Cultures & Commitment Imran Hussain

TQM Core Customer/Supplier Chain Inputs Process Outputs

TQM Inner Band Teams Tools Systems

TQM Outer Band Communication Commitment Culture

Customer involvement Customer feedback Process improvement

The fundamental requirement for making total quality work is COMMITMENT

Any attempt to adopt a quality system will fail without the wholehearted support of the entire organization

It all starts with a change of ATTITUDE

Wait a minute ……. What about the VISION

Integrating TQM 1. Mission statement 2. Strategies and plans 3. Critical success factors and key processes 4. Reviewing the management structure 5. Empowerment and participation Managing communication Managing communication Managing attitudes Managing attitudes Managing abilities Managing abilities Managing participation Managing participation

Culture The culture of an organization is made up of the shared beliefs about how business is conducted, how employees are treated and how they behave. The culture of an organization is made up of the shared beliefs about how business is conducted, how employees are treated and how they behave.

Organizational Cultures 1. Corporate Culture 2. Task Culture (Charles Handy) 3. Person Culture (Charles Handy) 4. Role Culture (Charles Handy) 5. Power Culture (Charles Handy) 6. Balanced Culture (Gordon F. Gatiss) 7. Shared Culture (Gordon F. Gatiss) 8. Mature Culture (Gordon F. Gatiss)

Corporate Culture Formal Formal Mission and vision statements, policies, procedures Mission and vision statements, policies, procedures Informal Informal Senior management involvement Senior management involvement Leadership by example in customer service Leadership by example in customer service Consistency in customer-care policies Consistency in customer-care policies Commitment of middle management Commitment of middle management Reward and recognition systems Reward and recognition systems

Task Culture Maximum concern for production Maximum concern for production Concern for results primary Concern for results primary Conflict, antagonism, competition, criticism Conflict, antagonism, competition, criticism No consultation No consultation Goals and jobs set from above Goals and jobs set from above Feedback in form of criticism Feedback in form of criticism Low morale Low morale Customers seen as problem rather opportunity Customers seen as problem rather opportunity

Person Culture Maximum concern for people Maximum concern for people Primary concern is fostering good feelings, rewards and benefits, working conditions Primary concern is fostering good feelings, rewards and benefits, working conditions Goals geared towards personal harmony Goals geared towards personal harmony Jobs set on basis of personal preferences Jobs set on basis of personal preferences Feedback is positive Feedback is positive Morale is high – comes from team members being nice to one another Morale is high – comes from team members being nice to one another

Role Culture Focused on either results or people Focused on either results or people Strong control – rewards for compliance, criticism for non-compliance Strong control – rewards for compliance, criticism for non-compliance Goals set by boss – people expected to comply Goals set by boss – people expected to comply Feedback viewed as negative Feedback viewed as negative Morale high during periods of success Morale high during periods of success Customer service depends on circumstances Customer service depends on circumstances

Power Culture Motives driven by self rather than organization Motives driven by self rather than organization Team’s goals are extensions of personal goals Team’s goals are extensions of personal goals Everything is determined by politics Everything is determined by politics Assignments given to others to enhance one’s own standing Assignments given to others to enhance one’s own standing Morale and cohesion goes up and down Morale and cohesion goes up and down Politically motivated environment Politically motivated environment Departments/individuals compete/cooperate for power Departments/individuals compete/cooperate for power Customer service is secondary Customer service is secondary

Balanced Culture Average concern for people and production Average concern for people and production Team members conform to rules to minimize conflict Team members conform to rules to minimize conflict Disagreements dealt with compromise not confrontation Disagreements dealt with compromise not confrontation Goals will be short term, no strategic planning Goals will be short term, no strategic planning Progress measured in terms of what has been, not what could be Progress measured in terms of what has been, not what could be Assignments shared. Feedback superficial. Assignments shared. Feedback superficial. Who you know is important, not what you know. Who you know is important, not what you know. No pro-activeness towards customers No pro-activeness towards customers

Shared Culture Minimum concern for production and people Minimum concern for production and people Survival is the name of the game. Compliance with orders. Self protection. Individuality. Survival is the name of the game. Compliance with orders. Self protection. Individuality. Goals rarely discussed. Direction comes from outside the team Goals rarely discussed. Direction comes from outside the team Standards established through accident. Standards established through accident. Assignments reflect availability rather than competence. Assignments reflect availability rather than competence. Feedback minimal. Shortcomings and problems ignored. Feedback minimal. Shortcomings and problems ignored. Reactive organization to customer feedback. Reactive organization to customer feedback.

Factors in an Organizational Culture 1. Styles of decision-making 2. Objectives 3. Competitive advantage 4. Organizational structure 5. Management systems 6. Management of people 7. Functional strategies and policy 8. Information systems

Continuous Improvement (PDCA) Plan Plan Do Do Check Check Action Action

PDCA A well known model for CPI is the Plan-Do- Check-Act (PDCA) cycle, also referred to as the A well known model for CPI is the Plan-Do- Check-Act (PDCA) cycle, also referred to as the Deming cycle Deming cycle PDSA cycle (“S” stands for “study”) Mostly used interchangeably with PDCA. “S” was introduced by Deming to emphasize the role of learning in process improvement PDSA cycle (“S” stands for “study”) Mostly used interchangeably with PDCA. “S” was introduced by Deming to emphasize the role of learning in process improvement Shewhart cycle- Shewhart discussed the concept in his book “statistical method from the view of quality control” Shewhart cycle- Shewhart discussed the concept in his book “statistical method from the view of quality control”

The PDCA cycle teaches that organizations should: The PDCA cycle teaches that organizations should: PLAN an action PLAN an action DO it DO it CHECK to see how it conforms to the plan CHECK to see how it conforms to the plan ACT on what has been learned ACT on what has been learned The most common representation is a circular design to emphasize that CPI has not end The most common representation is a circular design to emphasize that CPI has not end To satisfy customers, the four stages should rotate continuously, with quality as the top criterion To satisfy customers, the four stages should rotate continuously, with quality as the top criterion

Plan Plan What to do What to do How to accomplish it How to accomplish it Do Do Carry out the plan Carry out the plan Check Check See if the desired results were obtained See if the desired results were obtained Act Act Analyze reason for not making desired results (if any) Analyze reason for not making desired results (if any) Determine what changes to make to better achieve desired results Determine what changes to make to better achieve desired results Standardize if desired results achieved Standardize if desired results achieved

TQM Foundations – Points for Senior Management 1. Long term commitment 2. Philosophy of zero errors 3. Understand customer/supplier relationships 4. Look at total cost 5. Manage system improvement 6. Eliminate departmental barriers 7. Eliminate fear 8. No arbitrary goals, no barriers to workmanship pride, no standards based on just numbers 9. Train, train, train. 10. Implement TQM systematically

References Total Quality Management: A Total Quality Approach, by Gordon F. Gatiss (Ch. 6) Total Quality Management: A Total Quality Approach, by Gordon F. Gatiss (Ch. 6)