the quality quest: quality in project management

Managing Quality in Project and Human Resource

The Quality Quest: In search of the best in the best Managing Quality in project and Human Resource

Billy Chilongo Sichone

1st edition

1 Quality quest


260966325998, [email protected]

All rights reserved. No part of this work may be reproduced in

any form, or by any means, without permission in writing from the

publisher.

Table of ContentsPreface..............................................................9

Acknowledgements....................................................11

Dedication..........................................................13

Introduction/Module descriptor......................................13

Over view and definition of Quality.................................19

A brief history of the quality revolution and its development.......43

W. Edwards Deming...................................................44

Joseph M Juran......................................................48

Phil Crosby.........................................................52

Kaoru Ishikawa......................................................55

Armand Feigenbaum...................................................56

General Douglas McArthur............................................56

Later Developments in quality circles...............................57

Quality Standards...................................................57

Summary and conclusion of unit......................................63

3 Quality quest


Quality, its essential nature and necessity.........................83

Some TQM definitions................................................86

Quality, its necessity & benefits...................................91

Implications and importance of quality..............................96

Quality as relates to project management...........................111

The Project cycle..................................................111

Qualities of a Project Manager.....................................124

Roles/Functions of the Project Manager.............................129

Over view of contemporary practice and recent changes in Human Resources Management...............................................163

Definition of contemporary HRM.....................................166

Strategic place/importance of HRM in project management............168

International Human Resources management in perspective............174

Quality issues relating to HRM.....................................191

Methods of enhancing Human resource quality performance............192

Documenting the best staff practices...............................197

Importance of quality in HRM.......................................200

Reasons why employees leave........................................212

Integrated Program management......................................220

Operations issues..................................................222

Teams..............................................................232

4 Quality quest


Some frequently encountered challenges in project and program management.........................................................245

Implications of delayed project or program implementation..........258

Grant Management snap shot.........................................259

Identifying quality in practice....................................273

Quality challenges and why it fails................................412

Quality now and in future..........................................432

General Bibliography...............................................450

Glossary...........................................................453

Index..............................................................457

Notes

Praise for this book:

“Well done! You’ve written an excellent summary of what one should know about quality with good examples. It will be extremely useful to students and practitioners alike.”

-William A. Cohen, PhD, Major General, USAFR, Ret.

President and CEO, California Institute of Advanced Management

and Vice President, Peter F. Drucker Academies of China and Hong Kong

5 Quality quest


6 Quality quest


7 Quality quest


PrefaceIn a rapidly globalised and globalising interconnected world, the need for high quality output is increasingly non negotiable.

Any entity ignores quality issues at its own peril. On an average

day, thousands, yea, myriads of projects progress at different

phases and paces towards an intended goal. The perceived and

anticipated outcome often bugs both the implementers and sponsors

of the said undertaking, failure may have devastating

consequences. And yet sadly, most projects are rarely completed

on time, let alone successfully reach their set outcomes. As has

rightly been observed by Oded Cohen from the Golddratt Institute,

“The majority of projects do not finish on time or to budget and

they rarely deliver to all the original project specifications.

This is down to poor management”1, there is urgent need to

address this serious malady to restore confidence in projects and

project management, lest it slides to the fad slimy pit. In a

high profile training on project management hosted by the

renowned Marcus Evans (www.marcusevans.com) in November 2002,

trainer and practitioner, Johan Steyn (KPMG Consulting) rightly

observed that it is possible to make a difference, if only the

right parameters and staff cadre are in place prior to the

1 As quoted by Robert Buttrick in his book “Project work out”, on the back cover.

8 Quality quest

http://www.marcusevans.com/


commencement of the project or integrated program as the case

might be.

Thus, in this short treatise and module, we consider quality

issues as relates to project management and Human resources. In

coming up with this module, a lot of resources have been

consulted from all sorts of mediums including the internet, books

(hard copy & soft e-books), workshop hand outs and interviews

with some project quality experts. To make the work more helpful,

a few case studies have been included as well as questions,

assignments and possible research areas.

At the end of this module, it is hoped that you will have mutated

into a world class project manager!

9 Quality quest


AcknowledgementsIn coming up with this module, many quality enhancing minds haveperused through the work to make it what it is. To accomplish

such a mammoth task in such a short time frame amidst a back

wrecking work schedule, I relied heavily on significant 10 Quality quest


authorities, colleagues and quality gurus who have paved the way

for us to tread their paths. It would be impossible to adequately

thank these people let alone thank everyone that supported me as

I incubated and developed my thoughts. None the less, I make an

attempt to salute some of them at the risk of leaving out

critical contributors.

I would like to thank the management of World Vision

International Zambia for having accorded me the opportunity to

refer to the various organisational policies, DME manuals and

sites as well as the valuable training that has shaped my

thinking over the years. I should also like to thank the

Cavendish University Zambia staff team that granted me an

opportunity to contribute to national development through this

module. It would be injustice to fail to acknowledge the Quality

and Human Resource gurus that I consulted while I wrote this

work. Their labours really opened up my mind not a little.

Special mention goes to Messieurs Gilbert Kamanga (Australia),

Isaiah Nzima (Zambia) and Assan Golowa (South Africa). Last but

not least, accolades go to my ever supportive my wife Jane, our

two lovely daughters and other colleagues across the world. They

consistently brighten my days.

11 Quality quest


DedicationTo all the world class Quality scholars & lovers that strive to

make the world better than yesterday.

12 Quality quest


Introduction/Module descriptorThis module is focused on examining some salient qualitative

project management aspects which touch on Human resource as well

in the said undertaking. To effectively open up this subject area

of study, the module has been divided into various units, each

focusing on a specific area of a given larger theme. The first

Unit gives a bird’s eye view on the all important subject in its

crystal form and then goes on further in the next unit to

consider historical aspects of this important matter. The module

also traces the project management processes as well as success

factors that make any entity succeed.

13 Quality quest


A clear understanding of what quality (especially TQM) is as well

as how it impacts on our daily lives is very critical to

achieving world class results in a given time frame at the most

cost effective rate. Having imbibed the TQM principles as

propagated by quality gurus, past and present, it is incumbent

upon the student to endeavour to reduce to practice what they

learn. It is no good having non functional information overload

that actually contributes to inefficiencies because decision

makers turn into ‘white elephant’ arm chair critics, seriously

paralysed by morbid analysis. The Japanese teach us a big lesson

of how right application of information and principles can result

in amazing strides in the right direction. Once application is in

motion, it is critical to constantly monitor progress as well as

evaluate periodically against set standards and bench marks for

that given procedure. Quality is all about procedures and

standards. Depending on the feedback, it may be necessary to

transition or change strategy so that the goals are effectively

and efficiently reached. Strategies change over time while goals

do not. The student must come away with expertise in qualitative

project management skills at the end of the course.

Thus, as the student ploughs through this module, let him or her

approach it with an open mind and a willingness to imbibe new

14 Quality quest


concepts as well as add potent ideas in our collective quest for

a better world than we found it when we first got here.

How to effectively use this study guide

This guide is designed to be used both as a basic information

pack on quality issues as relates to Project management as well

as a resource to stimulate further research. Therefore, to get

the best out of it, it is recommended that the student deeply

acquaints themselves with the information contained in this

module pack as well as read broadly consulting other authorities

on Operations management as well as quality such as Oakland J,

Kotler P, Brown M, William V, Luchsinger V, Hill C, Banks J,

Bicheno J, Harrison A, Bellingham R, Tulgan B, Townshend P,

Burnes B, Schroeder G R, Bower et al and Langdon among others.

These venerable authors have done extensive work on management

related areas. In addition, the student should acquaint

themselves with the relevant ISO standards as well as other

important standards. Lastly, the student must be an ardent cyber

space traveller exploring different knowledge “colonies,

archipelagos and islands” located on different websites. The case

studies embedded in this manual are but a tip in the iceberg for 15 Quality quest


there is a whole world out there with many real life cases that

will add value to their learning and practice. However, the cases

engrafted in this book must be fully read, dissected and digested

as should the self assessment assignments in this text. The

student must make it a habit to document all the processes they

encounter or go through in their quest to acquire knowledge.

Suggested study tips

As the student undertakes any study, the following tips could be

handy:

1. Come with an open positive mind to learn something new in

each sitting.

2. Each study sitting is unique and treat it as such.

3. Take in only enough per study session. Do not over or under

load your marvellous brain each time.

4. Take down some notes or highlight some important points as

you read. Be neat nonetheless.

5. Apportion enough time for your studies in a preferred

locality, space and specific time.

16 Quality quest


6. If it works well with you, engage in a study group of about

three or so people. If possible, attend tutorials or

discussion groups as often as possible.

7. Ensure you attend class regularly if you are in full time.

8. Never procrastinate!

9. Read widely. Have an enquiring mind quizzing everything with

a view to genuinely learn.

10. Conduct a self SWOT analysis and thus formulate your

optimum study regime.

11. Finally, enjoy your studies! You are investing into

your future!!!

Recommended books and documents

Banks J, The essence of Total Quality Management, Prentice Hall,

1997

Banks J, The principles of quality control, Wiley, 1989

Beckford J, Quality: A critical introduction, Routledge, 2002

Bicheno J, The quality 75: Towards six sigma Performance in

service and manufacturing, Picsie Press, 2002

Burnes B, Managing Change, Prentice Hall, 200417 Quality quest


Harrison A et al, Cases in Operations Management, 3rd Edition, FT

Prentice Hall, 2002

Naylor J, Introduction to Operations Management, 2nd edition, FT

Prentice Hall, 2002

Oakland J, TQM: text with cases, 3rd edition, Butterworth-

Heinemann, 2003

Pike J and Barnes R, TQM in action, Kluwer Academic, 1995

Prince 2 and PMBOK, The British standards institution

Slack N et al, Operations Management, FT Prentice Hall, 2003

Books worth referring to for further reading

Buttrick Robert, The interactive Project workout, 2nd edition,

Pearson Education, 2000

Dessler Gary, Human Resources Management, Pearson Education, 10th

edition, 2005

Drucker Peter, Managing, 1990

Beatty Jack, The World according to Peter Drucker, Magna

Publishing co. ltd

Knaut, Krasman & Meyer, Profiles of Excellence: Achieving success

in the non-profit sector, 199418 Quality quest


Maylor Harvey, Project Management, Pearson Education, 3rd

edition, 2003

Miles Glenn & Wright Josephine-Joy (Editors), Celebrating

Children, Paternoster (Thinking faith), 2003

Peters J Thomas & Waterman R, In Search of Excellence, Warner

books, 1984

Render Barry & Heizer Jay, Principles of Operations,

Pearson/Prentice, 6th edition, 2006

Important websites

www.businesscases.org/newinterface business case studies

www.dti.gov.uk/mbp Department of trade and industry-Management

best practice

www.efqm.org EFQM-helping European businesses

www.european-quality.co.uk European quality magazine

www.hbsworkingknowledge.hbs.edu Harvard Business School working

knowledge

www.hse.gov.uk Health and Safety Executive

www.hsl.gov.uk Health and Safety laboratory

19 Quality quest

http://www.hsl.gov.uk/

http://www.hse.gov.uk/

http://www.hbsworkingknowledge.hbs.edu/

http://www.european-quality.co.uk/

http://www.efqm.org/

http://www.dti.gov.uk/mbp

http://www.businesscases.org/newinterface


www.transformational-development.org World Vision International

DME site

http://corporate.ritzcarlton.com/en/about/gp;dstandard.htm,

Carlton Hotel award winning case

http://www.quality.nist.gov Malcom Baldridge National Quality

award (USA)

http://www.asq.org American Society for Quality, (ASQ)

Wikipedia internet site, the free Encyclopaedia

20 Quality quest

http://www.asq.org/

http://www.quality.nist.gov/

http://corporate.ritzcarlton.com/en/about/gp;dstandard.htm

http://www.transformational-development.org/


Unit 1

Aim

The aim of this unit is to give a general introduction to TQM as

relates to business management in general.

Objectives

By the end of this module, students should have:

1. Acquired a bird’s eye view of quality and its relevance

today.

2. Grasped a basic background of the quality evolution.

3. Had a basic understanding of what strategy is all about.

Over view and definition of Quality

When talking about potent strategy in modern business circles,

the organisation and individual seek to curve the most efficient

and effective route that outwits all potential rivals. In one

21 Quality quest


sense, there is move towards an interdependent “win-win” scenario

in the contemporary business environment where the corporations

agree to share the market or cooperate in benefiting from the

same market. In another sense, each company would like to weave

an especially unique path that cannot be easily imitated by

competitors, since the competitively modern uncertain business

environment is all about survival of the smartest and fittest.

One thread however, weaves through all products and services for

successful entities, no matter what their location might be on

this terrestrial ball. That thread is crystallized in two words

TOTAL QUALITY. The word ‘Total Quality’’ is now an established

buzzword wherever one turns. When profit is the subject,

competitive advantage and zero defects comes up, the word Total

Quality Management (TQM) or its implication linger somewhere in

the background. The business world is hailing this newly found

panacea as the ultimate solution to all the profit nightmares

that seem to haunt businesses. Turn to every media of

communication where business is discussed, TQM is mentioned. The

print press, the radio, the business journals, the magazines and

indeed the business textbooks, all are replete with this concept.

In America, TQM is relatively a new phenomena having been

practiced slightly over a few decades. The same holds true for

the other parts of the World too. The Japanese however have been

22 Quality quest


the masters having practiced this for well over five decades. As

earlier intimated most of the modern Management books do not fail

to include the issue of TQM because it lies at the very heart of

business success of the 21st Century. TQM has sometimes been

called “The silver bullet” as it is believed that if properly

implemented, the quality efforts guarantee phenomenal profits,

market share expansion, timely project execution and

unprecedented exponential business growth. Naturally, everyone is

looking for success!

A plethora of TQM books sit on bookstore shelves across the world

but few stand out. Many authors deal with the pertinent issues

that affect the modern business of the 21st century. All that

needs to be said about strategic quality management is

successfully delivered and clearly spelt out for any readers to

understand. One does not need to be a high profile Manager to

grasp most of the relayed TQM concepts.

Most authors acknowledge that TQM is not a ‘by the way’ thing but

that it lies at the heart of the organisation. It is practically

impossible to ignore TQM today, bearing in mind that the customer

is king and must be pleased at all times if to remain in

business.

23 Quality quest


In the midst of unveiling TQM, strategy comes to the fore.

Strategy is defined as ‘The pattern or plan that integrates an

organisation’s major goals, policies, action sequences into a

cohesive whole.’ This means the organisation must be

consistently aware that it is not isolated but in a constantly

changing, uncertain, turbulent and volatile environment. If that

be the case, the firm must swiftly move with the times so that it

fits well within a given setting. In keeping with the quest to

remain relevant, buoyant and competitive, the modern manager must

involve as many people in the organisation as possible, because

people feel left out when archaic, clandestine and boxed planning

methods are employed. But where key stakeholders are involved

from the planning stage, no matter how minimally, they

voluntarily go all the way to ensure success, yea, they run with

the ball. In a nutshell then, Strategy seeks to achieve the

following:

(i) A clear direction curving.

(ii) Introspection with respect to the outside competitors,

hence knowing what to do and when.

(iii) SWOT analysis, both internal and external.

(iv) Subsequently, the company zeros in on its core-

competencies, which would easily give a competitive

Anonymous24 Quality quest


advantage, and also to use the resources as best as

possible.

(v) Identify the major factors at play in the environment

that will affect the business. Examples are the political,

religious, social and legal environments. These must be

carefully monitored as the business outcomes largely hinge

on these, one way or the other.

(vi) Mark which actions from rivals need meticulous scrutiny.

To survive, an organisation must be scrupulously

meticulous so that nothing catches it by surprise.

All the above issues are addressed by a good strategy. Although

this may be true in a local scenario, today’s organisation must

contend with the fact that the world has become a ‘Global

Village’ because whatever happens at one point of the globe,

affects the rest of the world. The ‘ripples reach every shore

line’. It is an increasingly interconnected world as evidenced by

the recent global economic meltdown of 2008 & 2009. Deeply

ingrained in this global village scenario is the need to produce

quality goods that satisfy the international consumer and

ultimately bring about product loyalty. Quality is then

intertwined in all that is going to be bought or sold. Strategic

Management in an organisation operates in a particular framework.

25 Quality quest


It has been mentioned that global, quality and social issues

bombard the organisation from outside but there is need to

mention that the organisation has to function as an organism

gathering information and processing it to get a feedback. The

Operations, Finance and Marketing departments do this. The

strategy crafting process among others, covers the environment

analysis, direction establishment and strategy formulation. The

strategy implementation and control are equally crucial. In an

ideal situation, the organisation should function like the human

body, constantly agile and mutating.

To achieve the above mentioned posture, the average entity goes

through various phases that include:

1. Environment analysis (the context in which the organisation

operates noting the changes, happenings etc)

2. Establishing organisational direction (Visioning, dreaming,

strategic thinking etc)

3. Strategy formulation/crafting, shape and structure etc.

4. Strategy implementation and monitoring

5. Strategic control, evaluation and redesign

6. Strategic international operations

7. Strategic Total quality Management

8. Strategic social and ethical dimensions

9. Strategic Operations Management 26 Quality quest


10. Strategic Financial Management

11. Strategic Marketing and control

It is a curious fact that Total quality is either mentioned or

referred to indirectly in many successful entities and projects

within its fibre.

As one traverses any winning firm or project, quality pops up and

glows brightly in the background. The analysis is defined as the

process where the organisation pauses and monitors what is going

on within and without the organisation. Among the many things

considered, include the need to identify both the present and

future strengths, weaknesses, opportunities and threats that

buffet the firm. As earlier alluded to, this is known as SWOT

analysis. The acronym SWOT stands for:

S: Strengths

W: Weaknesses

O: Opportunities

T: Threats

The Strengths and Weaknesses relate to the organisation itself as

it carries out introspective and retrospective scan. These are

internal and controllable. The Opportunities and Threats are from27 Quality quest


outside the organisation and beyond the control of the entity. In

other words, the threats and opportunities lie in the immediate

environment in which the entity operates and beyond the firms’

control, rather, it is the organization to adapt to the changing

scenes. As the firm seeks to excel having checked within, it

looks out for openings to clinch the best deals around as well as

counter the competitor threats such as new market entrants, new

cheap high quality products, substitute products or even

government policies which threaten the business. All these must

be identified and addressed accordingly. This analysis is

addressed in three ways:

1. The internal environment- among many areas, this has to do

with human resources and marketing within the organisation.

(Focuses on the internal organisational weaknesses and strengths)

2. Operating Environment – This has to do with players in the

same industry such as suppliers, competitors and customers. This

includes new and emerging industries and market entrants.

3. General Environment- Under this head, we encounter certain

issues which affect the organisation such as the Economic

climate, Ethical and political issues. (# 2 & 3 focus on the

external threats and opportunities which the entity has to either

contend with or grab the lingering opportunities)

28 Quality quest


In a nutshell then, when carrying out an environmental analysis,

scanning as well as forecasting are at play. Implementation,

monitoring, evaluation and continuous improvement crown the

analysis process.

Other areas deal with establishing the organisational direction.

After the environmental analysis is completed, and the results

determined, the logical thing is to commence paving the way for

the organisation, ‘Which way forward?’ is probably the question

echoing on many a mind at that stage. In setting direction, three

ingredients are commonly used and these are obvious but for the

sake of having a common understanding, it is prudent to clear the

path. The said attributes are:

1. Vision- this is a desired end in a more general sense. In

other words, a vision states goals and direction in broad

terms. The question probably at hand is ‘What are we up to?’

‘What do we want to make?’

2. Mission-This is the purpose for which the organisation

exists. Why is the organisation here? What are the aims?

These are but a few issues addressed in the mission. Every

company should have a statement, which summarises the

existence in capsule form. The mission addresses those core

values of the organisation without which the company will

have no reason to exist. Usually, the quality issue is

29 Quality quest


always slotted in the statement so that it acts as a

powerful marketing tool.

3. Objectives- this is the Vision in more specific terms.

Here, the specific target group to which the organisation

directs its weight and efforts are clearly brought to the

fore. As the period unfolds, the organisation is constantly

asking whether it is meeting its objectives or not. This is

a good checkpoint or benchmark.

The 3 points above are the very heart of establishing Direction.

Notice that even here TQM finds a special place. The delivery

systems must be in tip top shape to sustain high quality

performance and exponential growth/expansion.

Further still, the strategy formulation issues as well as

implementation have to be considered. The managers responsible

must first understand what they are about and in that context,

the plans are implemented. The formulation process takes place in

at least three levels namely, the Business, the functional, the

global and the corporate respectively. All these levels look at

the company with respect to the environment. For example, the

advent of customer sovereignty is encountered in the business

level, the need to improve all the time and yet to maintain goal

congruence and innovation are met within the functional and30 Quality quest


corporate levels. When the formulation has taken place

successfully, implementation is evitable. The implementation

process is critical because that which has taken long to arrive

at is now being put into motion. Sadly, this stage is usually

undervalued or even overlooked in many a process! We assert that

more care is equally needed here too. A number of stages are

suggested to be taken into consideration as implementation takes

place:

1. We must determine how much change is needed to accept the

new strategy. A big company like General Motors Corporation

(GMC, USA)has taken several years to steer around and yet

still in deep weeds. At implementation stage, magnitude of

change must be arrived at so that the right momentum is

gathered. In other words, acknowledge the problem and set

standards to reach for effective progress.

2. We need to analyse and manage both the formulation and

implementation meticulously. It is one thing to formulate

and quite another to implement correctly and in the right

doses.

3. There is need to decide which mode to be used in the

implementation process because there are different

approaches. One option is to be autocratic and declare that31 Quality quest


the entire organisation must tow the top management line.

Another is to consult the middle management on the

modalities and let them implement as they see best. Still

another would be to consult the whole organisation and each

person implements as seen convenient. Each of these

approaches has problems that beset them. Sometimes quality

is compromised, especially if it is left free for all to

implement as they see best.

When the formulation and implementation are well done, the next

is to see that this plan is working according to schedule and in

line with the desires of the strategy architects. The process at

hand is dealt with under strategic control and is slightly

different from the traditional control we have in ancient

management practice. This is basically the monitoring, evaluation

and improving of activities. Continuous improvements or KAIZEN is

another buzzword in management circles. (Kaizen is a Japanese

word, which talks about continuous improvement of products and

services) When control is in place, it ensures that the

organisation is kept on course all the time and emergent

strategies are imbibed at the right time and at the appropriate

levels. Control helps the strategic manager to achieve the

32 Quality quest


organisational goals. As can be seen, quality rears its head even

here because continuous improvement is hewn from TQM!

At some point, Strategy takes us into the international

environment where it must be applied. On the international scene,

many complexities with respect to strategy are encountered. Here,

cross border trade, different cultures, attitudes and tastes must

be smartly and adequately addressed. It is difficult to find one

universal strategy because different cultures interpret things

differently. Their value systems are poles apart in some cases.

As they say, “PLAN GLOBALLY BUT ACT LOCALLY”, better still in

strategic terms, “Think long term, act short term” This phrase

summarises the international strategy as brought out in

international marketing. Among the issues tackled on the

international scene is the need to be customer oriented as far as

possible, respond promptly, churn out high quality goods and

services. Strategic acting is critical. Trade agreements such as

the general agreement on trade tariff (now WTO) GATT are

intercepted. The tariff barriers and regional economic groupings

cannot be ignored on world trade. More significantly is the

advent of the usually huge multinational organisations which have

feet littered across many borders and buttressed with a large

work force, though there is now a trend towards smaller, lean and

Billy Sichone33 Quality quest


sometimes virtual agile and buoyant organisation in the rough and

turbulent economic tidal waves of the 21st century. That is how

the Japanese have triumphed thus far over the Americans and the

rest of the World. Today, the Japanese are the foremost quality

car producers capturing over 20% of the world market, as the

Toyota brand reigns supreme for instance. They have carried the

day both in terms of number of cars sold as well as superior

quality, thus curving a cost effective unique niche although the

Americans seem to potentially hitting back by using computer

simulations and shorter new model roll outs. Never make a mistake

of exposing your technology to Japanese or an Indian as they will

quickly copy and improve on your product idea beyond your

recognition and yet it was initially your idea! A story is told

in certain circles that some parts of Europe do not allow Indians

or Japanese to go beyond a certain check point. Other

nationalities, especially Africans are freely allowed to tour.

One wonders why but upon scanning what is beyond that point, it

becomes evident that a lot of the state of the art cutting edge

technology is hidden there and must be protected at all costs.

The African and others are no threat as they are often ‘real and

genuine’ tourists in the truest sense of the word who simply

marvel and go away empty headed! Not so the Japanese or the

Indians! The fellows are far too smart armed with photographic

34 Quality quest


memories and once they pass through, they will have carried along

all the technology with them! Could it be, as strongly believed

in some circles that these people have good mathematical heads

while others do not? We have no telling.

Another interesting story is told that the first world countries

develop technology valleys such as the Silicon valley where

technological ideas are hatched, harnessed, nurtured and improved

upon. One country in Europe is said to hire the best brains in

the world to their facility on short term contracts which they

eventually fizzle out after they have “sucked” all the cutting

edge technology out of an individual. They ensure a native

national supervises or understudies the hottest whiz kid on the

block, learn the ropes and eventually discard the poor fellow! To

keep someone on a high pay roll for two or so years is not easy

but what they get in return is ten fold what they “invested”. Let

us discard the mere tourist mentality and get down to serious

business.

As earlier alluded to, TQM radiates brightly in this module. It

sparkles in almost every sentence. The Total quality issue has

been around for some time now. Although we shall undertake a

deeper historical analysis of TQM history in the subsequent

35 Quality quest


units, it is fitting at this stage to give a snapshot. TQM first

had its proponents in the late 1940s and 50s, although some

authorities argue that it has its roots long before this period.

Interestingly, they were all Americans! The three Quality Gurus,

as they are popularly known are E.W. Deming, J. Juran and P.

Crosby. All these propagated that quality was the master key to

market expansion, and project success long before the American

Multinational giants realised. The first and foremost of these is

Deming who got his Bachelor’s degree from Wyoming University. He

went further and got his Doctorate from the Yale University.

Thereafter, he used statistics in the US weapon industry. After

the Second World War, Deming went to Japan to help the Japanese

rise from the ashes after the Atomic bomb disaster. He began to

legendary lectures leading to a successful quality indoctrination

of the natives. There has never been a turning back. The Japanese

were initially notoriously renowned for mediocre quality goods

but after those power packed and inspiring lectures, they began

to improve quality. Deming went back to America but was later

recalled. This led the highest honour being bestowed upon him.

All the while, the giant multinational titanic corporations were

not for a moment aware that the Japanese quality was making

inroads into the world market. Deming proposed 14 points which,

according to him, were to guarantee success. The quality we see

36 Quality quest


today is but a fully-grown tree of some of the seeds sown by

earlier by Deming. Juran was more or less a contemporary of

Deming except that he came slightly later. He too taught quality

in all aspects of the product. Like Deming, he was honoured as

well with the highest medal in Japan. Crosby is considered one of

the gurus because of his outstanding contributions to the Total

Quality Movement. But what is Total quality? It can simply be

answered as ‘the move towards better all pervasive quality

products and services at all levels’. In the past, defects were

reacted to and corrected after they passed through the production

chain but with TQM, the organisation is pro-active. The goal is

to get a zero defect and also to continuously satisfy customers.

There are certain characteristics, which are universal as listed

below:

i. Total quality is customer driven. In other words, what

customer wants and desires is what goes, the customer calls the

shots, as it were.

ii. There is a strong quality bias in all that is done.

iv. There is never a time when quality is stagnant. The

organisation is ever improving-Kaizen

v. There is more employee participation in the planning,

implementation and monitoring of the process. In the past, some 37 Quality quest


areas were only for the top brass and certain special

departments. The organisation of the future has moved away from

the old way of doing things.

Total quality affects all areas of life today. If the quality is

poor, the company risks losing market share and eventual death!

