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What is quality?

Quality management is an organisation-wide approach to understanding precisely what customers need and consistently delivering accurate solutions within budget, on time and with the minimum loss to society. Quality management will ensure the effective design of processes that verify customer needs, plan product life cycle and design, produce and deliver the product or service. This also incorporates measuring all process elements, the analysis of performance and the continual improvement of the products, services and processes that deliver them to the customer. Quality management is also referred to as business management or integrated management. The CQI defines quality in terms of innovation and care:

Why manage quality?
The effective management of quality not only creates value for an organisation and its sta eholders but also manages its e!posure to ris and can ma e the difference between success and failure. " properly implemented and effective business management system identifies and manages organisational ris s to ensure that:
• • • • • • •

the organisation consistently delivers the products and services that customers want, when they want them and to the quality they e!pect customer satisfaction and loyalty is improved organisational goals and ob#ectives are achieved organisational ris is identified and effectively managed products, services and the processes that deliver them to customers are continually improved through innovation waste throughout the organisation is identified and eliminated partnerships and the supply chain deliver value to the parties involved

If your business management system is not delivering these benefits then it is underperforming and may need a service. $hich of these ris s are relevant to your organisation%
• • • • • • •

failure in the quality of your product or service not identifying trends in customer needs not meeting customer, legal or industry requirements your product, service or facilities harming an individual, society or the environment suppliers compromising your product or service quality, or delivery losing customer data or property your product or service becoming too e!pensive for the target mar et

&usiness management addresses ris by identifying and quantifying the ris s, determining the li elihood of occurrence and thus the level of threat and providing appropriate approaches to mitigate these treats. $hether your focus is on improving business efficiency, managing ris or understanding customer needs, the application of the fundamental principles of quality can help.

The principles of quality
Quality is everybody's business, but cannot be left to #ust anyone. To get the best out of quality approaches and tools, organisations must ma e an investment to develop or employ the e!pertise of a quality professional.

Quality - the fundamentals
Customer focus

(elivering customer value while anticipating future needs and potential mar ets
Leadership and business results

)roviding vision and direction, gaining commitment and achieving collective results
People and organisational culture

(elivering ma!imum value through development and involvement of individuals wor ing in a productive organisational culture
Systems thinking

*anaging interrelated processes with an integrated approach
Business process management

(elivering results through business processes to increase efficiency
Fact-based decision making

+nsuring good decision ma ing by using accurate data and facts
Continual improvement

*a ing performance improvement a perpetual ob#ective
Suppliers and partners

*aintaining mutually beneficial relationships to enable value creation

The approaches to managing for quality
The modern quality professional has not only inherited an array of effective approaches for managing quality but has also developed new and innovative approaches for the ,-st century. .isit the CQI &ody of Quality /nowledge portal to find out more.

Quality infrastructure 5overnment. 0ub#ects include: The history and tradition of inspection. . Continual improvement &enefits4 systemic and corporate improvement4 tools and methods. are referenced. standards bodies. +very effort has been made to ensure that the information provided is accurate and current. consultants4 interfaces. certification bodies. About the knowledge portal Comments and improvements welcome The material contained in the &6Q/ portal is the copyright of the CQI. The evolution of quality thin ing. ie the CQI website and the author. regulatory bodies. This information is provided in good faith and the CQI has no liability in ma ing this information available to visitors to the CQI website. post c-123 The development of systems thin ing4 new approaches to quality management4 quality management standards4 definitions of quality and quality assurance4 the introduction of thirdparty certification schemes. internal training and educational purposes with the proviso that the source of the material.isitors to the site may reproduce this material and use it for personal study. customers. . corresponding to module one of the &ody of Quality /nowledge. professional bodies. quality control and quality assurance up to c-123 &enefits4 systemic and corporate improvement4 tools and methods. loo s at the development of quality through history. accreditation bodies. the e!perts who have driven that development and the contemporary situation. This material may not be used for e!ternal training and educational purposes without written authorisation of the CQI.Concepts of quality. The websites and the associated website lin s referenced have been reviewed and validated by authors but the CQI can ta e no responsibility for these lin s which may be sub#ect to change by the host sites. its history and development This section of the nowledge centre.Module 1 .

Quality control as a practice has been around ever since man has been ma ing things. 6ne would first have to identify the start of what we might call 'quality' before deciding when it progressed to organised systems for ensuring this quality was maintained . use and interpretation of words and phrases used to define concepts. Quality control has evolved as the need for increased quantities of goods. quality control and quality assurance up to c19 ! Introduction It is difficult to try to pin down the origins of quality control or quality assurance. quality assurance was the ne!t step of designing quality into manufacturing processes.' Charles (arwin summarised what might be a mantra for the CQI's quality professionals: 'As natural selection works solely by and for the good of each being. There is even a school of thought that evolution itself is a form of quality control. 7or e!ample. we confine ourselves to presenting some edited highlights of organised control and management of quality-in-action through history. Instead.1. post c19 ! This sub#ect area is one which. quality had individual brea throughs through the course of history. These will be presented chronologically. before supporting processes for delivering products 'right first time'." The evolution of quality thin#ing. reductions in cost to satisfy a new mar et or the mar et e!pectation for quality has increased. "lso. The detailed information that follows is available to CQI members only. relies on the meaning. &oth terms rely on an understanding of the meaning of both 'quality' and . there is huge difference between 'quality' management and 'quality management'. and which suffers as a result from a degree of misunderstanding and confusion. 6ne favoured term is 'survival of the fittest. 7or the purpose of this article we will not attempt to identify the point of the 'big bang' for the respective births of quality control and quality assurance.' Charles Darwin 1809-1882 " difficulty in charting the course of quality control over the years is to separate developments in quality control from changes in production efficiency. This efficiency has been driven by a mar et need for more or cheaper product.1 The history and tradition of inspection. Information on membership 1. all corporeal and mental endowments will tend to progress towards perfection. 0imilarly. perhaps more than most.the control element.

every time' 'the degree to which an item or process meets or exceeds the customers' requirements and expectations' 'how closely a product or service meets its design specification' 'surpassing customer needs and expectations throughout the life of the product' 'a product or service free of deficiencies' 'reducing the variation around the target' 'a state of mind' 'the extent to which products. What is quality The following responses to this question show how varied our ideas can be: • • • • • • • • • • • • • • 'a measure of excellence' 'the characteristics of a product or service that bear on its ability to satisfy stated or implied needs' 'better than you would. constraints. services.'management'. processes. not the product' 'no surprises"' 'not achieved by doing different things. 0imilarly. have ever expected' 'what the customer perceives it to be' 'doing the right thing right. It is not a static perception that never changes but a fluid process that changes as a product matures innovation! and other alternatives competition! are made available as a basis of comparison' 'peace of mind' 'never an accident' 'the inherent features possessed by a product or service' 'when what comes back is the client. or could. ie thin ing about 'quality' or a 'better and more effective way of thin ing'. It is achieved by doing things differently' • • • • • • . and items which do not add value for customers' 'never having to say you're sorry' 'an ever-evolving perception by the customer of the value provided by a product. which will vary depending on the conte!t in which they are used. and relationships are free from defects. quality thin ing could be 'quality' thin ing or 'quality thin ing'.

things do not get done as a result of random acts and events but rather as a sequence of interrelated actions which depend on resources being available and which are affected by a variety of influences. 6n the other hand. &oth these factors can be influenced 8and manipulated9 significantly by the supplier as well as by a number of other factors. &0:2:3 was developed as a national standard on what constituted a quality system. yet they have a ma#or impact on how quality is perceived. from the 'product characteristics' view on the one hand. *yron Tribus. $hat you see depends upon what you thought before you loo ed. the International 6rgani<ation for 0tandardi<ation was persuaded by the &ritish government to adopt &0 :2:3 as an international standard. through meeting design specification and reducing variation and achieving 8at least9 customer satisfaction and other outcomes. If all of these factors have to be managed. terms such as 'sustainability'.with an implied quality of product as an outcome. it is clear that we are tal ing about process quality management rather than #ust product quality management. former director of the Centre for "dvanced +ngineering 0tudy at *IT. .' *any assumptions made by customers are based on redundant nowledge or on ignorance. Quality management standards (uring the 0econd $orld $ar.3s. and it became I06 1333. The quality of goods or of a service 8or at least a customer's perception of it9 can be significantly influenced by the customer's e!pectations from the product. "s a result. In the -123s some ma#or organisations such as the *inistry of (efence 8*o(9 and 7ord developed their own 'quality' management standards which and required their suppliers to define how they operated and provide evidence that they 'conformed' to the defined procedures . There is a growing realisation that quality is multi-dimensional . In the -1. In -121.What is the answer The replies include quite a mi! of options. They were then inspected to prove conformity to defined procedures. to hints about how quality can be achieved. puts it another way: 'There is no such thing as an immaculate perception. which in turn can be founded on a number of assumptions. 'social responsibility' and 'integration' are now as prevalent 8if not more so9 than 'quality' in its traditional sense. a number of bombs e!ploded in factories during assembly. reputation and e!pectations can all ta e years to develop. a supplier can do much to manage e!pectations and anticipate assumptions. *oreover. factories were required to document their procedures and to provide records to show that they were followed. There is also a time element in all of this . Grades and Brands. This sub#ect is e!plained in much more detail in )eter &owbric 's boo The Economics of Quality. so that the same product is viewed totally differently under different circumstances. "nd the emphasis has moved from '#ust' meeting requirements to 'achieving e!cellence'. e!perience and culture.

. The car industry is another sector which has developed its own standards. the manufacturing origins of I06 133. This despite the fact that the international standards were designed for all si<es of organisation and for service companies as well as manufacturing.have remained one of the ey factors for many managers who have to interpret the standard and relate it to their ways of wor ing. I06 1333:-11C emphasised quality assurance by means of preventive actions instead of '#ust' chec ing the final product.2 *odel for quality assurance in production.2 had the same structure as &0 :2:3. It dates bac to the -1:3s. The A0 did not impose "Q") specifications for their defence contractors but introduced *IB-Q1. 7or the same reason. D0ee *anagement system standards for more details of other standardsE !ew" approaches to quality management 6ther initiatives and approaches to quality management which have appeared in recent times include TQ* 8total quality management9. but was particularly widespread in the -123s and -1. TQ* is 'a management approach for an organi<ation. and servicing I06 133=:-1.:-1. 0o companies still created volumes of procedure manuals which at times made it more difficult to change and improve. I06 133-:. and 133= into one standard.33. based on the participation of all its members and aiming at long-term success through customer satisfaction. In truth. which is not e!pected to have substantial changes. and benefits to all members of the organi<ation and to society'. (+7 0T"> 3:?.I06 1333:-1.. with three 'models' for quality management systems: I06 133-:-1. installation. centered on quality.333 was a more significant update. installation. it has also been a stumbling bloc in the adoption of the process approach which the year .3s. a variety of sector-specific standards and guidelines 8such as Tic IT for software development9 were produced since it was felt that the generic standards did not translate easily or that a specific industry sector had special requirements. TC-2@.2 *odel for quality assurance in design. in its place. "ccording to I06. The emphasis of I06 1333:-1.2 *odel for quality assurance in final inspection and test 6ther relevant standards during this period included the (+7 0T"> 3:?. "long the way.:.333 edition itself promotes. but it still required evidence of compliance with documented procedures. namely the belief that 'quality' is separate from 'business management' and that producing a 'management system definition' is in some way a substitute for a system by which to manage the business. production and service of hardware functions and was broadly equivalent to the -1@1 >"T6 quality management specifications 8"Q")9. combining 133-.covered the design. "nd there remain two other ma#or issues.2 remained on inspection to ensure conformance with procedures. the I06 133technical committee is currently drafting the ne!t release 8I06 133-:. It also introduced the concept of 'process management'. development..9. 133. and servicing I06 133.3 series 8*o(9. production.

the latter two methodologies are aimed at 'process effectiveness' and 'process efficiency' respectively. and the *alcolm &aldrige >ational Quality "ward. and knowledge management workforce focus process management results The 8recently revised9 +7Q* headings are: • • • • • • • • results orientation customer focus leadership and constancy of purpose management by processes and facts people development and involvement continuous learning. The first two 'models' focus on ey areas against which performance is assessed. as opposed to batch and queue. 0i! sigma is a methodology developed by *otorola to improve its business processes by minimi<ing defects.2 in the A0. both give organisations a guideline to achieve and measure their success. innovation and improvement partnership development corporate social responsibility D0ee *anagement systems for more details of other system assessment toolsE It is interesting to note that in almost every case.. Bean manufacturing 8lean production9 is the optimal way of producing goods through the removal of waste and implementing flow. D0ee +!cellence models and awards for more detailsE In reality. analysis. in +urope. the ey elements relate to: • • • the ob#ectives which the organisation is trying to achieve the resources required to ensure that processes can function the factors that can influence how well! the processes operate . established in -1. The &aldrige criteria are: • • • • • • • leadership strategic planning customer and market focus measurement. established in -1.The &usiness +!cellence *odel of the +7Q* 8+uropean 7oundation for Quality *anagement9.

or at least to be managed. . and to 'systems thin ing' 8see later9. 0hewhart's brea through was to recognise these two very different types of variation . $hat (eming later called common-cause variation is the routine variation to be e!pected because of what the process is. and so on.and their very different types of implications as regards improvement efforts. &ut how can we distinguish between the two types of variation in practice% &y using the tool that 0hewhart created for the purpose: the control chart.33C9 pointed out in an article that introduced (r $alter 0hewhart's wor on variation and control charts. +ssentially. Hvery different actions are called for depending on whether something is routine H or e!ceptional. while a feature of good quality is little variation. capability. and that mixing them up makes things worse. trustworthiness. a feature of bad quality is too much variation.• • the processes themselves the outcomes of the processes The fact that all these elements are included in each model serves to emphasise the complete 'system' which enables an organisation to operate. (eming later e!plained: $he harder they tried to achieve consistency and uniformity. The process of managing Fou might assume that 'the process approach' promoted in I06 133-:. 5ood quality implies reliability. This was successful initially.3s: " fundamental property of all but the most trivial of processes is that there will be some undesirable variation in outputs. In essence. but it was fundamental to (eming's wor last century. "s (r Genry >eave 8)rofessor of leadership and management in the &usiness 0chool of the >ottingham Trent Aniversity until . $here was only one little trouble .they were failing to understand the difference between common causes and special causes. they went to work on it to try to correct it. variation prevents your customers from en#oying the full benefit. is to appreciate all the factors and component parts which need to e!ist and to wor together . The ey to process management. $hile variety in products and services can enrich life. so that it can be reduced. no nasty surprises. mistake. Things are never e!actly the same. 'control'.333 was an innovation in 'quality' thin ing. $hings got worse .their worthy efforts did not work. +ach time you do your wor there will be some variation. %hen any kind of error. the worse were the effects. or accident occurred. and the foundation of (eming's guidance on process improvement is the understanding of that variation. .ariation is associated with 'bad quality'. and the circumstances in which it e!ists and operates. 0pecial-cause variation is anything noticeable beyond that routine variation. but gradually ran out of steam. (eming used the e!ample of the $estern +lectric Company which developed telephone and related equipment and invested to increase its understanding and ability. which effectively launched (eming's wor in the -1.

)rocess monitoring merely aims to reach and maintain a state of statistical control. the rate of change in management thin ing in general. Hprocess monitoring is #ust fire-fighting. An increasing rate of change "s with most aspects of modern life.D0ee C. Their ob#ective was to avoid multiple assessments of the same firms by getting a third party to provide independent evidence that the supplier had an established 'quality system' which met an agreed standard 8I06 133-9. suppliers to the >orth 0ea oil and gas industry found themselves being increasingly audited by every oil ma#or they supplied. In the early -1. and there has for some years been a ma#or concern that the quality of product 8goods or services9 provided by such suppliers is no better than those without a certificate. either for the 'customers' or indeed for the suppliers who implemented the required systems 8see later9. they got together to divide up their supplier base and wor with them to 'encourage' them to obtain third party certification to I06 133-. >owadays. &ut that's only the beginning. however.second party audits are still carried out 8even on suppliers certificated to I06 133-9. it is capable of providing outputs that meet the customers'stated requirements% The introduction of third-party certification schemes (uring the -123s. There remains a ma#or doubt about the success of this policy .= )roblem diagnosis and improvement tools for more detail on control charts and how they are usedE Hit follows that. If process monitoring is all you are using the control chart for. 0o. you are missing out on the main purpose for which 0hewhart created it: process improvement. there is a requirement to find different and better ways of producing better and different products. the time and effort e!pended does not appear to have been #ustified. The ne!t issue is: is the process capable% That means that. with a view to ensuring that the goods and services they were buying were of a suitable 'quality'. and the quality of the service is determined by how well the .and thus to obviate the need to carry out an increasing number of audits themselves. while we continue to obtain such outputs. has increased e!ponentially in the last =3-C3 years. so the encouragement and support of innovation has become a differentiator for many businesses. it is illogical and impractical to claim that anything specific 'caused' any one particular result: for any such result is the ind of result we now can be produced by the whole system of common causes 8(eming simply called it the 'system'9. 0ervices are delivered by processes which are not predetermined since the customer demands cannot always be anticipated. and in quality matters in particular. The thin ing was that this would enable them to rely on the supplier to deliver a consistent product . 'Quality' thin ing has in the past focused on the reduction of variation and the production of a standard product which meets specifications.3s. This in turn meant that the oil companies themselves found that they were carrying out more and more audits of their suppliers. when it is in control. and this is nowhere near good enough.

our own Institute gained chartered status last year. the whole certification 'industry' has become so competitive that the value of an I06 133certificate has been seriously questioned by some observers for a considerable number of years. 6n one hand. "nd yet debate suggests that some members are questioning some fundamental aspects of the very reasons for its e!istence. This may be a better assessment of the health of the >G0 than how well 'targets' are met. The ability to identify and improve the important elements of an organisation 8its processes. "lthough other certification bodies maintain a strict independence from product suppliers. and of customers involved in an individual transaction. performance and products9 can differentiate a 'quality' company from a run-of-the-mill . 0ome of the relevant questions being as ed are: • • • • • • what is quality& how do you measure quality& what is the role of the 'quality manager' and is there a future for him'her& are other organisations and institutes developing their focus in a way that encroaches on the ground traditionally covered by the ()I. Ieduced variation is not always the measure of customer satisfaction. is affected not only by their particular e!perience on a specific occasion. but also promotes and sells consultancy advice and training to organisations which are see ing to develop and define management systems to address these standards. It even promotes and sells software which can be used to support certain aspects of systems development and process definition. The perception of the buying public as an entity. patients 8as 'customers' of the >G09 may be concerned with an overall reduction in waiting times. The current status of the 'quality' profession reflects in many ways the evolution of the concepts and application of 'quality' thin ing over the past :3 years. but they are more li ely to be concerned with the attitude and concern shown by their 5) on a specific visit. but also by their overall perception of a supplier's ability to address a wider range of sta eholder requirements at the present time as well as to meet future demands. such 8sub#ective9 customer opinions can be very difficult to measure although they are very important to the individuals concerned. Anfortunately. which reflects its professionalism and the contribution it has made to A/ business over the years.supplier 8ie their staff9 and the delivery process itself is able to react and respond. #easure for measure "s an e!ample. and the I)A before it& should the institute maintain an independent position& should it even consider merging with another professional body& The confusion in some people's minds 8both within and outside the quality profession9 is not helped by the fact that the 'independent' custodian of international standards in the A/ not only provides certification services against these standards.

0ome online discussion forums have e!tended and sometimes heated debates on questions such as: • • • should corrective and preventative action be one procedure or two& how many sentences does your quality policy contain& are goals and ob#ectives the same& $hile such topics may be significant for some. " much more radical approach is needed if the profession is to provide a positive contribution to management capability and development. In too many cases. strange symbols and flashing lights. #easurable or immeasurable damage Gow something is presented can ma e a ma#or difference to how it is perceived. +!amples of this include the way in which weather presenters act more li e performers in the local dramatic society4 news programmes are preceded by some seconds of moving images. whereas some un nown features of other software may give them benefits they did not even now they wanted. an event will be presented differently by different political parties to support their own point of view. &roadcast news selects one aspect of a news story as a headline and can thus influence how the personalities involved are perceived. $hen selecting software.-st century 8and may even contribute to the way in which the quality profession is viewed from the outside9. and they lose sight of the important factors which they need to manage to move the company forward. to operational and organisational performance and to business success. they are often based on a fundamental misunderstanding and lac of informed advice and are unli ely to contribute greatly to the development of quality thin ing in the .company. The presentation can detract from the message or the product. and they have based their requirements on what they have seen in the past or what a particular supplier has put forward as a feature. it can be difficult for a potential user to specify requirements if they do not now what is available from e!isting products in the mar et. and the presenter is then barely visible amongst a sea of coloured bac grounds. all too many companies still get bogged down in the detail of process definitions and procedures. In politics. more strange symbols and quir y furniture4 many website designers have yet to appreciate the need to separate meeting user requirements from giving vent to their more creative tendencies. . $hen defining their management systems. and there seems to be an almost universal need to accompany any visual presentation with a piece of pop music or other noise. and feel that they have to set measures for everything that moves 8or doesn't move9. and in e!treme cases can all but destroy the original ob#ective. the 'pac aging' can become so overbearing and unrelated to the substance of what is being delivered that the 'product' loses value and the pac aging becomes an annoying distraction. and this does not apply only to product pac aging.

in that you will follow a process or processes to achieve an ob#ective. The advent of systems thinking '0ystems thin ing' is a way of thin ing. to respond to an event or to solve a problem. 0ystems thin ing can 8and should9 be used when deciding on the best way to achieve an ob#ective. future success and even its continuing e!istence that the concept of 'quality' and how it is applied must e!pand and change to reflect the reality of business life today. " ma#or concern for both e!ecutive and non-e!ecutive directors is to ensure that the ey processes in a business are documented clearly. Ge said: 'In too many organisations. designing and developing processes. 0ystems thin ing is 'thin ing in terms of systems' rather than in terms of individual components of a system . The same logic applies at all levels. managing and improving the processes and products you deliver. software pac ages which change radically from one version to another. some processes have failed to ad#ust to the development of the business and now destroy rather than create value. from ma ing a statement during a conversation up to declaring war at the other e!treme. 0o many factors now affect an organisation's operations. Dsee 0pecifying. 0ystems thin ing is an essential requirement for management success. can cause customer dissatisfaction on an alarming scale. . )rofessor Jim >orton tal s of the need to align people. Fou need to appreciate the interaction of components over time rather than a linear cause and effect relationship.Conversely. process and business need. "n organisation's effectiveness and efficiency is influenced not only by your own efforts but also by the e!ternal environment and events outside your control. the business processes and the people who operate them are not fully aligned with the mission and values of the organisation. It is also multi-dimensional. 0uch processes often cross organisational boundaries and are vital to the sharing of nowledge. products and servicesE It uses the same logic as root cause analysis and its absence e!plains the 'law of unintended consequences'.33@9. and that those who wor with them understand their importance to collective success. performance must be reviewed against these ob#ectives and there needs to be a way to determine whether these ob#ective remain relevant. from the initial assessment of your current situation through planning your business strategy to designing. 6ver time. but you will also have policies which shape how you operate and which therefore will affect a number of those processes. It is an approach for developing models which can aid understanding of events.and the same principles as apply to process management can be applied. In Computing &usiness maga<ine 8"ugust?0eptember . and add features which were not in fact wanted by the ma#ority of users. It applies to decision ma ing at all levels.' The ob#ectives for such processes should always be derived from the organisation's mission. are all part of systems thin ing. the patterns of behaviour resulting in the events and the underlying structure and relationships responsible for behaviour. Identifying ris s to how you operate and anticipating how your operations may impact on others.

0enge was the originator of the concepts of 'systems thin ing' and 'the learning organisation'. )eter 8-1139 The Fifth Discipline and The Fifth Discipline Fieldbook 8(oubleday.9. formerly available on the A/ (eming websit .eu 'Anderstanding variation .$urther information The member pages cover: • • *urther discussion of the definition s! of quality +ew approaches to quality management. )eter: The Economics of Quality.apqc. Genry >eave 8edited by *itch &eedie9. Grades and Brands 8Ioutledge -11. ")QC is a memberbased non profit organisation serving appro!imately :33 organisations worldwide in all industries. and in particular the development of systems thinking 7ind out more about membership.the springboard for process improvement'.bowbric . -1139. 7ounded in -122. http:??www. &owbric . %ources 0enge. "merican )roductivity and Quality Center 8")QC9.

