Leadership

TEM-3601
By: Dr. Jawad Naeem

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Contents
i. Who are leaders ?
ii. Defining leadership
iii. Characteristics of quality leader
iv. 7 Habits of highly effective people
v. Deming’s philosophy
vi. Deming’s 14 points
vii. Role of TQM leaders
viii.TQM implementation
ix. Quality council
x. Vision statement
xi. Mission statement 2
Leadership

Who are leaders?

Someone who can influence
others and has some managerial
authority.
Leadership is the process of
influencing the people towards
the achievement of goal.

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Leadership

• A leader strengthens and inspires the followers to

accomplish the shared goals

• Leaders shape, promote and protect the organization’s

values (James MacGreger)

• Leaders and followers raise one another to higher levels

of motivation and morality (Burns)

• Someone who can take a group of people to a place

they don’t think they can go (Bob Eaton)

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Defining Leadership …

• Leadership is:
we, not me;
mission, not my show;
vision, not division; and
community, not domicile

• Note: It is difficult to define leadership, but the

successful leaders have some characteristics

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Leadership concept …

Understanding of human nature is necessary to

become a successful leader
• People need security and independence at the
same time
• People are sensitive to external rewards and
punishments
• People like to hear a word of praise
• People trust their gut feelings more than the
statistical data

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Characteristics of quality leaders …

1. Focus on customer needs, evaluation of their

changing requirements
2. Empowering the subordinates, rather than controlling
3. Improvement rather than maintenance
4. Prevention
5. Collaboration not competition
6. Train and coach rather than direct and supervise

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Characteristics of quality leaders …
7. Problems are learning opportunities
8. Continuously try to improve communication
9. Continuously demonstrate their commitment to
quality
10. Suppliers are chosen on the basis of quality not price
11. Organizational systems are established to support
the quality efforts
12. Encourage and recognize team efforts

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Characteristics of Quality leaders:

1. Focus on customer needs,

evaluation of their
changing requirements

They put themselves in

place of their customers and
service their needs.
They continually evaluate
customers changing
requirements.

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Characteristics of Quality leaders….
2. Empowering the subordinates,
rather than controlling

They empower rather than

control.
Have trust and confidence in the
performance of their
subordinates.
They provide resources, training
and work environment.

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Characteristics of Quality leaders….
3. Improvement rather than
maintenance

They emphasize improvement

rather than maintenance.
They use phrase:
If it isn’t perfect, improve it
rather than “if it ain’t broke,
then don’t fix it”.
There is always room for
improvement, even if it is small.

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Characteristics of Quality leaders….
4. Prevention

They emphasize prevention.

An ounce of prevention is
worth a pound of cure.
Preventive cure is better than
defective cure.

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Characteristics of Quality leaders….

5. Collaboration not
competition
They encourage
collaboration rather than
competition.
When functional areas,
departments or work
groups are in competition,
they may find subtle ways
working against each other.

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Characteristics of Quality leaders….
6. Train and coach rather than
direct and supervise

They train and coach rather

than supervise and direct.
They know that development
of human resource is the
necessity.
As coaches they help their
subordinates learn to do
better job.

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Characteristics of Quality leaders….

7. Problems are learning

opportunities

They learn from problems.

What is the cause.
How can we prevent it in
the future?
Are the questions asked
frequently by the leaders.
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Characteristics of Quality leaders….

8. Continuously try to
improve communication

They continually try to

improve communications.
They continually
disseminate information
about the TQM effort.
They encourage ideas
generated by people and act
on them
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Characteristics of Quality leaders….

9. Continuously
demonstrate their
commitment to quality

They continuously
demonstrate their
commitment to quality.
Their actions rather than
their words communicate
their level of commitment.

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Characteristics of Quality leaders….

10. Suppliers are chosen on the

basis of quality not price

They choose suppliers on basis

of quality, not price.
They encourage supplier to
participate and involved in TQM.
They know that quality begins
with quality materials .

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Characteristics of Quality leaders….

11. Organizational systems

are established to support
the quality efforts

Establish organizational
systems to support quality
effort.
At senior management level
a quality council is provided.
At first line and supervisor
level, work groups and
project teams are organized
to improve process. 19
Characteristics of Quality leaders….
12. Encourage and
recognize team efforts

They encourage and

recognize team effort.
The encourage their
contribution and provide
recognition.
This action is the powerful
tool.

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The 7 Habits of Highly Effective People:

A habit is the intersection of:

i. knowledge
ii. Skills
iii. Desire
In order for something to
become a habit you have to
have all three

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The 7 Habits of Highly Effective People..

