Leadership for Leadership for Quality ImprovementQuality Improvement

Assoc. Prof. Dr. Jegak UliAssoc. Prof. Dr. Jegak Uli

IntroductionIntroduction

► The intention of this unit is to discuss The intention of this unit is to discuss leadership as it applies to the understanding leadership as it applies to the understanding & implementation of quality improvement.& implementation of quality improvement.

► In this regards, leadership has specific In this regards, leadership has specific implications for the senior managers implications for the senior managers embarking on a quality journey.embarking on a quality journey.

► This unit describes these implications and This unit describes these implications and suggestions actions that senior managers suggestions actions that senior managers can take to enhance the likelihood of can take to enhance the likelihood of success.success.

The relationship among these actions is shown The relationship among these actions is shown graphically in Figure1graphically in Figure1

Values

Policy

Methodology

StyleCommitment

Objectives

Goal

Mission

Defines how we will behaveby delineating shared beliefs

Statement of principles thatguide how all business activitiesare to function

How objectives will beacheived through strategy and plans

Role model - howwe will behave

Allocate resources consistent with leadershipframework

What is to be acheived in scheduled period of time

What is to beacheived throughsustained effortover long timeperiod

The purpose or reason for the existence of the business

Specific Intent

Broad Intent

Foundation(Direction)

Implement(Actions)

VisionWhat we will look like in succesful

future state

Doing the Right Things(What to do)

Doing Things Right(How to Do It)

What is Leadership for Quality What is Leadership for Quality improvement?improvement?

►When implementing quality improvement When implementing quality improvement program, several fundamental activities must be program, several fundamental activities must be accomplished by the senior management team. accomplished by the senior management team.

► These senior managers bear ultimate These senior managers bear ultimate responsibility for the success of the organization responsibility for the success of the organization and, by virtue of their positions, have the and, by virtue of their positions, have the authority to set direction, establish policy, authority to set direction, establish policy, allocate resources, and select the markets in allocate resources, and select the markets in which the firm will participate.which the firm will participate.

► These individuals are responsible to their These individuals are responsible to their customers, their employees, and ultimately their customers, their employees, and ultimately their shareholders for the success of the enterprise.shareholders for the success of the enterprise.

Quality Management SkillsQuality Management Skills

►Quality management requires skills in both Quality management requires skills in both leadership and management.leadership and management.

► The difference between these two skills The difference between these two skills sets is stated succinctly by Warren Bennis:sets is stated succinctly by Warren Bennis:

“Leaders are people who do the right “Leaders are people who do the right things, managers are people who do things, managers are people who do things right ….many are under-led and things right ….many are under-led and over-managed. They do not pay enough over-managed. They do not pay enough attention to doing the right things, while attention to doing the right things, while paying too much attention to doing things paying too much attention to doing things right.”right.”

Distinction between Distinction between Management & LeadershipManagement & Leadership

Managing Leading

PlanOrganize

DirectCoordinate

Control

VisionAlign

EmpowerCoachCare

GETTING RESULTS IMPROVING SYSTEMS

Managing and LeadingManaging and Leading

►To implement QI, managing to get To implement QI, managing to get results will share center stage with results will share center stage with leading to improve systems.leading to improve systems.

►The old roles of planning, organizing, The old roles of planning, organizing, directing, coordinating, and controlling directing, coordinating, and controlling will be diminished.will be diminished.

► In their place, we will find leaders who In their place, we will find leaders who vision, align, empower, coach, and vision, align, empower, coach, and care.care.

Managing and LeadingManaging and Leading

►CI of all products, services and CI of all products, services and processes is accelerated if everyone processes is accelerated if everyone challenges the status quo every day.challenges the status quo every day.

►Leader can set the stage for this Leader can set the stage for this challenge by developing answers to challenge by developing answers to six fundamental questions:six fundamental questions:

Six Fundamental Questions:Six Fundamental Questions:

►1. Why do we exist; what is our 1. Why do we exist; what is our purpose (mission)purpose (mission)

►2. What will we look like in the future? 2. What will we look like in the future? What do we want to become? (vision)What do we want to become? (vision)

►3. What do we believe in, and what do 3. What do we believe in, and what do we want everyone to abide by?we want everyone to abide by?

