DEFINITION OF LEADERSHIP rather than “If it isn’t broke, don’t fix it.

” There is
always room for improvement, even if the
According to James MacGregor Burns, he
improvement is small. Major breakthroughs
describes a leader as one who instills
sometimes happen, but it’s the little ones that
purposes, not one who is controlled by brute
keep the continuous process improvement on
force. A leader strengthens and inspires the
a positive track.
followers to accomplish shared goals. Leaders
shape the organization’s values, promote the 4. They emphasize prevention. “An ounce of
organization’s values, protect the prevention is worth a pound of cure” is certainly
organization’s values and exemplify the true. It is also true that perfection can be the
organization’s values. enemy of creativity. We can’t always wait until
we have created the perfect process or
According to Daimler Chrysler’s CEO Bob
product. There must be a balance between
Eaton, he defines a leader as “. . . someone
preventing problems and developing better, but
who can take a group of people to a place they
not perfect, processes.
don’t think they can go.” “Leadership is we, not
me; mission, not my show; vision, not division; 5. They encourage collaboration rather than
and community, not domicile.” competition. When functional areas,
departments, or work groups are in
According to Narayana Murthy, Chairman
competition, they may find subtle ways of
and Chief Mentor of Infosys “A great leader
working against each other or withholding
is one who is not only good in creating vision,
information. Instead, there must be
creating the big picture, but also ensuring that
collaboration among and within units.
he goes into the nitty-gritty, into the details of
making sure that his vision is actually 6. They train and coach, rather than direct
translated into reality through excellence of and supervise. Leaders know that the
execution. development of the human resource is a
necessity. As coaches, they help their
CHARACTERISTICS OF QUALITY LEADERS
subordinates learn to do a better job.
There are 12 behaviors or characteristics that
7. They learn from problems. When a
successful quality leaders demonstrate.
problem exists, it is treated as an opportunity
1. They give priority attention to external rather than something to be minimized or
and internal customers and their needs. covered up. “What caused it?” and “How can
Leaders place themselves in the customers’ we prevent it in the future?” are the questions
shoes and service their needs from that quality leaders ask.
perspective. They continually evaluate the
8. They continually try to improve
customers’ changing requirements.
communications. Leaders continually
2. They empower, rather than control, disseminate information about the TQM effort.
subordinates. Leaders have trust and They make it evident that TQM is not just a
confidence in the performance of their slogan. Communication is two way—ideas will
subordinates. They provide the resources, be generated by people when leaders
training, and work environment to help encourage them and act upon them.
subordinates do their jobs.
For example, on the eve of Desert Storm,
3. They emphasize improvement rather than General Colin Powell solicited enlisted men
maintenance. Leaders use the phrase “If it and women for advice on winning the war.
isn’t perfect, improve it” Communication is the glue that holds a TQM
organization together.
9. They continually demonstrate their 5. People trust their gut reaction more than
commitment to quality. Leaders walk their statistical data.
talk—their actions, rather than their words,
6. People distrust a leader’s rhetoric if the
communicate their level of commitment. They
words are inconsistent with the leader’s
let the quality statements be their decision-
actions.
making guide.
Stephen R. Covey made the 7 Habits of
10. They choose suppliers on the basis of
Highly Effective People because he believed
quality, not price. Suppliers are encouraged
that the way we see the world is based only on
to participate on project teams and become
our own belief or perception. The 7 Habits are
involved. Leaders know that quality begins with
in harmony with a natural law that Covey calls
quality materials and the true measure is the
the “P/PC Balance.”
life-cycle cost.
Where:
11. They establish organizational systems
to support the quality effort. At the senior P stands for production of desired results
management level, a quality council is
provided, and at the first-line supervisor level, PC stands for production capacity, the ability or
work groups and project teams are organized asset.
to improve the process. THE 7 HABITS OF HIGHLY EFFECTIVE
12. They encourage and recognize team PEOPLE
effort. They encourage, provide recognition, Stephen R. Covey has based his foundation for
and reward individuals and teams. Leaders success on the character ethic—things like
know that people like to know that their integrity, humility, fidelity, temperance,
contributions are appreciated and important. courage, justice, patience, industry, simplicity,
This action is one of the leader’s most powerful modesty, and the Golden Rule.
tools.
