Download Leadership Theories

Leadership and Strategic
Planning
Dr Ali Sajid,
[email protected]
What is Leadership?
• Leadership is the
ability to positively
influence
people
and systems under
one’s authority to
have a meaningful
impact and achieve
important results.
• Leaders may seek to motivate employees and
develop enthusiasm for quality.
• Actions often speak louder than words.
Leadership
Leadership is defined as influence, the art or process of influence
people so that they will strive
willingly and enthusiastically toward
the achievement of group goals.
Leadership
What do Leaders do?
• Leaders create clear
and visible quality
values, and integrate
these values into the
organization’s.
Strategy?
• Strategy is the pattern of decisions that
determines and reveals a company’s goals, policies,
and plans to meet the needs of its stakeholders.
THINGS ARE
MANAGED,
PEOPLE ARE LED.
Leadership for Quality
• Leadership recognize
radical org changes
taking place today as
opportunities to move
closer to TQ.
Leadership for Quality
Leadership is “driver” of entire quality system.
Without leadership, a TQ initiative simply
becomes “flavor of the month,” which is major
reason that total quality efforts fail in many org.
Leadership is Many Things!
• Patient, usually boring coalition building.
• Purposeful seeding of cabals that one hopes
will result in the appropriate ferment in the
bowels of the org.
It is altering agendas so that new priorities get
enough attention.
• It is being visible when things going right, &
invisible when working well.
Leadership For Quallity
• Senior Mgr must play many important roles
as leaders:
• Defining and communicating business
directions.
• Ensuring that goals and expectations are
met.
• Reviewing business performance and taking
appropriate action.
• Creating an enjoyable work environment that
promotes
creativity,
innovation,
and
continual improvement.
Leadership For Quality
• Soliciting input & feedback form customers
• Ensuring that employees are effective
contributors to the business.
• Motivating,
inspiring,
&
energizing
employees.
• Recognizing employee contributions.
• Providing honest feedback.
Executive Leadership for Quality
• Leadership & relationship
with Quality is one of leastunderstood
concepts
in
Pakistani business.
• Many theories – no single
approach
adequately
captures essence of the
concept.
•Executive Leadership for Quality -- focuses on
roles of sr mgrs in guiding an org to fulfill its
mission & meet its goals.
•Play many important roles as leaders.
Individual Leadership
Individual leadership – revealed through
• Maintaining focus & discipline to consistently
complete jobs
• Proactive in identifying & solving problems
• Working for win-win agreements
• Making continuous learning a personal habit
Individual Leadership
• Team leadership is seen by making those
around you successful
• By removing barriers to team performance
• Establishing good lines of communication
• Resolving problems
• Orgl leadership is manifest in clear values
Individual Leadership
• Creating a competitive advantage
• Customer and market focus
• Continual learning.
Effective leadership for Quality
• Effective leadership -- five core leadership skills:
–empowerment
– vision
–intuition
– self-understanding
– value congruence
• Leaders are visionaries
•Manage for the future, not the past.
Leadership Empowering Employees
• Leadership empower employees to assume
ownership of problems or opportunities, & to be
proactive in implementing improvements & making
decisions in best interests of org.
• At Motorola, dept had Participative Mgt Process
teams— 8 - 12 members who set objectives to
support corporate goals.
• Individual employees develop goals & plans, track
progress & receive bonuses based on successful &
timely achievement of goals.
Ingredients of Leadership
Leaders envision the
future; they inspire org
members & chart the
course of the
organization.
Effective leadership for Quality
• They create mental &
verbal pictures of
desirable future states and share these visions
with their
organizational partners, including
customers, suppliers, and employees.
• Vision of Bob Galvin & David Kearns led to the
“Total Quality Transformations” at Motorola &
Xerox.
Why Vision is Essential
• Vision refers to
• A picture of future with some
implicit or explicit commentary
on why leadership should strive
to create that future.
Leaders Create a Shared Vision
Strategic & org vision, image of
operations of the org .
future
Attempt to articulate desired company of the
future
. Visions provide a framework for action
An emotional appeal for org members.
Leadership to Create a Shared Vision
Vision- a strong guide to people’s
behavior, take great pains to outline
business rationale, org benefits, &
expected outcomes.
A clear, engaging visions is critical
to successful Process,
but way vision is presented to
employees affects implementation
itself.
Nature of Effective Vision
Word vision connotates something grand or
mystical,
but the direction that
guides successful transformations is often
simple & mundane.
A Good Vision
•Serves three important purposes.
1) Clarifying “general direction for
change/improvement ”
2) “Motivates people to take action in right direction,
even if initial steps are personally painful.
3) Helps coordinate action of different people, in a
remarkably fast & efficient way.
VISION
An orientation to customers,
A focus on employees,
A statement of org competencies
Particular organizational standards
Criteria for excellence.
