Criterion 1. Leadership

Transcription

1 Criterion. Leadership a. How leaders are committed to Total Quality Management Fig. a. Definition of Leadership. "A leader is that person who, through identification and commitment to the mission of the organisation, drives, motivates, acts as a role model, shares knowledge and ideas, recognises and organises. All members of the organisation may be leaders. Leadership implies recognition of the group, and is practised by: the General Manager the people of the organisation, through the responsibility of process management, improvement teams and High Performance Teams (HPT). EUSKADIKO ELKARTE LABORAL TALDEA 2

2 ASLE was founded in 92. From the outset, the General Manager promoted a culture based on individual autonomy and responsibility at work and a 2- level organisational structure; the General Manager and the employees. As the size of the organisation increased progressively, the organisation chart expanded horizontally. The only leadership recognised at that stage of the organisation's growth was that of the General Manager. Develop clear values and expectations for the organisation and act as role models for these values. In early 995, the General Manager identified the need to apply management methods which would generate new values and a greater involvement of employees both with members and with the objectives of the organisation itself. To this end, the EFQM Excellence Model was chosen as a reference model. In the period leading up to the beginning of this process, the ASLE General Manager concluded that:. If the process were to be successful and the employees involved in the project, the significant contribution of the General Manager as a role model would be critical. 2. It was essential to define and clarify those values latent in the organisation. At that time in ASLE, work was being managed through task delegation, and there were no departmental bosses. Empowerment and the exercise of leadership needed to be further promoted. In June 995, the ASLE General Manager decided the following actions should be taken: Weekly meetings every Friday afternoon, led by the General Manager or the person responsible for the subject matter. At that time, the leadership of ASLE employees was not sufficiently structured, though leadership practice began to be developed through discussion in meetings and improvement teams. Participation of all employees in these meetings. Implementation of a training-action programme to contribute to the learning of a Total Quality culture and knowledge of the European Business Model Excellence. The ASLE Mission (Fig.0), Vision (Fig.2c2) and Values (Fig.a2) were defined that same year. All ASLE employees participated in this process. In 995 and 996, 0 and 2 Quality meetings were held respectively, all of which were attended by all ASLE employees. In the course of these meetings, employees received training provided by external consultants on Total Quality, Process Management, Measurement and Monitoring of Indicators and Improvement Management. The first self-assessment was conducted in 996, with the participation of the General Manager and four leaders. As a result, an initial reflection process on leadership was undertaken, processes began to be defined and the first improvement teams were formed. Leadership was now exercised through process management and improvement teams. All process owners and improvement teams became leaders; % of staff were leaders during this phase (sub-crit.7b). Leaders were chosen by the General Manager on the basis of two criteria (Fig.a). As a complementary measure to this initial training, the General Manager drew up a training plan to deploy knowledge on Total Quality throughout the organisation (Fig.a4). External training in Quality began with process and improvement team leaders. To date, 55% of ASLE employees have received external training in Total Quality, the others having received internal training from leaders in meetings, through knowledge pooling and participation in process management and improvement teams. Process management, a driving force for other organisations in terms of the EFQM Model, the obtaining of the Silver and Gold Q Awards (Prizes awarded by the Basque Government for scoring in excess of 400 and 500 points respectively against the EFQM Excellence Model through external assessment), participation in forums on the EFQM Excellence Model, and the request made by Euskalit (The Basque Quality Foundation) to ASLE to provide Quality Assessors all point to the clear effectiveness of ASLE's training in Total Quality. The second self-assessment and review of the approach and deployment of leadership was conducted in ASLE in 99. To further boost the progress of the organisation towards Excellence, the General Manager and three leaders attended training seminars which enabled them to become members of the Euskalit EFQM Model Assessors Club (the General Manager