Total Quality Management

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State University - Higher School of Economics

Institute for Policy and Program Evaluation
Total Quality Management Application to Business
Public Sector (Ekaterina Kuznetsova) Colloquiu
m Program and Policy Evaluation Methodology
and Application Moscow, 23. November 2006
www.hse.ru
www.iopp.ru
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Contents

• Case-studies
• TQM in Business
• TQM in Public Sector

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TQM in BUSINESS
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The EFQM Excellence Award

• is given when the Jury identifies an exceptional
  organisation with excellent and sustainable
  results across all areas, and demonstrates a
  highly effective, efficient and continuously
  improved management system

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Insight People Development and Involvement at
CCINCA

• CCINCA, a 2005 EFQM Excellence Award Finalist,
  sets an example with a structured people
  management system with the objective of improving
  customers and results orientation.
• CCINCA has managed to achieve a culture of
  improvement and trust.

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• Goal to change and to modernize the management
  system to cope with new competitive challenges
• Objective to be a public company managed as a
  private one with strong customer and results
  orientation
• Implementation people development and
  involvement improvement of people management
  system

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KEY SUCCESS FACTOR

• Implementation of a structured people management
  system

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The main elements of the system (1)

• HR policy which gives the orientations
• A competence development and training process
• An internal communication process
• An empowerment process
• An evaluation and recognition process

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The main elements of the system (2)

• A set of assessment tools
• annual EFQM self-assessment
• annual employee satisfaction survey
• manager satisfaction survey
• key performance indicators for each HR process
• an annual service contract review with directors
  
• some online surveys for training and
  communication

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Results achieved

• Deployment of the annual individual appraisal
  interview throughout the group, one part
  concerning skills and another part concerning
  performance.
• Recognition, through financial and non financial
  rewards, linked to individual achievement of
  objectives.
• 100 employees involvement in the improvement
  programme.
• Creation of a culture of improvement that is
  reinforced by the deployment of improvement
  process and assessment tools in each of the
  activities.
• Increased of the training budget to around 6 of
  the payroll and structure of the training
  processes to improve employee satisfaction with
  training.

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Do

• Get your top management committed to people
  development and convinced that the implementation
  of a people management system is a key factor in
  the global performance
• Work closely with managers and employees on the
  design of new HR tools to understand their needs
  and to provide everyone with a clear
  understanding of the project goals and
  objectives
• Take the time to deploy the tools progressively
• Empower your managers through the use of new HR
  tools
• Regularly review the effectiveness of the system
  in assessing the satisfaction of employees and
  managers
• Take the time to communicate on the project at
  all levels
• Ensure training and coaching for managers and
  their teams.

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Dont

• Dont deploy a new tool for all employees at the
  same time take the time to test
• Dont start the implementation of a new tool
  using criteria which have not been worked out by
  the employees and the managers themselves
• Dont forget to review
• Dont hesitate to coach people if difficulties
  are encountered

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TQM in Public Sector
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DOES IT WORK?
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Current political context of government

• focus on short-term activities that do not
  fundamentally change systems (emphasis on the
  quick fix)
• crisis driven rather than preventative
• driven by current economic conditions rather than
  long-term conditions
• characterized by mistrust between political and
  civil service arms of government
• top-down decision making prevalent
• highly adversarial positions of political parties

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The Pennsylvania Department of Transportations
Quality Program
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Revitalization

• complete overhaul of poorly performing public
  organizations into high-performance organizations
• Because of declines in service delivery,
  inadequate funding, cutbacks, low morale, lack of
  management capacity, lack of a sense of mission,
  loss of political support and public credibility

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Two Decades of Quality Management at PENNDOT,
1982-2002
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Two Years of Innovation and Change at PENNDOT,
1999-2001
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Thank You