Total Quality Management Week # 6 Culture, Communication, & Learning Prepared by: Khalid Dahleez Faculty of Commerce – the Islamic University of Gaza This material was collected from different sources TQM - Spring 2010 - Khalid Dahleez 1 Quality Culture (general concepts) Creating a quality culture within an organization is increasingly recognized as one of the primary conditions for the successful implementation of Total Quality Management. culture represents the way in which members of a business group control their behavior in order to communicate with each other and with other groups in that society. many organizations are not even aware of their own culture or its distinct characteristics. These cultures are influenced by the culture of the country and the nature of its business of the organization TQM - Spring 2010 - Khalid Dahleez 2 Quality Culture (general concepts) Peters and Waterman (1982) in their book In Search of Excellence, where they said ‘without exception, the dominance and coherence of culture within these organizations proved to be the essential quality of success’. In some studies it has been suggested that organizations with adaptive cultures, geared to satisfy the changing demands of customers, employees and shareholders can outperform organizations without such culture. Companies with sound culture can increase their sales three times more than the organization without a sound culture. Therefore a successful company needs more than just sound business strategy, it needs a culture to support the strategy. TQM - Spring 2010 - Khalid Dahleez 3 Quality Culture (Definition) Culture is the pattern of shared beliefs and values that provides the members of an organization rules of behavior or accepted norms for conducting operations. It is the philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an organization together and are shared by employees. Main components: ◦ ◦ ◦ ◦ ◦ ◦ Behaviors based on people interactions. Norms resulting from working groups. Dominant values adopted by the organization. Rules of the game for getting on. The climate. Any organization needs a vision framework that includes its guiding philosophy, core values and beliefs and a purpose these should be combined into a mission. TQM - Spring 2010 - Khalid Dahleez 4 Quality Culture (Viewpoints of the founders) The acknowledged experts agree on the need for a cultural or value system transformation: ◦ Deming calls for a transformation of the American management style. ◦ Feigenbaum suggests a pervasive improvement throughout the organization. ◦ According to Crosby, “Quality is the result of a carefully constructed culture, it has to be the fabric of the organization.” TQM - Spring 2010 - Khalid Dahleez 5 Quality Culture Successful organizations have a central core culture around which the rest of the company revolves. It is important for the organization to have a sound basis of core values into which management and other employees will be drawn. Without this central core, the energy of members of the organization will dissipate as they develop plans, make decisions, communicate, and carry on operations without a fundamental criteria of relevance to guide them. TQM - Spring 2010 - Khalid Dahleez 6 Creating TQM Culture From Traditional Culture Hierarchical style Top down information flow Inward quality focus Functional focus Short-term planning Episodic improvements Top down initiatives Manage and delegate Direct Counsel Functional and narrow scope of jobs Enforcement Fire – fighting with few individuals/group To TQM Culture Participative style Top down, lateral and upward information flow Customer defined quality focus Process focus A vision for the future Comprehensive/Continuous improvements All staff involved and engaged Lead and Coach Empower Ownership and participation Integrated functions Promoting mutual trust Team initiatives group focussing on continuous improvement TQM - Spring 2010 - Khalid Dahleez 7 Corporate Culture (Definition) The concept of corporate culture has been used in recent years to develop and understand the concept of culture in connection with the study of organizations. Culture or civilization, taken in its wide ethnographic sense, is that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society. ‘Corporate culture can be defined as a set of commonly held attitudes, values, and beliefs that guide the behavior of an organization's members’ (Martin, 1985). Culture reflects assumptions about clients, employees, mission, products, activities and assumptions that have worked well in the past and which get translated into norms of behavior, expectations about what is legitimate, desirable ways of thinking and acting. These are the focus of its capacity for evolution and change’ (Laurent, 1990). TQM - Spring 2010 - Khalid Dahleez 8 Factors Influencing Culture TQM - Spring 2010 - Khalid Dahleez 9 Steps for Creating TQM Culture Management accountability and a deep sense of responsibility & commitment towards employees is the starting point. Total people involvement and empowerment Communication Training to employees Management thoughts and action towards delighting its customers Removing organisational boundaries and internal competition Using fact based decision making Use of Kaizen TQM - Spring 2010 - Khalid Dahleez 10 Changing the culture TQM is concerned with moving the focus of control from outside the individual to within, the objective being to make everyone accountable for their own performance, and to get them committed to attaining quality in a highly motivated fashion. Changing the Culture • The culture of an organisation is formed by the beliefs, behaviours, norms, dominant values, rules, and climate in the organisation. • Each Organisation needs a vision (Guiding Philosophy). • Everyone within the organisation has a role and must do their work towards the common goals and objectives. • TQM is concerned with moving the focus of control from the outside to the inside of individuals and so everyone is accountable for her/his performance. TQM - Spring 2010 - Khalid Dahleez 11 Changing the culture The guiding