Management Chapter 13 Homework Leadership For Performance Excellence Easily Transfer Their

Leadership for Performance Excellence 13

ANSWERS TO DISCUSSION QUESTIONS

1. By saying that leadership is the “driver,” we try to emphasize the critical nature of leadership

at every level for successful TQ. The answer to Review Question 3, above, elaborates on the

2. Answers will depend on who the student selects as his/her example leader. See Review

Question 3, above, as a basis for developing the answer to this question.

3. Leaders can demonstrate the seven personal leadership characteristics of: accountability,

courage, humility, integrity, creativity, perseverance, and well-being, but it isn’t always

5. Each of the principles used by geese has a quality parallel that should be considered.

Many of them are so obvious as to make one wonder, “how did those geese become so

smart?” or “why are we so dumb?” Organizations wishing to implement performance

excellence might benefit from studying the behavior of geese and drawing the following

parallels;

a) This shows the synergistic value of teamwork. The team is able to provide more “lift”

to the organization than any one individual, or the sum of their efforts when they

Leadership for Performance Excellence 14

SUGGESTIONS FOR PROJECTS, ETC.

1. Characteristics of leadership effectiveness should be identified by the students and may

include: how senior leaders set clear values, set high expectations for performance, set

expectations for performance improvement, build loyalty, build teamwork, promote

initiative, encourage risk-taking, and clearly promote the purpose and function of the

business over maintaining structure or “executive privilege.” Questions could be

constructed on a scale of 1-7 or 1-10, with 1 = Strongly disagree and 7 = Strongly agree.

For example, in setting clear values and high expectations, the questions might include:

Strongly disagree Strongly agree

1 2 3 4 5 6 7

Senior leadership develops, commun- +—–+—–+—–+—–+—–+—–+

2. Leadership styles will vary widely, depending on such factors as the type of organization,

its size, and the philosophy of the top management. Expect to see any one of the styles

3. Conklin’s questions can provide a useful “checklist” for leadership styles. See his article,

referenced in the question, for more background. They also provide a starting point for

useful discussions of “what is a leader.” Keep in mind that there are hundreds of

4. This project will provide some interesting insights, as students research the traditional

theories of leadership in Table 13.3. For example the answer to this question will require

Leadership for Performance Excellence 15

that students “go beyond” the materials in the text and research the Fiedler model, in more

detail. A principles of management or organizational behavior text will probably have

Fiedler‘s “Model of the Effects of Leadership Styles on Leader Performance According to

ANSWERS TO CASE QUESTIONS

I. Johnson Pharmaceuticals

1. Although few details are available in the case, the type of situational leadership style that

the CEO of each plant demonstrated may be surmised. The CEO of Plant A appeared to

be using a supporting style, whereas the CEO of Plant B was probably using the

delegating style.

In Plant A, organization readiness would best be described as unable but willing. The

plant’s culture would be described as conserving, reflecting a level of rigidity in response

to the external environment, but demonstrating organizational commitment. The enabling

2. To determine which of these styles was more appropriate in view of the Situational

Leadership model, we should take a closer look at the descriptions and situation to which

they were applied.

a. Coaching. In this style, leaders set the overall approach and direction but work with

subordinates and allow them to manage the details. Leaders might need to provide some

direction, based on experience (a task-oriented behavior), or support (relationship-

Leadership for Performance Excellence 16

b. Supporting. Here, leaders allocate tasks and set direction, but the subordinate has full

control over the performance of the work. These individuals do not need much

supervision or direction (task-oriented behavior), but may require leadership to assist

them in building motivation and confidence (relationship-oriented behavior), particularly

if the task is new (able but unwilling).

In the case of the pharmaceutical plants, and the industry, one may assume that there are

highly skilled operators and managers in the plant. However, if there have been quality

issues and regulators at work with warnings issued, it can be assumed that monitoring

3. If the diagnosis of the situation is correct, then it should be no surprise to find out that

Plant A was more successful in achieving the goals of the quality system. The manager

who continued to adhere to the supporting approach was probably “stuck” in a

management style when he/she should have analyzed the situation more closely. If that

Leadership for Performance Excellence 17

II. TRIVIEW BANK — LEADERSHIP

The complete TriView Bank case study, a fictitious example of a Baldrige application, can be

found in the Baldrige Materials folder on the Student Companion Site.

1. Factors in the Organizational Profile that would be most important in evaluating their

leadership approaches:

1. Mission – to provide customers with financial services and promote the growth and

economic well- being of all the communities we serve.

Vision – To be recognized as the number one community bank in Legendary Service.

Values – Integrity: keeping our word and dealing honestly and transparently with all

2. Core competencies include “Legendary Service”: understanding and exceeding customer

expectations; “Operational Excellence”: demonstrating process and performance discipline;

and “Agility”: making and implementing decisions quickly. The applicant is developing a core

competency in mergers and acquisitions.

3. The applicant’s four founders are involved as follows: CEO & Chairman of the Board,

President, Treasurer/Chief Financial Officer (CFO), and Secretary and General Counsel.

Executive Management Council (EMC) includes these partners and rest of senior

management team.

