Chapter 3- LEADERSHIP

“To accomplish great things, we must not only act,

But also dream; not only plan, but also believe.” –Anatole France

Reporters: Jan Cathrine Catipon/ Eyrel Flores

  Total Quality Management is a way of managing an
organization with the objective of carrying out
right jobs RIGHT-the first time and everytime.
 In quality management, there is a rule of thumb
called 85/15 Rule. It means That the root causes of
85% of the problems in the organization are due to
faulty systems and 15% are a result of the
Introduction behavior of Employee.
 The top management is responsible for the faulty
systems. Therefore, they are the most important
agent in correcting the faulty system and enabling
TQM.
  In addition, the top management should
also have faith in the following to build
quality values in the organization;
The most important prerequisite  Customers are the only reason for being in
to practice TQM Is the senior business hence they should be delighted
management should firmly
believe that TQM is the only  Zero defect is possible to achieve
way to do business and
manage the organization and  Teamwork results in a win-win situation
that the TQM Would lead the
organization to prosperity in the  CEO has to lead the quality movement
long run.
 Proper communication is essential
 Continuous improvement is needed in the
processes
  In the INTERNATIONAL STANDARD,
ISO 9000 defined TQM as “A
management approach of an
organization, centered on quality,
Definitions Of based on the participation of all its
TQM members and aiming at long term
success thru customer satisfaction
and benefits to the members of the
organization and to society.”
  TQM is essential to avoid
misunderstanding.
 TQM is management approach for the
entire organization led by the Chief
Executive Officer (CEO)
A detailed analysis
of the definition  Unlike any other concepts which are
of TQM centered on profit making, TQM is
centered on quality.
 TQM means long-term success, which is
achieved through Customer Satisfaction
and benefits the Employees and society.

There is a standard on TQM,
issued by British Standards
Institution (BSI) that provides
another definition:
 “ Management philosophy and
organization practices that aim to harness
the human and material resources of an
organization in the most effective way to
achieve the objectives of the
organization.”
Elements of
TQM
  The management is solely responsible for the success
of TQM as it is responsible for selectig people, forming
teams, providing resources, and establishing the system
of the organization.
Leadership for  It is important that the top management understands
TQM TQM and leads the organization through the TQM
journey.
 1. Create Constancy Of Purpose for Products and
Services
 Aim Long-term success
 Constant quest for innovation
 Improvement of processes, products and services
2. Adapt the New Philosophy
Deming’s 14  The new philosophy is practiced by Japanese CWQC
which was named TQM later
Points for Top  It means the elimination of wastes, delays and radically
changing the work culture.
Management  Just-In-Time(JIT) manufacturing is possible with zero
defects

3. Cease Dependence on Mass Inspection

 Doing things right and doing things right the first time
would reduce on inspection. In fact, it would be
eliminated.
 4. End the Practice of Awarding Business On the
Basis of Price Tag alone.
 This point addresses supplier partnershi. The supplier
should be selected on the following basis;
1. Quality
2. Price
3. Delivery
Deming’s 14 4. Service

Points for Top 5. Constantly Improve the System of Production and

Services
Management 6. Initiate Training
 The abilities of the employees should be improved and
harnessed only through training. Deming advocates,
“Management needs training to learn about the
organization, all the way from incoming material to the
customer.”
 7. Adopt and Institute Leadership
 Deming urges that the Senior employees must conduct
themselves as leaders rather than managers. The
differences between the characteristics of leaders and
managers are as follows;
LEADER MANAGER
Proactive Reactive
Coaches Finds Fault
Understands Process Doesn”t care to Understand

Deming’s 14 Moves Around

Improves Process
Communicates Frequently
Sits in his chair
Maintains process
Communicates rarely

Points for Top Seeks Suggestions Questions

Management 8. Drive out Fear

 Employees should be encouraged to suggest improvements
and ideas
 Ask questions about the existing process
 Fear is detrimental to improve processes
 9. Break down Barriers between Staff Areas
 Removal of barriers between departments
10. Eliminate Slogans, Exhortions and Targets to the Workforce
 Slogans and Posters only generate “Frustration & Resentment”. Eliminate
those for improvement in productivit

11.
A.) Eliminate Numerical Quota for the Work Force
 Setting a target for production forces the workers to ignore quality and focus on
Deming’s 14 quantity.

