behavior of the employees. Thus, in contrast to the creation of a mission, which is the responsibility of senior management, everyone in a company should have something to say about values (Welch and Welch, 2005). Organizations can use company-wide meetings and training sessions to encourage as much personal discussion as possible in developing organizational values (Welch and Welch, 2005). The vision and values of the organization should thus motivate individuals and serve as a guide for allocating resources (Smith et al., 1991). Effective leadership and successful execution are the prerequisites for achieving the organization’s vision. Execution has to be embedded in the reward systems and in the norms of behaviour that everyone practices. So, focusing on execution is not only an essential part of a business’s culture, it is the one sure way to create meaningful culture change (Bossidy and Charan, 2002) Mission, values, vision, leadership, execution, and organizational culture are all linked. Taken together, they represent the guiding principles for the successful implementation of an integrated business-excellence system. 4.2.3 Implementation of strategic performance-management system Drucker (1999) stated that the starting point both in theory and in practice may have to be “managing for performance”. The goal of an integrated business-excellence system is to go beyond mere ‘customer satisfaction’ to achieve customer loyalty through excellent performance (see Figure 4.1). The management systems, programs, and practices of this integrated model are the tools that can be used to achieve this goal. However, an appropriate performance-management system is needed to monitor and evaluate the performance generated by this integrated business-excellence system. Strategic planning and Hoshin management are two popular strategic management tools (Glaister & Falshaw, 1999; Lee & Dale, 1998), and many organizations implement the two simultaneously. Firms commonly perform a SWOT analysis and develop a vision, objectives, and strategies according to the methodology of strategic management, before deploying the organization’s objectives and strategies to the departments or units by the way of Hoshin management. During the implementation process, they commonly conduct a quality audit according to Hoshin management to produce progress reviews and an annual review. These organizations thus use an integrated model of strategic planning and Hoshin management to evaluate the performance of TQM (Kondo, 1998). Balanced scorecard (BSC) was launched in 1992 as a framework of performance measurement that was expected to overcome some of the deficiencies of traditional performance measurement. It gives a holistic view of an organization by simultaneously looking at four important perspectives: (i) financial; (ii) customer; (iii) internal process; and (iv) innovation and learning (Kaplan & Norton, 1992). The main benefit of the BSC is its
Six sigma and Total Quality Management 23 ability to translate an organization’s vision and strategy into tangible objectives and
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