Chapter 2: Leadership

Introduction
 Requires a keen understanding of human nature
 Basic needs, wants, abilities of people etc.
 To be a effective leader, he should know that people
 Need security and independence at the same time
 Are sensitive to rewards and punishments and like to hear a word
of praise
 Can only process a few facts at a time and hence leader needs
to keep things simple
 Distrust leader, if words are inconsistent with leader action
 Leader needs to do the following
 Give employees independence; encourage and reward small
success
 Create an environment do not penalize mistakes
 Give a personal control over their task to make them own
 James McGregor Burns says
 Leader is one who instils purpose, not one who control by brute
force
 Leader strengthen and inspires followers to accomplish shared
goals
 Leader shape organization values, promote it and protect it
Role of leadership in Implementation
 Commitment
 Begins with senior management (CEO commitment)
 Commitment and leadership requires every phase of
implementation
 Education
 Senior management / manager should be educated about TQM
concepts
 Can learn by industrial visits of TQM plants, seminars, books etc.
 Timing
 Is organization ready for implementation?
 Check for any foreseeable problem like change in management,
some crisis like strike etc.
 Formation of quality council
 Develop a vision, mission statements and quality policy with
involvement of all personnel including middle managers and
supervisors
 TQM retreat
 To develop ownership in TQM effort and make them acquire
insight and skills for becoming leaders
 TQM training, leadership skills etc. will be taught
Role of leadership – contd..
 Discussion with union
 Share implementation plan of TQM
 Both manager and union leader have to work together
 Communicate it to entire organization
 It is necessary to create awareness, interest and
desire for action from workers
 Conduct survey
 Customer, employee and supplier surveys to collect
information to identify quality improvement projects
 Problem solving training to employee
 Training is conducted to employees, who will play a
major role in quality improvement project
 Deploying projects
 Team are formed and are allotted initial projects
 Quality council monitors the progress
Role of senior management
 They must participate in implementation process
 They must participate in quality council activities
 They must practice philosophy – management by
wandering around
 Getting out of office, talk with customer, supplier and collect first
hand information
 Deploy problem solving and decision making to the
lowest level by delegating responsibility and authority
 Should provide needed resources like training,
equipment, funding etc.
 Should celebrate the success of quality improvement
effects through award and recognition
 Must visibly and actively engage in quality effort through
demonstrating, communicating and emphasizing on
quality statements
Role of senior management – contd..
 Listen to internal and external customers and
suppliers based on which process improvements
projects to be identified
 Important role is communication. To create
awareness and importance of TQM and provide
TQM results in ongoing manner
 Ultimately they should
 Drive out fear of the organization
 Break down barriers
 Remove system obstacles
 Minimize resistance to change
 Change the culture
Quality council