1.Knowledge :
• It is the what to do and why.
2.Skill:
• It is the how to do.
3.Desire:
• It is the motivation or want to
do.

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The 7 Habits of Highly Effective People..

• The 7 Habits are a

highly integrated
approach that moves
from dependency ( you
take care of me) to
independence ( I take
care of myself) to
interdependence ( we
can do something
better together).

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The 7 Habits of Highly Effective People..

• The first 3 habits deal with

independence.
• Habits 4, 5 and 6 deals
with interdependence.
• Habit 7 is the habit of
renewal.

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The 7 Habits of Highly Effective People..

Habit 1 : Be Proactive:
• Proactive behavior involves acting in advance of the
future situation, rather than just reacting.
• Proactive means we are responsible for our own lives.
• Reactive people let circumstances, conditions or their
environment tell them how to respond.
• Proactive people take initiative, reactive people don’t.

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The 7 Habits of Highly Effective People..
Habit 2: Begin with End in mind:
 Begin each activity with an end ( develop your
mission statement.
 All things are created twice
 Mental creation ( first creation)
 Physical creation( second creation)
 If you want to have successful organization, you begin
with a plan that will produce appropriate results.

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The 7 Habits of Highly Effective People..
Habit 3:Put First Things First:
 There are some urgent issues and important issues.
 Urgent means it require immediate attention and
important has to do with results that contribute to
your goals.
 There are four activities that are necessary to be
active.
 First write duties.
 Second, list your objectives for each role.
 Third, schedule time to complete the objectives.
 Fourth, adapt the weekly schedule to your
activities. 27
The 7 Habits of Highly Effective People..

Urgent Not Urgent

1 2
Important

Crises, Firefighting, Pressing Prevention, relationship building,

problems, Deadline driven planning, recognizing new
projects opportunities

3 4
important

Calls, mails, reports, meetings, Busy work, time wasters

Not

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The 7 Habits of Highly Effective People..

Habit 4: think Win-Win

• Win-win is frame of mind and heart that constantly
seeks mutual benefits in all human interaction.
• Win-win embraces five interdependent dimensions
of life.
• Character
• Relationship
• Agreement
• System
• Process
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The 7 Habits of Highly Effective People..

1. Character:
It is balance between being considerate of others
and the courage to express feelings .
2. Relationship:
It means two parties trust each other and are
deeply committed to Win-Win
3. Agreement:
It require 5 elements.

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The 7 Habits of Highly Effective People…

i. Desired results
ii. Guide lines
iii. Resources
iv. Accountability
v. Consequences.

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The 7 Habits of Highly Effective People ..
i. Results:
Have person see it, describe it, make a quality
statement of what results will look like and by
when they will be accomplished.
ii. Guidelines:
Identify the parameters within which individual
should operate
iii. Resources:
Identify resources available to accomplish the
desired results.

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The 7 Habits of Highly Effective People
iv. Accountability:
Set standard of performance to be used in
evaluating the results and time specification
when reporting and evaluation will take place.
v. Consequences
the positive outcomes that occur when both
parties involved in a situation strive to achieve a
mutually beneficial result, where everyone feels
satisfied and gains something valuable, rather
than one person winning at the expense of the
other.

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The 7 Habits of Highly Effective People…
4.System:
 Win-Win agreement can only survive in a system
that support it
5.Process:
 In order to obtain Win-Win, a four-step process
is needed
I. See the problem from other point of view.
II. Identify key issues.
III. Determine acceptable results
IV. Seek possible new options to achieve those
results.
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The 7 Habits of Highly Effective People..

Habit 5: seek first to understand, then be

understood:
• Empathic learning is key.
• How others person sees the world, how they feel.
It means that you fully, deeply understand that
person emotionally as well as intellectually.
• The second part of the habit is to be understood.
• Covey uses three sequentially arranged Greek
words-
ethos, pathos and logos.
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The 7 Habits of Highly Effective People…

1.Ethos:
• It is your personal credibility or character.
2.Pathos:
• It is the empathy you have with other persons.
3.Logos:
• It is logic or reasoning part of your presentation.

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The 7 Habits of Highly Effective People….
Habit 6: Synergy:
• Synergy means that whole is greater than the
parts
• Together we can accomplish more than any of us
can accomplish alone.
• Synergy occurs when people abandon their
humdrum presentations and open themselves
up to creative cooperation

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The 7 Habits of Highly Effective People…..

 Habit 7:Renewal
 It is renewing four dimensions of your nature
 Physical
 Spiritual
 Mental
 Social/emotional
 Physical:
It means following good nutrition, rest and
Relaxation.

