Leadership in Total Quality Management.pptx

Leadership in Total Quality Management

1. Leadership in TQM Chapter 02 1

2. TQM Beyond 2000 As the 21st century begins, the quality movement has matured. The new quality systems have evolved beyond the foundations laid by Deming, Juran and the early Japanese practitioners of quality In 2000 the ISO 9000 series of quality management standards was revised to increase emphasis on customer satisfaction. Sector-specific versions of the ISO 9000 series of quality management standards were developed for such industries as automotive (QS-9000), aerospace (AS9000) and telecommunications (TL 9000 and ISO/TS 16949) and for environmental management (ISO 14000). Six Sigma, a methodology developed by Motorola to improve its business processes by minimizing defects, evolved into an organizational approach that achieved breakthroughs – and significant bottom-line results. When Motorola received a Baldrige Award in 1988, it shared its quality practices, like Toyota Motor Corporation, with others. 2

3. Benefits Quality superiority produces the following organizational benefits: Greater customer loyalty Market share improvements Higher stock prices Reduced service calls Higher prices Greater productivity 3

4. Obstacles to TQM Implementation Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure and isolated individuals and departments Ineffective measurement techniques and lack of access to data and results Paying inadequate attention to internal and external customers Inadequate use of empowerment and teamwork Failure to continually improve 4

5. Open Discussion Are leaders born or made? 5

6. Leader A leader is one who heads an organization or a department or group of people to carryout certain tasks assigned to them or accepted by them as a single entity, to the satisfaction of one and all. 6

7. Leadership The ability of a leader to manage or lead the group of people effectively to carryout the task. According to the James McGregor a leader is one instills purposes, not one who controls the team member by brute force. According to the “Malcolm Baldrige National Quality Award”, “An organization’s senior leader should set directions and create customer focus, clear & visible values, and high expectations”. The directions, values & Expectations should balance the needs of all stakeholders. There is no universal definition of leadership. 7

8. Characteristics of Quality Leaders: Customer contact and care Treatment to subordinates Emphasis on improvement Emphasis on prevention Collaboration and competition Coaches rather than bosses 8

9. Characteristics of Quality Leaders: Learning from problems Good communication skills Commitment to quality Vendor selection Council organization system Encourage, recognize and appreciate. 9

10. Leadership Concepts To be effective, a leader understands that: People, paradoxically, need security and independence at the same time. People are sensitive to external rewards and punishments, and yet are also strongly self-motivated. People like to hear a kind word of praise. Catch people doing something right, so you can pat them on the back. People can process only few facts at a time; thus, a leader needs to keep things simple. People trust their gut reaction more than statistical data. People discuss a leader’s rhetoric if the words are inconsistent with the leader’s action. 10

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12. 3M Company At 3M Company, the leadership climate is proactive rather than reactive, externally focused rather than internally focused, and the quality perception views the totality of the business rather than just one aspect of it. In order to identify the gaps between its existing position and its vision of the future, 3M has developed “Quality Vision 2000” and implemented it through a process called Q90s which involves the total management system, making the process broader and deeper across the company worldwide. 12

13. 7 Habits of Highly Effective People 13

14. 7 Habits of Highly Effective People Be proactive Begin with the end in mind Put first things first Think win-win Seek first to understand, then to be understood Synergy Sharpen the saw (renewal) 14 https://www.youtube.com/watch?v=ktlTxC4QG8g

15. Ethics It is a body of principles or standards of human conduct that govern the behavior of individuals and organizations. 15 https://www.youtube.com/watch?v=3rQi2uNqwxk

16. Root Cause of Unethical Behavior Organizations favor their own interests above the well-being of their customers, employees or the public. Organizations reward behavior that violates ethical standards, such as increasing sales through false advertising. Organizations encourage separate standards of behavior at work than at home, such as secrecy and deceit versus honesty. Individuals are willing to abuse their position and power to enhanced their interests, such as taking excessive compensation for themselves off the top before other stakeholders receive their fair share. Managerial values exist that undermine integrity, such as the pressure managers exert on employees to cover up mistakes or to do whatever it takes to get the job done, including cutting corners. 16

