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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 1

    Chapter 5

    Leadership and Strategic

    Planning

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 2

    Leadership

    The ability to positively influence

    people and systems to have a

    meaningful impact and achieve results

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 3

    Strategic Planning

    The process of envisioning an

    organizations future and developing

    the necessary procedures and

    operations to achieve that future.

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 4

    The Baldrige Leadership Triad

    Leadership

    Strategic

    Planning

    Customer andMarket Focus

    Operations

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 5

    Executive Leadership

    Defining and communicating business directions

    Ensuring that goals and expectations are met

    Reviewing business performance and takingappropriate aciton

    Creating an enjoyable work environment

    Soliciting input and feedback from customers

    Ensuring that employees are effective contributors

    Motivating, inspiring, and energizing employees Recognizing employee contributions

    Providing honest feedback

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 6

    Core Leadership Skills

    Vision

    Empowerment

    Intuition

    Self-understanding

    Value congruence

    Dale Crownover, President, Texas Nameplate Co.

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 7

    Leading Practices - Leadership Create a customer-focused strategic vision and clear

    quality values

    Create and sustain leadership system and

    environment for empowerment, innovation, andorganizational learning

    Set high expectations and demonstrate personalcommitment and involvement in quality

    Integrate quality values into daily leadership andmanagement and communicate extensively

    Integrate public responsibilities and communitysupport into business practices

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 8

    Leadership Theories

    Trait approach

    Behavioral approach

    Contingency (situational) approach

    Role approach Emerging theories:

    Attributional theory

    Transactional theory

    Transformational leadership theory

    Substitutes for leadership theory

    Emotional intelligence theory

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 9

    Zenger-Miller

    Leadership Competencies

    Setting or sharing a vision

    Managing a change

    Focusing on the customer

    Dealing with individuals

    Supporting teams andgroups

    Sharing information

    Solving problems, makingdecisions

    Managing businessprocesses

    Managing projects

    Displaying technical skills

    Managing time and resources

    Taking responsibility

    Taking initiative beyond jobrequirements

    Handling emotions

    Displaying professional ethics

    Showing compassion

    Making credible presentations

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 10

    Leadership System

    Refers to how decisions are made,

    communicated, and carried out at all levels;

    mechanisms for leadership development,self-examination, and improvement

    Effectiveness of leadership system depends

    in part on its organizational structure

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 11

    Common Organizational Structure

    Customers

    Customerteam

    Customerteam

    Customerteam

    Systems and support services

    Executive steering committee

    CEO

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 12

    Leadership and Public

    Responsibilities

    Ethics

    Health, safety, and environment

    Community support

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 13

    Strategic Planning

    Formal strategy includes:

    Goals to be achieved

    Policies to guide or limit action Action sequences, or programs,

    that accomplish the goals

    A strategy is a pattern or plan that integrates anorganizations major goals, policies, and action

    sequences into a cohesive whole.

    James Quinn

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 14

    Tasks Accomplished

    by Strategic Planning

    Understand important customer and operational

    requirements

    Optimize use of resources and ensure bridging

    between short-term and longer-term

    requirements

    Ensure that quality initiatives are understood at

    all organizational levels

    Ensure that work organizations and structures

    will facilitate accomplishment of strategic plan

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 15

    Leading Practices -

    Strategic Planning

    Active participation of top management,

    employees, customers, suppliers

    Systematic planning systems for strategy

    development and deployment, including

    measurement, feedback, and review

    Use of a variety of external and internal data

    Align short-term action plans with long-term

    strategic objectives, communicate them, and

    track progress

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 16

    Strategic Planning Process

    Mission Vision Guiding Principles

    Environmental assessment

    Strategies

    Strategic Objectives

    Action Plans

    Broad statements of direction

    Capabilities and risks

    Things to change or

    improve

    Implementation

    Reason for existence Future intent Attitudes and policies

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 17

    Mission

    Definition of products and services,markets, customer needs, and distinctivecompetencies

    Solectron: to provide worldwideresponsiveness to our customers by offeringthe highest quality, lowest total cost,customized, integrated, design, supply

    chain, and manufacturing solutions throughlong-term partnerships based on integrityand ethical business practices.

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 18

    Vision

    Where the organization is headed and whatit intends to be

    Brief and memorable - grab attention

    Inspiring and challenging - creates excitementDescriptive of an ideal state - provides

    guidance

    Appealing to all stakeholders - employees can

    identify with Solectron: Be the best and continuously

    improve

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 19

    Policy Deployment

    (Hoshin Kanri)

    Top management vision leading to long-term

    objectives

    Deployment through annual objectives andaction plans

    Negotiation for short-term objectives and

    resources (catchball) Periodic reviews

    See Figure 5.7!

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 20

    The Seven Management

    and Planning Tools

    Affinity diagrams

    Interrelationship digraphs

    Tree diagrams

    Matrix diagrams

    Matrix data analysis

    Process decision program charts

    Arrow diagrams

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 21

    Leadership in the Baldrige Criteria

    The LeadershipCategory examines how an organizationssenior leaders address values, directions, andperformance expectations, as well as a focus oncustomers and other stakeholders, empowerment,innovation, and learning. Also examined is how the

    organization addresses its responsibilities to the publicand supports its key communities.

    1.1 Organizational Leadership

    a. Senior Leadership Direction

    b. Organizational Performance Review1.2 Public Responsibility and Citizenship

    a. Responsibilities to the Public

    b. Support of Key Communities

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 22

    Strategic Planning

    in the Baldrige CriteriaThe Strategic PlanningCategory examines how anorganization develops strategic objectives and action

    plans. Also examined are how chosen strategic objectives

    and action plans are deployed and how progress is

    measured.

    2.1 Strategy Development

    a. Strategy Development Process

    b. Strategic Objectives2.2 Strategy Deployment

    a. Action Plan Development and Deployment

    b. Performance Projection