Need to be viewed as tangible, real
& implement able.
Shared Vision & Common Direction
• Incorrect, intangible visions –
• blocks to implementing
• Mgt of Change &
• Spoils leadership Image
A Vision of Corporate Future
1.
2.
3.
4.
A clear view of where the
organization’s line of
products and/or services
is headed.
Concept of what the
“market” will be like in 25-10 years.
Concept of how the
product and/or service
might be improved in 2-510 years.
Concept of what the
competition might be
offering in 2-5-20 years.
5.
6.
Able to persuade others
(peers, subordinates,
suppliers and customers)
that the vision is a sound
basis for corporate
strategy.
Optimistic &
enthusiastic about the
future; where there is a
basis for pessimism, is
able to offer & attract
support for an alternative
course of action.
Vision without Action is
A Dream
Action Without Vision is
An Activity
Strategy Development
• Vision describes where org is headed & what it is
a statement of future that world not happen by itself.
• Articulates basic characteristics that shape
organization’s strategy.
• A vision should be clear and exciting to an
organization's employees.
• It should be linked to customers’ needs & convey
a general strategy for achieving the mission.
• A vision must be consistent with the culture and
values of org.
Warning!!
Corporate visions
that aren’t deeply rooted in
reality of productivity or
service markets –
increasingly recipes for disaster.
Breaking Through Resistance with Vision
Authoritarian
Decree
Micromanagement
Forces that Support the Status Quo
Vision
The Relationship of Vision, Strategies, Plans,& Budgets
Vision
Leadership
Creates
Strategies
A sensible & appealing
Picture of the future
A logical for how the vision can
Be achieved
Plans
Specific steps & timetables to
Implement the strategies
Budgets
Plans converted into financial
Projections and goals
Management
Creates
Self-understanding
•
Self-understanding
requires the ability to
look at one’s self & then
identify
relationships
with
employees
&
within the org.
• Requires an
examination of one’s
weaknesses as well as
strengths.
Value Congruence
• Occurs when “Leaders integrate their values to the
company’s mgt systems.”
• Value are basic assumptions & beliefs about the nature of
–Business
– Mission
– People
– Relationships of an org.
• Values include: Trust & Respect for individuals,
openness, teamwork, integrity, & commitment to Quality.
• They become standards & create an org structure in which
quality is a routine part of activities & decisions through org.
Leading Practices
• True leaders promote quality & Business
Performance excellence in several ways:
– They create:
• Strategic Vision & Clear Quality Values that serve as a basic
for business decisions
– Business strategy emanates from sr leaders.
– An org’s visions & values revolves around customerboth external & internal.
– FedEx’s concise motto: People, Service, Profits
conveys that commitment to people - employees of
FedEx comes first.
Leading Practices
– AT&T Universal Card Services’ focus is engraved in
lobby of its HQs - Customers are Center of Our
Universe.
– Rhetoric cannot stand alone; leaders
must demonstrate commitment to
vision & values.
– FedEx, business decision evaluated against peopleservice-profit hierarchy- in that order.
– Successful leaders continually promote their vision
throughout org using all forms of communication;
talks, newsletters, seminars, electronic mail, &
video.
Leading Practices
• Create & sustain a leadership system &
environment for quality excellence & procedures.
• Encourages managers
• To experiment & take risks
• Permits employee to talk openly about problems
• Support teamwork
• Promotes employees’ understanding of their
responsibilities for quality
• Encourage a strong family atmosphere
• Promote clear and effective communications
• Recognize & reward groups for exceptional
performance.
Leading Practices
• Ensure that mid mgrs & supervisors understand
their principal roles & responsibilities for quality.
• Mgrs at all levels must communicate & reinforce
org's quality values to entire workforce.
• Xerox, redefined promotion standards around
quality.
•Mgr not be considered for promotions unless visibly demonstrate support for company’s quality
strategy.
Leading Practices
• Demonstrate substantial personal commitment &
involvement in quality, often with a missionarylike enthusiasm.
• Leaders display a certain passion about quality
& actively practice live values.
• By “walking the talk,” leaders serve as role
medals for while org.
• Many CEOs lead quality training sessions, &
personally visit customers.
Leading Practices for Quality
• They
integrate societal responsibilities &
community involvement into their business
practices.
• Promoting ethical behavior & protection of public
health, safety, &
environment affected by a
company’s product & services.
• Ames Rubber -- substantial progress in reducing or
eliminating toxic ingredients, improving the efficiency of
production processes to reduce waste, increasing waste
recycling, and managing all materials more soundly.
Leading Practices
• Good leadership as a corporate citizen includes
influencing other org partner for these purposes.
• Eastman Chemical Company helped to develop
the Chemical Manufacturers Association's
Responsible Care ® principles, for public health,
safety, and environmental protection.
Strategic Planning
One of the critical aspects of leadership is
strategic planning.
