Total Quality Management (TQM)

Total Quality Management (TQM) is a management style that implies non-stop process of quality improvement of products, processes and personnel work. This is a bunch of methodologies that drive company to strategic goals achievement through unceasing quality development. It is focused on production of goods and services that possess high-quality from viewpoint of customers. TQM has shown phenomenal results and now it is used in many successful enterprises all across the world. It allows obtaining faster, fundamental and more efficient business development, because it stimulates production of much better products for better prices.

There are 5 mistakes that should be driven out of organization for successful implementation of TQM. If these are not eliminated, they can entail failure of TQM and gradually destroy a company.

• Management of only basic line. Organization that takes care only about basic line of development and manages only numeric results is doomed to failure. Management is a hard work and manager that works only with numbers lightens his/her task. Actually manager should know all process workflow and being involved into the process, understand what can be the source of problems and be an example for subordinates.
  
• Evaluating of activity with a help of quantitative rates system . Evaluating of activity with a help of quantitative rates system. Evaluating that uses system of quantitative rates, reports, annual reviews of attainments, etc. can cause forced quotes, classification and ratings that entail unhealthy competition, break of team collaboration within company. Instead of such systems managers should personally comment employees' work, advice and help to improve it.
  
• Stress on receiving of short-term benefits. If employees have experience of getting fast profits they will try to work in the same way. Management should convince workers that it is better to prefer long-term and stable growth and improvement than quick, short-term profits.
  
• Lack of strategy. If there is no any sequence of realizing goals in a company, employees will feel uncertainty about possibility of constant professional and carrier growth. Organization should have continuously realizing strategic plan where considerable part should be devoted to questions of quality improvement.
  
• Staff turnover. If high staff turnover within organization is apparent, this indicates serious problems. Eliminating of previous four sicknesses will help to solve this one. Management should assume the proper arrangement to make employee feel as an important part of one consolidated team.

Advantages of TQM:

TQM gives some short-term advantages, however majority of advantages is long-termed, and tangible benefits from them appear only after successful realization. In big organizations this process can take few years. Long-term benefits expected from implementation of TQM - higher productivity, higher moral of personnel, decreasing of costs and increasing of consumers' trust.

This will make company popular and increase its status within society. Avoidance of mistakes allows company to save money and time. Extra resources can be used for range of products and services expansion or for other improvements. TQM creates atmosphere of enthusiasm and satisfaction with performed job and welcomes awarding bonuses for creative approach to professional duties.

TQM intensively uses team style of work that allows employees share their experience, use their skills effectively and apply joint efforts for solving issues. As far as team members gain experience of team problem solving they can be a part of cross-department "mega teams" that work at tasks that are beyond of local group possibilities. TQM gives to organization more flexibility in work and problem solving and improve work environment for each employee.

MBWA: Managing By Walking Around

MBWA: Managing By Walking Around (what it is and what it is not)

MBWA (Management by Walking Around) is a technique that has been around for quite awhile. I am not sure exactly where it originated, but I have practiced it myself and have observed others practicing it - both intentionally and unintentionally. It is very effective if used properly - and very ineffective if not used correctly!

Incorrectly using MBWA.

Many of us have experienced ineffective managers at one point in our careers. Typically one of the distinguishing factors of a poor manager is that they do not ask good questions and they have little to offer in the way of help, support, or suggestions. This holds true with MBWA. In MBWA, the objective is for us as a manager to walk around and mingle among the people in the organization. So, whether walking on the shop floor, through a manufacturing plant, through a processing facility, a customer service area, a store, or virtually any venue, there is a lot to see and observe. It is only when we have the right questions and the right framework in our minds that we can really soak up what is there and leave behind the best possible messages.

Effective MBWA

Effective managers have their fingers on the pulse of their projects, their teams, and their organizations. They have an in depth understanding of their customers needs and they also are polished at keeping on top of changes. Changes might include some of the following:

1. Occurrence of risk
2. Changes in customer needs
3. Personal problems among employees
4. Friction between employees
5. Changing requirements
6. Systems not working
7. And many, many more.

The key is to understand what parameters provide the pulse, and to be able to take the pulse - and also administer medicine when needed. As project managers, it is our job to proactively inquire and observe, as well as initiate and decide. It is no different when using the technique of management by walking around.

