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MORTGAGE BANKING SCHOOL OF SOUTHERN AFRICA

MBS

UNIVERSITY OF ZIMBABWE
GRADUATE SCHOOL OF MANAGEMENT - MBA PROGRAMME

MODULE 1: PHILOSOPHIES AND CONCEPTS


CHAPTER 3 STRATEGIC QUALITY MANAGEMENT PLANNING
University of Zimbabwe Faculty of Commerce Graduate School of Management Masters in Business Administration 2nd Year, 2nd Semester
LECTURER: DR. S. RUTURI
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 1

STRATEGIC QUALITY MANAGEMENT PLANNING


READING

Bounds chapters 3, 6 Goetsch, L. David and Davis, Stanley B; (2006) Quality Management Workbook chapter 2 Articles appendix 1 Grant et al Also case study Hewlett Packard
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

STRATEGIC QUALITY MANAGEMENT PLANNING


Drivers

High level strategic thinking


Global competitiveness Pursuit of excellence culture Customer value concept Customer value measurement

Understanding and improving systems


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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

STRATEGIC QUALITY MANAGEMENT PLANNING (Contd)


Drivers Creating the future Appointment of New CEO Threat of Change in Ownership Performance Gap

External Intervention eg., Banks

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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QUALITY LEADERSHIP CONCENTRATES ON:


Delight customers. Measure performance. Get closer to customers than competitors. Plan to do all jobs right first time. Agree expected performance standards.
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

QUALITY LEADERSHIP CONCENTRATES ON: (Contd)

Demand company wide continuous quality improvement. Measure quality mismanagement.

Recognize achievements.
Celebrate successes. Learn from experiences
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

DEFINITIONS OF STRATEGIC MANAGEMENT


Strategic Plan is a set of comprehensive

approaches adopted by organizations to ensure successful performance in the marketplace David L. Goetsch and Stanley B. Davis (2006)

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

DR. S. RUTURI

AUGUST 2008

DEFINITIONS OF STRATEGIC MANAGEMENT


Strategic Management Planning is a management plan which bases all actions, activities and decisions on what is most likely, within an ethical framework, to ensure successful performance in the marketplace. David L. Goetsch and Stanley B. Davis (2006)

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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AUGUST 2008

STRATEGIC MANAGEMENT PLANNING is


that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes: Environmental Scanning, Strategy Formulation, Strategy Implementation, Performance Evaluation and Control (Thomas L. Wheelen and J. David Hunger) (1998))
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 9

STRATEGIC MANAGEMENT PLANNING FRAMEWORK FOR SAM RUTURI HOLDINGS (PVT) LTD.
Current Situation Environmental Scanning Strategy Formulation

Cost of the Implementation

Strategy

Evaluation & Control

Company Background Vision Mission Values Goals Objectives Strategies Financial Performance

External
Societal Environment Political Legal Economic Socio-cultural Technological Task Environment Competitotrs Suppliers Customers Products Markets

Vision What we want to be

Mission

Reason for existence


Values

What we stand for


Goals

Internal
Governance Structure

Our wish list of desires


Objectives

Culture - Beliefs - Expectations, - Values

What results to accomplish by when

Strategies

Performance Scorecard Financial Perspective Leverage ratios Profitability ratios Liquidity ratios Efficiency ratios Investment ratios
Customer Perspective Internal Processes Perspective Learning and Growth Perspective

Resources -Finance - Human - Marketing - Systems - Operations - R and D - Co- competencies,

Plan to achieve the mission & objectives

Policies

Broad guidelines for decision making

Programme of Action

Activities needed to accomplish a plan

Budget s

Analytical Techniques SWOT TOWS EFAS IFAS SFAS Porters 5 Forces Competitive Assessments BCG Growth / Share Matrix Ansoff Portfolio Matrix Space Matrix

Cost of programs
Procedures

Sequence of steps needed to do the job

Performance Scorecard Process to monitor performance and take corrective action

Source: Adapted from Thomas L. Wheelen and J. David Hunger (1998) and Modified by S. Ruturi (2008)

Multiple-Loop Feedback/Learning

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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COMPONENTS OF STRATEGIC MANAGEMENT


Strategic Planning Strategic Execution

STRATEGIC PLANNING Who are you? Where are we going? How do we get there? What do we hope to accomplish? What are our Strengths and Weaknesses What are our Opportunities and Threats? What must we focus on? What activities must we undertake?
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 11

STRATEGIC EXECUTION
Implementing strategies set forth in the plan.