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The 7 Habits of Highly Effective People…

• Spiritual:
Spiritual dimension is commitment to your value
system. The renewal comes from meditation,
prayer and spiritual reading.
• Mental:
The mental dimension is continuing to develop
your intellect through reading, seminars and
writings.

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The 7 Habits of Highly Effective People….

• Social / emotional :
Our emotional life is primarily developed in our
relationship with others.
Renewing our social/emotional dimension
require focus on our interaction with others.

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 Deming’s philosophy

Provide a theory for management

to improve quality, productivity, and
competitive position

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Deming 14 Points:

• Known for developing a

system of statistical quality
control.
• Regarded as national hero
in Japan.
• 96 % of problems have
common causes and 4%
have special causes.

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Deming 14 points

Increase Greater Long

Quality Decrease market More jobs term
improve in cost in
productivity share survival

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Deming 14 points

1.Create and publish the purposes of organization

2.Learn the new philosophy.
3.Cease dependence on mass inspection.
4.Stop awarding the business based on price
alone.
5.Improve constantly and Forever the system.
6.Institute Training.
7.Institute leadership.
8.Drive out fear.
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Deming 14 points

9.Break down barriers between departments.

10.Eliminate exhortations for the workforce.
11.Eliminate numerical quotas for the work force.
12.Remove Barriers that rob people of pride of
workmanship.
13.Encourage education and self improvement for
everyone.
14.Take action to accomplish transformation

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Deming 14 points
1.Create and publish the aims and purposes of the
organization:
• Demonstrate their constant commitment to this
statement.
• It must include customers, employees,
community and quality philosophy
• Must take input from everyone
• Must establish strategies
• Establish core values

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Deming 14 points
1.Create and publish the purposes of the
organization:
• Establish system to achieve these goals
• Allocation of resources
• Doing your best is not good enough.
You have to know what to do. Then do
your best

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Deming 14 Points:
2.Learn the new philosophy:
• Seek never ending
improvement.
• New philosophy shows High
quality reduces cost.
• Old philosophy shows inverse
relationship of quality and cost.

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Deming 14 Points

2.Learn the new philosophy:

Process improvement leads to:
• Uniformity of product.
• Reduces mistakes.
• Reduces rework
• Reduces lead time.
• Better competitive position.
• Increased output with lower cost.

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Deming 14 Points:

3.Cease dependence on mass

inspection:
• Can be done by building quality
into product.
• Inspection does not work
• Old way of doing business was
defect detection

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Deming 14 Points:

3.Cease dependence on mass inspection:

• Modern philosophy focus on defect prevention.
• Mass inspection is managing for failure and
defect prevention is managing for success

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Deming 14 Points:

4.Stop awarding the business based on price

alone:
• Single suppliers for any one item to develop long
term relationship of loyalty and trust
• Provide feed back to supplier.
• Why we are doing this.
• To reduce variation.
• Variation form one supplier is bad enough.
• Variation from additional supplier is self inflicted
injury.

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Deming 14 Points:

5.Improve constantly and Forever the system:

Responsibility of management to actively find
and correct the problems for improvement in
• quality
• productivity
• decrease in cost
• Responsibilities must be assigned to remove the
cause of problems
• Responsibility of management to work
continuously on improvement of the system
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Deming 14 Points:
6.Institute Training:
• Institute job related training
• Two types of training:
• On job training
• Off job training
• Training is done for the improvement of skills
• New skills are required to keep up changes in
techniques, product design, machinery.
• Resources must be allocated to train employees.
• Training should be done at all levels

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Deming 14 Points

7.Institute leadership:
• The aim of leadership is to help people to do
better job.
• Management must ensure the immediate action
is taken on reports of :
• Inherited defects.
• Poor tools
• Maintenance required.
• Other conditions detrimental to the quality.

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Deming 14 Points

8.Drive out fear.

• Drive out fear so that everyone may work
effectively for the company.
• Fear is the barrier to improvement
• Whenever there is fear we get wrong figures.
• Possible causes of fear are:
• Lack of job security
• Not knowing job
• Poor supervision

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Deming 14 Points

9.Break down barriers between departments:

• Barriers breed sub optimization.
• People in design, planning, production and
sales must work as team to foresee problems.
• These barriers exist due to:
• Poor communication
• Ignorance of organizations mission
• Fear of competition

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Deming 14 Points

10.Eliminate exhortations for the workforce:

• Asking for increase in productivity without
providing methods can handicap an organization.
• It demonstrate ignorance of the fact that large
majority of problem lies within the system
• SMART goals should be made.
• Improvement cannot be made unless methods
and tools are available.

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Deming 14 Points

11.Eliminate numerical quotas for the work force:

• Quotas focus on quantity rather than quality.