was an external assessor in 999, the General Manager and three ASLE leaders in 2000, and the General Manager and 7 ASLE leaders in 200, a figure representing 26% of total ASLE staff), thus reaffirming the commitment of the organisation and its people to Total Quality. In 99, ASLE defined MbV as its Management System. This system strengthened transformational leadership and empowered all the organisation's people to use it, working within a framework of autonomy and responsibility, of everyday activities being customer focussed, and of a group defined and accepted corporate culture and vision. The ASLE organisation chart was presented as circular (Fig.0.2) and complementary, reflecting the culture of co-operation of the organisation's people. In 999, a learning workshop was held with Irizar (EQA Prize Winner, 2000) on leadership techniques and the promotion of employee participation. Fig. a2. ASLE Values. Solidarity - Participation - Commitment - Responsibility - Sincerity - Will to improve Fig. a4. External Training of Leaders in Total Quality. Fig. a. Leadership Criteria. Nº OF MAN. Knowledge of the process or improvement area to be managed. YEAR COURSE LEADERS hours 2. Ability to apply and integrate the knowledge acquired in Total Quality. 995 Total Quality Quality Assurance. ISO 9000 Quality Assurance System Audits Quality Teams and Tools Training of Consultants in EFQM Model V Course on Total Quality Assessors Course Retraining and specialised consultant service in EFQM Model Total Quality Facilitator People Management Strategic Planning 5S Methodology Advanced Programme in EFQM Model Improvement Teams and Tools Total Quality: European Model Measuring Customer Satisfaction EFQM Model Retraining and EFQM Assessors Course Recycling and Training in EFQM Model Retraining and specialised consultant service in EFQM Model Processes Formulation and Deployment of Objectives and Strategies EFQM retraining and Assessors Course Deployment of Objectives 7 Application of RADAR Model EUSKADIKO ELKARTE LABORAL TALDEA

3 The third self-assessment was conducted in ASLE towards the end of 999. As part of the Policy and Strategy review, the approach and deployment of leadership was again reviewed, with the participation of all ASLE employees. Leadership is a competence which ASLE strives to promote, and which is therefore included in its competence matrix. To this end, a list of competencies, skills and values required of a leader was drawn up in a meeting of all the organisation's people (Fig.a5). In 2000 and 200, all members of the organisation were asked to assess each other in terms of their leadership competence level, the results of which are shown in Fig. 7b. After analysis of the average scores in 2000, the organisation programmed two courses on management skills and competencies to improve the capabilities of all employees in this area. Additionally, to become more familiar with best practice in the area of leadership management, all ASLE employees participated in a one-day visit to the company Irizar. One idea taken from this visit was to review the effectiveness of leadership by survey (Fig.a7). Subsequently, and as a result of the external assessment conducted in 2000, ASLE once again reviewed the approach and deployment of leadership and incorporated it into its people management process, producing a definition of the ASLE philosophy in this area (Fig.a). This definition was the sum total of the competencies defined in the 999 review and the leadership being practised in ASLE since 996. One decision taken from the 200 review was that a leader should no longer be chosen by the General Manager but by consensus of the group to be led and in accordance with the criteria set out in Fig.a. Reviews and improvements carried out over time with respect to leadership approach and deployment are shown in Fig.a6. (Further details of this can be found in Fig.2c). Since the organisation was founded, ASLE has practised and promoted a culture encouraging communication and understanding among its people. An open-door policy is practised, and the necessary means have been provided for company documentation to be available and accessible on-line to all employees (subcrit.2b, b and 4b). The accessibility of leaders is rated through the survey on leadership effectiveness; results in this area are clearly positive (Fig.7b4 ). The system of leadership effectiveness has been reviewed on several occasions. Prior to 999, the only system in place to measure the effectiveness of Management leadership was the general people satisfaction survey (this same survey in 2002 rated the item "management effectiveness" at 4.5). The effectiveness of the other leaders was reviewed by the General Manager. From 999 onwards, as a result of self-assessment and system review, the survey to measure leadership competencies was introduced (Fig.a5 and 7b). The following year, as a result of external assessment, a new