What do you understand by term Quality Council

and what is its’ needs.
 Establish to provide overall direction
 Driver of the TQM engine
 Composed of CEO, senior managers of functional area and a
consultant along with union representative and coordinator
 Coordinator should report to CEO. His responsibility is to build two-
way trust, propose team’s need to the council, share council
expectation to team etc.
 Responsibility
 Develop core values, vision statement, mission statement, quality
policy statement with input from personnel
 Develop strategic long-term plan with goals and annual quality
program with objectives
Quality council – contd..
 Responsibility
 Create total education and training plan
 Determine and continuously monitor the cost of poor
quality
 Determine the performance measures for the
organization functional area and monitor them
 Determine those projects that improve processes –
that affect internal and external customer satisfaction
 Establish multi functional project and work group team
and monitor their progress
 Establish or revise the recognition and reward system
 It is necessary that quality council become
ingrained in culture
Core values and concepts
 Helps to TQM behaviour and define the culture
 Customer driven quality
 It is a strategic concept
 Quality is judged by customers
 Should have product / service / process
characteristics, that add value to the customer and
satisfying them should be the focus
 Also include organization relationship with customers
that help build trust, confidence and loyalty
 Should also include product differentiation that makes
it unique from competition
 Continuous improvement and learning
 Continuous improvement refers to both incremental
and breakthrough improvement
 Learning refers to adaptation to change, leading to
new goals
Core values and concepts – contd..
 Continuous improvement and learning
 Both have to be embedded in organization functions
 Are required part of daily work
 Eliminate problem at source
 Driven by opportunities to do better
 Enhancing value to customer through new and improved
products
 Reducing errors, defect, waste
 Valuing employees
 Organization success depends on the skills and
motivation of workforce
 Organization needs to invest in development of
workforce through education, training and
opportunities for growth which include classroom, on
the job training, job rotation etc.
 Training should be on advanced technologies also
 It also include integration of HR practices like
selection, performance, career advancement etc.
Core values and concepts – contd..
 Design quality and prevention
 Organization needs to emphasize design quality – problem and
waste prevention through building quality into products
 Cost of preventing problems at the design stage are lower than
cost of correcting problems
 Design quality means fault-tolerant / failure resistant process and
products
 Waste can occur not only due to resource use and manufacturing
process, it also talks about process waste and product waste
 Growing environmental demand means, design quality and
prevention should also take into account these factors
 Management by fact
 Organization depends on measurement and analysis of
performance
 Measures are derived from organizational strategy and provide
critical data and information about key processes, output and
results
 Data needed are of many types: customer, product/service,
competition, supplier, employee related, cost & financial etc.
Core values and concepts – contd..
 Management by fact
 Decision making should be based on analysis of the
above said data
 It helps to set realistic goals
 Partnership development
 Organization needs to build internal and external
partnership to have better accomplished goals
 Internal partnership include labour management
cooperation and agreement with unions
 It also relates to creating network relationship among
organization units for knowledge sharing and flexibility
 External partnership include those with customers,
suppliers and educational organizations
 Partnership helps to blend organization’s core
competencies with strength and capabilities of
partners to improve overall capability
Core values and concepts – contd..
 Corporate responsibility and citizenship
 Responsibility refers to organizations business
ethics, protection of public health, safety and
environment, which may be affected by
organization process, product / service
 Emphasize on resource conservation and waste
reduction at source
 Organization should meet all local, state and
federal laws and regulatory requirements
 Citizenship refers to education improvement,
community services etc.
Shared values
 What are the major principles, which leads to
greater productivity, quality, job satisfaction and
profits?
 Treat others with uncompromising truth
 Avoid rumours / grapevine

