Chapter 5
Leadership and Strategic
Planning
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Leadership
• The ability to positively influence
people and systems to have a
meaningful impact and achieve results
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Strategic Planning
• The process of envisioning an
organization’s future and developing
the necessary procedures and
operations to achieve that future.
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The Baldrige “Leadership Triad”
Strategic
Planning
Operations
Leadership
Customer and
Market Focus
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Executive Leadership
• Defining and communicating business directions
• Ensuring that goals and expectations are met
• Reviewing business performance and taking
appropriate aciton
• Creating an enjoyable work environment
• Soliciting input and feedback from customers
• Ensuring that employees are effective contributors
• Motivating, inspiring, and energizing employees
• Recognizing employee contributions
• Providing honest feedback
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Core Leadership Skills
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Vision
Empowerment
Intuition
Self-understanding
Value congruence
Dale Crownover, President, Texas Nameplate Co.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Leading Practices - Leadership
• Create a customer-focused strategic vision and clear
quality values
• Create and sustain leadership system and
environment for empowerment, innovation, and
organizational learning
• Set high expectations and demonstrate personal
commitment and involvement in quality
• Integrate quality values into daily leadership and
management and communicate extensively
• Integrate public responsibilities and community
support into business practices
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Leadership Theories
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Trait approach
Behavioral approach
Contingency (situational) approach
Role approach
Emerging theories:
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Attributional theory
Transactional theory
Transformational leadership theory
Substitutes for leadership theory
Emotional intelligence theory
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Zenger-Miller
Leadership Competencies
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Setting or sharing a vision
Managing a change
Focusing on the customer
Dealing with individuals
Supporting teams and
groups
• Sharing information
• Solving problems, making
decisions
• Managing business
processes
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Managing projects
Displaying technical skills
Managing time and resources
Taking responsibility
Taking initiative beyond job
requirements
Handling emotions
Displaying professional ethics
Showing compassion
Making credible presentations
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Leadership System
• Refers to how decisions are made,
communicated, and carried out at all levels;
mechanisms for leadership development,
self-examination, and improvement
• Effectiveness of leadership system depends
in part on its organizational structure
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Common Organizational Structure
Customers
Customer
team
Customer
team
Customer
team
Systems and support services
Executive steering committee
CEO
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Leadership and Public
Responsibilities
• Ethics
• Health, safety, and environment
• Community support
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Strategic Planning
“A strategy is a pattern or plan that integrates an
organization’s major goals, policies, and action
sequences into a cohesive whole.”
James Quinn
Formal strategy includes:
• Goals to be achieved
• Policies to guide or limit action
• Action sequences, or programs,
that accomplish the goals
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Tasks Accomplished
by Strategic Planning
• Understand important customer and operational
requirements
• Optimize use of resources and ensure bridging
between short-term and longer-term
requirements
• Ensure that quality initiatives are understood at
all organizational levels
• Ensure that work organizations and structures
will facilitate accomplishment of strategic plan
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Leading Practices Strategic Planning
• Active participation of top management,
employees, customers, suppliers
• Systematic planning systems for strategy
development and deployment, including
measurement, feedback, and review
• Use of a variety of external and internal data
• Align short-term action plans with long-term
strategic objectives, communicate them, and
track progress
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Strategic Planning Process
Reason for existence
Mission
Future intent
Attitudes and policies
Vision
Guiding Principles
Environmental assessment
Strategies
Broad statements of direction
Strategic Objectives
Action Plans
Capabilities and risks
Things to change or
improve
Implementation
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Mission
• Definition of products and services,
markets, customer needs, and distinctive
competencies
• Solectron: “…to provide worldwide
responsiveness to our customers by offering
the highest quality, lowest total cost,
customized, integrated, design, supply
chain, and manufacturing solutions through
long-term partnerships based on integrity
and ethical business practices.”
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Vision
• Where the organization is headed and what
it intends to be
– Brief and memorable - grab attention
– Inspiring and challenging - creates excitement
– Descriptive of an ideal state - provides
guidance
– Appealing to all stakeholders - employees can
identify with
• Solectron: “Be the best and continuously
improve”
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Policy Deployment
(Hoshin Kanri)
• Top management vision leading to long-term
objectives
• Deployment through annual objectives and
action plans
• Negotiation for short-term objectives and
resources (catchball)
• Periodic reviews
See Figure 5.7!
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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The Seven Management
and Planning Tools
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Affinity diagrams
Interrelationship digraphs
Tree diagrams
Matrix diagrams
Matrix data analysis
Process decision program charts
Arrow diagrams
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Leadership in the Baldrige Criteria
The Leadership Category examines how an organization’s
senior leaders address values, directions, and
performance expectations, as well as a focus on
customers and other stakeholders, empowerment,
innovation, and learning. Also examined is how the
organization addresses its responsibilities to the public
and supports its key communities.
1.1 Organizational Leadership
a. Senior Leadership Direction
b. Organizational Performance Review
1.2 Public Responsibility and Citizenship
a. Responsibilities to the Public
b. Support of Key Communities
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Strategic Planning
in the Baldrige Criteria
The Strategic Planning Category examines how an
organization develops strategic objectives and action
plans. Also examined are how chosen strategic objectives
and action plans are deployed and how progress is
measured.
2.1 Strategy Development
a. Strategy Development Process
b. Strategic Objectives
2.2 Strategy Deployment
a. Action Plan Development and Deployment
b. Performance Projection
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