Improving processes systematically is the opposite of cries for longer hours. Gard wor usually means that people are stretching an incapable system to try and get acceptable results. Why is continual improvement needed &ecause in its absence things will get worse. and more to eep it that way. in order that learning can be shared and to ensure that people do not have to rediscover the same solutions. It ta es a lot of effort to establish. Continual improvement is not wor ing harder. a garage or a garden nows that tidiness is not a natural state. corporate policies. &ut e!perience shows that organisations may thrive 8or survive9 as long as these conditions prevail. It must include the capability of testing and validating proposed changes and incorporating the improvements in the standard operating procedures. 0ome organisations are run as if they don't need continual improvement. learn from the data and outcomes. competition may be ineffective. and e!plores the foundations that have to be laid for it to progress from desire to reality. This is the whole point. /ai<en is another term that literally means continual improvement. Continual improvement is referred to in countless annual reports. It sometimes seems to be the same as si! sigma or total quality. but it is often hard to define. *anagement may thin its customers are satisfied.Continual improvement This article describes why continual improvement is needed. but these terms are also ill-defined. but even this single word has such variation in application that it is best to confirm its meaning before accepting its use. but will struggle to respond as soon as the environment changes. What is continual improvement Continual improvement is an approach that enables operators and managers to understand the operation of ongoing processes. what it is. &enefits The benefits of continual improvement include: • • • being able to make the most of existing facilities and resources with minimal capital investment enabling employees to achieve the goals of their #obs without having to fight fires and engage in rework all the time keeping up with or overtaking one's competitors . "nyone with children. and thin about process changes. It also demands good two-way communications with others in similar processes. and value statements. or there are enough resources to do the #ob without compromise.

. The best model for learning is (r (eming's )(0" Cycle. The members' pages enlarge upon the )(0" cycle as the underlying theme for continual improvement. testing and implementation. It is acceptable and laudable to generate local improvements. it forms the foundation of all improvement activities. "nd if the standardisation is not e!tended across the organisation. In this feature we describe the big picture. If changes are not standardised as part of the everyday operations they will decay as entropy ta es over. This presents many challenges and demands a systemic approach . (rinciples) study-plan do study act Continual improvement can only be a by-product of learning. (r (eming described a system as: '" networ of interdependent components that cooperate in order to achieve the aim of the system' 8The >ew +conomics. (eveloped in the early -1:3s from the scientific or e!perimental method. if people now how to operate a well optimised process they would the doing so. continual improvement needs to be far more than local. It is implicit that.a system for continual improvement. The aim of a continual improvement system is to ensure that everyone is engaged in continually developing processes to achieve their potential within the overall organisational goals. Those intending to practise continual improvement need to understand the purpose of their processes and to be able to apply some disciplines of learning and the tools of analysis. whether incremental and continual or one-off ma#or brea throughs. so that the reader can prioritise their future study. the opportunity for learning is lost. but not enough. -11=9.• improving staff motivation by helping them to contribute to the organisation's wellbeing %ystemic and corporate improvement If the organisation is to thrive. as any business boo shelf will demonstrate. Continual improvement principles' methodologies and tools This is a very big sub#ect. >ew nowledge is needed.

They are aimed at resolving critical problems of whole system issues.#ethodologies *ethodologies are structures 8processes9 which lin the principles to the tools. providing the principles are ept in mind. never mind master. . The members' pages describe the original model for all the improvement methodologies4 the Japanese QC story. new product development and so on. strategic programmes. and that is much more e!pensive and bad for customer relationships and staff morale. It is e!pensive and time consuming to develop the capability for continual improvement across the whole organisation. The tools of continual improvement help people to understand and improve processes. 7or local continual improvement activities it is sufficient to be able to use about -3 basic tools and these are listed on the members' pages. The alternative is to be continually repairing the consequences of deterioration in process performance. %ummary Continual improvement is the result of a system that: • • • • develops a mindset trains the relevant people encourages the use of a simple but robust methodology and tools shares the learning across the organisation.3s the toolset has grown and grown. Continual improvement leads to benefits which at the point of implementation often loo low ey and are sometimes free. There are many proprietary methodologies. and are relevant to changes affecting the wider organisational system. applicable to departmental improvement. continual improvement not being able to ma e the impact needed in the timescale. but all who practise it see it as worth the trouble. They enable you to see which tool would help in your particular circumstance 8using a tool in the wrong circumstance can be counterproductive9. but which collectively may build to profound changes. and it demands persistence over many years from top management. too many for the average person to remember. which demand process reengineering. 0tarting with the control chart in the -1. "ppreciating the methodology structure is therefore more important than learning lots of tools and in fact one can ma e a lot of progress with the most basic of tools. or resource scope. It's relatively easy to identify more than -:3 different tools. 6rganisations that successfully embed continual improvement can maintain the capability of their system even though natural disorganisation ta es its toll. supplier development. Continual improvement tools The quality world has always been attracted to tools.

The principle parts of the infrastructure relate to: • • • • • regulation . structures and people that help organisations to implement quality practices and improve performance.The quality infrastructure . other codified intellectual property conformity assessment and accreditation economic operators and their collective representatives consumers *verview The A/ quality infrastructure is concerned with the relationships between: • • • • • legal requirements contained in regulation and legislation voluntary standards which define the quality of products and services and the methods of their production industry practice and the actual solutions provided by business the market. where the confidence and will to trade is promoted the accreditation and conformity assessment regimes that provide the evidence and confidence . including legislative requirements manage risks. physical' reference. The 'quality infrastructure' supports these aims and comprises the physical facilities and the interrelated systems of organisations.documentary. product introductions. including risks to financial investment. Anderpinning these activities is the need to demonstrate conformance to standards 8whether specified by regulators. market exclusion.roles of the different $odies The quality infrastructure provides the underpinnings that enable A/ businesses to compete nationally and internationally. regulators standards . meet customer requirements and manage ris . Introduction A/ businesses need to: • • • create and enter markets in a timely manner meet customer requirements. etc. the mar et or the industry9 in order to gain mar et access and gain mar et confidence in their products and services.government.

The A/ quality infrastructure is principally made up of a number of separate bodies.enabling the -. practices and culture.&0I *anagement 0ystems and a testing operation . &odies shown in blac are sponsored by 5overnment and receive some funding for their activities. each with separate remits but which impact the following: • • • • • .&0I &ritish 0tandards.facilitating the removal of technical barriers to trade. in that the &0I 5roup comprises the A/'s >ational 0tandards &ody . to take advantage of its strong science base and capacity for innovation to compete in global markets /egulation . which does receive funding. also a certification body . evolving common language and practices that promote trade and gaining access to overseas markets Industrial policy . evidence.arket access and international trade . or through market self-regulation 0roviding confidence. suppliers and customers regarding the quality of products. services or their supply. The following diagram shows some of the primary interfaces in the A/ quality infrastructure. 8>ote: The &ritish 0tandards Institution is an e!ception. safety or the environment. methods. information and assurance to purchasers.either supporting regulation where there are significant risks to health. 0romoting awareness of and providing training and assistance in quality tools. 7igure -: The A/ quality infrastructure .&0I )roduct 0ervices9. &odies shown in blue are self-funded and independent of 5overnment.

g. including their intellectual property rights The ey bodies in this area are: National Standards Body (BS British Standards! • 12I is an independent non profit distributing body. 12I works with representatives of business. +nsuring effective wor ing of the infrastructure by government is particularly important. providing $echnical Assistance. facilitating the other areas by: • • • supporting or replacing regulations providing the basis for trade policy negotiations. 5overnment is directly responsible for maintaining elements of the quality infrastructure. e. certification and audit or test results giving weight to individual firms' design specification activities.such as pensions and benefits Iegulators. is to regulate business decisions and promote the public good. according to the &etter Iegulation Tas 7orce 8now the &etter Iegulation +!ecutive9. compulsory seat belts9.g. see to change the behaviour of groups or individuals by giving people rights 8e. accountable to government for operating under its /oyal (harter. interests in formal 4uropean and international standards developing organisations and through their committees. government and consumers to facilitate the production of documentary standards.g.aimed at controlling the abuse of monopoly power public goods and external effects . as illustrated.. who are ultimately responsible to )arliament. through regulation and provision of fair mar ets. has a ey role in providing consumers and business with the support and mechanisms to encourage trade and competitiveness and ensure that the public good is maintained. %tandards . . Iegulation can be divided into three areas: • • • economic . since many of the activities concerned are 'pre-competitive' and would not be supported by individual business contribution. • 12I also works internationally with other countries and their standards bodies. for example.+oles of the different bodies +egulation .documentary' physical. leading to mutual acceptance and recognition of accreditation. products and processes overseas.overnment and +egulatory bodies 5overnment. principally through the (epartment of Trade and Industry.such as environmental and safety regulation social . equal opportunities9 or by restricting behaviour 8e. 2tandards 3evelopment will contain details about this activity link!. • As the -.'s national standards body.reference' other codified intellectual property 0tandards are at the hub of the quality infrastructure. The role of regulators. 12I represents -. $his activity complements government's activity to promote -.

National "easurement System (N"S!

The >*0 is the A/'s national infrastructure of measurement laboratories, measurement science and technology and traceable standards of measurement for use in trade, industry, academia and government.

$he ma#ority of work is carried out through -. measurement institutes, primarily +ational 0hysical 5aboratory physical metrology!, +ational %eights and ,easures 5aboratory legal metrology!, 56( 5imited chemical and biological metrology!, $-7 +45 5imited *low metrology! $he institutes support industries quality ob#ectives in many ways, including8
o o o o

research and development of primary standards for new applications international inter-comparisons and acceptance of -. standards and methods measurement services and #oint pro#ects with industry technical helpline, best practice guides, consultancy, training, workshops, etc.

#$ Patent %ffice

Ieference to The )atent 6ffice is included here for completeness since quality criteria or good practice may be held within a protected intellectual property regime. $here an organisation is able to protect its Intellectual )roperty Iights 8I)I9, it may choose to do this as an alternative to or in tandem with standards. " useful guide on this sub#ect is '0tandards and Intellectual )roperty Iights: " )ractical 5uide for Innovative &usiness 8* Clar e, ,33C, &0I9
Conformity Assessment and Accreditation

*anufacturers and suppliers employ conformity assessment bodies to help them provide assurance to purchasers or customers that the quality of their products or services meets specified requirements. Certification bodies in particular help businesses demonstrate that their products, processes, systems or persons conform to defined standards, including customer's requirements. Conformity assessment bodies fall into two categories 8I06?I+C -23339:
• •

those concerned with assessment, e.g. testing laboratories or inspection bodies those concerned with third-party attestation i.e. assurance that specified requirements are fulfilled! of product conformity, management systems conformity or fulfilment of requirements for personal competence - known collectively as certification bodies

"ccreditation by the Anited /ingdom "ccreditation 0ervice 8A/"09 demonstrates the competence, impartiality and performance of a conformity assessment body to provide certification, testing, inspection or calibration services to internationally agreed standards.

A/"0 is recognised by government as the sole A/ body for the accreditation of certification, testing and inspection bodies to specified standards. " listing of accredited certification bodies and their registered companies the Anited /ingdom Iegister of Quality "ssessed Companies is published by the 0tationery 6ffice. Q" Iegister website The Q" Iegister website is also the place to chec whether or not a company has I06 133- certification.
&usiness and its representatives

&usiness and its customers ultimately bear the cost of standards development, conformity assessment 8certification, tests, audits9 and attestation 8mandatory mar ing, 'quality mar s', licenses, etc.9. Through standards they are able to gain production efficiencies, operate in industry supply chains and differentiate their products. Bicensing their own technologies, particularly when lin ed to accepted standards, can also be a considerable source of revenue. Trade associations and professional bodies collectively represent the interests of their industry?business members in sector or specialised functional areas, they:

participate in the affairs and policy-making mechanisms of the other bodies in the quality infrastructure, thus ensuring that their sector or specialist areas' needs and good practices are brought to the attention of other fora. play an important role in the consensus-making process, e.g. standards development, where they may have committees or other mechanisms dedicated to the task. *or example, the ()9 has many such groups ranging through standards development, professional development, medical devices quality, etc.

Informal standards developers wor is often driven by commercial considerations. Their outputs define many products, services and even technical infrastructure found in everyday use by consumers, e.g. the internet, (.(s, etc. 0ome of the standards, relevant to the quality practitioner, defined by informal mechanisms, gain considerable acceptance, e.g. Investors in )eople. Consultants 8i.e. e!ternal consultants9 are usually employed by organisations when a particular set of s ills is required and they do not have the resources or e!pertise to address a situation by themselves. Consultants specialise and help their clients in many areas, including:
• • • • •

strategic planning - defining vision and direction management disciplines, e.g. marketing and finance training and people development quality-related disciplines, e.g. process reengineering, management systems, etc. areas of the quality infrastructure, e.g. standardi:ation, certification, regulatory and voluntary compliance

The CQI holds a register of management system consultants with a variety of discipline s ills and sector e!perience - lin

The quality infrastructure provides benefits to consumers, through competitive mar ets and in the goods and services that they purchase:
• • • •

promoting clear choice and providing product information enabling comparison and aiding choice helping to enforce rights and health and safety protection providing assurance of reliability and quality

$urther Information
The CQI member only content covers:
• •

,ore information about the roles of the bodies comprising the -. quality infrastructure Interface of company processes with -. infrastructure

Information on membership

)rimary sources for those requiring more details about individual bodies: 5overnment - Iegulators - Gouse of Bords 0elect Committee on Constitution 0i!th Ieport, available at www.publications.parliament.u The )atent 6ffice - >ational *easurement 0ystem - ?innovation?nms?inde!.html >ational 0tandards &ody ->0& Anited /ingdom "ccreditation 0ervice 8A/"09 - www.u Certification &odies - www.u Consultants - http:?? ?members or http:?? ?BandingK)ageK-.asp!%idL-3::;31 Consumers - ?consumers?inde!.html

$he person using the goods or services that have been purchased perhaps by someone else.$he customer of a charity. There has to be intent on the part of the supplier to sell the goods and services and intent on the part of the receiver to buy the goods and services 8a thief would not be classed as a customer9. What are customers The chief current sense of the word customer 8according to the 6+(9 is a person who purchases goods or services from a supplier. 6nce the sale has been made there is a contract between the supplier and the customer that confers certain rights and obligations on both parties. accountant. $he purchaser may not be the end-user and so acts on his'her behalf. Turning this around. end-users and consumers4 managing customer relationships4 customer needs and e!pectations.Customers Internal and e!ternal customers4 purchasers. $his maybe the person for whom the goods and services were intended but may not be known at the time of purchase. 0urchaser .$he customer of a professional service provider such as a law firm. In a school the parent is the customer but so too is the pupil unless one considers that the pupil is customer supplied propertyO . This customer-supplier relationship is still valid even if the goods or services are offered free of charge but in general the receiver is either charged or offers something in return for the goods or services rendered.$he customer of a retailer. (onsumer . 1eneficiary . consultancy practice or architect. one might say that a customer is someone who receives goods or services from a supplier and therefore may not be the person who made the purchase. It is relatively easy to distinguish customers and suppliers in normal trading situations but there are other situations where the transaction is less distinct. Customers provide revenue in return for the benefits that ownership of the product or service brings but may demand refunds if the product does not satisfy the need and are free to withdraw their patronage permanently if they are dissatisfied with the service. In a hospital the patients are customers but so too are the relatives and friends of the patient who might see information or visit the patient in hospital. There is a transaction between the customer and supplier that has validity in law. Who are customers The word McustomerN can be considered a generic term for the person who buys goods or services from a supplier as other terms are used to convey similar meaning such as: • • • • • (lient .$he customer of a supplier that places the order and authorises payment of the invoice. Customers are one of an organisations sta eholders. 4nd-user .

es .N (onna +arl 8article about what is internal customer service%9 defines an internal customer or internal service provider as anyone in the organisation. Customers are one of the sta eholders but unli e other sta eholders they bring in revenue which is the life blood of every business. employees are not sta eholders 8they are part of the process9 therefore they are not strictly customers but partners or co-wor ers. $here individuals come face to face with customers a lac of awareness. attention or respect may lead to such customer ta ing their business elsewhere. whereas the needs and e!pectations of the other sta eholders constrain the manner in which these ob#ectives are to be achieved. or a distributor who depends upon us to provide products or services which in turn are utili<ed to create a deliverable for the e!ternal +o +o 2ometimes 2ometimes Internal Customer .$ithin any organisation it is important that everyone nows who the customers are so that they can act accordingly. >o organisation can survive without customers. The term Minternal service providerN is more appropriate but using the word McustomerN in this conte!t is flawed. 8see also the discussion on the I06 1333 definition of QcustomerP below9 "s internal receivers of .es . "n internal customer can be a co-wor er. Can there be internal customers or should we simply call them co-workers Iosenberger defined an internal customer as Manyone you count on or rely upon to complete a tas or a function or to provide you with information so that you can get your #ob doneH and anyone who counts on you to complete a tas or function or to provide them with information so that they can get their #ob done. $here individuals are more remote from customers. >ormally the customer is e!ternal to the organisation supplying the product because to interpret the term customer as either internal or e!ternal implies that the internal customer has the same characteristics as an e!ternal customer and this is simply not the case as is indicated in the table below: Characteristics 0laces an order for product or service <as an interest in the performance of the organisation /ecieves product (an re#ect nonconforming product 0rovides payment for the output Is external to the organsiation supplying the product 3efines requirements the product has to meet (an change requirements External Customer . It follows therefore that the other sta eholders . nowledge of customers in the supply chain will heighten an awareness of the impact they have on customers by what they do. .es .es . another . Consequently the needs and e!pectations of customers provide the basis for an organisationPs ob#ectives. suppliers and society9 should not be regarded as customers as it would introduce conflict by doing .es +o .

In the upper diagram requirements are passed along the supply chain and if at each stage there is some embellishment or interpretation by the time the last person in the chain receives the instructions they may well be very much different than what the customer originally required. If organisations want to encourage their employees to behave "0 I7 they were both customers and suppliers in an internal supply chain then there might be some benefit as it might engender: • • • 0ride in ones work 6reater vigilance 6reater accountability . the operator who receives a drawing from the designer would be regarded as a customer in an internal supply chain. The only thing he can do is to return the output if it does not meet the input requirements for that stage in the process but that does not ma e him a customer. The operator. one might regard the operator as the laboratoryPs customer but once again. if we consider for a moment the notion of an internal customer. Gowever.4nters into a legal contract in which there are laws protecting both parties Is able to take custom elsewhere if not satisfied . he?she is merely a co-wor er in a process. This is shown in the lower diagram where at each stage there is an opportunity to verify that the stage output is consistent with the e!ternal customer requirement. individuals do not impose their own requirements on others. In some cases there are chains where " passes output to & and & passes output to C etc but there are also loops where " passes output to & and & passes output bac to ". In a well-designed +o +o In the table above. The notion of internal customers and suppliers is illustrated in the diagram. "nother flaw in the argument is the notion that there are internal supply . &ut the operator doesnPt pay the designer for the drawing. there is no contract and no money passing between the two parties. does not pass the output of his wor to the designer. does not define the requirements for the drawing and cannot choose to ignore the drawing so is not a customer in the e!cepted sense but a user of the drawing. The operator may pass his output to another operator in the internal supply chain but this second operator is not a customer of the former. there is only a =3R match between the characteristics of internal and e!ternal customers and therefore it would be unwise to use the same term for both parties as misunderstanding could ensue. the designer and laboratory all have the same customer S the person or organisation that is paying for the organisationPs output and specifying the requirements the organisation must satisfy. In reality each stage has to meet the e!ternal customer requirement as it applies to the wor performed at that stage not as the person performing the previous or subsequent stage wants. he has no choice but to ta e the output as he canPt go elsewhere. has no contract with the designer. If we consider this second operator as a customer. 7or e!ample if an operator provides a test piece to a laboratory and receives the test results. The requirements are either all derived from the customer requirements or from the constraints imposed by the other sta eholders.

Gowever. In a team. There is also a note in which is stated that M" customer can be internal or e!ternal to the organisationN.=. 7or e!ample if every person in the organisation was a customer every error would have to be treated as a nonconformity and the outputs sub#ect to the nonconformity controls of clause . 6rganisational processes are designed to deliver certain outputs and in order to do so individuals need to perform specific roles #ust li e ballet. in all cases the term customer is used without qualification. every co-wor er is #ust as important as every other and with each co-wor er providing outputs and behaving in a manner that enable the other wor ers to do their #ob right first time. the team would achieve the same intent. bid for the same external contacts and generally waste valuable resources If instead of the label internal customers and suppliers. The term internal customer cannot be found in either I06 133. In hoc ey.• • 1etter control 6reater cooperation &ut it might also lead to some problems: • • • • • • %orkers start imposing requirements on their co-workers that are more stringent that the external customer requirements %orkers start re#ecting input from co-workers for trivial reasons %orkers become adversarial in their relationships with co-workers %orkers refuse to release resources to co-workers thus causing bottlenecks in the process 3epartments set up service level agreements that create artificial internal trading conditions 3epartments begin to compete for resources. the team goal would be achieved. I06 1333 contains the definitions of terms used in the I06 1333 family and it defines a customer as an organisation or person that receives a product. Top management would have to ensure that the requirements of internal customers were determined and met with the aim of enhancing internal customer satisfaction S clearly not the intent of I06 1333 at all.. the participants also do not treat each other as customers and suppliers but as artists playing predetermined roles that are intended to achieve predictable results. In ballet. The observation by )hil Crosby that quality is ballet not hoc ey is very apt.or 133C and therefore one might conclude that wherever the term customer is used either e!ternal or internal customer is implied but this would ma e nonsense of many of the requirements. " much better way than adopting the concept of internal customers is for managers to manage the organisationPs processes effectively and create conditions in which all employees can be fully involved in achieving the organisationPs ob#ectives. individuals were to regard themselves as co-wor ers in a team that has a common goal. 0ee diagram of internal customer-supplier chain . the participants do not treat each other as customers and suppliers but as team members each doing their best but the result on most occasions is unpredictable.

Where are customers Customers can be buyers in the local community or as far away as the other side of the world. to maintain certain standards. 6n-line electronic trading has also broadened the field and enabled suppliers to find customers for specialised items in almost every country in the world. It all depends on the effectiveness of an organisationPs mar eting efforts and the scope of appeal for its products and services. we have to accept compromises and live with products and services that in some ways will e!ceed what we need and in other ways will not quite match our needs. often selecting e!isting products because they appear to satisfy the need but might not have been specifically designed to do so. They will only retain their customers if they continue to delight them with superior service and convert wants into needs.3 years ago that we would find flowers. 7or e!ample a car needs a steering wheel and the wheel needs to withstand the loads put upon it but it does not need to be clad in leather and hand stitched for it to fulfil its purpose. To overcome the diversity of needs customers define requirements. What do customers want from the organisation 6rganisations are created to achieve a goal. this means ta ing a hard loo at their customer base and lower their carbon footprint. Needs >eeds are essential for life. It also depends on transport technology. to fulfil the purpose for which they have been acquired. Customers are not always the most obvious ones. &ants &y focusing on benefits resulting from products and services. or essential for products and services. +veryonePs needs will be different and therefore instead of every product and service being different and being prohibitively e!pensive. )roducts designed for one purpose may well find customers using them for an entirely different purpose and so it pays to continually analyse who is buying what as it may reveal new undiscovered mar ets and potentially even greater sales. fruit and vegetables from the far east on western supermar et shelves. will be satisfied only if they provide products and services that meet their needs. The net result is an increasing demand for transport by land. needs can be converted into wants such that a need for food may be converted into a want for a particular brand of chocolate. $ho would have thought . Their customers. sea and air with consequences for the environment. The containerisation of goods has made it possible to ship almost any product to anywhere in the world within a few hours. as one of the sta eholders. 0ometimes the want is not essential but the higher up the hierarchy of needs we . 7or organisations that are environmentally conscious. requirements and e!pectations. mission or ob#ective but they will only do so if they satisfy their sta eholders.

It does not follow that a product that fails to meet the requirement will not be fit for use. electronic products to be safe and reliable. esteem or to realise our personal goals. 7or e!ample a producer of a power supply may have no nowledge of all the situations in which it might be used. 7or this reason parameters may be assigned tolerances that are arbitrary simply to provide a basis for acceptance?re#ection. 0pring vegetables have been available in the winter now for so long that we e!pect them to be available in the shops and will go elsewhere if they are not. there are plenty of organisations ready to supply us products that will harm us. style. It simply provides a basis for the customer to use #udgement on the failures. $e donPt need spring vegetables in the winter but because industry has created the organisation to supply them. $e might want it.go4 the more a want becomes essential to maintain our social standing. to esteem or to realise our potential and their consumption may in fact harm our health because we are no longer absorbing the right chemicals to help us survive the cold winters. 6ne therefore e!pects sales staff to be polite and courteous. In growing their business organisations create a demand for their products and services but far from the demand arising from a want that is essential to maintain our social standing. fraud and other undesirable situations. even need it but it does us harm and regrettably. 'e(uirements Iequirements are what we request of others and may encompass our needs and wants but often we donPt fully realise what we need until after we have made our request. The difficulty arises when the producer has no idea of the conditions under which the product will be used. trends or previous e!perience. "nother more costly e!ample is with software pro#ects where customers eep on changing the requirements after the architecture has been established. )*pectations +!pectations are implied needs or requirements. a demand is created that becomes an e!pectation. . based on fashion. it is based on an image created for us by media advertising. They have not been requested because we ta e them for granted S we regard them to be understood within our particular society as the accepted norm. Iequirements are often an imprecise e!pression of needs. . They may be things to which we are accustomed. &ut they are not essential to survival. military or even in equipping a spacecraft. It may be used in domestic. They may encompass rules and regulations that e!ist to protect society. 7or e!ample. wants and e!pectations. prevent harm. coffee and soup to be hot. to safety. now that we own a mobile telephone we discover we really need hands-free operation when using the phone while driving a vehicle. Iequirements may also go beyond needs and include characteristics that are nice to have but not essential. "nything can be e!pressed as a requirement whether or not it is essential or whether the circumstances it aims to prevent might ever occur or the standards invo ed might apply.ariations acceptable in domestic equipment might not be acceptable in military equipment but the economics favour selection for use rather than a custom design which would be far more costly. 6ur requirements at the moment of sale may or may not therefore e!press all our needs. 0ome customers believe they have to define every characteristic otherwise there is a chance that the product or service will be unsatisfactory. commercial. policemen to be honest.

