Description
3.3 Test your Knowledge (Question):
1. What advice might you give Rob and Diane about the management practices
they are proposing within each element of the TQ infrastructure? What
additional practices might you suggest?
2. How might viewing the organization at three levels of quality, including the
strategic (senior leadership), tactical (middle management), and the operational
levels help improve their business plan?
Case: A Total Quality Business Model
Two young entrepreneurs, Rob and Diane, were contemplating an idea of developing a new
type of take-out restaurant with limited dining facilities that would provide a wider variety of
home-cooked cuisines than found in currently available businesses. In developing their
business model, they realized that a TQ-focused management infrastructure would be vital
to success. Here are some of the ideas they arrived at.
Customer Engagement
Rob and Diane realized that they must focus on the customers’ perceived quality of both the
product and service. They believe they must provide unexpected value to their customers
and go beyond customer expectations to create lifetime customers. As part of training,
employees will focus on “moment of truths”—the many instances that a customer forms an
impression of the company, either through its products or interactions with its employees.
These moments include a friendly greeting to each customer on arrival, recognizing repeat
customers, offering samples of different items, answering questions, serving the products,
and a genuine thank-you on leaving. Another way to exceed expectations would be to
accommodate any reasonable request. Employees would have the authority to do whatever
it takes to satisfy the customer. When a complaint is raised, the employee should act
immediately to solve to the problem, listen attentively to the customer, and apologize. No
matter what, the customer should always be thanked for bringing the complaint to the staff’s
attention.
To evaluate the customer’s experience, the company would require shift managers to be the
first customer on each shift, starting from the parking lot to check its cleanliness. In addition,
they would use technology to track service times and complaints, and “mystery shoppers”
each month throughout the system. Every quarter, all regional store and shift managers
would meet to discuss their experiences and seek improvements.
Leadership and Strategic Planning
The leadership system would consist of regional vice presidents responsible for all of the
stores in a geographical area, regional managers in charge of about a dozen stores within a
region, store managers responsible for the day-to-day operations, and shift managers to
manage the employees on each shift. This “cascading” structure would allow
communications to be disseminated rapidly throughout the company, both top-down and
bottom-up. A manager training and development program would ensure that each level of
manager obtained the necessary skills for their job responsibilities. This training would not
only address the needs of entry-level managers, but also those who move up the career
ladder in the firm into higher leadership positions.
The company’s vision would be simple: to be the consumer’s choice for all varieties of fresh
convenience meals. The strategy would be based on product quality (variety, freshness,
value) and outstanding customer service. Rob and Diane realized that every employee
needed to understand the company strategy, which would be conveyed during the employee
orientation and management training and development programs. Managers would be
responsible for ensuring that all hourly employees focus on these two goals
through daily meetings, written quality check sheets that must be completed on every shift,
and an employee stock-option program that would be tied to meeting these goals as well as
profit targets.
Workforce Management
All managers would be trained in several positions in order to gain a solid understanding of
the duties and requirements of all employees, to be able to cover certain positions if needed,
to train hourly employees, and to gain credibility with them. The training program for a new
manager would be designed to be somewhat self-directed. The manager trainee would be
given a skill checklist that includes each skill he or she should learn. Experienced trainers
would be available to answer any questions and assist the manager trainee with any
difficulties. Trainees would be given short evaluative tests and feedback from the trainer.
Before their first day of work, all hourly employees would attend an orientation session
focused on making them feel welcome in their new work environment. The session would
include a history of the company, mission, policies, and training procedures. To keep good
people, the compensation program would need to be competitive in the industry. Managers
would be required to visit local competitors to identify their compensation structure and
compare them.
Job performance of all hourly employees would be reviewed periodically using performance
appraisals by the store manager after the first 30, 90, and 180 days of employment, followed
by annual appraisals. The appraisal would cover such topics as customer focus, quality of
work, teamwork, and responsibility. It would also require the employee to identify future
goals and objectives and plans for improving performance.
Process Management
All food production processes would be carefully documented so that all employees are
aware of what specifications must be met, particularly those health and safety requirements
that regulated temperature of food and proper storage. Managers would be responsible for
taking periodic measurements and observations to ensure that all employees are following
procedures. Managers would also be responsible for their relationships with food suppliers.
Rob and Diane are thinking of identifying one large supplier for most of their food supplies.
Information and Knowledge Management
All key data and information, such as inventories, financial reports and projections, customer
feedback, employee, and operational performance, would be collected and displayed in the
kitchen area, so all employees can understand the results of their efforts. Information from
all stores would be consolidated at corporate headquarters for evaluation and analysis.
