Leadership and commitment

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Leadership and commitment
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THE TOTAL QUALITY MANAGEMENT APPROACH

• What is quality management? Quality is too
  important to leave to the so called quality
  professionals it cannot be achieved on a
  company or organization-wide basis if it is left
  to the so-called experts
• The organization that believes that the
  traditional quality control techniques and the
  way they have always been used will resolve their
  quality problems may be misguided.
• Employing more inspectors, tightening up
  standards, developing correction, repair and
  rework teams do not improve quality.
• Traditionally, quality has been regarded as the
  responsibility of a quality (assurance or
  control) department, and still it has not yet
  been recognized in some organizations that many
  quality problems originate in the commercial,
  engineering, service or administrative areas.
• It requires a comprehensive approach that must
  ?rst be recognized and then implemented

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THE TOTAL QUALITY MANAGEMENT APPROACH

• TQM is a comprehensive approach to improving
  competitiveness, effectiveness and ?exibility
  through planning, organizing and understanding
  each activity, and involving each individual at
  each level. It is useful in all types of
  organization.
• The impact of TQM on an organization is ?rst TQM
  ensures that management adopts a strategic
  overview of quality and focuses on prevention,
  not detection, of problems. but it is easy to
  underestimate the effort that is required to
  change attitudes and approaches. Many people will
  need to undergo a complete change of mindset to
  unscramble their intuition
• It often requires a mindset change to break down
  existing barriers. Managements that doubt the
  applicability of TQM should ask questions about
  the operations costs, errors, wastes, standards,
  systems, training and job instructions.
• Wrong the detection/ inspection mode to solve
  quality problems We have a quality problem, we
  had better double check every single item
  whether it is in electronics, plastics, heavy
  engineering or aerospace
• quality or process performance improvement teamsA
  better mindset may be achieved by looking at the
  sort of barriers that exist in key areas. Staff
  may need to be trained and shown how to
  reallocate their time and energy to studying
  their processes in teams, searching for causes of
  problems and correcting the causes, not the
  symptoms, once and for all.

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THE TOTAL QUALITY MANAGEMENT APPROACH

• Small size firms (slim) asking the following
  questions
• Is any attempt made to assess the costs arising
  from errors, defects, waste, customer complaints,
  lost sales, etc.? If so, are these costs minimal
  or insigni?cant?
• Is the standard of management adequate and are
  attempts being made to ensure that quality is
  given proper consideration at the design stage?
• Are the organizations quality management systems
  documentation, processes, operations, etc. in
  good order?
• Have people been trained in how to prevent errors
  and problems? Do they anticipate and correct
  potential causes of problems, or do they ?nd and
  reject?
•  
• 32 The foundations of TQM
• Are subcontract suppliers being selected on the
  basis of the quality of their people and services
  as well as price?
• Do job instructions contain the necessary quality
  elements, are they kept up to date and are
  employers doing their work in accordance with
  them?
• What is being done to motivate and train
  employees to do work right ?rst time?
• How many errors and defects, and how much wastage
  occurred last year? Is this more or less than the
  previous year

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Commitment and policy

• To be successful in promoting business
  effectiveness and ef?ciency, TQM must be truly
  organization-wide, it must include the supply
  chain and it must start at the top with the chief
  executive or equivalent (all demonstrate that
  they are serious about quality)
• TQM starts at the top, where serious obsession
  and commitment to quality and leadership must be
  demonstrated. Middle management also has a key
  role to play in communicating the message.(TQM
  spread effectively throughout the organization.)
• Every chief executive must accept the
  responsibility for commitment to a quality policy
  that deals with the organization for quality, the
  customer needs, the ability of the organization,
  supplied materials and services, education and
  training, and review of the management systems
  for never-ending improvement.
• Senior management commitment should be an
  obsession, not lip service
• One of the major challenges in project work,
  including consultancy, is the need to in?uence
  the values and behaviours of the entire delivery
  team

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Commitment and policy

• The quality policy
• A sound quality policy, together with the
  organization and facilities to put it into
  effect, is a fundamental requirement, if an
  organization is to fully implement TQM
• Management should be dedicated to the regular
  improvement of quality, not simply a one-step
  improvement to an acceptable plateau. These ideas
  can be set out in a quality policy that requires
  top management to
• Identify the end customers needs (including
  perception).
• Assess the ability of the organization to meet
  these needs economically.
• Ensure that any bought-in materials meet the
  required standards of performance and ef?ciency.
• Ensure that subcontractors or suppliers share
  your values and process goals.
• Concentrate on the prevention rather than
  detection philosophy.
• Educate and train for quality improvement and
  ensure that your subcontractors do so as well.
• Measure customer satisfaction at all levels, the
  end customer as well as customer satisfaction
  between the links of the supply chain.
• Review the quality management systems to maintain
  progress.