philosophy drives the organization and is shaped by the leaders through their thoughts and actions. The core values and beliefs represent the organization’s basic principles about what is important in business, its conduct, its social responsibility and its response to changes in the environment. The purpose of the organization should be a development from the core values and beliefs and should quickly and clearly convey how the organization is to fulfill its role. TQM - Spring 2010 - Khalid Dahleez 12 Resistance to cultural change People are afraid that the change will affect their way of functioning. People perceive that they will lose their control over things. There is a personal uncertainty that they will not be able to live up to the expectations of others. The change may mean more work for them. There may be past resentments against management. They think that TQM will die its natural death after sometime like several other concepts. TQM - Spring 2010 - Khalid Dahleez 13 Resistance to cultural change There is an attitude that TQM will go away if I ignore it. They are unwilling to take ownership and feel committed. They think it is somebody else’s responsibility. They have the attitude – first you change, then I will. They think that others will find out that what I have been doing over the years is wrong. I could be penalized for my misdeeds. TQM - Spring 2010 - Khalid Dahleez 14 Communication Communication is linked in the quality process. The ability to communicate is a valuable skill at all levels, from front-line supervisor to CEO. How Employees Receive Information? The culture of an organization can sometimes define how the employees receive information. The following represents the ways in which employees get their information: ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Monthly town meeting between the CEO and staff Monthly departmental meeting Email Members of the inner circle Company newsletter Memos External customers who call with questions Voice mail Verbal and/or written feedback from a manager or superior TQM - Spring 2010 - Khalid Dahleez 15 Communication Communication is defined as the exchange of information and understanding between two or more persons or groups. Note the emphasis on exchange and understanding. Without understanding between sender and receiver concerning the message, there is no communication. All information is encoded, and prior agreement must be reached onthe meaning of the code. Quality must be carefully defined andmeasures agreed upon. Communication downward cannot work because it focuses on whatwe want to say. Communication should be up & down. Employees should be encouraged to set measurable goals. TQM - Spring 2010 - Khalid Dahleez 16 Communicating the quality strategy ◦ The essence of changing attitudes is to gain acceptance for the need to change, and for this to happen it is essential to provide relevant information, convey good practices, and generate interest, ideas and awareness through excellent communication processes. ◦ This change will require direct and clear communication from the top management to all staff and employees, to explain the need to focus on processes. Everyone will need to know their roles in understanding processes and improving their performance. ◦ An excellent way to accomplish this first step is to issue a total quality message that clearly states top management’s commitment to quality and outlines the role everyone must play. TQM - Spring 2010 - Khalid Dahleez 17 Communicating the quality strategy ◦ This can be in the form of a quality policy or a specific statement about the organization’s intention to integrate quality into the business operations. ◦ Example 1: We can become a total quality organization only with your commitment and dedication to improving the processes in which you work. We will help you by putting in place a program of education, training, and teamwork development, based on business and process improvement, to ensure that we move forward together to achieve our business goals. ◦ Example 2: We wish to convey to everyone our enthusiasm and personal commitment to the total quality approach, and how much we need your support in our mission of business improvement. We hope that you will become as convinced as we are that business and process improvement is critical for our survival and continued success. TQM - Spring 2010 - Khalid Dahleez 18 Communicating the quality strategy The quality director or TQM coordinator should then assist the senior management team toprepare a directive. This must be signed by all business unit, division, or process leaders, anddistributed to everyone in the organization. The directive should include the following: Need for improvement. Concept for total quality. Importance of understanding business processes. Approach that will be taken and people’s roles. Individual and process group responsibilities. Principles of process measurement. TQM - Spring 2010 - Khalid Dahleez 19 Communication Model This communication model indicates the potential for problems through environmental distractions, mismatches between sender and receiver (or more correctly, decoder) in terms of attitudes – towards the information and each other – vocabulary, time pressures, etc TQM - Spring 2010 - Khalid Dahleez 20 Communicating the quality message The people in most organizations fall into one of four ‘audience’ groups, each with particular general attitudes towards TQM: 1. Senior managers, who should see TQM as an opportunity, both for the organization and themselves. 2. Middle managers, who may see TQM as another burden without any benefits, and may perceive a vested interest in the status quo. 3. Supervisors (first line or junior managers), who may see TQM as another ‘flavor of the period’ or campaign, and who may respond by trying to keep heads down so that it will pass over. 4. Other employees, who may not care, so long as they still have jobs and get paid, though these people must be the custodians of the delivery of quality to the customer and own that responsibility. TQM - Spring 2010 - Khalid Dahleez 21 Communicating the quality message Senior management needs to ensure that each group sees TQM as being beneficial to them. Total quality training material and support (whether internal from a quality director and team or from external consultants) will be of real value only if the employees are motivated to respond positively to them. The implementation strategy must then be based on two mutually supporting aspects: 1. 