STRATEGIC MANAGEMENT

AND
CHANGE MANAGEMENT
TO SHIFT TO
TOTAL QUALITY
MANAGEMENT
TABLE OF CONTENTS :
1. THE STRATEGIC MANAGENT OF THE ORGANIZATION
2. THE INCLUSTION OF TQM IN STRATEGIC
MANAGEMENT
3. EMPOLYING STRAGETIC ANALYSIS TO IMPLEMENT
COMPERHENSIVE MANAGEMENT
4. MANAGING CHANGE TO SHIFT TO TQM
5. AREAS OF CHANGE IN THE ORGANIZATION TO SHIFT
TO TQM
Introduction
The strategic management of an organization lays the foundation for its direction, goals, and
action plans. It involves assessing internal and external factors, setting objectives, and
formulating strategies to achieve them. A comprehensive understanding of the organization's
strengths, weaknesses, opportunities, and threats is crucial for effective strategic
management.
 1
Strategic Management in
the Organization
Strategic management is a comprehensive process that guides an organization
towards achieving its long-term goals and objectives. It encompasses a series of
steps including defining the mission and vision, conducting external and internal
analyses, setting objectives, formulating and implementing strategies, measuring
performance, and adapting to changes. This process ensures that an organization
remains aligned with its core values while staying competitive in a dynamic
business environment.
Mission and Vision
Guiding Framework
The mission statement reflects the
organization's purpose and core values,
addressing the needs it aims to fulfill. The
vision statement outlines the desired future
state, guiding strategic decision-making.
Strategic Alignment
These statements are essential for aligning
the organization's activities with its
strategic goals, providing a clear direction
for all stakeholders involved.
External Analysis
Opportunities & Threats Strategic Direction

Identifying opportunities and threats through The analysis informs the strategic direction of the
assessing industry structure, competitive forces, organization, highlighting potential growth areas and
market trends, technological advancements, and shaping strategic decisions.
regulatory factors.
Internal Analysis
1 Strengths & Weaknesses
An internal analysis examines the organization's resources, capabilities, structure, culture, and
competencies to identify competitive advantages and improvement areas.

2 Resource Allocation
Understanding internal dynamics aids in effective resource allocation and strategic planning.
Setting Objectives

1 2
SMART Goals Strategic Priorities
Objectives should be Specific, Measurable, Goals can relate to financial performance, market
Achievable, Relevant, and Time-bound, aligning with share, customer satisfaction, innovation, and other
the organization's mission and vision. strategic areas.
Strategy Formulation
Strategic Approaches
Formulating strategies involves identifying broad approaches to address opportunities
and challenges, such as market expansion and product development.

Competitive Positioning
Strategies may focus on cost leadership, differentiation, or other positioning
approaches to maintain a competitive edge.
Strategy Implementation
1 Action Plans
Translating strategies into action plans
involves allocating resources, defining
responsibilities, and establishing
timelines.
2 Functional Alignment
Aligning marketing, operations, finance,
and human resources to support strategy
execution.
Performance Measurement
KPIs Financial Metrics Market Share

Customer Satisfaction Employee Engagement Innovation Rates

Evaluation and Adaptation
Market Dynamics
Adapting strategies to changing market
conditions to ensure ongoing relevance and
competitiveness.
1 Strategic Review
Periodic evaluation of strategy
effectiveness and making necessary
2 adjustments based on successes and
failures.
Total Quality Management Integration

Quality Alignment Customer Focus Employee Engagement

Aligning TQM with the Incorporating customer feedback

organization's mission and vision
to make quality a core strategic
value.
into strategic decisions to drive
continuous improvement and
meet customer expectations.
Empowering employees through
training and involvement in
quality initiatives, fostering a
culture of continuous
improvement.
 2
Total Quality Management
in Strategic Management

Total Quality Management (TQM) plays a crucial role in strategic management,

focusing on continuous improvement in an organization's products, services, and
processes. When integrated into strategic management, TQM becomes an
integral part of the organization's overall strategic direction.
Alignment with Mission and Vision

1 Alignment with Core Values

TQM principles are aligned with the organization's mission and vision, making
quality a core value integral to the strategic direction.