4. Stakeholder Requirements and Expectations: Regulators: proactive compliance with

regulations, responsiveness to requests for information, timely and full access to information,

appropriate risk assessment and mitigation. Shareholders: accurate financial records,

transparency and objective decision making, appropriate risk assessment and mitigation,

fiscally sound reputation, locally and nationally. Community: community investment,

reputation as a good corporate citizen and community partner, proactive volunteer and

financial support.

5. Strategic Challenges: Addressing the many changes in banking regulations and more

regulations coming in the future, meeting earnings targets while serving increasing numbers of

customers using low-margin services, addressing the loss of public confidence in the financial

6. Strategic Advantages: Taking advantage of low-cost TARP funds (5%) through 2013,

Leadership for Performance Excellence 18

2. Strengths & OFI’s

1.1 Senior Leadership

Strengths

++

Strength

Item Ref.

X

The applicant’s systematic approaches to setting and deploying its mission, vision, and values (MVV)

help establish the direction for the entire organization. The MVV are set during step 1 of the Strategic

Planning Process (SPP; Figure 2.1-1) and deployed through the TriView Leadership System (TLS;

Figure 1.1-1) and numerous other mechanisms (Figure

1.1-2). In 2008, the applicant refined its vision, using an approach based on one used by a

Baldrige Award recipient.

a(1)

Senior leaders’ approaches to help create a sustainable organization align with the values of operational

excellence and innovation. For example, 75% of the workforce has been trained in Lean, and each

associate is expected to complete an improvement project annually; through the Individual

Performance Plan (IPP) process, associates’ individual work is linked with at least two strategic

objectives; and TNB offers a Leadership Development Series (LDS).

a(3)

Opportunities for Improvement

—

Opportunity for Improvement

Item

Ref.

The applicant presents limited evidence of systematic evaluation and refinement of several key

leadership approaches that may support operational excellence and enhance sustainability. These

include approaches for innovation, performance leadership, creation of a workforce culture that

delivers a consistently positive customer experience, and enhancement of leadership skills. Other

examples are the LDS, legal and ethical approaches, methods used to create a focus on action, and

Legendary Service standards.

a, b

Leadership for Performance Excellence 19

A systematic process is not evident to create and balance value for the applicant’s customers and

Several key leadership approaches do not appear to be fully deployed. For example, it is unclear how

the MVV are deployed to key suppliers and partners; how development opportunities are deployed to

all workforce members; and whether the MVV, service standard training, and legal and ethical

requirements are deployed to DirectServe and Widmark employees (nearly 20% of the workforce).

Effective deployment may help the applicant deliver consistently Legendary Service and maintain its

loyal workforce.

a, b

1.2 Governance and Societal Responsibilities

Strengths

++

Strength

Item Ref.

The applicant fosters transparency by including the entire workforce in key governance processes

and ensures audit independence by using state and federal auditors. T- Dashboards with legal,

The applicant’s multifaceted approach to legal and regulatory behavior supports its value of integrity.

For example, proactive methods, such as testing process requirements for optimal use of resources, as

Leadership for Performance Excellence 20

The applicant’s Community One initiatives (Figure 1.2-3) are linked to its core competency of

understanding and exceeding customer expectations, and they focus on creating relationships with

Opportunities for Improvement

—

Opportunity for Improvement

Item Ref.

The applicant does not describe cycles of evaluation and refinement for processes related to

accountability for management’s actions, transparency in operations, audit independence, or community

support. Systematic evaluation and improvement may help the applicant effectively address the loss of

public confidence in the financial industry.

a(1), c

A systematic process is not evident for some governance approaches related to the BOD. Selection

Leadership for Performance Excellence 21

3. a. Specific advice for Category 1.1, that might help TriView Bank, would include:

• the need to develop a systematic evaluation and refinement of several key leadership

approaches that may support operational excellence and enhance sustainability.

• the need for a systematic process to create and balance value for the applicant’s customers

and stakeholders (regulators, shareholders, and the community).

3. b. Specific advice for Category 1.2, that might help TriView, would include:

• need to develop a way to systematically provide for cycles of evaluation and refinement

for processes related to accountability for management’s actions, transparency in

operations, audit independence, or community support. Systematic evaluation and

4. For all of the above, tools and approaches may be found in the Baldrige process, which

specifically recommends that: Implementing Baldrige requires repetitive cycles of self-

assessment, priority-setting, action planning to address gaps and opportunities for improvement,

Leadership for Performance Excellence 22

Instructor Reserve Materials

Cases

I. Westerfield Construction

1. Deters fostered cultural change at Westerfield Construction by essentially following the

suggestions of Juran and others for effective change, including:

a. It must create and maintain an awareness of quality by disseminating results throughout

the organization.

b. It must provide evidence of management leadership, such a serving on a quality council,

providing resources, or championing quality projects (like Six Sigma, for example).

c. The company must encourage self-development and empowerment through the design of

2. A model of the change process might include the following:

Leadership for Performance Excellence 23

No

Complete leadership

development process

CHANGE PROCESS AT WESTERFIELD CONSTRUCTION