0everal factors are critical in managing customer relationships: • • .nowing who your customers are and where they are is perhaps the first thing you should do.$ of I ! "##$ it states' “Top management shall ensure that responsibilities and authority are defined and communicated within the organisation” *here is no expression of intent in this requirement i.e. you will be left the poorer party. corruptible and dishonest. In many cases clarifying the intent is not necessary because the requirements express what amounts to common sense or industry practice and norms. Anticipating and understanding customer needs. 6ne would li e businessmen to be honest but in some mar ets we have come to e!pect them to be unethical. through some well focused quality initiative. 6bviously if there is a lot at sta e and the prospect of legal proceedings. It is often better to accept mista es whichever party actually made them than stand ones ground with the customer. What the customer is trying to accomplish as a result. "s e!pectations are also born out of e!perience. A good example can be taken from I ! "##$ where in clause %. But sometimes requirements are expressed in terms that clarify the intent. admitting mista es might be foolish but on trivial matters it is often the wiser thing to do. This might appear an odd thing to say. 0uppliers need to manage their customers. requirement.etc. 0ometimes a customer will distinguish between those characteristics that are essential and those that are desirable by using the word MshouldN. although in mar ets where a particular customer is unli ely to return suppliers are apt to be less accommodating.& it states' “The organisation shall ensure that product which does not conform to product requirements is identified and controlled to prevent its unintended use or delivery” The phrase “to prevent its unintended use or delivery” signifies the intent of the requirement but not all requirements are as explicit as this. but if you let your customer run rings around you. in the $""+ version of the standard it also required responsibilities and authority to be documented without stating why. What factors are critical in managing customer relationships It is desirable that suppliers sustain a good relationship with their customers. ntent Behind every want. expectations and requirements is very important. Although in this example it might appear obvious. $e would therefore be delighted if. the reason for the requirement. It is not the customers= responsibility to tell you want he wants but your responsibility to find out . "ccepting the old adage that the MCustomer is always rightN whilst not always true is good for business. it does not clarify why responsibilities and authority need to be defined and communicated. +esires Customers e!press their requirements but as we have seen above these may go beyond what is essential and may include mandatory regulations as well as things that are nice to have S what we can refer to as desires. There can be a Mta e it or leave itN mentality. It is not enough simply to read the contract or order but to get beneath the words and clearly understand the intent behind these words. the train operator e!ceeded our e!pectations on our ne!t #ourney. need.). (or example in clause ). after frequent poor service from a train operator. expectation or desire will be an intent. our e!pectations are that the ne!t time we use that train operator4 we will once again be disappointed.

2ome customers recognise their suppliers as the experts. the body language and silences. As indicated previously. (ustomers may want you to hold shipment until they are ready. Ignoring such requests because there is no provision in the contract might be foolhardy but if it will reduce your effectiveness to comply. 1uilding confidence with your customer. (o-operating with customer preferences. was critical. It pays to build confidence with your customers by going out your way to explain the way you do things. $his is not merely listening at meetings but reading the signals from the customers= actions and decisions. you need to begin a dialogue. *ind ways of accommodating their needs that cause least disruption to your systems. 2ome customers want you to use certain reporting procedures or conventions that might cause you extra effort. If you comply with the written requirement but fail to satisfy the customer=s needs and expectations you might get paid but you might not get another #ob. demonstrate the capability of your processes and explain those features. • • $urther resource +elated sections To what is it related $he history and tradition of inspection. $alk is cheap and an idle workforce is costly. >?@A $he influence of D)uality 6urusD How is it related $he history of quality management has been about a relationship between customers and suppliers (ompetition from Bapan in the >?@As-CAs made customer focus a driving force within organisations $hese have been consistent in emphasising the importance of the customer It was the pursuit of increasing levels of 3evelopment of formal quality systems into customer satisfaction that spurred these the service sectors. quality control and quality assurance up to >?@A. which is why they selected them in the first place but others impose their solutions and practices on their suppliers regardless. requirements can be rather imprecise means of conveying needs and so customers will use other ways to express what it is they really want from you so you have to listen. benefits and advantages of your products and services they may not be aware of. . %hat was not said or done may be #ust as important to what was said and done.what he needs and then satisfy those needs. professions and other organisation into considering formal quality non-manufacturing! businesses systems (ontinual improvement $his is demonstrated through evidence of increasing customer satisfaction . $he evolution of quality thinking.our customer might not have responded to a communication not because he was too busy but because your message broke the protocol. A customer who really appreciates what he is getting in return for payment is likely to return. • 5istening to the customer and not simply reading the words. was unrepentant or simply arrogant. post c.

anaging continual improvement 5egislation 2tandards development . assessment. $raining and Awareness of customer requirements is crucial .easurement.anagement system standards (ompliance management and enforcement 4xcellence models and awards Audit.entoring here 2pecifying. motivation and Awareness of customer requirements is crucial teamworking here Awareness raising E 5earning. designing and developing processes.. products and services should achieve (ustomer focus is important here (ustomer focus is important here .arkets 2uppliers 2takeholders 2atisfaction and loyalty 2tandards and ethics /oles and responsibilities of corporate management (ommunication $hese are what customers populate $hese are customers of other organisations (ustomers are one of the stakeholders 0rimarily it is customer satisfaction and loyalty that is addressed $hese are often set by customers 9ne of these is understanding customer needs $his vital between customers and suppliers 5eadership. self assessment and appraisal 2trategic management (orporate governance /elating improvements to customer needs is important here $his will sometimes be invoked in contracts with customers $his is done through pressure groups and user groups which will include customers $hese are often imposed in contracts with the aim of giving customers an assurance of quality $his is done to give assessments credibility in the eyes of the customer (ustomers feature strongly in this (ustomer representatives often do this -nderstanding customers is vital in this area (ustomer are lost of this is not done well . empowerment. products and services 0rocess analysis and improvement 0roblem diagnosis and improvement tools (ustomer requirement influence the ob#ectives which such processes. monitoring and (ustomer focus is important here control .

4lements of (orporate 2trategy'cps'rde'xbcr'2I3AAAA(GHH-H4GA3IJ>'live'(/. (ustomer relationship management http8''en. . (ustomer relationship management http8''www.artha /ogers. .org'wiki'(ustomerFrelationshipFmanagement.anaging quality across the global! organisation. • • • • • Deli$ering Customer Ser$ice: A +ractical .! has a lot of good information on this topic. suppliers and (ustomers are in all parts of the world customers (orporate social responsibility An expectation of consumers +elated publications and websites • Managing Customer Relationships: A Strategic Framewor !"ar#co$er% 3on 0eppers . its stakeholders.anagement systems Alignment between customer needs and organisational goals is important here $hese are often strongly focussed on enabling achievement of customer requirements .pdf $he (hartered Institute of .wikipedia.anagement (I.ui#e to Managing Success'ul Customer Relationships !1999% 2heila 0ayne.FtechrptFAKA>. -ualit. • "an#&oo o' CRM: Achie$ing ()cellence through Customer Management: Achie$ing ()cellence *hrough Customer Management Adrian 0ayne.c6raw <ill. is Free >?@?! (rosby 0hilip 1.

. empowerment.its variety and roles Internal?e!ternal consultancy role4 advantages?disadvantages to organisations4 management of or involvement in consultancy activities4 selection of the most appropriate consultant. 5lobal cultural differences. values and culture in an organisation. "wareness raising . )erformance management 0taff supervision4 reviews4 competence4 personal development plans4 promotion4 setting ob#ectives4 financial and motivational reward. Quality consultancy . and how it can be managed to achieve organisational aims. Beadership. Communication Communication theory4 methods of communication and their effectiveness.%nteractions of organisations and people This section of the &ody of Quality /nowledge loo s at the interface between people and organisations. 0ub#ects include: Corporate structure and culture The importance of corporate structure. motivation and teamwor ing Beading and managing teams4 leadership styles4 motivational theory4 team selection4 team building4 delegation of authority4 setting targets4 facilitation.learning. training and mentoring Training specialists and non-specialists4 self learning4 continuing professional development 8C)(94 mentoring4 coaching4 validation4 nowledge theories4 training effectiveness. Iole of the individual Job design and specification4 responsibility4 authority and accountability4 competence levels4 professional bodies and institutions.

Corporate structure and culture
What do we mean by corporate structure
.ecoding the term

The term 'corporate structure' refers to the way the various parts of an organisation are arranged and related as opposed to the arrangement of buildings. In contrast, business structures refer to the many forms of commercial legal entities such as sole trader, partnership. public or private limited company, cooperative or corporation. The term corporate in this conte!t simply refers to the body as a whole rather than its individual parts. The word corporate comes from the Batin corpus meaning body. Its use is not limited to 'corporations' 8a group of people authorised to act as an individual and recognised in law as a single entity9
The classic view

The classic view of corporate structure is as a chart showing the arrangement of divisions, units, departments and other components of an organisation and the hierarchy of the ey positions. $hat is being described is the division of wor and labour and this is but one view of the structure. In large international corporations, the structure might be represented geographically on a map of the world. Gowever the classic view of the structure as the configuration of the division of wor and labour has its limitations and should not be thought of as representing all aspects of the structure.
The systems view

The essence of any structure is that all parts are interconnected so as to form a coherent and functioning whole and that it e!ists to fulfil a particular purpose. In the case of an organisation structure, it e!ists to fulfil the mission. Chec land, "c off and 0hannon reach similar conclusions that a system is a set of components interconnected for a purpose and therefore when (eming as s in his boo 6ut of the Crisis, 'Is your organisation a system%', he is suggesting that organisations behave li e systems in that their components wor together to accomplish an aim. &y way of a contrast, )irsig in his boo , Ten and the "rt of *otorcycle *aintenance, refers to the motorcycle as not #ust a structure of assembled parts but a system 8all parts wor ing together to perform the function of the motorcycle9. 0ystems thin ing is one of )eter 0enge's disciplines for building a learning organisation. The others are:
• •

0ersonal mastery ,ental models

• •

2hared vision $eam learning

0enge argues that the essence of the discipline of systems thin ing lies in a shift of mind:
• •

2eeing interrelationships rather than linear cause-effect chains 2eeing processes of change rather than snapshots

Therefore when we tal of loo ing at an organisation as a system it means we are ta ing a particular view or perspective of the organisation. There are many other perspectives we could ta e such as how nowledge is utilised or we could loo at the political forces in the organisation and their impact on behaviour. " systems view of the organisation could ta e the form of several models each representing a distinct aspect of the organisation's comple!ity. These models might include:
• • • • •

*unctional model showing the division of work and labour with the lines of responsibility and accountability 0rocess model showing the arrangement of business processes and the pathways along which work flows and the corresponding results are produced (ommunications model showing the network of internal and external communications with the stakeholders 5ocation model showing the disposition of physical resources such as the buildings, plant and facilities where the organisation functions (ultural model showing the factors influencing the organisational culture and the way they are channelled through the organisation as values and principles that impact behaviour

"ny model of the organisation that is produced in an attempt to understand and manage its comple!ity can be considered as a representation of the corporate structure. "nother advocate of systems thin ing is Iussell "c off, associate of $ +dwards (eming, http:?? ?,?hi?business?@==;:,2.stm " comprehensive treatment of systems thin ing is at http:??,.net?systems? +!tending the *etaphor U0ystemU by "t inson and Chec land, -1;;, The Tavistoc Institute http:?? 6nce *ore unto the 0ystem 0. 5laser, -1;C, The Tavistoc Institute http:??

What is the purpose of the structure
The way wor and labour is organised is unique to each individual organisation and to be effective this is carried out only after the strategy has been determined. "s (ruc er points out, 'structure follows strategy'. "nd: 'If an organisation does not now where it is going there is no intelligent basis for organising human effort and material resources.'

The structure needs a clear aim as it is formed in order to implement the strategy. The strategy therefore becomes the purpose of the structure. Its measure of success is how well it e!ecutes the strategy which is why companies are continually re-organising, searching for the right structure to achieve the business goals. &ut if the same processes are employed to achieve the organisation's goals, no amount of rearranging the division of wor and labour will improve performance. *ore often than not these changes are made for financial reasons to try and ta e cost out of the enterprise because either the strategy has failed or the circumstances changed. &y ta ing out costs without process redesign, the processes often malfunction. " more prudent approach is to apply systems thin ing in any cost reduction programme. 6ften it is not the division of wor and labour that is at fault at all but the strategy or the business processes. &y viewing the division of wor and labour through an organisation chart, firms become blind to the causes of failure. $hat they fail to realise is that all wor is a process and that it is the processes that deliver the results not the bo!es on the organisation chart - hence the importance of viewing the organisation as a system of processes rather than a structure of functions.

Why is structure important
(ruc er observes that the best structures will not guarantee results and performance, but the wrong structure is a guarantee of non-performance. Ge recognised that the right structure does not evolve and is not intuitive4 organisation structures have to be designed. "n organisation regardless of the number of employees can function without structure providing the processes are capable. Just as a tree must have structure to grow, when the small organisation wishes to add diversity or comple!ity it needs a structure. Gowever, the wrong structure impedes process efficiency and effectiveness as it contributes to bottlenec s, duplication of effort, inter-department rivalry, turf wars and a host of issues that arise from the interaction of people within an organisation. $ith modern structures li e networ s and virtual organisations these inds of problems don't arise but they are not appropriate for e!ecuting all strategies. (avid )ac ard remar s in his boo the G) $ay, an organisation's structure affects individual motivation and performance so if people are placed in positions for which they are unsuited or allocated wor for which they are not competent there will be a detrimental effect on motivation and performance. &ut even when people are placed in the right positions and allocated wor they are competent to perform, there are other factors that effect motivation and performance such as the corporate values, culture, management style, pay and conditions. Just as in a building where the structural components dictate its form and have hidden properties, the result producing components of an organisation dictate corporate structure but

concern for people. This atmosphere is encompassed by two concepts. employee control. as was indicated previously. "lthough structure is the arrangement of Ge implies it can be learned ie it does not form part of the human nature and it is distinct from individual personality. however it is shared by the members of one group. +dgar 0chien )rofessor of *anagement at *IT defines culture as the shared tacit assumptions of a group that it has learned in coping with e!ternal tas s and dealing with internal /ow are values' culture and structure related 7rom the above brief overview of culture. they often reply in terms of their feelings and emotions that are their perceptions of the essential atmosphere in the organisation. This white space is occupied by the business processes as . management contact and autonomy basic assumptions such as respect for the individual. These properties are commonly referred to as the organisational culture which is covered in the ne!t section. ceremonies symbols. culture will influence how these parts interact. Gofstede 8-11C9 defined culture as 'the collective programming of the mind which distinguishes the member of one group or category of people from another'. customers. Culture provides a code of conduct that defines acceptable behaviour whereas climate tends to result in a set of conditions to which people react such as political. it can be seen that values are one aspect of culture. taboos. It will certainly discriminate between effective and ineffective structures. social and technological 8)+0T9. language and norms of behaviour values and beliefs such as integrity.hide the inner strength upon which its success is built. economic. responsibility for actions and decisions. Two organisations in the manufacturing sector may have the same organisation structure on paper but function very differently. namely culture and climate. the basis of reward and punishment. internal cooperation and freedom • http:??web. suppliers. Ge conceptualises culture as a layered phenomenon that has three interrelated levels of meaning: • • artefacts and creations such as rites. myths and stories. Culture is more permanent whereas climate is temporary and is thought of as a phase the organisation passes through. Corporate culture $hat characterises a corporate culture% If we as people to describe what it is li e to wor for a particular organisation. decision making. indicating that it is the white space on the organisation chart that is more significant.

. In his research primarily addressing national cultures conducted in the -123s. +ules-based culture In a rules-based culture 8or command and control culture9 people will follow the rules or procedures regardless of the consequences but assume the rules are imposed for the general good. Ta ing a simple approach we can classify organisations as either being rules based or values based. "s values maybe one of the factors that determine the position of units in a hierarchy. &attles are one-off events in which command and control structures are proven effective. this is not to say every value should warrant a dedicated organisational unit. a (utch organisational anthropologist and writer on the interactions between national cultures and organisational cultures. fire fighting. Command and control cultures are used in the military because of the nature of the #ob and the si<e of the units. *anagement disciplines grew out of the military and the early industrialists followed the military models. demonstrated that there are national and regional cultural groupings that affect the behaviour of societies and organisations.observed by Iummler in his boo Improving )erformance: Gow to *anage the $hite 0pace in the 6rganisation Chart. uncertainty avoidance G. the battle would be lost. 8see members' pages9 the structure can be a good indicator of the alignment between values and structure. and that are very persistent across time. This has been perpetuated over the decades and attracted the type of managers who feel in control in such an environment. 5eert Gofstede. its position on the organisation chart might indicate whether this is true or false. Gowever. masculinity'femininity H. long-term orientation <ofstede added a Gth dimension in >??A! *ore on Gofstede's dimensions of culture is given in the members pages. air. power distance J. road and rail accidents all require people to follow orders without question as time is of the essence. /ow do corporate cultures differ There are several ways of loo ing at corporate culture. 6ther one-off events li e hurricane disasters. individualism'collectivism I. 6ften military commanders would find #obs in management when they finished their military career and would manage their staff in the same way with disastrous results. but when it is everyone's responsibility it often arises that no one is held accountable and hence no one manages it. If the natural environment is something the organisation values. Gofstede identified four dimensions of culture: >. If everyone on the front line was free to question the orders and ta e a different action. The strategy is wor ed out at &rigade GQ and orders issued down the line.

both verbal and non-verbal approaches to completing tasks attitudes toward conflict decision-making styles sets of values styles of management " study conducted in . The selection process ensures only people who share these values are recruited and it is often difficult for those steeped in command and control to feel comfortable in such a culture.cfm%articleKidLC=2@ 0ome of these are differences in: • • • • • • communication styles. These organisations are quite rare.ars AstraLeneca <ewlett 0ackard !ational cultures In a trading relationship there are other differences that run deeper than organisational culture and mirror national cultures. Iesearch by "ccenture in July . +!amples are: • • • • 2erco . The values held by the founder have a profound effect on the nature of the organisation he or she builds. 0uch people surround themselves by others who share these values and rituals are developed to emphasis them. weigh up the circumstances and apply their s ills and nowledge. people will wor out the right things to do. 0ee http:??www-rohan. Gence certification body auditors have difficultly understanding how the systems achieve results without prescriptive documentation.showed that the organisational cultures of one firm in one country can influence the organisational culture of affiliated firms in different countries. "lthough these organisations have often been forced through mar et pressure to see I06 133.33.33@ found that cultural differences are one of the ma#or reasons why offshore outsourcing arrangements fail http:??newsroom. even where the national culture of the affiliate is substantially different from that of the parent.sdsu. they see it as superfluous to their 8nb )(7 document9 .0alues-based culture In a values-based culture there is less prescription of rules because from an understanding of the ob#ectives and applying the corporate adding no value.

health. symbols.What are corporate values and what effect do they have Corporate values are confirmed by top management e!pressing what they believe are the fundamental principles that guide the organisation in accomplishing its goals. the accounting function will be dominant. health. . $here it is believed that quality. Anless the recruitment process recognises the importance of matching people with the culture. the structure may need to change. There is however. the sales person would not even thin of deceiving the customer into buying something that would later be discovered unsatisfactory. prefer to integrate them into process design.that it is pervasive and a positive force for good. maveric s may well enter the organisation and either cause havoc in the wor environment or be totally ineffective due to a lac of cultural awareness. Why are values and culture important Culture has a strong influence on people's behaviour but is not easily changed. they won't be visible in the high level structure. health.alues are not actions to ta e or decisions to ma e. safety or environment is not necessarily one that is ignorant of their importance. e!cellence. language etc. customs. If there is scant regard to quality. They condition behaviour so if one of our values is integrity when ta ing an action or decision we would as ourselves. the mar eting function will be dominant. This often arises due to ignorance rather than a deliberate policy. )eople who are oblivious to the rites. no evidence to suggest a right or wrong culture. safety or the environment. Gowever. innovation. Gowever. what it stands for such as integrity. )ositions with the word quality in the title might indicate leadership in quality or it might indicate delegation to a supernumerary. values and assumptions that are so ingrained in the fabric of the organisation that many people might not be conscious that they hold them. 5ood leadership strives to bring about a set of shared values. safety or environment culture and you may detect this in the structure by there being senior positions dedicated to these functions. the prevailing culture will influence that structure and it will reflect the core beliefs in the purpose and driving force eg if profit is ing. responsibility and fairness. where is the integrity in that. may not advance and will become demotivated. $hat is important is that the culture actually helps an organisation to achieve its goals . . There might be robust processes that ta e due account of all relevant factors and rather than separate these into discrete functions. you will need to loo more closely than the organisation chart. or how would I ensure the integrity of that #udgment% 6ften they become instinctive so in a customer focused culture. safety or environment are important to business success there will be a strong quality. norms. a structure without positions dedicated to quality. Gowever. /ow does culture impact structure The organisational structure should be designed to enable it to function effectively whilst it is pursuing a certain mission. It is an invisible force that consists of deeply held beliefs. if the mar et is ing. If the mission changes. reliability.

managers will recruit innovative people and once employed will continually see new ways of doing things. policies. it drives performance. /ow does culture impact change 7or many people. the culture in an organisation has to be discovered . &ehaviours are e!pressions of shared values and assumptions with results the product of behaviours. The armed services need obedience and change in policy and a practice needs to be difficult although changes in the tools used to do the #ob needs to be encouraged. &oth types of culture have a role in society. performance may be patchy and unpredictable. &) or Gewlett )ac ard the one constant is change for without it they die. /ow does culture impact performance 0tephan (ahl suggests that it is possible to describe culture as a shared set of basic assumptions and values. In this connection arises its very important responsibility for attaining and maintaining high levels of morale and human relationships throughout the organisation. $e can therefore suggest there is a strong relationship between values. This culture is carried forward by an acceptance?discipline to follow them and an integrated system of mentors or sensei 8a Japanese title for a person of respected stature9. It must also ensure that the wor ing of management accords with these intentions and that there is proper coordination within the framewor established. operating procedures and systems thin ing. . "lternatively in an innovative organisation li e *icrosoft. They have propagated their ideas through a culture of discipline to mission statements. with resultant behavioural norms. 6r in the case of Toyota a series of boo s collectively called the Toyota $ay. we can say that the results produced will not be those e!pected by the group. behaviours and results. people who crave stability and security and once employed these people will follow the routines and defend the status quo. managers will recruit people who are unli ely to challenge the status quo. 0tatements of the vision and values help but the rites. if the culture is one where change is resisted or unwelcome. It follows therefore that in an organisation with a well defined culture. when the behaviours don't align with the stated values. "lternatively. symbols and taboos are all learnt mainly by observation. The source of Toyota's current problems around the world is their inability to find 8or hold on to9 sufficient mentors to match their e! is not something that is necessarily articulated by the managers. we can say that the results produced will be those e!pected by the group. In many successful companies the culture is set by the values bestowed by the founders and their successors.In 6rganisation the 7ramewor of *anagement &rech points out the lin between morale and control and the responsibility of top management to create a suitable form of organisational structure and maintain it as a sound framewor of management action. whereas in an organisation with no discernable culture or one that is multicultural. attitudes and beliefs which manifest themselves in systems and institutions as well as behavioural patterns and nonbehavioural items. Therefore if the culture is one where innovation is encouraged and rewarded. Therefore when the behaviours align with the stated values. The corollary being.