2 Strategic Adaptation
Adaptation of TQM to support the evolving mission and vision, ensuring continual
synergy with the strategic landscape.
Quality Objectives Integration
Specific Targets
Setting clear, measurable quality
objectives that align with
strategic goals and visibly
contribute to organizational
success.
Time-bound Achievement
Establishing quality objectives
with defined timelines linked to
strategic milestones for overall
progress tracking.
Customer-Centric Focus
Ensuring that TQM objectives
are in line with fulfilling
customer needs and enhancing
satisfaction for long-term
strategic impact.
Continuous Improvement Culture
1 Employee Engagement
Nurturing an environment that encourages all
employees to contribute to continuous quality
improvement initiatives.
2 Innovation Recognition
Rewarding innovative and collaborative efforts
that contribute to the development of a robust
quality improvement culture.
Process Integration and Quality Metrics

1 Embedding Quality
Integrating TQM into all organizational processes, ensuring that quality is a
consideration at every stage.

2 Measuring Effectiveness
Establishing quality metrics and key performance indicators that align with TQM
principles for continual progress evaluation.
Customer Focus and Insight Integration

Customer-Centric Approach Insights Alignment

Prioritizing customer satisfaction and integrating Utilizing customer insights to drive continuous
customer feedback into strategic decision-making improvement efforts while aligning with strategic
processes. goals and objectives.
Tools & Resources for Effective TQM

Knowledge Enrichment Real-world Experiences

Utilization of books, courses, and Embracing practical experiences as
mentorship to facilitate learning and valuable tools for developing the necessary
application of TQM principles. skills to be an effective leader in TQM
initiatives.
Employee Involvement and Empowerment

Empowering Employees Recognition and Reward

Providing training and development opportunities Recognizing and rewarding contributions that
to engage employees in quality improvement enhance the TQM culture and drive the strategic
endeavors. aspirations of the organization.
Strategic Impact of TQM Integration
1 Enhanced Quality Culture
Embedding TQM in strategic management fosters a culture of continuous improvement and
quality-driven decisions.

2 Customer Satisfaction
Aligning TQM with strategic objectives enhances customer satisfaction and loyalty in the long
run.
Overall Strategic Alignment
1 Continuous Progress
Ensuring that all TQM efforts align with
and continually contribute to the
organization's strategic goals and
aspirations.
2 Integrated Prioritization
Integrating quality as a strategic priority
ensures that it permeates all aspects of
the organization's operations and
decisions.
 3
Employing strategic analysis to
implement comprehensive quality
managemenet
Strategic analysis is a cornerstone in the realm of quality management, serving as
a compass to navigate the complexities of an organization's internal and external
environments. It is the bedrock upon which informed decisions and effective
quality management initiatives are built, ensuring alignment with strategic goals
and fostering continuous improvement.
Understanding the External Environment

1 Market Trends
Analyzing market trends to foresee impacts on quality management.

2 Competitors' Practices
Assessing competitors to identify benchmarks and opportunities for improvement.

3 Regulatory Requirements
Understanding regulations to ensure compliance and identify quality standards.

4 Customer Expectations
Evaluating customer expectations to align quality objectives with market needs.
Conducting Internal Analysis
Quality Systems Organizational Culture Resources & Capabilities

Evaluating existing quality Assessing the culture and how it

management systems and supports or hinders quality Reviewing resources and
processes. management. capabilities in relation to quality
objectives.
SWOT Analysis for Quality Management

Strengths Weaknesses
Identifying organizational strengths to leverage in Highlighting weaknesses to address in the quality
quality initiatives. management framework.

