Building and Sustaining Performance Excellence in Organizations
Published byModified over 6 years ago
Presentation on theme: "Building and Sustaining Performance Excellence in Organizations"— Presentation transcript:
1 Building and Sustaining Performance Excellence in Organizations Chapter 9Building andSustainingPerformanceExcellence inOrganizations
2 Key Idea IntroductionA total quality strategy requires significant changes in organization design, process, and culture.
3 Obstacles to TQ Implementations Lack of a strong motivationLack of timeLack of a formalized strategic plan for change
4 Selling the TQ Concept Learn to think like top executives Position quality as a way to address priorities of stakeholdersAlign objectives with those of senior managementMake arguments quantitativeMake the first pitch to someone likely to be sympatheticFocus on getting an early win, even if it is smallEnsure that efforts won’t be undercut by corporate accounting principlesDevelop allies, both internal and externalDevelop metrics for return on qualityNever stop selling quality
5 Corporate Culture and Change Corporate culture is a company’s value system and its collection of guiding principlesUnderstanding culture and its importanceCultural values often seen in mission and vision statements
6 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.
7 Baldrige Core Values and Concepts Focus on the futureManaging for innovationManagement by factSocial responsibilityFocus on results and creating valueSystems perspectiveVisionary leadershipCustomer DrivenOrganizational and personal learningValuing employees and partnersAgility
8 Cultural Change Change can be accomplished, but it is difficult Imposed change will be resistedFull cooperation, commitment, and participation by all levels of management is essentialChange takes timeYou might not get positive results at firstChange might go in unintended directions
9 Key Idea Cultural Change Impatient managers often seek immediate cultural change by adopting off-the-shelf quality programs and practices, or by imitating other successful organizations. In most cases, this approach is setting themselves up for failure.
10 Building on Best Practices Universal best practicesCycle time analysisProcess value analysisProcess simplificationStrategic planningFormal supplier certification programs
11 Best Practices: Infrastructure Design (1 of 3) Low performersprocess management fundamentalscustomer responsetraining and teamworkbenchmarking competitorscost reductionrewards for teamwork and quality
12 Best Practices: Infrastructure Design (2 of 3) Medium performersuse customer input and market researchselect suppliers by qualityflexibility and cycle time reductioncompensation tied to quality and teamwork
13 Best Practices: Infrastructure Design (3 of 3) High performersself-managed and cross-functional teamsstrategic partnershipsbenchmarking world-class companiessenior management compensation tied to qualityrapid response
14 Implementing Total Quality: Key Players Senior managementMiddle managementWorkforce
15 Developing Positive Quality Culture-- Five Key Behavior Create and maintain an awareness of quality.Must provide evidence of mgt leadership, such as serving on a quality council.Must encourage self-development and empowerment.Must develop opportunities for employee participation to inspire action.Must provide recognition and rewards.
16 Key Idea Change Management Organizations contemplating change must answer some tough questions, such as, Why is the change necessary? What will it do to my organization (department, job)? What problems will I encounter in making the change? and perhaps the most important one — What’s in it for me?
17 Change Management as a Process Think of change management as a process.Three basic stepsQuestioning the organization’s current state.Developing new approaches—a state of flux.Institutionalizing the new behaviors and attitudes.
18 Change Management at American Express Scope the changeWhy are we doing this?Create a visionWhat will the change look like?Drive commitmentWhat needs to happen to make the change work?Accelerate transitionHow are we going to manage the effort?Sustain momentumHow can we leverage what we learned?
19 Strategic vs. Process Change Strategic change is broad in scope and stems from strategic objectives, which are generally externally focused and relate to significant customer, market, product/service, or technological opportunities and challenges.Process change is narrow in scope and deals with the operations of an organization. An accumulation of continuously improving process changes can lead to a positive and sustainable culture change.
21 Key Idea Implementation Barriers Numerous barriers exist to successfully transform organizations to a sustained culture of total quality. Understanding these barriers can help significantly in managing change processes.
22 Implementation Barriers Lack of constancy of purposeLack of holistic viewLack of understanding cultural issuesLack of alignment
23 Common Mistakes in TQ Implementation (1 of 3) TQ regarded as a “program”Short-term results are not obtainedProcess not driven by focus on customer, connection to strategic business issues, and support from senior managementStructural elements block changeGoals set too low“Command and control” organizational culture
24 Common Mistakes in TQ Implementation (2 of 3) Training not properly addressedFocus on products, not processesLittle real empowerment is givenOrganization too successful and complacentOrganization fails to address fundamental questionsSenior management not personally and visibly committed
25 Common Mistakes in TQ Implementation (3 of 3) Overemphasis on teams for cross-functional problemsEmployees operate under belief that more data are always desirableManagement fails to recognize that quality improvement is personal responsibilityOrganization does not see itself as collection of interrelated processes
26 Six Stages of Quality Life Cycle AdoptionRegenerationEnergizingMaturationLimitation or stagnationDecline
27 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.
28 Learning Organization Peter Senge… an organization that is continually expanding its capacity to create its future.adaptive learning & generative learning
29 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 SengeLeaders must develop the capability to integrate creative thinking and problem solving throughout the organization.
30 Key Activities of Learning Organizations Systematic problem solvingExperimentation with new approachesLearning from their own experiences and historyLearning from the experiences and best practices of othersTransferring knowledge quickly and efficiently throughout the organization
31 Key Idea Self-Assessment Process Self-assessment should identify both strengths and opportunities for improvement, creating a basis for evolving toward higher levels of performance. Thus, a major objective of most self-assessment projects is the improvement of organizational processes based on opportunities identified by the evaluation.
32 Self Assessment: Basic Elements Management involvement and leadershipProduct and process designProduct controlCustomer and supplier communicationsQuality improvementEmployee participationEducation and trainingQuality information
33 Importance of Follow-Up of Self-Assessment Results Many organizations derive little benefit from conducting self-assessment and achieve few of the process improvements suggested by self-studyReasons:Managers do not sense a problemManagers react negatively or by denialManagers don’t know what to do with the information
34 Key Idea Importance of Follow-up Following up requires senior leaders to engage in two types of activities: action planning and subsequently tracking implementation progress.
35 Leveraging Self-Assessment Findings Prepare to be humbledTalk through the findingsRecognize institutional influencesGrind out the follow-up
36 Implementing ISO 9000Start with a quality policy that identifies key objectives and basic proceduresDevelop a quality manual to document the proceduresUse internal audits to maintain proceduresProvide adequate resources
37 Implementing Six Sigma Committed leadershipIntegration with existing initiatives, business strategy, and performance measurementProcess thinkingDisciplined customer and market intelligence gatheringA bottom line orientationLeadership in the trenchesTrainingContinuous reinforcement and rewards