Countless academics and authors have poured out huge TQM

avalanches over the years showing the importance in our days.

Although many have heralded it as the grand panacea, the TQM

movement has not advanced unnoticed or unscathed. Some think it

is just a passing craze (or fad) like other programs. Others have

talked a lot about it but have not internalised it into the

organisation system so that it virtually becomes invisible to the

naked eye, because it is so ingrained and embedded into the

corporate work culture. By the same token, myriads have attended

workshops and courses but as soon as they got back to base, they

closed their files and continued as before. In many instances,

the top leadership does not seem to support TQM, while in other

cases are too cost conscious, or demand instant results. What

they forget is that TQM takes time to cultivate and results long

term. It is a process. Thus, the Japanese are more proficient

because they have been at it for over four decades and their

38 Quality quest


cultural values support teamwork which has to be learnt by the

individualistic capitalists.

With time, the proud and static Americans realised the quality

importance and thus set up the Malcolm Baldridge prize in 1987 in

a quest to boost market dominance. It became law. Other standards

like the ISO 9000 are worth looking at. There are five standards

in the ISO 9000 series but the most frequently used are ISO 9001

to 9003. Many organisations demand ISO certification if they are

going to do business with any client. The ISO 9000 basically

looks at the process used to produce goods. However, the ISO 9

000, does not look at many other factors such as interpersonal

relationship, circumstances, attitudes and feelings. ISO focuses

on processes. The future organisation has no option but to

revisit the quality standards and also to apply for certification

if they are to be key successful players on the international

market.

Having traversed the exciting quality landscape, one feels as

though they begin to descend from the mountaintop. They are at a

These standards have to do with product and process quality standards. Specifically, ISO 9001- 9004 relates to quality management as well as systems.Various other standards exist for different industries. For instance, the ISO 14000 series focuses on the environment. It is worth knowing your relevant standards before you embark on the certification process.

39 Quality quest


‘quality anticlimax,’ as it were. The other equally important

strategic components include the social responsibility and

ethical considerations. The corporate social responsibility

issues (i.e. paying back to community by sponsoring contest,

rehabilitating clinic etc) orbit around whether a company or

project should or not do any social good, which is not directly

linked to its main objectives. By that token, there has been

considerable debate over this in recent years. Some think the

benevolent acts belong the state while others view it is a

corporate obligation as well as a powerful marketing tool. That

said, increasingly, more and more companies have opted for the

benevolent and marketing option. This double edged sword cuts

down on tax and builds corporate image

It is crucial to look at the supporting departments, which are

crucial to smooth running of the organisation and also for

strategic purposes. The Marketing function for example, helps not

only to market the goods but also to carry out research, which is

crucial to find out what the customers tastes. The Finance helps

the organisation to “count its men” and avoid all extremes such

as under or over trading. The balance sheet must cease to be the

Jack Welch would rather focus on cash flow not balance sheet ‘The Jack Welchway’ by Stuart Crainer, Magna Publishing Company Ltd, 2003

40 Quality quest


centrepiece of organisational operation and development, although

equally crucial. In some organisations, the Human Resources

department ensures the right staff are recruited, hired and

developed. All these must be viewed as parts of one organism so

as to maximise on efficiency and effectiveness. As the perceived

universal panacea, quality standards will remain the main thing

for decades to come but what is more important is to make TQM

work for us and not remain merely an ideology.

======================================================

Case study 1

The race to Mongu bus route superiority

At one time a trip to Mongu was the most dreadful of journeys toundertake. Not only was the journey long, strenuous and sweaty,

but also it was one that a person had to physically,

psychologically and emotionally prepare for long before hand. The

road was as bad as the vehicles that would be used. A single one-

way trip would take no less than three days! As though that were

41 Quality quest


not bad enough, the route was serviced by one fleet of state

owned infamous United Bus Company (UBZ) buses!

Today, the picture is completely different, as one can manage to

travel to and from Mongu in a single day! How so different a

scenario! What has caused this and what has been the impact? As

you might be aware, the number of buses servicing this route on a

daily basis has increased from one to over four! When the UBZ

folded in 1994, shortly after the liberalization of the economy,

other transporters sprouted and started to service the selfsame

route though they were more unreliable and unpredictable than the

UBZ that to some extent had guaranteed departure and arrival

times. As these initial transporters took on the route, a bus

popularly known as Time bus or JR came on the scene. This proved

to be more agile, comparatively customer friendly and had more

capacity. This move caused others to fizzle out, as they could

not compete. But just when JR was becoming the established route

leader, the RPS made a sudden appearance on the horizon, this

time even more efficient than JR! There were reported fights and

violent instances between the rivals. In no time, RPS robbed the

market though JR still remained a formidable force, in the

The UBZ & Zambia Airways closed in 1994. See the Southern African Economist Magazine of Feb/Mar 1995 pp23.

42 Quality quest


peripherals. RPS then became the upper class market bus while JR

serviced the poorer sort of travellers. As a result of the near

monopoly on the route, RPS became too comfortable, complacent,

obstinate and less customer focused. There were instances when

the RPS crew would violently hound out or insult customers and

still get away with it.

Alas, in 2000, CR smelt the profit on the golden Mongu route and

was irresistibly drawn into the race. As expected, CR arrived

with a bang and momentarily shook the RPS not a little as the

said fleet had not expected any other competitor. CR came with

robust modern marketing strategies that completely out witted

RPS. Some of the weapons exploited were introducing a customer

friendly service and at times even offer drinks or fruits free of

charge! Another avenue was the introduction of good quality,

timely buses fitted with Video/TV. This was too good for an

average Mongu bound bus by then!! In addition, the service

ensured all the buses were never overloaded and initially begun

with a lower price so as to capture the market. In no time,

customers shifted allegiance enmass. Soon, the anticipated

funeral procession to the bus graveyard for the once potent RPS

43 Quality quest


and JR was imminent, though they lingered around a little longer

than expected.

As providence would have it, in 2001 after reigning unrivalled on

the route for over a year, Euro Africa heard about the fame and

richness of the western province route and joined the race.

Determined not to be out done, the Euro Africa employed similar

strategies that CR had used except that they emphasized on

timeliness on all routes. This has worked well and potentially

dislodged the undisputed Mongu route heavy weight champion-CR.

For a season, the incumbents were paralysed because they were in

the same market niche with Euro. JR still limped along but better

than the other two as it serviced the poorer sort who would be

packed like sardines on the buses, with luggage littered all over

the place including the passage way.

Progressively, the battle raged hotter as the buses used all

sorts of strategies that included different departure times. For

instance, some now start off as early as 04:00 in the morning and

arrive at their destinations at about 10hrs and then make a

return trip at 14 hrs, all in a quest to get that extra buck!

44 Quality quest


Thus, the battle for route superiority rages on as other bus

services like Juldan, Shalom, Germins, Zoom etc join the race,

one wonders who will ultimately carry the day, let us keenly

watch…

Case study questions

What is has made some bus services/fleet more successful than

others on the Mongu route?

What one ingredient has been key to success?

What would you attribute this improved service in Zambia

especially after 1992?

Do you think the upcoming bus services will sustain superior

quality service? Substantiate your answer giving reasons why you

think/do not think so.

What are some of the pitfalls each emerging and incumbent bus

company should watch out for to succeed?

Case study 2

45 Quality quest


The rise, progress and spread of the Zambian Post

newspaper 1990-2007

For nearly 27 years, the Times of Zambia and Zambia Daily mail (though both initially had other names before), both State run

papers, although nationalised some time after independence,

reigned supreme. They were by far the most potent government

propaganda daily print media mouth pieces and to the extent they

reported, to that extent most Zambians were informed. Their

operations were extremely government regulated and dared never

publish any iota of government critical news item. The key

strategic positions such as Editor and above were to a large

extent, political jobs. In terms of finances, the papers raked in

millions although most of the times, the papers were

inefficiently produced, of poor quality, highly subsidised and

distributed to mainly government departments that probably never

settled their accounts. As for competition, well, your guess is

as good as mine, they competed between themselves in a cosmetic

fashion! I guess they spent more time gossiping about pay rises

and political promotions than strategising to competitively

outwit each other on the market. Very few foreign publications

were allowed, and if they did, one paid dearly to get a copy. The

46 Quality quest


News week, Economist and Times magazines were about the only

potent foreign publications worth talking about at the time but

even then, most of the propagated ideas could not resonate with

the average mind as the government controlled command economic

and political system impeded outside contact and exposure. In any

case, if anything was viewed as antagonistic to the State, heavy

censoring ensued, if not the total banning of that particular

issue. That is how things stood as at 1990. By all standards, the

Times of Zambia and the Zambia Daily mail were national standard

trend setters and appeared poised to maintain the superior market

share given their extensive and complex national network, perhaps

even beyond the borders of this country.

But then something happened in 1991, from nowhere, a publication

called the Weekly Post was born whose editor was Mr Fred M’membe

alongside some prolific, racy, penetrating and piercing writers

such as the late Jowie Mwiinga, atheistic Mercutio and the

towering Bright Mwape, a first or second year Evelyn Hone College

Journalism student at the time. The powerful Yuss dazzled the

readers with his artistic caricature antics and later the quaint

satire writer, Clarke. Never before had the Zambians ever

experienced such stinging daring reporting. At the time, Dr

Kaunda with his hench men were the prime target, and the major 47 Quality quest


issue of the day, reintroduction of the multiparty politics. At

first, the long established papers (Times and Daily) sneered at,

mocked and ridiculed the puny back yard weekly publication that

seemed to have been formed by a consortium of perceived

disgruntled fellows with a little support from anywhere. What

could they do? How could they dislodge such long standing and

time tested papers with a powerful international profile? How

could the half baked journalists possibly ever match up with the

seasoned, experienced and ripe writers of the day? What about

their distribution, coverage and regularity? What would these

frail and perhaps diseased guys do, why waste their time and

resources? So went the ridicule avalanche, similar to the

taunting Nehemiah and company faced (Nehemiah 2-8) when

rebuilding the Jerusalem walls. The Post was indeed bullet

riddled and pelted from all angles at the time. The New paper

idea appeared a sick joke and near lunacy at the time. As

expected, the young but living paper experienced some initial

operational setbacks but as the stinging and revealing

investigative reports begun to pour out, the world sat up

straight, because a new force had hit the scene. Not a few

eyebrows were raised as the once fragile looking paper begun to

dig deeper whilst others desperately attempted to bury the trash.

In no time, the titanic traditional and so-called “objective”

48 Quality quest


papers begun to feel the heat of the potent and fearless Post

editorials. Before long, litigation battles ensued raised by

mostly high profile personalities in the country. It appears that

they (people) were traditionally accustomed to unquestioned

filthy clandestine dealings and could not simply stomach

criticism, akin to one stealing relish from a pot. In no time,

the paper garnered sufficient clout and credibility among the

national papers. The paper that dug deeper carried the spirit and

aspirations of the general populace though it appeared rather too

radical then, after nearly 27 years of State controlled media. As

a result, the Weekly Post was verbally outlawed in many circles

and not bought by the State. That did not cool the Post momentum.

With time, The Weekly Post turned into The Post and confidently

took its place among the daily newspaper stands, clearly out

growing the rusty rest. Today, the paper is by far the foremost

widely read Zambian paper both at home and abroad. Its daily hard

copy circulation coverage of nearly 15,000 reaches the whole

country, the Internet and gets to many outlets long before the

Times or Daily Mail do. It has an efficient and effective

distribution channel with a reliable transport fleet. Besides,

the newspaper contents are worlds apart with the Post carrying

As quoted from a reliable veteran source. The estimated volume for the staterun papers is 12,000 (Times of Zambia) and 7,000 (Daily mail) down from 45,000in the 70s and 80s!

49 Quality quest


burning and current relevant issues of the day. The catchy

headlines and punchy editorials make the paper stand apart from

the rest. Further, the paper has been moving with the times and

seems to have a finger on what the real issues are and what

people want to and are itching to hear. The Post has a way of

exhuming and exposing dark corner secret bedroom meetings that

countless times even catch the President by surprise. A few of

those startling revelations have sometimes sent the man

hysterical! One can’t help but think of what was said about the

Prophet Elijah (2 Kings 6:12). Sometimes, the Post makes the

alleged corruption infested government appear like a seriously

dysfunctional information leaking vessel. Hence the endless

skirmishes with the powers that be.

But the Post has other unique attributes as it is full of

innovations that are absent in the traditional papers. I suppose

penetrating the “Kariba Dam wall” bureaucracy makes it a

fruitless task to attempt change the ancient lethargic state run

papers, as one is better off looking for and sipping away Zigolo

all day. As an example of what I mean, the paper has continuously

introduced powerful sections such as the Business Post, the

Zigolo= A sugar saturated cold solution popular among boarding pupils and students.

50 Quality quest


feature articles, the Sangwapo (advertisements), the Saturday

Educational Post, lifestyle, sports, Farmers’ Post and the weekly

personality profiles among many forward looking ideas. The paper

consistently continues to improve but never losing sight of the

original resolutions of being objective, profitable and candid.

It is clear that the Post rakes in millions daily and is the

trendsetter of the times on the newspaper market. The traditional

papers are still clutched in the bureaucratic mode and are no

match for the agile Post. The Daily Mail and Times are miles

behind as though they never once commanded nearly 100% of the

Zambian newspaper landscape. For instance, one can still find the

Times and Mail on the streets as late as 15 hrs selling at

ridiculously slashed prices. The Post will have long run out,

even in most of the smaller towns! Sometimes one wonders why

waste tax paper’s money on papers that won’t sell but merely used

for political propaganda. Another thing one notices when you

encounter a Post and State Journalist is the difference in the

attitude, diligence and motivational levels. A Post journalist

will compass land and sea to get accurate fresh information. The

others grumble all the way, are laissez faire and generally laid

back unless there is some “motivation”! Why be bothered when they

know that whether they report or not, whether the paper sells or

not, the tax payer will still subsidize the company anyway! After

51 Quality quest


all, their pay cheques are guaranteed. The Times and Daily papers

have not awakened to the needs of the times. They need to review

their strategy consistent with their fine and unequalled motos,

if they have a strategy at all apart from reporting on

globetrotting President or busy defending blatant clear

irregularities! People will not always buy a paper like that!

People are looking for credible tangible news, both local and

international. Apart from the job advertisements and a few

Internet downloaded news pieces, what do the papers have to

offer? In fact, it is the advertisements that cause most of

readers to occasionally buy the said papers. Perhaps, they should

consider crafting a strategy that revolves around the

advertisements, it could just be the long sought after money

spinner!

Having said the above, there is need to mention a few perceived

weaknesses and strengths of all the papers. In many senses, the

Post leads in many areas of strength but sometimes is perceived

too strong for the 27 year suppressed Zambian minds. Besides, our

cultural norms do not as yet sufficiently appreciate some of the

things promoted especially on the lifestyle section. Some of

those reports are too extreme, nearly nude and offensive to a

wider audience, though some consciences are becoming seared by 52 Quality quest


the day with the Satellite TV advent. That explains why some

political leaders bark out loud once hit under the belt. The Post

should watch out what it promotes in the name of “modernism” or

“Post-modernism”. In terms of candidness, by and large, it is

doing a great job though this opinion is relative. Another

caution though, watch out for potential new market entrants. It

is true that many have come and wound up in the intermittent

period but one may just manage to dislodge the paper that digs

deeper in terms of sales, just like it (The Weekly Post) did in

the early nineties! Continuously improve and build a powerful

niche. Learn from the Zamtel that is being beaten by new comers

like Celtel despite potentially having the widest

telecommunication infrastructure network in the country. Today,

Cell Z is trailing far behind Celtel, what more when mighty MTN

settles? There will be entertaining drama! I suppose that is what

a market economy is all about but take heed lest the Post also

joins the other dead papers in the already crowded corporate bone

yard.

As for the Times and Daily Mail newspapers, a lot of lethargy,

scrap metal and boxed thinking still needs to be hurled out.

Sadly, these papers remain in the organisational coma surviving

on the taxpayers’ life support system. They are actually a drain 53 Quality quest


on the meagre national resources and not worth supporting unless

privatised or let to run independently and professionally. If

possible, these should be commercialised or spun off from state

control. Away with the mediocre archaic politically infested

management and puppet journalism! The times have changed

therefore, it is high time to awake. Largely, the invisible

political hand messes up these potent media entities. The same

goes to the now frustrating ZNBC. The Daily Mail and Times should

urgently shrug off all impediments and give the Post newspaper a

run. Perhaps one way to beat the competition and silence the Post

is to commercialise one of the state papers into an independent

tabloid or investigative paper akin to Uganda’s Monitor paper. It

is a smash hit worth spending your cash on. But knowing African

politics and politicians, that is a farfetched dream, perhaps

unique to Museveni. That said, both papers need to improve on

their reporting quality, especially their generally poorly

researched and biased editorials. The language level is good

enough given the target readership but there is need to polish up

even there too. One hardly feels they are reading good standard

English when their eyes are scanning these papers. The language

level is rather too low for developed, broad and exposed minds.

If the lower brackets (and they are in the majority, though most

54 Quality quest


do not buy as they cannot afford!) of society are the target

group, then well and good!

The page size of the papers is needlessly too large, perhaps to

accommodate more advertisements. To their credit though (Times

and Daily), their advertisements are good and this is highly

encouraged. There is variety and a good assortment. They get rid

of the adverts at their own peril, though the papers need to add

more innovative contemporary issues that will motivate almost

every Zambian, old or young to walk across town to get a copy of

the Times or Daily. I often find it intriguing when kids troop to

read the education Post, that is the way it should be! Others

want to read Kalaki, Pastor Cholwe Mweetwa, Dr Canicius Miles

Banda, Ms Lucy Muyoyeta, Dr Neo Simutanyi, Dr Simeo Siame, Dr

Owen Sichone, Dr Judith Lungu, Mr Simon Kabanda, prolific Mr

Chibamba Kanyama, racy Professor Fackson Banda , Professor Clive

Chirwa and myriad other seasoned brain waves of our times. They

do not only look for the adverts but far much more. That gives

value for money.

Well, as the dynamic newspaper landscape continues to mutate, let

us sit back and meticulously but keenly observe what comes our 55 Quality quest


way next. Will a paper greater than the Post arise soon? It

presently seems not to the naked eye but let us not be too

comfortable lest another dislodges all the present three leading

papers of the day much like what the Post did back in 1991.


What one distinctive competence does the Post News paper have

over others?

Given a choice, what would you change or do differently at the

Post?

What areas need improvement in (a) state run print media and (b)

the Post?

Do you think the post is a catalyst to development or a mere

nuisance? Justify your answer.

How best do you think the State run and other Post competitors

can improve (a) their profitability/market share and (b) their

operations?

Is there a likely hood that a new market entrant will dislodge

the Post soon from market leadership? Give reasons for your

answer.

56 Quality quest


Revision exercise

Describe what you know about the evolution of quality

perceptions.

Why is quality so important in today’s world?

Why do some perceive quality as a mere passing management fad?

What do you know about the ISO standards?

What do you know about the Malcom Baldridge National quality

prize and its significance?

What do you understand by the statement “Quality must be embedded

in the system”?

Mention something about the “big four” quality gurus.

What is unique about Japanese management? In your opinion, is it

superior to the western mode?

In your own words, write brief notes about Kaizen, the ringi

system and their importance.

BibliographyBellingham Richard, Virtual Teams, Jaico Publishing House, 2003

57 Quality quest


Bowler J, Bartlett C, Uyterhoeven H, Walton R, BUSINESS POLICY:

managing strategic processes. Irwin McGraw-Hill, 8thedition, 1995

Burnes Bernard, Managing Change, 4th edition, FT Prentice Hall,

2004

Campbell J David, Organizations and the Business Environment,

Butterworth Heinemann, 2002

Certo C Samuel & Peter J Paul, The Strategic Management Process.

Chicago: Austen Press/Irwin, 1995

Cole Robert & Mishler Lon, Credit Management, Irwin McGraw Hill,

1998

Crainer Stuart, The Jack Welch way, Magna Publishing Company,

Ltd, 2003

Henderson Gordon, “Quality is Key”, Banking world, December 1992

pp 26

Higgins C Robert, Analysis for Financial Management, 5th edition,

Irwin McGraw-Hill, 1998

Higgins C. Robert, Analysis for Financial Management, 5th

edition, Irwin McGraw Hill, 1998

Kakabadse Andrew & Analoui Farhad, How to recognise & Manage

Corporate Sabotage, Jaico Publishing House, 2004

58 Quality quest


Krames Jeffrey A, The Welch Way: 24 lessons from the world’s

greatest CEO, TATA McGraw-Hill publishing company, 2002

Mc Carthy & Perreault, Basic Marketing. 11th Edition,

Oakland John S & Porter J. Leslie, Cases in Total quality

management, Butterworth Heinmann, 1994

Oakland S. John, TQM: Text with cases, Butterworth Heinemann,

2003

Patton Quinn Michael, Qualitative Research & evaluation methods,

3rd edition, Sage Publications 2002

Peters J Thomas & Waterman H Robert jr, In search of Excellence,

Warner books, 1984

Plessis Du A P & Smit P J, Management principles work book, Juta

& Co, ltd, 1994

Pugh G. David & Bacon R. Terry, POWERFUL PROPOSALS: How to give

your business the winning edge, Magna Publishing Co. Ltd, 2006

Render Barry & Heizer Jay, Principles of Operations Management,

Pearson/Prentice Hall, 6th edition, 2006

Robertson Ritchie D, “The customer-friendly way to deliver the

services”, Banking World, December 1989

Salton J Gary, Organizational Engineering, Jaico Publishing

House, 200359 Quality quest


Sleight Steven, Moving to E-Business, Dorling Kindersley, 2001

Steger B Manfred, Globalization: A very short introduction,

Oxford University Press, 2003

Tuke Michael, “Success will go to the best able to manage

change”, Banking World, December 1989

Tulgan Bruce & Martin A Carolyn, Managing the Generation Mix,

Jaico Publishing House, 2003

60 Quality quest


Unit 2

Aim

The aim of this unit is to ensure the student understands the

genesis and exodus of the quality revolution, giving an adequate

background enabling the modern TQM student to confidently

contribute new and relevant fresh ideas. In addition, the unit

has two other aims to:

a. Equip students with an appreciation of relevant quality and

human resource standards

b. Give guidance on why ISO is critical.

Objectives

By the end of this unit, the student should:

a. Know & appreciate the early Quality gurus.

61 Quality quest


b. How TQM revolution has impacted the world since inception

(1940s and 50s).

c. Know relevant project management quality standards

d. Basically interpret some key standards

A brief history of the quality revolution andits development

Any revolution has its heroes. The heroes may be many or few butat the centre of it all, a small pack of people are usually at

the core of the movement. These people, male or female are often

filled with a growing passion to see drastic change take place

whether in their life times or not. What bothers them is that the

problematic status quo is maintained without challenge. Hence,

they stand out from the crowd and in their unique way make known

their throbbing heart desires. What matters so much to them is

not fame but contribution to a noble and worthwhile cause whether

they be isolated or lone voices in the wilderness. The Quality

development story is such a case in which distinguished men and

women, some accomplished in their respective fields, have

selflessly and consistently sacrificed so much to achieve change.

It is fitting therefore to spend some time to give honour to such

62 Quality quest


venerable folk that have been the frontrunners and foot soldiers

in this noble cause that has engulfed the quality world so much.

This unit therefore is devoted to their memory as well as giving

an objective historical narrative of how things unwound to reach

where we are today in this never ending quality journey. To

effectively do this, we briefly give a history of each of the

giants as well as what they contributed and then in the last

section consolidate and summarise everything before proceeding to

the next unit.

Naturally, to kick start this process, we consider the legendary

E W Deming who in many senses is considered one of the fathers of

the quality movement especially in Japan.

63 Quality quest


W. Edwards Deming

W. Edwards Deming

William Edwards Deming was born on October 14, 1900 in Sioux City, Iowa, USA and for some time lived on his grand fathers’ chicken farm in Polk City, Iowa before moving over to Powell, Wyoming state, where eventually, he enrolled as an electrical engineering undergraduate student, successfully completing his studies in 1921. He then enrolled for and completed his Masters (University of Colorado, 1925) and proceeded to pursue a PhD

64 Quality quest

http://en.wikipedia.org/wiki/File:W._Edwards_Deming.gif


degree in mathematics and physics completing in 1928 at the Yale University, where he no doubt proved his mettle. The young graduate for some time worked in several places that included a brief stint at the Bell Laboratories (internship while PhD student) as well as the United States Department of Agriculture (USDA: 1927-39) and the United States Census Bureau (1939-1945). While at the Bell Telephone laboratories (1927), he came across Walter Shewhart’s works and was very intrigued, learning some of his earliest quality ideas in statistical control from him (Walter) which he would later develop on and apply to quality issues. Whilst working with the Bureau, a team of experts that included him were assigned to help out in the rebuilding of Japanas it was occupied by the allied forces at the time and desperately needed external help. That was about 1946/7 and Deming would later return in 1951 (under the United States Department of the Army) to assist with the census and eventually give a series of lectures on statistical control as relates to quality. But a year earlier, Deming gave many lectures that were highly appreciated by the Japanese Union of Scientists and Engineers (JUSE) due to his expertise in Statistical Process Control (SPC). He also taught some company executives that cared to hear him on quality improvement. He returned to the USA only to be re-invited and later honoured with the highest Japanese honour by the Prime Minister of Japan (1960), acting on behalf ofthe Emperor. Deming received Japan’s Order of the Sacred Treasure, second class. This was in an addition to the string of honours he had already received and was to. The earliest honour was the setting up of the Deming quality Prize way back in December 1950 for his selfless contribution to developing Japan from the atomic ashes as well as fostering the lifting Japan from

65 Quality quest


its well established mediocre quality product reputation. All thewhile, Deming was ignored and little considered in his native America and nobody bothered about what he said because soon afterthe second world war, the American multinationals with their superior products were sought all over the world and it would appear they were too busy supplying the ferociously sought after American branded products to pay attention to the lone quality voices that were shouting the sustainable answer to market share expansion. Sadly, they were too faint to be heard in the hustle and bustle of international business. As time went on however, the Japanese adopted these teachings, many of them encapsulated in Deming’s 14 points and applied them with increasing success. By 1980, the Japanese could not be ignored as the quality products coming out of Japan were exceptionally good, reliable and conformed to international standards, in many instances outstripping as well as outperforming the established international brands. Further investigations revealed that the Japanese had adopted higher standards for their goods and services which inevitably were better than what they themselves were churning out. A story is told of Car models with transmission made in Japan and United States respectively. Both these engines had similar design specifications were sold to the public but customers quickly preferred the Japanese made transmission. This puzzled the American vehicle manufacturers. After much investigation, the American car manufacturers discovered the reason why customers preferred Japanese made cars despite a similar design and same specifications. The Japanese had used slightly higher standards and thus their engines, although of the same design as their American counterparts, were slightly higher in standard by very few measuring units. This

66 Quality quest


explained why their engines were more reliable, efficient, lower defect rate, cost effective superior performance and thus preferable. But this was not the only area, they embedded qualityin about everything which irresistibly captivated the customer. In the course of time, and after much investigation, they discovered that a set of Americans were in fact behind this success story although they had gone unnoticed or recognised in their native countries. Thus, a number of companies searched and found this guru (Deming) and contracted him prevailing upon him to write the book “Out of the Crisis” though originally called “Quality, Productivity and Competitive Position” in 1982 after his theories marvellously worked for the USA as well. Deming did various works and consultancies chief among them being his work at Ford Motor Company. They hired him to advise management on howto turn the ailing company into a profitable one which he readilyagreed to do. Expecting him to started talking about quality issues and statistical control when he arrived at the firm, the man instead emphasised management action and commitment. According to Deming, about 85% of the problems in companies were caused by management action or decisions and thus he asserted that the Ford problem lay in management because if management wasnot committed or did not take responsibility, the quality programs would invariably fail. Ford tried these ideas and surprisingly turned out profitable that year and in subsequent years, to the extent of even beating its traditional arch rival and competitor, General Motors Corporation. Crysler and others were also beaten clean. Thus, he penned down the classic book, “Out of the crisis”. Deming continued to teach, lecture and hold workshops throughout the rest of his life being peacefully

67 Quality quest


gathered to his fathers on December 20th, 1993 in Washington DC, USA.

