Lecture The management and control of quality - Chapter 5: Leadership and strategic planning

Chapter 5 - Leadership and strategic planning. After studying this chapter you will be able to understand: Leadership, strategic planning, the baldrige “leadership triad”, executive leadership, leadership competencies,...

Chapter 5 Leadership and Strategic Planning   Leadership  The ability to positively influence  people and systems under one’s  authority to have a meaningful  impact and achieve important  results Strategic Planning  The process of envisioning an  organization’s future and  developing the necessary goals,  objectives, and action plans to  achieve that future The Baldrige “Leadership  Triad” Strategic Planning Operations Leadership Customer and Market Focus Executive Leadership          Defining and communicating business directions Ensuring that goals and expectations are met Reviewing business performance and taking  appropriate action 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 Key Idea Six key leadership competencies can be described as navigator, communicator, mentor, learner, builder, and motivator Dale Crownover, President, Texas Nameplate Co. (a 2­time  Baldrige Award recipient) Leadership Competencies       Navigator—creates shared meaning and provides  direction toward a vision,mission, goal, or end­ result Communicator—effectively listens and articulates  messages to provide shared meaning.  Mentor—provides others with a role to guide their  actions.  Learner—continuously develops personal  knowledge, skills, and abilities through formal study,  experience, reflection, and recreation Builder—shapes processes and structures to allow  for the achievement of goals and outcomes.  Motivator—influences others to take action in a  desirable manner.  Leading Practices – Leadership (1  of 2)     Create and deploy a customer­focused  strategic vision and clear quality values Create a sustainable organization and  environment for performance improvement,  accomplishment of the mission, innovation,  agility, and learning Demonstrate personal commitment to  organizational values, develop future  leaders, and reinforce high performance Create a focus on action and communicate  with, empower, and motivate all employees Leading Practices – Leadership (2  of 2)    Address organizational governance to  include management and fiscal  accountability, protection of stakeholder  interests, and conduct evaluations to improve  the leadership system Create an environment that fosters legal and  ethical behavior Integrate public responsibilities, resource­ sustaining processes, and community  support into business practices Leadership System   Leadership system – 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 10 Key Idea Creating the Leadership System An effective leadership system respects  the capabilities and requirements of  employees and other stakeholders, and  sets high expectations for performance  and performance improvements Strategic Planning “A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.” Formal strategy includes:    Goals to be achieved Policies to guide or limit action Action sequences, or programs, that  accomplish the goals 12 Leading Practices ­ Strategic  Planning      Systematic planning systems for strategy  development and deployment Understand the competitive environment and the  factors and strategic challenges that determine  success, and gather and analyze a variety of  external and internal data Align short­term action plans with long­term  strategic objectives, communicate them, and track  progress Derive human resource plans from strategic  objectives and action plans Identify key measures and indicators for tracking  progress, reinforce organizational alignment, and  compare performance with competitors Strategic Planning Process Reason for existence Future intent Mission Vision Attitudes and policies Guiding Principles Environmental assessment Strategies Broad statements of direction Strategic Objectives Action Plans Capabilities and risks Things to change or  improve 14 Implementation Vision  Where the organization is headed and what  it intends to be – – – –  Brief and memorable ­ grab attention Inspiring and challenging ­ creates excitement Descriptive of an ideal state ­ provides guidance Appealing to all stakeholders ­ employees can  identify with Solectron: “Be the best and continuously  improve” Mission   Definition of products and services,  markets, customer needs, and distinctive  competencies Solectron: “…to provide worldwide  responsiveness to our customers by  offering the highest quality, lowest total  cost, customized, integrated, design,  supply chain, and manufacturing solutions  through long­term partnerships based on  integrity and ethical business practices.” Values (Guiding Principles)   Define attitudes and policies for all  employees, which are reinforced  through conscious and subconscious  behavior at all levels of the  organization Pepsico: integrity, honesty, teamwork,  accountability, balance Environmental Assessment SWOT Analysis       Customer and market requirements,  expectations, and opportunities Technological and other innovations Organizational strengths and weaknesses Financial, societal, ethical, regulatory and  other potential risks Changes in global or national economy Factors unique to the organization, such as  partner and supply chain needs  Key Idea Strategy Development Strategies are broad statements that set the  direction for the organization to take in  realizing its mission and vision Strategic objectives are what an organization  must change or improve to remain or  become competitive Action plans are things that an organization  must do to achieve its strategic objectives Strategy Deployment  Developing detailed action plans,  defining resource requirements and  performance measures, and aligning  work unit, supplier, or partner plans  with overall strategic objectives Key Idea Strategy Deployment Strategic objectives and action plans often  require significant changes in human resource  requirements, such as redesigning the work  organization or jobs to increase employee  empowerment and decision making,  promoting greater labor/management  cooperation, modifying compensation and  recognition systems, or developing new  education and training initiatives Leadership and  Organizational Structure  Basic types of organizational  structures – Line organization – Line and staff organization – Matrix organization Key Idea Organization structure As more and more companies accept the  process view of organizations, they are  structuring the quality organization around  functional or cross­functional teams Leadership in the Baldrige  Criteria The Leadership Category examines how an organization’s  senior leaders address values, directions, and performance  expectations, as well as a focus on customers and other  stakeholders, empowerment, innovation, and learning.  Also  examined is the organization’s governance and how the  organization addresses its public and community  responsibilities 1.1 Organizational Leadership a. Senior Leadership Direction b. Organizational Governance b. Organizational Performance Review 1.2 Social Responsibility a. Responsibilities to the Public b. Ethical Behavior c. Support of Key Communities Strategic Planning in the  Baldrige Criteria The Strategic Planning Category examines how an  organization 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 Objectives 2.2 Strategy Deployment a. Action Plan Development and Deployment b. Performance Projection ... Creating? ?the? ?Leadership? ?System An effective? ?leadership? ?system respects  the? ?capabilities? ?and? ?requirements? ?of? ? employees? ?and? ?other stakeholders,? ?and? ? sets high expectations for performance  and? ?performance improvements... accomplish? ?the? ?goals 12 Leading Practices ­? ?Strategic? ? Planning      Systematic? ?planning? ?systems for strategy  development? ?and? ?deployment Understand? ?the? ?competitive environment? ?and? ?the? ? factors? ?and? ?strategic? ?challenges that determine ... organization’s future? ?and? ? developing? ?the? ?necessary goals,  objectives,? ?and? ?action plans to  achieve that future The? ?Baldrige ? ?Leadership? ? Triad” Strategic Planning Operations Leadership Customer and Market