LEADERSHIP

85/15 Rule

This is the thumb rule of quality management.

85 % of the problems are due to faulty systems

15 % are due to behavior of employees
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Means :
top management is responsible for the
faulty system.

Hence:
top management is the most important
agent for correcting a faulty system.
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The leader who broke away from the traditional style and
adopted TQM based style of management, have been well
rewarded.

For senior management the prerequisite for TQM is to have firm

believe that:
a) It is the only way to do the business and manage the organization.
b) It will lead the organization to prosperity in the long run.
c) It will build quality values in the organization.
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Top management should have faith that :

 Customers are the only reason for being in business and

hence they should be delighted.
 Zero defect is possible to achieve.
 Team work results in a win-win situation
 CEO has to lead the quality movement
 Proper communication
 Continuous improvement is needed in processes.
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Top management Principles & strategies

For effective TQM leadership

TQM – Defined: ( as per ISO)

A management approach of an organization,

centered on quality
based on the participation of all members
and aiming at long term success
though customer satisfaction
and benefits to the member of organization & society.
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Top management Principles & strategies

For effective TQM leadership
TQM – Defined: ( as per BSI - UK)

Management philosophy and organizational practices,

that aims to harness the human and material resources
of an organization
in the most effective way
to achieve the objective of the organization.
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Top management Principles & strategies
For effective TQM leadership
TQM approach/ method needs to be:
• Led by the CEO
• Through involvement of all the employees
• In continuous process improvement

Thus TQM calls for hard work on the part of management. The crux
of the problem in implementing TQM is the inability of the senior
management in investing time on people.
• It takes time to change people from the traditional to modern
work culture.
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TQM Elements:
Consistency of
Purpose
Training Focus on
process

Team work
TQM Quantitative
methods

Continuous process
improvement
Leadership

Customer focus Supplier

partnership
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DEMING`s - 14 points for Top management:

1. Create consistency of purpose for improvement of products and

services:

If the employee understands that the company is interested in

long term success, this will infuse a constant quest of innovation
and reiterate their intention to practice TQM.
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DEMING`s - 14 points for Top management:

2. Adapt the new philosophy:

The new philosophy means elimination of wastes, delays

and radically changing the work culture.
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DEMING`s - 14 points for Top management:

3. Cease dependence on mass inspection:

TQM is aimed at

eliminating inspection

in the long run

through prevention.
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DEMING`s - 14 points for Top management:

4. End the practice of awarding business on the basis of price tag alone:

The supplier should be selected on following basis:

a) Quality
b) Price
c) Delivery
d) Service

Means PRICE should not be the prime criteria.

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DEMING`s - 14 points for Top management:

5. Constantly improve the system of production and services:

TQM is based for continues improvement of processes,

so the quality improves continuously.

i. Kaizen
ii. Six Sigma
iii. ISO
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DEMING`s - 14 points for Top management:

6. Institute training:

Management needs training to learn

about the organization, all the way
from incoming material to the
customer.
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DEMING`s - 14 points for Top management:
7. Adopt & institute leadership:

Management should learn how to become a leader.

Leader Manager
Proactive Reactive
Coaches Finds faults
Under stand process Does not care to understand
Moves around Sits in his chair
Improves process Maintains process
Communicates frequentlyCommunicates rarely
Seeks suggestion Asks questions
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DEMING`s - 14 points for Top management:

8. Drive out fear:

If freedom to express new ideas is curtailed,

then the employees will continue s to do what they are doing.

This will stun improvement because fear is detrimental for progress.

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DEMING`s - 14 points for Top management:

9. Break down barriers between staff areas:

Every team may prove that it is the best and

over the years become watertight compartments

and stops communication.

TQM dictates removal of such barriers.

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DEMING`s - 14 points for Top management:

10. Eliminate slogans, exhortation and targets for the work force:

When the poster , slogan is directed towards the wrong person

it creates meaning less acumen in ones mind and creates frustration.

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DEMING`s - 14 points for Top management:
11 (a). Eliminate numerical quota for the work force:

Quantity will force to ignore quality

It assumes that worker stays idle during work  this is not right approach.

11 (b). Eliminate numerical goals for the people in management:

It should arise out of improving process not end up like new year promises.
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DEMING`s - 14 points for Top management:

12. Remove barriers that rob people of pride of workmanship:

Every employee should be encouraged to work as much as he can

or remove what he dose not like to perform.

Removing the obstacles to this pursuit is the responsibility of the top

management.
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DEMING`s - 14 points for Top management:

13. Encourage education and self improvement for every one:

If an employee improves his education and training,

It will ultimately be beneficial to the organization
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DEMING`s - 14 points for Top management:

14. Take action to accomplish the transformation:

The management should break the status quo and improve their

 employees
 processes
 systems
 products

Through PDSA cycle.

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TEN (10) Strategies for Top management:
Now we will look at some of the strategies advocated by the experts to be
adopted by the CEO to lead the organizations on TQM principles:

1. Proactive management
2. Adventurous and bold change management
3. Do It Right First Time ( DIRFT)
4. Continuous preventive action
5. Cares for little things and accumulate gains
6. Ensure economic performance
7. Practice management by walking around (MBWA)
8. Measure for success
9. Never rest on laurels, continue to improve
10. Build a virtual organization
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TEN (10) Strategies for Top management:
 Proactive management: (01)

If the management is actively involve & engage in managing the

organization, then they will be able to foresee the problem.