Opportunities Threats
Spotting opportunities that can be capitalized on Recognizing threats to mitigate against in the
for quality enhancement. pursuit of quality excellence.
Setting SMART Quality Objectives

Specific Measurable Achievable

Defining clear and precise Ensuring objectives are Setting realistic targets that can
quality objectives. quantifiable for effective be attained.
tracking.

Relevant Time-bound
Aligning quality goals with Establishing deadlines to focus
strategic business objectives. efforts and measure progress.
Strategy Formulation for Quality Management

1 Quality Teams 2 Control Measures

Forming teams dedicated to driving quality Implementing robust quality control measures
improvements. to maintain standards.

3 Supplier Management 4 Employee Training

Enhancing supplier management to ensure Investing in training to empower employees
quality in the supply chain. with quality management skills.
Resource Allocation for Quality Initiatives

1 2 3
Budget Personnel Technology
Allocating financial resources for Dedicating skilled personnel to Investing in technology to support
quality projects. lead quality efforts. quality management systems.
Performance Measurement in Quality
Management
Customer Satisfaction Defect Rates Process Efficiency Employee
Engagement

Tracking feedback Monitoring product Assessing workflow Measuring staff

scores defects efficiency involvement
Embracing Continuous Improvement

1 Innovation 2 Collaboration
Encouraging innovative thinking for Promoting teamwork to enhance quality
quality advancement. practices.

3 Learning
Learning from mistakes to refine quality processes.
Managing Change for Total Quality
Management

1 Shared Vision
Creating a vision that encapsulates the
essence of TQM.
Communication 2
Articulating the need for change and the
benefits of TQM.
3 Change Team
Forming a team to lead the TQM
transition.
Change Plan 4
Outlining a detailed plan for the shift to
TQM.
5 Training
Providing training to equip staff with TQM
principles.
 4
Managing Change to TQM

Managing change is a critical aspect of shifting to Total Quality Management

(TQM) within an organization. Implementing TQM requires a cultural shift and a
commitment to continuous improvement throughout the organization.
Developing a Compelling Vision
1 Alignment with Strategic Goals
A compelling vision should clearly communicate how TQM aligns with the
organization's strategic goals and illustrates the positive impact it can have on quality,
customer satisfaction, and overall organizational performance.

2 Engagement and Ownership

Involving leaders and employees in shaping the vision fosters ownership and
commitment, creating a unified purpose towards implementing TQM.

3 Inspiring Communication
The vision must be clear, inspiring, and communicated using various channels to
ensure it reaches all levels of the organization.
Communicating the Need for Change
1 Clear
Communication of
TQM Benefits
Articulate the reasons for
adopting TQM and the
benefits it can bring to the
organization and its
stakeholders.
2 Support for Strategic
Goals
Explain how TQM
supports the organization's
strategic goals and the need
for a cultural shift towards
quality improvement.
3 Variety of
Communication
Channels
Utilize town hall meetings,
newsletters, and training
sessions to ensure the
message reaches all levels
of the organization.
Building a Change Management Team

Diverse Representation Mandate and Authority Unified Coordination

Efficient coordination of the

The team should include
representatives from different
levels and functions of the
organization to ensure
comprehensive perspectives.
Providing the team with a clear
mandate and authority empowers
them to drive the change process
and coordinate efforts
effectively.
change initiatives across the
organization is essential for
successful implementation.
Developing a Change Management Plan

1 Comprehensive Plan Outline 2 Addressing Resistance

Incorporate strategies for managing
Create a plan that outlines specific resistance to change and establishing
steps, timelines, and resources required clear responsibilities and milestones for
to shift to TQM. tracking progress.
Providing Training and Development
Training Programs for TQM
Quality Management Principles
Focus on providing training in quality management principles and problem-solving
methodologies.

Employee Skill Enhancement

Offer workshops to help employees develop the necessary skills and knowledge for
TQM implementation.