But what were his interests as well as his profound contributionsto the quality movement evolution? It would appear he led a very simple life and delighted to lead a low profile life. For one thing, he faithfully sung on a choir, played flute & drums, wrotesome sacred choral compositions, composed music & loved music as well as wrote in his spare time. This great man was simply amazing! In his life time, Deming was an American Statistician, Professor (New York University-1946-1993 & Columbia University-1988-93), author (authored “Out of the Crisis-1982-86 & “The New economics for industry, government, education”-1993), lecturer and consultant, all in one mortal! As a result of his huge contributions, Deming received a string of honours from all over the world.

As to his profound contributions, Deming hugely contributed in various ways. For one thing, he emphasised quality control through statistical means and management responsibility for effective quality management. For another thing, he selflessly taught the Japanese Scientists, Engineers and corporate executives with little personal gain. His was a labour of love. He also wrote an influential book as well as bequeathed the worldwith the famous 14 quality improvement points. In addition, Deming helped the Japanese discard low quality output and helped them appreciate higher competitive standards. This led to their international success and unprecedented economic development. Butlastly, he went to Japan more than once to teach quality matters sometimes at the risk of his life and reputation, especially after the Second World War. This was unprecedented commitment,

68 Quality quest


even if there was little to gain. Even more interesting was the fact that he was not even recognised or given due attention at home until Japan took the world business centre stage by storm. As part of his contribution, we list the now famous Deming’s 14 points as quoted by the Wikipedia website:

“Deming offered fourteen key principles for management for

transforming business effectiveness. The points were first

presented in his book Out of the Crisis (p. 23-24)

1. Create constancy of purpose toward improvement of product

and service, with the aim to become competitive and stay in

business, and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age.

Western management must awaken to the challenge, must learn

their responsibilities, and take on leadership for change.

3. Cease dependence on inspection to achieve quality. Eliminate

the need for inspection on a mass basis by building quality

into the product in the first place.

4. End the practice of awarding business on the basis of price

tag. Instead, minimize total cost. Move towards a single

supplier for any one item, on a long-term relationship of

loyalty and trust.

69 Quality quest


5. Improve constantly and forever the system of production and

service, to improve quality and productivity, and thus

constantly decrease cost.

6. Institute training on the job.

7. Institute leadership (see Point 12 and Ch. 8 of "Out of the

Crisis"). The aim of supervision should be to help people

and machines and gadgets to do a better job. Supervision of

management is in need of overhaul, as well as supervision of

production workers.

8. Drive out fear, so that everyone may work effectively for

the company. (See Ch. 3 of "Out of the Crisis")

9. Break down barriers between departments. People in research,

design, sales, and production must work as a team, to

foresee problems of production and in use that may be

encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the

work force asking for zero defects and new levels of

productivity. Such exhortations only create adversarial

relationships, as the bulk of the causes of low quality and

low productivity belong to the system and thus lie beyond

the power of the work force.

70 Quality quest


11. a. Eliminate work standards (quotas) on the factory

floor. Substitute leadership.

b. Eliminate management by objective. Eliminate management

by numbers, numerical goals. Substitute workmanship.

12. a. Remove barriers that rob the hourly worker of his

right to pride of workmanship. The responsibility of

supervisors must be changed from sheer numbers to quality.

b. Remove barriers that rob people in management and in

engineering of their right to pride of workmanship. This

means, inter alia, abolishment of the annual or merit rating

and of management by objective (See CH. 3 of "Out of the

Crisis").

13. Institute a vigorous program of education and self-

improvement.

14. Put everyone in the company to work to accomplish the

transformation. The transformation is everyone's work.

"Massive training is required to instil the courage to break

with tradition. Every activity and every job is a part of

the process." ”

Clearly, Deming has taught us lasting lessons from which we can pick some valuable lessons. One of them being to remain humble,

71 Quality quest


focused and committed to what we do best. Posterity will judge orvindicate us.

But then, we need to hurry on to consider another quality guru, who we cannot ignore, Dr Juran.

Joseph M JuranWhile Deming is remembered as the foremost quality and to some

extent management thinker of the movement, Joseph Juran can

rightly be called ‘the evangelist for quality and quality

management’. This is for the simple reason that he spent most of

his life advocating and teaching on quality both in the American

domain as well as Japanese. He was in a sense a contemporary to

EW Deming though he came later. Let us briefly trace him through

life and his marvellous contribution to the quality movement:

Joseph M Juran was born on Christmas eve of 1904 in Braila,

Romania. He was of Jewish decent and later immigrated to America

with his family in 1912 (the year the Titanic sunk) making their

settlement in Minneapolis, Minnesota, USA. As a young lad, it

appears that Juran was brilliant and thus excelled in school

especially in mathematics. His mathematics and chess genius

helped him win and dominate the chess championship at Western

Electric and later he graduated from the Minneapolis South high

school in 1920 and entered University of Minnesota where he

graduated with a bachelor’s degree in electrical engineering in

72 Quality quest


1924. The young gentleman then joined the Western Electric’s

Hawthorne works where his first job involved troubleshooting in

the complaint department. About 1925, the Bell Laboratories

trained Juran in the new sampling and control chart techniques,

which Deming and others had been exposed to at around the same

time. Juran thus joined the Inspections Statistical Department

where he and other colleagues explored, applied and disseminated

Bell Lab’s statistical quality control ideas. This activity

evidently propelled Juran to the upper echelons of the

organisation in record time. And for sure, this became reality

for in 1928 he was promoted to department chief only to end up as

division chief in 1929. In 1937, he moved to the Western

Electric/AT &T’s headquarters in New York City where the great

depression effects were severely felt.

Long before he moved to the head quarters, the great depression

of the 1930’s was around the corner and in a bid to mitigate its

impact, Juran studied law (1931-1935) though he never practiced

law. For some reason, Juran quit(resigned) from Western Electric

as well as his Government post (at Lend-Lease administration &

Foreign Economic administration) with a view to go into private

consultancy but later joined the New York University as an

adjunct Professor in the Industrial Engineering department. He

73 Quality quest


taught quality control as well as held seminars for executives

for his consultancy was alive as well.

Juran did a number of things that made him live well as well as

etch an image for himself until he retired in the 1990’s only to

die 18 years later, well aged and full of quality wisdom. He went

the way of the earth on February 28th, 2008, at ripe age of 103

years in Rye, New York.

But what were his major contributions to the quality movement and

what lessons can we draw from his illustrious career and life?

Juran made many contributions both at home (USA) and abroad

(principally Japan). We briefly state some of them and then

hurtle along to draw some lasting lessons from his legacy.

For one thing, Juran improved on the Pareto principle, which

states that 80% of the problems are caused by 20% of causes.

Having exhumed Vilfredo Pareto’s work, Juran expanded this

venerable gentleman’s thoughts to include his famous sayings on

“the vital few and useful many”. Juran believed that although the

80% problems could be sorted out by dealing with the 20%, he also

asserted that the 80% could not and should not be ignored in

quality techniques.

For another thing, Juran is widely credited for adding the human

dimension to quality management for he taught that everyone in 74 Quality quest


the company had to be involved in the quality innovations if they

were to be sustainably successful. Recall that he was for some

time associated with the Hawthorne, where the famous Frederick W

Taylor worked? The human relations scientific management trials

were done at Hawthorne and thus may have influenced Juran.

Juran can also be credited the “Juran’s trilogy” which was the

basis for the development of the cross functional management

composed of three managerial processes namely, quality planning,

quality control and quality improvement.

We can safely say that Juran was a bridge that successfully

transferred quality knowledge and practices between two cultures,

the East and the West. Juran visited Japan in 1966 and learned

about the Japanese concept of Quality Circles, developed by the

venerable Professor Ishikawa and enthusiastically disseminated

back to the West at his return. In a sense, he acted as a ‘go

between’ or matchmaker so that both sides of the world (USA &

Japan) appreciated their perceptions and approaches to control.

Probably that is why he has been dubbed the “Quality movement

evangelist” for he appeared quite zealous for quality matters.

Lastly, in terms of contribution, Juran was a writer, having

written a book called “Quality control hand book” of 1951 which

captured the Japanese Union of Scientists and Engineers (JUSE)

75 Quality quest


who subsequently invited him over to Japan in 1952, around the

time Deming had been there, though independent of each other.

While Deming focused on statistical quality control, Juran

focused on managing for quality, which later sent the American

companies into serious competitive trouble in the 1980s.

In terms of lessons from his life, we learn several, some of them

being:

1. That there is a human aspect and component to quality that

must never be ignored. People need to buy into the idea and run

with the ball.

2. Writing is important. He wrote his book as far back as 1951

and got noticed in later years ending up as a renowned author and

quality expert. He wrote many books that include the following:

“Managerial Breakthrough” (1964), “Management of Quality Control”

(1967), “Quality Planning and Analysis” (1970), “Upper Management

and Quality” (1980) and “Juran on Planning for Quality” (1988)

among other works.

3. For another thing, Juran teaches us, that ground breaking work

is not easily nor immediately recognised or even readily

supported. It needs patience, focus, hard work, resilience, zeal

76 Quality quest


and determination. He was a very zealous quality advocate both at

home and abroad.

4. Regardless of where we hail from on this terrestrial ball, we

can influence and impact the world leaving an indelible mark upon

our generation and beyond. Juran was originally Romanian but

impacted America so much, perhaps more than many American

natives. Never despise the day of small things.

5. Lastly, we learn that people approach and perceive things

differently. While Deming focused on statistical control to

quality, he approached it from another perspective but both

contributed greatly to the movement.

We can thus wrap up the life of this great legend in only a few

words, live the conviction that you espouse and your works will

follow you now or posthumously. We need more people of such

calibre.

But then, our work is scarcely done, we must hurry on and

consider several more quality gurus. We next consider Philip

Bayard “Phil” Crosby.

Phil CrosbyOur next great contributor in our chronicle of quality gurus is

Philip Crosby, popularly known as “Phil” Crosby. Crosby came

77 Quality quest


slightly later than both Deming and Juran as he was born on June

18th, 1926 and died on 18th August 2001 aged 75.

Not much is known about Crosby’s early life except that he was a

business man and author of one extremely famous quality book

called “Quality is free” which was published in the nick of time

when many American companies were struggling and losing market

share to the Japanese who had come of age and were churning out

superior quality products at a far cheaper price. Crosby worked

as Quality Control Manager at the Martin Company at the Orlando,

Florida plant where he initiated the ZERO Defects concepts which

would eventually result in mass cost savings (30% scrap cost

reduction) and significant reduction in the overall rejection

rate (25%) during the Pershing Missile program. Crosby simply

insisted in doing a good job the first time and thus reduced

return jobs thereby cutting costs. Instead of focusing on quality

control, his eye was fixed on defect prevention while doing a

fantastic job the first time. Crosby had a stint at ITT before

retiring to management consulting in 1979.

It was in that year that he published his famous book earlier

alluded to above in which he advocated among many things, the

need to prevent defect and install as perfect quality systems as

possible. In other words, Crosby made much about the systems as

much as the process. At a time when the crisis was getting 78 Quality quest


deeper, this voice came as a possible solution to market share

loss which had the potential of revolutionalizing entire

industries. Thus Crosby offered a number of important pregnant

points which would prove very handy to the ailing companies in

the states. For instance, he offered four major principles in

addition to his 14 step quality improvement program. These are

summarised in the statement “Doing It Right the First Time” or

DRIFT for short. Here are the principles as stated by the

Wikipedia site:

1. The identification of quality is conformance to requirements

2. The system of quality is prevention

3. The Performance standard is zero defects and finally,

4. The measurement of quality is the price on non conformance.

These points are heavily pregnant as they bring out a lot of

principles which if properly analysed and applied led to

phenomenal results. For instance, he taught that the price to be

paid for no conformance was high because repeat jobs, market loss

and inefficiency would be the order of the day. In as much as the

initial costs for quality program initiation were high, it was

ultimately cheaper in the long run.

79 Quality quest


After a distinguished career of both business man and consultant,

Crosby, like any other mortal gave up the ghost on August 18th,

2001 a few weeks before the September 11 catastrophe.

But what were his major contributions to the quality movement and

what lessons can we draw from his life? These are soon told and

then we wrap up transitioning to another quality contributor.

Firstly, Crosby was a prolific writer who excelled in

communicating his quality ideas both in the print and audio/video

media. His writings can be found on the internet, written

articles and books. For instance, he wrote a book called “The Art

of getting your own sweet way” published by the McGraw Hill

publishers in 1981, while another title, “Quality without fears”

published by the same publishers. You would do well to visit the

following sites to see some of his works:

http://catnyp.nypl.org/record=b4578224 and

http://worldcatlibraries.org/oclc/13761&tab=details to sample

some of the man’s might. The take home lesson is that we should

take time to write for posterity.

In the second place, Crosby was a well seasoned professional and

business person who ventured into consultancy after proving his

mettle in the industry, thus he did not merely trumpet theories

he was not fully conversant with.80 Quality quest

http://worldcatlibraries.org/oclc/13761&tab=details

http://catnyp.nypl.org/record=b4578224


Thirdly, He was dead correct when he asserted in his book that

quality is free as well as why he preferred to prevent defects

rather than react to them later.

Lastly, we learn that we should dare venture into consultancy

when we have strength rather than when our present employers

vomit us. Crosby was a man of many parts and galvanised himself

to get the best out of his talent. Unfortunately, most of us try

out something when we have no option and our energy far spent

elsewhere.

Collectively, these three are called the ‘Big Three’ who devoted

themselves to ensure quality becomes the main thing rather than a

by the way. Interestingly, each of these operated independently

of each other but significantly contributed to the quality

movement though each of them emphasised a different aspect.

Other equally important quality gurus who contributed

significantly to the movement

But then, these gurus were not alone in their quest to achieve

high quality output. There are a number of lesser known quality

gurus that the world has not paid much attention to. Different

authors mention different people having mentioned the ‘big

three’. We briefly mention them below and then proceed to

81 Quality quest


consider some significant quality standards before we wrap the

unit with some labour related standards.

Kaoru IshikawaThe first we mention on the lesser known gurus is Kaoru Ishikawa,

a native Japanese national who made huge contributions to lifting

quality standards in Japan including the Quality Circles that

Crosby got excited about. As earlier mentioned Kaoru was born in

Tokyo, Japan in 1915 and eventually worked his way through the

education structure (Engineering undergraduate degree, 1939)

before joining the working world where he distinguished himself,

ending up as a University Professor as well as an influential

quality management innovator best known for having introduced the

fishbone diagram. This is used in the analysis of all industrial

processes as to their usefulness and quality.

His major contributions

Ishikawa was an amazing man of many parts. He learnt Deming and

Juran’s principles and translated them into Japanese as well as

integrating them into his work. He also expanded the management

principles of ‘his mentors’ achieving outstanding success at

Nissan and other places he worked.

For another thing, he introduced the concept of Quality circles

in 1962 in conjunction with the JUSE. 82 Quality quest


Thirdly, he introduced the fishbone cause and effect diagram,

sometimes known as the Ishikawa diagram.

In the fourth place, he put much emphasis on the ‘internal

customer’ as well as a shared vision for better company success

and efficiency.

Fifthly, he wrote a number of valuable books that include titles

such as “QC circle Koryo”, “How to operate QC circle activities”

and “Introduction to Quality Control” (1990).

For you to see some of his works, visit the following site:

http://en.wikipedia.org/wiki/kaoru_ishikawa

Having laboured tirelessly in quality circles, Kaoru succumbed to

the cold hand of death in 1989 having left an indelible mark on

the Japanese quality landscape. Indeed, he can rightly be

numbered among the ‘big four’ because he was a giant in his own

right.

Armand FeigenbaumThe next giant we mention is Armand Feigenbaum. Little is known

about him except that he worked hard in quality circles to the

extent that he has been numbered among the “big four” by some

writers. Specifically, he is well known for pioneering work

towards cross functional team concept, wrote a book on “Total

83 Quality quest

http://en.wikipedia.org/wiki/kaoru_ishikawa


Quality Control”, 40 steps to quality improvement as well among

many others.

General Douglas McArthurThe last (though not necessarily in contribution significance) of

the great quality gurus is the venerable General Douglas McArthur

though he was of a different sort. He is not known to have

written or taught quality issues in the sense we know of Deming

and others but he lived out the quality philosophy. About 1946,

post the Second World War, the allied forces still occupied Japan

and McArthur was left to govern the country. During his tenure,

the General emphasized quality so much to the Japanese and would

not settle for anything less than the best. This emphasis helped

shape some of the Japanese thinking and probably explains why he

directly or indirectly brought Deming, Juran and others to Japan

so that they could buttress his quality convictions and views.

This American really worked hard before he left Japan much later.

As to his contributions we can say that his one major

contribution was to emphasise quality throughout Japan which paid

dividends later on and was in keeping with what gurus like Deming

taught-Management action impacts greatly on quality. One lesson

we learn at least is that we need pragmatic action oriented

84 Quality quest


people that will run with the ball as well as champion any cause

they elect to pursue.

Later Developments in quality circlesFrom a small insignificant stream, the quality movement gained

momentum as standards begun to be set, as well as Associations

concerned with quality. We briefly mention some of the

Association as well as standards.

As earlier alluded to, the Japanese introduced the Deming prize

on quality improvement and application in 1951. Others were to

follow which included the Malcom Baldrige National award (USA,

1987) and the European Excellence award among others.

As for associations, the JUSE was one of the earliest, then the

ASQ and European among many. All these emphasize quality in

various shades and approaches and were born out of a growing

concern to set quality standards as well as to see a better world

with higher quality output. Some of these also directly propagate

the classic teachings of theses venerable quality gurus we have

mentioned above though primarily their concerns are quality

standard related.

85 Quality quest


Quality StandardsIn the quest to improve and standardise quality across the world,

various standards have been set and continue to from time to

time. By that token, quality definitions vary from association to

association but most of these centre around conformance, fitness

of use and reliability of the product. In general, each standard

sets a benchmark producers must consistently equal or scale if

they are to be considered of an acceptable standard. As such,

most of these standards focus on zero defect as well as good

processes that guarantee a good product at the end of the

production line. Other standards focus on service delivery

standards which ensure that the customer is well treated as king

and repeatedly satisfied. For our purposes, we shall pick out

some standards set by the International Standard Organisation

(ISO) which are relevant and relate to project management. We

make a brief comment and leave the rest of the discovery to the

student to explore and comment upon.

Some standards and best practices relating to project

management

ISO 9000

This standard is one major standards used by companies today to

ensure quality. First established in 1987, the standard focuses 86 Quality quest


on ensuring compliance to standards or conformance quality as it

is sometimes called. The ISO 9000 series has a number of

standards under it prominent of which are:

ISO 9001: Guidelines for companies engaging in design,

development, production, installation and servicing of services

or products as the case may be.

ISO 9002: Akin to ISO 9001 but does not include companies engaged

in design and development.

ISO 9003: Includes companies engaged in final testing and

inspection.

ISO 9004: Covers quality management systems application

guidelines.

In the USA, some of the ISO 9000 series has been issued under

another code called ANSI/ASQC & Q 90 series although they are

essentially the same in nature and application.2

Some of the areas ISO 9000 looks at includes:

Management responsibility

Documenting quality procedures through systems

2 Refer to Stevenson’s book, Production/Operations management by IRWIN page109for more details on this matter.

87 Quality quest


Review customer contract ensuring they bring together product

offered and required.

Design process through quality control systems

Document control

Conformance to standard and specific requirements

Use of statistical techniques where necessary and ideal

There are many other aspects that lead to ISO 9000 certification.

Collectively, all these requirements seek to guarantee quality

delivery to the customer at all times.

ISO 14000

ISO 14000 touches quality issues as well as focuses on

Environmental matters of ever increasing importance. The

Environment is a big issue today and no entity worth its salt

dares ignore this standard. As the interview with Mr Peter Njobvu

of BP Zambia will reveal, ISO 14000 is as key to business

survival as it is to sound project management and implementation.

Today and tomorrow, an Environmental Impact Assessment (EIA) will

increasingly become compulsory as people seek to mitigate

anthropogenic environmental backlash as well as planetary

88 Quality quest


degradation. Therefore, any project about to commence must adhere

to this standard that gives guidelines and standards to be

observed before, during and after the project phase out. ISO

14000 centres around environmental audit systems and the

following aspect constitute this standard:

Commitment

Environmental Policy

Environmental review

Organisation & people (staff)

Targets and objectives

Environmental management program

Documentation and manual

System reviews

Environmental audits and finally,

Operations Control & records

PRINCE 23

3 Refer to Harvey Maylor’s book, ‘Project Management’, pp 399 89 Quality quest


This relates to the bureaucratic standards and controls towards

quality control as relates to project management with the acronym

‘PRINCE’ standing for Projects IN Controlled Environments.

Basically, it is a structured way of planning and managing

projects of whatever size with a view to derive the best project

results possible, lessons learnt and best practices for future

application. It is a form of a ‘laboratory’ to test projects in

structured controlled environments in relation to the project

cycle especially applicable and recognisable in the UK. It

focuses on the “product” although does not guarantee success.

PRINCE2 is a recognizable standard for process rather than

outcome quality, assuming the correct procedures lead to good

anticipated results. It is worth mentioning that PRINCE2 has

eight key process areas as listed below:

Directing the project

Planning a project

Starting up a project

Initiating a project

Controlling a project

Managing product delivery

Managing the stage boundaries and finally,90 Quality quest


Closing a project or Phase out

As shall be evident later, some aspects of this standard project

cycle are followed by many successful projects around the world.

Once the above are followed, this is dubbed “good Project

Management” because all the due processes will have been followed

to reach the expected outcomes. PRINCE2 has other equally

important components worth exploring but we leave this to the

student to pursue. Different views and schools of thought abound

over whether to subscribe to PRINCE2 or not but this is beyond

the scope of this module, suffice it to say that this is an

approach which gives some direction and shape to project

management. For more detail on PRINCE2 and other relevant issues,

visit the following websites: www.prince2.com and www.spoce.com

BS-ISO 10009 (1997)

This standard houses specifications & guidelines relating to

quality plans of project management.

So much then for the ISO standards, we proceed to consider some

aspects relating to human resources.

In a sense, part of the ISO certification (especially ISO 9000)

includes not only what quality processes are in place 91 Quality quest

http://www.spoce.com/

http://www.prince2.com/


guaranteeing good quality output but also indirectly or other

touches on how staff in the system are treated to get the best

results. They are “within the process” as it were and hence there

is hardly any justification warranting a separate unit on labour

standards as relates to Human resource in a project. Viewed from

another perspective however, it is prudent to state some

standards that need to be observed at every project stage to

ensure smooth implementation as well as avoid disruptions brought

about by litigation and disputes, as the case may be. Hence, our

consideration is not in detail but will centre around some

International Labour Organisation (ILO) standards which apply to

all entities regardless of their magnitude, form, shape or

direction. To adequately deal with these standards, we simply

list them and give a brief description leaving the student to

investigate further. It must be stated that any Project Manager,

let alone employer will do well to familiarise themselves with

these and apply them as they work. We must also state that we

have made no attempt to trace the historical developments of

these standards but encourage students to search out these. We

limit our investigation to the contents of these standards. Here

we go then:

92 Quality quest


1. Basic Human rights such as freedom of association, freedom

from forced labour and freedom from discrimination (e.g. with the

advent of the HIV and AIDS pandemic)

2. Employment which includes matters pertaining to employment

policy, employment service and vocational training/guidance.

3. Conditions of work or service. This alludes to wages, job

security, work hours, occupational health and safety, social

services, housing and leisure, social policy.

4. Social security. This has specific reference to the well being

of employees and covers matters relating to medical care,

sickness benefits, maternity, invalidity, old age, survivor’s

benefits and compensation in the event of injury in the course of

duty among many others. In the developed world, this may include

migrant workers as well.

5. Industrial relations. Every entity employing a sizeable

number of people is expected to allow the formation of a trade

union, if they meet the minimum standard. Industrial relations

aims to bring about harmonisation and efficient work flow through

collective bargaining and negotiation between management and

staff. The Project Manager of a small project may not worry much

about this one but must none the less observe the basic human

rights as well as equitably reward project workers.93 Quality quest


6. Employment of women, children and young persons. These are

different standards and tackled separately in the law but are

grouped here in the interest of covering as much ground. In the

past, and to some extent today, there is ongoing concern

revolving around unfair treatment of these vulnerable groups,

sometimes denying some of them work when they deserve it or

forcing them to work when they are clearly under age, amounting

to abuse.

7. Labour administration: This focuses on the work and how it is

administered. Specifically, it includes labour inspection and

statistics which inform and guide effective labour

administration.

As has been demonstrated, there is much to be learnt and mastered

by the Project Manager ensuring that they excel and above board

in their labour administration. These are ‘must know’ standards

and are thus non-negotiable. As later hinted on, staff come to

work with a specific aim and motive each day and must thus be

well managed lest they quit and pick up something they consider

more meaningful and rewarding.

94 Quality quest


Summary and conclusion of unitWe have thus seen the known pioneers of the quality revolution,

who for a long time were lone voices in the wilderness but their

work has increasingly come to be appreciated today. Much has been

said about the American quality ‘prophets’ but the last,

Ishikawa, is equally to be numbered among the ‘Might four’. In

their own way, each of them contributed hugely to the quality

flash flood we have today though they emphasised different

aspects which when consolidated as well as integrated bring about

an unprecedented amount of synergy, far outweighing their single

separate contributions. Collectively, they have left an indelible

mark upon history. Theirs is a blazing trail worth pursuing.

Entities are more successful and competently compete on the

global market partly because of the classic timeless all

pervasive higher quality product and service output. But there is

still yet much to be learned because many well meaning and

sincerely TQM applying organisations still flounder on the

business scene. Well designed and implemented projects do not

reach their goals or transition on time, why? This and many other

questions are yet to be sorted out by future generations, since

the foundation has solidly been laid. At that time, perhaps the

picture will tilt from ‘one third TQM applying entity success

rate’ to two thirds and eventually 100 percent, though the latter

95 Quality quest


may not easily be achievable because entities will each be

consistently improving further, outdoing each other and thus

triumph over their rivals. Perhaps the project management and

human resource success rate will significantly improve though,

all things being constant and equal.

Below is a summary of the Quality movement giants and their contributions.

Heizer &

Render

Wikipedia

web site

Name Contribution Year(

s)

Name Contribution Years

(s)

W

Edward

Deming

*Formulated

14 points for

management to

accept

responsibilit

y.

*Advocated

good systems

*Emphasised

on written

1982-

1986

W Edward

Deming

*14 points

for

management of

quality

*Wrote

influential

book “Out of

the crisis”

*Introduced

the Plan-Do-

1982

96 Quality quest


specification

s

Check-Act

concept

(PDCA).

Joseph

Juran

*Taught on

“Quality

Trilogy”

*Taught the

Japanese

quality

*Insisted

that top

management

commits

itself to

quality and

own the goal.

*Advocated

for teams and

staff

involvement

in quality

matters

1951- Joseph

Juran

*Championed

companywide

quality (CWQ)

*Quality

fitness for

use

concept/defin

ition.

*Dubbed the

‘evangelist

of the

quality

movement’ due

to his zeal.

*Wrote

“Quality

Control hand

book”

1951

97 Quality quest


(companywide

quality)

*Exhumed and

improved on

the Pareto

principle

Armand

Feigenba

um

*Wrote

influential

book, “Total

Quality

Control”

*40 steps to

quality

improvement

Quality all

pervasive

*Influenced

the

development

of cross

functional

Kaorou

Ishikawa

*Introduced

the Quality

Circles

concept.