wi ipedia.wi ipedia. both on and off the #ob. 0ee also http:??en. breaking down work into simple tasks and developing skills http8'' i?TheoryKVKandKtheoryKF In contrast.>CJG! . the Japanese management style has been labelled theory T which is a belief that organisations should focus on increasing employee loyalty to the company by providing a #ob for life with a strong focus on the well-being of the employee.achiavelli >HK? . 5eaders must8 obtain mass consent. Adam 2mith >@JI->@?A! 2cottish philosopher. In the -1@3s (ouglas *c5regor at the *IT 0loan 0chool of *anagement developed two theories of human motivation.>GJ@! Italian writer and statesman. strive for cohesiveness. conceived four principles or maxims of leadership.adamsmith. e!pressions of culture-resultant behaviour are modified by the individuals''dr-adam-smith-NJC>@JIN>>>@?ANJ?' 4li %hitney >@KG .(ahl points out that although all members of a group or society share their culture. there were still #obs for life in the A/ and A0 but through the boom and bust years of the -123s and -1. "t the end of world war II. have a will to survive and must set an example to the people they lead.a label given to a belief that workers inherently dislike and avoid work and must be driven to it $heory . These were: • • $heory M . In the >Cth century Adam 2mith saw advantages in specialisation.3s this situation has almost disappeared. 7or the Japanese this style of management led to great improvement in performance but it is debatable whether this theory can be applied successfully in the $est due to the different approach ta en towards employment. and therefore culture does not predict individual behaviour.a label given to a belief that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs 6rganisations where theory V prevails is li ely to have a different performance than those where theory F prevails. 0ee also http:?? i?TheoryKT 7urther resources (rominent people 0ome of the more prominent people who have influenced and developed theories on organisation structure and culture include: +iccoli . . 6rganisations can no longer sustain the same structure for decades as they once did.

and would therefore be more costly. In his book 9n the 4conomy of . economist and inventor who is credited with conceiving the first automatic digital computer. he argues that by dividing work into different processes.AACJ' *rank 6ilbreth >CKC .pro#ects. Alfred 0 2lone >C@G . helped to clarify the organisational structure of many manufacturing operations.>?JH! and 5illian'whitneyo.>?KK! .cottontimes. and manufacturer.html <enry *ayol >CH>->?JG! *rench engineer.htm (harles 1abbage >@?> . nee . best remembered as the inventor of the cotton gin a machine to clean the green-seed cotton! but most important for developing the concept of mass-production of interchangeable parts in >CA> http8''www.makingthemodernworld.>?@J! 0ioneered time and motion study as a means of developing the best way of'babbage'rosenb. <is idea in >?JG of unity of command. the employer may purchase only that which is necessary for each process. *redrick %inslow $aylor >CGK->?>G! American engineer known for defining the techniques of scientific management which is the study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. which stated that an employee should receive orders from only one supervisor.>?H@! American industrialist who revolutionised factory production with his assembly-line methods http8''www.achinery and . each requiring different'people'16.oller >C@C .American http8''www. %hereas if the whole work were executed by one workman that person must possess sufficient skill or effort to perform the most difficult or laborious of tasks. or effort.anufacturers. <enry *ord >CKI .>C@>! 4nglish mechanical engineer.

motivation and teamworking 0erformance management 0rocess analysis and improvement .otors as president and chairman for more than a quarter of a century.anagement system standards 4xcellence models and awards 2trategic management (orporate governance 4lements of corporate strategy How is it related $his arises from the corporate structure and culture $hese attributes arise from the corporate structure and culture $he way this is done arises from the corporate structure and culture $he way this is done arises from the corporate structure and culture $he way this is done arises from the corporate structure and culture $he way these are approached arises from the corporate structure and culture $he way these are approached arises from the corporate structure and culture $his is what develops corporate structure and culture $he way this is done arises from the corporate structure and culture $he way these are approached arises .American corporate executive and philanthropist who headed 6eneral . empowerment. #ember pages Corporate structure • different kinds of work and labour • organising work • • • the pros and cons of different kinds of structure creating a corporate structures changing a corporate structure Corporate culture • different types of culture • problems with culture • changing an organisational culture +elated elements To what is it related /ole of the individual 5eadership.anaging continual improvement .

article and lin s http:??www.anagement systems Impact of corporate strategy on people $he way these are approached arises from the corporate structure and culture $he way this is done arises from the corporate structure and culture .htm 6n dimensions of social cultural http:??changingminds. +dgar G.geert-hofstede. $he way this is done arises from the its stakeholders.pdf 8nb )(7 document9 " general overview of 6rganisational Culture with many useful references http:?? i?6rganisationalKculture ..33@ Improving )erformance: Gow to *anage the $hite 0pace in the 6rganisation Chart 5eary ". )feiffer $iley4 = edition 8. .scn. )eter 7 (ruc er &!planations?culture? luc hohnKstrodtbec Kculture. Godgetts *c5raw-Gill @Iev +d edition .nd Ievised editions.33C9 Culture . Collins4 Ieprint edition . 6rganisational Culture and Beadership.htm " good study of various writers on culture that includes characteristics of each type of culture and measures that tease out the culture http:??www-rohan.shtml 6n dimensions of social cultural http:??www.from the corporate structure and culture . 0chein.33@ The )ractice of *anagement. 0trategy.wi ipedia.several suppliers and customers corporate structure and culture +elated publications and websites 0trategy and 0tructure: Chapters in the Gistory of the "merican Industrial +nterprise by "lfred (upont Chandler &eard &oo s -11@ The G) $ay by (avid )ac ard. . and &ehavior by Iichard *.info?mcult.anaging quality across the global! organisation. &rache Jossey-&ass4 -11:.332 International *anagement: .htm 5eert Gofsted gathered e!tensive data on the world's cultures and generated impressions of that data into charts and graphs that help better understand the many sublet implications contained in his raw data http:??www. Iummler and "lan ).

"n e!cellent e!planation of systems thin ing and its importance in building learning organisations 6rganisation the 7ramewor of *anagement + 7 B &rech published by Bongmans 5reen and Co 8-1@:9 .The 7ifth (iscipline )eter 0enge published by Iandom Gouse &usiness &oo s.

and apply the combined s ills to enable the survival and success of an organisation. the power of a leader to influence others is established within the organisational structure. while others say that there is a significant difference between the two. motivation and team'or#ing The leader within an organisational conte1t 6rganisations are made up of individuals brought together to enable it to achieve its mission. In the modern world with organisations facing many challenges. " leader is someone who has vision and drives change whereas a manager maintains stability through planning. The organisation's structure will determine how these individuals wor together in teams and how they relate to one another. control and monitoring activities. Beaders have an important role to play in co-ordinating and integrating the activities of these individuals and teams. Gowever. ensuring that they are aware of the institution's priorities and that they are wor ing towards them. #embers" pages Theoretical debates on the differences between a leader and a manager are further developed in the *embers )ages section. it is important that every individual in the organisation is wor ing towards the same goal. $ithin an organisational setting. empo'erment.&eadership. nowledgeable and respected leaders who inspire and motivate. 0ome argue that there is no real difference and that leadership is #ust one aspect of the role of a manager. 7or an organisation to be successful. 2eadership qualities Beadership is concerned with the influencing of the actions and attitudes of others ensuring that everyone is following a common goal. Beaders achieve this not only through the authority delegated to them within the organisation's hierarchy. there is an emerging debate that managers need to be both managers and leaders. . but also by being charismatic. This section outlines: • • • • the qualities of a leader and variables which impact upon the success of a leader how a leader inspires and motivates why empowerment is important the importance of teamworking #anagers and leaders There is much debate about the difference between a manager and a leader.

0uccessful leaders build on their self. DIndividual differences are e!plained in Iole of the individual. In order to achieve this. . Quality focus Beaders aim to achieve their personal best and help their teams to continuously improve in all aspects of performance.E (roblem solving and 5udgement making skills +ffective leaders have an ability to solve problems and to ma e ob#ective decisions in a timely manner.E 3nowledge and e1pertise4 $e are more li ely to follow someone if we admire and respect his?her e!pertise and nowledge.positional power does not necessary mean that others will follow or that they will follow willingly. Beaders need to inspire and motivate their wor force to achieve the organisation's goals. The leader has a ey role to play to developing this sense of team spirit. D"uthority and power are further discussed in Iole of the individual. Beaders need to then ensure that the necessary systems. resources and processes are in place to enable the vision to be achieved. %elf-knowledge /nowing and understanding our strengths and wea nesses is important if we are to develop and grow.nowledge and encourage their teams to do the same. It is therefore important that the leader has certain characteristics and abilities. sponsoring improvement in the organisation's processes and striving for total quality in all areas. 0ision $ithin an organisational setting. It is important to clarify the organisation's vision so that everyone understands his?her place in achieving it and e!actly what is required. This builds an organisation into a community of people wor ing together to achieve a shared vision and goals. It is the role of the leader to manage this diversity and to reconcile the needs and values of the individual with the needs and values of the organisation to encourage creativity and vision and minimise frustration and conflict. %ocial skills Beaders channel the efforts of individuals into team efforts. This involves setting demanding yet achievable targets. effective wor ing relationships have to be built. it is not surprising that individuals will view their wor . the organisation itself and the people they wor with in different ways.

learning. Attitude to learning +ffective leaders are always learning and they encourage their teams to do the same. 0ome leadership styles may be more successful in certain situations and therefore leaders may need to adapt their style to meet the needs of the organisational culture and conditions. The style of the leader This needs to be consistent with the needs of the organisation and the needs of the team. to the right specification and within the correct timescales. . D"wareness raising. Communication skills 0ome leaders are #ust better at communicating than others and have a greater ability to encode and decode messages. Beaders must also lead by e!ample. It is the role of the leader to integrate the activities of individuals. then this will have a detrimental impact upon the organisation achieving its mission. The culture of the organisation Beaders do not operate in a vacuum and consideration needs to be given to the conte!t in which they are leading. They can achieve this by building effective wor ing relationships and trust within their teams. training and development are further developed in the Iole of the individualE. This means dealing with issues of interteam conflict and being proactive in dealing with instances of bullying or harassment. Beaders need to be respected by their teams. The most effective leadership style is an approach that is both considerate and compassionate to the wor force and focused on achieving organisational ob#ectives by getting the #ob done. +elationship with the team Teams are made up of individuals brought together to enable the organisation to achieve its mission. If individuals are pulling in different directions. ensuring that they are aware of the institution's priorities and that they are wor ing towards them.2eadership success There are a number of variables that impact upon the success of the leader within an organisational conte!t. DCommunication s ills are further e!plored in CommunicationsE. This is because they have developed their communication s ills based on their nowledge and e!perience of what wor s well.

there has been a shift in individual e!pectations and we now e!pect more control over what we do and a greater say in the decision ma ing process. Beaders should involve their teams in this process and ensure that the goals are demanding and yet achievable and realistic within the required timeframe. organisations need to successfully tap into the nowledge and s ills of their wor force and use this to enhance the organisation. 5oals should be communicated effectively to the team. Culture 7or individuals to develop their nowledge and to ta e on a broader perspective to their wor . The ey leadership theories are e!plained in the *embers )ages. In order to compete in this environment. that there is clarity about where responsibilities lie or there will be confusion regarding who does what. they need to operate in an environment where they feel safe to ta e intelligent ris s. 6mpowerment >owadays. as ing them for ideas and suggestions on how the organisation can be improved and also getting feedbac on the success of new initiatives. This ma es greater use of the nowledge and s ills of the wor force. %tructure The structure in place within the organisation needs to represent and enable empowerment. .oal setting Beaders must set clear goals. Communication $e can involve the wor force directly in the communication process.. 6perating in a blame culture will stifle innovation.ecision-making This involves allowing the wor force greater freedom and autonomy in the design of their wor and greater responsibility for ma ing decisions that directly impact upon them. +mpowerment centres on giving people a greater say in what they do for the benefit of both the individual and the organisation. we e!ist in an environment of rapid change and technological advances and an increasingly competitive environment. 7eeling unable to control and influence what you do is a ma#or factor contributing to wor place stress. It is important that if we claim to believe in the values of empowering our wor force that we actually ta e proactive steps. This can be achieved in a number of ways. . creativity and the willingness to accept responsibility. It is important however. In addition. " flatter structure will not only reduce operational costs but will also enhance empowerment.

*otivation is a very individual and multifaceted concept. you need to now where you fit in. 0ome desires are tangible S more money. be honest. )roblems e!ist when these sets of e!pectations are at variance with one another. They are often interrelated and interdependent. wor place motivation is a comple! issue. a bigger house . "s an individual. )roblems can e!ist when at an individual level. position within the organisation's hierarchy and an indication of our level of authority.while others are intangible S a sense of achievement. a better car. we have a set of unspecified e!pectations about our role. Beaders can ensure that their teams now how they contribute to the overall effectiveness of the organisation to encourage ownership. when we ta e on a position within an organisation we usually now our salary. positive recognition. contract of employment and person specification. 6ur needs and desires do not e!ist in a vacuum. If we feel that they are getting more for the same or less . 7or e!ample we e!pect to be shown respect. 6ur desires and needs are not fi!ed will change throughout our lives. responsibility and entrepreneurial thin ing. a challenge. $inancial rewards 7inancial rewards are usually decided at an organisational level and are often outside the immediate control of an individual manager. we are all different and we are driven by different desires and wants. we compare how much financial reward we get compared to others doing the same type of wor . strive for perfection and to uphold the ideology of the organisation. Gowever. Gowever. or when either the individual or the organisation does not feel that their needs are being met. to be treated fairly and to be enthused by our wor .E #otivation " motivated wor force will be more focused and productive and will ensure an organisation achieves its business ob#ectives. in addition. role and responsibilities. #otivating factors "s individuals.7nderstanding the bigger picture In order to now your value to the organisation. or wor ing at the same grade. In addition. leaders may have direct influence and control over some motivating factors and none over others. The psychological contract The psychological contract is the term used to describe the set of implied individual and organisational needs and e!pectations that do not form part of any formal agreement. 6ur organisation also has a set of unspecified e!pectations outside of those outlined in the #ob description. They are also sub#ect to change and refocus. DThe lin between empowerment and stress is further developed in the *embers )ages section. There is an e!pectation for us to act with integrity. It is important therefore that leaders are aware of what drives and motivates their staff in order to facilitate this process. within the wor place.

part-time wor ing and seasonal wor are the norm for certain industry sectors. A sense of security &eing in regular permanent wor with a contract of employment and conditions of service is the driving force for many. In some occupations and industries this sense of security can be difficult4 short-term contracts. &y setting realistic targets. leads to frustration. praise and recognition. then we feel a sense of inequity in our situation. managers can directly influence motivation within their team. regressing to childli e behaviour or withdrawing from the situation. 7rustration impacts upon our behaviour and we can act in a positive.E DThe ey motivational theories are e!plained in the member pages. "gain. have changed our wor ing practices. There are a number of variables which impact upon the success of the team and how close the team feel as a group of individuals. >egative action can include aggression.effort. giving encouragement. A sense of belonging *anagers have a ey role to play ensuring that the team are wor ing well together and that conflict is dealt with. These include: 2ocation and distance "dvances in communications technologies and the globalisation of the economy. *ore people are wor ing from home. clearly defining their requirements.E Teamworking Teams e!ist within organisations in order to bring together the collective s ills. $rustration 7ailure to achieve our needs and desires. constructive manner or in a negative manner. wor ing fle!ibly. )ositive action may include problem solving a solution around the barrier or re-thin ing our desires and goals to ma e them more realistic and achievable. A sense of achievement This will mean different things to different people and it is important that managers are aware of how influential they are in cultivating this. these factors are often organisational issues and outside of the direct control of managers. because of a barrier. This barrier can be either real or perceived. This can then impact upon our satisfaction and performance. abilities and creativities of individuals. 7actors that influence our frustration include: the level and potency of need4 the degree of attachment to the desired goal4 the strength of motivation4 and the personality characteristics of the individual. or . DIndividual personalities are further developed in the Iole of the Individual.

The leader must be fair to all the individuals that ma e up the team so that the team will have respect for the leader and feel that all members are treated equally. The leader must ensure that the team are clear about their roles and responsibilities and deal with any conflicting situations as they arise. The leader is responsible for bringing together all of the individual s ills and abilities for the collective benefit of the team. " successful team ma es the best of these differences with each member of the team complementing each other. it is not surprising that individuals will view their wor . The leader must ensure that there is a culture of trust and not of conflict. Gowever. Therefore. 6rganisations need to put systems in place so that the wor force does not feel alienated from one another. the situation can lead to members becoming frustrated and stressed. encourage good communications and positive wor ing relationships. It is the role of the leader to manage this diversity and to reconcile the needs and values of the individual with the needs and values of the organisation to encourage creativity and vision and minimise frustration and conflict. $e need to wor in a positive wor ing environment in which issues of conflict and unacceptable behaviour are dealt with. The stage of development of the team will therefore impact upon how comfortable the team feel together.wor ing across the globe. It is important to consider how these modern wor ing practices can impact upon the cohesiveness and success of the team. we can all bring different ideas and qualities to the team. DThe ey teamwor ing theories are further developed in the *embers )ages. Individuals may not feel that they belong to a team but that they are wor ing in isolation. 2eader The style of the leader has a significant impact upon the team. #aturity Teams develop and grow. the organisation itself and the people with whom they wor in different ways. and deal with any incidents or bullying. 0ome teams however do not ac nowledge difference and a situation of 'groupthin ' develops where challenges to new ideas are stifled because of in-group pressures to conform. $ithin an organisational setting. how well they now each other and how well they can wor together.E . bac grounds and s ills. harassment or unacceptable behaviour in-line with the organisation's policies. #embers $e are all different with different e!periences. This may include regular team meetings where members of the team 'physically' come together and communication structures that enable day-to-day discussion and interaction. /armony and conflict 7eeling part of a team can be a significant motivating factor for many individuals. if the group is in conflict. The role of leader is to ensure that all conflict situations are resolved quic ly and fairly to restore harmony to the group.

this site include sections on motivation. The site has a number of interactive qui<<es to assess individual responses. 8. Essentials of rganisational Beha!iour. confidence and health. B. www. This is an e!cellent introductory te!t for anyone who is new to management or who wants to develop their nowledge and understanding of management issues.i-l-m. (ole of the individual . Websites www. This is a summarised version of the fuller Baurie *ullin te!t S *anagement and 6rganisational & an!iety. 7inancial Times )rentice Gall.#embers" pages section The *embers' )ages are only available to CQI members: • • • • • • the difference between a manager and a leader empowerment and stress key motivational theories key leadership theories 1elbin E teamroles team conflict and stress +eferences Te1ts &oddy. It is an e!cellent reference source for anyone who wants to develop their nowledge and understanding of how organisations behave and the role of the manager in co-ordinating team and individual Chartered *anagement Institute This is a useful website which has free access to a number of research reports on various management issues. (.acas. 8.u The website for "cas. stress. Management and Institute of Beadership and *anagement This is a useful website which has free access to a number of articles on a variety of management &&C website. www.managers. "s well as news. This website has lots of useful information on managing wor place relationships. *ullins.33@9. 7inancial Times )rentice Gall.

If individuals are pulling in different directions. some of them visual 8age. . (ersonality $e all have a number of characteristics that influence how we behave.The individual within an institutional conte1t 6rganisations are made up of individuals brought together to enable the organisation to achieve its mission. this will have a detrimental impact upon the organisation achieving its mission. $e classify people by their personality and often tal about them being strong. nor agree with your opinions. *anagers achieve this through the authority delegated to them within the organisation's hierarchy. moody and insecure. $e differ in many ways.This article loo s at the ways in which individuals differ. abilities9. 7or e!ample we tal about someone . Introduction . The organisation's structure will determine how these individuals are brought together and how they relate to one another. It is the role of the manager to integrate the activities of individuals. and how #obs are defined and designed. $e e!pect that people remain constant in their personality and therefore changes in characteristics can be observed. how to wor with individual differences to enable organisations to reach their goals. &ut diversity can also be challenging and it can sometimes be difficult to understand things from a different point of reference.ifferent perspectives It can be interesting and rewarding to discuss a topic from another point of view and to gain insight into other perspectives. it is important to understand and appreciate that not everyone will see things or value the things that you do. This section of the &ody of Quality /nowledge will outline: • • • %ays in which individuals differ and the role of the manager in harnessing individual differences within an organisational context <ow individuals are structured within an organisation to enable it to achieve its mission and how authority is legitimised through the structure <ow #obs are defined and designed within an organisation Individual differences $e are all different. The success of the organisation is dependent on each individual wor ing together to achieve the common goal. gender9 some of them non-visual 8personality. 7rom an individual perspective. Issues of different perspectives and how these influence how we communicate are further discussed in Communications. These differences mean that we often have different values and attitudes on certain issues and individuals will perceive situations in different ways. a good laugh and dependable or shallow. ensuring that they are aware of the institution's priorities and that they are wor ing towards them.

These aspects are developed later in this section. This can often be as a result of frustration or stress. The team will also be affected by the situation. $e would e!pect people to behave in a stable way to ensure continuity in meeting business ob#ectives. then the individual will feel out of their depth. ability and performance management are all further e!panded in )erformance management. 7or e!ample. this stability in characteristics is important. $e respond to our environment and this influences our personality. $ithin an organisational conte!t. unable to communicate or ma e decisions. $hen we assign someone to a #ob that does not match their abilities. . certain characteristics will be more suited to a particular #ob than others. This has an impact on the individual who feels unable to complete their tas s to the required and e!pected levels of performance. This leads to a lac of enthusiasm and care for the #ob and a sense of frustration for the individual feeling unable to achieve their potential. the result can be frustration and stress for both the individual and their wor colleagues. Theoretical perspectives on personality differences and their use in the recruitment and selection process are further developed in the members pages section. Therefore it is possible to predict the way in which a certain personality type will behave in a certain situation. "gain this frustration impacts upon the rest of the team and ultimately their performance. idiographic. They will often have to ta e on e!tra wor and duties in order to support their colleague. In a situation where an individual's abilities e!ceed those required for the #ob. Gow we react will depend on the individual so we cannot study and predict how people will behave in certain circumstances. then the individual may find the #ob too easy and become bored. In a situation where an individual's abilities do not match the requirements of the #ob because they are in some way lac ing. This approach identifies personality as consistent. centres on personality development as a dynamic process. because the #ob is either not sufficiently demanding or too demanding. Competency. )ersonality can therefore be an important factor in the recruitment and selection process. s ills and competencies. Competency and ability (ifferent #obs require different abilities. There are two main approaches to the study of personality. $e will have been chosen for our #ob because of certain characteristics we display. nomothetic. we would not want to employ a manager who is withdrawn. )ersonality traits required for a #ob will often be outlined in a person specification and our personality will be observed and evaluated through the interview process and may be assessed using psychometric testing. 6ne approach. largely inherited and resistant to change. The other approach. "dditionally.acting 'out of character' or 'not being his?herself'. centres on personality as a collection of identifiable and measurable characteristics.

Too big an imbalance and we will suffer negative stress. %hen our physical defences are weakened. stomach problems. Therefore. $hings that happen in our day-to-day life can cause us stress. $hese can include family relationship difficulties. frustration. money worries. Work stressors. They assess situations and channel their energies into a proactive response spurring them on to achieve their goals. Change stressors. may be e!hilarating and e!citing to another. and indeed our reactions to stressful situations and how we cope with them varies throughout our life. 6etting a new #ob. constantly sitting in traffic #ams or standing in a long queue at the bank. 6ur response to stress depends on a balance between how demanding a potentially stressful situation is perceived to be and our ability to cope with it. Body stressors. allergies psychological signs such as impatience. *eelings of inadequacy. constantly striving for perfection and a disposition to worry all impact on our thought processes and how we perceive and cope with stress. a situation that may be stressful to one individual. • • • 0tress impacts on us in a number of ways and can show as: • • • physical signs such as headaches. 4ven seemingly insignificant lifestyle stressors can build up over time and cause stress. <owever. 0ome people are stress victims. anger. These are defined as stressors and include: • • Lifestyle stressors. $e all find different situations stressful and we all react to them in a variety of ways. this puts a strain on us and can make us vulnerable both physically and emotionally. motivation and teamwor ing. Thought stressors. 2ome can cope with these changes better than others. $he state of our physical condition has an impact on how able we are to cope with stress. the type of #ob we do and how 'happy' we are in our work all impact on our stress levels. our health and our support system which includes friends and relatives. avoiding situations or being with certain people. having children. finding a new partner. 9ur working environment. +esponses to stress 0tress is a very individual concept and our responses to it can vary considerably. we are more vulnerable to the physical impacts of stress. attitude to work. They perceive almost every situation in life as a threat and they respond negatively to situations causing them an!iety. $he way we think about things influences our ability to cope with stress. (ifferent things can cause us stress. 6thers view situations more positively. (hanges in our circumstances also cause us stress.*otivation and frustration are further developed in Beadership. eating'drinking'smoking more or less than usual . the death of a friend or relative. empowerment. difficulty sleeping behaviour changes including taking time off work. self-doubt or frustration. backache. when we have to deal with a number of changes within a short period of time. anger. This ability to cope with stress is influenced by our outloo on life. getting divorced.

