Total Quality

Management

Chapter Four:
Leadership and
Strategic Planning

Lecturer: Sayid-ali
Hassan Abdikarim
 Upon completion of this chapter, you will
be able to:
1. Explain leadership
2. Discuss corporate social responsibility
3. Identify vision, mission and values
4. Understand strategic quality management
5. Discuss quality culture
6. Describe change management
 Introduction
• Organizations are witnessing a lot of upheavals and changes
today. Companies are challenging the ways they do business.
• It is imperative that organizations innovate, adapt, shift and
transform themselves. Every employee needs to exhibit
leadership, make decisions and act on opportunities for an
organization to succeed today.
• While facing constant changes, what are the keys that help to
keep a person and an organization on track?
• Among the various roles and skills of a CEO, the most
important is perhaps his ability to observe things.
– He should be able to sit at the periphery of his organization and
observe, and then get back and act upon his observation.
 Defining Leadership
• Leadership is a process by which a person
influences others to accomplish an objective
and directs the organization in a way that
makes it more cohesive and coherent.
• Leadership is the ability to positively
influence people and systems under one’s
authority to have a meaningful impact and
achieve important results.
 Defining Leadership
• “Leadership is the capacity to translate
vision into reality.” —Warren Bennis.
• “Leadership is the result of communicating
value in people so clearly that they come see
it in themselves.” —Stephen R. Covey
• Leadership is the only thing that
differentiates successful organizations from
others over the long run.” —Stephen Haines
 Quality Leadership
• The five primary traits of a successful leader
are as follows:
1. Leaders create vision:
2. Leaders build teams:
3. Leaders are role models:
4. Leaders take decisions:
5. Leaders inspire:
 Leadership Functions
1. Transactional functions
2. Transformational functions
 1. Transactional Functions
• Leaders have an obligation to get things done, ensure
achievement of targets and maximize efficiency and
effectiveness of various groups.
• These can be achieved by paying attention to the following
aspects:
1. Policy making
2. Planning
3. Developing systems
4. Monitoring performance
5. Coordinating
6. Rewarding
7. Coaching
2. Transformational Functions
• Transactional functions are primarily concerned
with the achievement of tasks.
• Transformational functions go beyond the
immediate task and build individuals and groups
and enable them to achieve targets that the
organization or individual would never have
expected.
• These functions empower various groups and
individuals and enhance the organization’s
power as a whole.
 Cont.
• The following functions fall in this category:
1. Creating and modeling a vision
2. Setting standards
3. Building culture and climate
4. Boundary management
5. Synergizing
6. Searching and nurturing talent
 Visionary Leadership
• Visionary leaders work boldly with imagination and
insight and are the builders of a new dawn.
• They present a challenge that brings the best out of
people and binds them together around a shared sense
of purpose.
• Their eyes are firmly set on the horizon, not just on the
target near at hand.
• They are social innovators and agents of change who
see the big picture and think strategically.
• Organizational leadership plays a key role in developing
a vision, and inspiring and committing employees to it.
 Visionary Leadership
• The following are the characteristics of a visionary
leader:
1. Have a strong concern and a guiding purpose. In other words, an
overreaching vision.
2. Be committed to the vision and its realization, which is
evidenced by thoughts and deeds and the ability to translate the
vision into acceptable forms of action.
3. Be creative and able enough to generate a number of ideas while
encouraging others to do so, thereby integrating different ideas
into constructive activity.
4. Be an effective and meaningful communicator of the vision and
motivate others to participate in its realization.
 Visionary Leadership
5. Be cognizant/knowing of the expectations and motives of
people and seek ways of integrating them with the
organization’s futuristic goals while creating an
environment in which people are receptive to new ideas.
6. Be willing to examine the vision from time to time in the
perspective of changes in the external environment and
ensure continued support from everyone involved.
7. Be unafraid of failure and take risks after a careful
consideration of the consequences.