*Introduced

the Fish bone

or Ishikawa

diagram for

industrial

process

analysis (to

determine

root causes).

*Wrote

several books

in Japanese

1960

1982

98 Quality quest


team work

concept

e.g. “QC

Circle Koryo”

& “How to

operate QC

Circle

activities”.

* Translated,

expanded &

integrated

concepts of

Deming &

Juran.

Phil

Crosby

*Wrote

influential

book “Quality

is free”

*Low quality

is more

costly

*Zero defect

“There is

absolutely no

1979 Phil

Crosby

*Introduced

the ‘Do It

Right the

First Time’

concept

(DIRFT).

* Was

prolific

writer and

authored many

99 Quality quest


reason for

having errors

or defects in

any product

or service”

he often

asserted.

books

including the

book “Quality

is free”

Burnes (Managing Change pp 121) has well researched on the

Japanese quality revolution and names a few critical actors who championed the quality crusade. We have summarised this in the ensuing

table below:

Name Major Contribution Year(s)

General Douglass

MacArthur

*Ruled Japan for

some time after the

atomic bomb of 1945

in the rebuilding

phase. The General

insisted on improved

and improving

quality output in

whatever was done

1946-

100 Quality quest


and thus

significantly

fostered the quality

quest (Allied forces

occupied Japan

then).

EW Deming *Lectures on quality

matters, resulting

in the famous 14

quality points for

management to

consider. He helped

Japan recover from

the atomic bomb

catastrophe by

firmly implanting

statistical quality

improving ideas.

Deming was honoured

with the highest

quality reward for

his distinguished

service to the

1950-

101 Quality quest


Japanese and mankind

in general.

Joseph Juran *Also did a series

of quality improving

lectures but

emphasised that

quality had to

permeate everywhere

(companywide) to the

extent that quality

was embedded within

the system. He was

later honoured with

the highest quality

reward in Japan

before returning

home to the USA.

Juran died recently

on February 28,

2008!

1951-

102 Quality quest


Clearly, we can see that the stream is now a wide river which

consistently breaks its banks. Quality is indeed the main and

only thing that any entity needs to succeed. Projects,

businesses, schools, churches etc, rise or fall on this quality

stone. It is now the cap stones of all success.

As we considered the labour standards, we have no doubt that they

are international standards that have been set which govern the

way human resource are managed and harnessed. It was abundantly

clear that none of us can escape or evade their shadow as they

are at the very core of our existence and being. Breach them at

your own peril and you shall soon land behind bars or indeed

adversely affect your project implementation. You may not be an

expert in listing or tabulating each of them in order of merit or

importance but one thing is sure, you must have an intelligent

appreciation of them as well as apply them well. In fact, rules

and laws exist to make our work better, more efficient and

enjoyable. If these regulations are observed and well

administered, we have no fear that the project or program is up

to a good start and will definitely focus on project

implementation rather than wasting time needlessly jumping from

one court case to another.

Finally, we trust we have in a sense given a bird’s eye view on

the quality landscape. We also trust that this brief historical 103 Quality quest


treatise has laid a foundation and good back ground upon which we

build the subsequent superstructure. The ensuing unit will begin

to open up ground directly relating to project management. Having

surveyed the short TQM rise and progress, we proceed to consider

quality in its essential nature as well as why it is of essence

today and tomorrow, stay with us!

Case study 1

The Mongu hospitality industry race

It came with a bang on the Mongu business scenario around 2002 quickly supplanting the already existing established hospitality

business houses. At first, everyone considered the Cross Roads

guest house as a mere joke by some dreamer that would soon fizzle

out but they were wrong. Starting out with a small out let at the

cross junction as one enters Mongu town, it was clearly an

underdog from the start because the owners were viewed as

amateurs with little known clout and business eye for that line

of business. What made it worse for the start up entity was that

it was not very well positioned because of its close proximity to

104 Quality quest


a police compound, a noisy & crowded bus stop, a community hall,

a noisy bar and some crafts men nearby. The place had very little

parking space which effectively would discourage some traveller.

Given these and other disadvantages, it was evident that the

Cross Roads was destined to die in a short space of time, but

again, critics were proved wrong for some of these perceived

challenges turned out to be positives rather than negatives.

The entrepreneurs behind this business worked away quietly behind

the scenes building their business, establishing linkages and

aggressively marketing the entity in various ways that included

posters, door to door visits, brochures and offering facilities

that other established entities did not have. Most of all, the

owners ensured that the lodge rooms and services were of world

class quality. For instance, the rooms were spacious, airy, well

furnished, clean fresh linen, privacy guaranteed, security, self

contained rooms and above all state of the art satellite TV

service in each room that was rare in those early days. Another

aspect they invested in that made them stand out was that of

later establishing a powerful conference room which they had

lacked for a while. With those aspects in place, there was no

looking back as people begun to trickle in one after the other

with increasing frequency and delight. For another thing, Mr &

105 Quality quest


Mrs. Kalonge4 were all the time on site and ensured that they

treated their customers with utmost timely courtesy. They also

ensured that customers were given a good treat, well served and

paid cash rather than credit. An exceptionally disciplined staff

team was engaged who devoted themselves to the business though

the staff turnover was rather high in the early lean years.

By 2005, the Cross Roads boasted of two other lodges that had

been built up from scratch with the same brand name, though now

located in superior and Porsche places of Mongu befitting

people’s status. Cross Roads 1 was the start up giving birth to

Cross Roads 2 &3 which eventually gave birth to Cross Road 4, the

best of them all, targeted only for the Top brass of society and

Chief Executives. It was the natural choice for the affluent as

one needs ready cash in their pockets to patronize that place.

The interesting thing is that whilst other formerly well

established hotels and guest houses were struggling to offer even

the basic necessities like running tap water, warm bathing water

or a decent meal, the Cross Roads grew from strength to strength!

Having established the brand name strongly in Mongu, practically

the corner of Zambia, it was time to expand to the major cities

of Zambia. That would be a hard shot and risked serious failure

and waste of resources but the Kalonge’s were determined to make 4 Not real name. Actual with held for security reasons.

106 Quality quest


their mark. In 2006, they ventured into the heart of Lusaka,

bought a plot in Olympia/Roma area, built from scratch and

personally supervised the work. Mr. Kalonge, being meticulous and

particular about detail literally camped on site and ensured

things were on track while his wife managed their properties in

Mongu. She occasionally visited the project site to check on the

progress and quickly headed back. Thus went the progress such

that by the end of 2006, the place was basically ready for

official opening to the public. This latter stately Cross Roads

structure was even more sophisticated, beautiful, spacious, high

standard and about everything was exotic and imported from the

far flung places of the world. The atmosphere was homely, fresh,

calming and very inviting to any visitor. As is the practice of

many organizations, they rushed to try out this new “joint” by

having endless workshops, lodging there as well as hanging out

with colleagues. The Cross Roads is now a house hold name in

Lusaka, with its unique, high quality service offerings, far

outstripping the earlier rivals back in Mongu and Livingstone.

One would ask, what has made this once little known Cross Roads

brand such a house hold name in such a short time? A number of

reasons can be summoned to attempt to explain this but the

107 Quality quest


following clearly radiate as one carries out an interview with

the proprietor or tracks the business development.

Firstly, Mr. & Mrs. Kalonge are serious entrepreneurs who know

what they want in and out of life, to make just ‘a bit more’

money! At every turn, they look for opportunities to make an

extra buck.

Secondly, the entrepreneurs are focused and serious with what

they do. They are of one mind and deal in cash only, no credit is

allowed and ensure everyone pays up on time. Thus, their cash

flow is sound most of the time.

Thirdly, the Cross Roads are a high quality class chain of guest

houses offering nearly everything a traveller would look for,

comfort, World class quality courtesy, space, good speedy service

and security. Others fall far short on that score.

Fourthly, the management are very innovative, reading the times

and able to respond to the times. Bureaucracy is yet to be its

lot. Many old incumbents suffer from red tape, bureaucracy or

rigidity. Other smaller entities suffer from the founders’

syndrome effects and cannot possibly innovate unless the owner

sanctions that move.

108 Quality quest


Fifthly, the Cross Roads chain has a clear strategy, goal and

direction, to be the best of the best! Others are buried in

personal scuffles, in fighting or witch hunting merely reacting

to what is around the environment to the extent that they do not

have the muscle to chart the course.

Sixthly, The Cross Roads have a class, standard and high quality

services which others do not have. The Cross Road owners will not

settle for mediocre standards or anything less than the best.

Rising from obscurity around 2000, the Cross Roads brand competes

favourably with any international service provider currently in

the country. Gone are the days when the best only belonged to the

multinationals!

Lastly, the Cross Roads has been consistent in its development,

expansion and evolution. Its networks are good and has high good

will from the banks, customers and others who not only offer it

credit facilities but market it to the rest of the world.

Indeed, you get quality for money at any Cross Roads outlet.

Where it goes from here is hard to tell but one thing is sure,

the sky is the limit!

© Billy C Sichone 2008

109 Quality quest



What has distinguished the Cross Roads chain rest houses from the

rest?

What one thing has made the chain a resounding success?

Do you think the Cross Roads strategy is sustainable? Justify

your answer.

Why have other old incumbent business houses failed while the

Cross Roads has succeeded?

Is being a novice or one not specialised in a line of business

justification enough to stay away from a competitive business.

What one quality do you admire about the Kalonges and why?

What do you learn from the Cross Roads case?

Suppose the Cross roads empire was making plans to enter the

international Market, say expanding to Namibia or Angola, what

would you advise them to focus on in their entry strategy abroad?

Case study 2Interview with Mr Dabson Mwendafilumba, MA

This was carried out by Billy Sichone with Mr Dabson Mwendafilumba, CEO of the Hostels Board Zambia, a chain of lodgesdotted around Zambia. The objective of the interview was to

110 Quality quest


discover how and why the said lodges were doing well under the Leadership of Mr Mwendafilumba, given a very dark background whenthe lodges once were not as good as they have suddenly become in recent years. Thus, this interview centres on strategic thinking,management, planning as well as quality issues. Interview date: October 2001 & July 2004

Venue: Mongu Lodge & Nyati Close, Rhodes Park, Lusaka

1. What, in your own word, is management?

Ans: In my own words, I would define Management as the process ofmanaging resources ensuring that there is no management crisis. In other words, I could say ensuring that all resources under your case are properly harnessed and used to their intended end. 2. What various styles of management do you know?

Ans: I know several but I will give some that immediately come tomind. I must state first of all that management styles depending on the context as well as the team/hierarchical structure is framed. Now as for the styles, I know the following:a) Coaching managementb) Autocratic managementc) Laissez faire and lastlyd) Team building management.

I must also state that in Africa, management is quite different from that which you find elsewhere. It is a power distant type ofmanagement so that there is fear instilled instead of friendship in relations between supervisors and subordinates. As I have mentioned, this differs from the Western world where people are addressed by their first names, showing that they are colleagues

111 Quality quest


and comrades.

3. Which one do you espouse or prefer?

Ans: Management is based on team building these days and to succeed, we need to depend on each other. Therefore, I prefer andpractice this type of management. 4. Does team work or spirit exist or work in Zambia?

Ans: It has worked in the lodges that I am Director of. All our managers meet quarterly to discuss and create friendship by working together. When we meet, we have fun together and ensure we create a conducive environment where we are all at liberty. Every meeting, we begin in prayer which has helped unite us. In order to spice or enrich our meetings, we visit tourist attractions, engage in recreational team building activities likeswimming which in effect create dependability on one another. After refreshing, we meet once again to brain storm and focus on one thing, ensuring there is a shared vision in common as well asbuy in. As the leader, I ensure they all see the ‘Star of Bethlehem’ akin to what the Magi of old did.

5. How is the management today different from that of long ago? (What are the trends in management circles you have observed?)

Ans: Traditional Management wasted time on fighting each other and standards as such would start to decline. This cannot be tolerated now due to increase in marketing and competition. Furthermore, in a traditional management setting, new ideas are not encouraged or let to blossom but in the current context, you must continuously be coming up with new ideas which will be generated by different people contributing from within the team.As for the trends, Management in Zambia is changing at a slow pace as top management still tend to hide information from

112 Quality quest


subordinates that would enlighten and build them up. Information is still the private preserve of the few thus curtailing anyone one from effectively contributing. Furthermore, in Zambia, the power distance between supervisor and supervised is still large although some modifications exist in pockets here and there but by and large, things are still pretty much the same. In addition,management does not come with one mind but different individuals are busy pursuing their own things at the expense of organizational development indicating very little buy in and no shared vision. That’s the picture in Zambia as I see it. But the good news is that we are changing the picture in the Lodges and Iam sure we are far ahead of the others although admittedly we have our own challenges along the way.

6. How has been the transition from Traditional to modern management?

Ans: It hasn’t been easy admittedly but there have been pockets of resistance here and there as people dread to leave the comfortzone. If we are to be successful, there must be willingness to change, though change is not an easy undertaking.

7. How long have you been in management?

Ans: Well! I have been around quite a bit!Specifically, I have been in management circles since 1989. I have risen through the ranks and was executive officer but I am now the Executive Secretary or Chief Executive Officer (CEO) of the Hostels Board in Zambia.

8. What about in the Hotel industry how long have you worked there?

Ans: Like I mentioned, I have been in the hotel industry as far back as 1989 where I have most of my professional life.

113 Quality quest


9. How do you manage as a professional running a Government owned(Quasi - Government) business? I am sure there is a lot of political interference. I would be interested to know how you play the balancing act.

Ans: It is a very delicate exercise I must admit because every move, decision or act that you do is meticulously watched but I am pleased to let you know that we do not run like bureaucratic Government. In as much as we have some bureaucracy but Government has graciously allowed the Lodges to somewhat operate independently by and large. This has enabled the lodges to make significant headway because this isviewed as a strategic institution to the Government as well. Abalance must be struck in relying on the Government and at thesame time implementing modern management principles.

As for the balancing act that you mention, so far we have no problem emanating from political interference, in fact, the Government has been very supportive, desiring that the lodges improve and become self sustaining.

We have challenges in running the lodges one of them being the delayed payments which makes it difficult for us to raise the lodge standards where they can effectively compete with othersin the same industry. However we have put some strategies in place to ensure we get where we want to go.

10. How much interference from Government is there and how do youhandle it?

Ans: An amount of interference is there but not so much and can be handled with some tact and wisdom by all of us. It is all about knowing who is who and what is at stake as well as how to respond. Strategic thinking is key.114 Quality quest


11. Talking about survival of Hotel industry, just how do you survive, being a parastatal?

Ans: We have taken a number of steps to ensure we remain competitive. Here are some of them.The first is that we have embarked on rehabilitating all our lodges around the country, I am sure you have seen the Belvedere and Long acres lodges, these are master pieces. For lack of resources, we are doing this piecemeal and in stages as we generate resources as well as funding from Government. Since we are 100% Government owned, originally all the money generated used to go into Government Treasury. This brought its own dimensions and challenges. However, now the lodges have their ownaccount which they use for operations and reinvestment. This is avery positive step in the right direction.

The second is to plan at National level but ‘Think local’. We take all the variables into consideration such as place, target market and so on then set our pricing.Our aim is to improve our service quality to world standards, if possible.

Therefore, in response to the survive question in the hotel industry, we must note that few lodges in our chain actually makelosses at the moment (2004).In the event of a loss, other profit making entities offset that loss. Further, because of the Team work culture we have cultivated, it is paying dividends for us. In fact, we are actually making profits. 12. Hmmmm… this sounds good I am tempted to ask what place

marketing takes in your organization since it is quasi Government.

Ans: Marketing is important in this economic set up we find 115 Quality quest


ourselves in. We have been aggressive and use personalized marketing to satisfy our customers. For instance, we know our clients’ birthdays, send cards when it comes around periodically call them and keep the lines “warm”. In addition,our staff ensure they master people’s names that have lodged with us before and that has a bonding effect and fosters loyalty.

13. How much of the market have you captured?

Ans: We can safely say that many people prefer lodges to hotels because they are far more ‘homely’ and for the moment, the lodges in Zambia collectively place it at about 65-70% of the lodge market while others hold the rest. We are correctly positioned for the moment and one hopes we can improve on thatrecord. To capture market, many use different strategies but we focus more on quality because it is the best competitive weapon rather than price. Treat customers well, provide for them and I am sure they will come round again!

14. I note you use the word “Strategy” quite often, what is strategy to you and what does it mean? Ans: Strategy is the means of achieving your goals and objectives.

15. How do you apply it in your management skills?

Ans: Strategy cannot be applied once and then you forget about it. You must keep in mind what the competitor’s strategy is. Knowhow and when they are to apply their strategy and ensure you craft a better strategy that will outwit them. In other words, strategy should be kept fresh and organic so that it can remain relevant and effective as we know that competition is constantly rising. One such strategy that we have utilised in quality

116 Quality quest


ensuring that everything that we do is as perfect as possible to more than please the customer.

16. Before I ask about TQM let me ask how your organization has used this weapon to survive the tough economic times in competition to other new industry entrants and other industry incumbents.

Ans: We have used it very effectively especially that we are a government entity. Our strategy is that they give a lifespan of assets by having a plan as well as lobbying for items we require in advance. In that way, we have beaten the bureaucracy and emerged victors in a ferociously competitive industry.

TQM! That concept entails having high quality throughout the organisation and tends to have a lot of advantages for the organisation that practices that. In the hospitality industry, one cannot evade quality because we just have to be the best at all times. At our lodges, we emphasize that every employee must put quality first in whatever they do because if we serve our customers well, then our business improves too. They will go out there and tell many others to come and lodge with us. We may not be TQM certified but we strive to be the best of the best among the lodges.

17. What is your strategy for survival?

Ans: Our survival plan is to always read the times and proactively respond before others do.

18. How do you motivate your staff?

Ans: It has not been easy at the lodges because the personal incomes are low but then, monitory gain is not the only

117 Quality quest


motivator. To beat this, we make sure we recognise staff that areoutstanding in their work as well as ensure that all members feelpart and parcel of the organisational success.

19. I note you read a lot and have a lot of management concepts up your sleeve, can you recommend just one book for one to read so that they become as astute as you are?

Ans: I would definitely give you many titles but I highly recommend one...have you heard of or read a book called “The Seven Habits of Highly effective people” by Stephen Covey? Oh it is a marvellous book and deals with about everything any manager would like to know. It has impacted and changed my life a lot.

20. Does that explain the secret of your success.....?

Ans: It certainly has contributed! Covey brings out very important concepts such as having the end in mind as well as being proactive which concepts I have sought to integrate in my management. Every day before I start work, I sit still in my office chair and just relax while I think through issues. When I arise, I will have sorted out a lot of things. So, for sure, Covey has been a mentor and coach to me. 21. Finally, what have you studied and where? And what is the wayforward for the lodges?

Ans: I have studied some hotel management at NIPA as well as other studies in house. Lord willing, I hope to pursue further studies in future in the same discipline. As for the way forward,we would like to be the best, far mush better than we were yesterday. People always want to see innovators and as such, innovation is very vital for success. Secondly, we want to embrace change and be never content for the dynamic times in which live will not permit us to sit still. We must constantly be

118 Quality quest


improving. This is the silver bullet to success. Thirdly, we wantto embrace technology as fighting competitors is more than just having cash but mental. We need to be thinking all the time as weexploit cutting edge technology in the industry. Lastly, we want our customers to be able to book without being physically present. In other words, technology will help us as we install online book services. In that way, we shall get ahead of the packand be a resounding success.

Thank you so much Mr Mwendafilumba for according me this special interview realising that you are a very busy executive.

You are very welcome and I wish you well! Watch us in the press as we make inroads!!!


What do you think about the Hostels Board strategy?

Comment on Mr Dabson Mwendafilumba’s leadership and business

acumen.

“A strategy is organic and not static” Discuss.

What one trait distinguishes the lodge chain across the country?

Do you think top management attitude towards impacts on quality

effectiveness?

119 Quality quest


If Mr Mwendafilumba left the lodges, would they continue to

succeed and improve? Give reasons for your answer referring to

the case study.

Revision exercise

Give a brief history of TQM and its early pioneers.

Why is it called the “Quality revolution”?

List the “big four” quality forerunners and what contribution

they added to quality discourses. Write brief notes about each of

them as well as their significant contribution.

Why is‘Quality’ often referred to as the “silver bullet” in

business circles?

What are ISO standards and why are they significant?

Comment on ISO 9000 & 14000. What do they focus on and how do

they impact on project management?

Explain how the use of standards has helped you in improving

quality at your organisation.

List at least two organisations in your country that use ISO

standards (or are certified) and which standard(s) they use.

120 Quality quest


Visit this site: http://www.miliken.com and state what awards

this corporation has won and why.

Undertake an interview at one of the quality practicing

institutions in your locality or country.

What is PRINCE2 and what is its significance to project

management? Is it relevant to your country? Give reasons for your

answer.

Find the latest winning case on the Malcom Baldridge National

quality award site (http://www.quality.nist.gov) and draft a

short report. Explain what made them/it stand out.

BibliographyBamberger Michael & Valadez Joseph, Monitoring and evaluating

social programs in developing countries: A hand books for

policymakers, managers, and researchers, World Bank Institute

1994

Banking World Magazine, December 1989 issue

Boydell H. T, The identification of training needs, British

Association for Commercial and Industrial education, 1971

121 Quality quest


http://www.miliken.com/


Burnes Bernard, Managing Change, FT Prentice Hall, 4th edition,

2004

Buttrick Robert, The interactive Project Work out, 2nd edition,

Pearson education, 2000

Certo C Samuel & Peter J Paul, The Strategic Management Process,

Auste Press/IRWIN, 1995

Henderson Gordon, “Quality is Key”, Banking World, December 1992

issue pp 26

http://.www.asq.org

http://www.corporate.titzcarlton.com/en/about/goldstandards.htm

http://www.prince2.com

http://www.quality.nist.gov

http://www.spoce.com

http://wwwisixsigma.com

Husband J I, Labour administration, International Labour Office,

1980

ILO, Collective Bargaining, International Labour Office, 1960

ILO, Grievance Arbitration, International Labour Office, 1977

122 Quality quest

http://wwwisixsigma.com/

http://www.spoce.com/


http://www.prince2.com/

http://www.corporate.titzcarlton.com/en/about/goldstandards.htm


ILO, International Labour standards, IL Office 1978

Kakabadse Andrew & Analoui Farhad, Corporate Sabotage, Jaico

Publishing House, 2004

Maylor Harvey, Project Management, 3rd edition, Pearson

Education, 2003

Oakland John S, Total Quality Management, 3rd edition, London:

England

Patton Quinn Michael, Qualitative Research & Evaluation methods,

3rd edition, Sage publications, 2002

Peters J Thomas & Waterman H Robert Jr, In Search of Excellence,

Warner books, 1984

Schroeder G Roger, Operations Management: Contemporary concepts

and cases, 4th edition, 2008

Stevenson J William, Production/Operations Management, IRWIN, 5th

edition, 1996

123 Quality quest


Unit 3

Aim

The aim of this Unit is to enlighten the student on the nature

and importance of quality in general with a particular bias

towards project management.

The unit also aims at stirring the student to embed quality in

all their business processes throughout life.

Objectives

By the end of this module, the student should:

a. Define Total Quality Management (TQM)

b. Explain why quality is important for success

c. How quality can help in effective & efficient project

management.

d. Explain why quality is cheaper though perceived expensive.

124 Quality quest


Quality, its essential nature and necessityThe world has witnessed an unprecedented improvement in quality output in the past many decades. At one time, what mattered was

mass production, assuming the customer would like and purchase

the product at whatever price it was pegged at but with the

advent of the market economy, capitalism and international

business, leading to globalisation, the ball game has radically

changed with the customer emerging as the determinant of what

sells and to some extent what is produced. Today’s customer

demands high quality and value for their money or else they

boycott the goods. Similarly, those that would sponsor a project

or some particular undertaking make much of what and how their

money is being spent. They are meticulous and will not fund a

coin unless they are certain that they will get what they desire.

Similarly, in large production corporations, much attention is

given to what is churned out because they are aware of the dire

consequences of producing the correct or saleable product. Share

holders and others key stake holders will not countenance a

perceived needless waste of their resources which ultimately

impacts on their dividends and income. Given the above scenario

as well as the importance of this concept, it is only fair and

wise to consider it in detail so that we define matters as well

as be on the same page.

125 Quality quest


Quality, what it is?In almost every Operations Management book on the shelf today, one scarcely can escape stumbling across the acronym “TQM”. The

obvious focus is on the middle letter “Q” for quality because it

is perceived as the long sought after panacea for corporate and

project success. It is heralded as the silver bullet to success

by many entities for several decades now. But what exactly is

TQM? For now, we do focus on the “Q” which, in our view is the

defining element in our study. What then is quality?

Simply defined, quality has to do with standards of doing

something or functional effectiveness of a product (i.e. in

relation to product conformance & performance; Conformance +

Performance = Quality). This quality could be measurable or not

but is a bench mark against which all other products or services

in that range will have to be weighed or measured against. In

other words, quality is the intrinsic worth of something that has

been produced in tangible or intangible form. For instance, when

a guest arrives at the hotel, within a few seconds of touching

the reception, s/he must instantly be courteously attended to by

someone at the counter and within three minutes, the customer

should know whether they book in and be on the way to their room

or heading to another hotel if bed space is not available. That

three minute “Machine cycle,” to use computer language, or lead 126 Quality quest


time is what an ideal hotel should adhere to or scale if they are

to be considered high quality, assuming that is the set standard.

Thus, to reach that efficient level, the hotel must heavily

invest in repeatedly training staff to achieve the desired goal.

Once well treated, the customer will tell a thousand others who

will probably flock to the said hotel. Quality has a rippling

effect leading to exponential stupendous growth of some entities

while others sink and fizzle out of the industrial competition.

Similarly, in project and human resource management, how and when

a project is executed speaks volumes to key stakeholders

especially the sponsors. Since a project has a definite life span

and targets set from the outset, the people monitoring will be

giving ticks whenever something is achieved within the agreed

time frame and a crucifix whenever the correct thing is done at

the wrong time or not done at all. All these small, small things

matter and speak of the quality of implementers a project has.

Depending on the donor, the project may or may not be cancelled

if certain conditions are not adhered to. If worsening

bureaucracy and red tape grips an organisation, then expect the

high achieving professionals to book the first flight out to the

competitor company. Internal customers (employees) also have

aspirations, goals and desires which need to be fulfilled and if

that seems a far-fetched dream in their present positioning, they

127 Quality quest


will either look for a better paying job elsewhere or manoeuvre

their way to another post within the organisation thus

positioning themselves to achieve their goals. If the latter

proposition is not attainable, then they leave, resign or start

their own firm where they become their own boss.

Thus we have seen that whereas in the past, quality talk was

nearly unheard of or treated as a “by the way”, the world today

has changed. Everyone is demanding quality and value for their

money consistent with the benefits they will derive from the

product or service. As globalisation continuously takes its toll

on the world with cultures, tastes and perceptions clashing on

the international scene, there is need to produce high quality

goods that will satisfy almost anyone on this terrestrial ball.

Gone are the days when what was deemed “good enough” for Zambia

was automatically perceived good for everyone. Times and tastes

have changed, thanks to the all pervasive and forceful electronic

media that is fast helping to bring about a homogeneity of taste

and perceptions. What is viewed acceptable for a Muslim today is

most like going to be for the Hindu or Christian, but not

necessarily in the past perhaps. This is largely because of the

relentless work of the marketer who works on peoples’

perceptions, attitudes, views and desires as more information

about the salient features of products are made known to all.