"uthority flows from the top of the structure to the bottom with subordinates at each level accepting and complying with requests because they understand that the authority holder has a . it is not surprising that individuals will view their wor . the roles they perform. #anaging individual differences $ithin an organisational setting. the organisation itself and the people they wor with in different ways. how different #obs relate to one another and who has authority within the organisation. Beadership and management are further developed in Beadership. "n organisational hierarchy with few levels is considered a 'flat' structure and one with many levels is considered a 'tall' structure. This structure influences the #obs that people do. Chain of command This is the number of different levels of authority to be found in an organisation . Authority "uthority is the legitimate right to direct and control the actions of others. Two important aspects of structure are span of control and chain of command. how information flows through the organisation. It is also important that managers are aware of the sources of wor place stress and the measures they can put in place to alleviate wor place stress. 7actors impacting upon wor place stress are further developed in the members pages section. motivation and teamwor ing. It is therefore important that as individuals we are aware of the things that cause us stress and how we react. It is the role of the manager to manage this diversity and to reconcile the needs and values of the individual with the needs and values of the organisation to encourage creativity and vision and minimise frustration and conflict. authority is delegated to positions within the organisational structure. If the span is too broad then the manager will have too many subordinates reporting directly to him?her ma ing it difficult for the manager to co-ordinate their efforts effectively. empowerment. Individual authority' responsibility and accountability4 *rganisational structure 6rganisations co-ordinate and control the activities of individuals through an organisational structure.the organisation's hierarchy.0tress in the wor place is now a significant factor impacting upon individual. then subordinates may feel that there is too much direct involvement and contact with their manager. $ithin an organisation. %pan of control The span of control refers to the number of subordinates who directly report to a single manager and for whose wor that manager is responsible. If the span of control is too narrow. team and organisational performance.

directors and other departments. as a senior manager within the organisation's hierarchy. These are her role-set and each of these will have e!pectations about how she performs her role. Asing the e!ample above. she would be e!pected to ma e decisions. what rights we have and how much authority we have. 7or this reason. *anagers also ta e on the responsibilities of their subordinates. or because the role turns out to be not as she had e!pected. our beliefs and our e!periences. we also have a self-perception about the same e!pectations based on our values. company ambassador. Bet us ta e the e!ample of a female quality manager within an organisation. Iole conflict occurs when our actual situation and behaviour is not consistent with either our or our role-set's e!pected behaviour and this can lead to role stress. 0he would ta e on a number of wor -related roles such as pro#ect manager. we interact with a number of different people. These concepts are further developed in the members pages section. Issues of role conflict are further developed in the members pages section. +ole $e all ta e on a number of different roles. 0ources of power and how we react to power are further developed in the members pages section. *anagers are ultimately accountable for the performance of their subordinates. "uthority therefore. be organised. travels down the chain of command with those at the top of the chain having more authority than managers below them. In addition. she finds that she cannot meet everyone's e!pectations because they are so different. administrator. figurehead for the quality department and line manager. subordinates. $e are accountable for performing our duties satisfactorily within the scope of our responsibilities. 6ur role-set will have a number of e!pectations about how we should behave. lead by e!ample and have integrity. 0he would also have a self-perception of how she is e!pected to behave. child. function or assignment. 0ome of these are personal and others are wor related.legitimate right to e!ercise this authority. +esponsibility Iesponsibility is the obligation placed on us within the organisational structure to perform a specific tas . In addition to this she will assume a number of personal roles such as parent. +ach position within an organisation will have assigned responsibilities and it is the duty of the position holder to discharge these responsibilities satisfactorily. . $ithin each of these roles she would interact with a number of others such as customers. what we should do. this could occur when the quality manager cannot carry out all of the roles effectively because she has too many roles. Accountability +ach level of subordinates within the hierarchy has an obligation to feedbac truthfully to their managers on the discharge of their responsibilities. $ithin each of these roles. suppliers. 7or e!ample. This is nown as our 'role-set'. sibling and friend. lower level managers will have to request permission from managers further up the chain to perform certain actions.

then conflict will occur between #obholders. This process generally results in the production of a #ob description. scope. 6n the other hand. it is unlikely that the #obholder will feel fulfilled in such a . 6n the one hand.8ob design . 7rom an organisational perspective. If there is overlap. 8ob description Job descriptions outline the purpose. There are a number of different formats for person specifications but usually they will outline the qualifications. it is important that the #obholder is clear about their responsibilities and therefore the #ob description needs to be detailed. manage its human resources and comply with legislation. 6aps in design will lead to key tasks not being fully achieved and will impact on the organisation's performance and reputation. there is an argument for a vague and fluid #ob description that allows the #obholder to develop the #ob as required. there are a number of tas s that the organisation needs to perform.efining 5obs In order for an organisation to operate and function effectively. 8ob design and the organisation Job design is important for both the organisation and the individual. This is usually split between essential characteristics and desirable characteristics. abilities and competencies required for certain occupations in a competency framewor against which occupations can be measured. personal attributes and disposition required for a particular #ob. These ey tas s can be bro en down into a number of sub-tas s that can then be allocated to individual #obs and the #ob allocated to a position within the organisational hierarchy. It needs to produce. sell. Is the jo sufficiently demanding! If a #ob is routine and boring with little challenge or opportunity to develop. responsibilities and tas s for a specified #ob. $his is also not an efficient use of the organisation's resources. Candidates can then be ob#ectively measured against this specification with the most suitable candidates being invited for interview. e!perience. (erson specification 6rganisations will usually outline the abilities and s ills they require for a particular #ob by producing a person specification. The specialisation of wor tas s and their division into #obs will be dependent on the si<e and the nature of the organisation. 0ome professions specify the s ills. This will ensure that the organisation is getting optimum performance from its wor force. *any professional bodies also specify a competency framewor against which they can measure their members. The level of detail required for a #ob description is a question of balance. it is important that all #obs are designed in an efficient and effective way. There are a number of factors to consider in #ob design: • • Does the jo fit in with the rest of the organisation! 9verlaps in #ob design or gaps in design can lead to conflict and confusion within an organisation.

• Is the jo too demanding! At the design stage. specifying membership of a relevant professional body as part of the recruitment process. Industry sector )rofessional bodies ma e a contribution to the development of >ational 6ccupational 0tandards in their area of wor . . Individuals also benefit from the social networ ing and the feeling of belonging to a specialist 'club'. Does the jo holder ha"e sufficient control o"er what they do! 5ack of control is a key workplace stressor. If a #ob is too demanding then the #obholder may not be able to cope with the amount of work and will suffer frustration and stress. The individual )rofessional bodies promote the lifelong development of their members by helping to eep members up to date with changes and developments in their specialised field and encouraging nowledge transfer and the e!change of ideas through education. They promote the professionalism of the sector and influence employers and policy decision ma ers in the sector. training and networ ing. $ith the introduction of fle!ible wor ing practices. integrity and competence. $his may lead to feelings of frustration and stress. 7rom an organisational perspective. It is important that we have some control over the work that we do. 7le!ible wor ing and wor life balance are further developed in the members' pages section. (rofessional institutes )rofessional bodies play an important role in society in developing their individual members. more and more organisations and individuals are considering how #obs are designed and how wellmatched the #ob is with the individual and their circumstances. The organisation *embers of professional bodies adhere to a code of professional practice that sets standards of conduct. 6rganisations can also promote membership of professional bodies to ensure their wor force is up to date with the latest developments in their specialist fields. the way in which #obs are designed impacts upon how satisfied the #obholder will feel with the wor that they do and also how motivated they are to achieve their full potential.role. Individuals also need to consider if there is a match between the #ob and the individual's lifestyle. *embers will have a certain standard of nowledge and competence and will act with integrity. it is important that the amount of work being required is considered. • 8ob design and the individual 7rom an individual perspective. providing support for organisations and in developing the s ills of the sector they represent. can give the organisation an ob#ective measure against which to 'measure' candidates. It is important that #ob designers consider the nature and variety of the #ob. It is also important to consider the position within the hierarchy.

thecqi. +ddison 0add +ditions Btd. 7inancial Times )rentice Gall. 7inancial Times )rentice Gall.9 "tress Management #it. This is an e!cellent reference source for anyone who wants to develop their nowledge and understanding of how organisations behave and the role of the manager in co-ordinating team and individual behaviour.Management and rganisational Beha!iour.u The website of the Chartered *anagement Institute This is a useful website which has free access to a number of research reports on various management issues.i-l-m.33. .The benefits of membership of the CQI are outlined here: http:??www.33:9 Management an ( 8. www. Websites www. This section further e!pands on the following: • • • • • theoretical perspectives on personality and how personality is assessed through the recruitment and selection process sources of workplace stress sources of organisational power and reactions to power role conflict flexible working practices and the work'life balance debate +eferences I have selected a number of te!ts and websites that I feel will give useful and additional information on the topics outlined in this section.33@9 Essentials of rganisational Beha! The website for the Institute of Beadership and *anagement This is a useful website which has free access to a number of articles on a variety of management topics. This is a useful stress reference boo and rela!ation tape for those who want to learn more about managing $urther developments in the members pages section The members pages section of the &ody of /nowledge is only available to members of the CQI. This is a summarised version of the fuller Baurie *ullin te!t . >eedham. " 8. *ullins. Te1ts &oddy. B 8. This is an e!cellent introductory te!t for anyone who is new to management or who wants to develop their nowledge and understanding of management issues.

www. . This is a very useful website for chec ing out the legislation regarding wor place diversity.www. It also has a number of interactive qui<<es to assess individual The &&C website. an!iety. stress. confidence and health. It also has some useful free downloadable resources. This site includes sections on The website of the +qual 6pportunities

)erformance management The art of management is achieving e!traordinary results through the use of ordinary people. )erformance management permeates the organisation. ta ing action to improve it and finding better ways of getting the best out of people. There are #ust too few e!traordinary people to go round to rely on attracting them all into your organisation. 7or if the goals are not matched to the organisation's capability. It involves managing relationships.u ?sub#ects?perfmangmt?general?perfman. performance management is the achievement of performance targets through the effective management of people and the environment in which they operate. "t the tactical level it means creating an environment in which people are motivated to e!cel and e!ercise their talents. *anagers have to be able to handle the tactical issues without ta ing their eye away from the strategic issues and vice versa. 8*ore on this in the members pages. )erformance management is both a strategic issue and a tactical issue. It is a process that brings together and manages all the factors that affect performance. What are the key elements of performance management "s with any process the ey elements are: • • • • • • the level of performance to be achieved the competences needed to achieve this level of performance the activities and resources needed to motivate and empower people the monitoring and review mechanisms that measure performance and compare results with targets the measures taken to improve performance and attain best practice the measures taken to ensure the planned targets and competences are the right ones for the organisation and its stakeholders . monitoring and reviewing performance. "t the strategic level it is concerned with setting achievable goals for the organisation and developing the competence and capability to achieve these goals.htm performance management is a process and not an event. It is integral part of every business process rather than being a separate process as it is activated wherever targets are set and resources allocated for their )erformance management is not another term for personal appraisal.9 "s declared by the CI)( at http:??www.cipd. no amount of employee ca#oling will achieve them. treating the individual as a vital component but not the only component in a multifaceted aspect of management. What is performance management In simple terms.

)erformance can be poor.lon. aim. or e!cellent but these are sub#ective it leads to confusion as to what is really required. . 5oals.u ?about?aimsKob#ectives.What are the key characteristics of effective performance targets The level of performance )erformance itself is a variable.u ?strategicKob#ectives. good. goal. If a process ob#ective is 'on-time delivery' the target might be '11R of all deliveries to be complete within : days of acceptance of order'. strategy. if the ob#ective is to grow the number of customers the target might be as simple as 'measurable growth in ey account spending' 8note that it is not simply the number of customers9. target or indeed a tas or activity although when used so hapha<ardly. Bi ewise. we can lose sight of its intent S the outcome the activity or tas is supposed to In the e!ample here http:??www. $e tend to label what an organisation wishes to achieve as a goal. average. The level of performance required is often referred to as a target. ob#ectives and targets can therefore have aims. whereas we use the term ob#ective for what an individual or process is required to achieve. The term ob#ective can be used to e!press anything that is to be achieved at any level in an organisation. or e!cellent especially if we intend comparing the performance of one individual. In the e!ample from G* Treasury above. They are synonyms but in the conte!t of management they have acquired distinguishing characteristics. The term target can be used to e!press what is aimed . the aim signals the direction ta en to get there but this is not always the case as evident here http:??www. $hen we treat an activity or tas as an ob#ective. goal and ob#ective are treated as though their meaning is identical. The term goal tends to be used to e!press an intended destination for an organisation and may encompass its vision. They also have a purpose ie the reason why they have been established. good. set or defined. " target is the criteria that will indicate whether performance is acceptable for a particular quality characteristic. the ob#ectives are e!pressed as outcomes. mission.htm The aim of an organisation may be an e!pression of its function or role or indeed its mission. It is therefore more of a generic term and can used in reference to a vision. average. mission and business ob#ectives. one group or one organisation with another with a view to reward or penalty. The term aim can be used to e!press a direction for something so whereas the goal is the destination. $e need to now what we mean by poor.shtml the ob#ectives read more li e a list of actions than outcomes.istinguishing targets from aims' goals and ob5ectives 0ometimes the terms target.glam.

then set a target that on an . it merely serves to establish an acceptable level of performance that is attainable when the process runs as planned. (eming writes in 6ut of the Crisis on the -3th of his -C points 8or principles of transformation9 that we should eliminate targets for the wor force that urge them to increase productivity. but to ma e a decision about that person's performance on the basis of this fact is foolish. +ach process has a capability that produces results somewhere in the range between 'all output fails to meet requirements' to 'all output meets requirements'. ma e sure the process is capable of achieving the target. It is good practice to manage by ob#ectives in a stable system as it avoids management interference and encourages empowerment. targets can be set. This is often paraphrased as simply 'eliminate targets' when that was not what (eming meant. "n obsession with numbers tends to drive managers into setting targets for things that the individual is powerless to control. process or product. growth in number of customers is an activity-focused target whereas. measures. observe the variation. 6nce a process is under control. The number is a fact.3ey factors in setting performance targets 0ome of the ey factors in setting performance targets are as follows: • • • • • $argets should be expressed in a manner that establishes a clear focus for all actions and decisions $argets should be traceable to and consistent with organisational goals thus enabling the degree of achievement to be measured relative to stakeholder satisfaction. ie common cause variation has been removed. the engineer has no control over the . ob#ectives and the purpose of the organisation. Ge was saying that before setting targets. Targets imposed on wor ers in an unstable system are imposed on the wrong people. Ge was only advocating the abolition of management by ob#ectives in unstable systems. " manager may count the number of designs that an engineer completes over a period. 8Gence the purpose of the organisation would not be to have a large number of customers regardless of the revenue they bring in9 %etting targets " realistic method for setting targets is to monitor what a process currently achieves. 0etting a target does not change process capability. There is clearly no point in setting a target well above current performance unless the managers are prepared to redesign the whole process. growth in spending is a purpose-focused target! Through the chain of measures from corporate ob#ectives to component dimensions there should be a soundly based relationship between targets.3 basis the process can deliver.3:. $argets should be agreed by those teams whose performance will be measured against them $argets should be set for process outputs rather than individual performance so as to encourage team effort and avoid isolating individuals $argets should always be focused on purpose rather than activity as in the example aboveO.

Therefore there is a dependency between competence and capability. Quality improvement ta es place when the standard is challenged and a new level of performance achieved.html Challenging the targets 0tandards are targets to aim for but are also targets to change. it is on the basis that the wor man had freedom to choose the right tools for the #ob. This is setting targets based on activities not on outcomes. +ach design is different so the time to complete each one varies. but if the conditions aren't conducive to getting the best out of people. Competence is the demonstrated ability to achieve the desired results. "lthough it is often said that a poor wor man blames his own tools. the staff won't be motivated to #ump over the bar. . and is also directly proportional to the capability of the equipment used by these people. What is meant by competence The quality of process outputs is directly proportional to the competence of the people. &ehaviours are embraced by the word 'ability' thus recognising that two equally qualified individuals may have the same s ills and nowledge but by the manner in which they behave towards their fellow man. "nother e!ample is the A/ government imposing targets on waiting lists in the >G0 in reaction to public pressure. This diverted resources with the result that the overall outcome was not improved. "n interesting debate on performance measurement between Iobert /aplan 8pioneer of the balanced scorecard9 and Thomas Johnson professor of quality management at )ortland 0tate Aniversity in 6regon is reported by "rt /leiner at http:??www. it tells us nothing about the quality of the R.R for many years.. they achieve quite different results.well. is setting false targets. Fou can raise the bar as high as an elephant's eye. then fails to arrive at wor the following morning due to a previous appointment. If an organisation had not managed to lower its product defect rate below .number of designs completed and even if she did. $aiting times for operations may well have been cut but the time the patient remained in the process was unacceptable even with operation waiting times reduced to <ero.&b-. including their behaviour. The manager who tells an employee to get a report on his des by 1:33am. .33. 7se of targets "greed targets should be used as a basis for reviewing results otherwise the review becomes sub#ective and emotional.R defective becomes the norm and is built into budgets and estimates. It is not uncommon for managers to command their staff to meet targets that have been set on the spot in an attempt to eep them wor ing hard. Targets don't motivate people to achieve them.

Gowever. the wea ness with this definition is that the frame of reference is not present as there is no reference to the results required for the #ob. $herefore competence is concerned with outcomes rather than attributed abilities (ompetence is an ability to meet standards that apply in the particular #ob. is not a probability of success in the execution of one's #obO it is a real and demonstrated capability. A person may claim to have certain ability but proof of competence is only demonstrated if the desired outcomes are achieved.In contrast I06 1333 defines competence as 'the demonstrated ability to apply nowledge and s ills'. " competent person demonstrates the s ills. Gowever. Gowever. qualified and competent are often used to e!press a level of performance as though they each have the same meaning. pressures. machine precision components. not #ust specific tasks and not in a classroom or examination but in the real working environment with all the associated variations. and performance and competence are not the same. " person may have the required nowledge and technical s ill but remain not competent: • • due to exhibiting inappropriate behaviours the expert who knows everything but whose interpersonal skills cause friction with staff to such an extent that it adversely affects team productivity! due to a temporary loss of physical or mental ability the footballer who cannot play because of a leg in#uryO the musician who suffers epilepsy! Anfortunately the terms competent and incompetent produce an emotional reaction unli e the terms qualified and unqualified. the level and quality of the output may be far less than required to be left unsupervised so performance may remain low to average. $herefore academically qualified personnel may not be able to deliver the desired results • /ow do terms like skilled' qualified' competence and performance differ $ords li e s illed. $hen you underta e a course of study for a particular #ob. • • (ompetence is more than a list of attributes. behaviours. you may be considered qualified. only applying the nowledge gained in a classroom suggests you would not be s illed. The following e!pressions serve to place the term competence in conte!t so as to overcome differences in meaning and thus distinguish competence from other measures of ability. qualified and competent. To be unqualified is generally not disparaging but the term incompetent tends to belittle anyone regardless of their true abilities. relationships and conflicts. &ut s illed and qualified. . "fter applying the nowledge for some time you are able to produce useful outputs and can therefore be said to have acquired the s ills needed to underta e a particular #ob. acquire the necessary nowledge and pass an e!amination at the end of the course. attributes and qualifications to the level required for the #ob. Fou can now design widgets. Consequently the term competence is not always used in its correct conte!t. manage a team or play football. (ompetence unlike qualification.

This is a s ill he has acquired through education and training but it does not mean he is a qualified or competent footballer. Therefore nowledge."fter underta ing further coaching and development you reach a level of ability to achieve certain results. What strategies can be used to develop competence $hen assigning responsibility to people we often e!pect that they will determine what is needed to produce a good result and perform the #ob right first time. 6n one occasion he in#ures his nee and cannot play for two months and thus is no longer competent. 7or as long as you are able to deliver the required results. s ill and competence are attributes an individual possesses whereas performance is what an individual currently achieves as a result of possessing such attributes. If he scores many goals he delivers an e!cellent performance. &ut we would be mista en. we can #udge their performance. Through effective coaching he develops a particular ability to score goals and becomes the team's top player and thus attains a specific competence in football. Ge passes the trials and thus becomes a qualified footballer but has not yet demonstrated any particular competences. "n e!ample may help clarify the concepts. 0ometimes it is our fault because we did not adequately e!plain what we wanted or more li ely. Ge performs well in the local team. If he scores few goals he delivers a poor performance but is still a competent footballer. $e are often disappointed. we failed to select a person that was competent to do the #ob. 6ther players possess different competences. This we call competence. that they would be competent. s ills or competences of a person. Joe can play football. had been trained in the #ob and had spent the last . $e naturally assumed that because the person had a college degree. Joe is still a qualified and s illed footballer but temporarily cannot demonstrate his s ills. you can be classed as being competent. If he scores no goals but ma e several attempts to score he is no longer competent but is still a s illed footballer. Joe's potential is spotted by a football scout who as s if he would li e to be considered for selection to the City Team. 0o there is a progression of ability starting with an inability to do something and ending with being competent to achieve e!pected results in doing something. qualification. years in the post. "long the way we can e!press an individual's current achievement in terms of performance. primarily because we had not determined the necessary competence for the #ob and assessed whether the person had reached that level of competence. qualifications. 0hirley 7letcher provides useful guidance in developing a suitable strategy by as ing some pertinent questions: • • • • • what must be achieved& ie the results or outcome required what must be done for this to be achieved& ie the units of competence how well must this be achieved& ie the performance criteria or standards to be achieved how should assessment be conducted& ie the assessment method what evidence should be collected& ie the evidence requirement . $hatever the nowledge.

7urther information is also available here http:??www. training and coaching is given as part of an employee development programme it should be done for one purpose. What strategies can be used to motivate and empower people $actors affecting human performance ndividual level The performance of a tas is almost always a function of three factors: • • • environment ability motivation To ma!imise the performance of a tas . 87or more info on motivation see Beadership.u ?sub#ects?perfmangmt?competnces?comptfrmw . In the A/ the standards reflect the outcomes of wor place performance. this does not rule out training or study in a sub#ect outside the present role. The &ritish model focuses on standards of occupational performance and the A0 model focuses on competency development. personnel need not only to have the necessary ability or competence to perform it but also need to be in the right surroundings and have the motivation to perform it. mentors and coaches Two distinct competence-based systems have emerged. $hatever education. . training and coaching underta en outside a formal competence development programme is futile and a waste of resources. the standards reflect the personal attributes of individuals who have been recognised as e!cellent performers. but the recent cases of malpractice particularly in the medical profession have caused the various health authorities to loo again at clinical competence. empowerment. motivation and teamwor ing9. but what individuals achieved in the past is not necessarily an indication of what they will achieve in the future as their physical and mental abilities change. that of producing a desired level of competence. *ethods of setting standards of competence and their evaluation have only been developed over the last -: years or so.cipd. training and e!perience were enough.htm +mployee development and competence development is basically the same thing. In the A0. it serves no useful purpose. "ny education. " manager cannot alter employees at will despite what they may believe is possible.• • what methods will be used to bridge the competence gap& ie the formal and informal training and development programmes how will we guide employees from the state of not yet competent to competent& ie the tutors. This may be the first steps to developing a new competence that will be further developed later in a different role. It was believed that education. If the action is not intended to improve the individual's ability to deliver the desired results. *otivation comes from within.

The ability is not so much individual or team ability as the capability of the whole organisation. " team has the capacity to produce results that far e!ceed those of separate individuals if the members all get along together and complement each others s ills and nowledge. The environment in this case is not so much the surroundings within the organisation but the e!ternal environment. %rganisational level "t the organisation level. empowerment. the factors affecting performance are similar to those affecting the individual and a team but the influences and impact are much greater. In fact demotivation can spread li e a disease if the sensitive one complains a lot and convinces the others of the cause. *otivation of the whole organisation requires s ilful leadership in setting goals. motivation and teamwor ing9 The importance of the front line manager-supervisor *anagers are often accused of ignoring the human factors of the wor place but such factors are not easily identified or managed. #otivation *otivation comes from: • • • • understanding an individual's pattern of personal needs and expectations then satisfying them recognising and appreciating the effort made by people and including them in discussions recognising that results often arise from a team effort and rewarding that effort accordingly rather than specific individuals satisfying employees desire for psychological rewards from the work experience . climate. empowerment. consequently ma ing mista es and becoming demotivated. Gowever. " poor environment can affect all team members equally and conditions may be such that the whole team become demotiovated. " shortage of ey competences will be detrimental to performance perhaps resulting in staff wor ing more hours or multi-tas ing.. and share their e!periences. $ith physical factors you can measure the light level and ad#ust it if it's too bright or too dim.eam level "t the team level. developing an effective strategy and acquiring the necessary resources to achieve those goals and the creation of an environment in which the whole wor force will be motivated to achieve these goals. Fou can't measure ethics. the factors affecting performance are similar to those affecting the individual. culture. motivation and teamwor ing9. occupational stress . 8*ore info on team building in Beadership.all you see are its effects and the primary effect is employee motivation. 8*ore info on team building in Beadership. there is one additional factor for team performance and that is synergy.

