1. Total Quality Management Application to Business & Public Sector (Ekaterina Kuznetsova) Colloquium «Program and Policy Evaluation: Methodology and Application» Moscow, 23. November 2006 State University - Higher School of Economics & Institute for Policy and Program Evaluation www.hse.ru www.iopp.ru

2. Contents Case-studies: TQM in Business TQM in Business TQM in Public Sector TQM in Public Sector

3. TQM in BUSINESS

4. The EFQM Excellence Award is given when the Jury identifies an exceptional organisation with excellent and sustainable results across all areas, and demonstrates a highly effective, efficient and continuously improved management system

5. Insight: People Development and Involvement at CCINCA CCINCA, a 2005 EFQM Excellence Award Finalist, sets an example with a structured people management system with the objective of improving customers and results orientation. CCINCA, a 2005 EFQM Excellence Award Finalist, sets an example with a structured people management system with the objective of improving customers and results orientation. CCINCA has managed to achieve a culture of improvement and trust. CCINCA has managed to achieve a culture of improvement and trust.

6. Goal: to change and to modernize the management system to cope with new competitive challenges Goal: to change and to modernize the management system to cope with new competitive challenges Objective: to be a public company managed as a private one with strong customer and results orientation Objective: to be a public company managed as a private one with strong customer and results orientation Implementation: people development and involvement + improvement of people management system Implementation: people development and involvement + improvement of people management system

7. KEY SUCCESS FACTOR Implementation of a structured people management system

8. The main elements of the system (1) HR policy which gives the orientations; HR policy which gives the orientations; A competence development and training process; A competence development and training process; An internal communication process; An internal communication process; An empowerment process; An empowerment process; An evaluation and recognition process An evaluation and recognition process

9. The main elements of the system (2) A set of assessment tools annual EFQM self-assessment; annual EFQM self-assessment; annual employee satisfaction survey; annual employee satisfaction survey; manager satisfaction survey; manager satisfaction survey; key performance indicators for each HR process; key performance indicators for each HR process; an annual service contract review with directors; an annual service contract review with directors; some online surveys for training and communication some online surveys for training and communication

10. Results achieved Deployment of the annual individual appraisal interview throughout the group, one part concerning skills and another part concerning performance. Deployment of the annual individual appraisal interview throughout the group, one part concerning skills and another part concerning performance. Recognition, through financial and non financial rewards, linked to individual achievement of objectives. Recognition, through financial and non financial rewards, linked to individual achievement of objectives. 100% employees involvement in the improvement programme. 100% employees involvement in the improvement programme. Creation of a culture of improvement that is reinforced by the deployment of improvement process and assessment tools in each of the activities. Creation of a culture of improvement that is reinforced by the deployment of improvement process and assessment tools in each of the activities. Increased of the training budget to around 6% of the payroll and structure of the training processes to improve employee satisfaction with training. Increased of the training budget to around 6% of the payroll and structure of the training processes to improve employee satisfaction with training.

11. Do: Get your top management committed to people development and convinced that the implementation of a people management system is a key factor in the global performance; Get your top management committed to people development and convinced that the implementation of a people management system is a key factor in the global performance; Work closely with managers and employees on the design of new HR tools to understand their needs and to provide everyone with a clear understanding of the project goals and objectives; Work closely with managers and employees on the design of new HR tools to understand their needs and to provide everyone with a clear understanding of the project goals and objectives; Take the time to deploy the tools progressively; Take the time to deploy the tools progressively; Empower your managers through the use of new HR tools; Empower your managers through the use of new HR tools; Regularly review the effectiveness of the system in assessing the satisfaction of employees and managers; Regularly review the effectiveness of the system in assessing the satisfaction of employees and managers; Take the time to communicate on the project at all levels; Take the time to communicate on the project at all levels; Ensure training and coaching for managers and their teams. Ensure training and coaching for managers and their teams.

12. Don’t: Don’t deploy a new tool for all employees at the same time: take the time to test; Don’t deploy a new tool for all employees at the same time: take the time to test; Don’t start the implementation of a new tool using criteria which have not been worked out by the employees and the managers themselves; Don’t start the implementation of a new tool using criteria which have not been worked out by the employees and the managers themselves; Don’t forget to review; Don’t forget to review; Don’t hesitate to coach people if difficulties are encountered Don’t hesitate to coach people if difficulties are encountered

14. TQM in Public Sector

15. DOES IT WORK?

16. Current political context of government focus on short-term activities that do not fundamentally change systems (emphasis on the quick fix) focus on short-term activities that do not fundamentally change systems (emphasis on the quick fix) crisis driven rather than preventative crisis driven rather than preventative driven by current economic conditions rather than long-term conditions driven by current economic conditions rather than long-term conditions characterized by mistrust between political and civil service arms of government characterized by mistrust between political and civil service arms of government top-down decision making prevalent top-down decision making prevalent highly adversarial positions of political parties highly adversarial positions of political parties

17. The Pennsylvania Department of Transportation’s Quality Program

18. Revitalization = complete overhaul of poorly performing public organizations into high-performance organizations Because of declines in service delivery, inadequate funding, cutbacks, low morale, lack of management capacity, lack of a sense of mission, loss of political support and public credibility

19. Two Decades of Quality Management at PENNDOT, 1982-2002

20. Two Years of Innovation and Change at PENNDOT, 1999-2001

22. Thank You