All the technique of managing by walking around does is get us out of our seat, out of our office, and out with our stakeholders, employees, team members - and into the actual work environment. The key to success at MBWA, however, is just like the key to success in anything related to management: to listen, use proper management techniques, and be an excellent executive.
____________________________
John Reiling, PMP

Reaction Paper #3 - Teams

Virtually every organization — business, school, government, healthcare provider — faces a similar set of challenges. While each organization has a unique set of needs to manage their workforce based on their industry. To leverage the customers' organizations industry domain Kronos broke the sales & services group into Industry Vertical Teams. The Sales & Services organization is broken out into domain expertise of Healthcare, Retail, Public Sector, Service & Distribution, and Manufacturing. This initiative supports the customer by providing deeper domain, solutions, and skills training. The services organization also has a Remote Team known as the “Easy to do Business Team” that delivers solutions to the customer virtually. The mission of the Remote Team is to delight clients by providing strategically priced, highly efficient, and customer focused remote implementations. This will be accomplished while attaining or exceeding revenue, utilization, and customer satisfaction goals; as well as sustaining employee morale.

Kronos is also made up of various cross functional teams; teams that are made up of people from different functional areas within the company—marketing, engineering, sales, and services. These teams are created to determine strategic plans for future product offerings and new product enhancements. Another vital team within the organization is the Service Planning Team. This team will represent service interests in all phases of the product lifecycle to ensure the service organization is able to efficiently and cost-effectively implement and support Kronos products.

Our organization also pooled together the Project Managers who work under the various industry verticals. This internal team’s mission is to improve the overall efficiency and effectiveness of Kronos' project management service offerings affecting both internal and external customers. The team will build the foundation of Project Management that will provide critical, value-adding services, methodologies, education and tools to the following primary customers: project managers, project staff, and client project teams.

The goals of these teams are to innovate, deliver high quality products and service offerings while exceeding customers’ expectations.

Beneficial Organizational Structure & Job Satisfaction

Successful businesses pair the most beneficial organizational structure to their personnel, divisions and communication framework. A tightly paired organizational structure can enhance productivity, ensure dissemination of important information and can allow for the free flow of ideas and business enhancing activities. Depending on your business needs, an alternative organizational structure could improve and enhance your business.

Employees in all organizations want to work in an environment of trust and respect where they feel they are making a real contribution to organizational goals and objectives. They want to be able to have the opportunity to show management that they can accomplish a task with the creativity obtained from working in teams. By examining the relationship between trust in management and employee job satisfaction, corporations will have the knowledge necessary to assess their current culture and, if needed, develop a culture that allows for growth of its employees through high levels of trust.

Keep Emotions Out of Your Portfolio

This is a great article of how to deal with over-thinking. It gives you tips on how to think strategically versus emotionally and trusting your intuition. This goes with week 6 topic of decision making and creative problem solving.

Stop over-thinking your portfolio. Take a mental "time out" and try some deep-breathing exercises. Do whatever it takes to rein in your caveman brain, because right now, your mind is one of your biggest liabilities -- emotionally and financially.

That's right: The ingrained tools that keep us out of harm's way -- our drive to seek more and more information, to look for patterns, to compare options, and even to flee to safety -- are the very same ones that compel us to make boneheaded financial mistakes. Worst of all, often we're not even conscious that we're on a financial suicide mission until it's over.

Re-train your brain
The good news is that, with pointed, conscious effort, you can tame your gray matter and neutralize the psychological noise that leads to bad investing decisions. The first step is to recognize the analytical and emotional tripwires in your head.

Here are four major cognitive biases to focus on nipping before they get the better of you and your money.

Myopic loss aversion: When things go swimmingly, it's a snap to keep a long-term perspective. When the bad news keeps coming and we're terrified of losing money, our time horizons shrink dramatically. We no longer project what will happen to the market, or to our investments, over the course of the next three to five years. Instead, we focus on what happens over the next three to five minutes.

The cure: Go long. If you think like a short-term trader, then you'll be tempted to start acting like one. And right now, nothing could be worse for your sanity and your savings. Remember that investing success is not measured in minutes or even months: At The Motley Fool, we pick stocks for their long-term potential. Stick to your core investing principles, and you'll do fine.

Information bias: With stock market news dominating every major outlet, we're bombarded with information -- and we keep watching because we just can't seem to get enough. Worse yet, most of the information isn't even relevant to the decisions we face.

The cure: Avoid information overload. Turn off CNBC. Immerse yourself in a novel, not the Internet news sites. Watching the market's conniptions and CNBC pundits' breathless banter simply makes the situation seem more dire and puts you at the mercy of our next cognitive bias ...

Social proof/herd mentality: It's easy to assume that when the market drops 18% over the course of the week, "it" knows something we don't. That assumption gains credence as others presume the same. Robert Cialdini, author of Influence: The Psychology of Persuasion, explains how this pile-on takes place: "The greater the number of people who find an idea correct, the more the idea will be correct." So everyone starts selling in a panic -- "The market is going down and I want out first!"

