some of the dangers any business should watch out for in a market economy?

Case study two (repeated case)

Team Work

“Teamwork is the key word” declares Vic luck, the Chairman of world-renowned Accounting

and consultancy firm-Coopers & Lybrand. Teamwork being the keyword for the successful

company of today and tomorrow, Collaboration is the Buzzword. Turn everywhere today; there

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is a shift towards collaboration and teamwork so as to reap the best qualitative results. Vic Luck

has vast experience having worked in big companies such as Philips, Ford and Chrysler. These

are giants in their own right as they have well-established brand names. Reading the article

“Teamwork is the key word” from the CIMA Management accounting magazine, one cannot

help but notice how even the service industry is no exception in the march towards quality goods

and services.

Coopers & Lybrand is in the service industry providing consultancy services all over the world.

There is a sudden outburst of consultancy demands on the said firm everywhere, especially in

Asia. But what is the secret of this company’s success story?

The chairman gives us a number of hints, which are condensed in the following fashion:

v. Teamwork is highly emphasised. The consultancy firm has 11,000 professionals world-

wide. Only collaborative teamwork will do in such circumstances or else risk running

11,000 “stand alone consultancies!” The consultants sit together and brain storm an issue

and then come up with one answer which is the best for the purposes.

vi. Quality standards. Despite the increase in demand of services Coopers is careful to

maintain high quality standards, For it is these very high standards that put Coopers on

the map.

vii. Point system and rewards . The organisation gives points and probably rewards for

outstanding performances. This acts as an incentive to the team to work hard and attain

even higher heights. This has the effect of ensuring continuous improvement in the

services rendered to clients.

viii. Shared Knowledge . The firm has one big database to which all consultants can avail

themselves. Vic Luck has been at the helm of building this network and has done well

because this has propelled collaboration and teamwork. There is a sense of having one

“global team” in this IT* setting. Shared knowledge is another buzzword because

without information, one is doomed to failure. Capital alone is not good enough. The firm

is getting the benefits of having one big database, as information is very crucial today if

the firm is going to be strategic. The world is changing very fast, hence the need for the

right information at the right time, and that to teams! “The reliance on shared knowledge

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rather than on the individualistic approach is one of the greatest changes in our business”,

quips Luck confidently.

Given the four reasons above, one cannot fail to see that teamwork has turboed Coopers &

Lybrands to the apex of the consultancy business. The hind experiences at Chrysler, Philips and

Ford perhaps have given the Coopers chairman the insight into gaining a competitive

advantaged position. High quality standards and continuous improvement through teamwork are

the only way forward for Coopers and Lybrands. The article ends with an aptly brisk statement

“With Luck, Coopers will probably pull it off”. This is a fine way to think of a firm and the

players therein!

* IT is Information Technology.

Source

CIMA Management Accounting magazine, January 1998

Case study questions

What do you think about Vick Luck’s assertion?

Do you think Coopers really has a competitive edge over others in the industry? Why/why not?

List some of the imaginable challenges that Coopers faces as it works with virtual teams.

How does hind some one’s hind industrial experience impact on organisational quality and

efficiency? (I.e. Often times we hear of elaborate world class profiles when CEOs have been

hired, as known quantities)

Revision exerciseWhy is TQM viewed as invincible? Comment in relation to strategy in general.

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Write brief notes on what you perceive to be the future of Quality. Comment in relation to

project management as well (Essay total about 1,000 words).

Do you think the primary quality gurus will be venerated or discarded? Justify your answer.

Why do you think quality certification will be an increasingly competitive tool in future. Give at

least three reasons.