The corrective action resulting out of failure is only a post mortem.

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TEN (10) Strategies for Top management:
 Adventurous and bold change management: (02)

No body likes change  as they feel they have to learn and work a new
avenue

Change is essential  re-thinking and restructuring should be ongoing,

regarding customer need and employee jobs

Change agent needs: to be adventurous  dreamer with necessary drive

to be bold  self confidence /power to convince
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TEN (10) Strategies for Top management:
 Do It Right First Time ( DIRFT) : (03)
The leaders in the organization, before making business decisions should
carry out the following sequence of activities:

 Plan the decision – weigh the pros and cons

 Foresee the impact on the organization
 Take opinion of the right people
 Involve the concerned
 Implement the decision
 Persist
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TEN (10) Strategies for Top management:
 Do It Right First Time ( DIRFT) :

I. Why people don`t do it right the first time?

II. Why things are done wrong?
III. What are the problems of not doing the right thing the first time?

Right the first time and every time :

Set right goal  select right personnel  establish right process

For
Choosing durable raw material and right machinery
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TEN (10) Strategies for Top management:
 Do It Right First Time ( DIRFT) :

Phillip Crosby three simple requirements for DIRFT:

I. Define the requirement for each employee

II. Provide the wherewithal to achieve the requirement
III. keep on motivating and encouraging them
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TEN (10) Strategies for Top management:

 Continuous preventive action (04)

a. Corrective action is a post-mortem and dose not not satisfy the

customer.

b. Preventive actions have to be continuous and should cut across all

sections in the organization.

c. Preventive action needs to be taken at periodic intervals, as an

organization cannot afford to stop after taking one or two preventive
actions.
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TEN (10) Strategies for Top management:
 Cares for little things and accumulate gains: (05)

This continuous problems aims at one step at a time. So high aims should be
scaled with small steps.

I. Take care of each and every tool and accessories , what ever monetary
value they have.

II. Communication is a barrier if not handled properly and timely and this
communication should be done with all levels in fashion prerequisite.
( MBWA would help)

iii. Keep on collecting such small gains to hatch the bigger one.
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TEN (10) Strategies for Top management:

 Ensure economic performance: (06)

I. If organization is implementing TQM correctly, then the bottom line

will improve automatically.

II. Quality is attached with productivity as well. Max revenues,

motivated employee will lead to low and then least wastage and
rework. Thus will be coupling with high productivity.

III. Educate about performance and need to talk over it again and again.
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TEN (10) Strategies for Top management:
 Practice management by walking around (MBWA) (07)

CEO needs to visit various work spots for getting direct

and first hand information from the employees, the customers,
and the suppliers by listening, teaching and facilitating.

This should always be unannounced.

The CEO needs to make the employee feel comfortable to

speak with them freely and frankly AND …….
…..also needs to assure that the required action will be taken
through chain of command and the supervisors authority will not
be effected.
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TEN (10) Strategies for Top management:

 Measure for success: (08)

Measuring and analyzing the feedback from customer (internal &

external) to measure how well the organization is performing to fulfill
the customers needs and satisfaction.

Every employee should be helped to measure and report performance

………… HIS OWN PERFORMANCE.

Its parameters are 3 P`s : Process Product

Personnel
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TEN (10) Strategies for Top management:

 Never rest on laurels, continue to improve: (09)

The organization should aim for doubling the sales turnover to double
every two years without additional manpower or machinery because of;

a. Cutting down of the cost by doing right thing, right from the first time.

b. A higher output of the motivated employees through extensive training.

Microsoft is one of its example

Grameen Bank is another example
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TEN (10) Strategies for Top management:
 Build a virtual organization: (10)

Days of vertical integration are gone.

The right way is to be selective in manufacturing and buying the non-

critical items for the market from others who are specializing and selling
at much lower cost with high quality, thus leading to virtual integration.

a) Requirements for vertical integration:

b) Identify the most critical parts
c) Identify the other parts
d) Develop/identify vendors for the other parts.
e) Continuously increase sub contracting.
 Implementation Process
 Must begin from top management, most important CEO
commitment
 Cannot be delegated (indifference, lack of involvement cited as
principle reason for failure)
 Top/senior management must be educated on TQM philosophy
and concepts, also visit successful companies, read books,
articles, attend seminars
 Timing of implementation – is the org ready, re-organization,
change in senior personnel, current crisis – then need to
postpone to favourable time
 Need a roadmap/framework for implementation
 Formation of Quality Council – policies, strategies, programmes
 Implementation Process
Quality council job–
1. Develop core values, vision statement, mission statement, and quality
policy statement
2. Develop strategic long-term plan with goals and annual quality
improvement program with objectives
3. Create total education and training plan
4. Determine and continually monitor cost of poor quality
5. Determine performance measures for the organization, approve them for
functional areas, and monitor them.
6. Continually determine projects that improve processes, particularly those
affect external and internal customer satisfaction
7. Establish multifunctional project and departmental or work group teams
and monitor progress
8. Establish or revise the recognition and reward system to account new way
of doing business. Must begin from top management, most important
CEO commitment
 Implementation Process
Core values
- foster TQM behaviour and define the culture
- need to develop own values
Examples from Malcolm Baldrige National Quality Award
1. Customer-driven excellence
2. Visionary leadership
3. Organizational and personal learning
4. Valuing employees and partners
5. Agility
6. Management for innovation
7. Management by fact
8. Systems perspective
9. Social responsibility
10. Focus results and creating value