Through Strategic Planning, leaders mold an
org’s future
& manage change by
focusing on an ideal vision
of what the org should
& could be 5-10 years in the future.
Strategic Planning
•
Through an Effective strategy, a business
creates a sustainable competitive advantage.
• Process of envisioning the org future
& developing necessary procedures
& operations to achieve that future
called Strategic Planning
Strategic Planning (SP)
• Objective of SP to build a posture that
is so strong in selective ways that the
org can achieve its goals despite
unforeseeable external forces
• In today’s business
environment, quality is a key
element of strategic planning
Strategic Planning
Competitiveness requires more top level
“Strategic Thinking” & less mid-level “Strategic
Programming”,
True (ideal) strategy-making process can be.
…capturing what the manager learns from all sources
(both soft insights form his or her personal experiences
& experiences of others throughout the organization
and the hard data from market research and like) & then
synthesizing that learning into a vision of direction that
business should pursue.
Strategic Planning
“Strategy - a pattern or plan that integrates an
org’s major goals, policies, & action sequences
into a cohesive whole”
A well-formulated strategy helps to marshal & allocate
an org's resources into a unique & viable posture based
on its relative internal competencies & shortcoming,
anticipated changes in environment, & contingent
moves by intelligent opponents.
Role of Quality in Strategic Planning
• Firms can possess two basic types of competitive
advantage: low cost & differentiation.
• Strategic Quality Planning -- Systematic
approach to setting quality goals -- has been
viewed as separate & distinct from Strategic
Business Planning (SBP).
•Quality Planning traditionally took place at
low level of the org, & focused on
manufacturing & technology.
Role of Quality in Strategic Planning
Quality drives financial & mktg success.
Strategic Quality Planning is synonymous with
Strategic Business Planning.
Strategic Planning Process
Mission
Vision
Gap analysis
Strategic Goals
Strategies
Objectives
Guiding
Principles
Strategic Planning (SP)
Formal Strategies Contain three elements:
1. Goals to be achieved.
2. Policies that guide or limit action.
3. Action sequences, or programs, that accomplish the
goals.
Effective strategy revolve around a few key
concepts & thrusts –
such as “Customer Satisfaction” - which provide
focus.
.
Strategy Development
Mission of a firm - defines its reason for
existence; it asks the question
“Why are we in the business?”
Might include a definition of products &
services, types of markets, important
customer
needs,
&
distinctive
competencies- expertise that sets firm
apart from others.
Strategy Development
• Mission of FedEx
• To “produce outstanding financial returns by
providing totally reliable, competitively superior
global air ground transportation of high priority
goods & documents that require rapid, timesensitive delivery”.
• Cadillac Motor Car Mission
• To engineer, produce, & market world’s finest
automobiles, known for uncompromised levels of
distinctiveness, comfort, convenience, & re-fined
performance”.
Strategic Quality Planning Process at Eastman Chemical Company
Define Eastman’s
Vision, Mission, and MIOs
Gather Critical
Planning Inputs
Develop strategic alternatives
Develop Eastman's overall strategy
Develop MIOs and key initiatives for
each organization and dimension
Develop supporting projects and milestones
Allocate resources
Finalize annual plan
Plan and implement projects
Review Progress and Performance
Annually assess and improve the planning process
MIO = Major Improvement Opportunity
Source: Eastman Chemical Company
Strategy Development
• Mission, vision,
guiding principles serve as
foundation for Strategic Planning.
• Must be articulated by top mgt & others who lead,
especially CEO.
• To be transmitted, practiced, & reinforced through
symbolic & real action before they become “real” to
employees & people, groups, & organizations in
external environment that do business with firm.
Strategic Deployment
Top mgt requires a method to ensure that its plans &
strategies - executed successfully within org.
An iterative process - senior mgt asks
(a) what lower levels of org can do,
(b) what they need,
(c) what conflicts may arise can avoid many of
implementation problems that mgrs typically face.
Strategy Development
Next step in process, is to assess gap
b/w where it is now & where it wants to
be (as described in its vision).
Using this assessment, an org develops
goals, strategies, & objectives that will
enable it to bridge gap.
Strategy Development
• Goals: Broad statements that set direction for
org to take in realizing its mission
• Closing gap b/w where it is & where it wants to
be.
• Strategies:
goals.
Key
actions
towards
achieving
Strategy Development
• A business goals might be to reverse market
trend
• On the other hand,
• A strategy of improving R & D, efforts might
help to achieve this goal.
• Objectives : Specific, measurable actions
that support the strategies.
• An objective - to increase the no. of
customers by 50 percent.
Strategy Development
Metrics are needed to
measure an
organization's
performance in
achieving its
objectives, strategies,
& ultimately, its vision.