General BibliographyACCA, Management and Strategy, BPP publishing, 1996

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Bell H Cecil jr, French L. Wendell, Organisation Development, 3rd edition, Prentice –Hall of

India pvt ltd, 1989

_Basic Marketing

Bellingham Richard, Virtual teams, Jaico publishing house, 2003

Brake Terence, Managing Globally, Dorling Kindersley, 2002

Brownlie Ian, Principles of public international law, 4th edition, ELBS 1973

Bryans P & Cronin T.P, Organisation theory, Mitchell Beazley, 1983

Burnes Bernard, Managing Change, 4th edition, FTPrentice Hall, 2004

Cateora R Philip, International Marketing, 9th edition, Irwin McGraw-Hill, 1966

CIMA, Organisational Management and Development, BPP publishing, 1995

Cooper R Donald & Schindler S. Pamela, Business Research methods, McGraw-Hill

International editions, 6th edition, 1998

CSO, Zambia figures 2003/2004, Central Statistics office

Davies Anthony, Managing for change, ITDG publishing, 1997

Dessler Gary, Human Resource Management, 10th edition, Pearson Prentice Hall, 2005

Dowling J Peter, Welch E Denice & Schuler S Randall, International Human Resource

Management, 3rd edition, South-Western College publishing, 1999

Dubrin J Andrew, Leadership, Houghton Mifflin company, 1995

Dunkerly David and Clegg Stewart, Organisation, class and control, Routledge & Kegan Paul,

1980

Ferrel O.C, Fraedrich John & Ferrel Linda, Business Ethics, Houghton Mifflin Company, 2000

Fitzwater L. Terry, Documenting employee performance, Jaico publishing house, 2003

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Flippo B. Edwin, Personnel Management, McGraw-Hill, 6th edition, 1984, International edition

Gebhardt E Joan & Townsend L Patrick, How organisations learn, Financial world publishing,

2001

Handy Charles B, Understanding organisations, Penguin books, 1976

Heller Robert, Effective leadership, Dorling Kindersley, 1999

Heller Robert, Managing Teams, Dorling Kindersley, 1998

Hoogvelt M.M Ankie, The third world in global development, MacmillanEducation ltd, 1982

ILO, International Labour standards, International Labour office, Geneva, 1978

Johansen Robert & O’Hara-Devereaux Mary, Global work, Jossey-Bass publishers, 1994

Kakabadse Andrew & Analoui Farhad, Corporate Sabotage, Jaico publishing house, 2004

Kapatamoyo Abel & Gunnigle Patrick, An introduction to Job analysis & evaluation, Zambia

Institute of Personnel Management, 1988

Kinicki Angelo, Kreitner Robert, Organisational Behaviour, 4th edition, Irwin McGraw-Hill,

1998

Langdon Ken & Bruce Andy, Strategic thinking, Dorling Kindersley, 2000

McClure F Paul, New Entreprenuer’s guidebook, Financial world publishing, 2001

McDaniel Carl & Gitman Lawrence J, The future of business, Thomson South-Western, 2006

Morgan Gareth and Burrel Gibson, Socialogical paradigms and organisational analysis,

Heinmann Educational Books, 1982

Mouzelis P Nicos, Organisation and Bureaucracy, Routledge & Kegan Paul, 1981

Mwanalushi Muyunda & Mchonan , An introduction to Appraisals , Zambia Institute of

Personnel Management, 1989

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Nkhata Lennard, Methodological options in policy relevant social research, The University of

Zambia printer, 1997

Nyondo Henry, “Has world Vision Zambia area development programs enhanced sustainable

development in its work” draft research proposal to UNISA

Oakland S John & Porter Les, Cases in Total Quality management, Butterworth Heinmann, 1994

Oxenfeldt Alfred R, Decision Economics, Financial World Publishing, 2001

Patton Quinn Michael, Qualitative Research & Evaluation Methods, 3rd edition, Sage

publications, 2002

Pereira D.F & Rao T.V, Recent experiences in Human resources Development, Oxford & IBH