The personality ethic—personality growth,
LEADERSHIP CONCEPTS communication skill training, and education in
In order to become successful, leadership the field of influence strategies and positive
requires an intuitive understanding of human thinking—is secondary to the character ethic.
nature, the basic needs, wants, and abilities of What we are communicates far more
people. To be effective, a leader understands eloquently than what we say or do.
that people: Paradigm is the way we perceive, understand,
1. People, paradoxically, need security and and interpret the world around us. It is a
independence at the same time. different way of looking at people and things.

2. People are sensitive to external rewards and Habit is the intersection of knowledge, skill,
punishments and yet are also strongly self- and desire. Knowledge is the what to do and
motivated. the why; skill is the how to do; and desire is
the motivation or want to do.
3. People like to hear a kind word of praise.
Catch people doing something right, so you Habit 1: Be Proactive
can pat them on the back. Being proactive means, you are responsible for
4. People can process only a few facts at a your own life—the ability to choose the
time; thus, a leader needs to keep things response to a situation.
simple. Proactive behavior is a product of conscious
choice based on values, rather than reactive
behavior, which is based on feelings. Reactive ETHICS
people let circumstances, conditions, or their
Ethics is a body of principles or standards of
environment tell them how to respond.
human conduct that govern the behavior of
Proactive people let carefully thought-about,
individuals and organizations. It is knowing
selected, and internalized values tell them how
what is the right thing to do and is learned
to respond.
when one is growing up, or at a later date
Habit 2: Begin with the End in Mind during an organization’s ethics training
program. Ethics can mean something different
Don’t spend your life working aimlessly,
to different people, especially given an
tackling whatever job is at hand. Have a vision
organization’s international workforce and the
for the future and align your actions
varying cultural norms.
accordingly to make it into a reality.
Ethics, also called moral philosophy, the
Habit 3: Put First Things First
discipline concerned with what is morally good
To prioritize your work, focus on what’s and bad and morally right and wrong. The term
important, meaning the things that bring you is also applied to any system or theory of moral
closer to your vision of the future. Don’t get values or principles.
distracted by urgent but unimportant tasks.
The Root Causes of Unethical Behavior in
Habit 4: Think Win-Win organizations occurs when:

When negotiating with others, don’t try to get 1. Organizations favor their own interests
the biggest slice of the cake, but rather find a above the well-being of their customers,
division that is acceptable to all parties. You employees, or the public.
will still get your fair share, and build strong
2. Organizations reward behavior that violates
positive relationships in the process.
ethical standards, such as increasing sales
Habit 5: Seek First to Understand, Then to through false
Be Understood
advertising.
When someone presents us with a problem,
3. Organizations encourage separate
we often jump right to giving a solution. This is
standards of behavior at work than at home,
a mistake. We should first take time to really
such as secrecy and deceit
listen to the other person and only then make
recommendations. versus honesty.
Habit 6: Synergy 4. Individuals are willing to abuse their position
and power to enhance their interests, such as
Adopt the guiding principle that in a group, the
taking excessive
contributions of many will far exceed those of
any individual. This will help you achieve goals compensation for themselves off the top before
you could never have reached on your own. other stakeholders receive their fair share.
Habit 7: Sharpen the Saw (Renewal) 5. Managerial values exist that undermine
integrity, such as the pressure managers exert
Don’t work yourself to death. Strive for a
on employees to
sustainable lifestyle that affords you time to
recuperate, recharge and be effective in the cover up mistakes or to do whatever it takes to
long-term. get the job done, including cutting corners.
