Chapter-02 Leadership Leadership is the act of inspiring and guiding others towards shared goals, shaping values, and promoting motivation and ethical conduct, ultimately enabling individuals and the organization to achieve what they thought was impossible. Characteristics of Quality Leaders Successful quality leaders exhibit 12 key behaviors: 1. Prioritize and understand the needs of both external and internal customers. 2. Empower subordinates, trusting their abilities and providing necessary resources. 3. Focus on continuous improvement rather than settling for the status quo. 4. Emphasize prevention of problems while maintaining a balance between perfection and progress. 5. Encourage collaboration among teams and departments instead of fostering competition. 6. Train and coach employees to enhance their skills and performance. 7. View problems as opportunities to learn and prevent future occurrences. 8. Strive to improve communication, making TQM efforts transparent and involving all stakeholders. 9. Demonstrate unwavering commitment to quality through actions, not just words. 10. Select suppliers based on quality rather than sole price, involving them in projects. 11. Establish organizational systems, such as quality councils and work groups, to support quality initiatives. 1 12. Encourage and recognize team efforts, appreciating and rewarding individuals and teams for their contributions. The 7 Habits of Highly Effective People: The 7 Habits of Highly Effective People, as described by Stephen R. Covey, are principles for achieving success. They are based on the character ethic, which emphasizes qualities like integrity and humility. Covey believes that our character and values are more important than superficial traits like personality or communication skills. A paradigm is the way we see and interpret the world. To be effective, we must be open to changing our paradigms. Many scientific breakthroughs come from paradigm shifts. Habits are formed through a combination of knowledge, skill, and desire. The 7 Habits focus on moving from dependency to independence to interdependence. The first three habits relate to personal growth, while the next three focus on teamwork and communication. The seventh habit is about self-renewal. Covey introduces the concept of the "P/PC Balance," which refers to balancing production and production capacity. For example, maintaining a lawnmower is important to ensure it can continue to mow the lawn effectively. This balance applies to various aspects of life, including physical, financial, and human resources. 1. Habit 1: Be Proactive Habit 1 is about being proactive and taking responsibility for our lives. We should make choices based on our values, rather than reacting to circumstances. Our language reflects our behavior, and proactive people focus on what they can do, while reactive people blame external factors. 2. Habit 2: Begin with the End in Mind 2 Habit 2 is about beginning with the end in mind. It involves envisioning the desired outcomes and creating a personal philosophy or creed. By aligning our lives with correct principles, we establish a solid foundation for success. 3. Habit 3: Put First Things First Habit 3 is about prioritizing and managing our time effectively. It requires us to identify our key roles and objectives and schedule time accordingly. The goal is to spend most of our time on activities that contribute to our mission and values. 4. Habit 4: Think Win-Win Habit 4 is about seeking win-win solutions in all interactions. It involves considering the needs and perspectives of others and finding mutually beneficial outcomes. Building trust and maintaining positive relationships are essential for win-win agreements. To obtain WinWin, a four-step process is needed: (1) see the problem from the other viewpoint; (2) identify the key issues and concerns; (3) determine acceptable results; and (4) seek possible new options to achieve those results. 5. Habit 5: Seek First to Understand, Then to Be Understood Habit 5 is about listening empathetically and seeking to understand others before seeking to be understood. It involves developing strong communication skills and showing genuine interest in others' perspectives. 6. Habit 6: Synergy Habit 6 is about synergy, which means that we can achieve more together than individually. By embracing teamwork and creative cooperation, we can find innovative solutions that surpass what we could achieve alone. 3 7. Habit 7: Sharpen the Saw (Renewal) Habit 7 is about self-renewal and taking care of our physical, spiritual, mental, and social/emotional well-being. It involves regularly engaging in activities that enhance these dimensions of our lives. Covey believes that these habits are based on natural laws and that living by them leads to personal growth and fulfillment. He suggests that following our conscience and aligning with correct principles will help us rise above mere animal existence. The Deming Philosophy The Deming Philosophy, developed by W. Edwards Deming, is a set of principles aimed at improving the quality and productivity of organizations. Here are the key points explained in simple words: 1. Create and Publish the Aims and Purposes of the Organization: Management should define and communicate the organization's purpose, involving investors, customers, suppliers, employees, and the community. Long-term goals should be set, and resources allocated for research, training, and innovation. 2. Learn the New Philosophy: Everyone in the organization, including top management, needs to adopt a mindset of continuous improvement. Customer satisfaction should be the top priority, and the focus should be on preventing defects rather than detecting them. Suppliers should be helped to improve quality. 3. Understand the Purpose of Inspection: Inspection should be used to improve processes and reduce costs. Mass inspection is costly and unreliable, and statistical techniques should be used for continuous improvement. Acceptance sampling should be minimized or eliminated. 