measuring system was introduced, consisting of a survey conducted in every third meeting by the team on the team leader. Survey items, including accessibility, training, recognition, etc. are shown in Fig.a7. This data is analysed jointly by the General Manager and the leader and, when necessary, appropriate actions are taken (training, targetrelated problems, etc., Fig.a5). As the mission of leadership in ASLE (expressed in the leadership subprocess) is "to create a situation in which all ASLE people behave as leaders and are recognised as such" leadership in ASLE can be described as a rotary concept. It is the group itself which determines the duration of the leader in his/her post. In percentage terms, the trend in the number of people practising leadership in ASLE by co-ordinating processes, improvement teams and HPTs is highly positive (Fig.7b). DATE Fig. a5. Leadership Competencies in ASLE. ITEMS. Capacity to organise 2. Recognition of others' achievements. Willingness to share knowledge 4. Capacity to lead by example 5. Capacity to motivate and be optimistic 6. Capacity to drive 7. Identification with mission statement MILESTONES IN THE REVIEW, LEARNING AND IMPROVEMENT OF LEADERSHIP 92 Creation of ASLE Sole recognised leadership: General Manager People management: autonomy at the work place, no middle management Fig. a Review: Strategic thinking: inclusion of the EFQM Business Excellence Model as a reference model Definition of the Mission, Vision and Values by all ASLE employees Intense leadership of General Manager to deploy EFQM Model Emerging, though non-structured leadership of employees Learning: Training Programme for all ASLE employees in Quality 996 Self-assessment and leadership review: Development of and Improvement Teams Process Owners and Improvement Team organisers identified as leaders by the General Manager General Manager and Leaders participate in self-assessment of the company Training Plan: leaders receive external training and cascade their learning to others through process management, in improvement teams and in weekly meetings Deployment of leadership: % of employees practice leadership, 4% of employees involved in processes and improvement teams Effectiveness of leadership: leadership of the General Manager measured through the general people satisfaction survey. Leadership of others rated by General Manager 99 Self-assessment and review of leadership: Training in Quality: o General Manager and three leaders, all members of the Assessors Club o Deployment: 0% of employees practice leadership and train a further 74% through involvement in improvement teams, processes, meetings and knowledge pooling o A standard team is set up for self-assessment: the General Manager and all process leaders MbV established as Management System. MbV is Management by Values, not by Instructions or by Objectives, and is defined by the promotion of leadership, empowerment, facilitating decision-making and a clear customer focus Incorporation of a Quality facilitator 999 Self-assessment and review of leadership: Learning workshop in Irizar Definition of leadership competencies (Fig.a5) Deployment of leadership and internal training: 40% of employees practice leadership, 92% of employees trained through involvement in improvement teams, processes, meetings and knowledge pooling 2000 Leadership review: Survey to measure competence levels in the Organisation (Fig.a5) Best Practices: visit to Irizar by all ASLE employees for learning about leadership effectiveness External assessment and review of leadership The leader is chosen by consensus of the group to be led and in accordance with the criteria set out in Fig.a Deployment: 4% of employees practice leadership and act as trainers. 00% of employees involved in improvement teams and processes, with complementary training through meetings and knowledge pooling The leadership subprocess is included in the people management process One outcome from the survey on leadership competencies is the training of employees in management competencies and skills Review of the system of leadership effectiveness: inclusion of survey on leadership practice (Fig.a7) 200 Review of Strategy Planning system and of targets in relation to leadership Deployment: 64% of employees practice leadership Best Practices with Not-for-Profit Organisations (NfPO), review of approach to leadership and of the recognition system of leaders (Figs.b and b4) EUSKADIKO ELKARTE LABORAL TALDEA 4