6. Organizations and individuals the community, and a quality philosophy.
overemphasize the short-term results at the Organizations must develop a long-term view
expense of themselves and others of at least ten years and plan to stay in
business by setting long-range goals.
in the long run; for example, behavior is good
Resources must be allocated for research,
based on the degree of utility, pleasure, or
training, and continuing education to achieve
good received,
the goals. Innovation is promoted to ensure
regardless of the effect on others. that the product or service does not become
obsolete.
7. Organizations and managers believe their
knowledge is infallible and miscalculate the 2. Learn New Philosophy. Top management
true risks, such as when and everyone must learn the new philosophy,
which is “Organizations must seek never-
financial managers invest organizational funds ending improvement and refuse to accept
in high-risk options trading. nonconformance.”
Ethics Management Program 3. Understand the Purpose of Inspection.
Ethics management program needs to address Management must understand that the
pressure, opportunity, and attitude. Managing purpose of inspection is to improve the process
ethical behavior requires commitment, new and reduce its cost.
policies and procedures, continuous 4. Stop Awarding Business Based on Price
improvement, and investments in appraisal, Alone. The organization must stop awarding
prevention, and promotion. business based on the low bid, because price
 First step is appraisal, which is the has no meaning without quality. The goal is to
analysis of the costs associated with have single suppliers for each item to develop
unethical behavior. These costs can be a long-term relationship of loyalty and trust,
divided into the three root causes of thereby providing improved products and
pressure, opportunity, and attitude. services.
 Second step is prevention, which is the 5. Improve Constantly and Forever the
development of a system that will System. Management must take more
minimize the costs. Because responsibility for problems by actively finding
management has a good idea of the and correcting problems so that quality and
appraisal costs. productivity are continually and permanently
 Third step is promotion, which is the improved and costs are reduced.
continuous advertising of ethical
behavior in order to develop an ethical 6. Institute Training. Each employee must be
organizational culture that is clear, oriented to the organization’s philosophy of
positive, and effective. commitment to never- ending improvements.
Management must allocate resources to train
THE DEMING PHILOSOPHY employees to perform their jobs in the best
This is the “14 points for Total Quality manner possible. Everyone should be trained
Management” by Dr. W. Edwards Deming. in statistical methods, and these methods
should be used to monitor the need for further
1. Create and Publish the Aims and training.
Purposes of the Organization. Management
must demonstrate constantly 7. Teach and Institute Leadership. Improving
supervision is management’s responsibility.
their commitment to the organization, including They must provide supervisors with training in
investors, customers, suppliers, employees,
statistical methods and these 14 points so the are committed to the long-term success of the
new philosophy can be implemented. organization.
8. Drive out Fear, Create Trust, and Create a 11 Eliminate Numerical Quotas, including
Climate for Innovation. Management must Management by Objective
encourage open, effective communication and
a. Eliminate Numerical Quotas for the
teamwork. Fear can be caused by lack of job
Workforce
security, possible physical harm, performance
appraisals, ignorance of organization goals, Instead of quotas, management must learn and
poor supervision, and not knowing the job. institute methods for improvement. Quotas and
Driving fear out of the workplace involves work standards focus on quantity rather than
managing for success. Management can begin quality. Management must provide and
by providing workers with adequate training, implement a strategy for never- ending
good supervision, and proper tools to do the improvements and work with the work force to
job, as well as removing physical dangers. reflect the new policies.
When people are treated with dignity, fear can
be eliminated and people will work for the b. Eliminate Management by Objective
general good of the organization. Instead of management by objective,
9. Optimize the Efforts of Teams, Groups, management must learn the capabilities of the
and Staff Areas. Management must optimize processes and how to improve them. Internal
the efforts of teams, work groups, and staff goals set by management, without a method,
areas to achieve the aims and purposes of the are a burlesque. Management by numerical
organization. Barriers exist internally among goal is an attempt to manage without
levels of management, among departments, knowledge of what to do.