 Tell truth – good or bad

 Lavish trust on your associates

 Pride of ownership is the feeling employee get, when lavished

with trust
 Managers must trust employees to make decisions

 Mentor unselfishly
 Management teach employees

 Employees teach employees

 Employees teach management

 When an individual has unique knowledge and is unwilling to

share, then it will hurts the organization

Shared values – contd..
 Be receptive to new ideas, regardless of their origin
 Health work environment should invite people to offer ideas and
suggestion
 Mostly best ideas comes from the person performing the process
 It motivates the employee and enhance job security
 Take personal risk for organization’s sake
 Organization culture should allow for failures without reprisal
 Give credit where credit is due
 Employee wants to understand the rewards and feel that they are
fair enough
 Do not touch dishonest dollars
 Some survey shows the employees feel that to some extent
manager’s are dishonest
 It affects organization morals and self respect
 Organization should not take unfair advantage of employees,
customers, suppliers and even competitors
 Put the interest of others before your own
 When people focus on what is good for organization rather than
their self interest, then everyone gains
Quality statements
 What do you understand by Quality Statements?
 Include vision statement, mission statement and quality policy
statement
 They are part of strategic planning process and includes goal and
objectives
 Utilization for four statements vary considerably from organization to
organization
 Small organization can have only quality policy statement
 Vision statement
 Statement declaring what an organization should look like 5 to 10
years in the future
 Statement should be short and concise
 “We will be the preferred provider of safe, reliable and cost
effective products and services that satisfy the electric-related
needs of all customer segments” – Florida Power and
Light company
Quality statements – contd..
 Mission statement
 It answers the following questions
 Who we are
 Who are the customers
 What we do
 How we do it
 Statement is of one paragraph or less
 Easy to understand and describes the function of the
organization
 “To meet customer’s transportation and distribution
needs by being the best at moving their goods on
time, safely and damage free” – Canadian National
Railway
 Quality policy
 Guide for everyone in the organization as to how they
should provide products and services to customers
 Should be written by CEO with feedback from
workforce and approved by quality council
Quality statements – contd..
 Quality policy
 “Quality is the basic principle of Xerox Quality means
providing our internal and external customers with
innovative products and services that fully satisfy their
requirements. Quality is the job of every employee”
 Strategic planning
 Many organization find that strategic quality plans and
business plans are inseparable
 Long term plan – 3 to 10 years
 Short term plan - < 1 year
 Goals and objectives
 Both has same meaning
 Goal for long-term (winning the war)
 Objective for short-term planning (capture the bridge)
Quality statements – contd..
 Goals and objectives
 Goal should provide the basis for measurement
 Goals must be based on statistical evidence or
otherwise it may be exhortations
 Goals must be definitive, specific and
understandable using concrete results rather than
behaviours or attitude
 It should involve specific time frame and there
should be cause and effect relationship between
the goals and method
 Objectives are operational approaches to attain
the goals
7 steps to strategic planning
 What are the various steps to be taken for strategic
[Link]?
 Underlying principle is quality and customer satisfaction are the
centre of organization future
 Customer needs : Who are the customers? What they want? How
will organization meet and exceed expectation?
 Customer positioning: Product or service with poor quality
performance should be targeted for breakthrough and are
eliminated
 Predict the future
 Demographics, economic forecast, technical assessment are
tools that help predict the future
 Rate of change is continuously increasing
 Gap analysis: Identify the gap between current state and future
state
 Closing the gap: Develop plan and establish goal, objectives and
responsibilities
 Alignment: As the plan is developed, it must be aligned with the
mission, vision and core values
 Implementation: The most difficult step and resources may be
allocated and resistance to change has to be overcome
Communications
 Quality council is driver and communication is the fuel
 It deliver the organization values, expectations, provide
information about corporate developments, allow
feedback from all levels
 2 basic communication techniques are interactive and
formal
 Interactive
 Most effective communication is between the employee and his /
her supervisor
 He can transfer information on what needs to be improved, how
to do it, why it need to be done etc.
 This type of communication can be on one-on-one basis or group
basis
 Group meeting generally occur at beginning of shift
 Another effective communication is through discussion during a
lunch session
 Meeting of all employees every quarter and explain the state of
company and answer questions from employee
 It can also occur electronically by email, video conference etc.
Communications – contd..
 Formal
 Occurs by either through printed page or electronics
 Most common form is periodic publications like
newsletter, monthly magazine etc.
 Graphics is another form of effective communication
like charts, Pareto diagrams etc.
 Feedback
 Communication system to be effective, there must be
feedback
 Survey to be conducted to check whether key
messages are understood and supported by the
employees
 Decision making
 Making poor decisions is one of the deadliest threat
 To make correct decision, it is better to use problem
solving method
Characteristics of leaders
 12 behaviours or characteristics that successful
leaders demonstrate
 Give priority attention to external and internal
customers and their needs. They continuously
evaluate the customers changing needs
 They empower rather than control
 They have trust and confidence in the performance of the
subordinates
 They provide resources, training, work environment to keep
them do the job
 They emphasize improvement rather than
maintenance
 They emphasize prevention
 They encourage collaboration and competition
 They train and coach rather than direct and supervise
 They learn from problems – when a problem exists, it
is treated as opportunity rather than something to be
minimized
Characteristics of leaders – contd..
 They continually try to improve communications
 They disseminate information clearly and maintain two
way communication
 They continuously demonstrate their commitment
to quality
 They choose suppliers on the basis of quality and
not on price
 They establish organization systems to support
the quality effort
 They encourage and recognize team effort
End of Lecture 3