Certificate No.

AJA19-0226

FIN 421 Total Quality Management

MW 9:00am – 10:30am

Title:
policy, strategy and goal deployment

Topic:

Integrating TQM into the policy and strategy

There are six basic steps for achieving this and providing a good foundation for the implementation of TQM.

 Step 1 – Develop a shared vision and mission for the business/organization.

 Step 2 – Develop the mission into its critical success factors (CSFs) to coerce and move it forward.
 Step 3 – Define the key performance outcomes as being the quantifiable indicators of success in terms of the
mission and CSFs.
 Step 4 – Understand the core process and gain process sponsorship.
 Step 5 – Break down the core processes into sub processes, activities and form improvement teams around
these.
 Step 6 – Ensure process and people alignment through a policy deployment or goal translation process.

Step 1 - Develop a shared vision and mission for the business/organization.

Once the top team is

reasonably clear about the direction
the organization should be taking it
can develop mission and vision
statements that will help to define
process-alignment, roles and
responsibilities. This will lead to a co-
ordinate flow of analysis of processes
that crosses and traditional
functional areas at all levels , without
changing formal structures, titles,
and systems which can create
resistance.

LEADERSHIP POLICY STRATEGY

Figure 4.1 Vision framework for an organization

the mission statement is:

 An expression of the aspiration of the organization;

 The touchstone against which all action or proposed actions can be judged;
 Usually long term;
 Short term if the mission survival.

Typical content includes a statement of:

 The role of contribution of the business or unit – for example, profit generator, service department,
opportunity seeker;
 The definition of the business – for example the needs you satisfy or the benefits you provide. Do not be too
specific or too general;

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Excellence Integrity Accountability
 Certificate No. AJA19-0226

 Your distinctive competence – this should be a brief statement that applies only to your specific unit. A
statement , which could apply equally to any organization, is unsatisfactory;
 Indications for future direction – a brief statement of the principal things you would give serious
consideration to.

Some questions that may be asked of a mission statement are, does it:

 Define the organization’s role?

 Contain the need to be fulfilled:
 Is it worthwhile/admirable?
 Will employees identify with it?
 How will it be viewed externally?
 Take a long term view, leading to, for example, commitment to a new product service development, or
training of personnel?
 Take into account all the stakeholders of the organization?
 Ensure the purpose remains constant despite changes in top management?

Step 2 – Develop the ‘mission’ into its critical success factors (CSFs) to coerce and
move it forward.

The development of the mission is clearly not enough to ensure its implementation. This is the ‘danger gap’
which many organizations fall into because they do not foster the skills needed to translate the mission through its
CSFs into core processes.

The CSFs may now defined – what the organization must accomplish to achieve the mission, by examination and
categorization of the impacts. This should lead to a balanced set deliverables for the organization in terms of:

 Financial and financial performance;

 Costumer/market satisfaction;
 People/market satisfaction;
 Environmental/societal satisfaction.

Some examples of CSFs may clarify that understanding:

 We must have right-first-time suppliers.

 We must have motivated, skilled workers.
 We need new products that satisfy market needs.
 We need new business opportunities.
 We must have best-in-the-field product quality.

Senior manager in large complex

organization may find it necessary or
useful to show the interaction of
divisional CSFs in an impact matrix.

Figure 4.2 Interaction of corporate

and divisional CSFs

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Excellence Integrity Accountability
 Certificate No. AJA19-0226

Step 3 – Define the key performance outcomes as being the quantifiable indicators
of success in terms of the mission and CSFs

The mission and CSFs provide the what of the organization,

but they must be supported by measurable key performance
outcomes (KPO) that are tightly and inarguably linked. The KPOs will
be used to monitor progress and as evidence of success for the
organization, in every direction, internally and externally.

Each CSFs should have an ‘owner’ who is a member of the

management team that agreed the mission and CSFs.

 Define and agree the KPOs and associated targets;

 Ensure that appropriate data is collected and recorded;
 Monitor and report progress towards achieving the CSF
(KPOs and targets) on a regular basis;
 Review and modify the KPOs and targets where appropriate.

A typical CSF data sheet for completion by owners is shown in

Figure 4.3.

Figure 4.3 CSF Data Sheet

Step 4 – Understand the core process and gain process sponsorship

The core business processes describe what usually is or needs to be done so that the organization meets its
CSFs. As with the CSFs and the mission each process which is necessary for a given CSF must be identified, and
together the processes listed must be sufficient for all the CSFs to be accomplished. To ensure that processes are
listed, they should be in the form of verb plus object, such as research the market, recruit competent staff, or
manage supplier performance. The core processes identified frequently run across ‘departments’ or functions, yet
they must be measurable.