8. Be willing to empower employees to be creative and to
experiment without undue fear of Punishment or failure
Corporate Social Responsibility
• CSR relates to the responsibilities that
corporations have towards the society within
which they are based and operate in.
• Stakeholders (employees, community, suppliers
and shareholders) today are redefining the role of
corporations taking into account the latter’s
broader responsibility towards society and
environment, beyond economic performance, and
are evaluating whether they are conducting their
role in an ethical and socially responsible manner.
 Cont.
• Today, CSR has become a world-wide concept
whereby organizations consider the interests of
society by taking responsibility for the impact of
their activities on customers, employees,
shareholders, communities and the environment
in all aspects of their operations.
• CSR is defined as operating a business in a
manner that meets or exceeds the ethical, legal,
commercial and public expectations that society
has of business.
 DISCUSSION FORUM
1. Define leadership and describe the functions of
leadership.
2. Name the eight principles of visionary leadership.
3. Discuss the six natural levels of leadership.
4. Define CSR
5. Explain the main components of CSR.
6. What is corporate citizenship?
7. Discuss CSR issues for various stakeholders.
8. Describe the benefits of CSR.
 Strategic Quality Management
• Strategic Quality Management (SQM) is a
structured process for establishing long-range
quality goals, at the highest levels of the
organization and defining the means to be used
to reach these goals.
• SQM is developed, deployed and led by the top
management. The concept of SQM includes
– strategic planning,
– strategy development and
– strategy deployment.
 The Strategy Process
• The company must engage in strategic planning that
clearly defines the objectives and assesses both
internal and external situations to formulate
strategies, implement them, evaluate the progress
and make adjustments as necessary to stay on track.
• Strategies are broad statements that set the
direction for the organization to take in realizing its
mission and vision.
• A step-by-step approach of the strategic planning
process is discussed below:
 Cont.
1. Environmental scanning:
2. Vision, mission and values:
3. Objectives and goals:
4. Strategy formulation:
5. Strategy implementation:
6. Performance and measurement
(evaluation and control):
7. Strategic quality management:
 Five Phases of SQM
• The fundamental nature of SQM is to ensure
a continuous assessment of internal and
external changes with regard to quality, and
an adjustment of the competitive approach
based on the assessment.
 Five Phases of SQM
1. Phase I defines the beginning of SQM, during which the quality
mission of the firm is established with the involvement of the
manufacturer.
2. Phase II passes through the development of quality profiles keeping
in mind the quality mission and external environment comprising
customers’ and competitors’ perceptions. The quality policy is
declared at the end of this phase.
3. Phase III is devoted to listing or modifying long-term and annual
quality objectives also termed goals or targets.
4. Phase IV witnesses efforts made to infuse quality at the design stage.
5. Phase V constitutes the development of the SQM system, which
signifies the whole process of SQM. The results obtained after this
phase are compared with the desired performance at the global level.
 Quality Culture
• Quality culture is a set of group values that
guide how improvements are made to everyday
working practices and consequent outputs.
• A changed mindset at all levels of management
is the basic tool for implementation of such a
culture.
• Quality culture starts with leadership that
understands and believes the implications of the
systems view and knows the necessity of
serving customers in order to succeed.
 Five Stages of Quality Culture
• Quality culture differs from company to
company. In some companies this is very
basic/rudimentary, while in others it is well
developed. According to Sandholm, there
are five stages of quality culture.
 Cont.
Stage 1: Dormant stage: In this stage, there is
no evident interest in becoming involved in
quality or anything related to quality.
Stage 2: Awakening stage: During this stage, a
certain amount of competition develops in the
industry.
Stage 3: Groping stage: As the term suggests,
this stage is one where very few managers at
the top know exactly how to introduce quality
into their activities.
 Cont.
Stage 4: Action stage: During this stage, a
strategic plan is conceived for the
development of quality initiatives followed by
their implementation.
Stage 5: Maturity stage: This stage is witness
to quality being built into the system with a
clear focus on customers. It is integrated into
everything that is done in the organization.
