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State University - Higher School of Economics & Institute for Policy and Program Evaluation. Total Quality Management Application to Business & Public Sector (Ekaterina Kuznetsova) Colloquium - PowerPoint PPT Presentation
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Total Quality ManagementApplication to Business &
Public Sector (Ekaterina Kuznetsova)
Colloquium «Program and Policy Evaluation: Methodology and Application»
Moscow, 23. November 2006
State University - Higher School of Economics & Institute for Policy and Program Evaluation
www.hse.ru www.iopp.ru
ContentsContents
Case-studies:Case-studies:
TQM in BusinessTQM in Business
TQM in Public SectorTQM in Public Sector
TQM in BUSINESSTQM in BUSINESS
The EFQM Excellence AwardThe EFQM Excellence Award
is given when the Juryis given when the Jury identifies anidentifies an exceptional organisation with exceptional organisation with
excellent andexcellent and sustainable results sustainable results across all areas, and demonstrates aacross all areas, and demonstrates a
highly effective, efficient and highly effective, efficient and continuously improvedcontinuously improved management management
systemsystem
Insight: People Development Insight: People Development and Involvement at CCINCAand Involvement at CCINCA
CCINCA, a 2005 EFQM Excellence CCINCA, a 2005 EFQM Excellence Award Finalist, sets an example with a Award Finalist, sets an example with a structured people management structured people management system with the objective of improving system with the objective of improving customerscustomers and results orientation.and results orientation.
CCINCA has managed to achieve a CCINCA has managed to achieve a culture of improvement and trustculture of improvement and trust..
Goal: to change and to modernize the Goal: to change and to modernize the management system to cope with management system to cope with new competitive challengesnew competitive challenges
Objective: to be a public company Objective: to be a public company managed as a private one with strong managed as a private one with strong customer and results orientationcustomer and results orientation
Implementation: people development Implementation: people development and involvement + improvement of and involvement + improvement of people management systempeople management system
KEY SUCCESS FACTORKEY SUCCESS FACTOR
Implementation of a Implementation of a structured people structured people
management systemmanagement system
The main elements of the system The main elements of the system (1)(1)
HR policy which gives the HR policy which gives the orientations; orientations;
A competence development and A competence development and training process; training process;
An internal communication process; An internal communication process; An empowerment process; An empowerment process; An evaluation and recognition An evaluation and recognition
process process
The main elements of the system The main elements of the system (2)(2)
A set of assessment toolsA set of assessment tools
annual EFQM self-assessment; annual EFQM self-assessment; annual employee satisfaction survey; annual employee satisfaction survey; manager satisfaction survey; manager satisfaction survey; key performance indicators for each HR key performance indicators for each HR
process; process; an annual service contract review with an annual service contract review with
directors; directors; some online surveys for training and some online surveys for training and
communicationcommunication
Results achieved Results achieved Deployment of the annual individual appraisal interview Deployment of the annual individual appraisal interview
throughout the group, one part concerning skills and throughout the group, one part concerning skills and another part concerning performance. another part concerning performance.
Recognition, through financial and non financial rewards, Recognition, through financial and non financial rewards, linked to individual achievement of objectives. linked to individual achievement of objectives.
100% employees involvement in the improvement 100% employees involvement in the improvement programme.programme.
Creation of a culture of improvement that is reinforced Creation of a culture of improvement that is reinforced by the deployment of improvement process and by the deployment of improvement process and assessment tools in each of the activities. assessment tools in each of the activities.
Increased of the training budget to around 6% of the Increased of the training budget to around 6% of the payroll and structure of the training processes to payroll and structure of the training processes to improve employee satisfaction with training. improve employee satisfaction with training.
Do:Do: Get your top management committed to people development Get your top management committed to people development
and convinced that the implementation of a people and convinced that the implementation of a people management system is a key factor in the global performance; management system is a key factor in the global performance;
Work closely with managers and employees on the design of Work closely with managers and employees on the design of new HR tools to understand their needs and to provide new HR tools to understand their needs and to provide everyone with a clear understanding of the project goals and everyone with a clear understanding of the project goals and objectives; objectives;
Take the time to deploy the tools progressively; Take the time to deploy the tools progressively;
Empower your managers through the use of new HR tools; Empower your managers through the use of new HR tools;
Regularly review the effectiveness of the system in assessing Regularly review the effectiveness of the system in assessing the satisfaction of employees and managers;the satisfaction of employees and managers;
Take the time to communicate on the project at all levels; Take the time to communicate on the project at all levels;
Ensure training and coaching for managers and their teams. Ensure training and coaching for managers and their teams.
Don’t:Don’t: Don’t deploy a new tool for all employees at the Don’t deploy a new tool for all employees at the
same time: take the time to test; same time: take the time to test;
Don’t start the implementation of a new tool Don’t start the implementation of a new tool using criteria which have not been worked out by using criteria which have not been worked out by the employees and the managers themselves; the employees and the managers themselves;
Don’t forget to review; Don’t forget to review;
Don’t hesitate to coach people if difficulties are Don’t hesitate to coach people if difficulties are encounteredencountered
TQM in Public SectorTQM in Public Sector
DOES IT WORK?DOES IT WORK?
CCurrent political context of urrent political context of governmentgovernment
focus on short-term activities that do not focus on short-term activities that do not fundamentally change systems (emphasis fundamentally change systems (emphasis on the quick fix) on the quick fix)
crisis driven rather than preventative crisis driven rather than preventative driven by current economic conditions driven by current economic conditions
rather than long-term conditions rather than long-term conditions characterized by mistrust between political characterized by mistrust between political
and civil service arms of government and civil service arms of government top-down decision making prevalent top-down decision making prevalent highly adversarial positions of political highly adversarial positions of political
parties parties
The Pennsylvania The Pennsylvania Department of Department of
Transportation’s Quality Transportation’s Quality ProgramProgram
Revitalization= complete overhaul of poorly performing public organizations 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
Two Decades of Quality Management at PENNDOT, 1982-2002
Two Years of Innovation and Change at PENNDOT, 1999-
2001
Thank YouThank You