Strategic Planning Process at Corning Telecom Products Div
Vision
Mission
Establish Strategic
Strategy Development
Process
Review Strategic
initiatives and Critical
Success Factors
Review TPD Values
and establish KRIs
Planning Process
Develop short and
long term plans
Deploy the plans
Strategy Deployment
Process
Review measures
Strategy Deployment
Process
(KRI = Key Results Indicators
Source: 1995 Malcolm Baldrige National Quality Award Application Summary. Courtesy of Telecommunications
Products Division, Corning, Incorporated.
Strategic Planning Process
Japanese deploy strategy through a process
“Hoshin kanri, or Hoshin Planning”.
US: Policy Deployment, or Mgt by Planning.
Many companies, notably FPL, HP & AT&T, adopted
process.
Translation of “Hoshin kanri” - “Pointing
Direction”.
To point, or align, entire org in a common direction.
Strategic Planning Process
Policy Deployment emphasizes.
a) org wide planning
b) setting of priorities,
c) provides resource to meet objectives,
d) measures performance as a basis
improving performance.
for
Policy Deployment is essentially a TQbased approach to executing a strategy
by ensuring that all employees
understand
business
direction
&
working according to a plan to make the
vision a reality.
Strategic Planning Process
• FP & L, defines Policy Deployment as “Executive
Deployment of selected policy-driven priorities &
necessary resources to achieve performance
breakthroughs”.
•
HP calls it “A Process for Annual planning &
implementation which focuses on areas needing
significant improvement.”
• AT&T’s definition “An org-wide & customer focused
mgt approach aimed at planning & executing
breakthrough
improvements
in
Business
Performance”.
Strategic Planning Process
With policy deployment, top mgt is responsible for
Developing & Communicating a “Vision”,
Building org-wide commitment to its achievement.
Long-term strategic plan forms basis for shorter-term
planning.
This vision is Deployed through, Development &
Execution of annual objectives & plans.
All levels of employees actively participate in
generating strategy & action plans to attain “vision”.
Strategic Planning Process
Mgt reviews at specific checkpoints ensure
effectiveness of individual elements of strategy.
Implementation teams empowered to manage actions &
schedule their activities.
Periodic reviews (monthly or quarterly) track progress &
diagnose problems.
Mgmt may modify objectives on basis of evaluates results
as well as deployment process itself through annual
reviews, which serve as a basis for next planning cycle.
Strategic Planning Process
Negotiation process is called “catchball”.
Leaders communicate mid-term objectives & measures
to mid mgrs, who develop ST objectives & recommend
necessary resources, targets, & roles/responsibilities.
These issues discussed & debated until agreement is
reached.
Objectives then cascade to lower levels of org, where
ST plans developed.
Strategic Planning Process
Catchball is an up, down, and sideways
communication process as opposed to an
autocratic, top-down management style.
It marshals collective expertise of whole org & results
in realistic & achievable objectives that do not conflict.
Process focuses on optimizing the system rather than
on individual goals and objectives.
Can only occur in a TQ culture that nourishes open
communication.
Corporate Activities
The Policy
Deployment
Process
Departmental Activities
Corporate
vision
Departmental
Vision
Long-term
objectives
Long-term
Objectives
Mid-term
Objectives
Mid-term
Objectives
Short-term
Objectives
Short-term
Objectives
Project
Development
Policy
deployment
plan
Short-term
Plan
Plan
approval
Project
Implementation
Implementation
Review
Management reviews
= Catch Ball
Source: Courtesy of GTE Directories Corporation
Role of Quality in Strategic Planning
Strategic planning — companies can accomplish
several important tasks.
1.
Understanding key customer & operational
requirements as input to setting Strategic
directions. This step aligns ongoing PI with
company’s strategic directions.
2.
Optimize use of resources & ensure bridging b/w
short-term & LT requirements, which may entail
capital expenditures, training, etc.
3.
Ensure :Quality initiatives understood at three key
levels of the org: (a) Company/org level, (b)
Process Levels, (c) individual levels
Role of Quality in Strategic Planning
.4. Review if orgs & structures:
(a) effectively facilitate accomplishment of strategic plans
(b) set stage for integrating breakthrough & incremental
improvement.
• Complete integration of TQ into Strategic Business
Planning (SBP) is most often the result of a natural
evolution.
• In new companies. Quality often takes a back seat to
a) Increasing sales, b) Expanding Capacity, or (c)
Boosting production.
• Here, Strategic Planning usually centers on “Financial
& Mktg Strategies”.
The Role of Quality in Strategic Planning
Xerox Leadership Through Quality strategy is built on
three elements:
1. Quality Principles
• Quality _ Basic business principle for Xerox in its
leadership position.
• An understanding of customers’ existing & latent
requirements.
• Products & services that meet requirements of all external
& internal customers.
• Employee involvement, through participative problem
solving, in improving quality.
• Error-free work as Most cost-effective” way to improve
quality.