 Building Quality Culture
• Building a quality culture is no easy task.
Developing a focus on quality seems very
easy.
• However, organizations need to spend a lot
of time, effort and money to achieve the
goal.
• What is needed is to focus attention on the
aspects described as follows:
 Building Quality Culture
1. Initiate quality:
– When trying to initiate quality or make any
improvements, one starts with gap analysis in terms of
finding out where the organization is placed currently,
what it wants to achieve and finding out the gap.
2. Quality commitment:
– Commitment from the senior management is a must.
3. Capabilities and maturity:
– Capability refers to having the skills to undertake work
successfully. Maturity refers to the corporate
understanding of why quality is important.
4. Motivation:
 Cont.
5. Institutionalization:
– Training, group discussions, sharing of knowledge are some
points that are essential to bring about change. Motivation,
exchange of ideas, and quality awareness.
6. Focus groups:
1. Process improvement teams
2. Process review teams
3. Technology improvement teams
4. Knowledge transfer teams
5. Quality assurance teams (responsible for conducting audits)
7. Automated tools:
– Automated tools can help ease the burden of implementing
quality processes and standards.
 Change Management: Leading the
Change to Quality Culture
• Management has an obligation to create an effective
and sustainable quality culture.
• There are various proactive steps one can take to move
the organization’s culture toward one based on quality
values.
• Quality professionals, however, have a significant
responsibility to help the organization accomplish this
goal.
• Achieving this goal is challenging but not extremely
difficult. It requires a sound philosophy supported by
some basic beliefs.
 Cont.
• Change management is the process of
developing a planned approach to change in an
organization.
• Typically, the objective is to maximize the
collective benefits for all people involved in the
change and minimize the risk of failure in
implementing the change.
• Change management is a systematic approach to
dealing with change both from the perspective
of an organization and the individual.
 Forces of Change
• External and internal forces affect change
management.
• The external forces effecting change could be:
1. Demographic characteristics;
2. Technological developments;
3. Market changes;
4. Social and political pressures.
– Employee and public values, needs, priorities and motivation are
influenced by political and social developments and events.
Managers need to adjust their management styles to meet these
values and needs.
 Cont.
• Internal forces:
• The internal forces for change are operative from within the
organization. They are:
1. Human resource factors
– Employee perceptions about working conditions, treatment and the
alignment between individual and organizational needs are important
in this regard.
2. managerial behaviour and decisions.
– Excessive interpersonal conflict is often a clear sign that change is
needed.
– Due to the important role of the manager in introducing and managing
change in the organization, skills training and capacity building
programmes for both managers and employees might be necessary.
Resistance to Change and Approaches to
Deal with Resistance to Change
• People resist change owing to the following
reasons:
1. Lack of communication:
2. Procedure:
3. Goal-oriented:
4. Involvement of parties:
5. Proper support:
6. Lack of courage:
7. Poor motivation:
 Cont.
• Katter and Schlesinger set out six change approaches to deal with this
resistance: to change.
1. Education and communication:
2. Participation and involvement:
3. Facilitation and support:
– This approach looks into providing special training, counseling
4. Negotiation and agreement:
– This approach will be appropriate where those resisting change are in a position
of power.
5. Manipulation and co-option:
– This often involves selecting leaders of the resisters to participate in the change
effort. These leaders can be given a symbolic role in decision making without
threatening the change effort.
6. Explicit and implicit coercion:
– This approach is used only when speed is essential.
– Managers can explicitly or implicitly force employees into accepting change by
making clear that resisting changing can lead to losing jobs, firing, transferring or
not promoting employees.
 DISCUSSION FORUM
1. Define quality culture.
2. Discuss the six values of quality culture.
3. Explain quality culture building in an
organization.
4. Discuss the forces for change.
5. Explain the reasons for resistance to change.
6. Describe the six approaches to deal with
resistance to change.
7. Explain the process of successful change
deployment.