• Quotas encourage poor workmanship.

• Provide a strategy for never ending improvement

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Deming 14 Points

12.Remove Barriers that rob people of pride of

workmanship:
Loss of pride in workmanship occurs due to:
oLack of knowledge of organization's mission.
oBeing blamed for problems.
oInadequate training
oPoor supervision.
oInadequate and ineffective equipment
oPoor working conditions
Restoring pride required long term commitment by
management

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Deming 14 point

12.Remove Barriers that rob people of pride of

workmanship
• Job descriptions must be provided.
• Provide proper tools and equipment.
• Motivate workers in understanding their roles
in total process.

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Deming 14 point

13.Encourage education and self improvement for everyone:

• What an organization need is not just good people it needs people
that are improving with education and knowledge.

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Deming 14 Points

14.Take action to accomplish transformation:

Never ending improvement should be the primary responsibility
of the management.
It has to create a corporate structure to implement the
philosophy.
A cultural change is required from the previous “ as usual”
attitude.
Management must be committed and involved for successful
implementation of new philosophy

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Role of TQM leaders …

• Management by wandering around

• The Japanese call this “Gemba leadership”
• Interact with the customers, suppliers and different departments
• Train the employees to take decisions
• Recognition and reward system
• Communication / training

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TQM Implementation …

• Training (TQM) of senior management

• Preparation of the implementation plan
• Quality council
• Vision, Mission & Quality Policy should be finalized by taking input
from all the stakeholders
• Involvement of Middle management and first line supervisors
• Involvement of workers and worker unions
• Training of employees about TQM

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TQM Implementation (Cont …)

• Customer, employees and supplier surveys should be conducted

to benchmark the attitude of stakeholders
• Quality council should identify the projects of improvement
• Quality council should make improvement teams

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Quality council …

• Quality council is the driver for TQM engine

• CEO, senior managers (marketing, operations, finance, quality
etc), a coordinator (directly reporting to CEO)
• If there is a union, a representative may be made a part of quality
council

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Quality council (Cont …)

• Duties of quality council

1. Vision, Mission & Quality Policy
2. Long term plan, quality improvement program with objectives
3. Education and training plan
4. Determine and monitor the COPQ
5. Determine and monitor performance measures for functional areas
6. Determine the projects of improvement
7. Establish and monitor project teams
8. Establish and maintain the reward and recognition system

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Quality council (Cont …)

• Responsibilities of coordinator
• To build two way trust
• Share council’s expectations with the team(s)
• Propose team(s) needs to the council
• Brief the council of team(s) performance
• Ensure that the team(s) is/are empowered and are aware of their
responsibilities

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 Quality statements

• Vision and mission statements often can be

found in the front of annual reports

• Often displayed throughout a firm’s premises

• In a recent study, researchers concluded that

90 percent of all companies have used a
mission statement sometime in the previous
five years

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What do we want to become ?
• Important for managers and executives in
any organization to agree on the basic
vision that the firm strives to achieve in the
long term
• A vision statement should answer the
basic question, “What do we want to
become?”
• A clear vision provides the foundation for
developing a comprehensive mission
statement

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 What do we want to become ?

• Many organizations have both a vision

and mission statement, but the vision
statement should be established first
and foremost.
• The vision statement should be short,
preferably one sentence, and as many
managers as possible should have input
into developing the statement.

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 Examples of Vision statement
• Tyson Foods’ vision is to be the world’s first choice for
protein solutions while maximizing shareholder value

• General Motors’ vision is to be the world leader in

transportation products and related services

• PepsiCo’s responsibility is to continually improve all

aspects of the world in which we operate—
environment, social, economic— creating a better
tomorrow than today.

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Examples of Vision statement

• Dell’s vision is to create a company culture

where environmental excellence is of
second nature.
• The vision of First Reliance Bank is to be
recognized as the largest and most
profitable bank in South Carolina.
• Samsonite’s vision is to provide innovative
solutions for the traveling world.

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Examples of Vision statement

• Royal Caribbean’s vision is to empower

and enable our employees to deliver
the best vacation experience for our
guests, thereby generating superior
returns for our shareholders and
enhancing the well-being of our
communities.
• Procter & Gamble’s vision is to be, and
be recognized as, the best consumer
products company in the world

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 What Is Our Business?

• “What is our business?” is synonymous with

asking the question “What is our mission?”
• An enduring statement of purpose that
distinguishes one organization from other similar
enterprises, the mission statement is a
declaration of an organization’s “reason for
being.”
• Answers the pivotal question “What is our
business?” A clear mission statement is essential
for effectively establishing objectives and
formulating strategies.