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Quality policy example 1 (a process industry
company supplying the automotive sector

• The company will concentrate on its customers and
  suppliers, both external and internal.
• The performance of our competitors will be
  communicated to all relevant units.
• Important suppliers and partners will be closely
  involved in our quality policy this relates to
  both external and internal suppliers of goods,
  resources and services.
• Quality management systems will be designed,
  implemented, audited and reviewed to drive
  continuous improvement they will be integrated
  into other management systems.
• Quality improvement is primarily the
  responsibility of management and will be tackled
  and followed up in a systematic and planned
  manner this applies to every part of our
  organization.
• In order to involve everyone in the organization
  of quality improvement, management will enable
  all employees to participate in the preparation,
  implementation and evaluation of improvement
  activities.
• Quality improvement will be a continuous process
  and widespread attention will be given to
  education, training and skills development
  activities, which will be assessed with regard to
  their contribution to the quality policy.
• Publicity will be given to the quality policy in
  every part of the organization so that everyone
  may understand it all available methods and
  media will be used for its internal and external
  promotion and communication.
• Reporting on the progress of the implementation
  of the policy will

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Creating or changing the culture

• Culture in any business may be de?ned then as
  how business is conducted and how employees
  behave and are treated
• The culture within an organization is formed by a
  number of components
• Behaviors based on people interactions.
• Norms resulting from working groups.
• Dominant values adopted by the organization.
• Rules of the game for getting on.
• The climate in the organization.

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Figure 3.1Quality policy example 2
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Creating or changing the culture

• The effectiveness of an organization depends on
  the extent to which people perform their roles
  and move towards the common goals and objectives.
• The guiding philosophy drives the organization
  and is shaped by the leaders through their
  thoughts and actions
• The core values and beliefs represent the
  organizations basic principles about what is
  important in business, its conduct, its social
  responsibility and its response to changes in the
  environment.
• TQM is concerned with moving the focus of control
  from the outside to the inside of individuals, so
  that everyone is accountable for his/her own
  performance.
• Figure 3.2
• Vision framework
• for an organization

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Creating or changing the culture

• The mission will translate the abstractness of
  philosophy into tangible goals that will move the
  organization forward and make it perform to its
  optimum
• Two examples of how leaders of organizations
  one in the private sector and one in the public
  sector develop their vision, mission and values
  and are role models of a culture of total quality
  excellence are given in Figure 3.3.
• Public Sector
•  
• The purpose and direction of the organisation
  the Mission is developed by a Task Team.
  Senior, middle and junior managers review and
  update the Mission, Vision and Values annually to
  ensure it supports Policy and Strategy.
•  
• Leaders invite input from stakeholders via the
  Employee Involvement initiative, Monthly Update
  Meetings and Customer Service Seminars. The
  Values have been placed on help-cards for every
  employee and are continually
• re-emphasized at Monthly Update Meetings.
•  
• Leaders act as role models and have a list of
  Role Model Standards to follow, which they are
  measured against in their Performance Management
  System. All managers include TQM objectives in
  their Performance Agreements and Personal
  Development Plan, which are reviewed through

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Creating or changing the culture

• Private Sector
•  
• To enable the company to set direction and
  achieve its Vision, the senior management team
  address priorities for improvement. These are
  driven by a business improvement process, which
  consists of articulate a Vision, determine the
  actions to realize the Vision, define measures
  and set targets, then implement a rigorous review
  mechanism.
•  
• Each member of the team takes responsibility for
  one of the Excellence Model criteria. They
  develop improvement plans and personally ensure
  that these are properly resourced and
  implemented, and that progress is monitored.
• Improvements identified at local level are
  prioritized and resourced by local management
  against the organisations annual business plan

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Control

• The effectiveness of an organization and its
  people depends on the extent to which each person
  and function/department perform their role and
  move towards the common goals and objectives.
• Control is the process by which information or
  feedback is provided so as to keep all functions
  on track. It is the sum total of the activities
  that increase the probability of the planned
  results being achieved.
• Control mechanisms fall into three categories,
  depending upon their position in the managerial
  process (see Table 3.1). Three stages of control
  mechanisms