Publishing Co. Pvt Ltd, 1986

Peters J Thomas & Waterman H Robert, Jr In search of excellence, 1982

Pride M William, Hughes J Robert & Kappor R Jack, Business, 6th edition, 1999

Salton J Gary, Organizational Engineering, Jaico publishing house, 2003

Schaffer R, Earle B, Augusti F, International Business law and its environment, 5th edition, West

Thomson Learning, 2002

Schroeder G Roger, Operations Management, 4th edition, 2008

Silverman David, The theory of organisations, Heinmann Educational Books, 1970

Sleight Steve, Moving to e-business, Dorling Kindersley, 2001

Slinn Peter & Snyder Francis (editors), International law of development: a comparative

perspective, Professional books, 1987

Stevenson J William, Production/Operations management, Irwin, 5th edition, 1982

Tulgan Bruce, Recruiting the workforce of the future, Jaico publishing house, 2003

474

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United Nations Department of public information, Ministerial conference of landlocked and

transit developing countries and the Donor community on transit transport, UN, 2003

Vinten Gerald, Selim M Georges & Chambers D Andrew, Internal Auditing, Pitman publishing,

1981

Wellford Richard & Starkey Richard, Business and the Environment, Universities Press, 1999

World Vision, Operations Manual of World Vision Zambia, WVZ, 2003

Yoder Dale & Staudohar D Paul, Personnel management & Industrial relations, 7th edition,

Prentice Hall of India, 1986

Zikmund G William, Exploring Marketing Research, Thomson South-Western, 2003

Grobler Pieter et al, Human Resource Management in South Africa, 3rd edition, Thomson, 2006

World Vision Relief and development Grants training & evaluation, A model for evaluation,

World Vision Inc, 1996

Render Barry & Heizer Jay, principles of Operations Management, Pearson/Prentice Hall, 6th

edition, 2006

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Glossary (Adapted from various sources with some additions from author)

Activity: actions taken through which inputs (financial, human, technical, material

and time resources) are mobilised to produce specific outputs. The work of a project

or programme.

Advocacy: the use of persuasion, dialogue and reason to obtain change, rather

than the use of force. Advocacy is about changing balances of power. In the context

of World Vision’s core business advocacy is “the process of using the influence one

has by virtue of presence, expertise, size and programming to bring benefit people

in poverty.” Advocacy can be done for people, with people and by people, at the

grass roots and all levels of organised society up to international levels.

Annual Operation Plan: an operation’s plan produced annually, detailing the

activities and outputs for the following year together with relevant resource and

logistical planning. The plan would also include any specific monitoring and

evaluation activities, which would be implemented during the year.

Area Development Programme: a programming model that defines a

geographical area within which project activities will be implemented. These

activities are logically linked to overall programme impacts and a goal. Projects are

implemented in different communities within the area at different times over the life

of the programme. One of the central theses of this programming model is that the

entire area will eventually benefit from the development activities; the effects

spreading out much like the ripples across a pond. World Vision’s emphasis on area

development programming is community based and sustainable, especially focused

on the needs of children.

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Assumption: hypotheses about necessary conditions, both internal and external,

identified in a programme or project design to ensure that the presumed cause-

effect relationships function as expected and that planned activities will produce

expected results. Assumptions which cannot be adequately addressed by the design

of a project become risks to the achievement of a project or programme. For the

most part, assumptions, and therefore risks, become more complicated for higher

level objectives of a programme or project.

Capacity building: the process of developing a person’s capacity in a particular

set of work-related or functional skills.

Caregiver: refers to the person primarily responsible for providing care to a child.

While in the majority of cases this will be a mother, this will not always be the case.

Child abuse: child abuse and maltreatment constitutes all forms of physical and/or

emotional ill treatment, sexual abuse, neglect or negligent treatment or commercial

or other exploitation, resulting in actual or potential harm to the child’s health,

survival, development or dignity in the context of a relationship of responsibility,

trust or power.

Child protection: child protection from a World Vision perspective is the process of

creating safer families and communities for children who face violence.