Six Fundamental Questions:Six Fundamental Questions:

► 4. What guidance will we provide to many 4. What guidance will we provide to many individuals in our organization as how they individuals in our organization as how they should provide product and services to our should provide product and services to our customers? (policy)customers? (policy)

► 5. What are the long- and short-term 5. What are the long- and short-term accomplishments that will enable us to fulfill accomplishments that will enable us to fulfill our mission and attain our visions? (goals our mission and attain our visions? (goals and objectives)and objectives)

► 6. How are we going to move toward our 6. How are we going to move toward our vision and accomplish our goals and vision and accomplish our goals and objectives? (methodology)objectives? (methodology)

Leadership FrameworkLeadership Framework

►Answers to the first three of these questions Answers to the first three of these questions form the cornerstones of the leadership form the cornerstones of the leadership framework.framework.

► The mission defines why the organization exists.The mission defines why the organization exists.► The visions show what the organization wants to The visions show what the organization wants to

create, and the core values explain how we create, and the core values explain how we want to actwant to act

► The answers to the remaining three questions The answers to the remaining three questions fill in the details and build on these fill in the details and build on these cornerstones.cornerstones.

Why Do We Exist? Why Do We Exist?

►The question of why we exist is answered The question of why we exist is answered in the organization's mission statement. in the organization's mission statement.

►This statement is comprehensive, easy to This statement is comprehensive, easy to understand, usually one paragraph in understand, usually one paragraph in length, and describes why an length, and describes why an organization was created and its primary organization was created and its primary function. function.

►The mission provides a clear statement The mission provides a clear statement of purpose to all employees as they of purpose to all employees as they perform their daily tasks. perform their daily tasks.

Examples of MissionExamples of Mission

Ford Motor Company Mission:Ford Motor Company Mission:►Our mission is to improve continually Our mission is to improve continually

our products and services to meet our our products and services to meet our customer's needs, allowing us to customer's needs, allowing us to prosper as a business and to provide a prosper as a business and to provide a reasonable return to our shareholders, reasonable return to our shareholders, the owners of our business. the owners of our business.

More Example of MissionMore Example of Mission

Imperial Oil, Ltd.:Imperial Oil, Ltd.:►[Imperial Oil] is a responsible and [Imperial Oil] is a responsible and

efficient developer of the country's efficient developer of the country's natural resources and supplies a wide natural resources and supplies a wide range of quality products and services, range of quality products and services, primarily under the ESSO brand. primarily under the ESSO brand.

More Example of MissionMore Example of Mission

Canadian National Railways Mission:Canadian National Railways Mission:

►To meet customers' transportation and To meet customers' transportation and distribution needs by being the best at distribution needs by being the best at moving their goods on time, safely, moving their goods on time, safely, and damage-free. and damage-free.

A Well-articulated mission A Well-articulated mission statementstatement► These statements, when published and These statements, when published and

disseminated to employees throughout the disseminated to employees throughout the organization and widely communicated to organization and widely communicated to customers and the public at large, commit customers and the public at large, commit an organization internally and externally to an organization internally and externally to a specific purpose. a specific purpose.

► A well-articulated mission statement also A well-articulated mission statement also guides employees as to how they should guides employees as to how they should manage their activities and sets a level of manage their activities and sets a level of expectation among customers as to what expectation among customers as to what they should get from this organization. they should get from this organization.

What Type of Organization Do What Type of Organization Do We Want to Become? We Want to Become? ► The vision provides a description of what the The vision provides a description of what the

organization will evolve into in the future organization will evolve into in the future and, like the mission statement, provides and, like the mission statement, provides continuous guidance to employees at every continuous guidance to employees at every level as to how they should manage their level as to how they should manage their respective responsibilities. respective responsibilities.

► Usually, the vision is drafted as soon as the Usually, the vision is drafted as soon as the mission statement is completed and is mission statement is completed and is developed through the same collaborative developed through the same collaborative process. process.

The VisionThe Vision

► The vision need not be described in precise The vision need not be described in precise financial or market terms. financial or market terms.

► Rather, the intent is to provide a broad description Rather, the intent is to provide a broad description of what an organization can become if everyone's of what an organization can become if everyone's efforts are focused and successful. efforts are focused and successful.