2. Management Actions & Behaviors
• Assure strategic clarity & consistency
• Provide visible supportive mgt practices,
commitment, & leadership set quality objectives
& measurement standards
•Establish & reinforce a mgt style
of openness, trust, respect,
patience, and discipline.
•Develop an environment in which
each person can be responsible
for quality.
Strategy Development
Strategy Development needs to take into account
(a) Customer & mkt requirement & expectations;
(b) Competitive environment;
(c) Financial, market,
(d) Technological, & societal risks;
(e) Company capabilities, e.g HR,
(f) Technology, & Business process;
(g) Supplier &/or Partner capabilities.
This info is usually gathered & maintained as
inputs to the planning process.
3.
Quality Tools
• Xerox quality policy
• Competitive benchmarking and goal setting.
• Systematic
process
defect-detection
&
error-prevention
• Training for leadership through quality.
• Communication & recognition programs
reinforce leadership through quality.
• A measure for the cost of quality (or its lack)
that
Transactional Leadership
• Mgrs who push subordinates to change
but do not seem to change themselves
are transactional
• Mgrs use reward & coercive power to
encourage hi performance
©The McGraw-Hill Companies, Inc., 2000
4-107
Transformational Leaders
• Transformational Leaders: Who, through their
personal vision & energy, inspire followers &
have a major impact on their org
• Also called charismatic leaders.
• Transactional Leader does not have
“vision” of - transformational leader
4-94
Transformational Leadership
–
Transformational Leaders:
• Make subordinates aware of how
important their jobs are by providing
feedback
• Make subordinates aware of their own
need for personal Growth &
development
• Empower workers, added training help
• Motivate workers to work for good of
org, not just themselves
4-96
Transformational Leaders
–
–
–
Transformational - charismatic have a vision of
how good things can be.
• Excited & clearly communicate this to
subordinates.
Openly share information with workers.
• Everyone aware of problems & need for
change.
• Empowers workers to help with solutions.
Engage in development of workers.
• Mgr works hard to help them build skills.
©The McGraw-Hill Companies, Inc., 2000
4-97
4 Phases of Transformation
Process
1. Recognizing need
for change.
2. Create a new vision.
3. Manage Transition
4. Institutionalize
the change.
4-108
Charismatic
Leadership
Influence based on
follower perceptions
that the leader is
endowed with the gift
of divine inspiration or
supernatural qualities.
4-98
Charismatic Leadership is
really just a component of
the broader based
Transformational
Leadership.
4-100
Charismatic Leaders
• Common Characteristics
• Self-confidence
• Vision
• Ability to articulate
• Strong convictions
• Out of the ordinary behavior
• Perceived as change agents
• Environmentally sensitive
82
4-99
Visionary
Self
Promoting
Empowers
Others
Verbal
Skills
Self
Confidence
Moral
Conviction
Charismatic
Leader
Characteristics
Minimum
Internal
Conflict
Relational
Power
Base
Inspires
Trust
High Risk
Orientation
High Energy
Action
Orientation
4-103
4 Strategies to Develop
Charismatic Qualities
Develop visionary skills
Practice being candid
Develop warm, positive,
humanistic attitude.
Develop an enthusiastic,
optimistic, energetic personality.
4-104
Personalized Charismatic
Leaders
Pursue leader-driven
goals & promote
feelings of obedience,
dependency &
submission in followers.
4-105
Socialized Charismatic Leaders
Pursue organization-driven
goals & promote feelings
of empowerment, personal
growth & equal
participation in followers.
4-106
Leadership Theories
Leadership theory can be studied for at least
five perspectives:
–
–
–
–
–
the trait approach
the behavioral approach
situational (contingency) approaches
the role approach
emerging theories.
•The trait approach involves discovering how to be a
leader by examining the characteristics and methods of
recognized leaders determined that leaders do not
necessarily share a common set of traits.
Leadership Theories
• Dozens of Leadership theories are
derived from literally thousands of
leadership studies
Leadership Theories
• Leaders do not follow
same set of traits.
•They can be
–right-brained & left-brained
–tall and short
–fat and thin
–articulate and inarticulate
–assertive and retiring
–dressed for success and dressed
for failure
–participative and autocratic”.
Leadership Theories
• The behavioral approach attempts to determine
the types of leadership behaviors that lead to
successful task performance and employee
satisfaction.
• They showed that effective leadership depends
on a proper blending of an employee relationshipcentered approach to employees’ needs with a
production-centered approach to getting work done.
Leadership Theories
• Behavioral leadership models include Douglas
McGregor’s Theory X-Theory Y model and the blake-Mouton
Managerial Grid model.
• McGregor explicitly defined contrasting assumptions that
managers hold about workers and how those assumptions
tend to influence the manager’s behavior.
• Blake and Mouton defined five managerial styles that
combined varying degrees of production-oriented and peopleoriented concerns. Their contribution was to suggest that a
high concern for both production and people was needed and
that effective managers could be trained to develop a balanced
concern for both.