To empower employees. They often too the form of a meeting between the manager and a member of his staff where there would be praise for #obs well done. This often resulted in the manager requiring some remedial action by the individual concerned with a plan to develop s ills and nowledge for the individual to progress up the promotion ladder. What are the key factors in measuring performance 7or many years line managers treated the annual staff appraisals as a chore. It was often one sided and therefore did not address the real factors that affected the ability of the organisation to achieve performance targets or the factors that affected performance of the individual. empowerment. If crude measurement methods are used such as gut feel. If you are going to empower your employees. 0ome thought needs to go into: • • • • • • installing sensors at an appropriate point to measure the prescribed aspect of performance taking measurements at predetermined intervals collecting data pertinent to the aspect of performance measured transmitting the data to appropriate locations for analysis analysing data to reveal meaningful information presenting the results to the decision makers in a format that displays with the required accuracy and precision a true measure of performance relative to the desired results . being abandoned as changing circumstances brought in higher priorities. life continued as +mpowerment is said to motivate employees because it offers a way of obtaining higher level of performance without the use of strict supervision. The development plans were not always carried through.htm9 The integrity of the performance measurement depends on the method of measurement.u ?sub#ects?perfmangmt?general?perfman. you must ensure your employees are able to handle their new authority. "fter the appraisal. Bittle account was ta en of the environment in which the individual wor ed or any adverse influence the manager may have had. The results were not supposed to be lin ed to pay but it was difficult to separate the two in the mind of the individual. managers not only have to delegate authority but to release resources for employees to use as they see fit and to trust their employees to use the resources wisely. it is more theory and rhetoric than a reality according to Iollinson and +dwards. conducted simply to satisfy the personnel department. motivation and teamwor ing9. These defects led to a more rounded concept of performance management 8see http:??www. Iesults need to be obtained using soundly based measurement methods that e!tract facts from the process. remember that you must be willing to cede some of your authority but also as you remain responsible for their performance. perceptions or hearsay evidence. 87or more information on empowerment see Beadership. Gowever. reprimands for #obs not done or not done well and a possible future course outlined. the results will be suspect.

In measuring individual performance there are some ey factors that need to be ta en into account: • • • • • • • derivation of the measures alignment between the ob#ectives of the individual and those of the team alignment between the priorities of the individual and those of the team awareness of key . assessment. 87or more information see D*easurement. as with all measurement.These aspects are fundamental to all measurement and apply equally to measurements of individual performance. stability and linearity. the former being about work done not about apportioning blame 2eparating review from control 2eparating development planning and performance review 2eparating personal ob#ectives from organisational ob#ectives Agreement on the ob#ectives and measures of success before reviewing performance $he efficacy of the approach and tools used to measure performance $he validity of the criteria used to collect the evidence 1ias between the reviewer and the sub#ect 9b#ectivity in the reporting mechanisms 9penness in the review process (oaching for getting the best out of people www. repeatability. What are the key factors in reviewing and improving performance There are several factors that influence the effectiveness of performance measurement.mattsomers. review and improvement: • • • • • • • • • • • 3iscriminating between performance measurement and personal criticism. In additional. 'what gets measured gets managed' and 'you can't manage what you don't measure' stability E not changing the measures after commencing performance measurement awareness of the phenomena that you can't measure something without affecting in some way what you are measuring *ore information can be found on the Cranfield Aniversity site. reproducibility. there will be variation in measurement due to bias. dependencies and barriers in delivering required results awareness of the adages. monitoring and controlE9.

so we as : 'Gow do we now this is the right thing to do%' >ew targets have to be planned targets as e!ceeding targets sporadically is a symptom of out-of-control situations. Targets that were once suitable become obsolete and we need to as : '"re these targets still relevant to the sta eholder needs%' +elated articles To what is it related 2takeholders (ommunication /ole of the individual 5eadership. Targets need to be derived from the organisation's goals but as these change the targets may become disconnected. empowerment./ow do individual goals relate to corporate goals The question whether targets are still valid is important. motivation and teamworking 2pecifying. designing and developing processes.anagement systems Impact of corporate strategy on people How is it related 0ersonnel are stakeholders who are the sub#ect of performance management $his is key to managing the performance of human resources effectively $his is key to managing the performance of human resources effectively $his is key to managing the performance of human resources effectively $his applies to the process by which performance is managed $his applies to the process by which performance is managed $hese apply to the process by which performance is managed $he criteria embedded in these models is applied in the process by which performance is managed $his sets policy governing the process by which performance is managed $his sets policy governing the process by which performance is managed $he process by which performance is managed is part of this $his is cascaded down through the process by which performance is managed +eferences *anaging )erformance *anagement in "ction *ichael "rmstrong and "ngela &aron .anagement system standards 4xcellence models and awards 2trategic management (orporate governance . products and services 0roblem diagnosis and improvement tools .

C=1. . finance. and its impact on sta eholders within and without the organisation. human resources. nowledge management. data protection.cipd. 0ub#ects include: 0trategic management .com?cgi?content?abstract?=C?@?C1- Comment on this article Bog in or register to comment on this article.htm The performance prism "ndy >eely and Chris "dams http:??www.G 6rganisational &ehaviour and "nalysis ( Iollinson and ( +dwards )erformance *anagement and "ppraisal Terry 5illen http:??www. *anagement systems (esigning. Corporate strategy This section of the &ody of /nowledge loo s at corporate strategy. Impact of corporate strategy on people (ifferent management styles4 different corporate cultures4 quality of wor ing life4 involvement of the whole wor force4 performance management. environment.-23V.asp +ffects of an 6rganisational Control 0ystem on *anagerial 0atisfaction and )erformance John C. ob#ectives and principles4 customer focus strategy4 business plans4 sta eholder concerns. "nderson Charles ". health W safety.Competence &ased "ssessment 0hirley 7letcher $or and *otivation . values and mission4 business environment4 quality planning within the corporate strategy4 goals. 6'Ieilly.u ?&oo store?Kcatalogue?GI)ractice?-.u ?som?research?centres?cbp?products?prism. III -1.cranfield. +lements of corporate strategy Corporate structure4 operational processes and systems4 learning from success and failure4 managing introduction of new technology4 assessment and management of ris 4 managing corporate business change4 initiative fatigue.som.the Tavistoc Institute http:??hum. and across the world.. Corporate governance 5overnance structures and accountability4 ethics4 "5*s4 audits4 management reviews4 committees and reporting structures4 corporate citi<enship. installing and maintaining management systems to meet organisational needs4 application of management system models4 integrated management systems 8holistic approach9: quality.ision.

most organisations could simply have being placed in one of these categories: • • • not-for-profit commercial governmental Gowever. process management4 business process change4 decision ma ing4 benchmar ing4 fitness for purpose4 future quality developments. Commercial organisations invariably start out with one or two individuals. Quality in its total business concept *odels and value chains4 sustaining the quality drive4 contribution from supporting functions4 corporate vs. its sta eholders. In general however. . less that . Traditionally. suppliers and customers4 global communication. suppliers and customers 5lobal considerations4 impact of different cultures4 international partnerships4 wor ing relationships with 8global9 sta eholders. *trategic management Why organisations e1ist The management of business strategy is not the same to all people and one obvious ey influence on this is the nature of the organisation. wor colleagues or family members. we now find some governmental organisations with revenue targets. family-run businesses comprise over 2:R of all businesses and employ in e!cess of :3R of the A/ wor force. departmental management4 departmental vs.*anaging quality across the 8global9 organisation. getting together. perhaps college friends.:R survive to the second generation and less than -:R to the third. Gowever. commercial organisations setting up welfare foundations and not-for-profit organisations operating with slic commercial operations. as the business environment became more comple!. we can differentiate the three as follows: #ector 0rivate 0ublic $wners 2hareholders 9wned'funded by government %ur&ose %ealth-creation +ational'local'public well-being *ocused on particular cause'issue'sector +on-for-profit 7oluntary trust The approaches and methodologies discussed in this article were conceived for the private sector but aspects can be ad#usted if desired to suit the variations in the other two sectors. In the A/. The reasons a commercial organisation might have a not-for-profit foundation as part of its corporate structure are e!plored in the members' section.

unique in the -. many companies have either folded or been ta en over. 7riends )rovident. BloydsT0&. &arclay's. targets. %urvival is not compulsory There is no law to say organisations. or common values. Interestingly. either derived from the founder or agreed collectively by top management. the Qua er 6ats Company 8now a division of )epsico9 is not a Qua er company. the way we behave. 0o what ma es an organisation want to survive into the future% The answer is something a in to the animal survival instinct. mission. In an organisation. "ll of the following organisations were founded on Qua er principles: Cadbury's. Guntley and )almers. the values often drive the mission 8and therefore S almost everything else9. &ryant and *ay. and when applied. plans or ob#ectives. 6ne category of organisation where the original values were propagated down the generations is Qua er companies. This is most commonly seen when a s illed trade is involved such as pottery. and one that is often hoped for by the founder but not the descendants. It never had a connection with the Qua ers. The heading of this paragraph. Iowntree *ac intosh. Clar s. %ome basic definitions " lot of valuable management time is wasted arguing the difference between vision. 6!fam. governments or even nations must continue indefinitely. "mnesty International. The problem here is loss of 8or lac of9 shared values. J0 7ry and 0ons. directors or senior management of a company that need this trait. Iather than list several different definitions of century when wor houses were the norm. These were founded on Qua er principles and had strong moral ethics both towards customers and employees. 7ision . so it is important the management team have shared. and different organisations use different words to describe the same thing.alues are principles or standards that are considered worthwhile or desirable. . Terry's. "nd it is the owners. &y the third generation.alues can be seen as what we thin . but simply chose its name because Qua ers have a reputation for honesty. #ewellery ma ing or farming.What causes this decline 0uccession planning is one of the ey success factors of a family-owned business. here is one simple list that can be built upon and adapted by the reader: 7alues $he way the organisation behaves. a quotation from Genry 7ord. 0alues . is a simple reminder that it ta es real effort to ensure business continuity.

)+0T analysis or competitive benchmar ing etc 8see the members section for more details of these9. 2trategy $his is the roadmap of the #ourney detailing how the organisation will achieve the above. Where are we now 6ften called situation appraisal. whether we are considering a sole trader or a multinational company. medium and long-term periods such as >. What is strategic management It is to do with ma ing decisions about the future direction of the organisation and then putting them into action.An organisation's vision is the concept of a new and desirable future reality based on its values E what it wants to become known for or become. it is a snap-shot of the organisation from two aspects: 61ternal This comprises an appraisal of the environment that the organisation is either operating within at present or in the future 8care must be ta en not to mi! these up9. in the home market there might be one to maximise returns and maintain income whilst in a newly opened market there might be one to work up to a top three position by sales within five years.ission 0ut simply. 9b#ectives $hese are quantifiable milestones to aim for. " simple way of loo ing at it in the planning stage is by as ing three basic questions: • • • where are we now& where are we going how are we going to get there& %trategic implementation This involves developing the appropriate organisational structure and processes that can realise the strategy. There are two main aspects: %trategic planning This is absolutely vital. and then monitoring the progress and effectiveness of the action plans. I and G years. $hey are often grouped into short. There are several models and tools that can be employed such as force-field analysis. 2everal strategies might co-existO for example. "s well as . . the mission is the purpose for which the organisation exists. enabling outputs and progress to be measured.

Topics that are reviewed include: ob#ectives.nown and useful tool is sta eholder analysis which serves to identify and prioritise who might have an interest in the organisation. possibly for each and every ey competitor.nown 0$6T model. or a more informal approach. systems. The output of this is a perception of strengths and wea nesses 80$9. resources. >ote: $hen conducting a 0$6T analysis. capabilities. 0ome I06133-:. To arrive at the current e!ternal strategic position. it is useful to perform competitor analysis. this is actually the last step. )ut together with the opportunities and threats 86T9 from the e!ternal assessment. as opposed to simply getting their internal auditors to perform low-level repetitive tic -bo! audits. financials. inaccurate and possibly erroneous. The aim is to identify what the organisation does well or not. leadership. many organisations #ump straight to filling in a four-bo! template.the general environment. strategy. how well the processes are wor ing and if internal targets are being achieved. structure. Where are we going There are no rules here. response or some other success factor. 6rganisations in a competitive environment should be continually striving to differentiate themselves from the competition4 either on price. what resources and competencies are available. service. will it be able to gauge what it might be capable of in the future. whether using a well-established reference tool such as the +7Q* e!cellence model 8see +!cellence models and awards9. "s can be seen from above. and how much influence they can e!ert 8see 0ta eholders9. "lthough covering broadly similar issues such as values. Stakeholder analysis " well. 6nly when the organisation has profound nowledge of its current abilities. the following :-step sequence can be conducted: • • • • • assess environmental natures identify key environmental forces assess environmental influences identify competitive position define key opportunities and threats 9$! Internal This is a health-chec of the current?e!pected capabilities of the organisation. "n interesting approach is to analyse where the organisation .333 certificated organisations use their internal audit resource for this critical step. what that interest might be. this must also include assumptions made and predictions S bearing in mind it is a perception of another organisation and the data probably will be incomplete. processes. ob#ectives and strategies. we get the well. culture and constraints.

would be if nothing changes. Irrespective of the strategic options open to the organisation there are three fundamental steps: *ption generation This involves proposing various routes either at strategic or product level including: • • • • • • • • continue as-is acquire a competitor open up regional offices develop new products for current markets develop new markets for current products penetrate more into existing markets reposition the product in terms of price or value abandon certain. buildings and locations +on-human resource planning such as investment in equipment and new technology 3evelopment of new processes or redesign'realignment of existing ones . The strategy is not cast in stone and might need refining in the early days of roll-out in light of these foreseeable reactions and also unforeseen changes 8such as a new competitor or technological or legislation changes9. plant. weighing up the ris s versus rewards. 0o if a new product is launched. Considerations might include: • • • • (hanges to organisational structure including roles and responsibilities Infrastructure changes opening'closing'redevelopment of facilities. /ow are we going to get there This involves defining the route-map 8including allowances for events as mentioned above9 and is often best run as a pro#ect. Bi ewise. products'services. implementable and in-line with the values. approaches etc *ption evaluation This is an impartial stress-test review of each option. 6f course the larger the gap the larger the need for change. and are within the capabilities of the organisation. of course9. The ob#ective is to propose one or two options that are feasible. e!pect the opposition to possibly follow suite 8patent issues aside. if prices drop. %trategy selection The organisation does not operate in a vacuum. e!pect the same. markets. It is a dynamic playing-field and allowances must be made for reaction from the competition. sustainable. and also where it needs to be.

The argument is that when things are going well. there is a school of though that says strategic plans only serve to constrict the free development of an organisation and actually hold it bac . '&usinesses must be run at a profit. 6ften the ob#ectives 8being the cascaded 'output' of this part of the strategic planning process9 are ill-conceived. $e compare our available ban balance to our monthly spend. 5etting the balance is an art in itself. frustration sets in. pressure on short-term profit targets and ignoring longer-term investment or total focus on financial targets and ignoring non-financial ones. we compare our actual speed with that indicated on the roadside .' Genry 7ord Is a strategy really necessary *any organisations do indeed do very well without grand strategic plans. and it is only when things are not going well that plans are needed. the ris of getting it wrong is so great that a more conservative approach might be prudent for the ma#ority. &ut when anyone tries to run a business solely for profitH then also the business must die. most people are actually more comfortable with targets and performance measures than without S even in our private lives.• • • • (ontingency plans *unding requirements . They seem to prosper by being in the right place at the right time and appear to get more than their fair share of luc . else it will die. Thus when they cannot be met. Are targets needed at all 0ome might argue against the need for business ob#ectives?targets along the following lines: • • • • $hey can make the organisation narrow-minded It becomes easier for competitors to understand the organisation and where it is going *lexibility and responsiveness can become limited 2ome say ob#ectives are only needed in times of survival or change 6n balance.ey milestones and associated ob#ectives defined to measure progress towards the goal . " common cause of this unfortunate situation is unbalanced goals S too much emphasis on one target at the e!pense of others. 0hort-term success without grand plans is common in all wal s of life4 the tric is to sustain it over the medium to long term. $hilst this might be true for a small number of organisations. for it no longer has a reason for e!istence. grand plans are unnecessary. 7or e!ample.otivation methods to overcome the fatigue factor associated with potential continual change 6ften the above is captured in a concise document such as a strategic or business plan so interested parties can critically review both the options presented and the route selected. Indeed.

.it is how it is applied that matters.en never plan to be failuresO they simply fail to plan to be successful. $ith no systematic approach. '. nown or visible needs are easily captured but leave the more intangible un nown ones un-acted upon. the customer is the only one that brings in revenue. it is interesting to see to what degree the various sta eholders are aligned. wants to grow their business by -:3R. therefore it is imperative that customer needs are met in a manner that will satisfy the needs of the other sta eholders. technological or reputational . The customer is king This common business clichX is a pertinent aspect of what is nown as a customer-focused strategy. be number one in their mar et or the A/'s leading provider of V. customers fancy a change of supplier. yet unusual management view is to perceive the organisation as a living organism. This involves putting the customer at the heart-and-soul of the operation and subsequently designing the processes around the needs and e!pectations of the customer. -11-9. $ith this as a . a company is a non-living entity. physical. it is not the resource as such. It is not the presence of a target that ma es people uncomfortable.alues grow stale. This point was well illustrated soon after Tom )eter's boo In 0earch of +!cellence: @3R of the C= organisations commended in the boo for best-practice were in financial difficulties -3 year later. 6ne difficulty some businesses face is the problem of understanding the implied needs of the customer as well as the stated ones. human. misaligned with personal aims or has not been well communicated. 0olid performance now or in the past is not guaranteed into the future. $hat wor ed once may not be appropriate in a few years. Gowever. If alignment is high.8especially near speed cameras9. people get #aded with the same old message. and we live our daily lives by referring to the time. $ith the sta eholder analysis already conducted. but is often an issue when the target appears unrealistic.' $illiam %& $ard '()*(9 A healthy company In law. the chances of success will be significantly greater than if they are at odds 8see 0ta eholders9. The approach argues that organisations are more successful when they concentrate on their capabilities and internal resources and not when they are led by ad hoc mar et opportunities. it's the distinct competence that it confers on the organisation. 6f all sta eholders. it seems. This involves defining the organisation in terms of what it is able to do more than what it wants to do. 6rganisations are not immune to humanli e tendencies such as sic ness and growing old or infirm. employees leave or retire. Clearly in a limited mar etplace it usually isn't possible. (lanning or wishful thinking +veryone. a modern. $hat constraint can be applied to stop wild imagination ta ing over from reality% 6ne possible approach for consideration is the resource-based strategy 85rant. Gowever. 0o whether the resource is financial.

he went on to point out that many get muddled and end up 'stuc -in-the-middle'. "nd with ever-growing awareness of resource sustainability. organisations strove to develop competitive advantage with aspects such as: • • • • si:e scale experience power These aspects are all insular S it is the organisation itself that benefits directly and not the customer. Critical success factors 9C%$s: 0ometimes organisations ma e the error of trying to be 'all things to all men' and get pulled in too many directions. it is becoming clear that bigger is not always better. Competitive advantage Traditionally. 6thers feel that a bas et of several might be more realistic and representative. 0i<e alone does not ensure continued survival. this will . 7or e!ample if an organisation wants to close down a loss-ma ing plant. Critical success factors are vital for a strategy to succeed and need to be clear to all involved. 0trategic plans invariably cause upset to one or more of the sta eholder groups and managing this conflict is important. Gowever. they began to stagnate and eventually decline. *odern competitive advantage is more customer-centric. %takeholder concerns )eople rarely are comfortable with change and sta eholders are no e!ception. whether they reached monopolystatus or source of subsequent customer complaints. some organisations grew so big that. 6ne useful tool that can be employed is qualityfunction deployment 8Q7(9 which is a technique to identify and capture customer requirements and convert them into internal specifications. )orter argued that the two main C07s are price and differentiation and an organisation should focus on one or the other. and organisations now often position themselves to compete on aspects such as: • • • • • innovation quality flexibility service speed 5rowth nowadays can therefore be measured in other ways. Gistorically. such as growth in pervasiveness or influence. the smart organisation needs to devote some time to thin ing about this issue.

but there are several important points when developing them: • • • • • • • • $alk is cheap. Conversely.compromise comply E give in to demands get out E exit the arena totally 0ee 0ta eholders for more detail on managing sta eholder relationships and conflicts. .benefit the shareholders but employees are upset due to the loss of wor . or for e!ternal use .to secure funding or to attract a business partner. "s such the format varies with the purpose. so should the plan "s an illustration. market si:e etc 9ne prepared. &usiness plans " business plan crystallises all of the above strategic thin ing into a stand-alone document. doing is harder $hose that prepare the plan often don't have to implement it $ake off the rose-tinted spectacles when preparing the plan E be brutal 2ales and revenue forecasts are often wildly optimistic .nowing the critical numbers is essential E break-even point. return-on-capital. 0uch plans are either for internal use S as a reference aid for management. It is not cast in stone E things change. a business plan for the development and launch of a new product is discussed further in the members section. an environmental pressure group might oppose the opening of a new plant whereas the local community would welcome the #ob opportunities. $he plan is #ust the output. discussions. reflections and decisions that is important. There are several approaches an organisation might ta e in dealing with pressure groups: • • • • • ignore E hope the media will lose interest fight E mount a legal defence accommodate . the plan is immediately out-of-date E periodic updating is essential Assume competitor reaction will be hostile at best It is the planning process with its associated studies. Corporate governance What is it Corporate governance 8C59 is all about how well organisations 'behave' with respect to the various concerns of their sta eholders S especially shareholders 8both public and private9 and governments.

the average drop in the immediate years after each case was a staggering 2-R. The recent A0 corporate scandals involving +nron and $orldCom have brought the topic into the public spotlight and resulted in changes to corporate law as a result. In the past few years alone. Clearly. " fundamental aspect of A0 legislature is the system of lobbying. 6f the cases in the A0 where share price change has been available. parallels might be drawn with the recent 'cash for honours' allegations here in the A/. The issue of political involvement between big business and political parties is e!emplified by the lin between +nron and the $hite Gouse-. )rivately-held companies may also wish to implement some of the concepts as this may well help them position themselves better for possible future initial flotation or business continuity when the organisation needs to raise further capital for acquisition or growth.233 from +nron though campaign donations in -111 typifies the delicacy of the issue.. . but of late there are signs that this is being replaced by legislation.. Corporate governance in the A/ came to .33. often referred to as 06V. these are merely the tip of the corporate distress iceberg. the prominence of corporate governance related scandals has brought the issue of business ethics and good governance to the forefront of the business world in general. there have been over :3 cases of A0 public corporations malfeasance. 0hould A/ institutional investors begin to use adherence to corporate governance principles as an investment criteria. and morphing that into the self-declaration approach of 'comply-or-e!plain'. Characterised by large donations. Who does it affect "lthough intended for public-listed companies. In . is now mandatory for all A0 organisations 8refer to the members section for a brief summary of its contents9 and non-A0 organisations listed in the A0. the 0arbanes-6!ley "ct was introduced in the A0. including the ey points of each scandal is presented in the members section. the emphasis over the past few decades has been on building up a voluntary code.. corporate governance has evolved more as a voluntary code.3. This law. Gere. whatever the cause of the scandal. " comprehensive list. In the A/. the A0 and A/ approaches have been quite different. )resident &ush's difficulty in accounting for the fact he accepted Y. this could have a potentially significant impact on share price performance and this issue should be high on the concerns list of a board of directors.ifferences between the 7% and 73 corporate governance structures Antil recently. An overview of recent high profile 7% corporate failures "lthough the +nron and $orldcom scandals have brought corporate governance issues into the public forum.Why is it a hot topic right now "lthough being ethical in business is not a new principle. the mar etplace reacts very negatively to adverse governance news.

