1. Covey Chapters 26 & 27 Presented by: Sam Barkley Tiffany Lange

2. Chapter 26 Total Quality Leadership  Quality is widely seen as the key to American economic survival and success.  The purpose of PCL is to empower people and organizations to achieve their worthwhile objectives, in essence to become more effective at whatever they do.

3. What’s the Problem?  For many, the problem is no foundation.

4. The Solution Principal Centered Leadership  Provides the foundation for the successful implementation of Total Quality.  Sometimes referred to as: “the missing ingredient” “leadership and people component” “glue that holds Total Quality together” “infrastructure on which we build Total Quality” Or even the “catalyst that makes the rest of Total Quality work”

5. Total Quality: A Leadership and People Paradigm  The primary elements of Total Quality: Leadership People They have somehow been lost in the forest of quality

6. How many companies follow a Total quality program assembled from some combination of the following components?  Automation  Hard work  Making people accountable  Merit systems  Work Standards  Zero defects  Quality control circles  New machinery  Best efforts  Management by objectives  Incentive pay  Just-in-time inventory  Meeting specifications  Statistical processes

7. Real understanding of what Total Quality is:  It resides effectively in the eye of the beholder, it is what the agent of quality believes it to be.  Thus for the line worker Quality may be pride of workmanship  For the owner: Increasing earnings  For the customer Reasonably priced, comfortable shoes that look good and wear well over time.  Ultimately, however, the result of quality is what the consumer determines it to be.  So, all quality initiatives must be customer-focused.

8. Transformation of Management  The job of management is not supervision, but leadership  The required transformation of Western style of management requires that managers be leaders

9. Total Quality Leadership  Managers must change: Fundamentally Transform its attitudes Mind-set Basic paradigms Before total quality can become a reality  “Managers must become empowering leaders.”

10. Chapter 27 Seven Habits and Deming’s 14 Points By: Keith A Gulledge of the Covey Leadership Center

11. Intro  “You can not continuously improve interdependent systems and processes until you progressively perfect interdependent, interpersonal relationships.” –Covey  The Seven Habits enable people to work more effectively together in a state of interdependence.  Management is key!  Out of all the component resources that make up business systems and processes, PEOPLE are the most important.  This chapter is trying to understand people, their interaction with each other and the systems in which they work and learn.

12. Habit 1: Be Proactive- the Principle of Self-Awareness, Personal Vision, and Responsibility  “ Most management today is reactive behavior. You put your hand on a hot stove and yank it off. A cat would do as much.” –Deming  Proactive people and organizations are: Aggressive Assertive Taking initiative Responding to outside stimuli Self-aware Accept responsibility for their own actions Don’t blame and accuse others when things go wrong Work continuously within their circle of influence Change and develop them selves first in order to have greater influence with others. Accept the challenge to assist others

13. Habit 1 cont.  Proactivity forms the basis for successfully incorporating virtually all of Deming’s 14 Points.  Just a few of Deming’s Points that Habit 1 follows: Commitment to constancy of purpose (1) Adopting the new philosophy throughout the organization (2) Decisions to alter inspection procedures (3) To develop new supplier relationships (4) Continuous improvement (5) All the other points require proactive leadership and proactive followship!

14. Habit 2: Begin with the End in Mind- the Principle of Leadership and Mission  Leadership focuses more on: people than things long term rather than short term developing relationships rather than on equipment values and principles rather than on activities mission, purpose and direction rather than on methods, techniques and speed.  Developing a personal and organized mission statement is a key implementation tool for applying this principle.

15. Deming’s Points that apply: 1.Create a new statement of purpose, and commit to it. 2.Adopting a new philosophy 7.Adopting and instituting leadership 8.Driving out fear 11.Eliminating goals and quotas 14.Putting everyone to work to accomplish the transformation.

16. Habit 3: Put Fist Things First- the Principle of Managing Time and Priorities Around Roles and Goals  Applies the principle of implementing one’s action plans to achieve worthy purposes.  As people learn to determine and schedule their priorities, putting first things first, they become more effective in both personal and business pursuits.  Management principles and action planning depends upon putting first things first  Deming’s Points that apply: 1. Creating constancy of purpose 2. Adopting a new philosophy 5. To constantly improve systems of production and service 14.Putting everyone to work to accomplish the transformation

17. Habit 4: THINK WIN-WIN- the Principle of Seeking Mutual Benefit  Think win-win in any interdependent relationship for long-term effectiveness.  Win-Win requires: Abundance mentality Cultivates the genuine desire to see the other party win as well An agreement among individuals or organizations.

18. Deming’s Points that apply: 3.Building quality to eliminate inspections 4.Moving toward a single supplier 5.Constant improvement of systems 6.Instituting training on the job 8. Driving out fear 9. Breaking down barriers between departments 11. Eliminating goals, quotas and MBO’s (Management by Objections) 12. Removing barriers that rob employees of pride and workmanship.

19. Habit 5: Seek First to Understand, Then to Be Understood-the Principle of Empathic Communication  The most powerful principle of all human interaction is to genuinely seek to understand another deeply before being understood in return.  Through empathic communication we gain clearer understanding of another’s needs, ideas and basic paradigms, also assurance that we are accurately understood as well.  True empathic shares faithfully not only words, ideas, and information, but also feelings, emotions and sensitivities.  In order for Habit 5 to achieve maximum effectiveness, Habits 1 thru 4 must be developed.  Every one of Deming’s 14 Points rests upon this habit of Empathic Communication.

20. Habit 6: Synergize- the Principle of Creative Cooperation  The whole is greater than the sum of its parts-attained through synergy, fostered and nurtured through empowering management styles and supportive structures and systems.  With synergy comes the crowning achievement of Total Quality.  Every issue addressed in each of Deming’s 14 points is resolved through synergy.

21. Habit 7: Sharpen the Saw- The Principle of Continuous Improvement  People and organizations have four major needs or characteristics: Physical or economic Intellectual or psychological Social or emotional Spiritual or holistic  * Consistent commitment and continued performance is key to overall continuous improvement in all other areas.  Applying Habit 7 is the principle that enables maximum effectiveness in living all the other habits.