Child rights: the right of all children to survival, development, protection and

participation as outlined in the UN Convention on the Rights of the Child.

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Community health worker: a health worker working within a public health

system, most commonly at a village level. A community health worker is usually a

member of the community who has been trained to deliver the front-line of health

service to their community.

Development programme: a collection of projects with the same sector, theme

or geographical area, to which a coordinated approach is adopted.

Disaster mitigation: a set of strategies and activities that are used in advance of

a disaster, with the aim of preventing or limiting risk and creating resilience, and

thereby reducing the impact of disasters.

Food security: exists when all people, at all times, have physical and economic

access to sufficient, safe and nutritious food to meet their dietary needs and food

preferences for an active and healthy life (14). See also food availability, food

accessibility, food

Impact: the long-term results of a programme or project. They are the significant

or lasting changes in peoples’ lives or a situation whether planned or unplanned,

positive or negative, directly or indirectly, that a programme or project helps to

bring about.

Objective: a generic term used to express desired results that a programme or

project seeks to achieve. There are different levels of objectives within a logical

framework, namely activities, outputs, outcomes, project goals and programme

goal. The first three relate to projects that constitute a programme and are for the

most part monitored. The last two will be evaluated at the programme level.

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Outcome: benefits and changes (in individual or corporate behaviour/practices, or

systematic capacity) to which the outputs have contributed. The cause-effect

relation between output and outcome is usually changes in knowledge and

attitudes, which lead to changes in people’s behaviour. Outcomes are a measure of

effectiveness.

Output: the tangible products/services delivered as a consequence of

implementing one or more activities. Outputs contribute to achieving a higher-order

strategic objective and are a measure of effort expended.

Programme goal: the vision of the communities that sets the bigger picture

towards which the programme is working. The programme goal is the overall

objective, which will not be achieved by a single project but will require the

contributions of other projects, and other development actors.

Purpose: a term used in original log frame terminology that was a result combining

both outcome and impact that is between output and goal level of the log frame. It

represents the results which can be reasonably expected from a programme

provided that planned outputs are delivered, the assumptions remain valid and the

risks have not materialised.

Plan of Action: This is an organic document listing what actions and the route to

be pursed in doing an activity or set of them. This plan of action is derived from a

longer plan and may represent a particular time frame and range of activities such

as a week, month or quarter as the case may be.

Memorandum of Understanding: A document stipulating the agreed

terms of reference and responsibilities of each party to the given agreement.

This is different from a contract although it may be part of one.

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Programme: An entity that is composed of a collection of projects integrated together with a

view to build synergy as well as collectively tackle a problem or set of problems in a given

geographical area.

Project: This is a specific undertaking by implementers derived from an agreement to handle a

particular problem or find solution to an issue in a given time farm, budget and contract

document relating to a target population, customers or sponsors.

Quality: Trait meeting specific standards, expectations, needs and desires of stakeholders and

customers.

Operations: Aspect of the entire entity that makes the organisation function according to plan

and achieve predetermined goals.

Total Quality Management: That all pervasive organisation wide management quality that

ensures that quality embedded throughout all the organisation system and process.

Index

3

360* appraisal.......................................................190

A

AIDS...............................................................57, 114Americans......................21, 22, 24, 41, 310, 443, 447Annual Operation Plan..................................116, 469appraisal109, 159, 187, 188, 189, 190, 191, 193, 194,

213, 214, 351, 433appraisals...............187, 188, 189, 190, 191, 193, 433Armand Feigenbaum.....................................3, 51, 60ASQ..................................................................13, 52Associations............................................................52attitude..................................................................142

