THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 1 Chapter 5 Leadership and Strategic Planning

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 2 Leadership The ability to positively influence people and systems to have a meaningful impact and achieve results

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 3 Strategic Planning The process of envisioning an organization’s future and developing the necessary procedures and operations to achieve that future.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 4 The Baldrige “Leadership Triad” Leadership Strategic Planning Customer and Market Focus Operations

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 5 Executive Leadership Defining and communicating business directions Ensuring that goals and expectations are met Reviewing business performance and taking appropriate action Creating an enjoyable work environment Soliciting input and feedback from customers Ensuring that employees are effective contributors Motivating, inspiring, and energizing employees Recognizing employee contributions Providing honest feedback

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 6 Core Leadership Skills Vision Empowerment Intuition Self-understanding Value congruence Dale Crownover, President, Texas Nameplate Co.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 7 Leading Practices – Leadership (2 of 2) Create a customer-focused strategic vision and clear quality values Create and sustain leadership system and environment for empowerment, innovation, and organizational learning Set high expectations and demonstrate personal commitment and involvement in quality

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 8 Leading Practices – Leadership (1 of 2) Integrate quality values into daily leadership and management and communicate extensively Integrate public responsibilities and community support into business practices

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 9 Leadership Theories (1 of 2) Trait approach Behavioral approach Contingency (situational) approach Role approach

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 10 Leadership Theories (2 of 2) Emerging theories: –Attributional theory –Transactional theory –Transformational leadership theory –Substitutes for leadership theory –Emotional intelligence theory

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 11 Zenger-Miller Leadership Competencies Setting or sharing a vision Managing a change Focusing on the customer Dealing with individuals Supporting teams and groups Sharing information Solving problems, making decisions Managing business processes Managing projects Displaying technical skills Managing time and resources Taking responsibility Taking initiative beyond job requirements Handling emotions Displaying professional ethics Showing compassion Making credible presentations

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 12 Leadership System How decisions are made, communicated, and carried out at all levels Mechanisms for leadership development, self-examination, and improvement Effectiveness of leadership system depends in part on its organizational structure

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 13 Leadership and Public Responsibilities Ethics Health, safety, and environment Community support

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 14 Strategic Planning Formal strategy includes: Goals to be achieved Policies to guide or limit action Action sequences, or programs, that accomplish the goals “A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.” James Quinn

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 15 Tasks Accomplished by Strategic Planning Understand important customer and operational requirements Optimize use of resources and ensure bridging between short-term and longer-term requirements Ensure that quality initiatives are understood at all organizational levels Ensure that work organizations and structures will facilitate accomplishment of strategic plan

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 16 Leading Practices - Strategic Planning Active participation of top management, employees, customers, suppliers Systematic planning systems for strategy development and deployment, including measurement, feedback, and review Use of a variety of external and internal data Align short-term action plans with long-term strategic objectives, communicate them, and track progress

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 17 Strategic Planning Process MissionVisionGuiding Principles Environmental assessment Strategies Strategic Objectives Action Plans Broad statements of direction Capabilities and risks Things to change or improve Implementation Reason for existence Future intent Attitudes and policies

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 18 Mission Definition of products and services, markets, customer needs, and distinctive competencies Solectron: “…to provide worldwide responsiveness to our customers by offering the highest quality, lowest total cost, customized, integrated, design, supply chain, and manufacturing solutions through long- term partnerships based on integrity and ethical business practices.”

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 19 Vision Where the organization is headed and what it intends to be –Brief and memorable - grab attention –Inspiring and challenging - creates excitement –Descriptive of an ideal state - provides guidance –Appealing to all stakeholders - employees can identify with Must be consistent with the culture and values of the organization Solectron: “Be the best and continuously improve”

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 20 Policy Deployment (Hoshin Kanri) Top management vision leading to long-term objectives Deployment through annual objectives and action plans Negotiation for short-term objectives and resources (catchball) Periodic reviews See Figure 5.7!

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 21 The Seven Management and Planning Tools Affinity diagrams Interrelationship digraphs Tree diagrams Matrix diagrams Matrix data analysis Process decision program charts Arrow diagrams

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 22 Leadership in the Baldrige Criteria (1 of 2) The Leadership Category examines how an organization’s senior leaders address values, directions, and performance expectations, as well as a focus on customers and other stakeholders, empowerment, innovation, and learning. Also examined is how the organization addresses its responsibilities to the public and supports its key communities.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 23 Leadership in the Baldrige Criteria (2 of 2) 1.1 Organizational Leadership a. Senior Leadership Direction b. Organizational Performance Review 1.2 Public Responsibility and Citizenship a. Responsibilities to the Public b. Support of Key Communities

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 24 Strategic Planning in the Baldrige Criteria (1 of 2) The Strategic Planning Category examines how an organization develops strategic objectives and action plans. Also examined are how chosen strategic objectives and action plans are deployed and how progress is measured.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 25 Strategic Planning in the Baldrige Criteria (2 of 2) 2.1 Strategy Development a. Strategy Development Process b. Strategic Objectives 2.2 Strategy Deployment a. Action Plan Development and Deployment b. Performance Projection