128 Quality quest


They literary bombard the mind. For instance, if someone bought a

black and white TV today, their neighbour would be surprised

because there is something better, the colour TV! In fact, today,

people have moved on to the type and size of screen you have

because colour is now basic! A plasma screen is the talk of the

times now and tomorrow, it will be something else. Thus, if a

person purchases a genuine Phillips TV set, their basic

assumption is that it is of high quality with practically no

defect lest they send it back on warranty! Before we proceed to

consider some TQM definitions in the next section, we quote some

worthy authorities that have endeavoured to define quality

without making any comments:

“The ability of a product or service to meet customer needs”


pp 194

“Quality is meeting the customer requirements, and this is not

restricted to functional characteristics of the product or

service. Reliability is the ability of the product or service to

continue to meet the customers’ requirements over time” Oakland &

Porter, Cases in TQM, pp ix

129 Quality quest


“The totality of features and characteristics of a product or

service that bears on its ability to satisfy stated or implied

needs” American Society for Quality www.asq.org

“Quality has dimensions of the facilitating good, tangible

(explicit) service, and psychological (implicit) service”

Schroeder R, Operations Management, PP 150

“Meeting or exceeding customer requirements now and in future”

Schroeder R, Operations management, PP 147

From the above quoted definitions, it is very clear that there is

hardly one concise definition. However, certain parameters are

common such as customer satisfaction, functional use and

reliability. We can thus coin a simple quality definition

derived from the definitions above as follows: “Quality is the

sum total of all desirable traits in a given product or service

fit for use, and according to customer taste as well as desires”

(Billy Sichone, 2009).

For purposes of this discussion, we focus on TQM which we now

turn to define.

Some TQM definitionsQuality, yea, Total Quality Management (TQM) is a rather

difficult concept to define in capsule form. It is easier to

130 Quality quest

http://www.asq.org/


observe and describe the effects rather than explain it in words.

None the less, it is essential to define as closely as possible

what we are dealing with or are up against. Many have endeavoured

to define TQM but we break it down into its constituent elements

before we construct one comprehensive definition.

The three elements are:

a. Total: this refers to the quality being all pervasive,

covering the entire entity, throughout the system processes.

It is total in the sense that no part of the entity is left

unaffected or touched by quality.

b. Quality: These are standards set to which all products and

services must adhere. Quality connotes fitness for use and

customer satisfaction or efficient functioning according to

agreed design and specification. Anything less than those

bench marks is considered below standard and therefore

discarded. Thus, it means that these are minimum standards

which winning organisations must scale to reach higher

heights and be differentiated from the rest. Three traits

are considered to constitute quality namely, conformance,

performance and satisfaction to customers.

c. Management: This has an allusion to the aspects bordering on

harnessing resources to reach their intended end. In this 131 Quality quest


context, we are talking about managing this all pervasive

quality in such a way that the entity maximises on reaping

the best results. The management may include setting

standards, indicators, benchmarks and parameters that will

indicate whether the project is on course or not, as the

case may be.

From the forgoing, we note that quality must be managed and be

all pervasive in the institutional processes if any tangible

dividends are going to be reaped. In other words, we can define

TQM as “that holistic and all pervasive high standard output of

any process that ensures that the best results are achieved in

the most cost effective and efficient manner at the right

time.”(Billy Sichone 2009). We can further add that TQM is an

ongoing and improving process not an end in itself. It is a means

to an end not an end in itself. The moment TQM becomes an end in

itself, that moment the quality standards plummet because

innovation dies as well as slothfulness creeps in. It is on going

in the sense that quality is defined by customers whose tastes

mutate over time and hence the need to change with the times.

William Stevenson has defined it as “A Philosophy that involves

everyone in an organisation in the quest for quality, with

customer satisfaction as the driving force”5. This definition

5 Stevenson J William, Production/Operations Management, IRWIN, 1996 pp101132 Quality quest


brings about the company wide aspect to quality as driven by

customer needs. Others, Oakland & Porter has defined it as being

“concerned very much with moving the focus of control from

outside individuals to that everyone is accountable for their own

performance”6. Kotler & Keller have defined TQM as “an

organisation wide approach to continuously improving the quality

of all the organisation’s processes, products and services”7.

Still another has simply defined it as “Total dedication to the

customer”8.

But then, we have to consider another definition given by the

Wikipedia website which states the following: “TQM is a business

management strategy aimed at embedding awareness of quality in

all organisational processes. TQM has been widely used in

manufacturing, education, call centres, government, and service

industries, as well as NASA space and science programs”

Perhaps the last and probably most comprehensive definition comes

from the International Organisation for Standardization (ISO) #

8402:1994. It is quoted at length below:

“TQM is a management approach for an organisation, centred on

quality, based on the participation of all its members and aiming

6 Porter L & Oakland J, Cases in TQM, PPx7 Kotler and Keller, marketing Management, Pearson, 2009 pp 7908 Certo & Peter, The Strategic Management Process, 3rd edition pp 197

133 Quality quest


at long-term success through customer satisfaction, and benefits

to all members of the organisation and to society.”

Clearly from the definition above, many of facets have been

touched upon or implied that are quality related. In the quest to

establish and maintain uniformity, the ISO drew up this near

universal definition from which all other definitions are

derived. Let us observe a few points from the definition above:

Firstly, TQM is a management approach or way of doing something

towards an intended end. It is not a passing fad, craze or

rootless wild theory but a pragmatic and workable path towards a

desired haven. In other words, it is a deliberately chosen way of

doing something.

Secondly, this approach is centred around quality. Said

differently, the centre pivot of this management approach is

quality which is all pervasive in the entire process or entity.

Thirdly, this approach is participative, all inclusive and

consultative ensuring that the best practices are identified,

tested and adopted to get to the next level. In other words, no

individual has the monopoly of knowledge, truth or best practice

but various people pool their ideas and collectively settle on

the best practice which they all wholeheartedly embrace and run

with the ball. This builds continuity and owning of the process. 134 Quality quest


Top management should show commitment and run with the ball, thus

generating enthusiasm and interest in the organisation.

Fourthly, TQM is not a “quick fix” solution but a process aiming

at the long term good of the entity. As the processes are

vigorously and rightly pursued and applied, the system is refined

ending up in the unique best practices which in themselves

enhance and foster competitiveness and high quality output. The

moment an entity relies on a static TQM program, that day they

book a place in the corporate bone yard. In a ferociously

competitive and mutating world, dynamism and an organic strategy

is of essence. TQM is a process rather than an event and must be

treated as such if to succeed. Always remember that TQM is a

management strategy and thus an approach towards an end.

Fifthly, the approach is somewhat a silver bullet to success

provided the customer wants and tastes are at the centre of all

that is done. Thus, it is critical not only to treat the customer

with due care and attention but to ensure that they are in the

driving seat, defining and determining what should be done, when

and where. Even in project management for instance, the major

customer is the sponsor or donor that would like to see

qualitative results consistent with what they envisaged from the

start. TQM ensures that the customer is repeatedly and

consistently satisfied so that they develop product loyalty as 135 Quality quest


well as woe many other would be clients and customers. The mass

production “one size fits all” era in a sense misled the world

for a season because it was based on the premise that the

customer would want to buy what the manufacturer produced in bulk

regardless of the quality or price but today, we know better, the

customer has power and is steering the ship to where they want.

Any entity ignores the customer at their own peril. In a bid to

involve the customer, companies and projects are integrating

partners, stakeholders and customers themselves right from the

conception and design stages to the final product. In this way,

only what the customer dictates is produced and thus saving

millions of valuable dollars producing a non saleable product.

Sixth and last component builds on the fifth in that having

satisfied one customer, a myriad others are which ultimately

satisfies the society and community at large. Thus, a good TQM

program will ensure that all stakeholder concerns, fears, desires

and wants are more than adequately addressed and met. In the case

of an intended project, the target community is walked through

the intentions from the scratch so that they not only buy into

but identify their needs and wants which they want addressed by

the project. The easier option for the sponsors is to observe a

need from their desk and quickly mobilise resources, do a

fantastic intervention (sometimes minus an Environmental Impact

136 Quality quest


Assessment- EIA) and have a white elephant after the project

phases out. Then the puzzle takes its rounds through the

corridors of power who eventually blame the community of being

backward, laissez faire, indifferent, unappreciative or careless

when the problem was actually during the start up phases when the

actual and real partners (community) were left out and thus

became spectators to the very end. This explains why vandalism

easily creeps in and preventive maintenance is a night mare in

such communities. But where all partners and stakeholders are

appraised before, during and after the project, with their full

participation, they will most likely own and run with the ball

long after the project phase out, thus guaranteeing project

sustainability even after close out. The reason is because in the

latter case, everyone felt the project was of benefit to them.

Having brought all those points defining TQM, we now attempt

constructing a definition and could be something like this: “TQM

is the sum total of all organisation wide integrated approaches

towards ensuring that quality is embedded in all the systems,

hierarchies and functionaries in the institution thereby ensuring

that the best output is achieved.”

Thus, we have briefly dissected the ISO definition which is

relevant to all aspects of the post modern world. Since we engage

in different projects from time to time, this definition ought to137 Quality quest


be a good guide to setting our goals and standards for world

class results.

Bases on which quality definitions rest

Quality, as we have noted has various definitions and leanings

depending on who is defining it or what they are looking at.

Generally, quality definitions are based on three areas namely:

User based

Manufacturing based and,

Product based

Thus, if the user or customer is defining quality, they will

emphasise some aspects such as satisfaction while the

manufacturer will concentrate on specification, fitness of use

and conformance. The Product based quality definer will look at

attributes such as design, usefulness and functionality of the

product. Each of these have their own valid definition and thus,

when defining quality, it is critical to bear those facts in

mind, bearing our target group in focus as we develop, produce

and market the product.

138 Quality quest


Quality, its necessity & benefitsThe question that begs answering at this stage is why the fuss

about TQM, I mean, why bother about this quality craze? The

answers to this question are soon found for they are all littered

every where for all to see and recognise. For the purposes of our

structured study, we collate all these disjoint elements together

in point form so that we consolidate our dossier. Without doubt,

TQM is here to stay and in a sense unavoidable for the simple

reason that we live in an ever improving world which makes much

about product standard quality. Some countries that were once

notorious for mediocre quality products have drastically changed

and are now fostering the quality crusade. Even China, with its

varied quality goods in the same range is fast making adjustments

towards eliminating the poor quality strata products upholding

only the top class. This is positive for good business image and

goodwill. Others however, are resolute to stick to the same old,

tried and tested obsolete standards and ancient paths that will

not take anyone anywhere, anymore!

That said, it is critical to state that quality being relatively

perceived is a dynamic concept that needs constant incubating and

refining. The idea “microwave” concept is good because the ideas

can easily be defrosted and altered to suit the times, being

malleable in nature. In response to the million dollar question

139 Quality quest


as to whether quality is necessary, we give an affirmative and

resounding YES! Quality is definitely of essence because of the

reasons we advance below:

a. Fine results: If the project has been struggling to achieve

high class results in the past and an appropriate quality

system is integrated into the current processes, it soon

begins to deliver the required results. Over time, the

entity’s image improves thus attracting more donors,

sponsors or would be partners. One project the writer worked

on struggled to get certain processes right and was almost

giving up when a particular staff joined the team armed with

a different but more effective approach. The new technique

was tried with phenomenal success. In another case, the

project was having serious funding hiccups but once the

system was improved and competent staff hired, the scenario

changed completely in record time. Quality did the trick.

b. Timely results: Have you ever seen a project or any entity

for that matter that repeatedly succeeds from strength to

strength and height to height? Have you wondered why some

individuals seem to fly in their own orbit and complete

assignments in record time while others lamentably fail? The

answer probably lies in proper quality systems adopted. Such

individuals and systems ensure something is done correctly 140 Quality quest


the first time while continuously improving on the existing

systems. This author has worked in both timely delivering as

well as malfunctioning teams. The difference between these

two is the quality of the systems in place. While in the

one, the product churned out is near perfect as it goes to

the world, in the other, repeat jobs are the order of the

day.

c. Repeatedly satisfying customers & stakeholders: One secret

that any entity has to embrace and adopt is to keep

customers happy and satisfied all the time. If for some

reason, they are displeased or feel neglected, they react in

various ways. One of the many ways is to simply withdraw and

“invest” elsewhere hoping to get a better return for their

money. High quality systems ensure that stakeholder needs

are noted and prioritised so that they in turn not only

repeatedly offer more support but successfully market the

entity to the outside world.

d. Marketing and lobbying tool: For a long time, the marketing

function has not been appreciated but as the world

increasingly globalises, there is a near universal

realisation that marketing plays a critical role in building

business, yea, multiplying effect on the organisation. One

of the hallmarks of marketing is superior quality to would 141 Quality quest


be customers which quality is defined by the person desiring

it. They demand value for money. Thus, if the entity places

a high premium on quality, the expected output will most

likely be good & pleasing to the customer. Once repeatedly

satisfied with the product or service, they voluntarily tell

ten others who eventually subscribe. If the opposite is

true, then expect a back lash. One of the best marketing

tools to exploit today is consistent high quality coupled by

fitness of use. This eventually cuts down on the overheads

as quality creates demand for a long time to come.

e. In keeping with the globalising world trends. As earlier

intimated, the global trends are consistently and rapidly

mutating implying that if an entity is to remain buoyant,

let alone be noticed, there is need to rapidly “pull up the

socks” to the extent of outdoing rivals. For instance, donor

funding is no longer as obvious as it once was, it has to be

“fought for”! In other words, it is highly competitive and

only the best bidder will win the tender or impress a would-

be donor. It is no longer good enough to have an elaborate

structure or good internal control system, there is need to

demonstrate that your products or services are superior to

other competitors, and this is only possible with the right

142 Quality quest


quality systems in place. Once again we assert, ignore

quality at your own peril.

f. Fosters product differentiation and niche etching: Product

differentiation has to do with fashioning your product,

although similar to others competing brands, different in

little, little things and features. A Niche on the other

hand is a special curved out position that distinguishes

your product from the rest, making it practically

inimitable. In project management, branding is important as

well to distinguish the project from the rest. In other

words, the project administered by your company must have a

unique tag upon them so that any would be sponsor

immediately gets interested. Quality is once again the key

in the quest to achieve this goal.

g. Gives value for money: Quality is what makes people pay a

premium for what they perceive a good product or service.

They will never pay an extra Ngwee for anything they

consider mediocre or below the expected standard. But if the

quality is consistently good and pleasing equal to the price

paid, expect them to go a mile further because they are

receiving what they perceive as something worth their money,

even if it is slightly more expensive than ordinary. In

project execution and management as well, if they are 143 Quality quest


impressed or believe in the processes and outcomes, their

will stake their monies towards that cause. Quality is that

key ingredient that turns the wheels towards satisfaction

land.

h. Eliminates defects: Good quality systems embedded throughout

the organisation rather than individual star performance is

what ultimately counts, as advocated by Deming, Juran and

others. Phil Crosby especially championed the elimination of

defects from the systems so that only the best and desirable

products come out at the end of the production chain. He

taught and advocated that it was better to be proactive

rather than reactive to products churned out. We can apply

this same principle to other areas of management in general

for products or services. Half the time however, many non

TQM compliant systems and projects do not take this

seriously and would rather work on a return job. This is

common place in many public projects in Zambia such as road

rehabilitations/construction, structure renovations,

borehole drilling among many. In the long run, these repeat

jobs are terribly costly and have a telling effect on the

country or project efficiency. If a zero defect policy and

system was adopted and actualised from the start, there

would be marked progress and improvement in the country.

144 Quality quest


Once again, a high quality culture and practice does the

trick.

i. Enables continuous improvement through lean and agile

systems: To achieve maximum efficiency and effectiveness,

entities have to repeatedly re-engineer themselves. This

process may include many things such as structure

reorganisation, job evaluation, downsizing among many. These

changes are constant in the face of an ever and rapidly

mutating global context. To remain relevant and above board,

quality has to constantly be enhanced. The bar must get

higher each succeeding year as it were. The quest for higher

quality entails constant and consistent re-auditing how the

system can be made better so that the project becomes,

agile, fluid, responsive, lean and relevant to the time. If

a higher quality culture is lacking, then expect contentment

and mediocre standards to set in.

j. Cuts costs: A cursory view of the initial high expenditure

when the quality systems are introduced may seem

astronomical and warrantless tempting the critical decision

makers to either ‘hijack’ or waylay the process. In other

instances, as Brown and others have demonstrated, simply pay

lip service because the quality process is not priority as

it is perceived needlessly too expensive. Still in other 145 Quality quest


cases, there is outright opposition to this system as the

pay back, akin to the Marketing function, is not immediately

tangibly visible. But the truth of the matter, as Juran and

others have demonstrated, is that cheap it is expensive in

the long run while initially expensive qualitative

initiatives are cheaper as well as profitable in the long

whole. The rationale is simply that the dividends drawn from

the high quality output are greater than from cheaper but

lower quality initiatives. Further, the initial cost once

apportioned/spread over the entire project life turns out

cheaper because there will be no or fewer return jobs, good

will heightened and more job contracts easily won.

k. Fosters efficiency/effectiveness: If the processes are right

and good systems are securely in place, then, expect good

products churned out at the right time thus enhancing

efficiency as well as effectiveness. A faulty system makes

the entity to repeatedly redo the same thing when it would

have progressed to do other equally important activities and

thus covered more ground. In projects where splendid and

world class results have been recorded, chances are that

quality is an integral part of the operations and everything

is in sync for superior quality results. For instance, at

NASA where several projects run concurrently, chances are

146 Quality quest


that they have the best quality systems in place, the best

teams as well as continuous Just in Time (JIT) systems

exploited. That is why the safety record and efficiency are

some of the highest in the world, although other competitors

are currently emerging. Be that as it may, the people at the

NASA projects work tirelessly like beavers to beat their

dead lines, despite the hurdles and challenges they meet

along the way. Similarly, we can safely assert that embedded

quality systems and procedures contribute significantly if

taken with the right view, approach and support.

l. Corporate growth, market expansion and advancement: An

organisation that means business will do any and everything

to ensure it gets ahead of the pack. In a similar sense, a

project desiring a contract renewal, extension or further

funding will ensure its deliverables are produced on time

and of the highest standards. In that way, customers, donors

as well as other interested parties will not only vouch for

them but eagerly support them. As a consequence, there is

marked improvement, fewer cash flow hiccups, more

development pace and well as heightened good will and

loyalty. These positive traits give birth to other benefits

in due course.

147 Quality quest


Implications and importance of qualityWe briefly list some perceived implications of quality

generally because the previous section has in a sense dealt

with and explained some aspects of the implications:

Company reputation improved and exalted.

Product reliability as well as minimises liability.

Global implications (such as International profitability &

Competitiveness)

Cost cutting and efficiency

Product loyalty fostered

Now that we have defined quality as relates to TQM, it is high

time we transitioned to the next unit where we delve into

project and program management. Adjust your gears as we move

to higher ground!

Case study 1

BP Zambia, 1999

INTERVIEW WITH MR. PETER NJOBVU OF BP ZAMBIA ON TQM AND148 Quality quest


PEOPLE MANAGEMENT

29.01.99, NDOLA.

Introduction

An interview was carried out with Mr Peter Njobvu of BP Zambiaon the 29.01.99 with a view to find out the Total Quality

Management (TQM) & People Management practices at BP and to what

extent TQM has permeated through the entire BP network. At the

interview time, Mr Njobvu held both the Association of Certified

Chartered Accountants (ACCA) & the Chartered Institute of

Management Accountants (CIMA) qualifications and was the senior

Depot Manager in the northern part of Zambia. He has since

relocated to Cape Town, South Africa to take up a more senior and

challenging job. By that token, he travels extensively in the BP

network. During his student days he was several times elected the

best overall student world over and at one time was the best

Management Accountant in BP in the Southern Hemisphere. Peter is

indeed an international quality leader.

QUESTIONS

149 Quality quest


B. What, in your own words, is Management in general.

P. From the textbook? Management is basically about coordinating,

controlling and directing resources to a predetermined goal. So,

it is the Marshalling of these resources towards a specific goal

put down in the budget. Apart from Marshalling, there is a lot

more and more emphasis on people management in these days.

B. What are the current management trends today?

P. In the US, where individual performance is valued, there is a

shift to try and unlock the potential in the individual. The

belief is that if you take care of an individual, then you will

have taken care of the results. This will mean that the care is

both at work and beyond, ensuring that the home conditions are

made as comfortable as possible so that the worker does not spend

time thinking of how to survive but rather concentrates on one

thing. This trend is coming in Zambia though at a slow pace. In

BP, we realize this and are at the forefront implementing modern

management practices that will motivate and unleash the hidden

150 Quality quest


potential within a person. This can be done in various ways such

as rewarding, complementing or continuous training of staff so

that they can meet the challenges that lie in the way. As such,

this builds capacity and greatly motivates people so that they do

their best.

B. Why the emphasis on people management?

P. Like I said, people are viewed as the most important asset of

any organization and if they are satisfied, they will improve in

their output. This means taking care of both their welfare and

environment in which they operate. People say that these days,

the buzzword is 'Team Work', and this has been a buzzword for

sometime now in the management circles and for a good reason.

They are saying that the original hierarchical structure is in

efficient and must be broken down to give way to a learning

approach.

B. Do you think that Team Work is the best approach to management

and why?

151 Quality quest


P. For a long time to come, we are yet to find a mode of

management that is better than teamwork because in a team

setting, all the people are qualified with one leader who is

basically a boss but does not come out as such but rather is a

team player as well. In the Accounting firms for example, all the

members are qualified professionals so that none is above the

other but as they share ideas, the output is by far more and

richer than if one person were to work. Teamwork emphasizes the

fact that people should be allowed to express themselves,

brainstorm and bring up all sorts of ideas. There is a belief

that 100 lousy ideas are better than none. If you get ideas from

all sorts of people, including those on the floor, you will get

great ideas.

B. What is your current job?

P. I am a Senior Depot Manager - north managing the northern

operations though I do not manage a deport here in Ndola, as

such, I supervise depots in Mansa, Kasama, Mpika and many other

areas in the north. I also handle the public relations aspect as

152 Quality quest


well.

B. That sounds like a lot of work, how do you manage?

P. I have a team under me, with whom I seat, plan, brainstorm and

work out all things. I have Engineers, Accountants and all sorts

of staff under me.

B. Has the teamwork culture permeated into BP? How successful and

applicable has it been, if at all? (To what extent)

P. Teamwork is applicable to every organization and BP as an

organization emphasizes so much on teamwork that when they are

employing new staff, there will be an assessment on their

teamwork abilities. Teamwork hasn't been in Zambia a long time

but in European countries, it has been practiced for quite a

while. In Africa, we still have a long way to go, as we still

have problems with it probably due to culture and background. And

for that reason, teamwork doesn't seem to be working too well. We

still have a group on top that can't be touched while the

153 Quality quest


operatives in the middle to fix below are forced to receive

commands. As a result you have a culture where people will not

accept correction or advice but busy to please the boss. As BP,

we are trying to discourage it. Various efforts have been made

such as shared ideas to get the methods of best practice. I have

attended some in the region and they continue to take place, they

come up with really good ideas.

B. How do they respond to the Team/ TQM approach?

P. Very well although I sometimes have problems due to the

hangovers people have from the past. They always want to revert

back to the past practices because they felt they have always

done the job in a particular way. The new methods seem to

interfere and seem a bit more difficult. It is extremely

difficult to change them over a short period of time, but what I

have done positively is to occasionally go down on the work floor

and find people in there natural habitat and where possible,

suggest ways of executing a process better. I am careful not to

seem to impose things by asking them "Don't you think it could be

done better this way?" In that way, I deliberately breakaway from

the traditional box mentality where you impose your own ideas on154 Quality quest


staff who, in the final analysis don’t own the process as a

result. I go almost one and a half hours every day to the shop

floor to interact with people and in that way foster teamwork.

B. That's very nice, would you call it.... management by walking

around.....?. How often do you do this?

P. Yes, if you like, it is very effective and I make sure that I

go out on the shop floor for one and a half hour everyday just to

familiarize and acquaint myself with people who may ordinarily

feel uncomfortable to visit me at the office. Then we are dealing

with people on a personal basis rather than giving instructions

from the top. In the end, this opens them up and you get better

results.

B. Now, although we have already alluded to it, what, in your own

words, is TQM?

P. What I think is that TQM is the process of management where

you affirm that our processes and procedures guarantee almost155 Quality quest


that at the end of the chain or production line we are going to

be churning out high quality products, increasing performance and

defects reduced to zero. The emphasis of TQM is really on

procedure upon procedure not an individual person. In other

words, other than finding out who went wrong, TQM emphasizes that

we find out whether the processes are correct. The system must

ensure that no defect is introduced or allowed to exist.

B. What is the importance of TQM?

P. It ensures that there is no defect or redoing of something and

thus cheaper.

B. Is TQM practiced in BP Zambia? What about in South Africa and

Europe?

P. In Zambia, we haven't really applied TQM, I think, to that

level where we can say that we have done it, although at our

plant in Kitwe, we are running a system which more or less on the

lines of TQM, an ISO based system - International Standard

156 Quality quest


Organisation (ISO 9003). What ISO 9003 basically deals with is

that whatever you are doing must be documented in such a way that

if someone comes with no previous connection, they will be able

to follow through without a problem just by observing what you

are doing, you should look it up and ask whether it is ok. These

processes are designed in such a way that at the end of the day

they eliminate chances of defect, ensuring that whatever is being

churned out is an assured perfect product, with very little or

normal conformance to standards.

B. To what extent is it practiced in BP?

P. We are still trying to cultivate it into our system.

B. How long do you envision it will take root in Zambia?

P. It will take sometime in Zambia for it to reach international

levels but we are determined to foster its development, if we are

to remain competitive.

157 Quality quest


B. Now, we are running short of time, but could you briefly tell

us some of the hurdles you have encountered in Implementing TQM?

P. The problems are always on the attitude of people who think

the procedures are just too long and are tempted to use short

cuts to achieve the same goals. The problems are basically

attitudes.

B. What are the goals of BP in the coming years?

P. The company's immediate vision is as follows:

Financially, we hope to double the 1997 profits by the year 2002.

But then in terms of quality health and safety issues, BP wants

to be like they say, "Our policy is to be friendly, cheap, high

quality and do no harm to people, no damage to the environment".

So in terms of what we want to do in health, safety and

environment, there is the environment audit standard that we are

following. We are also going for another environment standard

that is to do with environment management from ISO, and as BP we

are saying, we have to produce petroleum products that are clean

158 Quality quest


to the environment. Our motto is "Energy and Sustainable

increase.

B. Finally, on a personal note, you have done both the ACCA and

CIMA, which one of the two emphasizes TQM more?

P. Objectively, CIMA leans towards management than ACCA and

therefore by the same token, you have more of TQM coming in CIMA,

although both of them refer to TQM.

B. Thank you Peter, for giving me this interview despite the

early hour I came.

P. The pleasure was mine.


What do you think about BP’s quality initiatives and approaches?

What does the moto “Energy & Sustainable increase” suggest to

you?

159 Quality quest


What does TQM focus on?

How important are ISO standards to BP as well as the

environmental concerns?

Do you think BP is a safe haven for quality procedures (i.e.

TQM)?

Do you think BP really cares about quality and the environment?

Document from the case study.

Mr Peter Njobvu alludes to ISO 9003, what does this standard

concentrate on?

In your own words, why has people management suddenly taken a

centre stage in the recent past/decades?

What is a “Buzz word” and how different is it from a fad?

Why haven’t traditional approaches to Management worked well as

compared to the modern trends?

Comment on Mr Njobvu’s leadership and management style.

Case study 2

Asahi Breweries, Ltd

160 Quality quest


In 1949 when Dai Nippon broke up, it signalled a new era for thebrewery industry in Japan in that the once dominating giant

snapped into two regional companies, Asahi in the west and

Sapporo in the east. This breakage, seemingly insignificant at

the time, was a land mark because it was perfect fertile ground

for the Kirin company, once an under dog, to flourish as it

remained the only national player worth its salt.

The ensuing months and years saw Kirin emerge from oblivion to

become a major player. This was because the dismantled Nippon

became regional and thus the two companies had to start all over

again establishing them selves as separate entities. This is the

most difficult part in brand establishment. Further more, Kirin

was strategic in its approach as “it read the times”, and moved with

the trends in terms of marketing and customer approach. For

another reason, the Kirin brand was better placed and tasted

better given the contemporary scene. Kirin’s brand was of superb

quality, which quality propelled Kirin to the top of the market.