CQI members might wish to eep abreast of +uropean developments. Gowever. many individuals. the A/ is now tending to follow the A0 lead of introducing mandatory and punitive measures. . commenting in the 5uardian on this change of directionC stated that A/ company directors ris ed criminal charges in the future if they attempt to hide information from their auditors. "s an e!ample. following recent friction between the individual voluntary arrangement sector and the ma#or ban s. . but also how to measure its success. 0ome parallels with 06V can thus be drawn and aspects of recent and current amendments to A/ law include: • • • • (ompany directors will have to state they have not withheld information from auditors 3etails of non-audit services provided by their auditors will have to be declared Immunity for whistleblowers 6reater power to investigators to uncover information on companies E including access to company premises without a warrant There has also been pressure for change from the +A in &russels.the fore with the publication of the Cadbury report in -11. the recommendations contained in the Giggs report2 on the role and contribution of non-e!ecutive directors and the activities of audit committees have been included. 0ome e!amples include: • Alpha Airports was suspended from the stock exchange in JAAK due to corporate governance issues . Jill Treanor. comprehensive changes to company law.. $ith corporate governance not yet reaching maturity. it contains most ey governance aspects that have developed over the years. Gowever. both as a result of. perhaps in response to the increasingly severe scandals in +urope. Citing comments by Jacqui 0mith 8then (TI *inister for Industry and the Iegions9.arious sector-specific e!amples of self-regulation have emerged recently. )ulling together several related studies. "ccounting directives collectively nown as the *odernisation (irective: have recently been issued which became mandatory in all member states and focuses on harmonising accounting practices. as was the issue of internal control.3s collapse of the *a!well group=. minor corporate governance compliance issues continue to emerge within the A/. she elaborated by surmising this is the first step of wider. which was prompted by the late -1. " good way to do this perhaps is to regularly review the portal of +uropean law at the +uropean Anion's website. 7or e!ample. and in anticipation of corporate malfeasance. which were planned to be introduced in due course. organisations and even nations are still getting to grips with it4 not only what it is and how to implement it.2 companies have founded the debt resolution forum to establish best practice in their industry in an attempt to placate both the ban s and the financial sector regulator. The Combined Code@ is widely regarded as the definitive corporate governance reference in the A/. "s an evolving topic that has not yet stabilised.

which is actually not a new one. the >+('s purpose is to provide: '" creative contribution to the board by providing ob#ective criticism. to the influence of the Cadbury report. 7or e!ample. 6n a positive note. "etna.' This has evolved from the original >+( role. it does appear that A0 organisations not willing or able to meet 06V regulations are ta ing the easy route and moving to Bondon. similar to a non-executive director! <21( plc received criticism when it planned to appoint its chief executive as chairman.333. in no small part. months longer and cost an e!tra Y-m because of 06V compliance regulations1. In a well-structured organisation.• <ealthcare <olding had its floatation cancelled due to the resignation of its nominated advisor a sector specialist recognised by the stock market. 'has earned top quartile ratings for its corporate governance practices from Institutional 0hareholder 0ervices 8I009. then.' thus providing an independent view of the company that is removed from day-to-day running. one of the world's largest insurers. which runs contrary to one of the basic corporate governance guidelines C • 7ull 06V compliance in the A0 is very e!pensive and a trend has started where A0 start-up companies prefer to list in Bondon on the alternate investments mar et 8"I*9 where regulations are looser and listing costs are much lower. "ccording to the Io(--. $ith more money now being raised on initial public offerings in Bondon than in >ew For for the first time since . In the -1th century it was normal for companies to be run by part-time ie non-e!ecutive directors. These are: • • • /emuneration committee E setting the levels and conditions of executive director's salary and other benefits +omination committee E selecting and appointing board members in the best interests of the organisation and its stakeholders Audit committee E ensuring the robustness and integrity of the financial reporting channels including liaising with the external auditors to prevent undue adverse influence from the board The role of the non-e1ecutive director It has become apparent that the role of the non-e!ecutive director 8>+(9 plays a pivotal role in successful corporate governance implementation.committees and reporting structures The various corporate governance codes are converging on what can be viewed as 'bestpractice' boardroom composition. &oardroom structure . >on-e!ecutive directors. reporting to the board are three committees. an independent provider of pro!y voting and corporate governance services'-3. many organisations are now publicly emphasising their commitment to corporate governance issues. 6ne A0 company that floated here on "I* instead of in the A0 said it would have ta en -. each with an appropriate number of non-e!ecutive directors to ensure an independent approach is maintained. 6nly . This rise in prominence over the last few years is due. >on-e!ecutive directors are e!pected to focus on board matters and not stray into Me!ecutive directionN. recently announced that it. are appointed to bring to the board: independence4 impartiality4 wide e!perience4 special nowledge4 personal qualities.

"reas of concern include: • • • • • A less rigorous selection process where the +43 is selected from network contacts and not on merit (ontribution criteria weakly defined resulting in the +43 acting more like a lessinformed executive director Insufficient number and variety of +43s on the board to make a useful impact /esistance by the full-time directors to 'prying eyes' monitoring and commenting on their performance 5imited time allocated for +43 activity often set at only several days per year! 0tudies have analysed the limited time a typical >+( has available to wor for the company. 0o. This does not support the need for greater >+( activity in the A/ and it would be prudent for ad#ustments in the relevant laws such as the Companies "ct. . $ith some directors around the world shown to be involved with up to . The >+( should not get involved in the daily operations of the company and equally. responsibilities and liabilities. "lthough +nglish law recognises the roles of the chairman of the board and of the managing director. cannot be e!pected to be directly held accountable for poor company performance S that is the function of e!ecutive directors. to allow for some reduction in liability in line with the involvement of the >+(. with a situation where a >+( is active only for a limited number of days per year it is clear that roles and responsibilities need to be absolutely clear. Anfortunately in the past. "ccordingly. emphasis needs to be placed on the >+( appointment process. it seems the >+( position will continue to grow in prominence over the e!ecutive role as it is perceived. it does not differentiate between other types of director.when the business environment became more comple!. this has been less than ideal. and recommended at least -33 hours per year-. as it is in 5ermany. plans and appointments of the e!ecutive group. Gowever. this is against a legal bac drop where directors are #ointly and severely liable for the activities of the company they direct4 whether or not they are aware of the activity. most certainly be held accountable for not challenging the decisions. in the short-term. from the legal standpoint it appears that both e!ecutive and non-e!ecutive directors have the same statutory duties. They can however.3 companies it is no surprise that guidelines on this issue are being generated. Gence. did the non-e!ecutive boards begin to nominate full-time 8e!ecutive9 directors to manage the companies on their behalf. In a study it was found that 13R of >+( appointments were already nown to the C+6 prior to the appointment-=4 a result that is in line with earlier wor that found that C-: of A/ boards contained retired e!ecutive directorss who were bestowed a >+( position-C. as the torch bearer for good governance. Gowever. In the A/ and other countries where the structure of the company board is not legally defined.. "reas where the >+( could ma e a real impact on corporate governance performance are listed in the members section. the presence alone of >+(s does not guarantee good governance. and care to be ta en to ensure the >+( is not a pro!y voice for the appointer. directions.

(entre for responsive politics. 3ec Gth JAAI edition'>'hi'business'JAJH>G@. 0o. listing costs are extracted from 4n$estors Chronicle.stm J. +.94(3. it was reported that the )ost 6ffice refused to deliver the G0&C . There are reports of growing frustration-: with the traditional printed annual report as it sometimes only becomes available many months after the "5*. general commentary. $he <iggs review is available at http8''www. available from http8''www. (ommentary on Institute of 3irectors website. *ri.dti. Commenting on these often huge documents. /obert A.24 0ress >>.oecd.ery might well save in e!cess of Z:3m for listed companies but will it come at a greater price for the small investor% .. 5ordon &rown dropped this requirement from the latest proposed changes to company' I. >??G. 'if it cannot be measured. +ell. to paraphrase Bord / H. http8''www. 11(. The annual report Traditionally this was relied on by smaller investors as the main source of official financial and non-financial information published by a listed company. the A/ government had planned to introduce a requirement to include defined reporting rules and formats called an operating and financial review. 9xford8 1lackwell .33@ annual report on health and safety groundsO 0o a possible move in the near future to an online annual report as standard. JAAI. it would be necessary to define clear performance measurement indices. $he (ombined (ode on (orporate 6overnance. P .org'document'JJ'A. JAAH.6. 3irective JAAI'G>'4( of the 4uropean 0arliament and of the (ouncil of >Cth Bune JAAI. $reanor.berr. http8''www.opensecrets. . http8''www. editions between 2ept JAAK and Ban JAA@ ?. (ambridge. to quantifiably demonstrate improvements. it is not what is disclosed that is important but what is not. general K. April @th. o' corporate go$ernance #e$elopments in 2(CD countries' available from www.$hilst the Combined Code elaborates on performance evaluation. Gowever in a surprise move. +eferences and useful links >>GGC>AJF>F>F>FI@HI?. Aetna corporate comms. a *inancial $imes 1usiness maga:ine. 2(CD1 20031 /2(CD countries agree new corporate go$ernance principles'. <A/$*9/3. /0hite "ouse re$eals (nron #ocuments/1 available from http8''news. . the causal lin s to board performance has not yet been fully e!plored.JIHA. 4xamples and commentary on comparison between -2 and -.ass.iod. B.pdf C. (onn.html and 'Sur$e. (orporate 6overnance.onks. Buly JAAI @. In attempt to overcome the problem of lac of transparency. "lthough there is much data on company financial performance. $he 6uardian newspaper.'cld''files'fileJIA>J. -2A >A. it cannot be improved'.co.

information security the way in which every aspect of an organisation is managed. 2n the 6oar#1 6ower in association with the Institute of 3irectors.!. 5eeping .ills. preventive maintenance 0. It can mean: • • • a system to manage a particular activity or a specific type of asset . >?C>. often in relation to a specific aspect . ie its 'business management system' " software application is. often intrinsic to how a business management system is managed. especially when see ing combined ..! the means to manage all relevant areas of operation. sector-specific and international standards etc! establish 'best practice' ensure consistency set priorities change behaviour . >??H. but this is not what we are considering here. nowadays. (larendon 0ress. customer relationships (/.for example. environment. Aldershot >H. JAA@.. There is now a move towards 'integrating' management systems.ifferent types of system The term 'system' has a variety of meanings in different conte!ts. *inancial $imes followed by an article on the changes to the annual report. 6eoffrey. 7or e!ample..>J. 9xford >I. depending on the conte!t and the ob#ective.. materials . JJ *eb. the term 'management system' is used in a number of ways. it is used in relation to the 'nervous system' or the 'digestive system'. The traditional approach has been to address individual aspects separately. 6eneral editorial comment >G *eb.!.oo# Compan. but this usage is different from its use in relation to business and the management of an organisation.for example. JAAH. *inancial $imes Management systems #anagement systems) purpose and benefits " 8business9 management system should be a means to: • • • • • • • • achieve business ob#ectives increase understanding of current operations and the likely impact of change communicate knowledge demonstrate compliance with the requirements of the $urnbull report. quality. (harkham B. +ven in a business conte!t. . 2arbanes9xley.

separate management systems were developed to address issues such as quality. perhaps the clearest interpretation of this is that a business management system is: 'The structure. interconnected for the guidance and control of action'. and a myriad of ris s which can cause more problems to fi! than to avoid.ifferent types of management systems Traditionally. )"011 8see below9 uses the following definition: '" management system comprises the elements of policy. the separate components would not independently achieve the same results. and a system is defined as a 'set of components interconnected for a purpose'. 'Integrated management' should be synonymous with 8good9 'management' S you must manage your operations. performance assessment. or chooses. +!panding on this definition. human resources. planning. health and safety. to comply with a number of e!ternal standards9. environment. .certification against more than one e!ternal standard. 6wnership of the system will by implication lie with those who will be held accountable. which suggests that you ta e discrete systems and somehow combine them. all of which are the basic building bloc s of implementing a business plan. )ut another way. data security. staff. running an organisation requires ob#ectives and strategy to be defined.333 defines a management system as a 'set of interrelated or interacting elements to establish policy and ob#ectives and to achieve those ob#ectives'. can obscure the fundamental principles involved in running a business. and that the purpose would not be achieved without the 'interconnection'. based on an e!ternal assessment of a single system description. . This suggests that the 'interconnection' has been planned for a reason. resources allocated and ris s identified. finance. improvement and management review. impacts. ris management and business continuity. this definition also emphasises the lin between where you want to get to and how you will get there. In other words. I06 1333:. resources. implementation and operation. &ut the word 'integrated'. 6ther aspects of running an organisation which need to be managed include corporate social responsibility. processes put in place.efinition of a management system 6ne definition of management is 'the guidance and control of action'. information technology and data protection. They are also required for successful process improvement. processes and resources needed to establish an organisation's policy and ob#ectives and to achieve those ob#ectives. .' "lthough the formulation of strategy and setting of ob#ectives could usefully be added to the start of the list. ie top management. 0o you could argue that a management system is: '" set of components.' This view implies that an organisation has one management system 8even if it needs.

This can generate pro#ects to introduce new technology. it too is an area given increasing attention. "lthough there is no universal definition of nowledge management. computer systems have become more established and sophisticated 8accounts and payroll were among the first functions affected9. however. however. an increased ris involved in the use of technology S while it can ma e specific tas s easier 8or even possible9. the development and availability of new technology can often enable the ob#ectives to be achieved in different ways. with university courses and chairs now well established. /uman resource 9/+: management GI management would typically involve such processes as recruitment. performance management. appraisal and the processing of leavers. to be aware of developments e!ternally and to decide what is relevant and cost effective for the organisation to adopt. This is an area where a clear division of responsibilities. there is a requirement to manage resources and to ma e them available where they are required to ma!imum effect. although an organisation obviously needs to control its available resources. so that there is a need to build and test contingency plans in case of failure. reputation management and brand management are given more prominence nowadays. and supply chain management is a sub#ect in its own right. Information technology 9IT: The IT manager role has moved from being focused on the provision and maintenance of physical hardware and software to include comple! communications networ s and data management. Anfortunately. specific controls and the need for detailed records may be more e!tensive than for other areas where there may be more sub#ective decisions allowed and individuals are given more leeway to ma e their own #udgements. induction. +ven if organisational ob#ectives have not changed. but when it is fully integrated into the strategic planning for an organisation it should perhaps also include succession planning. In all cases.0ustainability. many GI departments perform a function which is little more than a recruitment agency with an added responsibility for dealing with terms and conditions and holiday entitlements. the organisation will become more and more dependent on the technology being available. and the automation of many parts of the relevant processes has introduced an automatic control over many of the tas s. shadowing and mentoring. There is. . 6ver the years. " well designed management system should allow GI managers to gain a better understanding of actual operations and the demands of a particular role. which may entail changes to current ways of wor ing which can radically change e!isting business processes. and the significance of technology throughout an organisation needs to be managed in the same way as the involvement of people. $inancial management This is driven by a legal requirement.

its sta eholders and their needs. since it describes how things are done as well as how they are managed. . This may be something which affects the quality of its output. and there is a welcome recognition that such standards should have a common format. its consistency of performance or even its ability to operate. rather than on a logical definition of how the organisation operates. partners and customers now. 0trategic management and +lements of corporate strategy9. or an 'environmental management system'. and sharing that information among staff. short term contracts and more career changes over the past few years. a 'quality management system'. especially to other countries. The resultant multiplicity of systems is now recognised as wasteful and confusing.333 is now being used as the model for a number of other standards. designing and developing processes. 6utsourcing. to define how the organisation will satisfy these needs 8ie its processes9 and to be clear about what it needs to do to ensure that these processes are effective. namely the need to manage a specific factor which may influence the performance of the organisation. /nowledge management is becoming more important given the impact of an ageing wor force. " more constructive and pragmatic approach is to focus on the organisation's mission. 0o it would define. Bessons learned are few and far between even in industries which recognise that they are not good at doing #ust that. 80ee 0pecifying. is another trend which has compounded the problem. The accumulated nowledge about #obs. " case might even be made for a management system to be called a 'management and operational system'. It should always be remembered that these standards specify the requirements for a system to enable compliance to be assessed S they do not mandate a particular format for the description of the system. suppliers. technology by itself is not nowledge management. based on the structure of the relevant standard. All cases In each of these cases there is a common theme. departments and partner organisations with a view to developing 'best practice'. I06 133-:.escription of a management system " common starting point for an organisation when it defines its management system has often been to do it in relation to how it complies with the requirements of an e!ternal standard. 87or use of these standards see :. organisations and mar et sectors will be lost unless companies ta e measures to retain it. for e!ample.3nowledge management /nowledge management is the way in which an organisation generates value from its intellectual and nowledge-based assets. .= *anagement system standards9. products and services. $hile nowledge management is often facilitated by IT. but there is still an unfortunate tendency to use the layout of a standard itself as the starting point for describing and structuring a management system. 5enerating value from such assets involves codifying what staff.

+specially in very small organisations. The best way to define the system needs to be given due consideration. chec lists or written procedures. $orse. li ely to have certain ey components. $hen instructions and guidance are written down in a formal system. (eming tal ed of 'operational definitions'. some people may refer to this description of the system as 'the management system'. this can be the case. It is also worth stressing that the 'system' e!ists whether or not it has been defined 8in the same way as a process e!ists even if it has not been described in narrative or flowchart format9. What the system might look like 5iven the diversity of organisational type and si<e. It should also provide a sound basis for managing change and ma ing improvements. we will concentrate on the latter. &ut there is a danger in this as the system description may not reflect actual practice. and in many situations. clear and comprehensive approach and format which helps you to . in both the private and public sectors. it is no surprise that there is no standard for a management system structure. rather than 'how things are 8or should be9 done'. "ny system is. especially when there are manuals full of unwieldy narrative procedures. 0o even though the term 'management system' is sometimes 8misleadingly9 used to mean a 'description of how things are done'. by referring to the description as 'the system'. 7or e!ample. people now what to do 8and do it9 without having to refer to forms. where there may not be one absolute definition of a term. D-E for standards writers9 as: • • • • • • policy planning implementation and operation performance assessment improvement management review " strong case could be made to include 'ob#ectives' as the first item in this list. In practice. since the other elements would otherwise lac a point of reference. with the over-riding aim of using a simple. however. the perceived purpose is changed from being an enabler of results 8cause and effect9 to a repository of policies and rules for managing the organisation. the imposition of controls or the allocation of resources. but it is important that everyone shares a common understanding of what a term means in a given conte!t. 0ome ey ob#ectives of 8defining9 a management system might be to achieve compliance. to encourage standardisation and reduce variation and to help staff to understand what they have to do and how they fit into the organisation. these two elements are intertwined.whether by the planning and design of processes. )"0 11 identifies the common elements required by management system standards 8based on I06 5uide 2.

the elements are: • • 0lan . people etc! (heck . The )C7 organises operating and management processes into -. enterprise level categories.focus on the ey elements which you need to plan. 3eming preferred 'study' rather than 'check'. or geography'. the )C7 serves as a high-level. si<e. get and refine what you do in the light of the 'check' stage. implement and manage to accomplish your mission. (. and identifying factors that can influence how you will operate 3o . In summary.CA 6ne common approach is to use (eming's management system model of plan-do-chec -act at a higher level than #ust for issues such as environmental 8eg I06 -C33-9 and quality 8eg I06 133-9 compliance.:33 processes and associated activities. $urther information The members' page covers: • • • • $ypical components of a management system 2ystem models 2ystem development guidelines Implementing and assessing a system . do work! ' what you need to manage to ensure that these core processes are efficient structure. including process groups and over -. defining clear ob#ectives your misson!. The ")QC says that: '+!perience shows that the potential of benchmar ing to drive dramatic improvement lies squarely in ma ing out-of-the-bo! comparisons and searching for insights not typically found within intra-industry paradigms. to achieve improvement • • (rocess classification framework The process classification framewor 8)C79 was developed by the "merican )roductivity and Quality Center 8")QC9 and member companies as an open standard to 'facilitate improvement through process management and benchmar ing regardless of industry. To enable this benchmar ing. formulating the policies to which you will adhere.what you do and how do you do it organise. since it implied a more considered review and assessment of the situation rather than mere reference to selected facts Act .' The model can be useful for an organisation which see s to ensure that it has considered all aspects of its operation to ensure that it achieves a sustainable business and delivers sta eholder satisfaction. industry-neutral enterprise model that allows organisations to see their activities from a cross-industry process viewpoint.monitor and measure how you are performing against your plan. defining your strategy to achieve the ob#ectives.

CQI 0mall &usiness 0tandard. . )ublicly "vailable 0pecification 8)"0 11:. )eter 8-1139 The 7ifth (iscipline and The 7ifth (iscipline 7ieldboo 8(oubleday. find out more about membership. The needs of the people in the organisation are considered lower down the thin ing order. The A/'s first quality standard. the effect that this can have indicates that the impact on people should be considered as an integral part of strategising. tailored specifically to 0*+s. 6pportunities and Threats9. %ources 0enge. even though a small change in . there are a number of decisions that are made and a way of understanding the impact on people is to e!amine these decisions one by one. then the people are. 6riginator of the concepts of 'systems thin ing' and 'the learning organisation'.6nly available to CQI members. $hilst traditional approaches to strategy often put people low down on the scale of importance. (avid: I06 1333 Quality 0ystems Gandboo 8&utterworth . $ithin strategy.pdf 8pdf document9 "merican )roductivity and Quality Center 8")QC9. " practical guide to management systems and business process development. Bearning 0pace S 0ystems thin ing and practice %mpact of corporate strategy on people Corporate strategy and organisational redesign $hen strategic decisions are made within an organisation. http:??www. affected in some way. 7ounded in -122. $ea nesses. Improving )erformance S Gow to *anage the $hite 0pace on the 6rganisation Chart 8Jossey &ass Goyle. almost by definition. This contrastive understanding is often derived from such as 0$6T analysis 80trengths. 0pecification of common management system requirements as a framewor for integration.Geinmann9 Iummler and &rache.33@9 &0I. -1139.thecqi. The 6pen Aniversity. http:??www. ")QC is a memberbased non profit organisation serving appro!imately :33 organisations worldwide in all industries. focussing first on the needs of shareholders and 8as a means to satisfying these9 the needs of customers.ecisions around strengths and weaknesses Corporate strategy is the means by which an organisation chooses its overall intent in response to the opportunities and threats in the mar etplace and in consideration of its internal strengths and wea Corporate strategising often ta es a position that ma es very limited consideration of the human needs of the people in the organisation.

In selecting the 'ma e' decision. "s wor changes it may well also e!pand. a critical decision that a company ma es is whether to 'ma e or buy' for any parts of the design-to-service continuum. 6n the other hand. $hen choosing the 'buy' decision. )romise of reward tomorrow for hard wor today does not suit everyone and does not always benefit everyone. the emotional scarring that can result gives reason to pause and also consider these potentially damaging effects. as in all change there are winners and losers. This decision means either that the company can perform the function retained more efficiently than an outsource supplier or that there is strategic rationale for retaining this function in-house. putting further demands on people in terms of nowledge and s ills as well as the basic hours that must be wor ed. the company elects to pay another company to perform the action or service. 7rom a company viewpoint. The underlying principle is that organisations are sets of processes that deliver . 5rowth leads to changing demands on people that can be both positive and negative. 6n the positive side. The process-redesign decision " common strategic decision for an organisation is to redesign its operations and processes in some way. The make or buy decision In selecting strategy. Gowever. the company decides to do a thing itself. The matri! defined by Igor "nsoff is #ust one tool that is commonly used to help strategic focus in the area of choosing combinations of products and mar ets. the importance of wor er motivation depends on the cost of replacing them. there are also indeterminable intangible costs such as the cost of lost nowledge and the motivational impact on co-wor ers. from cleaning to management of compensation and benefits. The growth decision In strategic decision-ma ing. change in any form is difficult for laggards and those who prefer the status quo. providing opportunity for social growth and new wor ing relationships. outsourcing is a logical move. the company may well ma e decisions to grow in some areas as well as cut bac in other areas. This outsourcing choice may also be applied to infrastructure services. with resultant negative impact on human performance. It may well result in new people being brought into the organisation. it offers opportunity to develop in new areas and to climb the corporate management ladder.motivation can result in a step change in organisational performance. manufacture or after-sales service. whether this is product design. 0trategy thus can easily end up having a greater negative effect on motivation. If a person does not perform up to scratch or fit in with strategic needs. To some practical e!tent. then there are costs associated with their termination and replacement. &eyond the financial cost of pay-offs and recruitment. +ven those who are not outsourced are affected and may go through grief cycles as they mourn the loss of their colleagues and their loyalty may decrease sharply as they wonder whether they will be ne!t for the hatchet. however. >ew products and new mar ets both required additional s ills.

The relocation decision The location of many companies is often driven by history and accident than any current strategic reason. and operational hierarchical structures that are imposed on these tend to result in misalignment and waste within the processes. This rationale may be e!plored at any time and the decision to relocate any part or all of the company may be made. mar eting and shipments departments. $hen processes change. The reorganisation decision $hen processes are redesigned or other strategic change ta es place. where grants enable expansion . then people who wor in the processes must also change. better fitting people into #obs that they can do well. there may well be a reorganisation of some ind. a change in organisational structure will ta e account of human s ills and motivations. processes may evolve over time and fragment as they are turned to address varying issues and problems. Ieasons to relocate include: • • • • • . >orm. $hatever happens. where further mismatch and distortion can lead to problems. )erform' as they meet. for e!ample with good mi! of &elbin team types. these are not considered and people may end up in difficult #obs with people with whom they find difficult to wor . with changes in the hierarchical reporting structures and people gaining and losing responsibility and budgets. Changes in these roles requires that the people involved change. in which different priorities and processes may result in problematic interfaces and miscommunication. Consideration of team dynamics can also result in well-balanced teams. (one well. . to better serve them. where rents are cheaper . the people who will not move includes e!perts who can easily find another #ob. 0torm. 7or e!ample. when teams changes.oving closer to customers.oving to areas where good staff are more plentiful or less expensive $hen the company moves. )rocesses may also reach out into suppliers.oving to a development :one. "ny given process includes particular roles in which certain nowledge and s ills is required. 6utsourcing of shipment can also cause problems where. . for e!ample. argue over roles. which may or may not be good news for them.oving closer to suppliers. (one badly. 6lder people with a deep understanding of the corporate culture and customers may also prefer not to uproot. . +ven within one department. These are people whose tacit nowledge is often subtly important and whose loss will be eenly felt. they go through the establishing routine of '7orm. a cost-cutting contract leads to unreliable deliveries to important customers.oving to a more economic location. agree ways of wor ing and eventually settle into a wor able routine of activity and relationships. ta ing their e!pertise with them. a product-delivery process may cut across sales.goods and services. to reduce cost and improve management.

there are some common aspects. however continual remote communication can place a high resource demand internally. organisation. due to language difficulties for e!ample. or local relationships are desirable. >ot every one of the following steps are required. pricing and warranty periods can be dictated. . its sta#eholders. a domestic wholesaler buys the product and finds an international customer. others have ambitions to move onto the international stage.Managing quality across the +glo$al. 7or many organisations this level is satisfactory. suppliers and customers International partnerships . 7or e!ample. quantities. "s this is outside the control of the manufacturer it could act either for or against its interests. but for a goods-based organisation.working relationships with global stakeholders' suppliers and customers "lthough many organisations are happy to remain as domestic entities.irect e1porting $here the organisation actively ships overseas. Agencies-distributors $hen the volume of shipped goods becomes too great to manage. perhaps to customers met at international trade fairs. the evolution to full internationalisation may be: • • • • • passive exporting direct exporting agencies'distributors sales subsidiaries manufacturing subsidiaries (assive e1porting $here goods are e!ported without direct involvement. . $hether this is due to ambition or business pressures. it may be advantageous to have a representative in a region or country. This is more within the organisation's control as shipping dates.