2. ‘Marketing’ any TQM initiatives. A positive, logical process of communication designed to motivate people (‘discovery’, affirmation, participation, and team-based learning). The key medium for motivating the employees and gaining their commitment to quality is face-to-face communication and visible management commitment. TQM - Spring 2010 - Khalid Dahleez 22 Methods of Communication Verbal communication either between individuals or groups, using direct or indirect methods, such as public address and other broadcasting systems and recordings. Written communication in the form of notices, bulletins, information sheets, reports, e-mail and recommendations. Visual communication such as posters, films, video, internet/intranet, exhibitions, demonstrations, displays and other promotional features. Some of these also call for verbal and written communication. Example, through the way people conduct themselves and adhere to established working codes and procedures, through their effectiveness as communicators and ability to ‘sell’ good practices. TQM - Spring 2010 - Khalid Dahleez 23 Education & Training Education and training can be a powerful stimulus to personal development at the workplace, as well as achieving improvements for the organization. Education and training is the single most important factor in actually improving quality and business performance, once there has been commitment to do so. For education and training to be effective, however, it must be planned in a systematic and objective manner to provide the right sort of learning experience. Education and training must be continuous to meet not only changes in technology but also changes in the environment in which an organization operates, its structure, and perhaps most important of all the people who work there. TQM - Spring 2010 - Khalid Dahleez 24 Education & Training Cycle TQM - Spring 2010 - Khalid Dahleez 25 Education & Training as part of the Quality policy Every organization should define its policy in relation to education and training. The policy should contain principles and goals to provide a framework within which learning experiences may be planned and operated. This policy should be communicated to all levels. Example: We can become a total quality organization only with your commitment and dedication to improving the processes in which you work.We will help you by putting in place a program of education, training, and teamwork development, based on business and process improvement, to ensure that we move forward together to achieve our business goals. TQM - Spring 2010 - Khalid Dahleez 26 Establish objectives and responsibilities for education and training When attempting to set education and training objectives three essential requirements must be met: 1. 2. 3. Senior management must ensure that learning outcomes are clarified and priorities set. The defined education and training objectives must be realizable and attainable. The main objectives should be ‘translated’ for all functional areas in the organization. The following questions are useful first steps when identifying education and training objectives: 1. 2. 3. 4. How are the customer requirements transmitted through the organization? Which areas need improved performance? What changes are planned for the future? What are the implications for the process framework? TQM - Spring 2010 - Khalid Dahleez 27 Establish the platform for a learning organization The overall responsibility for seeing that education and training is properly organized must be assumed by one or more designated senior executives. All managers have a responsibility for ensuring that personnel reporting to them are properly trained and competent in their jobs. This responsibility should be written into every manager’s job description. The question of whether line management requires specialized help should be answered when objectives have been identified. It is often necessary to use specialists, who may be internal or external to the organization. TQM - Spring 2010 - Khalid Dahleez 28 Specify education and training needs The following questions need to be answered: Who needs to be educated/trained? What competencies are required? How long will the education/training take? What are the expected benefits? Is the training need urgent? How many people are to be educated/trained? Who will undertake the actual education/ training? What resources are needed, e.g. money, people, equipment, accommodation, outside resources? TQM - Spring 2010 - Khalid Dahleez 29 Prepare education/training programs and materials Senior management should participate in the creation of overall programs, although line managers should retain the final responsibility for what is implemented, and they will often need to create the training programs themselves. Training programs should include: ◦ The training objectives expressed in terms of the desired behavior. ◦ The actual training content. ◦ The methods to be adopted. ◦ Who is responsible for the various sections of the program? TQM - Spring 2010 - Khalid Dahleez 30 Implement, monitor, & Assess education and training The effective implementation of education and training programs demands considerable commitment and adjustment by the trainers and trainees alike. Training is a progressive process, which must take into account any learning problems of the trainees. In order to determine whether further education or training is required, line management should themselves review performance when training is completed. However good the training may be, if it is not valued and built upon by managers and supervisors, its effect can be severely reduced. TQM - Spring 2010 - Khalid Dahleez 31 Review effectiveness