B.) Eliminate Numerical Quota for the People in the Management

Points for Top  Setting goals without the necessary wherewithal does not work

Management 12. Remove Barriers that Rob People of Pride of Workmanship

 If the work is carried out correctly, it gives pride to those who did. Any barrier that
robs the managers and workers their pride of workmanship should be removed.

13. Encourage Education and Self-Improvement for Every One

 Employees should be encouraged to pursue higher education and training while in
service, for improving the skills or updating knowledge.

14. Take the Action To Accomplish the Transformation

 The top management should understand the above 13 points and then enable their
employees to understand them
 1. Proactive Management
 To foresee what will happen in the future and take advance
action to prevent the occurrence of the problems as
preventions is always better than cure.
 Proactive Management needs proper system
Ten Strategies  the problem can be identified before occuring only if there is
proper system in the organization. Unless a system is in order, the
for Top roles and responsibilities are clear, the organizational structure is

Management set and the system of recording and everything is laid out, it will be
difficult to think of prevention. If measures are not taken Then it will
only be fire fighting, which is Reactive Management.
 TQM calls for proactive management
 In spite of best efforts, if an error has occurred, then corrective
action has to be taken after an analysis so that such errors are not
repeated.
 2. Adventurous and bold change management
 Nobody likes Change
 The processes have to be changed proactively by the top
management in an adventurous manner.
Ten Strategies  Change is Essential
 An organization cannot progress without change. It has to
for Top continuously change for the better

Management  Be Adventurous
 Be ambitious as far as the improvement of the
organization is concerned. Only ambition can lead to
success
 Be Bold
 The other pre-requisite for change management are
boldness, self-confidence or self-esteem.
 3. Do it Right the First Time (DIRFT)
 Take Right Decisions
 Before making every business decision, the leaders should
carry out the following sequence of activities:
1. Plan the Decision- weigh the pros and cons
Ten Strategies 2. Foresee the impact of the decision on the organization
3. Take the opinion of the right people
for Top 4. Involve the concerned (Employees, who will be affected by the
decision)
Management 5. Implement the decision
6. Persist
Why people don’t do it right the first time?
DIRFT concept was advocated by Philip Crosby. This is a time-tested
concept and employees and organizations should adopt DIRFT.
  Why things are done wrong?
1. The employee does not know what to do clearly, leave alone how to do!
2. If he knows how to do, he is not motivated to do it right the first time
Ten Strategies 3. He may not have the right tools to do a good job

for Top 4. He does not have the necessary education or training on how to do
DIRFT.

Management 5. Probably his seniors have trained him to do the wrong way
6. He is not proud of the job he is doing
7. He does not get appreciated when he does it right
  Problems of not doing it right
1. In some cases not doing it right the first time may result in
not doing it right ever. Thereafter
2. Leads to unnecessary expenditure
3. Increases the failure costs
4. Demotivates employees
Ten Strategies 5. Causes hassles to Employees and customers

for Top 6. Brings down the reputation of the organization

7. Leads to scheduled slippages
Management 8. Increases scraps leading to more costs on account of
storage, accounting, disposal etc.
9. Forces the organization to buy additional components to take
care of defects in the process
10. The productivity is affected due to holding up the process to
correct the defective product
  Basic Requirements for DIRFT
 Philip Crosby suggested 3 requirements, the top
management should:
1. Define the requirement for each employees
2. Provide the wherewithal to achieve the requirement
Ten Strategies 3. Keep on motivating and encouraging the employees

for Top How to do it?

Management Right the first time And Every time

Set right goals
Select right Personnel
Establish right Processes
Choose durable Raw materials
Choos right Machinery
 4. Continuous Preventive Action
 One has to see the problem and prevent its occurrence. If
they have not been successful in prevention then they
Ten Strategies should take corrective action in the machinery, material,
methods and the men so the problem never recurs.
for Top  Prevention is better than cure
Management  One shot prevention is not good enough
 Actions have to be continuous
 5. Care for the little things and accummulate gains
 Every tool used even the small ones should be maintained
properly, calibrated at periodic intervals and handled
properly. If that is not done, the weakest link is going to

Ten Strategies break the chain.

 Communicate with Junior employees
for Top  Touch base with the front liners

Management  Keep on Accumulating

 Small gains accrued due to the conscious initiatives by the
management should be accumulated. These small rewards
will be more permanent than bigger gains attained all of a
sudden.
 6. Ensure Economic Performance
 In spite of other goals like satisfying one’s aspirations,
serving society, providing employment etc., the primary
purpose of a business is to earn profits. The goal of an
Ten Strategies organization should be higher Return on Investment (ROI).

for Top As economic performance is the key measures of success

in every organization in their journey towards TQM.