Before the fact Operational After the fact
Strategic plan Observation Annual reports
Action plans Inspection and correction Variance reports
Budgets Progress review Audits
Job descriptions Staff meetings Surveys
Individual performance objectives Internal information and data systems Performance review
Training and development Training programmes Evaluation of training
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Control

• Attempting to control performance through
  systems, procedures or techniques external to the
  individual is not an effective approach, since it
  relies on controlling others individuals
  should be responsible for their own actions
• An externally based control system can result in
  a high degree of concentrated effort in a speci?c
  area if the system is overly structured, but it
  can also cause negative consequences to surface
• Since all rewards are based on external measures,
  which are imposed, the team members often focus
  all their effort on the measure itself, e.g. to
  have it set lower (or higher) than possible, to
  manipulate the information which serves to
  monitor it, or to dismiss it as someone elses
  goal not theirs. In the budgeting process, for
  example, distorted ?gures are often submitted by
  those who have learned that their honest
  projections will be automatically altered
  anyway.
• When the rewards are dependent on only one or two
  limited targets, all efforts are directed at
  those, even at the expense of others. If
  short-term pro?tability is the sole criterion for
  bonus distribution or promotion, it is likely
  that investment for longer-term growth areas will
  be substantially reduced. Similarly, strong
  emphasis and reward for output or production may
  result in lowered quality.
• The fear of not being rewarded, or even being
  criticized, for performance that is less than
  desirable may cause some to withhold information
  that is unfavourable but nevertheless should be
  ?owing into the system.
• When reward and punishment are used to motivate
  performance, the degree of risk-taking may lessen
  and be replaced by a more cautious and
  conservative approach. In essence, the fear of
  failure replaces the desire to achieve.

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Control

• The following problem situations have been
  observed by the author and his colleagues within
  companies that have taken part in research and
  consultancy
• The goals imposed are seen or known to be
  unrealistic. If the goals perceived by the
  subordinate are in fact accomplished, then the
  subordinate has proved himself wrong. This
  clearly has a negative effect on the effort
  expended, since few people are motivated to prove
  themselves wrong!
• Where individuals are stimulated to commit
  themselves to a goal and where their personal
  pride and self-esteem are at stake, then the
  level of motivation is at a peak. For most people
  the toughest critic and the hardest taskmaster
  they confront is not their immediate boss but
  themselves.
• Directors and managers are often afraid of
  allowing subordinates to set the goals for fear
  of them being set too low, or loss of control
  over subordinate behaviour. It is also true that
  many do not wish to set their own targets, but
  prefer to be told what is to be accomplished.
• Where external project managers are recruited to
  run projects and a reward is negotiated on the
  basis of a bonus package re?ecting time and cost
  performance, all too often the company is left
  with the legacy of quality defects long after the
  project manager has ?nished his assignment and
  pocketed his/her bonuses.
• Some public sector client organizations, in
  moving towards the delivery of infrastructure
  projects through alliances, have developed very
  complex performance frameworks to attempt to
  drive project outcomes in non-cost areas such as
  safety, quality, community and legacy. The
  complexity of these can be such that the
  performance measures become an end in themselves
  and get in the way of management initiative.

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Control

1. TQM is concerned with moving the focus of control
   from outside the individual to within, the
   objective being to make everyone accountable for
   their own performance
2. Total Quality Management is user-driven it
   cannot be imposed from outside the organization,
   as perhaps can a quality management system
   standard

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 Effective leadership

• Some management teams have broken away from the
  traditional style of management they have made a
  managerial breakthrough. Their approach puts
  their organization head and shoulders above
  others in the ?ght for sales, pro?ts, resources,
  funding and jobs.
• Effective leadership starts with the chief
  executives vision and develops into a strategy
  for implementation.
• Top management should develop the following for
  effective leadership clear beliefs and
  objectives in the form of a vision clear and
  effective strategies and supporting plans the
  critical success factors and core processes the
  appropriate management structure employee
  participation through empowerment and the EPDCA
  helix the challenge is to achieve shared goals
  and common action across the supply chain
  Quality in the 21st Century.