of education and training Senior management will require a system whereby decisions are taken at regular fixed intervals on: ◦ ◦ ◦ ◦ The policy. The education and training objectives. The education/training organization. The progress towards a learning organization. Even if the policy remains constant, there is a continuing need to ensure that new education and training objectives are set either to promote work changes or to raise the standards already achieved. The education/ training organization should similarly be reviewed in the light of the new objectives, and here again it is essential to aim at continuous improvement. TQM - Spring 2010 - Khalid Dahleez 32 A systematic approach to education and training for quality Education and training for quality should have, as its first objective, an appreciation of the personal responsibility for meeting the ‘customer’ requirements by everyone from the most senior executive to the newest and most junior employee. Responsibility for the training of employees in quality rests with management at all levels and, in particular, the person nominated for the co-ordination of the organization’s quality effort. Education and training will not be fully effective, however, unless responsibility for the deployment of the policy rests clearly with the chief executive. One objective of this policy should be to develop a climate in which everyone is quality conscious and acts with the needs of the customer in mind at all times. TQM - Spring 2010 - Khalid Dahleez 33 A systematic approach to education and training for quality The main elements of effective and systematic quality training may be considered under four broad headings: 1. Error/defect/problem prevention. 2. Error/defect/problem reporting and analysis. 3. Error/defect/problem investigation. 4. Review. The emphasis should obviously be on error, defect, or problem prevention. TQM - Spring 2010 - Khalid Dahleez 34 Error/defect/problem prevention The following contribute to effective and systematic training for prevention of problems in the organization: An issued quality policy. 2. A written management system. 3. Job specifications that include quality requirements. 4. Effective steering committees, including representatives of both management and employees. 5. Efficient housekeeping standards. 6. Preparation and display of maps, flow diagrams and charts for all processes. 1. TQM - Spring 2010 - Khalid Dahleez 35 Error/defect/problem reporting and analysis It will be necessary for management to arrange the necessary reporting procedures, and ensure that those concerned are adequately trained in these procedures. All errors, rejects, defects, defectives, problems, waste, etc. should be recorded and analyzed in a way that is meaningful for each organization, bearing in mind the corrective action programs that should be initiated at appropriate times. TQM - Spring 2010 - Khalid Dahleez 36 Error/defect/problem investigation The investigation of errors, defects, and problems can provide valuable information that can be used in their prevention. The following information is useful for the investigation: Nature of problem. Date, time and place. Product/service with problem. Description of problem. Causes and reasons behind causes. Action advised. Action taken to prevent recurrence. TQM - Spring 2010 - Khalid Dahleez 37 Review of quality training Review of the effectiveness of quality training programs should be a continuous process. However, the measurement of effectiveness is a complex problem. One way of reviewing the content and assimilation of a training course or program is to monitor behavior during quality audits. This review can be taken a stage further by comparing employees’ behavior with the objectives of the qualitytraining program. Other measures of the training processes should be found to establish the benefits derived. TQM - Spring 2010 - Khalid Dahleez 38 Starting where and for whom? Education and training needs occur at four levels of an organization: 1. Very senior management (strategic decision makers). 2. Middle management (tactical decision makers or implementers of policy). 3. First level supervision and quality team leaders (on-thespot decision makers). 4. All other employees (the doers). Neglect of education/ training in any of these areas will, at best, delay the implementation of TQM and the improvements in performance. TQM - Spring 2010 - Khalid Dahleez 39 Very senior management The chief executive and his team of strategic policy makers are of primary importance, and the role of education and training here is to provide awareness and instil commitment to quality. Executives responsible for marketing, sales, finance, design, operations, purchasing, personnel, distribution, etc. all need to understand quality. They must be shown how to define the policy and objectives, how to establish the appropriate organization, how to clarify authority, and generally how to create the atmosphere in which total quality will thrive. TQM - Spring 2010 - Khalid Dahleez 40 Very senior management This is the only group of people in the organization that can ensure that adequate resources are provided and directed at: 1. Meeting customer requirements – internally and externally. 2. Setting standards to be achieved – zero failure. 3. Monitoring of quality performance – quality costs. 4. Introducing a good quality management system – prevention. 