B

Bill Gates.......................................303, 304, 306, 309BP Zambia...........................................54, 91, 92, 97

budget. 6, 93, 108, 111, 122, 133, 135, 146, 201, 224, 225, 245, 380, 386, 430, 472

bureaucracy. . . .31, 66, 70, 72, 79, 101, 172, 173, 225, 231, 276, 278, 281, 288, 308, 402, 421, 433, 434, 438, 442

business.12, 14, 15, 16, 18, 19, 22, 24, 36, 40, 42, 47, 48, 49, 54, 58, 64, 66, 67, 70, 72, 73, 74, 77, 78, 82, 86, 87, 91, 136, 147, 155, 158, 160, 166, 171, 174, 179, 181, 193, 204, 216, 217, 225, 226, 239, 254, 256, 257, 258, 260, 261, 262, 263, 265, 269, 274,鿘 282, 287, 291, 292, 295, 296, 297, 298, 300, 303, 306, 311, 313, 317, 321, 324, 341, 346, 351, 355, 364, 371, 375, 376, 378, 379, 380, 381, 382, 383, 384, 385, 386, 387, 388, 389, 391, 393, 395, 402, 405, 409, 412, 413, 421, 422, 433, 436, 439, 443, 446, 449, 450, 455, 456, 457, 459, 460, 461, 463, 466, 467, 469

Business..................................................................31

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buzzword.....14, 21, 93, 202, 320, 427, 435, 441, 462

C

Cavendish University Zambia...................................7CEO....36, 68, 70, 104, 184, 210, 237, 255, 258, 270,

281, 305, 311, 408, 410, 411, 441, 455China.......................................................86, 402, 418coach..............................142, 143, 149, 152, 153, 443concept15, 46, 50, 51, 59, 60, 61, 72, 78, 81, 86, 107,

108, 136, 138, 204, 386, 429, 442, 450continuous improvement....18, 21, 89, 132, 240, 262,

283, 304, 306, 320, 321, 324, 433, 439, 443, 450, 462, 463

Copper belt University..................................196, 197Corporate growth....................................................91cost effective...9, 21, 41, 82, 161, 173, 216, 217, 334,

349, 354, 403Crosby..............3, 22, 47, 48, 49, 50, 61, 89, 431, 453Cross Roads...........................................64, 65, 66, 67culture............................................141, 441, 443, 445customers....18, 23, 25, 27, 40, 65, 67, 71, 72, 73, 79,

80, 81, 82, 84, 87, 91, 100, 101, 147, 176, 178, 202, 211, 250, 262, 263, 274, 277, 278, 279, 283, 298, 299, 305, 312, 314, 315, 318, 323, 324, 329, 330, 339, 363, 375, 376, 404, 410, 414, 424, 430, 431, 438, 439, 441, 442, 449, 451, 457, 459, 472

D

decisions...............................................................150Deming. . .3, 22, 39, 41, 42, 43, 44, 46, 47, 50, 51, 52,

59, 60, 62, 89, 427, 438, 453Dependence syndrome..........................................243Detailed Implementation Plan.......................116, 134differentiation..........................................88, 102, 103Direction................................................................19DIRFT.....................................................................61diverse...................................................139, 140, 152DMDT...................................................................165DME............................................7, 13, 132, 134, 155

E

effectiveness.....25, 42, 73, 78, 89, 90, 132, 164, 179, 230, 240, 273, 312, 337, 431, 453, 471

efficiency 25, 50, 89, 90, 91, 106, 154, 164, 223, 240, 331, 332, 333, 335, 354, 360, 435, 444, 453, 463

EIA............................................54, 84, 108, 240, 243

environmental analysis..............................18, 19, 376evaluate..............................9, 109, 136, 188, 193, 383evaluation17, 18, 20, 36, 89, 107, 118, 125, 126, 129,

130, 132, 134, 135, 155, 188, 189, 194, 196, 214, 341, 360, 466, 468, 469

Excellence. . . .12, 36, 52, 76, 104, 153, 177, 178, 179, 181, 182, 184, 185, 206, 214, 322, 324, 325, 440, 446, 449, 455