Leadership Theories
• The contingency or situational approach holds
that there is no universal approach to leadership; rather,
effective leadership behavior depends on situational factors
that may change overtime.
• Current leadership theory is based heavily on this
approach, which states that effective leadership depends
on three variables:
– the leader
– the led
– the situation.
• Fiedler’s model, shows the effect of leadership styles on
leader performance according to situational contingencies.
Leadership Theories
• Vroom
prescribes an appropriate
leadership style based on various contingencies in a
decision-making situation.
and
Jago,
• The model centers on the problem-solving function of
leadership, and is based on the theory that the three
major concerns of a leader in solving problems are:
1. The quality of the decision
2. The degree of acceptance of the decision by the
subordinate (s), and
3. The time frame within which the decision must be
made.
Leadership Theories
• Robert House developed his path-Goal Leadership
model based on expectancy theory.
• States that the appropriate path to high performance
and high job satisfaction is dependent on employee needs
and abilities, the degree of structure of tasks to be
performed, and the leadership style that is selected by the
leader.
• Effective leaders choose one of four style (achievementoriented, directive, participative, or supportive) that
matches the situational contingencies and helps team
members along the path to their highest-value goals.
Leadership Theories
• The role approach suggests that leaders perform
certain roles in order to be effective.
• The role approach is similar to the trait and behavioral
approaches, but also takes into account situational factors.
• Leaders at upper levels of the organization, or in large
firms, may frequently be called upon to play the role of
figurehead or liaison person between the firm and its
outside environment.
• At a lower level, where spans of control extend widely,
motivational, coordinative, or disturbance handling roles
may be needed for effective leadership.
Leadership Theories
Emerging theories enhance or enlarge current theory by
attempting to answer questions raised, but not answered, by
traditional contingency approaches.
Attributional theory states that leaders’ judgment on how
to deal with subordinates in a specific situation is based on
their attributions of the internal or external causes of the
behaviors of their followers.
Transactional (charismatic) theory assumes that certain
leaders may develop the ability to inspire their subordinates
to exert extraordinary efforts to achieve organizational goals,
owning to the leader’s vision and understanding of how to
tap into the developmental needs of the subordinates.
Leadership Theories
• Transformational Leadership Theory, explains the
impact of leadership in TQ environment.
• According to this model, leaders adopt many of the
behaviors.
• They take a ling-term perspective, focus on customers,
promote a shared vision and values, work to stimulate their
organizations intellectually, invest in training, take some
risks, and treat employees as individuals.
• Transformational leadership is strongly correlated with
lower turnover, higher productivity and quality, and higher
employee satisfaction than other approaches.
Leadership Theories
Good leadership
contributes substantially
to high quality, while poor
leadership often causes
many quality problems in
organizations.
Creating The Leadership System
• The leadership system refers to how leadership is
exercised throughout a company.
• This includes how key decisions
communicated, and carried out at all levels.
are
made,
• It includes the formal and informal mechanisms for
leadership development used to select leaders and
manager, to develop their leadership skills, and to provide
guidance and examples regarding behaviors and
practices.
Creating The Leadership System
• An effective leadership system creates clear values that
reflect the requirements of company stakeholders, and
sets high expectations of performance and performance
improvements.
• It builds loyalties and teamwork based upon these
shared values, encourages initiative and risk taking, and
subordinates organize to purpose and function.
• This also includes mechanisms for leaders’ selfexamination and improvement
TQ Leadership Contrasts
.
Managers
Plane Projects
• Make plans for the future (on paper)
• Organize materials and methods
• Preach management by objective
Push Product
• Give “ lip-service” to quality sell to
customers
• Cut costs perform R&D
Control People
• Control people and tings through
systems
• Reward conformance, punish
deviation
• Maintain status quo
Leaders
Practice
• Envision the future
• Optimize materials and methods
• Use participative management
Produce
• Exemplary quality
• Service to their customers
• Less waste through better
processes
• Innovative products and services
Motivate People
• Develop people’s talents, control
things with systems
• Reward effort, skill development,
and innovation, empower
employees
• Look to the future through
continuous improvement.
.
Dimension of Leadership Theories
Leaders
• Personal characteristics (abilities, skills, personalities)
• Roles (figurehead, liaison, decision maker, motivator)
• Behaviors (initiate structure, show consideration toward followers, adjust to
situation.
• Sources and uses of power.
Led
• Performance (outcomes in meeting goals)
• Behaviors (responses to leader and situation)
• Emotional state (excitement, arousal, efforts)
Situation (contingency factors
• Correct diagnosis (group atmosphere, task structure, leader position power
• Readiness (assessment of followers by leader)
•Subordinate/task characteristics decisional and overall effectiveness (related
to leadership style)
• Attribution (diagnosis of causes of behavior from/to leaders and followers
Source: Adapted from Don Hellriegel, et al.. Pp. 413-414, see note 20
Custom Research Inc. Leadership System
Leadership System at CRI
Lead with Vision
• Align and communicate
vision and CRI Star
• Maintain client focus
Learn and Improve
• communicate performance
to plane.