Continuous Learning Culture

Promote a culture of continuous improvement through ongoing training and
development initiatives.
Monitoring Progress and Feedback

Progress Tracking Feedback Mechanisms

Establish key milestones to track the Create channels for feedback to gather
progress of TQM implementation and insights and make necessary adjustments
ensure alignment with the change during the transition to TQM.
management plan.
Quality Improvement Assessment
Performance Metrics Quality Improvement Employee Feedback Analysis
Initiatives

Evaluate key performance Document and assess the Analyze employee feedback to
indicators to measure the effectiveness of quality identify areas for enhancement.
impact of TQM improvement initiatives.
implementation.
Recognition and Celebration

Success Milestones Employee Recognition Team Engagement

Recognize and celebrate Appreciate and recognize the Foster a spirit of teamwork and
achievements and milestones efforts and contributions of collaboration by acknowledging
achieved through TQM employees towards embracing the collective efforts put into the
implementation. TQM principles. TQM transition.
 5
Shift to Total Quality
Management
Shifting to Total Quality Management (TQM) involves a comprehensive
overhaul encompassing various areas of an organization to cultivate a culture of
quality improvement and continuous learning. It requires a thorough examination
and transformation of the existing processes, approaches, and mindsets to
embrace a holistic commitment to quality.
Leadership and Management Style
Participative Leadership
Leaders should adopt a participative
management style that encourages
employee empowerment and innovation,
fostering a collaborative and transparent
environment.
Resource Prioritization
Leaders need to prioritize quality and
ensure the allocation of resources
necessary for effective TQM
implementation.
Organizational Culture Transformation

1 Culture of Continuous Learning

The establishment of a culture that prioritizes continuous learning, open
communication, and employee engagement.

2 Mindset of Accountability
Fostering a mindset of accountability and responsibility for quality at all levels,
promoting ownership of work and organizational improvement.

3 Customer-Centric Focus
Injecting a customer-centric focus into the organizational culture, ensuring that
customer satisfaction remains a top priority.
Employee Roles and Responsibilities

1 Quality Emphasis 2 Revised Job Descriptions

Redefining employee roles to emphasize Job descriptions and performance evaluations
quality and continuous improvement efforts. may need revisiting to align with TQM
principles.
Training and Development
Skills Enhancement Continuous Learning Opportunities

Providing employees with training in quality Encouraging continuous learning and professional
management principles, problem-solving development to support ongoing improvement
methodologies, and relevant areas to support TQM efforts.
implementation.
Communication and Collaboration

Effective Communication Channels Interdepartmental Collaboration

Encouraging collaboration across departments and
Establishing clear and open communication functions to foster teamwork and cross-functional
channels to facilitate the sharing of quality problem-solving.
improvement ideas and best practices.
Process Improvement
Systematic Process Mapping
Adopting a systematic approach to identify, analyze,
and improve processes throughout the organization.
Application of Problem-solving
Methodologies
Utilizing problem-solving methodologies such as Six
Sigma or Lean to enhance process efficiency and
quality.
Supplier Management and Relationships

Collaborative Partnerships Performance Monitoring Systems

Establishing strong relationships with suppliers to Implementing systems to monitor supplier
ensure the quality of inputs and materials. performance and quality standards.
Performance Measurement and Feedback
KPIs
Establishing Key Performance Indicators
Establishing metrics and KPIs to monitor quality-
related goals and outcomes.
Feedback
Regular Performance Reviews
Conducting regular feedback and performance reviews
to provide employees with insights for improvement.
Customer Focus and Continuous Improvement

Gather Customer Feedback Establish mechanisms to gather customer feedback

to drive improvement efforts and enhance
satisfaction.

