Chapter 5

Leadership and Strategic Planning

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

Leadership
The ability to positively influence people and systems to have a meaningful impact and achieve results

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

Strategic Planning
The process of envisioning an organizations future and developing the necessary procedures and operations to achieve that future.

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

The Baldrige Leadership Triad

Strategic Planning Operations

Leadership Customer and Market Focus

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

Executive Leadership
Defining and communicating business directions Ensuring that goals and expectations are met Reviewing business performance and taking appropriate 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Core Leadership Skills

Vision Empowerment Intuition Self-understanding Value congruence
Dale Crownover, President, Texas Nameplate Co.

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

Leading Practices - Leadership

Create a customer-focused strategic vision and clear quality values Create and sustain leadership system and environment for empowerment, innovation, and organizational learning Set high expectations and demonstrate personal commitment and involvement in quality Integrate quality values into daily leadership and management and communicate extensively Integrate public responsibilities and community support into business practices
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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

Zenger-Miller Leadership Competencies

Setting or sharing a vision Managing a change Focusing on the customer Dealing with individuals Supporting teams and groups Sharing information Solving problems, making decisions Managing business processes

Managing projects Displaying technical skills Managing time and resources Taking responsibility Taking initiative beyond job requirements 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

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

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

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Common Organizational Structure

Customers

Customer team

Customer team

Customer team

Systems and support services Executive steering committee

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

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Leadership and Public Responsibilities

Ethics Health, safety, and environment Community support

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

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Strategic Planning
A strategy is a pattern or plan that integrates an organizations major goals, policies, and action sequences into a cohesive whole. James Quinn

Formal strategy includes: Goals to be achieved Policies to guide or limit action Action sequences, or programs, that accomplish the goals
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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

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

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Strategic Planning Process

Reason for existence Future intent Attitudes and policies

Mission

Vision

Guiding Principles

Environmental assessment Strategies

Capabilities and risks

Broad statements of direction

Strategic Objectives
Action Plans

Things to change or improve

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

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 long-term partnerships based on integrity and ethical business practices.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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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

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

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Policy Deployment (Hoshin Kanri)

Top management vision leading to long-term objectives Deployment through annual objectives and action plans Negotiation for short-term objectives and resources (catchball) Periodic reviews
See Figure 5.7!

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

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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

Leadership in the Baldrige Criteria

The Leadership Category examines how an organizations 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 how the organization addresses its responsibilities to the public and supports its key communities. 1.1 Organizational Leadership a. Senior Leadership Direction b. Organizational Performance Review 1.2 Public Responsibility and Citizenship a. Responsibilities to the Public b. Support of Key Communities
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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

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