Lecture The management and control of quality - Chapter 9: Building and sustaining performance excellence in organizations

Chapter 9 - Building and sustaining performance excellence in organizations. This chapter presents the following content: Building and sustaining performance excellence in organizations, why adopt a performance excellence philosophy? Selling the TQ concept learn to think like top executives, organizational culture and performance excellence,...

Introduction

A total quality strategy requires significant  changes in organization design, process,  and culture.

• Ensure that efforts won’t 

be undercut by corporate  accounting principles

• Develop allies, both  internal and external

• Develop metrics for return 

on quality

• Never stop selling quality

 Corporate culture  is a company’s  value system and its collection of  guiding principles

importance

mission and vision statements

Organizational Culture & TQ

Culture is reflected by the management policies  and actions that a company practices. Therefore,  organizations that believe in the principles of total  quality are more likely to implement the practices  successfully. Conversely, actions set culture in 

motion. As total quality practices are used 

routinely within an organization, its people learn to  believe in the principles, and cultural changes can  occur.

 Management by fact

 Social responsibility

 Focus on results and creating value

 Systems perspective

Cultural Change

Impatient managers often seek immediate cultural  change by adopting off­the­shelf quality programs  and practices, or by imitating other successful 

organizations. In most cases, this approach is 

setting themselves up for failure.

Implementing Total Quality: Key Players

Developing Positive Quality Culture­­ Five Key Behavior

Change Management

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 —  What’s in it for  me?

from strategic objectives, which are generally externally focused and relate to significant 

Contrasts

 Structural elements block change

 Goals set too low

 “Command and control” organizational culture

 Senior management not personally and 

visibly committed

 Overemphasis on teams for cross­functional 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

Peter Senge

… an organization that is continually  expanding its capacity to create its  future.

adaptive learning & generative learning

David Garvin

… an organization that is skilled at creating, acquiring, and transferring knowledge, and 

 Learning from the experiences and 

best practices of others

 Transferring knowledge quickly and  efficiently throughout the organization 

Self­Assessment Process

Self­assessment should identify both strengths  and opportunities for improvement, creating a 

basis for evolving toward higher levels of 

performance.  Thus, a major objective of most  self­assessment projects is the  improvement of 

identified by the evaluation.

Self­Assessment Results

 Many organizations derive little benefit from conducting self­assessment and achieve 

Importance of Follow­up

Following up requires senior leaders to engage in  two types of activities:  action planning  and  

subsequently  tracking implementation  progress.

Leveraging Self­Assessment  Findings

 Committed leadership

 Integration with existing initiatives, business strategy, and performance measurement