Summary

2.1

Updated April-09

Lecture Notes

Chapter 2 Managing & Leading Enterprise

Excellence

ENTERPRISE EXCELLENCE

2.2

Updated April-09

Learning Objectives

• Management Systems

• Leading Enterprise Excellence

• Understanding and Overcoming Resistance

to Change

2.3

Updated April-09

MANAGEMENT SYSTEMS

• A management system is your philosophy of managing the organization, the staff, the processes, and the procedures

• It describes how you do business and deploy requirements throughout the organization

• It guides an organization through a set of processes that ensure a structured, logical approach to managing the organization

• ISO 9000 is the most commonly used international standard. It provides a framework for an effective quality management system

2.4

Updated April-09

Basic QMS Requirements

• Documented processes and procedures with controls that are fully implemented

• An organizational structure with defined management roles, responsibilities, and accountability

• A method to communicate and propagate the management system throughout organization

• A process for decision making • Commitment to continuous measurable improvement • Many standardized systems are:

 Voluntary (e.g., ISO 900 I:2000)  Regulatory requirements (e.g., FDA, EPA, etc.)  Specifically designed for the organization

2.5

Updated April-09

Management System Principles

1. Customer focus

2. Leadership

3. People Engagement / Involvement

4. Process approach

5. Systems approach

6. Continuous measurable improvement

7. Fact-based decision making

8. Mutually beneficial supplier relationships

2.6

Updated April-09

LEADING ENTERPRISE EXCELLENCE

• A leader motivates others to action. It is the motivation of others and their actions that define a successful leader.

• As a leader, your focus is on accomplishing the Vision, whether the activity is personal, community-oriented, charitable organization, business setting, political party, or industrial entity.

• Leaders focus on the future and move in a progressive direction. The leadership vision is a view of the near and far future shared with the team.

2.7

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LEADING ENTERPRISE EXCELLENCE

• A competent, respected, and successful leader need to understand how Principles and Traits mesh with personal values

2.8

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Leadership Principles

1. Integrity 2. Effective communication 3. Responsibility, accountability, and authority 4. Positive mental attitude 5. Consideration and respect 6. Constancy of purpose 7. Teamwork 8. Effective resource management 9. Fact-based decision making

2.9

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Leadership Traits

1. Controlled emotions 2. Adaptability 3. Initiative 4. Courage 5. Determination, resolution 6. Ethical behavior 7. Sound judgment 8. Endurance 9. Desire 10. Dependability

2.10

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The Leadership Culture

• A leadership culture is the pattern of actions and norms that are recognized in an organization to influence people, establish goals, perform planning, and make decisions.

• A culture indicates how people perceive and feel about their organization, its infrastructure, and its leadership.

• The leadership culture is how the formal and informal way work gets done.

• The leadership culture is tangible. You can feel it, taste it, hear it, and maybe read about it in an organization, And you can measure it by its results.

2.11

Updated April-09

The Leadership Culture

• The most effective method to assess culture is to conduct a survey- verbal or written, formal or informal. The following questions are typical of a survey:  What is your leadership path?  What must you accomplish to succeed?  What is expected of you?  What are the taboos?  What are the rivalries?  Who holds the power?  How do you get ahead?  How do you stay out of trouble?  What does this culture really value?  What skills are needed to win?

2.12

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The Leadership Model

• Achieving the vision as a leader occurs by following a clear path. That path is the leadership model shown in Figure 2.1, which builds on the basic leadership principles, traits, and skills acquired through education, training, and experience.

2.13

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UNDERSTANDING & OVERCOMING

RESISTANCE TO CHANGE

• Communication, Cooperation, and Coordination are the three strategies that a leader will need to win over the leadership team, gain followers, and overcome resistance, overt or covert.

2.14

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Understanding Resistance to Change

• To anticipate what form resistance might take, leaders need to understand its most common causes of resistance:

 Narrow-minded motivation

 Lack of understanding and confidence

 Different analysis of leadership needs

 Low tolerance for change

2.15

Updated April-09

Overcoming Resistance to Change

• There are several strategies to overcome resistance.

• The 3C approach, is always the most successful and desirable

• Negotiating and agreement, a strategy used in many environments which can be successfully implemented

• Manipulation, the least desirable, can provide only short-term gains.

• If none of these work, termination may be in order.

2.16

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Overcoming Resistance to Change

2.17

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The 3Cs: Communication, Cooperation, &

Coordination

• This is the most effective method for dealing with potential resistance to change

2.18

Updated April-09

Negotiation and Agreement

• This method is frequently used throughout industry. • Changes in work rules, benefits, and productivity can

be balanced with higher wages, early retirement, and production incentives.

• Negotiation is an effective way of dealing with change, when there is clearly someone who will lose and when that individual has the power to resist.

• Negotiating agreements can be an easy way to overcome resistance, but, like other processes, this can be time-consuming and expensive. This strategy is:  Used with employees who have power to resist change  Used to avoid major causes of resistance  Expensive in time, cost, and assets

2.19

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Manipulating and Co-opting

• Manipulation, in this context, involves selective use of information and the conscious structuring of events

• Co-opting an individual usually involves giving the person a role in the design or implementation of change

• The manipulation and co-opting strategy is:  Used when other strategies have not worked

 Used when change is urgent, and there is insufficient time to implement the first two strategies

 Not preferred because it can lead to future problems with personnel

2.20

Updated April-09

Coercion and Termination

• Sometimes managers must deal with resistance coercively. They must force people to accept change by explicitly or implicitly threatening them with loss of jobs, promotion, position, or authority.

• This strategy is:  A last resort when all other strategies have failed  Able to overcome all sources of resistance very quickly  Very risky, because it always damages the trust bond

and leaves people angry and alienated  One that almost always leads to the necessity to

terminate an employee

2.21

Updated April-09

• In this chapter, we have learned the following:

 Management Systems

 Leading Enterprise Excellence

 Understanding and Overcoming Resistance to Change

Wrap-up