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