4 b. How leaders actively drive improvement within the organisation, and are involved with customers, suppliers and other external organisations Ever since ASLE defined its mission as "(...) commitment to (...) the application of Continuous Improvement(...)", it has used various mechanisms to develop Continuous Improvement (Fig.b). The ASLE General Manager has provided the necessary resources for improvements to be carried out in line with the stated objectives of the company Mission and Vision (crit.2). The Improvement Priority Fig. a7. Survey on Leadership and Participation in Working Parties.. Rating of the leader's capacity to organise in terms of calling meetings, meeting schedules, resources for meetings, etc 2. Leader's capacity to chair a meeting (management of time, targets, items, minutes, etc.). Accessibility of leader 4. Leader's capacity to channel all behavioural types towards achieving targets 5. Recognition of contribution 6. Knowledge transmission 7. Listening skills. Encourage participation 9. Attendance and punctuality 0. Meet commitments by agreed date Assessment of all team members by all team members system is based on the following criteria: Impact on Financial Results; (savings or increased revenue); on people satisfaction and on customer-related results. In 99, The ASLE Board of Directors declared Total Quality to be a strategic objective, since when Total Quality has been endorsed in all annual company reports and General Assemblies. In ASLE, improvement is managed through: Fig. b. Improvement Mechanisms. Process management and self-managed, multi-skilled improvement teams, led by people initially chosen by the General Manager and later, after leadership review, by group consensus (Figs.a and a6). Learning: Training of all employees in improvement teams and tools, and in the EFQM Excellence Model (Fig.a4). Visits to companies such as: - GKN (Silver Q Award, 99): operational systems of working parties and mini-factories, a source of inspiration for ASLE HPT. - Irizar (EQA Prize, 2000): review of Irizar leadership and HPT. - Fagor Electrónica (Silver Q Award, 99): use of the Intranet (sub-crit.b and 4b). Creation of 5S groups (a minimum of two leaders per group) (sub-crit.4b and 4c). Incorporation of a Quality facilitator. Creation of a Continuous Improvement Process, which systematically reviews the approach to improvement in ASLE (team composed of the General Manager and three leaders) (sub-crit.5d). Five leaders manage improvement with those suppliers who have a direct impact on the services provided by ASLE through their involve ment in the sub-process of the preparation of Gatza, the I.T. management sub-process, the occupational training management process, the purchasing management sub-process and the Integral Environmental Management System sub-process (IEMS) (sub-crit.2a and 4c). Leaders involved with customers, e.g. customers directly involved in the strategy review. (Fig.2c6). - In the Basque Government Plan for the Promotion of Quality in the Industrial Sector (PPQIS 97/2000). In 997, there were three leaders and 9 companies involved. As new leaders were trained in Total Quality, new companies joined the Programme (reaching a total of 9 leaders and 5 companies in 2000). The format and content were reviewed annually, and two one-day technical workshops were held in 99, this figure increasing to 7 in 999 and 9 in Two meetings are held annually with the Basque Government to monitor the driver effect of the initiative. The new PPQIS 200/2004 Agreement came into force, with new requirements regarding progress in EFQM (commitment of companies to achieve a score in excess of 400 points through external assessment within three years), and a review of the driver approach took place with customers establishing a new methodology (training / action). Six ASLE leaders as drivers (Fig.6b0). - The Worker-Owner Company Contract, a product created by ASLE with the aim of regulating those aspects related to the incorporation of new workers and the leaving of existing ones, and to profit handling. 6 companies and four ASLE leaders were involved in In 200 (Fig.6b7), this increased to 4 companies, and two new leaders in the working party. - One leader involved in the Economy Club, a product created by ASLE to promote economic and financial benchmarking activities between companies. (Fig.6b6). - In 2002 four leaders and 20 organisations (SME of less than 50 employees) involved in the Plan Premié (Fig. 9b5) ASLE aims to improve its management and learn from others through participating in forums on Best Practices. The organisation has taken part in various forums, with the presence of at least one leader in each one. Assessment of leader In addition to teaching in one-day technical courses and working as EFQM assessors, ASLE leaders also participate in other acts of a more general nature, promoting Best Practices and Total Quality. Some examples of these are shown in Fig.b2. ASLE regularly publishes articles on Quality and special reports through its publication entitled Gatza. It also collaborates in Quality Management magazines such as Qualitas, etc. In line with its stated goal of "Commitment to employment" (crit.2), and in the belief that the EFQM Model has opened up new areas of employment for the young unemployed, ASLE, in collaboration with other organisations, offers a series of grants for Total Quality Facilitators (Fig..2). ASLE leaders participate in Best Practice forums, promoting knowledge of and continuing to learn about Total Quality. The first two Best Practice forums in which ASLE participated took place in 996, but after successive reviews of the Best Practice system, several others were attended. The knowledge obtained through these forums was initially shared throughout the organisation through knowledge pooling (sub-crit.a), and subsequently also through Intranet (sub-crit.4b). One outcome of the latest ASLE strategy review was the definition of a BSL to focus more intensely on the EFQM Excellence Model and to achieve Best Practice levels (Fig.2c and 2c4). Development of the Best Practice forums is shown below: (sub-crit. 4d and Fig.9b) Fig. b2. Participation in Training Acts. DATE ACT 996 Total Quality Management 97-0 European Quality Week 99 Management through the EFQM Model 99 People Management 999 Total Quality Management 999 The Culture of Total Quality 2000 Management by Values 2000 Management by Values 200 People Management System 200 Leadership 200 People Management Total Quality EUSKADIKO ELKARTE LABORAL TALDEA 5

5 Since 996, ASLE has participated in the Knowledge Cluster, an organisation made up of a series of Basque Country companies with a common interest in knowledge management. 20 forums have been held. Useful ideas taken from these forums have included, amongst others, knowledge pooling and website design. Since 996, ASLE has participated in a group of Not-for-Profit Organisations (NfPO), one of which (ASLE) has achieved the Gold Q Award, and a further three the Silver Q Award. The work forums organised take the form of information exchange on Total Quality Management systems. In this respect, subjects covered over the period through the initiative taken by these organisations are shown in Fig.b. YEAR Policy and Strategy Processes and Continuous Improvement People Management Indicators Improvement teams and tools Innovation in Teaching Innovation in Teaching Processes People Management Subject matter for talks in the European Quality Week 5S SUBJECTS Information Management 5S Methodology Improvement Actions EFQM Self-assessment Fig. b. NfPO Meetings. Internal communication Key Processes Review of indicators Continuous Improvement Recognition Effectiveness of the Intranet Competence and Professional Development Effectiveness of Training In-depth focus on Criterion Competence Management and Performance Appraisal Leadership Values and Ethics in Organisations Since 99, ASLE has participated in Best Practice activities with other Associations of Worker-Owner Companies in Spain. These forums take the form of information exchange on common products, innovation and strategy, and take place twice a year. 0% of ASLE employees have attended these forums. Outcomes of these meetings include new training technology design and the management of European programmes. Additionally, ASLE is a member of CONFESAL (Spanish Confederation of Worker-Owner Companies). In this respect, ASLE has been asked by CONFESAL to train fellow Associatons of Worker-Owner Companies (7 nationwide) in aspects related to the EFQM Excellence Model. In October, 99, ASLE signed a collaboration agreement with MCC, through which diverse areas of information exchange were to be addressed: the Social Economy compared to other models, management experience, collaboration in business activities, in people management and in the study of business / management tools of common interest. Since then, 9 meetings have been held to progress in all these areas. On the proposal of the Basque Government, two ASLE employees formed part of a Commission with representatives from MCC to prepare a report on ways to promote and consolidate the Social Economy in the Basque Country. The findings of the report will be discussed in the Basque Parliament for future legislation on the matter. Since October, 99, ASLE has been part of COANET, the network of organisations driving continuous environmental improvement and made up of 9 local leading-edge companies in this field. meetings have been held, in which experience in work methodology and systems for the diffusion of environmental matters are discussed and exchanged. Since 200, ASLE has been a member of the 400 Club, comprised of those organisations which have scored in excess of 400 points through external assessment against the EFQM Excellence Model. Euskalit have asked ASLE to develop the criterion of Leadership as an example of Best Practice for other organisations. Additionally, the Institute of Applied Economics of the University of the Basque Country uses ASLE leadership as a case study. The Basque Country Business Development Agency (SPRI) has published a book of best practices of companies located in the Basque Country. In this respect, ASLE was selected as a best practice organisation in the criterion of People Management. In September, 200, ASLE became a member