Management  Every organization should make efforts to see that the

organization is performing well, with regard to quality,
employee motivation, satisfaction of the customers as well
as in the economic front.
 7. Management by Walking Around (MBWA)
 Postulated by Tom Peters, in the author’s opinion MBWA is one of
the most effective tools of management and leaderzhip for the
growth of the organization.
 Example: unannounced visits of the CEO to various work spots for
getting first hand information from the employees, customers and
suppliers.
 Three major activities done together simultaneously during
MBWA:
Ten Strategies 1.
2.
Listening
Teaching
for Top 3. Facilitating
 Barriers to MWBA: First Line Supervisors when they feel that the
Management CEO violate their chain of command
 Advantages of MBWA
 Helps the organization consolidate the talents, wisdom of all the
employees, customers and suppliers.
 Remain in touch and makes the employees, customers and supplier
feel important
 It helps in attracting more business, improving the quality of the
suppliers, workmanship in the organization and customer relationship
 8. Measure for Success
 An organization marching towards TQM has to make
efforts to measure how well the organization is performing
in terms of fulfilling the customer needs and expectations.

Ten Strategies  Measure 3 P’s

for Top
Management
 The entire quality system should be measured. Successful
implementation of any process means higher profits,
improved productivity, efficiency and above all improved
morale of employees and satisfaction of the stakeholders.
  Plan, Do, Study, Act by Deming
 Plan for Measuring Success
 The organization should identify the measures for success. First,
identify what measures could be adopted to determine the quality
of service provided. Examples of common measures are;
1. Planned delivery time and Actual delivery time
2. Repeat customers
3. Perceptions of the customers about quality

Ten Strategies 4. Perceptions of the customers about competitors

5. Productivity

for Top 6. Revenue generated per employee

7. Revenue vs. Expenditure ratio
Management 8. Return on investment
9. Customer Complaints
8. Measure for Success 10. Rejects in processes
11.Rejects in the customers Site
12. Reworks
13. Reminders given by Customers
14. Errors in invoices
15.Under Payment/ over Payment
16.Result of Field Survey etc.
  The Do Phase of Measurement
 At this stage, the identified measurements should be carried out
on trial basis with directions from the quality council.

 Study Phase of Measurement

 The organization Should experiment with the proposed

Ten Strategies measures for about two or three months. At the end of three
months the quality council should meet again to take stock of
the situation and see if they need to carry out any changes in the
for Top measures. E.g. Add new measures, drop originally identified
measure and modify them

Management  The Act Phase of Measurement

8. Measure for Success  In this phase, the measures and methods of measurement are
confirmed. The organization starts making measurements.
Measure for success is a continuous activity. However, results of
the measurements, could be studied and analyzed in regular
intervals and communicated to the employees. This will motivate
employees to do better than before.
  9. Never Rest on Past Laurels, Continue to improve
 The Need to Improve Continuously- An organization
should aim at doubling the turnover every two years
without additional man or machinery. Many organizations
hage achieved such growth rate. Such a growth rate is
Achievable due to two factors
1. Cutting down the cost by doing right things right the first
time.
2. A higher output of the motivated employees through
Ten Strategies extensive training.
 Both factors are further expandable. The quality level can
forTop reach zero defect. Even at this stage productivity of the
employees can further grow due to the improvement of
Management the following:
1. Improved system in the organization due to maanagement
based in TQM.
2. Gaining more confidence due to achieving success
3. Accumulation of the right experience and hence cutting
down on lead jobs.
4. Enhanced productivity due to the improvement in
teamwork
5. Empowered employees expanding output due to
Enthusiasm and Motivation.
  10. Build a Virtual Organization
 What is it?
An organization that is created from a network of suppliers,
manufacturers and administrative services to accomplish
specific objectives, such as flexibility and responsiveness.

Ten Strategies  Vertical Integration- There are two extremes of manufacturing.

The first extreme is that everything from the raw materials to the
for Top final product is manufactured in one roof. The other extreme is
buying everything from others and putting them together and
Management selling the assembled product. The right way is to be selective in
manufacturing and buying the non-critical items from the market.
 Vertical integration means that whatever sub-units, components,
materials or fixtures etc. needed for manufacturing, a product are
all manufactured by the same organization.