Chapter 6

1. Chapter 6 Leadership and Strategic Planning Slide 6.1

2. Session Overview • Leadership • Effective leadership skills • Leading leadership practices • Leadership theories • Strategic planning process

3. Session Overview cont… • The learner should be able to: • Define leadership • List two effective leadership skills • Identify one leadership theory • Describe the purpose of a mission statement

4. Leadership • Leadership Leadership is the ability to positively influence people and systems under one’s authority to have a meaningful impact and achieve important results • Leader create clear & visible quality values, and integrate these values into the organizations strategy Slide 6.2

5. Effective Leadership Skills Five effective leadership skills: • Vision • Executive who manages for the future • Empowerment • Leader who encourages employees to participate in quality improvement efforts • Intuition • Leaders who use intuition to make difficult decisions • Self-understanding • Leaders who identify relationships with themselves, the organization, and employees • Value congruence • Leaders integrate their values into a company’s management system Slide 6.3

6. Leading Leadership Practices • Create strategic vision and quality values • Create and sustain leadership system and environment for quality excellence • Set high expectations • Demonstrate personal commitment and involvement in quality Slide 6.4

7. Leading Leadership Practices cont… • Integrate quality values into daily leadership and management • Integrate societal responsibilities and community involvement Slide 6.5

8. Leadership Theories • Trait approach • Discovering how to become a leader by examining the characteristics of recognized leaders • Behavioral approach • Determine type of leadership behavior that leads to successful task performance • Theory X • Manager believes that subordinates must be coerced and controlled in order to obtain high productivity • Theory Y • Manager assumes that employees are self-motivated to perform their best work Slide 6.6

9. Leadership Theories cont… • Contingency (situational) approach • Effective leadership depends on situational factors that may change over time • Role approach • Leaders perform certain sets of behaviors depending on situational factors Slide 6.7

10. Leadership System • Refers to how decisions are made, communicated, and carried out at all levels • Effectiveness of leadership system depends in part on its organizational structure Slide 6.8

11. Strategic Planning “A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.” Formal strategy includes: • Goals to be achieved • Policies to guide or limit action • Action sequences, or programs, that accomplish the goals Slide 6.9

12. Tasks Accomplished by Strategic Planning • Understand important customer and operational requirements • Optimize use of resources and ensure bridging between short-term and longer-term requirements • Ensure that quality initiatives are understood at all organizational levels • Ensure that work organizations and structures will facilitate accomplishment of strategic plan Slide 6.10

13. Leading Practices - Strategic Planning • Active participation of top management and employees • Strategy driven by customer wants and needs • Supplier involvement in planning process • Well-established planning systems for strategy development and deployment Slide 6.11

14. Mission Vision Guiding Principles Gap Analysis Strategic Goals Strategies Objectives Strategic Planning Process Slide 6.12

15. Strategic Planning Process • Mission • Why are we in business • Example: “To engineer, produce, and market the world’s finest automobiles, known for uncompromised levels of distinctiveness, comfort, convenience, and refined performance” - Cadillac • Vision • Describes where the organization is headed • Example: Alcoa is a growing worldwide company dedicated to excellence through quality – creating value for customers, employees, and shareholders through innovation, technology, and operational expertise Slide 6.13

16. Strategic Planning Process • Guiding Principles • Guide the journey of the vision by defining attitudes & policies for all employees. • Example: PepsiCo’s shared values are diversity, integrity, honesty, teamwork, accountability, and balance (respecting individuals choice to achieve professional and personal balance in life • Goals • Broad statements that set the direction for the organization to take in realizing its mission • Strategies • Key actions toward achieving goals Slide 6.14

17. Transfer of Learning Questions Define leadership Answer - ability to positively influence people and systems under one’s authority to have a meaningful impact and achieve important results List two effective leadership skills Answer – vision, empowerment, intuition, self understanding, and value congruence

18. Transfer of Learning Questions cont… Identify one leadership theory Answer – trait approach, behavior approach, contingency approach, & role approach Describe the purpose of a mission statement Answer – Describes why the organization is in business