Monitoring progress benchmarks.

against

performance

Effectiveness - correct objectives


Efficiency - Timing

TOTAL QUALITY
Enhances

a firms ability to gain sustainable competitive advantage.

Most effective cost leadership strategy.

Most effective differentiation strategy.


Simultaneous pursuit of differentiation and cost

leadership improves product and service.


UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 12

CREATIVE THINKERS / MIND SHIFTERS


Creative thinking needs: Knowledge Time
LEFT OF BRAIN VERSUS RIGHT OF BRAIN THINKERS LEFT OF BRAIN Linear Analytical Rational Sequential Orderly Segmented RIGHT OF BRAIN Spatial Synthesizing Holistic Timeless Defuse Unifying Non-Linear

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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CREATIVE THINKING VS NATURAL BARRIERS


CREATIVE THINKING Relating things previously unrelated. Thinking on more than one plane. Sensitivity to surrounding. Dreaming and freewheeling. Suspension of judgment. BARRIERS Lack of effort in challenging the obvious Self-imposed limits. Lack of perception or sensitivity. Lack of time. Premature evaluation. Desire to resist change.
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

CREATIVE THINKING VS NATURAL BARRIERS


CREATIVE THINKING Urge to explore and change things. Ability to abstract. High tolerance of deviancy. Low uncertainty avoidance. Tolerance of ambiguities. BARRIERS Prejudice through misjudgment. Low tolerance of deviancy.

High uncertainty avoidance. Only one right answer.

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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RULES FOR CREATIVE THINKING


Bring creative people in one room. Listen to every idea. Safe to express bad ideas. Do not suppress other peoples ideas.

Support mind shifters.


Keep door open. If you are not creative acknowledge and

support creativity in others.


UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 16

CONDUCT THE SWOT ANALYSIS


Internal Analysis External Analysis

Identifying Organizational Strengths Financial strength A good reputation in the marketplace Strategic focus High-quality products and services Proprietary products and services Cost leadership Strong management team Efficient technological process Talented workforce Faster time to market
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 17

IDENTIFYING ORGANIZATIONAL WEAKNESSES


Products with decreasing demand Too diverse a product line Poor image in the marketplace Weak distribution system Weak financial position High unit costs compared with those of competitors Poor quality in products and services
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

IDENTIFYING ORGANIZATIONAL WEAKNESSES (Contd)


Products with decreasing demand Too diverse a product line Poor image in the marketplace Weak distribution system Weak financial position High unit costs compared with those of competitors Poor quality in products and services

IDENTIFYING EXTERNAL OPPORTUNITIES


Availability of new customers

An

expanding market for potential or planned products


services

existing

or

Ability to diversify into related products and Removal of barriers that inhibit growth Failures of competitors

New

on-line technologies that enhance productivity or quality.


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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

IDENTIFYING EXTERNALTHREATS
Entry of lower cost competitors Entry of higher quality competitors Increased sales of substitute products and

services
Significant slowdown in market growth

Introduction

of

costly

new

regulatory

requirements
Poor supplier relations

Changing tastes and habits of consumers


Potentially damaging
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 20

CHARACTERISTICS OF GOOD VISION

Easily understood

Brief, yet comprehensive


Challenging, yet attainable Lofty, yet tangible Stirs Excitement Creates unity of purpose Not concerned with numbers Set the Tone
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

CHARACTERISTICS OF A VISION STATEMENT


Easily understood by stakeholders. Brief, yet clear and comprehensive meaning. Challenging, yet attainable. Lofty, yet tangible.

Stimulates excitement.
Creates unity of purpose. Is not concerned with numbers. Sets the tone for employees.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 22

VISION STATEMENT ESSENTIALS


It must be a compelling ideal state. It must be a value-based strategy.

It must outflank competitors.


It must be linked to managerial systems. Training and education must be wide

spread. (company wide). Leadership must display constructive impatience. Identify skills and knowledge necessary to achieve the vision. It must be extensively advertised Campaign for the vision. You must have vision apostles
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

EXAMPLES OF VISION STATEMENTS


THE BELLEVUE HOSPITAL Vision Statement The Bellevue Hospital is the LEADER in providing Resources necessary to realise the communitys highest level of HEALTH throughout life. U.S. POULTRY & EGG ASSOCIATION Vision Statement A national organisation which represents its members in all aspects of poultry and eggs on both a national and an international level.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 24

EXAMPLES OF VISION STATEMENTS


(Contd)

JOHN DEERE, INC. Vision Statement John Deere is committed to providing Genuine Value to the companys stakeholders, including our customers, dealers, shareholders, employees, and communities. In support of that commitment, Deere aspires to: Grow and pursue leadership positions in each of our businesses.
Extend our pre-eminent leadership position

in the agricultural worldwide.

equipment

market

Create new opportunities to leverage the

John Deere brand globally.