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 Mission statement

Also called creed statement,

• a statement of purpose,
• a statement of philosophy,
• a statement of beliefs,
• a statement of business principles,
• or a statement “defining our business,”
• A mission statement reveals what an organization wants to be
and whom it wants to serve

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Components of mission statement

1. Customers—Who are the firm’s

customers?
2. Products or services—What are the firm’s
major products or services?
3. Markets—Geographically, where does the
firm compete?
4. Technology—Is the firm technologically
current?
5. Concern for survival, growth, and
profitability—Is the firm committed to
growth and financial soundness?

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Components of mission statement

6. Philosophy—What are the basic beliefs,

values, aspirations, and ethical priorities of the
firm?
7. Self-concept—What is the firm’s distinctive
competence or major competitive advantage?
8. Concern for public image—Is the firm
responsive to social, community, and
environmental concerns?
9. Concern for employees—Are employees a
valuable asset of the firm?

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Examples of mission statement
Mission statement of Pepsi Co
We aspire to make PepsiCo the world’s (3) premier consumer products company,
focused on convenient foods and beverages (2). We seek to produce healthy
financial rewards for investors (5) as we provide opportunities for growth and
enrichment to our employees (9), our business partners and the communities (8) in
which we operate. And in everything we do, we strive to act with honesty, openness,
fairness and integrity (6).

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 Examples of mission statement
Mission statement of Dell
Dell’s mission is to be the most successful computer company (2) in the world (3) at
delivering the best customer experience in markets we serve (1). In doing so, Dell will
meet customer expectations of highest quality; leading technology (4); competitive
pricing; individual and company accountability (6); best-in-class service and support
(7); flexible customization capability (7); superior corporate citizenship (8); financial
stability (5).

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Is mission statement just a fashion?
• Some companies develop mission statements simply because they feel it
is fashionable, rather than out of any real commitment.
How to make sure that mission statement is not a fashion?
• However, firms that develop and systematically revisit their vision and
mission statements, treat them as living documents
• Johnson & Johnson (J&J) is an example firm. J&J managers meet regularly
with employees to review, reword, and reaffirm the firm’s vision and
mission.

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Process of developing mission and vision statement
• Select several articles about these statements and ask all managers to
read these as background information.
• Then ask managers to prepare a vision and mission statement for the
organization.
• A facilitator, or committee of top managers, should then merge these
statements into a single document and distribute the draft statements to
all managers.
• A request for modifications, additions, and deletions is needed next,
along with a meeting to revise the document.

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Characteristics of mission statement

• Broad in scope; do not include monetary amounts, numbers,

percentages, ratios, or objectives
• Less than 250 words in length
• Inspiring
• Identify the utility of a firm’s products
• Reveal that the firm is socially responsible
• Reveal that the firm is environmentally responsible

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Characteristics of mission statement

• Include nine components

• customers, products or services, markets, technology, concern
for survival/growth/
• profits, philosophy, self-concept, concern for public image,
concern for employees
• Reconciliatory
• Enduring

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Benefits of mission statement
1. Achieve clarity of purpose among all managers and employees.
2. Provide a basis for all other strategic planning activities, including the
internal and external assessment, establishing objectives, developing
strategies, choosing among alternative strategies, devising policies,
establishing organizational structure, allocating resources, and evaluating
performance.
3. Provide direction.
4. Provide a focal point for all stakeholders of the firm.
5. Resolve divergent views among managers.

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Benefits of mission statement
6. Promote a sense of shared expectations among all managers
and employees.
7. Project a sense of worth and intent to all stakeholders.
8. Project an organized, motivated organization worthy of support.
9. Achieve higher organizational performance.
10. Achieve synergy among all managers and employees.

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Mission statement and Customer orientation
Provide solutions to customers
Do not offer me things.
• Do not offer me clothes. Offer me attractive looks.
• Do not offer me shoes. Offer me comfort for my feet and the pleasure of
walking.
• Do not offer me a house. Offer me security, comfort, and a place that is
clean and happy.
• Do not offer me books. Offer me hours of pleasure and the benefit of
knowledge.

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Mission statement and Customer orientation

• Do not offer me CDs. Offer me leisure and the sound of music.

• Do not offer me tools. Offer me the benefits and the pleasure
that come from making beautiful things.
• Do not offer me furniture. Offer me comfort and the quietness of
a cozy place.
• Do not offer me things. Offer me ideas, emotions, ambience,
feelings, and benefits.

Please, do not offer me things.

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External Opportunities and Threats
External opportunities and external threats refer to
• Economic,
• Social,
• Cultural,
• Demographic,
• Environmental,
• Political,

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