► The vision is less a dream, less a soft expectation of The vision is less a dream, less a soft expectation of what is desirable, than a realistic picture of what is what is desirable, than a realistic picture of what is possible. possible.

► The vision states what the organization wants to The vision states what the organization wants to become and where it wants to go. become and where it wants to go.

► This direction may be based on data regarding what This direction may be based on data regarding what is being achieved by others and what is possible for is being achieved by others and what is possible for this organization. this organization.

Fatal flaw of a visionFatal flaw of a vision

►Any of three flaws can be fatal to the Any of three flaws can be fatal to the process for building an inspirational process for building an inspirational vision:vision: (1) failure to have a genuine vision-one (1) failure to have a genuine vision-one

that is important, challenging, and at the that is important, challenging, and at the same time realistic; same time realistic;

(2) failure to communicate the vision; (2) failure to communicate the vision; (3) failure to rally everyone's genuine (3) failure to rally everyone's genuine

support. support.

Tom Peters urges:Tom Peters urges:

►““Develop and live an enabling and Develop and live an enabling and empowering vision. empowering vision.

►Ensure that the vision is at once Ensure that the vision is at once (1) specific enough to act as a 'tie (1) specific enough to act as a 'tie

breaker' (e.g., quality is more important. breaker' (e.g., quality is more important. than volume) and than volume) and

(2) general enough to leave room for the (2) general enough to leave room for the taking of bold initiatives in today's ever- taking of bold initiatives in today's ever- changing environment.” changing environment.”

Develop an Enabling and Develop an Enabling and Empowering VisionEmpowering Vision ►1. Effective visions are inspiring. 1. Effective visions are inspiring. ►2. Effective visions are clear and 2. Effective visions are clear and

challenging-and involve excellence. challenging-and involve excellence. ►3. Effective visions make sense in the 3. Effective visions make sense in the

marketplace and, by stressing flexibility marketplace and, by stressing flexibility and execution, stand the test of time. and execution, stand the test of time.

►4. Effective visions must be stable but 4. Effective visions must be stable but constantly challenged-and changed at constantly challenged-and changed at the margin. the margin.

Develop an Enabling and Develop an Enabling and Empowering VisionEmpowering Vision

►5. Effective visions are beacons and 5. Effective visions are beacons and controls when all else is up for grabs. controls when all else is up for grabs.

►6. Effective visions are aimed at 6. Effective visions are aimed at empowering our own people first, empowering our own people first, customers second. customers second.

►7. Effective visions prepare for the 7. Effective visions prepare for the future but honor the past. future but honor the past.

►8. Effective visions are lived in details, 8. Effective visions are lived in details, not broad strokes. not broad strokes.

What's Important to Us? What's Important to Us?

►Every organization operates with some Every organization operates with some behaviors being understood without ever behaviors being understood without ever being explicitly stated. being explicitly stated.

►But why leave these things unstated if But why leave these things unstated if they are important to running the they are important to running the business? business?

►Why not provide clear definitions of those Why not provide clear definitions of those important things, so everyone has a clear important things, so everyone has a clear sense of the values of the organization? sense of the values of the organization?

Shared ValuesShared Values

► But be careful. But be careful. ► State your true shared values, not a set of State your true shared values, not a set of

ideals that look good on posters and wallet-ideals that look good on posters and wallet-size laminated cards. size laminated cards.

► In fact, if stated values are inconsistent with In fact, if stated values are inconsistent with realities, their posting will be a hindrance realities, their posting will be a hindrance and will reveal the hypocrisy of the and will reveal the hypocrisy of the leadership team. leadership team.

► Values cannot merely be proclaimed; they Values cannot merely be proclaimed; they need to be lived convincingly. need to be lived convincingly.

The following is an example of a The following is an example of a credible set of corporate values: credible set of corporate values: ► People:People: Our people are the source of our strength. Our people are the source of our strength.

They provide our corporate intelligence and determine They provide our corporate intelligence and determine our reputation and vitality . Involvement and teamwork our reputation and vitality . Involvement and teamwork are our core human values. are our core human values.

► Products:Products: Our products are the end result of our Our products are the end result of our efforts, and they should be the best in serving efforts, and they should be the best in serving customers worldwide. As our products are viewed, so customers worldwide. As our products are viewed, so are we viewed.are we viewed.