5. Implementing process control methods – SPC. 6. Spreading the idea of quality throughout the whole workforce – TQM. TQM - Spring 2010 - Khalid Dahleez 41 Middle management The basic objectives of management quality training should be to make managers conscious and anxious to secure the benefits of the total quality effort. The middle managers should be provided with the technical skills required to design, implement, review, and change the parts of the quality management system that will be under their direct operational control. Middle management should receive comprehensive training on the philosophy and concepts of teamwork, and the techniques and applications of statistical process control (SPC). TQM - Spring 2010 - Khalid Dahleez 42 First-level supervision There is a layer of personnel in many organizations which plays a vital role in their inadequate performance – foremen and supervisors – the forgotten men and women of industry and commerce. The first level of supervision is where the implementation of total quality is actually ‘managed’. Supervisors’ training should include an explanation of the principles of TQM, a convincing exposition on the commitment to quality of the senior management, and an explanation of what the quality policy means for them. The remainder of their training needs to be devoted to explaining their role in the operation of the quality management system, teamwork, SPC, etc., and to gaining their commitment to the concepts and techniques of total quality. TQM - Spring 2010 - Khalid Dahleez 43 All other employees Awareness and commitment at the point of production or service delivery is just as vital as at the very senior level. If it is absent from the latter, the TQM program will not begin; if it is absent from the shop floor, total quality will not be implemented. The training here should include the basics of quality and particular care should be given to using easy reference points for the explanation of the terms and concepts. All employees should receive detailed training on the processes and procedures relevant to their own work. Obviously they must have appropriate technical or ‘job’ training, but they must also understand the requirements of their customers. TQM - Spring 2010 - Khalid Dahleez 44 Turning Educating & Training into Learning Learning can be defined as a process in which individuals can change their attitude to adopt a continuous development of basic knowledge and skills in pursuit of total professionalism. Effective action must be organized around a range of systems and procedures to accomplish the goal. The basic requirement of any effective learning process is, therefore, the desire to learn the skills, to implement them and to practice them in an appropriate context. Continuous learning requires a sustained interest in learning over time and relates to the improvement in learning ability which is independent to the content being learned. TQM - Spring 2010 - Khalid Dahleez 45 QUALITY LEARNING The key word in relation to continuous improvements is learning. In order to communicate this to his audience/readers, Deming changed the name of the improvement cycle (the Deming cycle) from plan-docheck-act to plan-do-study/learn-act. In the check phase of the improvement cycle, you have to study the results in order to understand what were the causes behind them. This learning process is the most important part of the continuous improvement process. Therefore, we will discuss the learning process. TQM - Spring 2010 - Khalid Dahleez 46 Continuous Quality Learning Cycle In general, quality learning is a continuous process that can be broken anywhere in the learning systems of supply and customer service. Deming cycle plan defines the learning process which ensures documentation and sets measurable objectives against it. The do executes the process and collects the information and knowledge required. The check analyses the information in a suitable format. The act obtains corrective action using quality learning techniques and methods and assesses future plans. At the end of each cycle the process is either standardized or learning targets are adjusted based on the analysis and the cycle continues. TQM - Spring 2010 - Khalid Dahleez 47 Learning Organizations & TQM learning organizations are organizations where people continually expand their capacity to create desired results, where new patterns of thinking are nurtured and where people are continually learning how to learn together. learning organizations as being skilled at creating, acquiring and transferring knowledge and then being able to modify behavior to reflect this new knowledge and insight. Both of these definitions imply a new way of thinking about how people work together and the need for greater emphasis on reviewing current and past experiences. T QM, if practiced as a philosophy as well as a set of techniques, can be a vehicle for organizational learning. Quality is primarily associated with learning. There is a clear philosophical link between systemic problem solving of a learning organization and the quality movement. TQM - Spring 2010 - Khalid Dahleez 48 Learning Organizations & TQM Garvin suggests that, to become a learning organization, companies need to be skilled at the following five activities: 1. Systematic problem solving: Relates to the philosophy and methods of the quality movement, relying on scientific method rather than guesswork; uses actual data rather than assumptions and simple statistical tools. 2. Experimentation with new approaches: Systematic searching for and testing new knowledge; motivated by opportunity and new perspectives and not by current difficulties. 3. Learning from their experiences and past history: A review of successes and failures; reflecting and self-analysis. 4. Learning from experiences and best practices of others: Benchmarking; looking outside the immediate environment; openness to the outside world; environmental scanning. TQM - Spring 2010 - Khalid Dahleez 49 Learning Organizations & TQM 5. Transferring knowledge quickly and efficiently throughout the organization: Knowledge transferred quickly and efficiently throughout the organization; mechanisms in place to facilitate the process; written and oral reports; site visits; tours; rotation programs; education and training programs. Learning is clearly an output of a successfully implemented TQM program and a TQM initiative can only be regarded as successful when a new working environment has been created in which people are able to learn, share knowledge and make contributions. TQM - Spring 2010 - Khalid Dahleez 50 Summary Slide The following Slides are for understanding only (subject to indirect Questions): “ 13, 14” Other slides are required and subjects to any type of Questions Total Quality Management - Spring 2010 51