1. What advice might you give Rob and Diane about the management practices
they are proposing within each element of the TQ infrastructure? What
additional practices might you suggest?
2. How might viewing the organization at three levels of quality, including the
strategic (senior leadership), tactical (middle management), and the operational
levels help improve their business plan?
Case: A Total Quality Business Model
Two young entrepreneurs, Rob and Diane, were contemplating an idea of developing a new
type of take-out restaurant with limited dining facilities that would provide a wider variety of
home-cooked cuisines than found in currently available businesses. In developing their
business model, they realized that a TQ-focused management infrastructure would be vital
to success. Here are some of the ideas they arrived at.
Customer Engagement
Rob and Diane realized that they must focus on the customers’ perceived quality of both the
product and service. They believe they must provide unexpected value to their customers
and go beyond customer expectations to create lifetime customers. As part of training,
employees will focus on “moment of truths”—the many instances that a customer forms an
impression of the company, either through its products or interactions with its employees.
These moments include a friendly greeting to each customer on arrival, recognizing repeat
customers, offering samples of different items, answering questions, serving the products,
and a genuine thank-you on leaving. Another way to exceed expectations would be to
accommodate any reasonable request. Employees would have the authority to do whatever
it takes to satisfy the customer. When a complaint is raised, the employee should act
immediately to solve to the problem, listen attentively to the customer, and apologize. No
matter what, the customer should always be thanked for bringing the complaint to the staff’s
attention.
To evaluate the customer’s experience, the company would require shift managers to be the
first customer on each shift, starting from the parking lot to check its cleanliness. In addition,
they would use technology to track service times and complaints, and “mystery shoppers”
each month throughout the system. Every quarter, all regional store and shift managers
would meet to discuss their experiences and seek improvements.
Leadership and Strategic Planning
The leadership system would consist of regional vice presidents responsible for all of the
stores in a geographical area, regional managers in charge of about a dozen stores within a
region, store managers responsible for the day-to-day operations, and shift managers to
manage the employees on each shift. This “cascading” structure would allow
communications to be disseminated rapidly throughout the company, both top-down and
bottom-up. A manager training and development program would ensure that each level of
manager obtained the necessary skills for their job responsibilities. This training would not
only address the needs of entry-level managers, but also those who move up the career
ladder in the firm into higher leadership positions.
The company’s vision would be simple: to be the consumer’s choice for all varieties of fresh
convenience meals. The strategy would be based on product quality (variety, freshness,
value) and outstanding customer service. Rob and Diane realized that every employee
needed to understand the company strategy, which would be conveyed during the employee
orientation and management training and development programs. Managers would be
responsible for ensuring that all hourly employees focus on these two goals
through daily meetings, written quality check sheets that must be completed on every shift,
and an employee stock-option program that would be tied to meeting these goals as well as
profit targets.
Workforce Management
All managers would be trained in several positions in order to gain a solid understanding of
the duties and requirements of all employees, to be able to cover certain positions if needed,
to train hourly employees, and to gain credibility with them. The training program for a new
manager would be designed to be somewhat self-directed. The manager trainee would be
given a skill checklist that includes each skill he or she should learn. Experienced trainers
would be available to answer any questions and assist the manager trainee with any
difficulties. Trainees would be given short evaluative tests and feedback from the trainer.
Before their first day of work, all hourly employees would attend an orientation session
focused on making them feel welcome in their new work environment. The session would
include a history of the company, mission, policies, and training procedures. To keep good
people, the compensation program would need to be competitive in the industry. Managers
would be required to visit local competitors to identify their compensation structure and
compare them.
Job performance of all hourly employees would be reviewed periodically using performance
appraisals by the store manager after the first 30, 90, and 180 days of employment, followed
by annual appraisals. The appraisal would cover such topics as customer focus, quality of
work, teamwork, and responsibility. It would also require the employee to identify future
goals and objectives and plans for improving performance.
Process Management
All food production processes would be carefully documented so that all employees are
aware of what specifications must be met, particularly those health and safety requirements
that regulated temperature of food and proper storage. Managers would be responsible for
taking periodic measurements and observations to ensure that all employees are following
procedures. Managers would also be responsible for their relationships with food suppliers.
Rob and Diane are thinking of identifying one large supplier for most of their food supplies.
Information and Knowledge Management
All key data and information, such as inventories, financial reports and projections, customer
feedback, employee, and operational performance, would be collected and displayed in the
kitchen area, so all employees can understand the results of their efforts. Information from
all stores would be consolidated at corporate headquarters for evaluation and analysis.
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