Continuous Improvement Initiatives Establishing structures and processes to support

ongoing improvement initiatives, such as quality
improvement teams and innovation platforms.
 case study
Toyota Company

This case study delves into the nuanced strategies Toyota Company adopted in
its move towards Total Quality Management (TQM). Known for its high-quality
vehicles and manufacturing prowess, Toyota sought to elevate its standards and
heighten customer satisfaction further by embracing the tenets of TQM. This
detailed account examines the strategic decision-making, adoption of TQM
practices, and the change management techniques that underscored Toyota's
successful transition.
Introduction to Toyota's TQM Journey

Quality Commitment Continuous Improvement

Toyota is synonymous with quality and
consistency. Yet, the challenge to maintain a
uniform quality standard prompted the shift
towards TQM. This provided an integrated
approach focusing on quality in every facet of
the organization.
The lean philosophy and commitment to
continuous improvement positioned Toyota to
seamlessly adopt TQM. This framework
ensures a proactive stance on refining
processes and addressing quality control at its
core.

Strategic Shift
The move to TQM marked a pivotal shift in Toyota's strategy, aiming to solidify its market position.
By anchoring the TQM philosophy, Toyota initiated a company-wide push towards superior customer
value.
Strategic Management Process
Setting Objectives
Toyota's strategic journey
commenced with a clear
objective to escalate quality and
customer fulfillment by
implementing TQM
methodologies across its many
facets.
Environmental Analysis
Conducting a thorough analysis
of internal and external
elements influencing quality,
Toyota could pinpoint the pivot
towards TQM, ensuring that
strategic alignment addresses
customer demands and industry
standards.
Strategy Formulation
A strategy was formulated to
weave TQM into Toyota's
operational fabric, driving
employee engagement and a
strong focus on the needs of the
customer, setting the course for
transformation.
Change Management Approaches
Leadership Support
Toyota's leadership spearheaded
the TQM drive, articulating the
vision and enlisting the
workforce's support by
underscoring the overarching
benefits of the TQM culture.
Employee Involvement
Fostering a participative climate,
Toyota integrated employees
into the core of its TQM
transition, allowing them to
spearhead quality circles and
continuous improvement efforts.
Training & Development
Critical to efficacious change,
Toyota rolled out extensive
training to arm its workforce
with the expertise necessary for
the fruitful application of TQM
principles.
Implementing TQM Practices
1 Continuous Improvement
Kaizen, the essence of continuous
improvement, was adopted, sparking a
bottom-up initiative where employees
actively targeted quality enhancements
and efficiency.
2 Customer Focus
Toyota recalibrated its focus on
customer desires, seamlessly
incorporating customer feedback to
refine products and services, ultimately
driving a customer-centric ethic.

3 Empowered Workforce
Employee empowerment surged as Toyota granted greater autonomy, enabling decision-
making that spurred quality initiatives and technological ingenuity.
Collaboration with Suppliers

1 Selecting Partners
Toyota meticulously selected suppliers who were committed to quality, building partnerships
anchored in transparency and mutual growth.

2 Enhancing Quality
The company instilled TQM principles within its supply chain, offering guidance to help suppliers
align with Toyota's stringent quality specifications.

3 Continuous Support
Toyota's support to its suppliers was unwavering, with regular audits, shared best practices, and a
commitment to collaborative problem-solving.
Outcomes of TQM Adoption

1 2
Quality Uplift Customer Approval
The adoption of TQM practices precipitated a Enhanced focus on customer needs translated into
measurable uptick in product quality, witnessed by tangible gains in consumer satisfaction indexes and
reductions in defects and downtimes. repeat business rates.

3 4
Cost Efficiency Engaged Employees
Cost reductions were realized through streamlined Higher levels of employee involvement in TQM led to
operations and waste minimization, optimizing improved morale and productivity, echoing throughout
Toyota's end-to-end value chain. the organization.
Conclusion and Implications
Toyota's metamorphosis through strategic and change management to embed TQM
is a testament to its visionary leadership and organizational agility. The
comprehensive overview of Toyota's pivotal shift offers in-depth insights into the
framework of strategic evolution that other entities can emulate. Toyota's narrative
underscores how synchronized management strategies and change initiatives can
converge to cultivate quality excellence, amplify customer contentment, and sustain
a competitive edge in the dynamic landscape of the automobile industry.