► Profits:Profits: Profits are the ultimate measure of how Profits are the ultimate measure of how

efficiently we provide customers with the best products efficiently we provide customers with the best products for their needs. Profits are required to survive and grow. for their needs. Profits are required to survive and grow.

(Ford Motor Company)(Ford Motor Company)

How Do We Want Everyone to How Do We Want Everyone to Work? Work? ►Organizations consist of many different Organizations consist of many different

individuals with many different opinions. individuals with many different opinions. ►The "quality level" for the production The "quality level" for the production

and delivery of goods and services and delivery of goods and services should not be left for everyone to should not be left for everyone to determine individually. determine individually.

► Instead, provide a written quality policy Instead, provide a written quality policy and consider the elements listed and in and consider the elements listed and in the following example policy the following example policy

Elements of Quality Policy Elements of Quality Policy

Element Element Example Statement Example Statement 1.1. Importance of quality Importance of quality Quality is first among Quality is first among

equalsequals2.2. Quality competitiveness Quality competitiveness Best in class Best in class 3.3. Customer relations Customer relations Meet customer's needs Meet customer's needs 4.4. Internal customers Internal customers Quality extends to all Quality extends to all

segments segments 5.5. Work force involvement Work force involvement Our policy is to provide 40 Our policy is to provide 40

hours hours of quality training of quality training annually to annually to every employee every employee

6.6. Quality improvement Quality improvement We will continuously We will continuously improve improve our services our services

What Do We Have to Do? What Do We Have to Do?

► Leaders must next move from the broad Leaders must next move from the broad direction provided by mission, vision, value, direction provided by mission, vision, value, and policy statements to declare what must and policy statements to declare what must actually be accomplished. actually be accomplished.

► Unless these statements are translated into Unless these statements are translated into measurable performance targets, they will measurable performance targets, they will be little more than nice sets of words. be little more than nice sets of words.

►Goals cover the organization's broad intent Goals cover the organization's broad intent by defining what is to be attained through by defining what is to be attained through sustained effort over the long term. sustained effort over the long term.

► By contrast, objectives define what is to be By contrast, objectives define what is to be achieved in a specified period of time. achieved in a specified period of time.

The following are example goals for one The following are example goals for one company-Florida Power & Light Companycompany-Florida Power & Light Company

► Consider how these goals contribute toward that Consider how these goals contribute toward that vision, how progress toward the goals might be vision, how progress toward the goals might be measured, and how the goals might challenge the measured, and how the goals might challenge the organization. organization.

► 1. Improve customer satisfaction with sales and 1. Improve customer satisfaction with sales and service quality: service quality: a. by reducing customer complaints to be among the a. by reducing customer complaints to be among the

lowest in the electric utility industry, lowest in the electric utility industry, b. by having adequate capacity to meet the needs of b. by having adequate capacity to meet the needs of

existing and future customers, and existing and future customers, and c. by having service unavailability to be among the lowest c. by having service unavailability to be among the lowest

in the industry. in the industry.

The following are example goals for one The following are example goals for one company-Florida Power & Light company-Florida Power & Light CompanyCompany►2. Strengthen effectiveness in nuclear 2. Strengthen effectiveness in nuclear

plant operation and regulatory plant operation and regulatory performance: performance: a. by achieving nuclear plant availability to a. by achieving nuclear plant availability to

be among the highest in the industry , and be among the highest in the industry , and b. by improving nuclear safety through the b. by improving nuclear safety through the

achievement of reduced automatic plant achievement of reduced automatic plant shutdowns. ..to be among the lowest in the shutdowns. ..to be among the lowest in the industry . industry .

The following are example goals for one The following are example goals for one company-Florida Power & Light company-Florida Power & Light CompanyCompany►3. Improve utilization of resources to 3. Improve utilization of resources to

stabilize costs: stabilize costs: a. by improving quality , a. by improving quality , b. by maintaining stable and reasonable b. by maintaining stable and reasonable

prices, as compared to the CPI, while prices, as compared to the CPI, while maintaining a fair rate of return for maintaining a fair rate of return for stockholders, and stockholders, and

c. by securing the safety of our employees c. by securing the safety of our employees and community. and community.

