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Chapter 9 - Building and sustaining performance excellence in organizations. This chapter presents the following content: Building and sustaining performance excellence in organizations, why adopt a performance excellence philosophy? Selling the TQ concept learn to think like top executives, organizational culture and performance excellence,...
Chapter 9 Building and Sustaining Performance Excellence in Organizations Key Idea Introduction A total quality strategy requires significant changes in organization design, process, and culture Obstacles to TQ Implementations Lack of a strong motivation Lack of time Lack of a formalized strategic plan for change Selling the TQ Concept • • • • • Learn to think like top executives Position quality as a way to address priorities of stakeholders Align objectives with those of senior management Make arguments quantitative Make the first pitch to someone likely to be sympathetic • • • • • Focus on getting an early win, even if it is small Ensure that efforts won’t be undercut by corporate accounting principles Develop allies, both internal and external Develop metrics for return on quality Never stop selling quality Corporate Culture and Change Corporate culture is a company’s value system and its collection of guiding principles Understanding culture and its importance Cultural values often seen in mission and vision statements Key Idea Organizational Culture & TQ Culture is reflected by the management policies and actions that a company practices. Therefore, organizations that believe in the principles of total quality are more likely to implement the practices successfully. Conversely, actions set culture in motion. As total quality practices are used routinely within an organization, its people learn to believe in the principles, and cultural changes can occur Baldrige Core Values and Concepts Visionary leadership Customer Driven Organizational and personal learning Valuing employees and partners Agility Focus on the future Managing for innovation Management by fact Social responsibility Focus on results and creating value Systems perspective Cultural Change Change can be accomplished, but it is difficult Imposed change will be resisted Full cooperation, commitment, and participation by all levels of management is essential Change takes time You might not get positive results at first Change might go in unintended directions Key Idea Cultural Change Impatient managers often seek immediate cultural change by adopting offtheshelf quality programs and practices, or by imitating other successful organizations. In most cases, this approach is setting themselves up for failure Building on Best Practices Universal best practices – Cycle time analysis – Process value analysis – Process simplification – Strategic planning – Formal supplier certification programs Common Mistakes in TQ Implementation (1 of 3) TQ regarded as a “program” Shortterm results are not obtained Process not driven by focus on customer, connection to strategic business issues, and support from senior management Structural elements block change Goals set too low “Command and control” organizational culture 23 Common Mistakes in TQ Implementation (2 of 3) Training not properly addressed Focus on products, not processes Little real empowerment is given Organization too successful and complacent Organization fails to address fundamental questions Senior management not personally and visibly committed 24 Common Mistakes in TQ Implementation (3 of 3) Overemphasis on teams for crossfunctional problems Employees operate under belief that more data are always desirable Management fails to recognize that quality improvement is personal responsibility Organization does not see itself as collection of interrelated processes 25 Six Stages of Quality Life Cycle Adoption Regeneration Energizing Maturation Limitation or stagnation Decline Key Idea Learning Organizations Organizations have both dynamic and static components. Organizations are dynamic entities. Managers must consider the dynamic component in order to deal with instability in the environment, imperfect plans, the need for innovation, and the common human desire for variety and change Learning Organization Peter Senge … an organization that is continually expanding its capacity to create its future adaptive learning & generative learning Learning Organization David Garvin … an organization that is skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights… Peter Senge Leaders must develop the capability to integrate creative thinking and problem solving throughout the organization Key Activities of Learning Organizations Systematic problem solving Experimentation with new approaches Learning from their own experiences and history Learning from the experiences and best practices of others Transferring knowledge quickly and efficiently throughout the organization Key Idea SelfAssessment Process Selfassessment should identify both strengths and opportunities for improvement, creating a basis for evolving toward higher levels of performance. Thus, a major objective of most selfassessment projects is the improvement of organizational processes based on opportunities identified by the evaluation Self Assessment: Basic Elements Management involvement and leadership Product and process design Product control Customer and supplier communications Quality improvement Employee participation Education and training Quality information Importance of FollowUp of SelfAssessment Results Many organizations derive little benefit from conducting selfassessment and achieve few of the process improvements suggested by selfstudy Reasons: – – – Managers do not sense a problem Managers react negatively or by denial Managers don’t know what to do with the information Key Idea Importance of Followup Following up requires senior leaders to engage in two types of activities: action planning and subsequently tracking implementation progress Leveraging SelfAssessment Findings Prepare to be humbled Talk through the findings Recognize institutional influences Grind out the followup Implementing ISO 9000 Start with a quality policy that identifies key objectives and basic procedures Develop a quality manual to document the procedures Use internal audits to maintain procedures Provide adequate resources Implementing Six Sigma Committed leadership Integration with existing initiatives, business strategy, and performance measurement Process thinking Disciplined customer and market intelligence gathering A bottom line orientation Leadership in the trenches Training Continuous reinforcement and rewards ... Committed leadership Integration with existing initiatives, business strategy,? ?and? ?performance? ?measurement Process thinking Disciplined customer? ?and? ?market intelligence gathering A bottom line orientation... Education? ?and? ?training Quality? ?information Importance? ?of? ?FollowUp? ?of? ? SelfAssessment Results Many? ?organizations? ?derive little benefit from conducting selfassessment? ?and? ?achieve few? ?of? ?the? ?process improvements suggested ... Leveraging SelfAssessment Findings Prepare to be humbled Talk through? ?the? ?findings Recognize institutional influences Grind out? ?the? ?followup Implementing ISO 9000 Start with a? ?quality? ?policy that identifies