Product loyalty naturally followed. In the third place, the lean

companies also contributed further to this battering as they made

certain serious blunders. For example, Asahi made two near fatal

mistakes by firstly, allowing its distributors be used by another

company-Suntory. This led to a situation where the Asahi brand

being laid aside in favour of the other brand. The second mistake161 Quality quest


was their continued focus on a stagnant market. Over the years

the market tastes and preferences had been changing while the

company remained insensitive, neither customer focused nor

strategic in approach. Rivals went ahead and made strides towards

meeting customer desires by changing products, packaging, new

aggressive marketing methods and market/product research. These

innovations were taking place on the same customers, though in a

different generation. In short, the market remained stagnant

while the Asahi market share slipped from minor to insignificant.

As the years rolled on, it was a matter of time, Asahi was on the

on the way to the company abattoir.

This gloomy picture thus far painted persisted for a years, all

the while loudly proclaiming the imminent Asahi demise. But just

at the brink of death that is when things turned right round.

Asahi, under new management, made radical decisions which begun

to steer the old ship back to safety again. The process was

initially slow but certain. Fatally wounded, the organisation

needed drastic surgery to put it back on the rails. The Higuchi

led management embarked on a number of modern “Life saving

measures” as follows. Firstly, the company carried out a self-

audit to find out the root causes for the decline. It was

discovered that the company did not have a specific goal or

corporate strategy. This goal needs to be an internalised passion

162 Quality quest


in every employee. Granted, a company can do all the frantic

manoeuvres under the sun but without a strategy, all these

efforts are wasted, if in the wrong direction. In a nutshell,

there was need to do a corporate identity, to trace clearly where

the company had been, where it was and where it was going. In

what industry was it and what were the competitors like? In

addition to writing a mission statement, these were some of the

questions that Asahi tackled before it begun to shake off the

death shackles that had stuck to the company “good will” like

algae. This pivotal self-introspection and retrospection was

crucial in the turn around. The findings were that there was a

lot of bureaucracy, inflexibility, low morale, distrust, evil

suspicions and neither initiative nor risk was allowed. The

“naked King” syndrome rested securely on the company’s laps.

Having established the pit falls, the company then went on to

check the attitude towards customers as well as the corporate

agility. It was noted that Asahi had stuck to the old traditional

tastes, values and attitudes that had become obsolete. The beer

taste for example had changed and needed to be revisited.

Furthermore, the company had not moved with the times to ensure

that it was a learning organisation, forever sensing the rapid taste

changes in the environment. Although the traditional brand name

and logo were important, it was time to change these to fit the

163 Quality quest


contemporary tastes. The company made frantic efforts to conduct

frequent market research so that the company remained “on line”

with trends. Also, the packaging and top quality products had to

be changed. In the end, the customer was king who called the

“shots”. Having implemented all these strategies, the giant begun

to show some signs of life again! Asahi begun to flex its muscles

once more and moved to reclaim some of the lost market. As such,

the Asahi market share grew from 10% to 29%! This, by all

standards is a feat! It was wrought by a new strategy

establishing a niche, which even the rivals found difficult to

copy. Thanks to the corporate identity and Total quality control

exercises!

Now the above “success story” seems to suggest that Asahi has

arrived forever, nothing could be further from the truth! The

fact that it has begun to expand sales means more work,

watchfulness, and always reading the times. Quality must continue

to be at the heart of the products. The customer must set the

pace and innovative aggressive marketing should continue. In our

view, Higuchi must increase company capacity, while remaining

contemporary to meet customer demands. Further innovations and

brands must be launched knowing that rivals are busy etching

inroads into the beer market through new products, still

believing that the Asahi brand was a mere improvement to Kirin

164 Quality quest


brand. In addition, product differentiation is crucial now more

than ever before.

Although the future for Asahi seems threatened, we have reason to

be confident that given the new management style and the

continued efforts to ensure a competitively strategic position,

we have no fear that Asahi will be numbered among great revived

giants, if not the greatest!

Source

Bower, Bartlett, Uyterhoeven, and Walter, Business Policy:

Managing Strategic Processes, 8th Edition, Richard D. Irwin


What are your general comments on the Asahi Breweries in relation

to competitiveness?

What one thing or attribute accounts for the Kirin breweries

success?

How did the breakup of the Dai Nippon affect the brewery

competition?

What is a niche and how cut it be achieved?

165 Quality quest


Comment on the relevance of a self audit and how it contributes

to a corporate entity’s competiveness.

What is product differentiation as relates to Asahi & Kirin

breweries?

Revision exercise

What is Quality?

Why is TQM very important today?

In your own words, define TQM.

Does your organisation practice any TQM processes? If so,

explain.

Whose responsibility is it to manage quality in an organisation?

In your opinion, which is best, to have a specific Quality

Ministry or not? Justify your answer.

BibliographyBaker Susan, Sustainable Development, Routledge, 2006


2004

166 Quality quest


Buttrick Robert, The Project workout, Pearson Education, 2002

Campbell J David, Organisations and the Business Environment,

Butterworth Heinemann, 1997

Crainer Stuart, The jack Welch Way, Magna Publishing co. Ltd,

2003

Dalal-Clayton Barry & Bass Stephen (compilers), Earthscan,

Sustainable Development Strategies: A resource book, 2007

Dessler Gary, Human Resource Management, 10th edition,

Pearson/Prentice hall, 2005

Dresler Simon, The Principles of Sustainability, Earthscan, 2007

Flower Alan, Striking a balance, Earthscan, 2000

Higgins C Robert, Analysis for Financial Management, 5th edition,

Irwin McGraw-Hill, 1998

http://www.asq.org, proceed to the “learn about quality” section

of this site.

Krames A Jeffrey, The Welch way: 24 lessons from the world’s

greatest CEO, TATA McGraw-Hill Publishing company, 2002

Krames A Jeffrey, The Welch Way: 24 lessons from the world’s

greatest CEO, TAT McGraw-Hill, 2002

167 Quality quest

http://www.asq.org/


Kubr M (editor), Management Consulting, International Labour

office, 1980

Maylor Harvey, project Management, 3rd edition, Pearson

Education, 2003

Njobvu Peter, TQM interview, tape, 1999, Billy Sichone

Oakland S John & Porter Leslie, Cases in Total Quality

Management, Butterworth Heinemann, 1994

Owen A Lewis & Pickering T Kevin, An introduction to Global

environmental issues, Routledge, 1995

Peters J Thomas & Waterman H Robert, In search of Excellence,

Warner books, 1984

Render Barry & Heizer Jay, Principles of operations Management,


Schroeder G Roger, Operations Management: Contemporary concepts

and cases, McGraw Hill, International edition, 2008

Silbiger Steven, The 10-day MBA, Magna Publishing co. Ltd, 1999

Steger B Manfred, Globalisation: A very short introduction,


168 Quality quest


Steyn Johan, Project management (workshop notes/hand out), Marcus

Evans, 2002

Unit 4

Aim

The aim of this unit is to introduce and explain the project

cycle giving a clearer understanding of the processes/stages of a

project

Objectives

By the end of this unit the student should:169 Quality quest


1. Have an intelligent grasp and appreciation of the logical

framework as relates to the project cycle.

2. Know about other project quality enhancing techniques.

3. Be able to explain the project cycle

4. Know the roles of various stakeholders and project staff.

Quality as relates to project managementProjects and programs have been around for a long time now. A scan into their development will reveal among many things that

projects have been perceived as better placed to deliver the

desired results in a given time frame. This realistic time frame

takes into account so many factors so that the project, once

operational will progress towards a desired end. As you have

probably correctly concluded, projects have certain traits that

make them unique in the sense that they are specific in answer to

a specific problem or felt need. In commercial entities, projects

are usually set up to sort out a bugging problem, increase

efficiency or develop new products or services. These manoeuvres

in the long run pay back dividends tenfold as time rolls on. In

addition, projects have specific plans and direction facilitated

by a competent team that feverishly works away like beavers to

170 Quality quest


achieve the desired goal(s). In this unit, we focus on the

project rather than the program as this shall be dealt with in a

later unit. For now, we consider the project cycle and what is

involved in running a project.

The Project cycle9

A project by definition is a specific undertaking that seeks to

address a particular need or problem in a given context, the

context being a community, organisation or domestic setting.

William Stevenson defines a project as “unique, one-time

operations designed to accomplish a specific set of objectives in

a limited time frame”10. Yet other authorities, have defined it

as “any non-repetitive activity, a low-volume, high variety

activity, a temporary endeavour undertaken to create a unique

product or service (PMI 2000), any activity with a start and a

finish, a unique set of co-ordinated activities, with definite

starting and finishing points, undertaken by any individual or

organisation to meet specific performance objectives within

defined schedule, cost and performance parameters (BS

6079:2000)”11 among many others on the project definition market

today. Perhaps an example will do. Suppose there is a nagging 9 Different project cycles exist. The one presented here is used by some NGOs,though PRINCE2 or the PMD Pro may have a slightly different cycle stage. One thing is true though in all cases, there is a start and end date.10 Stevenson William, Production/Operations Management, IRWIN, 1996 pp 75811 Maylor Harvey, Project Management, 3rd edition, Pearson education, pp4

171 Quality quest


problem in Mpika which is malnutrition standing at 66.5%. (2006),

a specific project tailored to deal with this problem could be

set up for a period to handle this matter so that the

malnutrition prevalence significantly reduces from say 67 to 35%

in a five year period. To achieve this, the project must have

clear goals from the beginning (Year A) to the end in year X when

the project phases out. The second thing that is clear about a

project is that it has specific targets and goals that have to be

met in an agreed time frame. Part of these targets could include

assessing the projects’ viability (feasibility study) and

necessity, stakeholder engagement, staff recruitment & hiring,

office set up, asset procurement, project design, implementation,

monitoring, evaluation reflection and transition. All these

issues should be set in concrete from the start. The first phase

in the project cycle tackles the initial project steps such as

undertaking an assessment, which may include an initial idea or

concept. Apart from the concept to or from a potential sponsor,

at this stage, the project undertakes several activities which

are incognito as well as stakeholder engagement to establish the

actual problem and what the partner perceptions are over their

perceived own problem/felt need. This stage determines whether

the project is relevant or not. The second stage is basically

about documentation and analysis of findings as well as

172 Quality quest


disseminating the results to all stake holders in order for

project planning purposes. Having confirmed the necessity of the

project, the right staff cadre are hired chief of them being the

Project Manager and Accountant, apart from procuring the project

inputs. The third stage means that the project is designed as

well as planned and activities carefully laid down in

consultation with stakeholders according to their priotised

interventions. The next stage now involves the actual

implementation stage that may run for several years. During that

period, monitoring goes on throughout ensuring that the project

is on target. Periodically, independent evaluations take place to

determine the outcome of all the activities. Towards the end of

the project, with funding diminishing and projects closing, a

comprehensive end of project evaluation takes place to find out

whether the goals have been achieved or not. Depending on the

project agreements at the time resulting from the evaluation

findings, the project may be extended, renewed (redesign) or

closed. This is the transition stage and in the event of closure

may include final asset transfer to partners, account closures,

staff scale down and ultimately departure. To understand the

processes above, we proceed to consider each stage in detail. But

before we proceed, it is worth mentioning that depending on the

nature of the organisation, established entities periodically

173 Quality quest


have projects with a specific mandate and goal while the larger

organisation relentlessly pursues the corporate goal & strategy.

Projects come and go. For now, we consider the project stages.

A)Assessment stage

When a sponsor elects to fund a project (concept) with a specific

focus, they usually have an agenda or want to respond to a

perceived need. This perception, although in good faith, may not

actually represent the actual felt need or problem on the ground.

To establish the real root cause and properly define a

development project, some form of assessment involving key stake

holders takes place. In the case of other projects such as a dam

construction, a feasibility study takes place prior to the

project implementation commencement. This may include an

Environmental Impact Assessment (EIA), partner mobilisation and

other critical processes. Depending on the outcome of the

preliminary feasibility studies, the project may or may not

proceed. In the case of development projects, this is the first

and most critical stage because the sponsors and potential

implementers do not know whether the project is relevant and will

yield the necessary results. We give a stage by stage process in

the subsequent paragraphs:

174 Quality quest


Before any survey is undertaken, a concept paper suggesting the

need of a project is drafted by either the potential sponsor or

implementer. This concept paper is a form of proposal is a

summary which highlights a problem and suggestion solution. It

has several sections that include a narrative and financial

section. The budget is minimal at this stage as it is supposed to

be in ‘seed phase’. If the sponsors agree to go ahead with the

concept or idea, then the real work begins though in low key

avoiding to curiosity or raise unwarranted expectations. Here is

a brief breakdown of the initial feasibility study session:

a. 3 ‘L’ survey. This is the first stage of the assessment

apart from the initial contacts within the organisation. The

assessors first take an incognito tour of proposed potential

project are and undertake a quick scan observing distinct &

important features such as the topography, landmarks, key

places (e.g. Post office, Municipal administrative offices,

Church etc), local customs, practices and languages. At this

stage, no one in that particular locality is aware that some

people are observing and taking note of what they see and

learn. As earlier intimated, the three things the assessors

do is to LOOK around and take note of significant features

and land marks of that locality such as the Market place,

the Post office, the stadium or church as the case may be.

175 Quality quest


They sketch maps of what they see as well as the perceived

socio-economic issues of that place. The second thing that

they do is to LISTEN to what people in that place are

saying. This can be done by visiting public places like

markets, stadiums, church gatherings or any passersby

without stating their mission or raising curiosity. They

also note dominant values, customs and languages of that

place that may impact on the project implementation. The

last thing they do before departure is to LEARN from the

local scenario. They learn all sorts of things from an

obscure standpoint such as the local customs, value,

language, staple food among many things. Having completed

this three to four day “study tour” the assessors retire to

their place of origin and write short reports of what their

perceptions were and what they thought might be the felt

needs in that particular locality. This consolidated report

is presented to the sponsors who evaluate the findings and

decide whether to proceed or not.

b. The second stage in the assessment is to regroup and then

formulate questionnaires (information collection tools or

approaches) for stakeholder engagement. This may take many

different methods but the bottom line is to touch base with

key people to establish rapport and get basic demographic

176 Quality quest


data that would be handy to planning. Among those engaged

could be Members of Parliament (MP), Government heads and

religious leaders among many. The administered

questionnaires or focus group discussions are designed to

capture key secondary data that gives some profile about the

area. This is a critical stage but still the assessors have

not fully decided whether the project should proceed.

c. The third and final key stage in the assessment is to

conduct an appraisal with the targeted beneficiaries. If the

project is in the rural area, the appraisal is called a

‘Participatory Rural Appraisal’ or “PRA” for short. In this

session, a three or so days meeting is convened with all

partners and stakeholders together to do various activities.

Part of those activities will be focus group discussions,

problem identification as well as prioritising the needs in

order of preference and importance.

d. Having completed the PRA, a report is drafted and

disseminated to interested parties.

This closes the assessment stage leading to the next.

B)Design stage

177 Quality quest


The design stage commences on the premise that the sponsors have

approved the project and ready to progress with the subsequent

processes. This stage has at least two processes namely

1. The Transformational Development Indicator (TDI) stage.

During this phase, the team builds on the findings in the

assessment phase because this is a more structured and

technical stage where various stakeholders are taken on

board. Basically, the TDI aims at collecting secondary and

primary demographic data, analysing the data found and

drafting a report with suggested indicators as well as what

project(s) to undertake to sort out a problem. This

analytical report has graphs, sketch maps, pictures, tables

and any relevant information related to the intended

project.

2. Having done the TDI, it is now time to draft a Provisional

Design Document (PDD). This document is the summary of all

the findings from the previous stages in a logical and semi

permanent fashion. To compile this document, a series of

meetings are conducted with partners and stake holders where

a number of processes are done to confirm earlier responses.

For instance, the stakeholders are asked again to identify

their felt needs and prioritise them. They are also

facilitated to identify the root causes as well as effects 178 Quality quest


of their problems. This is done using the problem and

objective trees (although some critique these as only

problem rather than intervention or activity focused). In

this way, the problem root causes are identified and

targeted for action in the implementation stage. At times,

“short cut” projects deal with the effects rather than the

problem root causes leading to recurring problems. The

project(s) is given some shape upon which later stages will

build. This PDD report is disseminated to interested parties

who make their comments for improvement and then wait for

the next phase. At the TDI and PDD stage, if the logical

frame work approach is chosen, the logical frame work and

Detailed Implementation plans are introduced. We consider

these in subsequent sections.

3. From the PDD, the project now enters the Baseline survey

stage where all the basic parameters are set in place. The

usual path is to use appropriate sampling methods as well as

the questionnaire method targeted at different stakeholders

and findings captures in a soft ware package for analysis

later. Packages such as SPSS or Epi Info come in handy

because they are used to capture and analyse a lot of

information which is later interpreted and a report churned

179 Quality quest


out. This is a very laborious and involving stage although

very sensitively critical.

4. The final part of the design stage is now to properly design

the project inputting all relevant information such as

indicators, assumptions, M & E plan, budget and project

goal. This then is the final document that defines the path

to be taken and what project structure will be used. The

sponsors consider this document and if they approve, then

the project is ready to kick start.

In good programming, this whole process should take about a year

and a half.

But before we proceed, let us digress a little to explain some

important terms and processes because they have a bearing on what

quality the project will pursue in its implementation.

The logical frame work

For any project to effectively and progressively attain its goals

in a smart way, one of the tools used is the logic frame work or

“logframe” or as popularly known in programming circles.

Basically, the logframe is an expression of the project

intentions arranged in a logical fashion so that any one either

implementing or evaluating can easily catch the ropes and get to

180 Quality quest


work. Different approaches to logframes has been used by

different organisations but in this section, we present a basic

“4 X4” logframe which is in essence a “4 X 4” matrix in the sense

that the frame is composed of 4 columns flanked by 4 rows for

each project. It is worth mentioning at this stage that the

Logframe is a summary of the project which one can determine whether the project will succeed or not. It is the “core” or heart of the

project. The table below illustrates what a logframe looks like and

follow it up with some notes to that effect.

Objective

s

Verifiable

indicator

Means of

verification

Assumptions/

risks

Project

Goal/Purpos

e

Outcome

Output

Activity

As earlier intimated, the Log frame is a tool that logically

presents project direction and how this is to be achieved. To

181 Quality quest


understand this frame work, a few preliminary statements would be

handy and shed light:

a. The rows are made up of the Project goal, outcome, output

and activities. Some even add a fifth row which takes into

account the inputs. This is called the ‘hierarchy of

objectives’ and different organisations use different logic

frameworks.

b. The columns represent the objectives, objectively verifiable

indicators (OVI), means of verifications (or Source of

Verification) and finally, the assumptions/risks that affect

the project.

c. This box matrix entails that the rows and columns intersect

to highlight some activity or output. In other words, for

the outcome to be seen (row), the right indicator (column)

must be in place. These must be in sync and make sense.

d. Outcomes and outputs have indicators while activities and

Purposes do not, although some argue to the contrary.

e. There should be horizontal and vertical logic (see fig

below).

182 Quality quest


Goal

Outcom

e

Output

Vertical logic

Horizontal logic

f. The assumption holds should there be an “If...Then...” logic

to the next level of the hierarchy of objectives. For

instance, “if 10 farmers are trained in organic farming

(output) assuming the inputs are available on time every

year (assumption), then farmers consistently stock ready

seed for subsequent season readily accessible to other

farmers (outcome). In this example, the assumption holds

because it leads to the next hierarchy of objectives.

183 Quality quest


Having made the statements, we proceed to consider each line in

detail as given below:

Goal (or Purpose)

This is the desired haven or destiny of any project. In another

sense, it can be said to be the dream or ideal. In other words,

the whole project is centred around this goal which is the

justification for its existence otherwise all is a waste of

resources. A proper goal has certain characteristics which make

it SMART meaning the project goal or purpose as some prefer to

call it must be:

Specific: Must be directed at something and clear.

Measurable: Must be able to measure change.

Achievable/attainable: Must be feasible in the given time

frame.

Realistic: Must make reasonable sense and down to earth.

Time bound: Must be accomplishable in the agreed time frame.

In other words, a goal must be good, target oriented and

“completeable” within a given time frame. A project goal would

read something like this:

184 Quality quest


“To contribute to improved quality of life through reducing of

the impact of HIV & AIDS in Katamo district by the end of 2018”

From this goal, we note that the HIV & AIDS project is to

contribute to what others (e.g. Government, NGOs etc) already are

doing in the improving the overall quality of life for people in

Katamo district. How is this to be achieved? By reducing or

mitigating the pandemic impact (via several cumulative and

complementary interventions) in a given time frame (time

boundary). This goal phrasing could be improved upon (by for

example stating the reduction rate of prevalence from X% to Y

%)but suffice it to say that it has the realism, specificity (HIV

& AIDS), measurability, time frame and achievability assuming

other actors faithfully do their part.

Outcome

An outcome is the lasting impact or result that eventually

results as a consequence of a series of planned cumulative

activities. At this stage, the impact is evidently clear and we

can begin to determine whether the project has been successful or

not. If a strategy has been good and successful, then the outcome

is sustained stupendous exponential organizational growth profit

wise. If the strategy has been faulty, then the outcome will be

weak and not anything to write home about. Stake holders,

185 Quality quest


especially the sponsor require reports at this level especially

at project phase out stage. One of the indicators of an outcome

in development project is the observed permanent behaviour change

as a result of a cumulative effect of activities in the people

the project has been working amongst. An outcome is usually

evidenced by a behaviour change or practice on the target group.

Others call it a ‘lasting change’ the absence of which indicates

that the outcome has not been achieved.

Output

When an activity has been carried out, the immediate end result

is known as an output, almost synonymous to what you get at the

end of a production process. The raw materials you put in at the

beginning of the production are called inputs which are processed

to give a product at the end of the chain called an output. That

output in and of itself may not have value unless some value is

added to it or made manifest to would be interested parties who

then create a demand. In similar lines, once an activity has been

undertaken, we get immediate results which often are in

statistical form e.g. “10 Teachers sensitized in Adventure

unlimited” Many projects report at output level but sponsors

usually are interested reports at outcome level i.e. the impact

recorded as a result of the intervention.

186 Quality quest


Activities

Activities are the actual individual line items and interventions

that the project undertakes in order to contribute to the

ultimate goal. These activities are the lowest in the logframe

matrix in the sense that they are the first step in the

implementation process. Throughout its lifespan, a project will

be engaged in calculated activity after activity until phase out

when it is assumed that the cumulative effect of these

interventions will deliver the outcome. Said differently,

activities are the tangible steps taken during the implementation

stages of the pre-planned interventions in a logical fashion to

achieve the target goals. The first activity builds in to the

next which builds into the next until the bigger picture shows

impact. Note that an activity may be one or many all targeted at

reaching a goal. For instance, training 10 community members in

Home Based Care (HBC) is an activity which builds into the

broader goal of a resilient HBC system in the district. Other

activities may include a youth sports tournament, Malaria

committee set up and leadership training workshop. The list is

endless. We can safely say that an activity is an event that

takes place in the spur of the moment whose final impact may not

be seen immediately apart from the statistic that an activity has

been done.

187 Quality quest


Inputs

These are simply all the parameters or resources that a project

will need to successfully implement a given project. Ideally,

before the implementation of the project, or indeed an activity,

the inputs must be clearly known (i.e. identified), tabulated and

sourced in advance so that the undertaking commences without much

ado. For instance, if the project area is in a far flung area

from the administrative office, it may be prudent to include a

project vehicle as one of the inputs, although it is in asset

form. We can mildly classify it as “transport” if we cannot

afford a one off purchase of a project vehicle. As for an

activity, a list of inputs such as markers, flip chart,

projector, computer, resource persons etc may be some of the

inputs that are essential to holding a successful workshop or

training. Half the time, project facilitators are weak on this

area and only react when it is too late and thus achieve an

average impact on their target group. Resource mobilisation is a

critical skill to effective and efficient mobilisation. That is

why a Detailed Implementation Plan (DIP) is superior to the

Annual Operation Plan (AOP) because the DIP tabulates all the

inputs from inception and only retrieved from “the archives” with

minor modifications. The author repeatedly appreciated this when

he worked on a grant once.

188 Quality quest


Now that we have briefly considered the horizontal rows (dubbed

the hierarchy of objective), to complete the picture, we look at

the column in a similar fashion:

Objectives

An objective alludes to the desired results of a program or

project expressed in generic terms. In other words, it is linked

to the goal except that it breaks down these desired ends in

palatable statements that generally show what a project intends

to achieve in a given time frame. Objectives can be at different

levels (i.e. at Outcome & output level, though some suggest at

project and program level as well) in the logical frame but

suffice it to say that they state generally the desired results.

In a project for instance, an objective at outcome level can be

stated something like this: “Reduced HIV prevalence rates and

related infections in Kawale and Shantumbu area.”

Objectively Verifiable Indicator (OVI)

An indicator is a sign that shows whether something has or is

happening. With respect to project management, an indicator is a

parameter used to tell whether some movement or progress is being

observed in a specific direction. Further, we can add that this

indicator must be “verifiable” in quantifiable terms as well as

189 Quality quest


be as objective as possible. No outside influence or force should

blur the indicator. For instance, if you want to determine

whether the number of nurses has increased in the district in the

past two years, you need to establish a baseline from which you

measure any changes. In other words, project indicators are

statements that are used to observe changes in a given context

and time frame. Any example of an indicator would be “Number (or

%) of community members tested positive and cases of HIV related

infection”

Means of verification (or Source of verification)

When a project is in motion, a lot of information and experiences

are generated and need to be documented so that anyone who has no

previous connection to the said project can simply read the

available information and have an idea of what the project is

about and what it has actually done. We would further state that

whatever processes that the project goes through must be

documented and available for verification by others. In part, TQM

centres around documentation of processes which are used either

for instruction or derive best practices. In the log frame

context, the “means” are parameters that can be summoned to

verify claims of project staff or partners and these are several

such as surveys, evaluations etc. Some however have disputed that

190 Quality quest


project reports cannot be used as ‘means of verification’,

probably because they are considered as sources rather than

means. Examples of sources are evaluation reports and project

reports. But others argue to the contrary. Be that as it may, the

means of verification must have integrity, be reliable and

objective.

Assumptions/risks

Assumptions are those parameters that are assumed to be in place

if the project will be a success and attain next level results.

In other words, these are significant factors that influence the

outcome of the interventions and can hinder or foster project

progress. An assumption becomes a “killer” when there is a remote

probability of it happening and were to happen would effectively

kill the project. Others sometimes call these as risks because

they are somewhat beyond the control of the project. Akin to

threats in SWOT analysis, these risks have a potential of

impacting negatively on the project outcome, sometimes even

killing the project altogether. The said risks or assumptions

must be real and make sense. A good example of an assumption

would be availability of all partners at all implementation

stages. This may be an acceptable assumption but subject to

debate because one may dispute saying that partners should have

191 Quality quest


committed themselves to the project during the start up phase and

thus the question of availability may not arise but should they

‘boycott’, the project is likely to fail. A risk would be drought

but an assumption may be availability of normal rains to reap an

intended bumper harvest. There are many sides to this coin but

ensure you formulate an appropriate and realistic assumption.

But note that this whole phase is collectively placed under

“planning stage” in the PRINCE2 arrangement.

So much then for the planning and design stage, we hurtle along

to a consideration of the critical implementation phase.

C)Implementation stage

Once the project document and proposal are approved, the next is

to begin the project execution once the funds become available.

