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Chapter 10
Leadership for Performance Excellence
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Outline
- Discuss the importance of leadership for quality
- Describe the role of leaders in performance excellence,
- Provide some examples of leaders who have inspired their organizations
- Provide examples of leadership practices
- Compare the TQ view of leadership to several prominent leadership theories
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Simon Sinek, leadership expert, speaks at ASQ's 2012 World Conference on Quality and Improvement
Importance of Leadership
- Deming’s 14 Points
Point 1. Create and publish to all employees a statement of the aims and purposes of the company or other organization. The management must demonstrate constantly their commitment to this statement.
Point 7. Teach and institute leadership.
Point 8. Drive out fear. Create trust. Create a climate for innovation.
Point 12. Remove barriers that rob people of pride in workmanship.
Point 14. Take action to accomplish the transformation.
- Driver of performance excellence in the Baldrige Award criteria
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Steve Jobs on Continuous Improvement
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Leadership Perspectives
- Vision that stimulates hope and mission that transforms hope into reality
- Radical servanthood that saturates the organization
- Stewardship that shepherds its resources
- Integration that drives its economy
- Courage to sacrifice personal or team goals for the greater community good
- Communication that coordinates its efforts
- Consensus that drives unity of purpose
- Empowerment that grants permission to make mistakes, encourages the honesty to admit them, and gives the opportunity to learn from them
- Conviction that provides the stamina to continually strive toward business excellence
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Executive Leadership
- Defining and communicating business directions
- Ensuring that goals and expectations are met
- Reviewing business performance and taking appropriate action
- 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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Roles of a Quality Leader
- Establish a vision
- Live the values
- Lead continuous improvement
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Leadership System
- The leadership system refers to how leadership is exercised, formally and informally, throughout an organization. These elements include how key decisions are made, communicated, and carried out at all levels. It includes
structures and mechanisms for decision making
selection and development of leaders and managers
reinforcement of values, directions, and performance expectations
mechanisms for leaders’ self-examination and self-improvement
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Bringing our Core Values to life: Quality – 2:10
Leadership Theory –
Mintzberg’s Model
- Interpersonal roles
Figurehead
Leader
Liaison
- Informational roles
Monitor
Disseminator
Spokesperson
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- Decisional roles
- Entrepreneur
- Disturbance handler
- Resource allocator
- Negotiator
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Consideration and Initiating Structure
- Consideration (also known as socioemotional orientation) – taking care of subordinates, explaining things to them, being approachable, and generally being concerned about their welfare.
- Initiating structure (also known as task orientation) means getting people organized, including setting goals and instituting and enforcing deadlines and standard operating procedures.
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Transformational Leadership Theory
- Inspirational motivation — providing followers with a sense of meaning and challenge in their work;
- Intellectual stimulation — encouraging followers to question assumptions, explore new ideas and methods, and adopt new perspectives;
- Idealized influence — behaviors that followers strive to emulate or mirror;
- Individualized consideration — special attention to each follower’s needs for achievement and growth.
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Transformational Leadership and TQ
- Transformational leadership is more aligned with organizational changed required by TQ and Baldrige-like performance excellence models.
An empirical research study of 371 hospitals suggested that improved patient safety is driven by CEOs who possess a transformational leadership style.
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Transactional Leadership Theory
- Premise: leaders may develop the ability to inspire their subordinates to exert extraordinary efforts to achieve organizational goals, through behaviors that may include
contingent rewards (clarification of the work required to obtain rewards to influence motivation), and
active and passive management by exception (use of contingent punishments and other corrective actions in response to deviations from acceptable performance) standards
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Situational Leadership
- Leadership styles might vary from one person to another, depending on their “readiness,” which is characterized by their skills and abilities to perform the work, and their confidence, commitment, and motivation to do it.
- Levels of readiness
Unable and unwilling
Unable but willing
Able but unwilling, and
Able and willing
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Complementary Leadership Styles
Unable and unwilling - Directing
Unable but willing - Coaching
- Able but unwilling - Supporting
Able and willing - Delegating
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Management vs. Leadership
- Management begins with planning and budgeting; leadership begins with setting a direction - a vision of the future, as well as a set of approaches for achieving the vision.
- To promote goal achievement, management practices organizing and staffing, whereas leadership works on aligning people— communicating the vision and developing commitment to it.
- Management achieves plans through controlling and problem solving, whereas leadership achieves its vision through motivating and inspiring.
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Leadership, Governance, and Societal Responsibilities
- “Good leaders give back.... It’s up to us to use our platform to be a good citizen. Because not only is it a nice thing to do, it’s a business imperative.”
– Jeffrey Immelt, General Electric
- Corporate social responsibility (CSR) is the “responsibility of enterprises for their impacts on society.”
Evidence suggests a positive relationship between CSR and business performance.
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Leadership: Power of Influence – 3:22
Organizational Governance
- Governance refers to the system of management and controls exercised in the stewardship of an organization.
- Governance processes may include approving strategic direction, monitoring and evaluating CEO performance, succession planning, financial auditing, executive compensation, disclosure, and shareholder reporting.
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Societal Responsibilities
- Safety in product design and manufacturing
- Management and security of sensitive information
- Environmental protection
- Leadership and support of publicly important purposes, such as improving education, community health, environmental excellence, resource conservation, community service, and professional practices.
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