of the European Federation of Employee Shareownership (EFES) to obtain a more detailed knowledge of the forms of worker-owner business being developed in European countries. In March, 2002, ASLE hosted a working visit from a - man delegation from EFES, organised by the Basque Government. ASLE is a member of EFQM and of Fundibeq, the EFQM equivalent for Spanish speaking countries. One ASLE leader has been selected as an EQA Assessor for The Management System (MbV) and the values defined by ASLE imply a reduction in levels of hierarchy, and that involvement and participation in company management become fundamental for the development of work in ASLE. Commitment to improvement is, therefore, not considered as a criterion for promotion; the lack of levels of hierarchy is aligned to a horizontal professional development within the organisation (sub-crit.a and Fig.0.2), and commitment to improvement is inherent in the ASLE work system. ASLE believes the best way to motivate and recognise people is to give them the opportunity to participate in decision making which affects how the company is managed, and therefore their own work (in the 2002 satisfaction survey, the item "Delegation and Empowerment" was rated at 4.7). This philosophy has been developed as follows: - All ASLE employees participated in the process of defining and reviewing Mission, Vision and Values - After a period of deliberation on strategy, the Policy and Strategy Committee put forward its findings for group consensus. Minutes of the Committee meetings are available on-line to all employees. In the 2002 satisfaction survey, the item "Information and Communication" was rated at Since process management and improvement teams were introduced in 996, the participation of employees in these systems has now reached the point where all employees are involved in a process or improvement team. In the 2002 satisfaction survey, the item "Involvement" was rated at People recruitment includes, as a pre-requisite, the interest, attitude and ability of a candidate to work in a company in which MbV is the chosen management system (sub-crit.a). - The General Manager holds performance appraisal interviews annually with all ASLE employees (Fig.a5). - Full accessibility of leaders (Fig.7b4). The internal recognition system has been successively reviewed and improved (Fig.b4). Data on the effectiveness of approach and deployment of recognition show rating figures of 2.65 in 996 and 4.22 in EUSKADIKO ELKARTE LABORAL TALDEA 6

6 YEAR REVIEW Results of the 996 survey: data analysed in joint meeting Consequence of: Self-assessment Results of the 99 survey Recognition analysed in joint meeting Result: continue with spoken and group recognition, but with the addition of improvements Consequence of: Self-assessment External Assessment Results of 2000 people satisfaction survey Data analysed in joint meeting. Result: continue with previous improvement actions and incorporate new ones Fig. b4. Review and Improvement of Internal Recognition. IMPROVEMENT Recognition by the General Manager: spoken and of groups 00% of salary to be paid to any worker on sick leave (ASLE make up the difference between Social Security payment and full salary) Recognition by the General Manager: - / of profits shared among workers - Annual, personal recognition of individuals in writing - Public recognition in writing - Benefits: Private medical cover The definition of leadership competencies includes "recognition of others' achievements". This competence is measured by a survey of all employees by all employees (Fig.a5). This is included with the aim of promoting and improving spoken recognition in ASLE, the average rating of which was.2 in 2000 and.5 in 200 (Fig.7b) New social benefit: Life and Accident Insurance "Recognition of contribution" rated as part of leadership practice and with respect to participation within groups (Fig.a7). This is included with the aim of promoting and improving spoken recognition in ASLE (Fig.7b4) Learning: joint forum with NfPO to study recognition systems in each organisation. Proposal made to prepare a survey for all employees of ASLE to ascertain what people would like to see recognised, what form recognition should take, when, by whom, etc. Results data analysed by all employees support those actions being taken at the time. Ratings in the 200 and 2002 (general satisfaction survey) were.96 and 4.22 respectively ASLE recognition of collaborators and customers takes the form of articles and editorials in the magazine Gatza. Special mention is made of Best Practices in associated companies such as Torniplasa, SFP, Igarle, etc. Acts are organised in which customers are invited to explain aspects of Best Practice, e.g. in the European Quality Week. Additionally, collaborators and suppliers are invited to key events in the ASLE calendar, e.g. the General Assembly, the Txemi Cantera Award, Silver and Gold Q Award Ceremonies, etc.