Implementation simply means putting into action or motion the

things that have been pre-planned. This implementation goes on

throughout the remainder of the project life and only grinds to a

halt once the project is closed. During implementation stage, a

lot of activities will be carried out with a view to contribute

towards the project goal. The first steps in the implementation

phase is to recruit and hire relevant staff, set up office,

192 Quality quest


mobilise resources, open bank accounts, install accounting

systems for financial management among many. The first to be

hired will be the Project Manager and Accountant who spearhead

the office set up. This staff cadre’s mission and mandate is to

ensure the project roll out is on course and activity execution

is dead on target as outlined in the Gantt chart or

implementation schedule. We zero in briefly on the Project

Manager before we consider other key staff.

A Project Manager in the person that leads the project

implementation who by and large charts the course, having read,

interpreted and internalised the project documents and determined

which direction to take. The Project Manager manages the

processes in keeping with the set standards and has the

responsibility to ensure s/he facilitates the implementation

process towards a successful end. In other words, the buck stops

with the manager who should have the necessary skills and

competencies to catalyse the project process towards a desired

haven. Some of these qualities are listed below against which

every Project Manager aspirant should gauge themselves.

Qualities of a Project Managera.Multi tasking

193 Quality quest


The astute manager of the 21st century must be one of many parts,

meaning they must be able to competently handle different issues

simultaneously. It is not enough to have the right credentials

but there must be much more, which results in high quality output

at the correct time. One of gets confused, disoriented or stuck

at the slightest introduction of a thing in addition to what they

ordinarily do is not fit to be manager. Granted, we cannot know

everything but have to learn the ropes, the post modern manager

has an inquisitive mind ready to learn or take on fresh

challenges. More than that, s/he is able to do several tasks

without much ado. This trait is especially handy in program

management.

b.Logical and systems thinker

The ideal project manager is able to think through issues long

before any action is taken as well as understand how or why an

adopted system functions as it does. In that way, s/he is

intelligently able to fashion the best avenues to achieve a

targeted goal.

c.Implementation intelligence (II)12

This calls for several traits by the manager to be successful.

For fact that a project has correct funding, a great team and is 12 Original owner of this phrase unknown, probably Chikondi Phiri-Zambia

194 Quality quest


timely is no guarantee that all is well. The Team leaders needs

an extra sense to discern what is going on and what needs to be

done at the right time. For instance, the manager needs to know

the implications of exchange rate fluctuations on the

d.Good financial management skills

The Project Manager is the chief implementer of all project

activities and must thus be well versed with all aspects

relating to implementation. One critical function s/he must

competently handle is the issue of finance. Although they may

not be experts in all financial intricacies, there should be

an intelligent appreciation of how finances are managed and

accounted for. More than cash only, the manager must be able

to understand financial systems, internal controls, budgeting

and control among many competencies. Thus, no manager must

plead ignorance or fail to interpret a financial report.

e.Exceptional people management and team playing

prowess

As Managers interact with people of different complexes, there

is need to have that HR and leadership touch that enables the

manager to relate well with, motivate, build and encourage

195 Quality quest


staff. In other words, s/he must be a team player, play maker

and coach at the same time.

f.Knowledge of the local cues, norms, values &

culture

Different contexts demand different calibre of staff. In one

area, people may not mind from where a manager hails while in

another context, they may be very particular. In other cases,

it may not even be some one’s back ground but their

functionality, willingness to learn local customs as well as

adapt. In that way, they can successfully and winsomely worm

their way through society and excel. It pays to know the local

values and customs as this helps in critical times.

g.Good operations and programming competencies

This is a non negotiable trait which every manager worth their

salt must possess. The ability to organise, mobilise and set

things in motion is a skill and art that people perfect over

time. Best performing and effective managers know when to do

what and how. This calls for more than just academic

qualification but skill and competence.

h.Objective and action oriented

196 Quality quest


One needs to keep their heads in all situations and make the

best decisions which they would never be ashamed about years

later of having taken. Circumstantial pressures may force

wrong decisions which some live to regret later. Thus, the

manager must be sufficiently level headed, mature and focused.

i.Task and goal oriented

One mark of a top scoring manager is their ability to

relentlessly work hard until the work is done. They will not

leave any stone unturned nor leave anything to chance because

they would like to see results. Once they take on a task, they

will not put their tool down for anything until the goal is

reached.

j.Playmaker and professional

As earlier alluded to, the manager is the central key figure

in the project that determines the pace, mood and direction.

If they are egocentric, recluse, risk averse and “commando

like”, the project is sure to fail. The reason is that the

team will be dysfunctional and remain a group rather than a

team in the truest sense of the word. Positively, the manager

acts like a midfielder, a distributor and catalyst to the team

dynamics. Additionally, the manager is both professional,

197 Quality quest


objective and issue based rather than wasting time in endless

personal squabbles and tussles.

k.Great leadership skills

Closely connected to (j) above, the manager should have well

developed or developing leadership skills. Leadership is not

formal position but influence and an ability to motivate,

infuse hope as well as bring about a “can do’ attitude in the

team members.

l.Innovative and creative

At times, the project cycle may be disturbed by some

unforeseen challenges such as budget cuts, economic down turn,

political interference, delayed funding and a whole host of

problems. The post modern manager will not sit still and

complain all day but will quickly engage their creative and

innovative powers to achieve the same goal but with fewer

means.

m.Broad, deep strategic thinker and planner

The manager is the torch bearer and vision carrier of the

project and must at all times engage in long range thinking,

proactively handling matters long before they become

198 Quality quest


emergencies. Half the time, many wait until they hit a snag

along the way and begin reacting. Not so the astute manager,

s/he is far smarter and prepares for the rainy day ahead.

Strategic thinking includes being well informed, avid reading,

application of knowledge as well as being able to mobilise

resources from different sources to forestall any future

crunch. For instance, the strategic eye foresaw the 2009

global economic meltdown as well as its implications on

project implementation.

n.Ever learning posture

Increasingly as the world gets global in outlook, there is

need to acquire as much exposure as possible. This means

getting a fresh skill set ever so often so that you remain

relevant and competent. But then, the manager also needs hands

on experience as well as an open mindset that is willing to

learn from anybody, whether superior or junior. The power

distance between supervisor and supervised kills many a

manager. In the post modern era, there is need to change

approach lest you turn into a pillar of salt.

o.Attention to detail, meticulous and focused

199 Quality quest


Lawyers make much about detail and so do Accountants. But the

manager must also mind much about detail and give it its due.

They must for instance be keen to read reports, analyse before

signing anything and acquire an eagle’s eye that is able not

only to pick things from afar but be able to read between the

lines. Hurry and negligence have slain their thousands.

p.Emotionally stable and mature

The manager should be mature, level headed and emotionally

stable, able to control their emotions. This is important

because half the time, people mistake intelligence and

education for maturity. Age sometimes passes for maturity but

this is not necessary the case although one would expect this

to the norm. Furthermore, emotional stability is critical

because some managers shout at their staff and demean them as

though they were non entities without brains. Other managers

throw tantrums when provoked and will not respond to anyone

until a week later when they have sufficiently cooled down.

This ought not to be.

q.Team building and management skills

200 Quality quest


The last trait has already been alluded to or dealt with in

the earlier points so we simply say that a manager replicates

him or herself by building others who turn out to be a winning

team. Not only do managers motivate, they also have a very

steady hand that ensures things are going according to plan as

per agreed tenets.

Having elucidated on the above traits, it makes perfect sense

then to consider the Project Manager’s role.

Roles/Functions of the Project Manager 13

The functions of any manager vary from project to project as well

as sponsor to sponsor. Being the central figure in a project, the

manager must be magnanimous enough to competently handle all

matters relating to it because if the project fails or succeeds,

the manger bears the responsibility. Usually, the manager assumes

the role or function of ensuring the project starts well, is on

course and is wrapped up as per expectation. Time management is

of essence in the project and as such, the astute manager of

makes much of when or how a project is implemented. In this

section, we briefly highlight some pertinent points worth

considering:

13 William Stevenson has some useful things to say about the Project Manager on pp 759 of his book “Production/Operations Management”.

201 Quality quest


i. Overall management and leadership of project.

ii. Facilitate project process (i.e. the work flow,

implementation, resource mobilisation, time management

etc)

iii. Strategic thinking and planning.

iv. Financial and operations management (i.e. budgeting,

costing, estimating, cash flow, learning curve, quality

issues etc)

v. Internal control enforcement

vi. Team building

vii. Capacity building

viii. Public Relations

ix. Human Resource handling

x. Policy interpretation and enforcement

xi. Monitoring and evaluation

xii. Managing project information

xiii. Negotiation (with donors & other partners)

xiv. Resource mobilisation-human, financial & other assets.

202 Quality quest


xv. Networking & Collaboration

xvi. Periodic reporting to relevant authorities and donor.

The Project Manager and sponsor/donor relations

One of the roles of the Manager is to maintain official cordial

rapport with key partners. This includes sponsors or donors. The

Manager must execute this function diligently and meticulously

ensuring that the donor is kept abreast with the recent or

current developments as well as repeatedly satisfied with the

project progress. Being the chief custodian of project resources

and entrusted with so much, the Manager naturally develops a

special relationship with the sponsor in that they become

mutually accountable to each other. Each party must do their part

to honour their commitment to the project. In this regard, the

Project Manager executes and gives period feedback on the project

while the sponsor mobilises resources and funds the project

timely as per agreement. Should something go amiss, the Project

Manager is answerable to all stakeholders for the buck stops

here. Thus, we see that the Manager holds a delicate position and

has no option but to deliver timorously and to satisfactory

quality standard. Project navigation is a skill and only the

seasoned mind is equal to the task. On the part of the sponsor,

their role, as earlier intimated, is not only to secure funds but

203 Quality quest


also to periodically monitor the project to appraise themselves

on the progress and challenges faced by the project team. The

sponsor identifies with and builds close mutually trusting ties

with the project management team and should be on hand to honour

their pledge. Thus, if the Project Manager was exceptional and

acquitted themselves well, in the event they left the project or

was transferred, the relations are sometimes temporarily

disturbed and new ties built which may take time. In some extreme

cases, sponsors even threaten to pull out because the person they

trusted has left! But this ought not to be because there is a

staff team as well as systems in place to guide the next team

leader. All that the next person does is read the design

documents, project reports as well as any monitoring or

evaluation reports. Within a short time, they should be up and

running.

Other team members

The manager, although fully responsible for the whole project

does not work alone, lest they be overwhelmed. S/he has all the

authority and has delegated some duties to specialists who hold

specific technical positions. Professionals must be hired in the

interest of objectivity, transparency and “division of labour”.

Thus, this builds in professionalism and objectivity as well as

204 Quality quest


strong internal controls. As auditors and would be donors examine

the structure, it gives them confidence and impetus to do even

much more. We consider some, not all, key positions commencing

with the finance person.

Finance person

The finance person holds the delegated though independent

function of managing all the financial resources of the project.

S/he is the chief custodian of the financial resources although

accountable and reporting to the Project Manager, with a dotted

reporting line to the Country office finance director, if the

organisation is a multinational or large. This ensures

objectivity, independence and reasonable security to the finance

officer.

With respect to personal traits and professional competencies,

the said person should be mature and extremely stable on figures.

The person should be well versed with relevant financial systems

and data capturing accounting software such as the Sun systems,

AccPac, Pastel, Quick books among many. Each project will be

suited for a particular soft ware. The Sun Systems has proved a

versatile and reliable package. In short, the finance person must

have the following competencies:

a. Able to devise and enforce strong internal controls.205 Quality quest


b. Set up accounting system.

c. Able to generate periodic, accurate & timely financial

reports tracking expenditures as well as give explanations

for variances.

d. Perform monthly bank reconciliations for all the project

accounts.

e. Maintain confidentiality

f. Where applicable (if some other department does not do it

like HR), generate payroll (usually computerized)

g. Build capacity in junior staff with a view that they take up

the function in the event s/he is away.

h. Advise management on financial management matters.

i. Maintain a daily cash flow.

j. Ensure only right amount of cash is maintained at any one

given point. This is called a target low, especially at the

end of a reporting period.

k. Securely maintain financial records for a specified period

of time according to policy.

206 Quality quest


l. Generate an updated asset register reflecting assets the

project has at any one given point. There should also be an

inventory list that keeps a record of all items not

classified as assets.

m. The Accountant must also keep a record of all debtors

(advance holders) and ensure they settle them in a specified

time. An aging analysis is handy to keep a tag on this

matter.

As we can see, the Finance Officers’ job is both essential and

critical explaining why the first and last two project staff to

be employed or laid off includes an Accountant. Lets next

consider the DC and DF.

Development facilitators (DF) and Coordinators (DC)

These staff interface directly with the community or partners as

the case might be. Their role is to primarily ensure the work is

done on a daily basis and are the first to note any changes in

the project or whether there is need to mutate. As the saying

goes, these are the ones who are “where the rubber meets the

road”, as it were.

Some of their competencies apart from their academic credentials

is the ability to:

207 Quality quest


1. Mobilise partners and stakeholders at every project stage

towards an intended goal.

2. Capture data on a frequent basis for input into the

Monitoring system and database.

3. Keep in touch with relevant key stake holders at the bottom

of the pyramid in the project area and ensure everything is

moving as per plan.

4. Facilitate training of partners who have a serious stake in

the project.

5. Get the “buy in” of all before, during and after the project

close out.

Monitoring and Evaluation officer

This officer’s role is to ensure the project is always on course

and the things to be undertaken are done on time and to the

required standard. In other words, this is a support rather than

a line function in that the M & E officer is independent and does

not have position power over line staff who report to the

manager. While the Manager leads the way in implementation with

team members reporting to him, the M & E officer goes around to

check, document and report on what is going on. In other words,

the M& E officer is the information focal point person and keeps

208 Quality quest


the institutional memory of the project. Until recently, this was

a rather neglected function in many projects but is now critical

for almost any project that comes around. We can summarise the

officer’s function as:

1. Keeping record of whatever pertains to the project cycle.

2. Set up and maintain a data base.

3. Formulate an M & E plan

4. Monitoring project implementation

5. Periodic evaluation of project impact.

6. Analyse data generated at different stages of the project

cycle.

7. Advise and update Project manager on some observations and

how best to improve.

8. Track DIP implementation & alert relevant staff, especially

Project Manager.

For a person to effectively function, they must have excellent

mathematical and analytical skills. Skills in software packages

such as Access and Excel are non-negotiable. Competence in

209 Quality quest


analytical software like SPSS or Epi info is definitely an

advantage.

The above mentioned positions are very key in any successful

project but other auxiliary staff do exist that support and

ensure that the project is on course and running efficiently.

This depends on the project type and nature.

It is fitting to mention at this stage that from inception, the

project quality is under serious scrutiny ensuring only the best

is churned out in the interest of delivering impact to

stakeholders. To achieve this, various forms of monitoring takes

place by different parties. Monitoring is basically checking on

the project progress at every development stage on a daily basis.

The parties to monitor include the community/direct target

beneficiaries (in development projects), NGOs, Government, civil

society, sponsors, project staff and other interested parties. On

a daily basis, the staff and direct target beneficiaries

meticulously watch and control the project direction ensuring

everything is on course. Should there be a deviation, one of the

parties blows the whistle so that a correction is immediately

effected. Monitoring is daily while evaluation is periodic and

aims at establishing the long lasting impact and whether the

210 Quality quest


project is headed in the right direction in achieving its

objectives. An evaluation is best undertaken after a reasonably

long period of time because then, many activities will have been

done contributing to the long term goal. An ideal time would be

about three to five years in lengthy projects while a few months

if the project is short term (say one or two years). The purpose

of monitoring and evaluation is to ensure direction, focus,

efficient and effective use of resources. Projects that relate to

service delivery or product churning out have their respective

standards which function as a mirror if the project is on course

or not. One of these could be increased customer satisfaction and

retention, if the repeatedly trained staff are doing a good job.

If it is about tangible products like phones, improved market

share or slump indicates whether the quality improvement project

is on target. Remedial measures are then instituted as the case

may be.

To assist in proper project implementation, the project breaks

down the activities derived from the DIP into smaller manageable

packets. These ‘packets’ are called Plans of Action (POA) which

basically means that in a given time frame, say a week, month,

quarter or half a year, the project is going to pursue a certain

path. This plan of action of implementation schedule of sorts

tells the story of how and when the laid down activities are to

211 Quality quest


be accomplished as well as by whom. Over the years, these POAs

prove handy, improve implementation quality, hold people

accountable and give a sense of direction to whoever has written

it down. It is recommended practice that every person has a plan

of action of sorts.

As the project comes to a close, many things are done and we deal

with them in point (D) below.

D) Reflection, redesign and transition stage

The last stage of the project cycle is reflection, redesign or

transition. Depending on the project exit strategy and how it has

been previously faring, in the last stages (say one or two years

before final closure if it is a long range project), the project

begins to review its performance so as to ensure it “phases out

with dignity and honour” as some development guru have coined

it14. At this stage, the project is focusing on the whole process

from inception and what tangible impact it has evoked on the

target group or beneficiary. If it discovers that things are not

on track, the project has an opportunity to alter its course so

that the critical factors are instantly dealt with. The

reflection stage ensures that corrections are made or strengths

fostered so that the lasting impact is far greater. Further, the

14 Anonymous, perhaps Dr Paul Woods, Australia212 Quality quest


project is concerned about sustainability and continuity of

things commenced in the earlier phases. In the case of projects

other than development ones, this stage entails reviewing

systems, refining processes, taking corrective measures as well

and renegotiating with the sponsors at least three months before

closure for either an extension (which may be a cost or no cost

extension). Usually, negotiations start way off (in USAID (USG)

funded projects, at least 90 days before close out) so that the

project is either extended or simply closes out at the intended

time, having achieved most, if not all the objectives. This is

rare (timely project closure) though but achievable in well

executed projects which stick to time and schedule. Various tools

are used to determine whether the project should close or

continue for at least six months to one year after which very few

sponsors would be willing to fund. However, there are cases when

the project fails to meet its intended impact and sponsors still

have a keen interest. In such instances, the project transitions

(closes) or to another process called the redesign phase which

focuses on other priorities most likely building on earlier

targets. The goal of the redesign is to “re-aim” so that the

project hits the desired goal which could have either been missed

or eluded during the project cycle. It is worth mentioning that

in the redesign phase, the goal remains the same as before but

213 Quality quest


what changes are the strategies to hit the Bulls’ eye. Such cases

(redesign phase and therefore extension) are extremely rare,

especially if projects are privately funded.

Monitoring & Evaluation (M & E)

In building quality into a project or program, Design and

Monitoring and Evaluation (DME) practitioners ensure that they

engraft parameters that will guarantee quality within the system.

In development projects quality is a matter of much concern

because a lot of things are at stake and as such, a number of

antidotes are engrafted into the system so that quality is

guaranteed as well as fostering continuous improvement. The M & E

function is viewed differently by different people but some have

this to say though basically, all these centre around quality: “

Monitoring is a warning system that ultimately feeds into

evaluation.

Evaluate simply means to assess the value of something

(Feuerstein, 1986, p.2). The reasons for evaluating are many

and varied, viz sharing experience, improving effectiveness, allowing for

better planning (Ibid, p.3)

214 Quality quest


PM & E is not a matter of using participatory techniques

within a conventional monitoring and evaluation setting but

rather a radical rethinking about who initiates and

undertakes the process, and who learns or benefits from the

findings (IDS Policy Briefing 12 , Participatory Monitoring

and Evaluation: Learning from Change, November 1998)”15

Thus we can see that M & E is a critical function to project

quality management but the question that begs answering at this

stage is what is involved in project M & E and what are the

methods of performing it? A detailed treatment of this is beyond

the scope of this module but we highlight some aspects of this

for our information. Generally, any good M & E system, as earlier

alluded to, aspires at ensuring the correct thing is consistently

done at every turn thus building quality into the system

throughout. To achieve this goal, several elements combine to

make up this system as shall be demonstrated. The first aspect

about a good M & E system is that it should be a wide ranging

data base that retains all project information from inception to

close down. In other words, all data is collected and stored in a

data base for further review or retrieval at any one given time

by all relevant stakeholders and interested parties. Knowledge

management is critical. Thus, all relevant information is 15 Quoted from Sikapale Chinzewe WVZ Operations review Power Point presentation, 2006

215 Quality quest


collected by implementing staff and partners, fed into the system

and retained for future use. The second aspect about a good M & E

system is that it must have a good M & E plan which clearly

stipulates who should collect the information, when as well as

the frequency. In that way, the type of information as well as

whose responsibility is known from the start. The third component

is that the said system should have an Indicator Tracking Table

(ITT) which ensures that every indicator is not only meticulously

monitored but progress achieved from inception is gauged against

the ultimate project goal. In this way, the project team can

reasonably assess and tell whether they are on target. Still

another component about a good monitoring system is that the M &

E officer must be & operate independent alongside other partners

or stakeholders who carry out their own monitoring as the project

progresses. All these parties document the happenings at the

project and quickly query when something goes amiss. As for the M

& E officer, his or her primary function is not only to monitor

but to document whatever transpires in a retrievable data base.

Another M & E approach is to carefully set up budget expenditure

ratios indicating whether a project is top heavy or spending more

on administration rather than the target beneficiaries. A certain

prominent NGO has set the administration to beneficiary ratio at

20:80. Anything outside that sends a warning signal of poor

216 Quality quest


management. Yet another would be to have a project peer review

among projects of similar nature with the aim to compare notes as

well as draw lessons of best practice. Finally, it is good to

standardize the reporting system and make the documents

accessible to any interested party. For instance, World Vision

International has developed an information system that is

accessible by any world Vision international office globally.

Only what is of the highest quality is posted there. The Program

Management Information System (PMIS) has reaped incredible

results for the said entity as well as significantly enhanced

programming quality. In a nutshell, all these lose ends tie in

together so well to foster qualitative project implementation as

well as drawing lessons to inform future project set up. In well

planned projects, the M & E system greatly supports the embedded

quality into the system thereby making it impossible for the

naked eye to see it. What is evident however, is high standard

output. It must be stated here that monitoring takes place at

activity and output levels while evaluation (which takes place

after some considerable time of cumulative activity

implementation) takes place at the outcome and goal levels. Some

hold that project staff are held accountable at output level

while others maintain that it is at outcome level as well because

217 Quality quest


the used strategies should lead to the outcome otherwise people

will not plan meticulously from the start.

Like hinted earlier on, projects use different tools to ensure

quality but a good portion of them use the log frame approach.

Other organisations like World Vision International have and are

developing an approach of their own, of course building on what

the past giants have already done. This approach is coined the

LEAP approach which acronym stands for:

Learning through

Evaluation,

Accountability and

Planning.

This is an organic Design Monitoring and Evaluation (DME)

approach which, unlike the other models, ensures that designed

projects are agile, learning, flexible, relevant and open to

change as the context mutates as well. This model, although

resting on the log frame approach is different because the

projects have a design document crafted at the beginning of the

project life buttressed by a Detailed Implementation Plan (DIP)

which in itself is a list of activities derived from the log

frame for the whole project life span (Say three or five years). 218 Quality quest


This LEAP life cycle assumes that if well planned and executed,

the project should address all the issues raised during the

assessment & design stage as well as redesign so that another

project may arise that deals with another felt need or problem.

Thus, LEAP is premised on the ground that the world in which

projects operate is not static hence the need to be relevant to

the needs of the time. After the design is complete and DIP

drafted, the project goes into implementation and is meticulously

monitored to ensure it is on track. Should any deviation be noted

along the way, this is documented and correction made

accordingly, of course following normal programmatic procedures

such as evaluations or redesign. As the project reaches the

reflection and transition stages, lessons learnt are engrafted in

the redesign otherwise the project closes. The LEAP approach

appears better qualitatively because it ensures continuous

learning, accountability and planning as well as evaluation for

better programming. All these elements somewhat foster quality

assurance as well as build confidence with the sponsors.

Furthermore, LEAP recognises other contributors in a given

context as well as attribution to other players long before the

project came on the scene. By that token, LEAP prefers to call

“stake holders” as “partners” because they are more than just

interested parties watching by the terraces while the development

219 Quality quest


process evolves. Rather, they are active in one way or the other.

In addition, LEAP is strong on the ITT, implementation schedule

(or Gantt chart) as well as the connection to the DIP (plus

budget). World Vision international is still refining this tool

and can be found on the following site: www.transformational-

development.org

However, like all other spheres of life, there have been changes

in M & E circles that centre around better qualitative

programming. Below are some of the recent changes and discussion

points:

As hinted at earlier on, there is more talk about

attribution and contribution by other players in the

contexts where projects operate. Hitherto, projects have

claimed all the accolades when they strike success without

acknowledging other direct or indirect contributors to that

success. Instead of networking or collaborating, projects

have tended to compete and protect their “turf” when others

have either been there before or after. There is attribution

at activity and output stages while contribution is at

outcome and goal levels for projects only contribute to

something even if they seem to be the main players at a

given period.

220 Quality quest




Most significant change from Impact stories. As part of

recording impact, projects write impact stories at outcome

and goal level but more and more there is thinking around

the fact that sometimes a small contribution can

significantly change the life of an individual or community.

For instance, if a school plans to build an extra class room

but lacks sufficient cement. If a wealthy business man buys

and donates cement pockets enabling the class room to be

completed in good time, then that is a seemingly small

contribution but has greatly impacted the lives of the local

community. Smaller projects and organisations excel at

documenting such significant changes compared to the mammoth

big projects.

Whereas in the past, people have concentrated on “Monitoring

and Evaluation” Current thinking is questioning the

correctness of this coined phrase with respect to project

management, as relates to the implementation stage. The

thinking is that you cannot actually and truly evaluate a

project in a month or two while you implement but you could

monitor as you implement. Thus they would rather use the

words “Monitoring and Implementation” (M & I) as opposed to

“M & E”. The debate continues though.

221 Quality quest


As hinted at earlier, the LEAP approach now emphasises

partnership rather than stakeholders for the simple reason

that the said stake holders are not idle but doing something

to contribute. The “stakeholder” concept, while good, is not

entirely accurate or representative.

There is also considerable debate in quality circles as

relates to how best to manage project and organisational

quality. Some hold strongly that a specific department or

wing to look at quality must be established whose task will

be to assure or control quality. Some companies thus have

‘Quality assurance/control’ units, sometimes with a

directorate! Others strongly disagree with that approach and

insist that quality must be embedded within the system so

that something is done once that guarantees success. This

view propagates the view that defects must be prevented

rather than reacted to. That said, we can safely say that

quality is a hot topic nowadays unlike in the past and will

continue to be for decades, yea, centuries to come.

To be a success, certain key information must be known at project

level. The points below summarise some key points which, though

seemingly simple may define success or failure.

a. Know and understand the donor/sponsor fairly well.

222 Quality quest


b. Know the donor/sponsor requirements and expectation. (I.e.

cooperative agreements, regulations etc).

c. Pace your project realistically.

d. Keep in touch with donor regularly (mutual feedback).

e. Anticipation and know who is who.

f. Get inside information before it is made public and position

yourself well.

g. Polish your profile regularly and ensure a high quality job

is done every time.

h. Meticulously manage your financial affairs well. Ensure

strong internal controls to inspire confidence.

i. Encourage periodic internal & external audits such as

operations audits.

In summing up on the project life cycle16, we can say that an

ideal project goes through the following stages:

1. Concept

2. Feasibility analysis (assessment)

3. Planning (design)16 Refer to Stevenson, Production/Operations Management, pp760 for more detailon this.

223 Quality quest


4. Execution (Implementation & monitoring)

5. Termination (Phase out, transition, close down or end, at

times redesign)

Some projects do not have a defined concept stage but whatever

the case some form of idea (proposal) is floated to or received

from potential sponsors before the actual work begins.

Thus, we have surveyed the project cycle landscape and must now

come to a close. We have seen that a project goes through

different phases and has a definite start as well as close out

date. In between are various stages that must be managed well if

the results are to be qualitative and tangible for all to see. In

the next unit, we proceed to consider some other aspects which

foster qualitative project management.

Case study 1

Chikondi Phiri-An upcoming leader

The interview at hand was carried out by Billy Sichone on 21st

September 2001. At the time of the interview, the respondent, Mr.

