Rhegina Mariztelle B Forte

Lloyd’s Register Group

I. Background

The Lloyd’s Register Group (LRG) provides independent assurance for quality to companies operating
high-risk, capital-intensive assets in the energy and transportation sectors, to enhance the safety of life,
property, and the environment. This helps its clients to create safe, responsible, and sustainable supply
chains. LRG aims to deliver complete lifecycle and risk management solutions to help ensure the safety,
integrity, and operational performance of assets and systems. LRG employs 8,000 people who work in
186 countries. The company upholds the principle that business assurance is not something the business
does; it defines the business. The management believes that maximum control ensures that their people
and processes are linked to their clients at a performance standard set by the company. The main
objective of the company is to gain a significant standing in the market as their quality system becomes
integrated into their normal everyday activity.

II. Statement of the Problem

a. How can Lloyd’s Register Group align the individual business strategies of the employees
with the company’s established standards through employee empowerment? (Refer to
Page1 of 05 Handout 1).

After the management has reviewed all the areas of the company that needs to be improved particularly
for their people and their system; (1) they decided that refresher trainings must be conducted in order
to align the individual business strategies of their employees to the business strategies established by
the company in the first place. (2) The company also plans to set quantifiable targets and goals that will
measure the individual performance of the employees. After all, the goal of the company is to integrate
quality to the core processes of other businesses.

b. What type of total quality tool/continuous improvement method should Lloyd’s Register
Group employ in order to establish a performance metric for the employees? (Refer to
Pages 1-14 of 09 Handout 1.)

For Lloyd’s Register Group, total quality tool/continuous improvement method, I would prefer the use of
cause and effect diagram for often called a “fishbone” diagram, can help in brainstorming to identify
possible causes of a problem and in sorting ideas into useful categories. A fishbone diagram is a visual
way to look at cause and effect. A cause and effect diagram has a variety of benefits:

 It helps teams understand that there are many causes that contribute to an effect.

 It graphically displays the relationship of the causes to the effect and to each other.

 It helps to identify areas for improvement.

 c. How can ISO 9000 contribute to the overall improvement of Lloyd’s Register Group’s
organizational performance? (Refer to Page 1 of 11 Handout 1.)

The Lloyd’s Register Group (LRG) main objective of the company is to gain a significant standing in the
market as their quality system becomes integrated into their normal everyday activity and main goal is
to integrate quality to the core processes of other businesses. ISO 9000 standards help them to develop
effectively document the quality system elements that need to be implemented to maintain an efficient
quality system. ISO 9000 are increasingly being applied to any organization or industry; being used as a
basis for quality management because it can help organizations satisfy their customers, meet regulatory
requirements, and achieve continual improvement.

III. Areas of Consideration

a. It must include details and facts from the case that contribute to the organizational
problem of the company

The following are The Lloyd’s Register Group (LRG) stated problems;

 Individual strategies of the employees do not follow a system or a specific metric of the
company
 The same issue can be observed in the executive performance reviews since they do not follow
a system aside from the financial performance of the company.
 These problem areas are attributed to the “closed-loop top management system” that the
company practices where decisions are centralized to the top management of the company.
 This caused the employees to lose their voice in the continual improvement of the different
processes of the company.
 Some of the clients have also relayed through the feedback system of the company that the
business strategy of each individual employee does not have a significant connection to the
operational performance of the entire company.
 The business strategies of the employees are solely based on a general course instead of a
specific course of action required in a specific situation

IV. Alternative Courses of Action

a. It must contain at least (2) two courses of action for every point stated in the
statement of the problem. It must also present the advantages and disadvantages of
each course of action in resolving the organizational problem.

  PROBLEMS STATED ADVANTAGES DISADVANTAGES

1 Individual strategies of the Employees are free to do Create chaos in the company
employees do not follow a things whatever they want to
 system or a specific metric of Some employees feel happy Hard to monitor their
the company for they are up to employees success and
challenges
2 The same issue can be Less responsibility because of Difficulty in improving
observed in the executive unfollow system employees performance at the
performance reviews since organizational level is complex
they do not follow a system Reviews would be identical or There is no guarantee that
aside from the financial somehow related for executive improved employee
performance of the company and employees performance will lead to
bottom-line improvements in
organizational results
3 These problem areas are Problems are kept within Limited sources of possible
attributed to the “closed-loop Management level solutions
top management system”
that the company practices Small brainstorming chanel Possible solutions must not be
where decisions are interactions good for employees level
centralized to the top
management of the company
4 This caused the employees to Advantage for executive Limited chances for employees
lose their voice in the management
continual improvement of the Continual improvement can be Employees confusion for
different processes of the seen in the company different process in the
company company
5 Some of the clients have also Feedback system as one of the Strategies does not connect to
relayed through the feedback business strategy company performance
system of the company that
the business strategy of each
individual employee does not Clients relayed to business Limited strategies mentioned
have a significant connection strategies of the company for the their clients satisfaction
to the operational
performance of the entire
company
6 The business strategies of the General course of action to Narrow chances of business
employees are solely based follow in implementing stategies
on a general course instead of business startegies
a specific course of action
required in a specific situation

V. Recommendation

a. It must present the best course of action among the presented alternatives in
resolving each organizational problem
Employee empowerment is
necessary at Lloyds Register
Group in order to connect
employees'
individual business plans with
the company's established
standards. By modifying the
company's
closed-loop top management
system, in which decisions are
centralized to the country's top
management, employee
satisfaction can be improved.
Employee empowerment is
necessary at Lloyds Register
Group in order to connect
employees'
individual business plans with
the company's established
standards. By modifying the
company's
closed-loop top management
system, in which decisions are
centralized to the country's top
management, employee
satisfaction can be improved.
Employee empowerment is
necessary at Lloyds Register
Group in order to connect
employees'
individual business plans with
the company's established
standards. By modifying the
company's
closed-loop top management
system, in which decisions are
centralized to the country's top
management, employee
satisfaction can be improved.
Employee empowerment and facilitation is necessary at Lloyds Register Group in order to associate
employees' individual business plans with the company's traditional standards. Looking and exercising
the company problems through amending, strategizing more, and opening channels for more
brainstorming, feedbacks and decision making the upper management and company must be finalizing.
Inclusion of employees increases a well-managed environment for both management and employees,
added rapport and great connections to the whole company.

VI. Management Lessons Learned

a. It must discuss the takeaways from the case and the relevant things that the
company should do or not do in order to avoid the given organizational problems.

Citing the different company problems in Lloyds Register Group (LRG), we can say the problems
continually involved weather it’s a big or small company. Main objective and company goals are
available and being practiced in the company, however LRG are still facing some tremendous challenges
that involves employees, top management, clients, strategies, competitiveness resulting to employees
losing their voice in the continual improvement of the different processes of the company. LRG’s
decision-making is centralized at the top, giving employees the impression that they are being
disregarded and that they do not have a role in the endless development process.