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The ?ve requirements for effective leadership
are the following

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•  
• Developing and publishing clear documented
  corporate beliefs and purpose a vision
• Executives should express values and beliefs
  through a clear vision of what they want their
  company to be and its purpose
• The beliefs and objectives should address
• The de?nition of the business, e.g. the needs
  that are satis?ed or the bene?ts provided.
• A commitment to effective leadership and quality.
• Target sectors and relationships with customers,
  and market or service position.
• The role or contribution of the company,
  organization or unit, e.g. pro?t- generator,
  service department, opportunity-seeker.
• The distinctive competence a brief statement
  which applies only to that organization, company
  or unit.
• Indications for future direction a brief
  statement of the principal plans which would be
  considered.
• Commitment to monitoring performance against
  customers needs and expectations, and continuous
  improvement.

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•  2.Develop clear and effective strategies and
  supporting plans for achieving the vision
•  
• 3.Identify the critical success factors and
  critical processes (Figure 3.4) Mission into
  action through strategies, CSFs and core
  processes

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• 4.Review the management structure
• 5. Empowerment encouraging effective employee
  participation

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Attitudes

• The key attitude for managing any winning company
  or organization may be expressed as follows I
  will personally understand who my customers are
  and what are their needs and expectations and I
  will take whatever action is necessary to satisfy
  them fully. I will also understand and
  communicate my requirements to my suppliers,
  inform them of changes and provide feedback on
  their performance. This attitude should start at
  the top with the chairman or chief executive.
  It must then percolate down, to be adopted by
  each and every employee. That will happen only if
  managers lead by example. Words are cheap and
  will be meaningless if employees see from
  managers actions that they do not actually
  believe or intend what they say.

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Abilities

• Every employee should be able to do what is
  needed and expected of him or her, but it is ?rst
  necessary to decide what is really needed and
  expected. If it is not clear what the employees
  or subcontractors are required to do and what
  standards of performance are expected, how can
  managers expect them to do it? A good example of
  such confusion has been created on construction
  projects over the past few decades. Management
  has repeatedly said that they want the job done
  quickly, but rarely have they stressed that it
  should be correct the ?rst time. This has
  resulted in a culture of we can ?x it later,
  lets just get on with the job and numerous
  defects have been incorporated into buildings
  defects that are more expensive to rectify later.
• Train, train, train and train again. Training is
  very important, but it can be expensive if the
  money is not spent wisely. The training should be
  related to needs, expectations and process
  improvement. It must be planned and always its
  effectiveness reviewed.

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Participation

• If all employees are to participate in making the
  company or organization successful (directors and
  managers included), then they must also be
  trained in the basics of disciplined management.
• They must be trained to
• E Evaluate the situation and de?ne their
  objectives
• P Plan to achieve those objectives
  fully.
• D Do implement the plans.
• C Check that the objectives are being
  achieved.
• A Amend take corrective action if they are
  not
• The word disciplined applied to people at all
  levels means that they will do what they say they
  will do
• This basic approach needs to be backed up with
  good management, planning techniques and
  problem-solving methods, which can be taught to
  anyone in a relatively short period of time
• The operations management has a very important
  and dif?cult leadership challenge to create a
  cohesive team and galvanize it towards a set of
  shared goals.

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Quality in the 21st century
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Excellence in leadership

• The vehicle for achieving excellence in
  leadership is TQM. Using the construct of the
  Oakland TQM Model, the four Ps and four Cs
  provide a framework for this Planning,
  Performance, Processes, People, Customers,
  Commitment, Culture and Communications.
•  The vehicle for achieving excellence in
  leadership is Total Quality Management. We have
  seen that its framework covers the entire
  organization, all the people and all the
  functions, including external organization and
  suppliers. Several requirements of TQM are
  becoming clear
• Recognizing customers and discovering their needs
  (this refers to immediate and end user customers
  equally).
• Setting standards that are consistent with
  internal and end user customer requirements.
• Controlling processes, including systems, and
  improving their capability.
• Managements responsibility for setting the
  guiding philosophy, vision, quality policy, etc.,
  and providing motivation through leadership and
  equipping people to achieve quality.
• Selecting the right employees and supply chain
  partners and empowering people at all levels in
  the organization and across the supply chain to
  act for quality improvement.
•  
•  

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Excellence in leadership

• All prizes orgnizations gurus each set down a
  number of points or absolutes
• words of wisdom in management and leadership
  and many organizations have used these to
  establish a policy based on quality.
•  
•