CASE STUDY: LLOYD’S REGISTER GROUP (LRG)

I. BACKGROUND

To improve the safety of people, property, and the environment, the Lloyd Register Group
(LRG) offers independent assurance for quality to businesses operating high-risk, capital-
intensive assets in the transportation and energy sectors. This supports the establishment
of sustainable, ethical, and safe supply chains for its client. Since 2017, safety has been at
the center of LRG's operations, and the firm dedicates time, funds, and resources to
achieving the goals of Lloyd's Register, which include safeguarding advanced transportation,
property, life, and engineering education and research. With their extensive knowledge
base, unbiased counsel, wealth of expertise, and intimate connections, LRG contributes to a
safer society. LRG is a global leader in standards assessment as well. As their quality
becomes ingrained in their routine daily operations, the company's primary goal is to
establish a notable position in the market.
The standards are either LRG's own creations or those of significant independent groups.
LRG aims to provide full lifecycle and risk management solutions to help ensure the safety,
integrity, and operational performance of assets and systems, from design and new build to
in-service operations and decommissioning. In most cases, clients are in charge of large-
scale, very valuable assets where errors can have a significant financial and environmental
impact.
Despite the company's clearly defined objectives, it is apparent that individual employee
tactics do not adhere to a set method or metric. The executive performance review exhibits
a similar problem, as it lacks a system aside from the company's financial performance.
These issues are attributed to the company's "closed-loop top management system," which
centralizes decision-making authority at the top and silences employees' voices regarding
the company's ongoing efforts to improve its various processes.
The organization also intends to establish measurable objectives and targets that will track
each worker's success. Ultimately, the company's objective is to incorporate quality into the
other companies' basic processes.

II. STATEMENT OF THE PROBLEM

a. The Lloyd's Register Group believes that rather than adhering to the same rules,
individual business strategies should be aligned with employee empowerment through
 improved work outcomes and increased employee satisfaction. This creates a company
practice that centralized the company's top management.

b. The Check Sheet was the overall quality tool/continuous improvement method that
Lloyd's Register Group should have used to create a performance metric for the
workers. It's an organized form for gathering and evaluating data. LRG will have more
time to analyze and understand the data gathered if gathering dates is made easier.
c. The Quality Manual and Quality Objectives are the goals related to quality and must be
in accordance with the company's quality policy. Lloyd's Register Group's contribution to
organizational performance improvement through ISO 9000 would imply a Quality
Management System (QMS).

III. AREAS OF THE CONSIDERATION

The company observed that non-adherence to a system or particular metric was evident in
the employee strategies. The executive performance reviews exhibit a similar problem in
that they lack a framework that takes into account factors other than the business's
financial performance. Rather than following a particular course of action that is necessary
in a particular situation, the employees' business strategies are only based on general
guidelines. An executive performance review also demonstrates this. The company's close-
slope management system, which concentrates decision-making at the top, is another.
Employees have been left out of the process of the company's ongoing process
improvement as a result of this. Through the company's feedback system, a few clients have
also expressed that there is no meaningful correlation between an employee's business
strategy and the overall operational performance of the company.

IV. ALTERNATIVE COURSES OF ACTION

a. Employee Empowerment

An employee will find their work satisfying when they have a voice in how their task is
carried out, and employee empowerment can help Lloyd Register Group align individual
business strategies with the company establish standards. The first action is increasing
employee satisfaction by doing away with the company's group loop top management
system and letting employees take part. The second action can be career development
by giving employees opportunities to grow their skills and take on more challenging
work.
 Advantages:

 Increase employee’s satisfaction

 Career Development

Disadvantages:

 Increase level of business risk

 Decrease efficiency or productivity

b. Established Performance Metrics

Parato charts or check sheets are the kind of total quality or continuous improvement
method that Lloyd Register Group should use to create a performance metric for the
staff. Plotting the variables or specifics that must be assessed in order to assess each
employee's performance along the horizontal axis in decreasing order of frequency is
known as a parametric chart or bar chart.

V. RECOMMENDATION

I suggest ISO 9000 because, as experts and companies that have successfully completed the
demanding certification process at Lloyd's Register Group attest, companies that designate
an individual to oversee the process have a far higher chance of managing it well and
producing results than companies with unclear reporting lines. It must outline the most
effective plan of action among the options offered to address every organizational issue.

VI. MANAGEMENT LESSONS LEARNED

The management must understand that they can always make things right; they must avoid
the "closed-loop top management system," which denied the staff a voice in the ongoing
enhancement of the various business processes. Strategy and operational performance had
minimal to no relationship before the program.