TQ and Organizational Change

1
Chapter 11

• TQ and Organizational Change

2
Organizational Change Realities
Organizations contemplating change must answer
some tough questions, such as, Why is the change
necessary? What will it do to my organization
(department, job)? What problems will I encounter
in making the change? and perhaps the most
important one Whats in it for me?
3
Strategic vs. Process Change

• Strategic change is broad in scope and stems from
  strategic objectives, which are generally
  externally focused and relate to significant
  customer, market, product/service, or
  technological opportunities and challenges.
• Process change is narrow in scope and deals with
  the operations of an organization. An
  accumulation of continuously improving process
  changes can lead to a positive and sustainable
  culture change.

4
Strategic vs. Process Change
5
Cultural Change

• Culture the set of beliefs and values shared by
  the people in an organization.
• Cultural values often seen in mission and vision
  statements
• Firms pursuing TQ often need cultural change

6
Elements of a TQ Culture

• Focus on the future
• Managing for innovation
• Management by fact
• Social responsibility
• Focus on results and creating value
• Systems perspective

• Visionary leadership
• Customer Driven
• Organizational and personal learning
• Valuing employees and partners
• Agility

7
Why Adopt TQ Philosophy?

• Reaction to competitive threat to profitable
  survival
• An opportunity to improve

8
Requirements for Building a TQ Organization

• Readiness for change
• Sound practices and implementation strategies
• Effective organization

9
Perspectives on Cultural Change

• Change can be accomplished, but it is difficult
• Imposed change will be resisted
• Full cooperation, commitment, and participation
  by all levels of management is essential
• Change takes time
• You might not get positive results at first
• Change might go in unintended directions

10
Implementing Total QualityKey Players

• Senior management
• Middle management
• Workforce

11
Transforming Middle Managers to Change Agents

• Empower
• Create a common vision of excellence
• Create new organizational rules
• Implement continuous improvement
• Develop and retain peak performers

12
Common Mistakes in TQ Implementation (1 of 3)

• TQ regarded as a program
• Short-term results are not obtained
• Process not driven by focus on customer,
  connection to strategic business issues, and
  support from senior management
• Structural elements block change
• Goals set too low
• Command and control organizational culture

13
Common Mistakes in TQ Implementation (2 of 3)

• Training not properly addressed
• Focus on products, not processes
• Little real empowerment is given
• Organization too successful and complacent
• Organization fails to address fundamental
  questions
• Senior management not personally and visibly
  committed

14
Common Mistakes in TQ Implementation (3 of 3)

• Overemphasis on teams for cross-functional
  problems
• Employees operate under belief that more data are
  always desirable
• Management fails to recognize that quality
  improvement is personal responsibility
• Organization does not see itself as collection of
  interrelated processes

15
Building on Best Practices

• Universal best practices
• Cycle time analysis
• Process value analysis
• Process simplification
• Strategic planning
• Formal supplier certification programs

16
Best Practices Infrastructure Design (1 of 3)

• Low performers
• process management fundamentals
• customer response
• training and teamwork
• benchmarking competitors
• cost reduction
• rewards for teamwork and quality

17
Best Practices Infrastructure Design (2 of 3)

• Medium performers
• use customer input and market research
• select suppliers by quality
• flexibility and cycle time reduction
• compensation tied to quality and teamwork

18
Best Practices Infrastructure Design (3 of 3)

• High performers
• self-managed and cross-functional teams
• strategic partnerships
• benchmarking world-class companies
• senior management compensation tied to quality
• rapid response

19
Quality Engines of Baldrige Winners
20
Self Assessment Basic Elements

• Management involvement and leadership
• Product and process design
• Product control
• Customer and supplier communications
• Quality improvement
• Employee participation
• Education and training
• Quality information

21
Importance of Follow-Up of Self-Assessment Results

• Many organizations derive little benefit from
  conducting self-assessment and achieve few of the
  process improvements suggested by self-study
• Reasons
• Managers do not sense a problem
• Managers react negatively or by denial
• Managers dont know what to do with the
  information

22
Leveraging Self-Assessment Findings

• Prepare to be humbled
• Talk through the findings
• Recognize institutional influences
• Grind out the follow-up

23
Knowledge Management

• The process of identifying, capturing,
  organizing, and using knowledge assets to create
  and sustain competitive advantage.
• Knowledge assets refer to the accumulated
  intellectual resources that an organization
  possesses, including information, ideas,
  learning, understanding, memory, insights,
  cognitive and technical skills, and capabilities.

24
Types of Knowledge

• Explicit knowledge includes information stored in
  documents or other forms of media.
• Tacit knowledge is information that is formed
  around intangible factors resulting from an
  individuals experience, and is personal and
  content-specific.

25
Organizational Learning

• Create a learning organization
• Planning
• Execution of plans
• Assessment of progress
• Revision of plans based on assessment findings

26
Key Activities of Learning Organizations

• Systematic problem solving
• Experimentation with new approaches
• Learning from their own experiences and history
• Learning from the experiences and best practices
  of others
• Transferring knowledge quickly and efficiently
  throughout the organization

27
Internal Benchmarking

• The ability to identify and transfer best
  practices within the organization
• Process
• Identify and collect internal knowledge and best
  practices
• Share and understand those practices
• Adapt and apply them to new situations and
  bringing them up to best-practice performance
  levels.

28
Implementing Six Sigma

• Committed leadership
• Integration with existing initiatives, business
  strategy, and performance measurement
• Process thinking
• Disciplined customer and market intelligence
  gathering
• A bottom line orientation
• Leadership in the trenches
• Training
• Continuous reinforcement and rewards

29
TQ and Organizational Theory

• Reason for change
• Traditional productivity or job satisfaction
• TQ customer satisfaction
• Source of change
• Both top management
• Types of change
• Traditional limited in scope and duration
• TQ continuous improvement over a long period of
  time

30
Principles for Managing Change

• Unfreeze attitudes and behavior
• Have effective leadership
• Manage interdependence
• Involve the people
• Refreeze to make gains permanent