F

facilitate................................................................444feasibility study.............................................107, 108finance...................................................................146Finance.......16, 25, 126, 128, 201, 223, 379, 383, 388Fish bone.................................................................60focus.....................................................................438Fredrick W Taylor.................................................293

G

General Douglas McArthur.................................3, 51General Motors..................20, 41, 403, 437, 447, 450Generation X.........................................................230Generation Y.........................................................230George Elton Mayo...............................................293global economic meltdown..............16, 123, 242, 450Global Village.........................................................16

H

Harvard University................................................291hierarchical.........68, 93, 198, 199, 257, 401, 434, 442HIV..................................................57, 114, 117, 254HIV & AIDS.........................................................114Home Based Care..................................................116HRM.4, 158, 160, 161, 163, 166, 167, 169, 170, 174,

175, 183, 186, 195, 196, 259

I

IBM.......................................................303, 308, 423IHRM....................................................169, 170, 183ILO....................................................56, 75, 184, 466implementation4, 17, 19, 20, 24, 54, 56, 63, 107, 108,

109, 110, 111, 115, 116, 118, 119, 120, 123, 124, 129, 130, 133, 135, 136, 139, 142, 144, 164, 195, 216, 223, 224, 225, 241, 243, 244, 245, 246, 247, 248, 249, 251, 253, 274, 287, 323, 352, 355, 431, 433, 435

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Indicator Tracking Table.......................................133integrated program.............................6, 216, 253, 265Integrated Program management.....................4, 215internal customer.....................................50, 277, 323international 16, 17, 21, 25, 30, 32, 40, 42, 63, 67, 68,

78, 80, 92, 97, 133, 135, 166, 169, 170, 173, 196, 218, 255, 260, 261, 265, 276, 279, 282, 286, 287, 290, 298, 301, 316, 379, 402, 403, 404, 406, 414, 415, 423, 424, 425, 438, 444, 449, 465, 469

International Standard Organisation..................52, 97internet...................6, 13, 48, 268, 321, 322, 449, 450Ishikawa diagram..............................................50, 60ISO 14000..........................................................24, 54ISO 9000....................................24, 52, 53, 54, 56, 74ISO standards...................................10, 35, 56, 74, 99IT151, 154, 320, 329, 331, 332, 334, 337, 339, 340,

344, 367, 387, 462, 463

J

Jack Welch. .25, 35, 184, 232, 408, 409, 410, 411, 454Japanese. .9, 15, 21, 23, 24, 35, 40, 42, 44, 46, 47, 50,

51, 52, 59, 60, 61, 62, 230, 286, 435, 438, 442, 447JIT...........................................................90, 226, 450Juran..3, 22, 43, 44, 45, 46, 47, 50, 51, 59, 60, 62, 89,

90, 438, 453JUSE......................................................40, 46, 50, 52

K

Kaizen..................................21, 23, 35, 325, 326, 435KAIZEN.................................................................21Kaoru Ishikawa...........................................3, 50, 453KFC......................................................................286Known quantities...................174, 262, 300, 305, 308

L

LAN..............................................................346, 347leadership...............................142, 148, 153, 437, 439Leadership......68, 122, 156, 157, 196, 198, 204, 205,

266, 272, 273, 275, 465LEAP............................................................134, 136Logframe...............................................................112

M

M & E...111, 129, 132, 135, 136, 156, 246, 249, 253, 433

Malcom Baldrige National award...........................52

management...................................141, 150, 441, 443Management. 4, 11, 12, 15, 16, 17, 35, 36, 46, 51, 53,

55, 56, 68, 69, 75, 76, 77, 78, 80, 82, 92, 99, 103, 104, 106, 124, 133, 137, 139, 140, 157, 158, 160, 161, 166, 167, 169, 176, 183, 184, 185, 188, 192, 198, 199, 213, 214, 216, 227, 254, 265, 266, 267, 272, 277,鿘 307, 315, 320, 321, 327, 330, 335, 336, 339, 342, 345, 347, 349, 352, 353, 356, 359, 362, 365, 378, 379, 382, 383, 386, 405, 423, 427, 430, 437, 438, 454, 455, 460, 462, 463, 465, 466, 467, 468, 472