Each core process should have a sponsor,

preferably a member of the management team that
agreed the CSFs.

The task of a sponsor is to:

 Ensure that appropriate resources are made

available to map. Investigated and improve the
process;
 Assist in selecting the process improvement
team leader and members;
 Remove block of the team’s progress;
 Report progress to the senior management
team.

Figure 4.4 Process/CSF Matrix

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Excellence Integrity Accountability
 Certificate No. AJA19-0226

Step 5 – Break down the core processes into sub processes, activities and tasks
and form improvement teams around these

Once the organization has defined and mapped out the core processes, people need to develop the skills to
understand how the new process structure will be analyzed and made to work. The very existence of a new process
teams with goals and responsibilities will force the organization into a learning phase. The changes should poster
new attitudes and behaviors.

An illustration of the breakdown from

mission through CSFs and core
processes, to individual tasks may
assist in understanding the process
required.

Figure 4.5
Breakdown of core processes into sub
processes, activities and tasks.

Provide the consultancy, training and facilitation necessary to assist with

Mission making continuous improvement an integral part of our customers business
strategy

Critical Success Factor We need a high level of awareness

Core Process Promote, advertise, and communicate the company’s business capability

Subprocesses
v
Prepare the company’s information pack

Activity
Prepare one of the subject booklets, i.e. ‘Business Excellence and Self-
Assessment’.

Task
Write the detailed leaflet for a particular seminar, e.g. one or three day
seminars on self assessment.

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Excellence Integrity Accountability
 Certificate No. AJA19-0226

Individuals, tasks and teams – having broken down the processes into sub processes, activities and tasks in this way;
it is now possible to link this with the Adair model of action-centered leadership and teamwork.

Performance measurement and metrics – once the processes have been analyzed in this way, it should be possible to
develop metrics for measuring the performance of the processes, sub processes, activities, and tasks. These must be
meaningful in terms of the inputs and outputs of the processes, and in terms of the customers and suppliers to the
processes.

It is hoped that this illustration will help the reader to:

 Understand the breakdown of processes into sub processes, activities and tasks.
 Understand the links between the process breakdowns and the task. Individual and team concepts.
 Link the hierarchy of processes with the hierarchy of quality teams.
 Begin to assemble a cascade of flowcharts representing the process breakdowns, which can form the basis of
the quality management system and communicate what is going on throughout the business.
 Understand the way in which metrics must be developed to measure the true performance of the processes,
and their links with the customers, suppliers, inputs and outputs of the processes.

Step 6 – Ensure process and people alignment through a policy deployment or

goal translation process.

One of the key to integrating excellence into the business strategy is a formal ‘goal translation’ or ‘policy
deployment’ process. If the mission and measurable goals have been analyzed in terms of critical success factors and
core processes, then the organization has begun to understand how to achieve the mission.

Figure 4.7 The goal translation process in practice

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Excellence Integrity Accountability
 Certificate No. AJA19-0226

Deliverables

The deliverables after one planning cycle of this process in a business will be:

1. An agreed framework for policy/goal deployment through the business.

2. Agreed mission statement for the business and, if required, for the business units/division.
3. Agreed critical success factors CSFs with ownership at top team level for the business units/division.
4. Agreed key performance outcomes KPOs with the targets throughout the business.
5. Agreed core business processes, with sponsorship at top level.
6. A corporate CSF/business unit CSF matrix showing the impacts and the first ‘what’s/how’s ‘deployment.
7. A what/how CSF/process matrix approach for deploying the goals into the organization through process
definition, understanding, and measured improvement at the business unit level.
8. Focused business improvement, linked back to the CSFs, with prioritized action plans and involvement of
employees.

Strategic and Operational Planning

The strategic and operational process describes;

 Provide the senior management team with the means to manage the organization and strengths and
weakness through the change process.
 Allow the senior management team members to have a clear understanding and to achieve agreement on
the strategic direction, including vision and mission.
 Identify and document those factors critical to success (CSFs) in achieving the strategic direction and the
means by which success will be measured (KPOs) are targeted.
 Identify, document and encourage ownership of the core process that drive the business.
 Reach agreement on the priority processes for action by process improvement teams, incorporating current
initiatives into an overall, cohesive framework.
 Provide a framework for successfully deploying all goals and objectives through all organizational levels
through a two-way ‘catch-ball’ process.
 Transfer the skills and knowledge necessary to sustain the process.

The Deployment of Policies and Strategies

Some common themes emerge fewer than six headings:

 Costumer/market
 Shareholders/major stakeholders
 People
 Processes
 Partners/resources
 Society

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Excellence Integrity Accountability