DR. S. RUTURI

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EXAMPLES OF VISION STATEMENTS


(Contd)

MANLEY BAPTIST CHURCH The Vision of Manley Baptist Church is to be the people of God, on mission with God, motivated by a love for God, and a love for others. U.S. GEOLOGICAL SURVEY (USGS) The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to societys needs.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 26

EXAMPLES OF VISION STATEMENTS


(Contd)

MASSACHUSETTS : DIVISION OF BANKS

Vision Statement
To

protect

the

public

interest,

ensure

competition, accessibility and fairness within the relevant financial services industries, respond innovatively to a rapidly changing environment, and foster a positive impact on the Commonwealths economy.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 27

EXAMPLES OF VISION STATEMENTS (Contd)


OHIO DIVISION OF HAZARDOUS WASTE MANAGEMENT Vision Statement Ohios Division of Hazardous Waste Management is recognised as a leader among state hazardous waste management programs through our expertise, effectiveness, application of sound science and delivery to our stakeholders. ATLANTA WEB PRINTERS, INC. Vision Statement To be the first choice in the printed communications business. The first choice is the best choice, and being the best is what Atlanta Web pledges to work hard at being every day!
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 28

EXAMPLES OF VISION STATEMENTS


(Contd)

CALIFORNIA ENERGY COMMISSION Vision Statement


It is the vision of the California Energy

Commission for Californians to have energy choices that are affordable, reliable, diverse, safe, and environmentally acceptable.

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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MISSION STATEMENTS OF NINE ORGANISATIONS IBM PRINCIPLES: EXAMPLE 2 (Contd.)


AMOCO CORPORATIONMISSION STATEMENT
Amoco is a worldwide integrated petroleum and chemical company. We find and develop petroleum resources and provide quality products and services for our customers. We conduct our business responsibly to achieve a superior financial return balanced with our long-term growth, benefiting shareholders and fulfilling our commitment and the environment.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 30

MISSION STATEMENTS OF NINE ORGANISATIONS IBM PRINCIPLES: EXAMPLE 2 (Contd)


VISION STATEMENT
Amoco will be a global business enterprise, recognised throughout the world as preeminent by employees, customers, competitors, investors and the public. We will be standard by which other businesses measure their performance. Our hallmarks will be the innovation, initiative and teamwork of our people and our ability to anticipate and effectively respond to change and to create opportunity.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 31

MISSION STATEMENTS OF NINE ORGANISATIONS IBM PRINCIPLES: EXAMPLE 2 (Contd.)


HARLEY-DAVIDSON: MISSION STATEMENT Stay true to the things that make a Harley-Davidson a Harley-Davidson. Keep the heritage alive. From the people in the front office to the craftsmen on our factory floor, that is what we do. And its why each generation of Harley-Davidson motorcycles, well refined, contains the best of the ones before it. We have a passion for our product few companies understand. But when you see the result, it all becomes clear. Were not just building motorcycles.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 32

MISSION STATEMENTS OF NINE ORGANISATIONS IBM PRINCIPLES: EXAMPLE 2 (Contd.)


HARLEY-DAVIDSON: MISSION STATEMENT Were carrying on a legend. Ask anyone whos ever owned a Harley-Davidson. It gets in your blood. Becomes a part of your life. And once it does, it never leaves. Its something you cant compare with anything else. We know because weve been there. Thats why, for 90 years, weve remained firm in our commitment to building the kind of motorcycles that deserve the intense loyalty that Harley-Davidson enjoys. The styling is still pure. The engines still rumble. Its also why you will see us at major rallies and rides throughout the year, listening and talking to our customers. Staying close to riders and to the sport is how weve kept alive the things that make a Harley-Davidson a Harley-Davidson. Our approach has always been different. But again, so has a HarleyDavidson. We wouldnt have it any other way
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 33

MISSION STATEMENTS OF NINE ORGANISATIONS IBM PRINCIPLES: EXAMPLE 2 (Contd.)