17. Root Cause of Unethical Behavior Organizations and individuals overemphasize the short-term results at the expense of themselves and others in the long run; for example, behavior is good based on degree of utility, pleasure or good received, regardless of the effort on others. Organizations and managers believe their knowledge is infallible and miscalculate risks, such as when financial managers invest organizational funds in high-risk options trading. 17

18. Ethical Behavior Quality is dependent on ethical behavior. Doing what is right in the first place is a proven way to reduce costs, improve competitiveness and create customer satisfaction. Case study: https://peachyessay.com/sample-essay/coca-cola-unethical-practices/ 18

19. Quality council In order to build quality into the culture, a council is established to provide overall direction and it is driver of the TQM engine. Duties of the quality council are: Develop, with input from all personnel, the core values, vision, mission statement and quality policy statement. Develop a long term(Strategic) plan with goals and annual quality program with objectives 19

20. Duties Create the total education and training plan Determine and continually monitor the cost of the poor quality Determine the performance measures for the organization, approve those for the functional areas and monitor them Continually determine those project that improve the process, that affect customer( I&E) Establish multifunctional project or work group and monitor their progress Establish and revise the recognition & reward system 20 https://www.youtube.com/watch?v=Cu_-9CGnqr4

21. What is Strategy? It determines the direction and scope of an organization over the long term, and they say that it should determine how resources should be configured to meet the needs of markets and stakeholders. -Exploring Corporate Strategy … it should determine how organizational resources, skills, and competencies should be combined to create competitive advantage. -Harvard Business Review 21

22. Definitions A  goal  is a broad primary outcome. A  strategy  is the approach you take to achieve a goal. An  objective  is a measurable step you take to achieve a strategy. A  tactic  is a tool you use in pursuing an objective associated with a strategy. For Example: Goal : Make our Core PC microprocessors a category leader in sales revenue by year X. Strategy : Persuade buyers that our Core processors are the best on the market by associating with large, well-established PC manufacturers. Objective : Retain 70 percent or more of the active worldwide PC microprocessor market, according to Passmark's CPU benchmark report. Tactic : Through creative that underlies our messaging, leverage hardware partner brand awareness to include key messages about the Intel Inside program. 22

23. Definitions Mission  Statement defines the company's business, its objectives  and  its approach to reach those objectives. A  Vision  Statement describes the desired future position of the company. For example: Google mission statement is “ to organize the world’s information and make it universally accessible and useful .” Google vision statement is “ to provide access to the world’s information in one click .” 23

24. What is Strategy? 24

25. What is Strategy? 25

26. What are Strategic Objectives? These are not specific projects or initiatives. Looking at the key projects a team is working on is often a good place to start identifying the actual goals. By looking at the “goals of the projects,” you often find the goals of the organization. If an organization has a set of key performance indicators, they can be used to determine what the overall goals are.  The relative importance of these goals need to be determined. 26

27. Strategy Pyramid 27

28. Why Value should come before Vision? “….  I see that values and beliefs about things like people, community, and the nature of work are the immovable objects, or soil, from which a vision has to emerge.  These values and beliefs are the “why” at the center that drives everything and inspires employees to do their best work.” -Deborah Morris Simon Senek’s https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en#t-250113 28

29. Strategic Alignment “.. having a strategy has no real effect on the performance of your business. It’s aligning your activities to your strategies that makes the difference.” -Santa, R. “ The process of aligning an organization’s decisions and actions such that they support the achievement of strategic goals.” 29

30. Strategic Planning Strategic planning is the process of defining strategy and then cascading it down through the organization and turning it into a tactical plan. Strategic planning happens at all levels in the organization. Core corporate goals > Divisions> Strategy and goals> Next level down (departments)> strategic goals 30

31. Communication Top management as well as managers and supervisors at all levels serve as translators and executors of top management’s directive. Quality-conscious companies are interested in the cost of poor communication in terms of both employee productivity and customer perception of product and service quality. Limited or inaccurate facts parceled out to employees may demoralize workers and lead to rumors. https://www.youtube.com/watch?v=gCfzeONu3Mo 31

32. How Employees Receive Information Rumor mill Monthly town meeting between the CEO and staff Monthly departmental meeting Email Members of the inner circle Company newsletter Memos External customers who call with questions Voice mail Verbal and/or written feedback from a manager or superior 32