&ut despite the possible savings. $hen representing their organisation. plus a possible lac of management e!pertise ma es moving to this stage a high ris proposition. This is often a worry for those new to international business trips.moving into other markets may be hampered at government or competitor levels where barriers are raised to hinder such moves. 7or e!ample. )eople from different cultures can be highly offended by inappropriate actions or behaviour. " critical issue here is cultural etiquette. Gere are some e!amples of common cultural variations: • <andshakes are common and expected in most western countries as a sign of greeting . " gesture in one country may be quite inconsequential.particularly funding. 7or e!ample.%ales subsidiaries "gencies and distributors may have their own interests at heart. 7orces that may act against an organisation progressing through these steps include: • • internal systems not up to challenge . but e!tremely insulting in refuse a handshake can indicate a sign of aggression or disdain. . secondments or even e!patriate postings for e!tended periods. to a requirement of a certain local partner equity percentage variations in salary and logistics costs E detailed cost-benefit studies need to be made. The same can be said of dress code. human resource and management experience protectionism . (oing this during a meeting in someone else's office would obviously be considered e!tremely rude. whether a person dresses formally or not conveys a certain impression. it may be feasible to manufacture overseas. $hese can range from tender requirements requiring that only the local language be used. and not fully serve the needs of the supplying organisation. they may even stoc alternative 8competing9 goods. the significant management and other internal resources required. The way we act in our private lives may be different to our public 8or business9 lives. shipping'storage costs or currency fluctuations • )orters' competition of nations Impact of different cultures 6rganisations that deal internationally will invariably have personnel traveling to other countries for meetings. such as where labour rates form a significant percentage of the unit costs or there are government incentives 8or high import?tariff duties9. +tiquette dictates the way we are supposed to act in the public or business world. comparing for example where to make products. putting your feet up on the coffee table at home is acceptable. #anufacturing subsidiaries In some cases.

. the International 6rganisation for 0tandardi<ation 8I069 e!ists to coordinate and reach agreement on standards that are acceptable across all the member nations.. the shaking of hands is not the normal method of greeting and would be refused if offered. specifications. irrespective of their domicile. read it carefully and place it neatly on the meeting desk or safely away.indicating the card is a representation of the person. follow the lead of the host. are spea ing the same language.• <owever. acceptance criteria and testing methodology. $hus out of respect.iddle 4asten counties. as all parties. 3ifferent cultures place varying emphasis on the presentation and handling of business cards. 4mphasis on punctuality sometimes varies between cultures. *or example. in some . International standards $hen trading internationally. small religious ceremonies may take placeO for example meetings may usually open with a prayer. *urther. In western countries the card has less meaning and is often #ust regarded as a reminder of contact details. "ll that is necessary is to be alert. the attendees will arrive at the meeting room at that time. international trade is facilitated. 6nce a standard such as I06 133-:. *or example. which defines requirements for a quality management standard. as it implies insufficient quantity was provided.the attendees would usually be in their seats at ?8GA ready to start.nown international standard is probably I06 133-:. $ith this common reference point. currently standing at -:: countries. sensitive to your surroundings and. it may be inappropriate to eat or drink in front of them. In cultures where religion has a significant impact on life and business. 7rom a quality-perspective. In others. if a meeting was due to start at >Aam in the -. If being entertained at a meal in some countries such as (hina. $ithin individual countries. to not finish all the food implies it was somehow substandard. specialist import?e!port agencies. The most well.uslim countries during the ninth month /amadan! of the Islamic year devotees fast between the hours of sunrise and sunset. • • • It is not necessary that the international business traveller becomes an e!pert in diplomatic relations. $hen such consensus is reached by interested parties4 agreement has been made on definitions. but it is in fact only one of nearly -2. in . in Asia it is often done with the name on the card facing the recipient and both hands used to present the card .333. whereas in Bapan this would already be considered late . if in doubt. $hus it is expected that the recipient would take it with both hands. respective governments set up accreditation bodies to oversee the organisations that offer certification.333 is in the public domain. to finish all the food can be taken as a mild insult to the host. *or example.333 international standards. religious festivals are dominant in dictating the sequence and pace of life. there are many government-sponsored activities such as the availability of information on various countries. certification bodies offer independent verification that the organisation conforms to the relevant requirements. trade missions and departments based in embassies and consulates to assist both buyers and sellers operating in foreign countries. testing. inspection and calibration services. etc.

It then ensures that its accreditation body members only accredit bodies that are competent to do the wor they underta e and to establish mutual recognition between its accreditation body members. the issue of time <ones and wor ing hours becomes an issue.C hour telephone manning if they wished to maintain real-time communication. aside from physically travelling to the meeting venue4 the only way of satisfactory conducting remote meeting was via the purchase or leasing of tele-conferencing equipment. so has email rapidly developed as increased bandwidth allows the attachment of everincreasing file si<es. .3334 unless it can be demonstrated that the certificate has been issued by a bonafide certification body. 2anguage issues The issue of language is an obvious one and does not need to be e!plained in detail. the prudent business may engage either lawyers in the overseas country or ta e other similar action to clearly understand the legal. "lthough quite e!pensive. it was invariably cheaper than the cost 8and lost-time9 of employees travelling overseas for meetings. that #ust because a potential overseas supplier can produce a certificate claiming their management system conforms to I06133-:. Gowever. email has now become the communication medium of choice for many organisations. This is intended to reduce the ris to customers by ensuring that an accredited certificate may be relied upon anywhere in the world. and even the development of translation software. but business ris is significant if there are contractual misunderstandings due to this. Antil recently. political and language issues involved in the business negotiations. there are occasions where face-to-face communication simply cannot be replaced. the various national accreditation bodies have #oined together to form the International "creditation 7orum 8I"79 which then acts as an umbrella organisation. . This simple matter alone can be a great burden for a small company."ccreditation is not mandatory in most countries. Coupled with the advantage of a record of the communication being produced. "s facsimile machines overtoo the tele! networ in the -113s. business. "ccordingly. Technology The ability to deal effectively in real-time has of course being facilitated by improvements in communication technology.lobal communication Time-. Thus it is important for a buyer to understand issues "s international trade becomes easier. In practice. but the certifying body applies to be accredited. To ensure consistent interpretation globally. this means an office based in the A/ dealing with both "merican east coast customers and Japanese customers would need . e!tra care must be ta en. +rrors in communication and understanding are obvious when holidaying abroad.

0uch a brea through has resulted in many organisations using this to hold daily meetings with their overseas operations. $ith the growth in providers of such services.oI)9 technology has enabled real-time streaming of video data over the internet to such an e!tent that the quality that can be produced on a des -top computer rivals that of professional teleconferencing equipment. . the development of voice-over internet protocol 8.In recent years however. it is now possible to conduct teleconferences via office computers with no e!tra investment apart from a headset completely free-of-charge. customers or suppliers S radically speeding up international communication.

It is the one word which can unite management professionals in +urope.' Thin ing about this we need to be clear about what the word quality actually means. and implementing changes that will produce the improvement 8>olan and )rovost -11C9 . incidentally. *any of these programmes were poorly planned and e!ecuted. $hat relevance does it have for the future of leading and managing whole organisations% If we are to understand quality as a total business concept it helps to accept the definition of the word 'quality' in a quite different way from that in common use. 0o let us not blame the word for the programmes that carry its name. and do<ens of other national or regional associations. Gowever.-uality in its total $usiness concept 0ir (avid &rown. how you will now if a change is improvement. particularly in "sia. Quality in its total business or organisation conte!t was defined by 5enichi Taguchi in the early -1@3s as: '6n target with minimum variation'. to help transform its performance. fle!ibility and environmental impacts. should apply to other programme names . to 'becoming a floodlight on all of it.they need understanding before #udgement. Quality is the umbrella term4 si! sigma and lean are seen as aspects of it. It carries the potential to be truly global since. as was always intended by the movement's founders. founder president of the CQI. The same. lean and si! sigma as well as total quality management. from its historic role as a 'spotlight on part of the organisation' aimed at ensuring the tangible characteristics of what it produces. for instance business process reengineering. let's see how to bring discipline and constructiveness to the quality improvement arena. as well as the Chartered Quality Institute in the A/. will present opportunities to listen to hundreds of presentations on the application of quality to every conceivable part of society. This has led to new names for such efforts. effectiveness. 'quality' is also a dangerous word. there is the Japanese 0ociety for Quality Control. so some thin ers have reverted to quality as the one word to unite the field. These five words provide the basis for defining what you are trying to accomplish. has an ambition to change the role of quality. Instead. because so many badly planned and e!ecuted quality improvement programmes have disappointed those who participated in and paid for them. the far east and the "mericas in describing the transforming efforts to improve efficiencies. the "merican 0ociety for Quality. "ttendance at any quality conference.

has generally been seen as a tactic rather than a strategy. Beaders and participants need to be able to see what part of the system creates value for the customers. >ewness is the appeal. based entirely upon the evidence of its effectiveness as e!perienced by leaders and practitioners who have been close to the methods. whether the aim is the continuing production of a product or service. not wisdom. The best nown demonstration of organisation-wide quality is Toyota.3s when 0hewhart conducted his wor at $estern +lectric. Its leadership has been dedicated to the 'Toyota way'. their interactions and dependencies. Quality methodologies have been shown to be effective in addressing all aspects of defining and transforming these systems. or the improvement process itself. or the development and implementation of change such as a capital investment pro#ect. 0uffice to say it is essential to be able to represent and communicate the components. "s part of his system of profound nowledge 8described in the >ew +conomics9.The business concept . Quality in the west. however. In many cases there has been a reluctance to learn from previous e!perience. which applies quality principles and methods across every part of the system. he contended that all organisations should be seen as a system. . as they call their quality system. development and leadership processes will direct and develop it. for over five decades S a truly strategic theme and business concept.models and value chains (r $ +dwards (eming described a system as 'a networ of interdependent components that co-operate in order to achieve the aim of the system' 8>ew +conomics -11=9. si! sigma9 or local activities 8lean9. (eming first proposed models for representing the organisation as a system in -1:3. and what research. It has been characterised by a series of programmes that have been dominated by training 8TQ*. %ustaining the quality drive The quality drive started in the late -1. It has built momentum over the decades. and many methodologies have been developed since. what is necessary to enable those parts to function effectively.

The conte1t . there is a continuing inherent momentum toward the goal of customer delight. followed by planning and prediction. which enables good work to be done in a planned way managing the databases of customers and staff. $hen participants in a programme see that the organisation is engaged upon a systematic and applied learning process. sustaining this drive will always call for efforts and resources from the very top management. Those who participate in good programmes appreciate the tools if they are well taught and supported. if indirect. principles and philosophies that have applied to the value-adding. from owners to staff. capable processes. This includes all of the support or enabling functions or processes. 6thers have shrun under pressures to reduce . or core. the drive can be sustained. what has been less successful& what are the results that need improving& <ow will we know if any effort is leading to improvement& what results are we getting& <ow can we ensure that everyone.contribution from supporting functions The quality of goods or services is a consequence of the quality of the processes of the whole system. and a dispassionate reading of the evidence in order to challenge one's assumptions.-st century is 'how to build upon the e!perience of success and disappointments and create a sustained effort that produces improved business results and becomes unstoppable%' The answer to sustaining the quality drive lies in responding to these questions: • • • what has been the experience& %hat has worked in our environment. 0ome of them have grown too much as the need for control has dominated. which demands study. "ll organisations owe their culture and performance to their leaders. and the use of improvement tools. Gowever. which are essential for effective communication and record keeping 0upport functions have suffered in the last few years.In spite of the intermittent nature of such quality programmes. which controls the competence of employees in carrying out their roles forecasting sales and capacity needs. and if there is a need to improve performance then line leaders will have to lead the changes in culture and operations. In this case they can thin the world has to move at their pace. the feedbac becoming constructive and positive. for instance in accounts or conformance. processes. The question for the early . impact on the customer include: • • • recruitment and development of staff. This is because of the e!perience of many participants in the programmes. knows what the payback is and what the other benefits are& Implicit in all of these questions is the application of the )(0" cycle 8more of which later9. "ll of them can be improved or transformed through the same methodologies. +!amples of support functions that have strong.

It is not enough to target some arbitrary percentage of cost or employment. for instance training and product or mar et research. rather than how a story is told to the bosses or owners. come to appreciate that what should be important is how things are done in order to please customers. "nalysis of any system of support functions will produce a list of up to C3 distinct enabling processes. and ultimately the organisation's leadership. 0ome may be holding bac core process performance. will find themselves as ing new questions about the role of corporate offices. 6n the one hand will be increased resistance to meaningless planning and reporting. If innovation is seen to be vital. mar et research and personnel management. The more that central function directors e!perience the reality of process transformation or improvement on their own wor . then nowledge and s ills development . Quality improvement programmes must therefore address every support function. not least in demonstrating the real meaning of 'total' quality. under whatever label they are promoted. the more ready they are to support it elsewhere.central overheads. A quality transformation struggle Corporate vs4 departmental management Quality programmes and attitudes. +very organisation needs a different balance of s ills and approaches. The programme team should approach the development of enabling processes in several ways: • • • prioritise to understand those processes that have ma#or impact and whose performance is poor provide exemplary support and training to the improvement teams on such pro#ects use this small number of key pro#ects to demonstrate how the organisation is ready to adopt change in the centreO usually the most resistant functions are the most central ensure that good people from support functions are integrated with improvement activity in core. )eople in every wal of life. others may have the potential to ma e core processes much more effective and thus radically improve the customer e!perience. These can include development of standards for operation and for such matters as health and safety. and every level of seniority. Beaders should therefore ta e every opportunity to review the balance between the centre and outlying parts of the organisation. far too many to be directly and rapidly addressed by an improvement programme. and may now be under-resourced. should lead to a more process-focused approach to management and Beadership. whilst on the other will be the realisation that an effective corporate resource should include many processes currently not done well. engineering. The benefit of the quality programme that addresses the whole organisation as a system is that choices can be made in a meaningful and public open way. customer-facing. or compare with others and try and copy. processes • Integrating the improvement programme in these ways brings many benefits. Thus the programme management.

" ma#or part of any quality improvement programme is therefore to ma e the processes the focus of the organisation. the department often assumes too high a role in people's lives in comparison with the distant customer. the customer un nown or forgotten about. If this activity is seen to be useful by its customers. Improvement programmes wor when. (epartments still have a role to play in a process focused organisation. but actually. and to enable people to recognise each other as individuals. often without e!ecutive authority. . They are an inevitable price to pay for si<e. with overall accountability for the capability. and in how to e!ert their influence in a collaborative and supportive way. and only when: • • • they are seen as the means to achieve the business goals line leadership is really engaged there is a coherent change plan'strategy .will determine the future of the organisation. Quality programmes frequently demonstrate that departmental management has itself become the ey factor in too many people's lives. The quality of what is done .you may care to compare them with your own e!perience. departments become necessary. 0uch people have to learn new s ills in process understanding and improvement. )rocesses must be optimised in the conte!t of the whole system. quality programmes have been used to try to create these changes. holidays and so on. in the conte!t of quality .will need a systematic effort that only ma es sense if it is led and coordinated from the centre. they are developing processes. their functional manager the focus for attention. They may not e!press these actions in quality terms. Anderstanding the lessons from this e!perience is fundamental in planning and implementing business process change and transformation. 0ince the late -123s in >orth "merica and +urope. and the organisation grows. and with authority to resist pressures for undisciplined change. &usiness process change )rocesses are the way that things get done. whether it is repairing lea ing roofs or writing computer games software. but with very mi!ed success. to ma e basic arrangements abut pay. This will demand a new role of the process much value is added . so improvement programmes are always about changing processes. Gere are some of the lessons of business process change. standardisation and improvement of a process.epartment vs4 process management +very new organisation starts by #ust doing things. but they must see their contribution in terms of adding value for their customers rather than defending their turf in competition with others. Gowever.

7ollowing the study. and experts. 6bviously. no matter who for. $e can define this as the process of arriving at the best option for the system as currently understood. and deliverables. The best model for those see ing to lead or understand business process change and transformation remains (r (eming's 0ystem of )rofound /nowledge 8-11=9 8see below9 . and recognition of the interdependencies.ecision making The quality approach is a great help in decision ma ing. the ne!t stage is to ma e sense of the data and information. It is the #ob of top line leadership to drive these processes. and the Japanese tend to use acronyms or long standing proprietary labels such as the Toyota way. The individual leading the pro#ect must as some ey questions: • what are we trying to accomplish& . +!amples from eynote conference presentations include Toyota 8-1119. the length of time devoted to this will depend on the scale of the problem you see to address.33C9 and *otorola 8. consistent. Boo carefully at whatever the particular issue you're tac ling is. They cannot be delegated without loss of the essential commitment that enables change. 5+ 8. in the planning stage. " reliable concept that can improve decision ma ing is the )(0" cycle. The first stage in )(0" should always be study. the common theme is the quality methodology. $hilst some of the western organisations use names such as si! sigma. leaders.• • • • • • appropriate people are selected for the roles involved sponsors. but it creates the foundations for ta ing action. *any leading organisations around the world have researched the best ways to drive strategic business process improvement and transformation. is meaningful for the work that people are required to do at the time or in the near future pro#ects are properly selected leaders feel accountable but supported achievements and learning are recognised and communicated "ll of these sub#ects need to be addressed by developing processes with clear purposes. facilitators. e!plicit inputs.33C9. as well as team members! systematic. how wide-reaching the effects of it are and who and what it impacts upon. methods are used all training. Gonda 8-11@9.

the customer e!perience. 0o. time and money& These questions form a sensible basis for decision ma ing at every level. This brings the circle bac to study again. including: • • • other parts of the organisation suppliers customers . to appreciate that radically different approaches may be available. 0uch performance may well have deep roots that cannot be easily transplanted. however. If. the results differ from e!pectations. the ne!t step is to implement the changes in full. Carry out the test and gather data and observations on the results. depending on how the test turned out. it may be useful to compare with other organisations. Copying without theory invites disaster. If the results correspond with predictions. then it is safe to put the changes into full-scale effect. $hen the team has developed this capability it will be able to select from a wide variety of opportunities to learn from others. 6nce they have been addressed. in terms of people. and learning how to plan and implement improvements.• • • how will we know that any change is an improvement& what changes shall we make that will result in an improvement& what resources will it require. It should not mean visits to organisations that may be e!ceptional performers in order to see what can be copied. as countless initiatives in business and government bear testimony. loo again at the original theory and adapt it. rather than ris ing the changes throughout the organisation. Compare what actually happened with what was predicted or e!pected. Gowever. and has implemented some changes. It should mean the study of other systems that may offer insight into the improvement of one's own system. from the boardroom to the local team. but it is rarely very useful from a practical point of view. It can be salutary for leaders to e!perience radically better performance than their own system is providing. a test should be arranged on a small scale to see if the proposed changes will be as effective as desired. In these circumstances they could be see ing to avoid ma ing the same mista es as others. The resources at that stage are much better spent on understanding the current system. the original theory did not hold water and it's time to go bac to the drawing board. or perhaps even abandon the pro#ect if it doesn't appear to merit further attention &enchmarking $hen a team or an individual has developed a thorough understanding of the system or processes they are wor ing on. it is another word in the improvement field that means different things to different people. )roviding initial answers helps to prioritise amongst the alternatives. Improvement programmes should not start with e!ternal benchmar ing. &enchmar ing is a word that has been adopted for this ind of approach. or that there may be some prior solution that could be transferred.

no point at which the acceptable becomes unacceptable. There is no specification in this concept. <owever. (ountless consumer features from airbags in cars to central heating in homes illustrate this point. +ngineering drawings may have no ma!imum and minimum dimensions . 7itness for purpose sounds customer focused. it can be arbitrary and may not stand up to open discussion on both sides. %ell known consumer . %ith this knowledge suppliers can identify a hidden want or need. illustrates this point. after a depressingly short time such characteristics fall into assumed quality and are not appreciated. and how problems are addressed enables people to create theories on which to #udge what they see.• • • competitors perhaps through trade associations! professional organisations. 7itness for purpose on the other hand. synchronised with customer demands .the supplier is e!pected to wor with its customer to determine the current possibilities and technology and process. and expect no credit for doing so. A recent example of a luxury hotel whose water heating failed. across their whole system. 3oing them well is not recognised. doing them badly causes complaints. $itness for purpose Gere is yet another term that sounds sensible but can be dangerous. 4xciting quality is a special term to summarise those characteristics that drive customer delight. 7urther. but must be provided. $his is fitness for purpose in apparent action. or it may demoralise people by seeming unrealistic and impossible. The Toyota way see s to provide one unit at a time. Taguchi's definition has underpinned the great wor of the best Japanese companies. thanks to a thorough knowledge of the customer's application. $hey include characteristics that the supplier anticipated on behalf of the customer. and optimise their production accordingly.right first time. J. *itness for purpose does not enhance reputations in the long term. It is the suppliers' #ob to understand what these features are. and which are essential in getting beyond the superficial impressions. within specification . and as ing strcutured questions about customers. >. is another way of tal ing about conformance with requirements. and thus became the talk of the rest of the holiday. whilst continually wor ing to improve. they are constantly see ing ways to improve what is done in order to get closer. Asing process flowcharts to assess what is happening. If the supplier responds to the requests effectively. 4xpected quality describes those characteristics that customers ask for. /ano's model of customer satisfaction provides the e!planation 8reference: http:??en. and provide them reliably. it can either limit ambition by being too easy and generalised. as with any specification. however.<ero inventory is the i?/anoKmodel9. results and process measures. chambers of commerce etc conferences The quality methodologies and tools provide a reliable discipline for these studies.wi ipedia. Assumed quality describes those characteristics that we don't think to ask for. Consider Taguchi's definition of quality: '6n target with minimum variation'. I. the customer appreciates them.

as the tools only work in an open environment where data is made visible and is not distorted leading one's organisation to create capability to serve its customers. the quality concept is universal: • • • the quality tools can be applied to every process across the organisation. is an activity amongst the most noble of human endeavours. $his is not #ust hype. $hose who lead and participate in such efforts find fulfilment in the work and in the achievements.for the customer. and disappointment for those who pursue it. (ompromise will always be needed. 4xciting quality features tend to move into the expected category. for the environment. from development to accounting. and eventually into the assumed one. Beaders need to have desire. $he philosophy demands involving people who know about the process being worked on. persistence and energy. not to confront them and threaten them. 0o beware those who spea of fitness for purpose. from manufacturing to teaching improving processes improves results. it is the reason that the quality movement has so many enthusiasts who have learned about its potential over many years • • 7uture quality developments need to focus upon the motivations of leaders. $uture quality developments The quality movement holds the potential to be the fulcrum on which the world is transformed into a better place.examples include text messaging and the 2ony %alkman. "long with many phrases it sounds li e common sense. for the owners. and reducing its impact on the environment. at its heart. an honest movement. nothing else does this system thinking enables leaders to optimise their whole system . It demands that practitioners develop a broad s ill set in: . for safety. from sales to delivery. 7rom the most trivial technique to the most profound principle. but can turn out to betray limited thin ing. and on ways to get alongside those who will need to change. but the quality movement is the only way to build truly customer focussed and capable organisations. but no other approach brings the scientific method to bear in generating theories and providing the evidence to validate them the quality movement is.

the quality professional has in his or her hands the approach that can improving service.• • • • understanding their system learning how to learn and describe their world accurately involving and motivating those who are in the system getting the processes on target with minimum variation in the cause of innovating and optimising the whole system This is (r (eming's system of profound nowledge. "ll we have to do is learn how to apply itO . reducing the impact on the environment. developed in the late -1. reducing costs and building satisfaction in the wor force.3s after a lifetime of theory and practice around the world over the whole history of mass production and the start of globalisation. Together with the many methodologies developed by Japanese and western academics and practitioners.