VISION STATEMENT

Harley-Davidson, Inc. is an action oriented company a leader in its commitment to continuously improve the quality of profitable relationships with stakeholders (customers, employees, suppliers, shareholders, government, and society). Harley-Davidson believes the key to success is to balance stakeholders interests through the empowerment of all employees to focus on value-added activities.
Our Vision is our corporate conscience and helps us to eliminate short-term thinking, such as cashing in on demand for our motorcycles by giving quantity precedence over quality or cutting corners in recreational or commercial vehicles to save a few dollars per unit.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 34

MISSION STATEMENTS OF NINE ORGANISATIONS IBM PRINCIPLES: EXAMPLE 2 (Contd.)


It also encourages every employee in our organisation to be acutely aware of his or her role in satisfying our stakeholders. Equally important to our Vision, we live by a Code of Business Conduct that is driven by a value system which promotes honesty, integrity, and personal growth in all dealings with stakeholders. Our values are the rules by which we operate: Tell the truth; be fair; keep your promises; respect the individual; and encourage intellectual curiosity. In addition, we never lose sight of the issues we feel must be addressed in order to be successful in the 1990s: Quality, participation, productivity, and cash flow. As a shareholder, you should expect no less from us.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 35

VALUES
Value is not the same to everyone. To customers, value is a perceived level of quality or

performance at an acceptable price; To shareholders, value is a real financial return; To employees, value is a secure job, income, training and development, respect, social contact, and the prospect of doing something worthwhile; To suppliers, value is regular orders, satisfied buyers, ideas for improvement, few hassles, and payment without delay; To society, value is a clean environment, jobs and support for healthcare, welfare, education, the arts, and sport; To government, value is taxes, job creation, training, and social services and support.
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

GUIDING PRINCIPLES
Represent the organization's value system. Cornerstone for total quality. Give freedom through control. Foundation for corporate culture.

Stakeholders play their role.

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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GUIDING PRINCIPLES: EXAMPLE 1


We will:

Uphold the highest ethical standards.


Customer satisfaction is the highest priority. Treat all stakeholders as partners. Focus on continual improvement of products, processes and people. Provide employees with a safe and health work environment conducive to consistent peak performance.

Be a good communities.

corporate

neighbour

in

our

Protect the environment


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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

IBM PRINCIPLES: EXAMPLE 2


The

marketplace is the driving force behind everything we do. At our core, we are a technology company with an overriding commitment to quality. Our primary measures of success are customer satisfaction and shareholder value. We operate as an entrepreneurial organization with a minimum of bureaucracy and never-ending focus on productivity. We never lose sight of our strategic vision. We think and act with a sense of urgency. Outstanding, dedicated people make it all happen, particularly when they work together as a team. We operate to the need of all employees and to the communities in which we operate.
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

IBM PRINCIPLES: EXAMPLE 2


The marketplace is the driving force behind everything we do.

At our core, we are a technology company with an overriding commitment to quality.


Our primary measures of success are customer satisfaction and shareholder value. We operate as an entrepreneurial organization with a minimum of bureaucracy and never-ending focus on productivity. We never lose sight of our strategic vision.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 40

EXAMPLE 3: STATEMENT OF VALUES


We never lose sight of our strategic vision. We think and act with a sense of urgency. Outstanding, dedicated people make it all happen, particularly when they work together as a team. We operate to the need of all employees and to the communities in which we operate.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 41

EXAMPLE 3: STATEMENT OF VALUES


We are one organization, one team, united through shared values Clients Shareholders Ourselves Integrity and Ethics PILLARS OF EXCELLENCE
A belief in excelling at what the group does. A belief that people in the group should be innovators

who can take calculated and communicated risks without fearing punishment. A belief in the importance of attending to detail when doing a job.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 42

EXAMPLE 3: STATEMENT OF VALUES


A belief in the importance of people as individuals. A belief in superior quality and continuous service

improvement. A belief in the importance of informality to improve the flow of communication through the organization A belief in the importance of our groups growth. A belief in the importance of hands on management, the notion that team leaders should be doers not just planners and administrators. A belief in the importance of a recognizes organization philosophy developed and supported by those at the top. A belief in the importance of having FUN through ones work. People work to live and not live to work
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

BROAD STRATEGIC OBJECTIVES


Broadly stated.

Specific enough to be measured.


Single issue focus.

Tied directly to the vision and mission.


In accordance with guiding principles. Show

what the organization wants to accomplish.