within departments, and among shifts. 12. Remove Barriers that Rob People of Pride
Externally, they exist between the organization of Workmanship. Loss of pride in workmanship
and its customers and suppliers. These exists throughout organizations because (1)
barriers exist because of poor communication, workers do not know how to relate to the
ignorance of the organization’s mission, organization’s mission, (2) they are being
competition, fear, and personal grudges or blamed for system problems, (3) poor designs
jealousies. To break down the barriers, lead to the production of “junk,” (4) inadequate
management will need a long-term training is provided, (5) punitive supervision
perspective. All the different areas must work exists, and (6) inadequate or ineffective
together. Attitudes need to be changed; equipment is provided for performing the
communication channels opened; project required work. Restoring pride will require a
teams organized; and training in teamwork long-term commitment by management. When
implemented. Multifunctional teams, such as workers are proud of their work, they will grow
used in concurrent engineering, are an to the fullest extent of their job. Management
excellent method. must give employees operational job
10. Eliminate Exhortations for the descriptions, provide the proper tools and
Workforce. Exhortations that ask for increased materials, and stress the workers’
productivity without providing specific understanding of their role in the total process.
improvement methods can handicap an By restoring pride, everyone in the organization
organization. They do not produce a better will be working for the common good.
product or service, 13. Encourage Education and Self-
because the workers are limited by the system. Improvement for Everyone. What an
Goals should be set that are achievable and organization needs is people who are
improving with education. A long-term IMPLEMENTATION
commitment to continuously train and educate
● Begins with Management Commitment
people must be made by management.
Deming’s 14 points and the organization’s ● Senior Management should develop and
mission should be the foundation of the implementation plan
education program. Everyone should be
retrained as the organization requirements ● Formation of Quality Council
change to meet the changing environment. ● Early discussions with the Union is a must
14. Take action to accomplish the ● Communicate TQM to the entire organization
Transformation. Management has to accept
the primary responsibility for the never-ending ● Training on quality awareness and problem
improvement of the process. It has to create a solving
corporate structure to implement the ● Conducting Customer, Employee and
philosophy. A cultural change is required from Supplier surveys
the previous “business as usual” attitude.
Management must be committed, involved, ● The Council establishes the project teams
and accessible if the organization is to succeed and work groups and monitor their progress
in implementing the new philosophy. QUALITY COUNCIL
ROLE OF TQM LEADERS In order to build quality into the culture, a
Everyone is responsible for quality, especially quality council is established to provide overall
senior management and the CEO; however, direction. It is the driver for the TQM engine. 
only the latter can ● In a typical organization the council is
provide the leadership system to achieve composed of the chief executive officer (CEO);
results. the senior managers of the functional areas,
such as design, marketing, finance, production,
● Senior management has numerous and quality; and a coordinator or consultant.
responsibilities. Senior management must
practice the philosophy of Management by ● In large organizations, quality councils are
Wandering Around (MBWA) also established at lower levels of the
corporation. Their duties are similar but relate
● Ensure that the team’s decision is in to that particular level in the organization.
harmony with the quality statements of the Initially these activities will require additional
organization work by council members; however, in the long
● Senior managers must take part in award term, their jobs will be easier. These councils
and recognition ceremonies for celebrating the are the instruments for perpetuating the idea of
quality successes of the organization never-ending quality improvement. 

● Senior managers must be visibly and actively ● In general, the duties of the quality council
engaged in the quality effort by serving on are to:
terms, coaching teams, and teaching seminars. 1. Develop, with input from all personnel, the
● Senior managers must liaise with internal core values, vision statement, mission
and external customers, and suppliers through statement, and quality policy statement. 
visits, focus groups, and surveys. 2. Develop the strategic long-term plan with
● They must live and communicate with TQM. goals and the annual quality improvement
program with objectives. 
3. Create the total education and training plan. retention must be the focus of an
organization’s management system.
4. Determine and continually monitor the cost
 Organizational and Personal
of poor quality.
Learning - Achieving the highest levels
5. Determine the performance measures for of performance requires a well-executed
the organization, approve those for the approach to organizational and personal
functional areas, and monitor them. learning.