• share information learning
•among teams/departments
•Review/improve
management system
Steering
Committee
Plane and Align
• Set goals
•Communicate goals
• align team/department/
individual goals
Inform and Develop
•Align data/information
•with vision/CRI Star/
client focus
•Communicate data and
information through CRI
• Promote the development
• of all employees
Quality and Organizational Structure
• The effectiveness of any leadership system depends in part on its
organizational structure-- the clarification of authority, responsibility,
reporting lines, and performance standards to develop structures that
help them to maintain stability.
• Traditional organizations tend to develop structures that help them to
maintain stability.
• They tend to be highly structured, both in terms of rules and
regulations, as well as the height of the “corporate ladder,” with seven
or more layers of managers between the CEO and the first-line worker.
• In contrast, organizations in the rapidly changing environments
characteristic of modern organizations have to build flexibility into their
organization structures. Hence, they tend to have fewer written rules
and regulations and flatter organizational structures.
Factors Effecting Org. Working
• Several factors have an impact on how
work is organized.
• Company operational and organizational guidelines.
• Management style. The management team operates in a
manner unique to a given company
• Customer influences
• Company size. Large companies have the ability to
maintain formal systems and records.
• Diversity and complexity of product line.
• Stability of the product line
• Financial stability.
• Availability of personnel
Team-Based Organizational Chart
Customer
Customer
Team
Customer
Team
Systems and Support Services
Executive
Steering
Committee
CEO
Customer
Team
GTE Directories Management Structure
Management
Board
Core
Business
Process
Team
CrossFunctional
Coordinating
Committee
Regional
Management
Council
Major
Business
PMIs
MBNQA
Teams
Quality
Improvement
Teams
Source: Courtesy of GTE Directories Corporation
New organizational design include:
• Autonomous work teams: self-management groups,
given real power, that undertake whole pieces of work.
• High-performance work system: sets of autonomous
teams linked by technology into total work systems
designed to support autonomy. In other words, whole
factories can be created around these teams.
• Alliances and joint ventures: cooperative efforts
conducted at the tops of organizations that allow an
organization to leverage its true competitive advantage
and combine with others who have complementary
advantage.
• Spin-outs: creating new entities outside of parent company- in
essence, staking entrepreneurs.
• Networks: combinations of different organizations forms- joint
ventures, subsidiaries, spin-outs- with various tight and loose
linkages. Scale without mass achieved.
• Self-defining organizations: organizations capable of rapid change
can reconfigure in response to or in anticipation of change.
• Fuzzy boundaries: reducing the boundaries between inside & outside
of organization. Include customers and suppliers as part of
organization. Customers actually become co designers of the
product.
• Teamwork at the top: creating teams to actually run the business. It
allows management of diversity with different skills.
MBO and Policy Deployment
Policy deployment bears some similarity to management by
objective (MBO).
MBO is “a process by which the superior and subordinate
managers of an organization jointly identify its common goals,
define each individual’s major areas of responsibility in terms
of the results expected, and use these measures as guides for
operating the unit and assessing the contribution of each of
its members”.
Both approaches are driven by objectives, involve employees,
deploy the objectives, emphasize measurement and accountability,
and relay on individual participation.
MBO and Policy Deployment
• However, they have some important differences.
• Tends to promote actions that optimize the individuals’
gain, rather than organizational improvement.
• Policy deployment selects key objectives that represent
the business capabilities that are critical for business
competitiveness.
• These annual objectives are tied to the vision and
strategic plan, and are defined with clear measure at
every level of deployment.
The Seven Management and Planning Tools
MicroTech’s mission is:
To design and manufacture miniature electronics
product utilizing radio frequency technologies, digital
signal processing technologies, and state-of-the-art
surface mount manufacturing techniques.
Affinity Diagrams
• Tools for organization a large number of ideas, opinions, and
facts relating to a broad problem or subject area. In developing a
vision statement, management in a brainstorming session develop
a list of ideas to incorporate into vision.
• Low product maintenance satisfied employees courteous order
entry low price. Quickly delivery growth in shareholder value
teamwork, responsive technical support, personal employee
growth.
• Low production costs innovative product features high return on
investment constant technology innovation. High quality, motivated
employees, unique products,, small, light weight design.
Can be grouped according to their “affinity” or relationship to each
other.
Interrelationship Digraph
An interrelationship digraph identifies and explores casual
relationships among related concepts or ideas. It show that every
idea can be logical linked with more than one other idea at a time,
and allows for “lateral thinking” rather than “linear thinking”.
