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Total Quality Management Application to Business & Public Sector (Ekaterina Kuznetsova)

State University - Higher School of Economics & Institute for Policy and Program Evaluation. Total Quality Management Application to Business & Public Sector (Ekaterina Kuznetsova) Colloquium

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Total Quality Management Application to Business & Public Sector (Ekaterina Kuznetsova)

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  1. State University - Higher School of Economics & Institute for Policy and Program Evaluation Total Quality Management Application to Business & Public Sector (Ekaterina Kuznetsova) Colloquium «Program and Policy Evaluation: Methodology and Application» Moscow, 23. November 2006 www.hse.ru www.iopp.ru

  2. Contents Case-studies: • TQM in Business • TQM in Public Sector

  3. TQM in BUSINESS

  4. The EFQM Excellence Award is given when the Juryidentifies anexceptional organisation with excellent andsustainable results across all areas, and demonstrates ahighly effective, efficient and continuously improvedmanagement system

  5. Insight: People Development and Involvement at CCINCA • CCINCA, a 2005 EFQM Excellence Award Finalist, sets an example with a structured people management system with the objective of improving customersand results orientation. • CCINCA has managed to achieve a culture of improvement and trust.

  6. Goal: to change and to modernize the management system to cope with new competitive challenges • Objective: to be a public company managed as a private one with strong customer and results orientation • Implementation: people development and involvement + improvement of people management system

  7. KEY SUCCESS FACTOR Implementation of a structured people management system

  8. The main elements of the system (1) • HR policy which gives the orientations; • A competence development and training process; • An internal communication process; • An empowerment process; • An evaluation and recognition process

  9. The main elements of the system (2) A set of assessment tools • annual EFQM self-assessment; • annual employee satisfaction survey; • manager satisfaction survey; • key performance indicators for each HR process; • an annual service contract review with directors; • some online surveys for training and communication

  10. Results achieved • Deployment of the annual individual appraisal interview throughout the group, one part concerning skills and another part concerning performance. • Recognition, through financial and non financial rewards, linked to individual achievement of objectives. • 100% employees involvement in the improvement programme. • Creation of a culture of improvement that is reinforced by the deployment of improvement process and assessment tools in each of the activities. • Increased of the training budget to around 6% of the payroll and structure of the training processes to improve employee satisfaction with training.

  11. Do: • Get your top management committed to people development and convinced that the implementation of a people management system is a key factor in the global performance; • Work closely with managers and employees on the design of new HR tools to understand their needs and to provide everyone with a clear understanding of the project goals and objectives; • Take the time to deploy the tools progressively; • Empower your managers through the use of new HR tools; • Regularly review the effectiveness of the system in assessing the satisfaction of employees and managers; • Take the time to communicate on the project at all levels; • Ensure training and coaching for managers and their teams.

  12. Don’t: • Don’t deploy a new tool for all employees at the same time: take the time to test; • Don’t start the implementation of a new tool using criteria which have not been worked out by the employees and the managers themselves; • Don’t forget to review; • Don’t hesitate to coach people if difficulties are encountered

  13. TQM in Public Sector

  14. DOES IT WORK?

  15. Current political context of government • focus on short-term activities that do not fundamentally change systems (emphasis on the quick fix) • crisis driven rather than preventative • driven by current economic conditions rather than long-term conditions • characterized by mistrust between political and civil service arms of government • top-down decision making prevalent • highly adversarial positions of political parties

  16. The Pennsylvania Department of Transportation’s Quality Program

  17. Revitalization = complete overhaul of poorly performing publicorganizations into high-performance organizations Because of declines in service delivery, inadequate funding, cutbacks, low morale, lack of management capacity, lack of a sense of mission, loss of political support and public credibility

  18. Two Decades of Quality Management at PENNDOT, 1982-2002

  19. Two Years of Innovation and Change at PENNDOT, 1999-2001

  20. Thank You

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