© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Leading, Building, and Sustaining Performance Excellence

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Key Idea Building and sustaining performance excellence requires effective leadership, a commitment to change and long-term sustainability, the adoption of sound practices and implementation strategies, and continual organizational learning.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Leadership The ability to positively influence people and systems under one’s authority to have a meaningful impact and achieve important results 3

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Leadership in Deming’s 14 Points Point 1. Create and publish to all employees a statement of the aims and purposes of the company or other organization. The management must demonstrate constantly their commitment to this statement. Point 7. Teach and institute leadership. Point 12. Remove barriers that rob people of pride of workmanship. Point 14. Take action to accomplish the transformation. 4

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 The Baldrige “Leadership Triad” Leadership Strategic Planning Customer Focus Operations

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Leadership System Leadership system – how leadership is exercised, formally and informally, throughout an organization. These elements include how key decisions are made, communicated, and carried out at all levels. The leadership system includes structures and mechanisms for decision making, selection and development of leaders and managers, and reinforcement of values, directions, and performance expectations. It builds loyalties and teamwork based upon shared values, encourages initiative and risk taking, and subordinates organization to purpose and function. An effective leadership system also includes mechanisms for leaders’ self-examination and improvement. 6

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Governance Governance – the system of management and controls exercised in the stewardship of an organization. Approving strategic direction Monitoring and evaluating CEO performance Succession planning Financial auditing Executive compensation Disclosure Shareholder reporting 7

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Situational Leadership Theory Leadership styles might vary from one person to another, depending on the “readiness” of subordinates, which is characterized by their skills and abilities to perform the work, and their confidence, commitment, and motivation to do it. Four levels of follower maturity (readiness) and associated leadership styles: 1. Unable and unwilling – “directing” style 2. Unable but willing – “coaching” style 3. Able but unwilling – “supporting” style 4. Able and willing – “delegating” style 8

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Situational Leadership Styles Directing. In this style of leadership, managers define tasks and roles, and closely supervise work. Coaching. In this style, leaders set the overall approach and direction but work with subordinates and allow them to manage the details. Supporting. Here, leaders allocate tasks and set direction, but the subordinate has full control over the performance of the work. Delegating. In this style, subordinates can do their work with little supervision or support (minimal task- oriented behavior). 9

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementing ISO 9000 Establish a quality policy that identifies key objectives of products and services and basic procedures for quality assurance and control Provide appropriate resources Document requirements in a quality manual Keep the system up to date through internal audits Implementation of ISO 9000 requires the resources and support of top management, but the details fall mainly within the province of operating managers, supervisors, and employees to identify, develop, and document critical work processes. 10

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementing Baldrige Lessons learned by St. Luke’s Hospital Leadership drives and sustains the process Leadership at all levels is important More difficult to change the culture than to learn the tools Valuable team building experience Trust is extremely important There are no “quick fixes” Must always focus on the customer Should never be satisfied with the present level of quality Decisions must be driven by data and compared to “best” Employees make it happen! 11

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementing Six Sigma Committed leadership from top management. Integration with existing initiatives, business strategy, and performance measurement. Process thinking. Disciplined customer and market intelligence gathering. A bottom-line orientation. Leadership in the trenches. Training. Continuous reinforcement and rewards. 12

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Culture and Performance Excellence Culture is an organization’s value system and its collection of guiding principles Cultural values are often seen in mission and vision statements Culture is driven by leadership Culture is a powerful influence on behavior because it is shared widely and because it operates without being talked about, and indeed, often without being thought of. 13

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Key Idea Organizations contemplating change must answer some tough questions, such as, Why is the change necessary? What will it do to my organization (department, job)? What problems will I encounter in making the change? and perhaps the most important one—What’s in it for me?

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Barriers to Change Numerous barriers exist to successfully transform organizations to a sustained culture of performance excellence. Understanding these barriers can help significantly in managing change processes. Conflicting goals and priorities Lack of follow-through Lack of systems perspective Lack of alignment and integration 15

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Key Idea Alignment is defined as consistency of plans, processes, actions, information, decisions, results, analysis, and learning to support key organization-wide goals. Integration refers to the harmonization of plans, processes, information, resource decisions, actions, results, and analyses to support key organization-wide goals.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Building on Best Practices “Universal” best practices Cycle time analysis Process value analysis Process simplification Strategic planning Formal supplier certification programs Beyond these five, best practices depend on an organization’s current level of performance. That is, organizations must build their capability slowly and methodically. 17

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Self Assessment: Basic Elements Management involvement and leadership Product and process design Product control Customer and supplier communications Quality improvement Employee participation Education and training Quality information 18

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 Leveraging Self-Assessment Findings Prepare to be humbled Talk through the findings Recognize institutional influences Grind out the follow-up