Used after the affinity diagram had clarified issues and problems.
As a result, MicroTech might develop vision.
MicroTech vision
• “We will provide exceptional value to our customer in
terms of cost-effective products and services of the
highest quality, leading to superior value to out
shareholders. We will provide a supportive work
environment that promotes personal growth and the
pursuit of excellence and allows each employee to
achieve his or her full potential. We are committed to
advancing the stat-of-the-art in electronics
miniaturization and related technologies and to
developing market opportunities that are built upon our
unique technical expertise.
Affinity Diagram for Micro Tech
Customer Value
ROI
Low price
Low product maintenance
High quality
High return on investment
Low production costs
Growth in shareholder value
Work Environment
Technology
Motivated employees
Teamwork
personal employee growth
Satisfied employees
Constant Innovation
Customer Service
Responsive technical support
Quick delivery
Courteous order entry
Product Innovation
Unique products
Small, lightweight designs
Innovative features
Interrelationship Digraph of Micro Tech’s Strategic Factors
Customer
Value
ROI
Customer
Service
Product
Innovation
Work
Environment
Technology
Tree Diagrams
A tree diagram map out the paths and tasks necessary to
complete a specific project or reach a specified goal.
Planner uses this technique to seek answers to such
questions as “What sequence of tasks will address the
issue?” or “What factors contribute to the existence of the
key problem?”
Tree Diagrams
A tree diagram brings the issues and problems revealed
by the affinity diagram and the interrelationship digraph
down to the operational planning stage.
A clear statement specifies problem or process.
From this general statement, a team can be
established to recommend steps to solve the problem or
implement the plan.
Tree Diagrams
• The “product” produced by this group would be a
tree diagram with activities and perhaps
recommendations for timing the activities.
• Figure, how a tree diagram can be used to map
out key goals and strategies for Micro Tech.
Key Strategic Factors
Strategies
Goals
Improve order
Entry process
Customer
Service
Reduce delivery
time
Install new
Computer system
Tree Diagram of
Micro Tech
Goals and
Strategic
Work
Environment
Improve Technical
Support
Train customer
Service reps.
Empower customer
service reps
Develop TQ
culture
Improve
teamwork
Enhance personal
growth
Provide new
Educational benefits
Provide release time
To develop creative
ideas
Matrix Diagrams
Matrix diagrams are “spreadsheets” that graphically display
relationships between ideas, activities, or other dimensions
in such a way as to provide logical connecting points
between each item.
A matrix diagram is one of the most versatile tools in quality
planning.
Three key strategies along the columns.
Matrix Data Analysis
Matrix diagrams provide a picture of how well two sets of
objects or issues are related, and cab identify missing pieces
in the thought process.
Focused attention to these three strategies should meet
Micro Tech’s goals. These visual depictions can help
managers set priorities on plans and actions.
Matrix data analysis takes data and arranges them to display
quantitative relationships among variables to make them
more easily understood and analyzed. Matrix data analysis is
rigorous, statistically base “factor analysis” technique.
Matrix Diagrams for Micro Tech’s Goals and Strategies
Improve
Goals
Actions
Work
Environment
Improve
Develop
Manufacturing
New
Technology
Products
Cost
Effectiveness
High
Quality
Shareholder
Value
= Strong relationship
= Medium relationship
= Weak relationship
Process Decision Program Charts
A process decision program chart (PDPC) is a
method for mapping out every conceivable event
and contingency that can occur when moving
form a problem statement to possible solutions.
A PDPC takes each branch of a tree diagram,
anticipates possible problems, and provides
countermeasures that will
(1) prevent the deviation from occurring, or
(2) be in place if the deviation does occur.
Matrix Data Analysis of Customer
Requirements for Micro Tech
Requirement
Importance Best Competitor
Weight
Price
Reliability
Delivery
Technical Support
Evaluation
Micro Tech
Evaluation
Difference
.2
6
8
+2
.4
7
8
+1
.1
8
5
-3
.3
7
5
-2
*Micro Tech- Best Competitor
Arrow Diagrams
Arrow diagramming taught extensively in
quantitative methods, operations management and
other business and engineering.
Adding arrow diagramming to the “quality toolbox”
has make it more widely available to general
managers and other non technical personnel.
A Process Decision Program Chart
Install New
Computer System
Actions
Analyze
need
Configure
System
…
…
Steps
Schedule
Training
sessions
…
Install
hardware
train
users
…
Develop
Training
manuals
…
conduct
Training
classes
What its?
…
Shortstaffed
Possible
Countermeasures
Overtime
Temporar
y
Not enough
time
Hire
external
trainer
An Arrow Diagram for Project Planning
Install New Computer System
Configure
System
1
Needs
Request
3
for bids
5
Purchase
Equipment
2
6
analysis
Train
7
Install
System
Training
Preparation
4
Schedule
Training
users
8