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UNIVERSITY OF ZIMBABWE
GRADUATE SCHOOL OF MANAGEMENT - MBA PROGRAMME
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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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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Recognize achievements.
Celebrate successes. Learn from experiences
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approaches adopted by organizations to ensure successful performance in the marketplace David L. Goetsch and Stanley B. Davis (2006)
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STRATEGIC MANAGEMENT PLANNING FRAMEWORK FOR SAM RUTURI HOLDINGS (PVT) LTD.
Current Situation Environmental Scanning Strategy Formulation
Strategy
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
Mission
Internal
Governance Structure
Strategies
Performance Scorecard Financial Perspective Leverage ratios Profitability ratios Liquidity ratios Efficiency ratios Investment ratios
Customer Perspective Internal Processes Perspective Learning and Growth Perspective
Policies
Programme of Action
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
Source: Adapted from Thomas L. Wheelen and J. David Hunger (1998) and Modified by S. Ruturi (2008)
Multiple-Loop Feedback/Learning
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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.
against
performance
TOTAL QUALITY
Enhances
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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
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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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
An
existing
or
Ability to diversify into related products and Removal of barriers that inhibit growth Failures of competitors
New
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
Easily understood
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
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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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
equipment
market
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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
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.
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Commission for Californians to have energy choices that are affordable, reliable, diverse, safe, and environmentally acceptable.
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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.
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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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GUIDING PRINCIPLES
Represent the organization's value system. Cornerstone for total quality. Give freedom through control. Foundation for corporate culture.
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Be a good communities.
corporate
neighbour
in
our
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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who can take calculated and communicated risks without fearing punishment. A belief in the importance of attending to detail when doing a job.
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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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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
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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CORPORATE STRATEGY
Growth Stability Retrenchment Cost Leadership Strategies Differentiation Strategies Market Niche / Focus Strategies Which products / services? Which markets? Which customers? Using which resources?
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COMPETITIVE STARTEGY
STRATEGY: CHOICES
based quality.
Quality of conformance: User-based quality.
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Customer
Custome r Value Design Product
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HIERARCHY OF PLANNING
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
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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
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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.
Responsibilities
Start-End
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Programme Activities:
1 2 3 4
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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
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FUNCTIONAL PLANS
Operations Plan
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PERFORMANCE MEASUREMENT
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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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THANK YOU!
THE END
UZ. - MBA 555: TOTAL QUALITY MANAGEMENT & BEST PRACTICE DR. S. RUTURI 2008 AUGUST 2008 62