The cure: Ignore "them." Like your mother said, just because everyone else is jumping off a bridge doesn't mean you should. Instead, stick to your plan. Invest on a schedule and tune out the crowd. While everyone else is trying to game the system, you should be on the lookout for the opportunity to buy great businesses, with strong balance sheets, on sale. Tune out the noise and brush up on the basics. Hard times can be learning opportunities, which is a lot more productive than curling up in the fetal position and rocking back and forth for hours.

Anchoring: Focusing solely on a number is one of the most dangerous mental hiccups to your bottom line -- and lately we're drowning in a sea of numbers (stock prices, market indices, etc.). Here's how it works: Suppose you go to a used-car dealership and find a car priced at $7,000. You return later that afternoon to find that it has been marked up to $9,000. Nine grand strikes you as too expensive, even though you know nothing about the actual value of the vehicle. However, had you first seen the car priced at $11,250 and talked the salesperson down to $9,000, your mind would tell you that you were getting a great deal. The car is downright cheap! In both cases you anchored on a number -- a completely arbitrary number.

The cure: Anchor on value, not price. Anchoring is devastating in investing terms: Remember, a stock isn't cheap because it was more expensive yesterday or even last year. So rather than anchoring on price, anchor on value. Do your research and determine the price you're willing to pay for the company's future earnings stream before you look at the stock price.

How To Motivate Your Employees Without Money: 3 Employee Motivation Techniques That Work Like Magic

Now that we have an economic crisis looming above our heads, learning how to motivate your employees without money becomes more important than ever. Doing this can help you improve the overall performance of your employees. It will encourage them to work ever harder and strive for the company’s goals.

So do you want to know how to motivate your employees without money? Here are a few ideas that are worth checking out.

1) There are other things equally, or more, important than money.

Perhaps the first thing you have to do is to instill the belief that money is not all that. Encourage charity among your people. After all, there are more important things in life at stake. A company that has solid values will get very far. Encourage values such as service, trust and hard work.

Those who show exemplary values should be rewarded. Not by money, because that will defeat the purpose, but by other things. Say a medal, trophy or certificate of achievement or recognition. These things don’t have to cost much, but they will be treasured by the recipient because they appeal to the employee’s ego.

2) Be one with them.

Another way on how to motivate your employees without money is by being an example of hard work and resilience. If you’re a supermarket manager, for example, you can always dedicate a few hours of your time making rounds and helping customers get what they want.

Don’t use your position to lord over your employees. That’s not going to motivate them to perform better. In fact, that will only drive them to do worse. Instead, show them that you’re not embarrassed to do what they’re doing. Instill a bit of pride in their work by not hesitating to help a customer out yourself.

3) Praise work well done.

When employees are praised, they generally feel better about themselves and about their situation. Don’t be afraid to tell your cashier that he or she is doing a good job. Don’t hold back when your employees show dedication to their work.

A lot of companies have weekly meetings so why don’t you use these meetings to acknowledge jobs that are well done? Believe me. Small words of encouragement go a long way.

If you want to know how to motivate your employees without money, you’re going to have to appeal to the other things that they hold dear. Make sure to emphasize positive values, promote cooperation, serve as a good example and acknowledge work that is well done. When you do this, employees will do everything in their power to perform better.

http://www.articlebiz.com/article/551107-1-how-to-motivate-your-employees-without-money-3-employee-motivation-techniques-that-work-like-magic/

I found this article interesting and goes with the audio lecture from week 4. At the beginning of March we will be hosting an all hands call with the entire team to kick-off March. March historically has been a high performing month with a cash incentive program. This year we are going to get the team together and use these type of motivational tactics to get the same high performance result without using cash incentives.

Favorite colors test shows CEOs are different; take the test

Check out this article, it’s an interesting personality color test. The results can steer people toward a career that matches their personality and strengths with jobs they might find enjoyable.

http://www.usatoday.com/money/companies/management/2010-02-08-ceocolors08_ST_N.htm?se=yahoorefer

The test takes about 60 seconds. It is almost entirely visual and asks people to click on colors, sometimes ordering as many as 15 colors from favorite to least favorite. The results turn out a personality profile that is far from perfect, but is proving to be as valid as more established and lengthy verbal tests such as Myers-Briggs and the Gallup StrengthsFinder. The results can steer people toward a career that matches their personality and strengths with jobs they might find enjoyable.

http://www.deweycolorsystem.org/