In my previous article entitled: TQM Implementation -- Who drives TQM initiatives. I compared the role of the CEO of the company who implement TQM and CEO of Baldirge winners who are successful implementing TQM in their companies. What is Malcom Baldrige and is there any similarity with TQM? Well, there are many common management principles between the two. To appreciate that, readers is encouraged to understand the Core Values and Concepts used in the Baldrige Criteria and compare them with TQM principles. I have worked with several companies who have adopted the Baldrige Criteria as a benchmark. For the purpose of this article, I will articulate the eleven core values and concepts used in Malcolm Baldrige Criteria. And I will use case studies to show how some of the companies implement the Visionary Leadership. Below are the Eleven Core Values and Concepts of Baldrige Criteria:- Visionary Leadership | Customer-Driven Excellence | Organizational and Personal Learning | Valuing Employees and Partners | Agility | Focus on the Future |Managing for Innovation | Management by Fact | Public Responsibility and Citizenship | Focus on Results and Creating Value | Systems Perspective Articulated Visionary Leadership Senior leaders should set direction, clear and visible values, and high expectations that would balance the needs of all stakeholders. Senior Leaders should also create a customer focus and ensure the creation of strategies, systems and method for achieving excellent performance. Senior leaders should create a learning environment that motivates its employee for creation, innovation and continuous improvement. Case Study on Visionary Leadership At the corporate level, there is a clear direction set for all companies to create capital values to shareholders and Operation Excellence. Capital Values are prescribed in terms of Investment Discipline and Financial Discipline with respective businesses. Clear Performance Expectations in the form of Key Performance Indicators (KPI) in these capital values are set and agreed during the annual Business Plan and Budget. Some of the KPI s are Return of Shareholder Fund (ROSF) and Investment Yield Return (IYR) Investment Discipline. Examples of KPI for Financial Discipline are Working Capital. Operation Excellence is prescribed in term of four distinct Area of Focus. They are:- Control of Market, Processes, Technology and Human Capital. Due to its diversity in businesses in the group, KPI for these four Key Performance Area is set during the Business Plan and Budget for each individual company depending on their potential business future. Nevertheless, all Operational Excellence KPI would be expected to be of global standards that are competitive with global players. AT company level, CEO sets strategies to achieve the Capital Values while Operating Mangers of its companies sets strategies and system to achieve Operation Excellence KPI. Each of them, though in the same company has distinct role in meeting the corporate expectations. Issues with Visionary Leadership Directions are well set at corporate and company level, they are communicated. However, not all level of employee understood the objectives of these expectations and hence not fully subscribe to them. Some of the common KPI not received full support is Capital Value related KPI Opportunity for Improvement A) Effective communication seems to be one of the solutions to the problem. Besides communicating the KPI, rationale to these KPI should be provided at the appropriate level of employees. To be effective, the number of communicator should be limited to ensure consistency in the communication. B) Since all KPI for Operation Excellence are far fetching and to a certain extend, unreasonable. Involvement of the appropriate level of employee (departmental heads) should make effective and timely. After these KPI is set, strategies should be developed together with the departmental heads so that they are contributed to the effort in achieving the KPI.. In summary, having understood the Visionary Lerdership in Values and Concepts of Malcolm Baldrige, Leaders might benchmark their CEO of Baldrige Winners on their TQM successes in this value. My next article will articulate the next Core Vlaues and Concepts in Customer-Driven Excellence ---------------------------------------------------------------- Disclaimer All rights reserved. This article is written by the author based on his practical application experience. All definitions and interpretation of terminology are his point of view and has it has no intention to conflict with experts in similar topic. The author holds no responsibility for the use of this article in any way. Full Baldrige Criteria are available at http://www.nist.gov/quality ----------------------------------------------------------------- Free to reprint or re-publish All rights reserved. You are free to reprint or re-publish this article as long as you include my resource box at the end of this article. And ensure that the URL in the resource box remained intact and it is linked to the author's website. ----------------------------------------------------------------- |