4. Stop Awarding Business Based on Price Alone: Choosing suppliers based solely on low prices is not effective. Long-term relationships with single suppliers should be developed to improve products and services. 4 Purchasing agents should be trained in statistical methods and monitor quality. 5. Improve Constantly and Forever the System: Management should take responsibility for solving problems and improving quality, productivity, and cost reduction. Problems should be prevented before they occur, and control charts can be used to reduce variation. Teams should be assigned to improve processes. 6. Institute Training: Every employee should be trained to perform their job effectively. Training should include statistical methods, and the need for further training should be monitored using those methods. 7. Teach and Institute Leadership: Supervisors should be trained in statistical methods and the Deming Philosophy. They should create a positive work environment that promotes pride in workmanship. Clear communication should flow from top management to supervisors to operators. 8. Drive Out Fear, Create Trust, and Create a Climate for Innovation: Open communication, teamwork, and trust should be encouraged. Management should eliminate fear by providing training, good supervision, and a safe working environment. When people feel valued, they contribute ideas for improvement. 9. Optimize the Efforts of Teams, Groups, and Staff Areas: Barriers between different levels of management, departments, and shifts should be broken down. Attitudes should be changed, communication channels opened, and teamwork promoted. Multifunctional teams can be used for better collaboration. 10. Eliminate Exhortations for the Work Force: Setting goals without providing specific methods for improvement can hinder progress. Achievable goals should be set and committed to the long-term success of the organization. Tools and methods should be available for making improvements. 5 11. Eliminate numerical quotas and management by objective: Quotas and numerical goals focus on quantity rather than quality. Instead, methods for improvement should be implemented, and management should understand the capabilities of processes. 12. Remove Barriers That Rob People of Pride of Workmanship: Barriers to pride in workmanship include workers not understanding the organization's mission, being blamed for system problems, poor designs, inadequate training, punitive supervision, and inadequate equipment. Management should provide clear job descriptions, proper tools, and materials to restore pride. 13. Encourage Education and Self-Improvement for Everyone: Continuous education and training are essential for the organization's success. Management should commit to training and retraining employees based on the organization's goals and the changing environment. 14. Take Action to Accomplish the Transformation: Management bears the primary responsibility for continuous improvement. They should create a corporate structure to implement the philosophy, embrace a new culture, and be committed, involved, and accessible. Examples of successful implementation can be seen in companies like Hillerich & Bradsby Co. By following these principles, organizations can improve their overall performance, quality, and customer satisfaction. Quality Councill A quality council is a group of people within an organization who are responsible for directing and driving quality improvement efforts. The council is made up of key individuals, including the CEO and senior managers from various functional areas like design, marketing, finance, production, and quality. They may also include a coordinator or consultant, and sometimes a representative from a union if applicable. 6 The coordinator plays a crucial role in the council. They help build trust, communicate team needs to the council, share council expectations with the teams, and provide progress updates to the council. The coordinator also ensures that teams are empowered and aware of their responsibilities. They assist team leaders, facilitate knowledge sharing among teams, and hold regular meetings with leaders. The specific duties of a quality council typically include: 1. Developing core values, vision statement, mission statement, and quality policy statement with input from all employees. 2. Creating a long-term strategic plan with goals and an annual quality improvement program with objectives. 3. Designing a comprehensive education and training plan for employees. 4. Determining and monitoring the cost of poor quality. 5. Establishing performance measures for the organization and its functional areas, and monitoring them. 6. Identifying projects that improve processes and enhance customer satisfaction. 7. Establishing and monitoring the progress of multifunctional project teams and departmental or work group teams. 8. Establishing or revising a recognition and reward system to align with the organization's new approach to quality. In larger organizations, quality councils may also be formed at lower levels of the corporation to focus on specific areas. Over time, as the organization's quality improvement program becomes ingrained in its culture, the activities of the quality council may become a regular part of executive meetings. At this stage, a separate quality council may no longer be necessary, as quality becomes an integral part of the executive agenda. Assumptions of a Quality Council: 7 1. Quality-oriented culture. 2. Role as a driver for Total Quality Management (TQM). 3. Inclusion of key stakeholders. 4. Importance of two-way communication and trust. 5. Continuous improvement mindset. 6. Strategic planning and goal setting. 7. Performance measurement and monitoring. 8. Cross-functional collaboration. 9. Recognition and reward system. 10. Integration with executive meetings. 8