Clear-cut, measurable Clear-cut, measurable objectivesobjectives►Clear-cut, measurable objectives help Clear-cut, measurable objectives help

spur everyone in the right direction spur everyone in the right direction and serve as mileposts against which and serve as mileposts against which progress can be gauged. progress can be gauged.

Five criteria (listed below) help Five criteria (listed below) help in framing effective objectives.in framing effective objectives.► In their book Strategy Formulation and In their book Strategy Formulation and

Implementation, A. A. Thompson and A. J . Implementation, A. A. Thompson and A. J . Strickland present example objective Strickland present example objective statements that illustrate use of these criteria statements that illustrate use of these criteria 1 Objectives should be definitive and specific. 1 Objectives should be definitive and specific. 2 Objectives should describe accomplishments or 2 Objectives should describe accomplishments or

results, not activities or behaviors. results, not activities or behaviors. 3 Objectives should be measurable (quantifiable). 3 Objectives should be measurable (quantifiable). 4 Objectives should delineate a time frame or 4 Objectives should delineate a time frame or

deadline. deadline. 5 Objectives should be challenging yet achievable 5 Objectives should be challenging yet achievable

(they should be within the control of the responsible (they should be within the control of the responsible business unit and not rely on what might be business unit and not rely on what might be accomplished by other organizations). accomplished by other organizations).

How Are We Going to How Are We Going to Accomplish These Objectives? Accomplish These Objectives? ►Having established what is to be Having established what is to be

achieved through a sustained effort achieved through a sustained effort over a specific period of time, the next over a specific period of time, the next step is to determine how these step is to determine how these objectives are to be achieved. objectives are to be achieved.

►This is accomplished through This is accomplished through development of strategies and plans development of strategies and plans for specific courses of action: who for specific courses of action: who does what by when. does what by when.

How Are We Going to How Are We Going to Accomplish These Objectives?Accomplish These Objectives?►One element of the strategy is the One element of the strategy is the

adoption of TQM as a comprehensive adoption of TQM as a comprehensive management system to achieve objectives management system to achieve objectives by assuring that all work is performed in a by assuring that all work is performed in a systematic, integrated, consistent manner. systematic, integrated, consistent manner.

►The installation of TQM becomes the work The installation of TQM becomes the work of senior management, and its pursuit of of senior management, and its pursuit of TQM is a prime example of its leadership. TQM is a prime example of its leadership.

How Do We Develop These How Do We Develop These Statements? Statements? ►Statements of mission, vision, values, Statements of mission, vision, values,

policy, and objectives developed policy, and objectives developed behind closed doors by a single behind closed doors by a single executive or by just a few top-level executive or by just a few top-level managers in isolation serve a useful managers in isolation serve a useful purpose but are limited in impact. purpose but are limited in impact.

► In this case, the key advantage of In this case, the key advantage of developing these statements is quickly developing these statements is quickly lost once the task is completed. lost once the task is completed.

How Do We Develop These How Do We Develop These Statements?Statements?► The advantage of securing ownership, The advantage of securing ownership,

commitment, and involvement will accrue to commitment, and involvement will accrue to organizations that use a collaborative organizations that use a collaborative process to forge these key statements. process to forge these key statements.

► Furthermore, the benefits will last for an Furthermore, the benefits will last for an extended period of time. extended period of time.

► A senior manager who either establishes a A senior manager who either establishes a new vision or reaffirms an existing mission new vision or reaffirms an existing mission by involving others in a participative manner by involving others in a participative manner garners ownership and commitment from all garners ownership and commitment from all those who were involved in the process. those who were involved in the process.

Other Elements of Leadership Other Elements of Leadership

►The last two elements of the The last two elements of the leadership framework cover leadership framework cover management's actions in day-to-day management's actions in day-to-day activities. activities. 1. Commitment: relates to what is done 1. Commitment: relates to what is done

by managers themselves and in the by managers themselves and in the allocation of resources. allocation of resources.

2. Style: relates to how they do things. 2. Style: relates to how they do things.

Commitment Commitment

►The demonstration of commitment The demonstration of commitment takes many forms and is evidenced by takes many forms and is evidenced by what managers do as well as by what what managers do as well as by what they say. they say.