 Valuing Employees and Partners - An
6. Continually determine those projects that
organization’s success depends
improve the processes, particularly those that
increasingly upon the skills, knowledge,
affect external and internal customer
creativity, and motivation of its
satisfaction.
employees and partners.
7. Establish multifunctional project and  Agility - Success in global markets
departmental or work group teams and monitor demands agility. All aspects of e-
their progress commerce require and enable more
rapid, flexible, and customized
8. Establish or revise the recognition and
responses.
reward system to account for the new way of
 Focus on the Future - requires
doingBusiness
understanding the short- and long-term
● Once the TQM program is well established, a factors that affect an organization and
typical meeting agenda might have the the marketplace
following items:   Managing for Innovation - Innovation
means making meaningful change to
1. Progress report on teams. 
improve an organization’s products,
2. Customer satisfaction report.  services, and processes and to create
new value for the organization’s
3. Progress on meeting goals. 
stakeholders
4. New project teams.   Management by Fact - Organizations
depend on the measurement and
5. Recognition dinner. 
analysis of performance.
6. Benchmarking report.  Public Responsibility and Citizenship
- An organization’s leaders should
CORE VALUES, CONCEPT AND
stress the need to practice good
FRAMEWORK
citizenship.
UNITY OF PURPOSE IS KEY TO A  Focus on Results and Creating Value
LEADERSHIP SYSTEM - An organization’s performance
measurements need to focus on keY
 Visionary Leadership - An results.
organization’s senior leaders need to set
 Systems Perspective - Criteria for
directions and create a customer
various business excellence awards
orientation, clear and visible quality
including Malcolm Baldrige, RGNQA
values, and high expectations.
and RBNQA provide perspective for
 Customer-Driven Excellence Quality - managing an organization to achieve
is judged by customers. All product and performance excellence.
service characteristics that contribute
value to the customer and lead to Strategic Planning
customer satisfaction, preference, and
Goals and Objectives
Goals Communications
 long-term planning Deliver the organization’s values, expectations,
 are set to achieve the mission of an and directions; provide information about
organization or individual, corporate developments; and allow feedback
from all levels. It is very important to keep
Objectives information flowing back and forth between
 short-term planning. employees and various levels of management.
 are set for the accomplishment of goals.  Interactive - perhaps the most effective
Seven Steps to Strategic Planning communication allows for discussions
between the employees and their
There are seven basic steps to strategic quality supervisor, not just management talking
planning. The process starts with the principle to employees.
that quality and customer satisfaction are the  Formal it is best to supplement it with
center of an organization’s future. other communication methods to
1. Customer Needs. The first step is to reinforce the message. Formal
discover the future needs of the customers. communication can occur using the
Who will they be? Will your customer base printed page or electronics. The most
change? What will they want? How will the common printed communications are
organization meet and exceed expectations? periodic publications such as e-mail or a
weekly newsletter.
2. Customer Positioning. The planners
determine where the organization wants to be Decision Making
in relation to the customers. Do they want to - Poor decisions is one of the deadliest threats
retain, reduce, or expand the customer base? to the success of the organization and to one’s
3. Predict the Future. The planners must look career. When they act haphazardly without
into their crystal balls to predict future regard to the values and goals of an
conditions that will affect their product or organization, people fail. In order to make
service. correct decisions, it is best to use the problem-
solving method given in Chapter
4. Gap Analysis. This step requires the
planners to identify the gaps between the Leadership Survey
current state and the future state of the In order to evaluate a manager’s performance,
organization. a survey of the manager’s workers should be
5. Closing the Gap. The plan can now be taken periodically.
developed to close the gap by establishing
goals and responsibilities.
6. Alignment. As the plan is developed, it must
be aligned with the mission, vision, and core
values and concepts of the organization.
Without this alignment, the plan will have little
chance of success.
7. Implementation. This last step is frequently
the most difficult. Resources must be allocated
to collecting data, designing changes, and
overcoming resistance to change.