Management fads..................................................428Market Research...................................................226Marketing. . .16, 17, 25, 36, 71, 87, 90, 157, 226, 227,

274, 406, 415, 460, 465, 468Marks and Spencer........................275, 277, 278, 280mentor..........................................................142, 152Microsoft......181, 240, 303, 304, 305, 306, 307, 308,

309, 310Mission statement................................................218Mitsubishi.....................................................286, 447module..................6, 7, 9, 10, 14, 22, 56, 77, 132, 226motivating.............................................................145motivator...............................................................152Multinational...........................................................23Mwanalushi...................................188, 193, 214, 466Mwendafilumba................................................68, 73

N

NASA........................................................83, 90, 217NGO......................................................................133Nokia.....................................................366, 367, 368

O

Opel...............................400, 401, 402, 403, 405, 406operational............................................................445organisation 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25,

44, 72, 74, 79, 82, 83, 85, 87, 89, 91, 101, 103, 106, 108, 126, 141, 146, 148, 160, 161, 164, 165, 166, 167, 168, 169, 170, 171, 173, 174, 175, 179, 182, 183, 186, 187, 188, 189, 191, 192, 196, 198, 199, 200, 202, 203, 204, 205, 206, 207, 208, 209, 210, 212, 216, 219, 226, 227, 231, 232, 234, 236, 239, 259, 260, 261, 265, 272, 273, 274, 283, 287, 294, 306, 307, 312, 320, 323, 324, 327, 332, 344, 348, 349, 358, 360, 361, 362, 363, 364, 372, 379,

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408, 409, 412, 417, 423, 425, 428, 429, 431, 432, 433, 435, 436, 437, 438, 439, 442, 443, 445, 462, 472

organism...........................................16, 25, 147, 277

P

paradigm...............................................................152Participatory Rural Appraisal................................109PDCA......................................................................59PDQA....................................................145, 199, 203people management.........93, 99, 120, 166, 167, 186Performance Appraisal..........................................188Personnel Management.................................158, 166Peter Drucker..........................................12, 166, 176PMIS.....................................................................133PRINCE 2..............................................................55PRINCE2.............................................55, 56, 74, 118Professionals.........................................................126programs24, 41, 75, 83, 106, 142, 159, 176, 181, 217,

253, 265, 292, 295, 303, 304, 305, 306, 336, 341, 344, 347, 360, 433, 467

project. 1, 3, 4, 6, 9, 15, 17, 22, 25, 38, 52, 54, 55, 56, 57, 58, 63, 65, 74, 77, 78, 79, 82, 84, 86, 87, 88, 89, 90, 91, 104, 105, 106, 108, 109, 110, 111, 112, 114, 115, 116, 117, 118, 119, 120, 122, 124, 125, 126, 127, 128, 129, 130, 131, 132, 134, 136, 137, 138, 139, 140, 145, 154, 155, 156, 158, 159, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 174, 175, 183, 187, 188, 192, 193, 195, 201, 213, 214, 215, 216, 217, 218, 219, 221, 223, 224, 225, 226, 227, 228, 229, 230, 231, 232, 240, 241, 242, 243, 244, 245, 246, 247, 248, 249, 250, 251, 253, 254, 259, 265, 362, 383, 401, 422, 427, 429, 431, 432, 433, 447, 449, 450, 451, 453, 464, 469, 471, 472

project management.........................6, 9, 56, 126, 138Project Manager.....3, 56, 57, 58, 107, 119, 120, 124,

125, 126, 129, 155, 166, 176, 195, 220, 447project quality...........................................................6projects. . .6, 17, 55, 58, 84, 85, 89, 90, 106, 107, 108,