CommitmentCommitment

► The first opportunity to demonstrate The first opportunity to demonstrate commitment (or reveal the lack of it) is often commitment (or reveal the lack of it) is often found in reallocating resources and funding found in reallocating resources and funding additional staff to implement the extensive additional staff to implement the extensive training that is required to equip all training that is required to equip all employees with the skills and knowledge employees with the skills and knowledge needed to pursue TQM. needed to pursue TQM.

►Will the resources be provided? Will the resources be provided? ►Will funds be made available from the Will funds be made available from the

redirection of traditional training programs? redirection of traditional training programs?

CommitmentCommitment

►Equally important are senior managers Equally important are senior managers willing to demonstrate commitment by willing to demonstrate commitment by participating in the same training that participating in the same training that everyone else will undertake? everyone else will undertake?

►Will senior managers use the tools, Will senior managers use the tools, jargon, and processes to pursue jargon, and processes to pursue continuous improvement? continuous improvement?

►Or will they merely instruct their Or will they merely instruct their subordinates to do it? subordinates to do it?

CommitmentCommitment

►Are senior managers willing to create Are senior managers willing to create structures to support TQM, such as structures to support TQM, such as boards and steering committees? boards and steering committees?

►And are they willing to participate in And are they willing to participate in these structures? these structures?

►Or are they going to delegate Or are they going to delegate (abdicate) this responsibility? (abdicate) this responsibility?

CommitmentCommitment

► Are senior managers capable of demonstrating Are senior managers capable of demonstrating long-term commitment to implement long-term commitment to implement continuous improvement, even when continuous improvement, even when improvement may be viewed as having high improvement may be viewed as having high start-up costs? start-up costs?

► Commitment means more than new Commitment means more than new procedures, policies, directives, letters, and procedures, policies, directives, letters, and speeches. speeches.

► Employees look for commitment from top Employees look for commitment from top management by observing their behaviors and management by observing their behaviors and their style. their style.

Style Style

► In addition to what you do, how you do In addition to what you do, how you do it is equally important. it is equally important.

Six leadership attributesSix leadership attributes

► 1 Leaders base decisions on data. Opinions are 1 Leaders base decisions on data. Opinions are interesting, but decisions should be based on what interesting, but decisions should be based on what you know, not what you think. you know, not what you think.

► 2 Leaders are resources, coaches, facilitators for 2 Leaders are resources, coaches, facilitators for the individuals with whom they work. Employees the individuals with whom they work. Employees who are looking to their leaders for direction, who are looking to their leaders for direction, decisions, or approvals don't understand your new decisions, or approvals don't understand your new role. Have you explained the difference? Is your role. Have you explained the difference? Is your style consistent with your intent? style consistent with your intent?

► 3 Leaders are actively involved. They learn new 3 Leaders are actively involved. They learn new skills along with their employees. Being proficient, skills along with their employees. Being proficient, leaders are then able to assist others in their leaders are then able to assist others in their pursuit of continuous improvement. pursuit of continuous improvement.

Six leadership attributesSix leadership attributes

► 4 Leaders build commitment. They assure 4 Leaders build commitment. They assure that everyone understands the that everyone understands the organization's mission, vision, values, and organization's mission, vision, values, and goals. Furthermore, goals. Furthermore,

► leaders assure that everyone knows his or leaders assure that everyone knows his or her individual role and is eager to contribute. her individual role and is eager to contribute.

► 5 Leaders inspire confidence. They extract 5 Leaders inspire confidence. They extract the best from everyone and encourage the best from everyone and encourage personal development. personal development.

► 6 Leaders say thanks. They do so with every 6 Leaders say thanks. They do so with every imaginable form of monetary and non-imaginable form of monetary and non-monetary incentive.monetary incentive.

Attributes of a Leader Attributes of a Leader

►Creates More Leaders Creates More Leaders ►Focuses on CustomersFocuses on Customers►Knows When to Coach and When to Judge Knows When to Coach and When to Judge ►Removes Obstacles to Joy of WorkRemoves Obstacles to Joy of Work►Understands Variation Understands Variation ►Works to Improve Systems to Creates Works to Improve Systems to Creates

Trust Trust ►Forgives Mistakes to Listens Forgives Mistakes to Listens ► Improves Continually His/Her Education Improves Continually His/Her Education

THE ENDTHE END

Thank YouThank You