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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

CAUTION ON BROAD OBJECTIVES


Keep them few in number. Keep the language simple. Tie them to the mission and vision. Dont let them be limiting or restrictive. Make them a means to an end, not an end

themselves.
Do not use them in the appraisal process. Relate them to all employees. Make them challenging but not impossible.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 45

BROAD OBJECTIVES EXAMPLES


Program Objectives 1:
To negotiate and conclude a merger between

Credsure and SFG Insurance Companies by 30 June 2008. To introduce Total Quality Management and Best Practice throughout the organization by 28 February 2008. To increase the companys turnover from the $50 billion to 500 billion by 30 December 2008. To open 4 distribution outlets; one in Harare, Bulawayo, Johannesburg and Lusaka by 31 December 2009. To grow the organization through acquisitive means by 500% by 30 December 2009
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

CORPORATE STRATEGY

Growth Stability Retrenchment Cost Leadership Strategies Differentiation Strategies Market Niche / Focus Strategies Which products / services? Which markets? Which customers? Using which resources?
DR. S. RUTURI AUGUST 2008 47

COMPETITIVE STARTEGY

STRATEGY: CHOICES

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

QUALITY IMPROVEMENT FOR CUSTOMER VALUE


Quality design /redesign: Product-based and

user based quality.


Quality of Performance: Manufacturing-

based quality.
Quality of conformance: User-based quality.

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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QUALITY IMPROVEMENT FOR CUSTOMER VALUE

Customer
Custome r Value Design Product

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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QUALITY IMPROVEMENT FOR CUSTOMER VALUE (Contd)


Quality Design /Redesign Customer Value Quality of Conformance Quality of Performance

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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Figure #:VALUE INNOVATION: CORNERSTONE BLUE OCEAN STRATEGY


Costs Value Innovation

Value The Simultaneous Pursuit of differentiation and Low Cost


UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 51

HIERARCHY OF PLANNING

Corporate Plan Business Plan Functional Plan Individual Plan

CHARACTERISTICS OF SPECIFIC TACTICS Tied Directory to a Broad Objective. Can be assigned. Can be accomplished within a time frame. Can be quantifiable. Measurable Specific in nature
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 52

CHARACTERISTICS OF SPECIFIC TACTICS: EXAMPLES


Action Plan for Finance Manager : Admire Khan

Program Objective: To negotiate and conclude a merger between X and Y Insurance Companies. Program Activities: Submit proposal and obtain Board approval for a merger or acquisition of an Insurance company.
Submit a proposal to X for a merger or acquisition and obtain their approval
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI AUGUST 2008 53

CHARACTERISTICS OF SPECIFIC TACTICS: EXAMPLES (Contd.)

Obtain approval in principle subject to both parties completing a Due Diligence Exercises on each other. Convene Shareholders extra-ordinary general meeting and obtain approval for the transaction.

Obtain regulatory approval and consummate the transaction thereof.


Conduct a rationalization exercise to harmonise and integrate the two organizations cultures. Reassign duties and responsibilities to the various officers.
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

CHARACTERISTICS OF SPECIFIC TACTICS: EXAMPLES (Contd.)


Action Steps 1.(a) Identify three insurance companies suitable to merge with (b) Discuss and agree with the GCEO on a suitable company. 2(a) Draft proposal for approval by Board Investments Committee (b) Discuss and obtain resolution from Board Investments Committee for approval by Main Board. (c) Motivate discussion and obtain approval by Main Board.
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

Responsibilities

Start-End

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ACTION PLAN FOR CHIEF EXECUTIVE OFFICER: WILL SMITH


PROGRAMME OBJECTIVE: To introduce Total Quality Management and Best Practice throughout the organization by 28 February 2008.

Programme Activities:

1 2 3 4

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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Tactic

Responsible Individual/Unit

Timescale

Arrange TQ training for all executive managers. Arrange teamwork training for all executive managers. Give all employees training in the use of problemsolving/quality tools. Give all employees training in continual improvement methods. Establish a companysupported off-duty education program for all employees.

CEO CEO
Department Managers Department managers Human Resources Department.

Completed by January 15
Completed by January 10

January 15-February 20
March 15-May 15 In place by February 28

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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FUNCTIONAL PLANS

Marketing Plan Quality Plan Financial Plan Human Resources Plan

Operations Plan

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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PERFORMANCE MEASUREMENT

Self Assessment Balanced Scorecard

UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

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LESSONS LEARNT
A deep desire across the company i.e. Board

and business and support teams to reach a customer focus dream. Comprehensive and clearly formed plans. Early communication to ensure all understand what is needed. Early involvement of everyone in how the change is delivered. Open communication, informality and hard listening. Early measurement of progress, communications of success and feedback of learning experiences. Continued communications and pursuance of goals.
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UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE

THANK YOU!

THE END
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI 2008 AUGUST 2008 62

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