33. Communication When it comes to information, there is sometimes the notion that, to be among the “powerful,” you must know something that nobody else knows, or possess information that no one else possesses. This can lead to a culture that encourages employees to withhold valuable information from other employees in order to preserve or validate their “power and influence.” Communication is defined as the exchange of information and understanding between two or more persons or groups. Without understanding between sender and receiver concerning the message, there is no communication. The simple model is as follows: 33

34. Effective Communication 34 https://www.youtube.com/watch?v=3_dAkDsBQyk https://www.youtube.com/watch?v=qHrN5Mf5sgo

35. Vehicles for Communicating about Quality Training and development for both managers and employees. Managers must understand the processes they manage as well as the basic concept of systems optimization. Employee training should focus on the integration and appropriate use of statistical tools and problem-solving methods. Participation at all levels in establishing benchmarks and measures of process quality. Involvement is both vertical in the hierarchy as well as horizontal by cross-functional teams. Empowerment of employees by delegating authority to make decisions regarding process improvement within individual areas of responsibility, so that the individual “owns” the particular process step. Quality assurance in all organization processes, not only in manufacturing or operations but in business and supporting processes as well. The objective throughout is continuous improvement. Human resource management systems that facilitate contributions at all levels (up and down and across) the organizational chart 35

36. Culture Culture is the pattern of shared beliefs and values that provides the members of an organization rules of behavior or accepted norms for conducting operations. It is the philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an organization together and are shared by employees. In simpler terms, culture provides a framework to explain “the way things are done around here.” 36

37. IBM’s Basic Beliefs respect for the individual, best customer service, and pursuit of excellence. In turn, these beliefs are operationalized in terms of strategy and customer values. 37

38. Other examples of Basic Belief 38

39. Behaviors and Activities that Demonstrate Commitment to Quality Signaling — Make statements or take actions that support the vision of quality, such as mission statements, or charters directed toward customer satisfaction. Publix supermarkets’ “Where shopping is a pleasure” and JC Penney’s “The customer is always right” are examples of such statements. Focus — Every employee must know the mission, his or her part in it, and what has to be done to achieve it. What management pays attention to and how management reacts to crisis is indicative of this focus. When all functions and systems are aligned and when practice supports the culture, everyone is more likely to support the vision. Johnson and Johnson’s cool reaction to the Tylenol scare is such an example 39

40. Behaviors and Activities that Demonstrate Commitment to Quality Employee policies — These may be the clearest expression of culture, at least from the viewpoint of the employee. A culture of quality can be easily demonstrated in such policies as the reward and promotion system, status symbols, and other human resource actions. 40

41. Management Systems What are the activities and processes that are critical to the mission of quality? Identifying the key success factors that must be well managed if the mission or objective is to be achieved; that is, the limited number of areas in which results, if satisfactory, will ensure successful competitive performance for the organization Advertising is a key success factor for Coca-Cola but not for McDonnell Douglas; design is critical to a high-tech electronics firm but not to a bank. 41

42. Identification of key success factors The three dimensions are: the drivers of quality such as cycle time reduction, zero defects, or six sigma; operations that provide opportunities for reducing cost or improving productivity; and the market side of quality, which relates to the salability of goods and services 42

43. Traditional Quality Control (1) setting standards, (2) reporting variances, and (3) correcting deviations. 43

44. TQM as a Strategy The central idea is to meet the needs of people so that they can be productive. These needs are both personal and job related, and a system of control should be based on both. If employees “buy in” to quality, the control system should not be perceived as domination, but rather as a means toward self-control. 44

45. Illustrative Case Las Vegas is a city with almost 100 casino/hotels offering various forms of entertainment and services. Mirage Resorts is aware that in order to compete in this highly competitive environment, it must attract and maintain a highly competent work force, the primary factor for success in such a service industry. The company spends a considerable amount of time and money in hiring and training the most qualified and the friendliest employees it can find. Employees are selected based on an estimate of whether they are likely to enjoy their jobs and contribute to Mirage’s efforts to create and nurture customer goodwill. Following selection, employees are trained and motivated to provide quality customer service by offering them attractive benefits, including free meals, health insurance, education assistance, paid time off, bonuses for perfect attendance, and retirement plans. 45

46. Illustrative Case Question Do you think the “material” benefits listed will result in motivation to provide quality customer service? 46

47. Questions Select a manufacturing company and a service company. Identify a key activity for improving quality in each. 47