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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 1
Chapter 5
Leadership and Strategic
Planning
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 2
Leadership
The ability to positively influence
people and systems to have a
meaningful impact and achieve results
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 3
Strategic Planning
The process of envisioning an
organizations future and developing
the necessary procedures and
operations to achieve that future.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 4
The Baldrige Leadership Triad
Leadership
Strategic
Planning
Customer andMarket Focus
Operations
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 5
Executive Leadership
Defining and communicating business directions
Ensuring that goals and expectations are met
Reviewing business performance and takingappropriate aciton
Creating an enjoyable work environment
Soliciting input and feedback from customers
Ensuring that employees are effective contributors
Motivating, inspiring, and energizing employees Recognizing employee contributions
Providing honest feedback
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 6
Core Leadership Skills
Vision
Empowerment
Intuition
Self-understanding
Value congruence
Dale Crownover, President, Texas Nameplate Co.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 7
Leading Practices - Leadership Create a customer-focused strategic vision and clear
quality values
Create and sustain leadership system and
environment for empowerment, innovation, andorganizational learning
Set high expectations and demonstrate personalcommitment and involvement in quality
Integrate quality values into daily leadership andmanagement and communicate extensively
Integrate public responsibilities and communitysupport into business practices
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 8
Leadership Theories
Trait approach
Behavioral approach
Contingency (situational) approach
Role approach Emerging theories:
Attributional theory
Transactional theory
Transformational leadership theory
Substitutes for leadership theory
Emotional intelligence theory
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 9
Zenger-Miller
Leadership Competencies
Setting or sharing a vision
Managing a change
Focusing on the customer
Dealing with individuals
Supporting teams andgroups
Sharing information
Solving problems, makingdecisions
Managing businessprocesses
Managing projects
Displaying technical skills
Managing time and resources
Taking responsibility
Taking initiative beyond jobrequirements
Handling emotions
Displaying professional ethics
Showing compassion
Making credible presentations
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 10
Leadership System
Refers to how decisions are made,
communicated, and carried out at all levels;
mechanisms for leadership development,self-examination, and improvement
Effectiveness of leadership system depends
in part on its organizational structure
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 11
Common Organizational Structure
Customers
Customerteam
Customerteam
Customerteam
Systems and support services
Executive steering committee
CEO
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 12
Leadership and Public
Responsibilities
Ethics
Health, safety, and environment
Community support
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 13
Strategic Planning
Formal strategy includes:
Goals to be achieved
Policies to guide or limit action Action sequences, or programs,
that accomplish the goals
A strategy is a pattern or plan that integrates anorganizations major goals, policies, and action
sequences into a cohesive whole.
James Quinn
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 14
Tasks Accomplished
by Strategic Planning
Understand important customer and operational
requirements
Optimize use of resources and ensure bridging
between short-term and longer-term
requirements
Ensure that quality initiatives are understood at
all organizational levels
Ensure that work organizations and structures
will facilitate accomplishment of strategic plan
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 15
Leading Practices -
Strategic Planning
Active participation of top management,
employees, customers, suppliers
Systematic planning systems for strategy
development and deployment, including
measurement, feedback, and review
Use of a variety of external and internal data
Align short-term action plans with long-term
strategic objectives, communicate them, and
track progress
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 16
Strategic Planning Process
Mission Vision Guiding Principles
Environmental assessment
Strategies
Strategic Objectives
Action Plans
Broad statements of direction
Capabilities and risks
Things to change or
improve
Implementation
Reason for existence Future intent Attitudes and policies
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 17
Mission
Definition of products and services,markets, customer needs, and distinctivecompetencies
Solectron: to provide worldwideresponsiveness to our customers by offeringthe highest quality, lowest total cost,customized, integrated, design, supply
chain, and manufacturing solutions throughlong-term partnerships based on integrityand ethical business practices.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 18
Vision
Where the organization is headed and whatit intends to be
Brief and memorable - grab attention
Inspiring and challenging - creates excitementDescriptive of an ideal state - provides
guidance
Appealing to all stakeholders - employees can
identify with Solectron: Be the best and continuously
improve
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 19
Policy Deployment
(Hoshin Kanri)
Top management vision leading to long-term
objectives
Deployment through annual objectives andaction plans
Negotiation for short-term objectives and
resources (catchball) Periodic reviews
See Figure 5.7!
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 20
The Seven Management
and Planning Tools
Affinity diagrams
Interrelationship digraphs
Tree diagrams
Matrix diagrams
Matrix data analysis
Process decision program charts
Arrow diagrams
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 21
Leadership in the Baldrige Criteria
The LeadershipCategory examines how an organizationssenior leaders address values, directions, andperformance expectations, as well as a focus oncustomers and other stakeholders, empowerment,innovation, and learning. Also examined is how the
organization addresses its responsibilities to the publicand supports its key communities.
1.1 Organizational Leadership
a. Senior Leadership Direction
b. Organizational Performance Review1.2 Public Responsibility and Citizenship
a. Responsibilities to the Public
b. Support of Key Communities
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 22
Strategic Planning
in the Baldrige CriteriaThe Strategic PlanningCategory examines how anorganization develops strategic objectives and action
plans. Also examined are how chosen strategic objectives
and action plans are deployed and how progress is
measured.
2.1 Strategy Development
a. Strategy Development Process
b. Strategic Objectives2.2 Strategy Deployment
a. Action Plan Development and Deployment
b. Performance Projection
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