110, 115, 129, 130, 131, 132, 133, 134, 135, 136, 138, 145, 148, 156, 164, 170, 172, 176, 211, 213, 216, 217, 219, 224, 229, 231, 239, 240, 241, 254, 255, 262, 265, 322, 362, 423, 430, 432, 433, 470, 471, 472

Projects.....55, 63, 106, 108, 130, 140, 159, 217, 228, 231, 433, 450, 469

Provisional Design Document...............................110

Q

quality...144, 146, 148, 149, 438, 439, 441, 442, 444, 445, See

Quality 1, 3, 4, 7, 9, 11, 13, 14, 16, 22, 35, 36, 38, 41, 46, 47, 49, 50, 51, 52, 58, 59, 60, 61, 63, 74, 75, 76, 77, 78, 79, 80, 81, 85, 86, 87, 88, 92, 102, 103, 104, 106, 136, 186, 199, 202, 203, 254, 287, 300, 307, 314, 320, 427, 431, 436, 441, 447, 452, 453, 462, 464, 467, 472

quality culture.........................................................89quality gurus.............7, 9, 35, 47, 49, 51, 52, 453, 464

R

revolution. . .3, 38, 58, 61, 74, 275, 401, 436, 447, 449robust....................................................................444

S

Shoprite..........................455, 456, 457, 459, 460, 461skills.......................................................................144SMART.........................................................114, 156SMS......................................................................367St Micheal.............................................................275stakeholders....16, 79, 84, 85, 87, 105, 107, 109, 110,

111, 125, 128, 130, 133, 136, 176, 202, 242, 243, 244, 245, 247, 250, 251, 252, 254, 286, 408, 417, 424, 425, 434, 472

Strategic Business Units......................................408strategically...................................................149, 444strategy....9, 14, 15, 16, 19, 20, 21, 32, 66, 67, 68, 71,

72, 73, 82, 84, 101, 108, 115, 131, 144, 218, 242, 247, 257, 258, 264, 265, 277, 281, 283, 284, 285, 286, 287, 290, 294, 299, 303, 312, 318, 319, 322, 339, 340, 376, 381, 388, 397, 403, 404, 414, 415, 416, 417, 421, 431, 433, 435, 458, 459, 461, 464

Strategy..........................................15, 17, 21, 71, 465SWOT..................11, 16, 17, 118, 274, 376, 393, 414systematic..............................................................140

T

Team....................................................93, 94, 95, 232team-building model.............................................232Teams.. .4, 35, 157, 183, 184, 227, 228, 266, 454, 466

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Teamwork. 94, 95, 147, 315, 319, 320, 441, 444, 462Tesco.....................................................391, 392, 393TOTAL QUALITY.................................................14Total Quality Management.............................14, 81Total Quality Movement.........................................23TQM. . .3, 9, 11, 14, 15, 19, 21, 22, 24, 25, 36, 38, 58,

63, 72, 74, 77, 78, 80, 81, 82, 83, 84, 85, 86, 89, 91, 92, 95, 96, 97, 98, 99, 103, 104, 117, 198, 202, 203, 204, 205, 207, 325, 415, 427, 428, 430, 431, 432, 435, 436, 440, 447, 448, 451, 452, 453, 464

traditional......................................................442, 444Transformational Development Indicator..............110

U

USAID..........................................................131, 254

V

vision....................................................................146Vision. . .7, 13, 19, 133, 134, 135, 138, 140, 141, 142,

144, 146, 147, 148, 153, 154, 163, 196, 197, 198, 199, 200, 202, 204, 205, 206, 217, 218, 219, 229, 467, 468, 469, 470

W

Wal-Mart...............................................................310World Vision..........145, 147, 196, 204, 205, 218, 468WVZ...............................................132, 197, 206, 468

Z

zero defects.........................14, 43, 48, 202, 431, 438

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