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
organizations 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 aciton
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
Value congruence refers to the homogeneity between individual and
organizational values. The similarity decoded is in connection to the
notion of person culture fit. Value congruence always tends to bring
significant and positive outcomes to organizational behavior.
Dale Crownover, President, Texas Nameplate Co.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
7
Leading Practices - Leadership
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
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
8
Leadership Theories
Trait approach
Behavioral approach
Contingency (situational) approach
Role approach
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
9
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
10
Zenger-Miller
Leadership Competencies

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
11
Zenger-Miller Leadership Competencies

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
12
Leadership System
Refers to 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
Common Organizational Structure
Customers
Customer
team
Customer
team
Customer
team
Systems and support services
Executive steering committee
CEO
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
14
Leadership and Public
Responsibilities
Ethics
Health, safety, and environment
Community support
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
15
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
organizations 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
16
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
17
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
18
Strategic Planning Process
Mission Vision Guiding 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
19
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
20
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
Solectron: Be the best and continuously
improve
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
21
Policy Deployment

Hoshin kanri (direction management (Japanese:
Hepburn: hshin kanri
?
)) is a method devised to capture and
cement strategic goals as well as flashes of insight about the future
and develop the means to bring these into reality.
Also called policy deployment, hoshin planning, or
simply hoshin (as in "FY12 Hoshin"), it is a strategic
planning/strategic management methodology based on a concept
popularized in Japan in the late 1950s by Professor Yogi Akao.
"Each person is the expert in his or her own job, and Japanese TQC
[Total Quality Control] is designed to use the collective thinking
power of all employees to make their organization the best in its
field."
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
22
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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
23
Policy Deployment
(Hoshin Kanri)

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM
24
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
25
Leadership in the Baldrige Criteria
The Leadership Category examines how an organizations
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.
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
26
Strategic Planning
in the Baldrige Criteria
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.
2.1 Strategy Development
a. Strategy Development Process
b. Strategic Objectives
2.2 Strategy Deployment
a. Action Plan Development and Deployment
b. Performance Projection