Chikondi Phiri, was the Area Development Program (ADP) Manager

for the Namuso ADP located 618 kilometres west of Lusaka. The

224 Quality quest


said officer has been in the area for three and a half years and

has been at the helm of one of the most spectacular

transformations that have taken place in World Vision circles.

Prior to his arrival, the program was riddled with multiple

problems such as a demotivated staff, continuous running inter

personal squabbles with the community and among staff themselves.

At the interview time, he was about to launch out to another

higher challenge having successfully turned around the mammoth

program back to sanity. Mr. Phiri holds an MSc in Water

Engineering and is currently pursing an MBA with the Redeemer

College, Canada.

Questions

1. Mr. Phiri, I notice that you have been at the Namuso

ADP for some time, could you briefly tell us about

yourself?

I first came to the Western Province in 1996 as a

project coordinator but shortly became a Program

Assistant. With the encouragement of my wife, we left

to pursue higher studies at the Morogoro University,

Tanzania. Upon our return in 1998, we were again sent225 Quality quest


back to Mongu where I took up Management up to date

when I leave for the Southern Province.

2. Is this your first Program to Manage?

Yes. As earlier intimated, I was a Program Assistant

until I returned from studies.

3. What, in your own definition is Management?

Management is the art of getting things done through

other people. This involves control, directing and

coordinating the implementation of activities to their

appointed ends.

4. What are some of the challenges you have faced whilst

at Namuso?

I have faced multiple challenges during my tenure in

literary every area especially so that it was my first

time to Manage a project. I found a diverse work force

with different goals and attitudes to work and out look

to life. I had to fit in and then meticulously turn the

tide to the correct direction, having been charged by

226 Quality quest


my former National Director, Mr. Bwalya Melu. There was

a lot of disorder at the time but through consistent

hard work and clear thinking, we have managed to undo

the mess and put Namuso ADP on the map. It has been a

team effort all the way through.

5. What is the workforce like at Namuso (Number of and

type)?

Presently we have a workforce of 7 members of staff at

the ADP office plus 15 others located in the Program

catchment area. In my estimation, they are all unique

but focused towards one common goal, to which end they

exert themselves.

6. How have you managed to lead such a diverse workforce

seeing that you took over whilst young?

That hasn’t been a problem at all because I knew the

source of my authority and carefully studied that

people I was going to work with. I was open minded and

ready for any challenges so as to handle them, which,

in effect is what Management is about.

227 Quality quest


7. What was the situation like at Namuso when you first

took office?

I found an emotionally torn project as they had just

lost a Manager. Due to some prior problems, the office

was disorganised and not systematic with staff highly

demotivated and somewhat disillusioned. There were just

too many unsettled issues at the time which needed to

be carefully and diligently attended to. As though that

were not bad enough, the ADP was in bad books with the

support office. Thus, the first year was largely spent

on clearing the past wreckage. For example, the

community had no kind words for World Vision as they

felt cheated at the sudden phase out of three previous

Community Development Projects (CDP). This was the dark

scenario in 1998.

8. What is the situation you leave now?

You wouldn’t believe it, but the face of the ADP has

changed drastically as people have a different view of

World Vision. Our image has risen in the following

areas:

228 Quality quest


Integrity

Financial Discipline

Christian Image

Performance / Out put.

Almost all our key staff are Christians of high

standing and do their best all the times. They work as

unto the Lord. We still have hurdles though but we are

certainly far much than before.

2. What is the secret of your success?

I wouldn’t say I have a secret per se but I think I

attribute all this to the teamwork culture we have

imbibed here. This has to do largely with the open

management that we have had and also being open and

truthful to the community as well. Consistency is very

important when working with community.

3. What do you view as your most valuable assert in your

work (people, machines, money)?

229 Quality quest


People! I value my staff so much as each of them is uniquely

structured to contribute to the welfare of the organisation. As

such, I ensure that each of them is treated well and each of case

treated as it comes. With the right people at the right places,

we can achieve phenomenal results. Unlike in the past where

people were treated as things, I think if they are treated with

the dignity that they deserve, they will sustainably go a long

way in doing good far above what I ask or imagine. Other things

are but mere things to advance our cause.

4. Are there still some Managers who do not value people?

Oh yes of course but thankfully, the attitude has changed

tremendously in World Vision as the ADP Managers have been

trained through the ADP 2000 leadership initiative as well as the

2003 programs in South Africa. We are moving on to higher ground!

5. Would you classify your self as a leader or manager?

230 Quality quest


I would classify my self as both though I think I am more being

moulded into a servant leader who facilitates rather then bosses

around, despite the constant temptation to.

6. What is the difference between a manager and a leader?

A Manager is one who merely controls, directs and implements the

goals of a said entity while a leader is one who inspires others

by being visionary while helping others along to achieve a given

goal. In other words, the leader is a coach, mentor and

facilitator while a manager controls the implementation of plans.

Now I use the word “control” guardedly because some people do not

like the term because the connotation of dictatorial tendencies.

14. What, in your own words, are the qualities of a good leader?

The qualities of a good leader are that s/he is visionary and has

the prowess to affect others towards a goal willingly. The said

person has a clear mind, listens to others, empathises, and cares

for the welfare of those s/he leads. Being a coach, the leaders

possesses noble consistent characteristic upon his/her chest such

as integrity, honesty, humility, open mindedness, willingness to

231 Quality quest


learn and change, time for people, patience and a personal

mission statement.

15. Obviously, you must have faced some challenges as a manager

in this part of the country, just how did you get round that

hurdle?

As I said in an earlier in answer to a question, I am a foreigner

while my staff all largely natives. Naturally, but especially in

Western province, there has been a prejudice against outsiders. I

faced all that but I approached it positively and determined to

prove my self over time. I think I have been vindicated by and

large.

16. You have a family I suppose, how then do you manager to cope

since you are very busy and travel extensively?

I am married to a wonderful wife, Anne with whom we have two

sons. From the beginning of our marriage, I have made sure that I

have involved her in my work such that she knows what goes on in

the office, what I do and I even consult her on a number of

issues. When we went for studies, she was there with me as though232 Quality quest


she too was actually doing the course! I remember the times when

I would come home exhausted, she would read to me and help me to

prepare for exams! This trend has continued though there are

times when I have to do certain things alone when pressed with

time. But at an appropriate time, she gets an update and then we

continue. This is the only way to balance things unlike a case

where the wife has absolutely no idea what in the World the

husband is up to!

17. You strike me as someone who is analytical and strategic as

well, how did develop those skills, has your previous

professional background have a hand in this?

Naturally, I like being clear minded and inquisitive, but this

has been enhanced through training and being coached by some

people.

18. Talking about strategy, what, in your own

words is strategy and how does it help you in planning?

A strategy is simply a plan to achieve a goal. In other words,

you come up with an ultimate goal and then ask the question,

“How shall we get there?” Thereafter, you proceed to map out a plan

and steps to achieve the goal. The route taken is the strategy.233 Quality quest


It is worth mentioning here that today, there is more and more on

strategic thinking rather than planning, I hope you know the

difference…

19. Would you classify yourself as a

perfectionist, as we note that things that come out of your

hand are of the highest quality?

I wouldn’t claim that I am a perfectionist in the strictest sense

but I must say that I like doing a perfect job all the time. When

I first took office at Namuso, I must confess that I had more of

those perfectionist tendencies. Obviously over time, I have

learnt that we are at different levels necessitating the need to

be patient while working to sharpen people to the required

standards.

20. In your view do you think that World Vision

in its implementation minds quality in out put? If not, how do

you perceive that it could be improved?

If you looked at our reporting and way of doing things just over

five years ago, you would notice what great strides World Vision

has made in the direction of improving quality. This is further

seen in the way people relate and do things in a team work kind

234 Quality quest


of fashion. At the National office, we have what is known as the

Program Development and quality assurance department (PDQA) whose

main objectives is to largely ensure that reports and delivery

systems in World Vision are of the highest levels. The other

thing that PDQA does is to ensure that they refine project

proposals from the various ADPs or indeed originate some

themselves to source funding for World Vision Zambia projects. In

terms of improving the status, I would just say the road to

quality improvement is a never ending one, I think World Vision

could improve by being open and ready to change in these

turbulent times.

21. How have you ensured that your staff is

motivated, give us some insights in this.

I have tried my level best to motivate people in various ways

such as complementing them when they do a good job, being patient

and ready to work with them, giving awards and in some cases,

advocating for some people’s pay rise although I think money

should not be the sole motivating factor. Other ways have been to

encourage my staff to go for short refresher courses that will

add to their CVs and build capacity in them. At other times, I

have taken an interest in people’s lives and visited them at home

235 Quality quest


when ill or just to say “hello!” Mastering peoples’ names has also

helped things.

22. How do you handle people who are:

a. Younger than you?

b. Older than You?

c. Less educated?

I treat them all as equals, each unique, with something to

offer. I am always conscious that I can learn something from each

of them. In addition, when they are treated well, they feel

motivated and will willingly do more. At other times, I have

advocated their pay rise for example though not diligently. I

believe that money should not be the single motivating factor to

work but could be one of them. I would rather provide the best

working environment.

23. What is your view of about training for

staff? How often should that be?

I believe that training should be continuous and available to all

without exception. We live in a dynamic world with new challenges

every day. 236 Quality quest


24. Do you think the budget should be a

limiting factor for training of staff?

I don’t think finance should be a limiting factor at all as

training is essentially for quality results, which pays back many

times over.

25. What is your view about the World vision

staff training policy? Do you think every one is adequately

catered for?

Potentially, the World Vision Zambia training policy is excellent

only needing more funds. Before I left for Tanzania, for example,

there were absolutely no training opportunities but now they are

available for many disciplines relevant to the organisation.

We may not cover every body presently but we are getting there

having made a start.

237 Quality quest


26. What are some of the ways that you have

managed to make people aware of the aims and objectives of

World Vision in the Mongu Area?

We have had brochures done, been on the national and local radio,

the National press as well as through our community leaders who

have done a marvellous job explaining who we are.

27. I suppose that World Vision is now talking

about sustainable development, how have you as a team ensured

that this ethos is fostered and up held?

We firstly have had the task to uproot the previous mentality of

handouts that the CDPs had employed and replaced them with new

ADP approaches. Having “disinfected” their minds we have gone

further to work along side the community, letting them identify

their needs and learn to manage their own development. This has

meant get them contribute something or offering them things on

loan. In the way, they have cared for and owned things lastingly.

In other words, we have taught them “to fish” rather then giving

them fish. This has proved more sustainable.

238 Quality quest


28. World Vision is in the business of

satisfying customers as well, who exactly are your customers?

How do you ensure you satisfy them?

Our customers are the Donors whom we seek to continuously satisfy

by providing timely and appropriate information at all times. In

a way, the children, whom World Vision assists are also our

customers. At all costs, the Donors must be satisfied or else

World Vision risks losing support.

29. In your own words, what is teamwork and

what is the place of it in World Vision?

Teamwork is simply working together across functional barriers to

achieve goals. This means working as an organism where there is a

free flow of ideas, information and methods of best practice.

Unlike in the past, where people restricted themselves to their

department, the modern office demands a matrix approach to issues

so as to reap the maximum benefits from each person. This

approach, akin to a football team is very profitable.

30. What are the goals of teamwork?

239 Quality quest


In my view, teamwork ultimately seeks to improve the product

quality in a conducive enabling environment. In other words, team

work improve and increases out put as people to achieve a goal as

opposed when they work as “Islands”

31. Can you cite an example where teamwork has

been practiced or attempted in the World Vision partnership.

What has been the result. Do you see this taking root in the

organisation?

In 1999/2000, World Vision adopted the teamwork approach having

noticed its benefits. Thus, the country was divided into regions

with each region having a leader. These regions had a rotational

leadership as each region was composed of many projects. This

went on for some time but seems not to have worked much probably

for a number of reasons. In my thinking, one of the main reasons

was that we were not ready for the change and needed to be

oriented much more, having all along been accustomed to an

independent approach to work. There could be some regions still

working as a team but by and large, we have informal ties where

we consult each other freely as we meet in conferences or call

each other on phone. It has helped tremendously. Having said the

240 Quality quest


above, I think teamwork is the right way to go and as more people

see the benefits, I have no doubt that we shall move forward.

32. At ADP level do you see any teamwork?

Oh yes! In fact that has been one of the greatest sources of my

elation that I have witnessed whilst I was at the Namuso ADP. As

I leave, I just marvel how people love their jobs and would

willingly put in their best to achieve a goal. They work over and

above to be reminded that they must go home to rest otherwise

they would go on and on! People are focused and freely

intermingle to share ideas and also to take over each others’

functions where need be. This emanates from the fact that people

now take interests in each others’ domains as opposed to the past

where they were content to remain within the confines of their

departmental walls. For example, almost all our staff are

studying, are all computer literate from the office attendant

upwards and have all acted as Managers before, (with the

exception of the office attendant) and each of them, though

initially surprised have all performed extremely well. This has

booted out put, innovation, creativity and motivation in staff.

This is simply marvellous! With respect to other ADP s, I have no

241 Quality quest


telling exactly where they are, but I have reason to believe that

they too are on the way to teamwork.

33. How has it been developed?

I think it is because of the approach that has been employed

where as manager I have taken time to study each member’s

strengths, and ensured that I use them in the right places

without the team members themselves knowing it. I have looked at

Namuso as a football team with different players who can play

certain numbers. In that way, as coach, I have strategically put

each person in the best place. This has meant that I have taken

the back role as a teacher, facilitator and coach, ready to give

support when needed. In the past I had perfectionist tendencies

and wanted to be bossy but over time, I have seen that it is more

profitable to be there to guide and empower people to do the

right thing sustainable. It has been so gratifying to see the

team members attempt new things, be creative and consult among

themselves without my direct involvement. Now at Namuso, I do not

worry about reports for example, because each department will do

its job diligently and timorously.

242 Quality quest


34. What are some of the benefits you have

observed during the build up of the same?

The benefits are many as can be seen from what I have mentioned

in the last two questions. Just to mention them again, there has

been an improvement in the quality and timeliness of reports.

There has been a marked improvement in the trust for each other

and an appreciation of each other’s function. This has led to a

situation where work will not be stalled or slowed down by the

absence of any team member because others will quickly take over

and over lap to cover up. By and large, we are achieving more

result than at any time ever.

35. What are some of the challenges/hurdles you faced on your

journey towards team build up of the same?

As in any process, I have faced many challenges. The first is the

diagnosis of the problem as I found a demotivated and

disillusioned work force that specialised in finger pointing.

This was not only at the ADP office but from the community as

well. The second was the process of getting people focussed

without any prejudice as well as getting the right resources to

foster the goals to team building. The third has been getting the

243 Quality quest


cohesive and having people discard the mistrust they had of

management especially so that I was not a native of the place.

The fourth was to get people analytical and think systematically.

Thankfully, the staff responded very well and slowly begun to

find their feet in this new setting. Culture change is hard and

takes time. It has taught me to be patient, humble and to lead

from the back seat. We still encounter problems but I am glad to

say that we are above the fundamental problems at this stage.

36. How do you arrive at a decision, which ultimately affects

every at the ADP?

I make the final decision ultimately in any case but I make sure

I get as much input from staff on many issues. In the past I

would make the decisions and pass them down but now, I consult

all the time and get the mind of the staff. Some times, I do not

have to make the decision because the staff discuss it and come

up with the answer! This has been amazingly true time and time

again. At the end of each decision, every body feels heard,

valued and thus owns the goal.

244 Quality quest


37. Do you ever have brainstorming sessions? How helpful

have they been?

Every morning, we hold an updating meeting after the morning

devotions. This helps us to keep focused. It is during those

meetings (about 30 minutes each day) that issues are brought

to the fore discussion and debate. At first, people were

reluctant to air their views for fear of being misunderstood

or making a mistake but now there is liberty. We allow people

to bring in all their ideas, including the crazy ones and then

we begin to analyse and discount them one by one. In the end,

we arrive at a decision that satisfies every one to the extent

that no one has the audacity to claim that they had no hand in

the decision. In that way, people will go full throttle to

support the decision. To answer your question, we do have

brainstorming sessions depending on the situation.

38. I notice that you are quite apt to handle Information

Technology (IT) problems and that your staff are generally

computer literate, how have you arrived at this stage (your

staff trained as well as yourself)

245 Quality quest


When I took office, I noticed that there was a high dependence on

the Admin assistant for every piece of typing. As such, there was

always a queue of people waiting to be attended to leading to

great inefficiency. I noted that if all were trained and had

access to computers, they could each type their own work and thus

increase productivity. Being a firm believer in IT knowledge, I

determined to get as many computers as possible for all to use.

Besides, this is an information age where one cannot afford to be

computer sills deficient. Therefore, we have slowly passed on

information to each other over time. I was first exposed to the

computer in 1994 and have made every effort to learn and master

the operations of a computer and thus pass on knowledge to

others.

39. What is the best way to train/coach some one?

I think the best way, which I have found effective, is to

first teach them the principles and then let them attempt

something. When they get stuck, you can then come in to help.

You must ensure that you are open, patient, approachable and

reliable. You must be ready to help at any time and not seen

to despise your student. In that way, your friendship will

246 Quality quest


grow and go beyond that particular problem but to other lawful

areas of the work life. People must look up to you as a

facilitator not as a “know it all” kind of person who bashes

everyone else when they make a mistake.

40. You seem to be widely exposed, could briefly tell us

about your travels abroad? What have you learnt?

I have not travelled much per se but I see myself to be on the

road more often hereafter. So far, I have been to Tanzania,

Zimbabwe, South Africa (Several times) and Canada. I have

learnt just how different people look at the same thing in

different ways. In some cases I have been stunned but have

adapted. This has been a major paradigm shift for me and has

thus helped me to fit in appropriately in different

circumstances while managing a culturally diverse workforce.

The other thing that has helped me is reading widely all the

time. I am the curious sort.

41. In your quest for excellence, who do you perceive as

your mentor (s) and why?

247 Quality quest


I have mentors quite alright but the greatest motivator in my

life is my dear wife Anne. She has always given me unwavering

support and valuable advice that has proved accurate. There

are many times I have felt frustrated but in her own unique

soft way prodded me on to greater heights of excellence. As

such, I would say that she has been by far the greatest

motivator. In terms of work performance, two men stand out as

having left an indelible mark on my life. The first is Mr.

Stephen Tembo who exposed me to the computer and consistently

lived the Christian life while I lodged with him for two

years. The other is Mr. Mapanza Nwilimba from the World Vision

National Office. He has always inspired me as a good, patient

and consistent teacher. Despite being very strict, he is

unmatched as a coach. Both these men are leaders par

excellence in that they are resilient, patient, consistent,

objective and focused in life.

42. Kindly give us some titles that you recommend and why?

I have many titles to hand but I respect Green’s Servant

leadership, Covey’s 7 habits as well as principle centred248 Quality quest


leadership. I also enjoy reading periodicals such as Executive

Excellence that has fine articles that are pragmatically down

to earth.

43. As we draw to a close, what are your future goals and

what is your advice to those that are aspiring to be

motivational leaders in coming days?

My chief goal is to go as high as possible in my work to do as

much as I can while I have breathe. In doing this, I will be

serving my Master, the Lord Jesus Christ who has safely led me

hitherto! As for those aspiring for higher challenges, I would

advise them to work hard, especially on their studies. I would

urge them to study, study, study and get that paper!

Thank you for the interview Mr. Phiri and I wish you well in

days that lie yet future.

You are welcome.

End

249 Quality quest



What has distinguished Chikondi Phiri in his career?

What is the secret of his success in management?

Do you think Chikondi is a leader? Substantiate your answer.

What is the place of quality in World Vision Zambia?

Are mentors relevant today? Explain your answer giving one mentor

you have, if any. What inspires you about them?

What place does your spouse occupy in your busy schedules?

Explain the role of team work as relates to project quality and

efficiency.

How relevant is IT to project quality?

Case study 2

Go to the following site and read the case and then answer the

case study questions:

http://www.cnn.com/2009/US/03/27/no.freedom.tower/index.html


What are your general observations about this case?

250 Quality quest

http://www.cnn.com/2009/US/03/27/no.freedom.tower/index.html


Is this a project? If so explain why.

How sensitive is this project? Give sensitive points that you

sense.

Find a similar contemporary case study that has similar

challenges.

Do you think this project is achievable in the given time frame?

What are some of the inputs you would expect?

How does the change of name to the building affect business?

Explain why.

Revision exercise

Describe and explain the project life cycle

What is the log frame approach and a log frame?

Why is the log frame very important to project management?

What are internal controls and mention one such internal control?

What is cash flow management and how relevant is it in project

management?

When is an evaluation meaningful in the project cycle?

What is DME?251 Quality quest


What is the importance of Monitoring?

Explain three things that a log frame achieves and its merit?

Give any alternatives to the log frame approach.

Give the hierarchy of objectives in a 4X4 matrix (logframe)

What is an assumption? What about a “Killer assumption”? Why is

it thus coined (“Killer”)?

Give some qualities of a competent Project Manager.

What is the role of the sponsor in project management?

List some of the challenges faced by projects and how they can be

overcome.

Distinguish between Source of verification and means of

verification.

Who supervises the M & E officer and why? What is the role of the

M & E officer?

How different is the M & E officer from an internal auditor?

What are the merits of an operations audit over a financial

audit?

252 Quality quest


Why don’t monthly management reports qualify to be a source of

verification?

What is meant by the statement “A goal must be SMART”?

What is a data base?

What is the role of an M & E plan as well as an ITT?

Bibliography.............................The Leadership

Deception................................

Baker Larry & Douglass Merril, Time Mastery Profile: How to

manage your time more effectively, carslson Learning Comapny,

1992

Blanchard Ken & Muchnick Marc, The Leadership Pill: The missing

ingredient in motivating people today, Free Press, 2003

Brake Terence, Managing Globally, Dorling Kindersley, 2002

Burnes Bernard, Managing for Change, FT Prentice Hall, 4th

edition, FT Prentice Hall, 2004

Buttrick Robert, The interactive Project workout, 2nd edition,

Pearson Education, Pearson Education, 2000

253 Quality quest


Covey R Stephen, Principle Centred Leadership, Simon & Schuster,

1991

Covey Stephen, The Seven Habits Of Highly Effective People, Simon

& Schuster

CSO, Zambia in figure 2003/2004, GRZ (www.zamstats.gov.zm)

Davies Anthony, Managing for Change, ITDG publishing, 1997

Heller Robert, Effective Leadership, Dorling Kindersley, 1999

Heller Robert, Managing Teams, Dorling Kindersley, 1998

Kinicki & Kreitner, Organisational Behaviour, 4th edition,

IRWIN/McGraw-Hill, 1998

Kotler Philip & keller Kevin Lane, Marketing Management, 13th

edition, Pearson/Prentice hall, 2009

Kouzes James & Posner Barry, The Leadership

Challenge..................

Maylor Harvey, Project Management, 3rd edition, Pearson

education, 2003

Patton Quinn Michael, Qualitative Research & Evaluation Methods,

3rd edition, Sage Publications, 2002

254 Quality quest

http://www.zamstats.gov.zm/


Poltorzycki Stephen, Creating Environmental Business Value:

Achieving two shades of green, Financial World, 2001

Schroeder G Roger, Operations management: Contemporary concepts

and cases, 4th edition, McGraw Hill, 2008

Stevenson J William, Production/operations Management, IRWIN, 5th

edition, 1996

Zikmund G William, Exploring Marketing Research, Thomson South

Western, 2003

Unit 5

Aim

The aim of this unit is to appraise students with Human Resource

Management (HRM) as well as help them differentiate HRM from

Personnel Management (PM) in recent trends.

Objectives

By the end of this Unit, the student should:

a. Define Human Resources management

255 Quality quest


b. Understand what HRM is at project level

c. Understand why a motivated staff cadre is key to project

success

Over view of contemporary practice and recentchanges in Human Resources Management

“People are the most important resource in all business and

government endeavours” Yoder & Staudohar17

Project management goes through many cycles and seasons and thusneeds to have the right structure and resources. Behind every

successful entity is a diligent staff cadre that usually devote

themselves to achieving their objectives in a given time frame as

well as indirectly lobby further support from would be sponsors.

A high profile successful project leads to greater opportunities

and responsibilities. As such, evaluators are curious to find out

about the success factors and ingredients that contributed to

scoring. One area that will never miss out in that analysis is

the issue of what type of staff were on the winning team. The

question asked is: “What made them tick where myriad others

failed”? What was their secret? In this unit and the next, we

explore this critical function of Human Resource management as a

17 Yoder Dale & Staudohar D Paul, Personnel Management & Industrial relations,7th edition, Prentice Hall of India, 1986 pp5

256 Quality quest


component contributing to a quality project and in some cases,

programs.

Without doubt, the quality of staff the project employs will

definitely have a bearing on the outputs and ultimately outcomes

of the project although some argue that outcome is beyond

control. Once the project has the right blend of star team

playing performers, the project is nearly guaranteed to succeed

though sadly this rarely happens. The question that perhaps begs

answering is why? Why should one project succeed while the other

in the neighbourhood lamentably fails? These and many questions

will be touched on in the present unit. We commence an

examination of this unit by giving some preliminary statements

and then later delve into some definitions and explanations.

Preliminary statements

1. Projects succeed or fail depending on the quality of staff on

the project team

2. The human resource component should be treated with meticulous

due care throughout the project life.

3. Continuous staff motivation is key for staff retention

4. Continuous training enabling staff acquire fresh skills set is

critical at all times.257 Quality quest


5. Investing in staff development is not a waste of resources.

6. Inept staff should be laid off but keep work as professional

and objective as possible.

7. Staff performance must be documented and referred to during

appraisal time.

8. A High staff turnover signifies a problem somewhere.

9. Focus on the process and systems rather than on individuals.

10. A team work culture is the best and enables everyone to

achieve more. Synergy usually results.

11. There is diversity in the team and not all staff members are

the same or perceive things the same way.

Having made the preliminary statements, we now progress to

consider the definitions so that we are on the same page before

we delve into other equally critical matters related to

qualitative human resources management.

DefinitionsIn this discourse, various words are used some times

interchangeably but for the sake of clarity in this unit, we

258 Quality quest


shall confine ourselves to the correct usage of terms. For

instance, the term ‘Human Resource’ is used synonymously with

‘Personnel Management’ or ‘People Management’. We have avoided

this mix up by defining each of them as well as to some extent

differentiating them.

To kick start our definition, we define Human Resource Management

(HRM) itself and then later look at the other two.

Various authors have defined HRM variously while others have not

given a definition at all but simply described it as

distinguished from other terms. For instance, the Wikipedia

website has defined it as “Human Resource Management (HRM) is the

strategic and coherent approach to the management of an

organisation's most valued assets- the people working there who

individually and collectively contribute to the achievement of

the objectives of the business.”

Another authority (Cherrington), has not really defined it but

has described it. The writer has this to say: “Human Resource

Management is responsible for how people are treated in

organizations. It is responsible for bringing people into the

organization, helping them perform their work, compensating them

for their labours, and solving problems that arise"

259 Quality quest


As earlier intimated, HRM is defined variously by different

authors and practitioners. Many use the words “Personnel

Management” and “Human Resources Management” interchangeably but

strictly speaking, these are different as we shall see later. For

now, we focus on HRM definitions:

Definition of contemporary HRMAs earlier intimated, many have undertaken to define HRM but

below is one contemporary definitions:

“HRM is that function of general Management that ensures the

recruitment, retention, motivation and empowering of the right

people in the organisation enabling the entity achieve its goals

in the most cost effective and efficient manner” (Billy Sichone

2009)

From this definition, several points are highlighted that

constitute this lay definition. We isolate the following:

a. Recruiting: Recruiting carries the connotation of

attracting people or getting their interest and attention

to something you are doing or offering. In this case, the

entity advertises to the whole world seeking interested

individuals express interest and subsequently to apply so

that they can be considered for the offer. The

recruitment process itself is not the hiring but the 260 Quality quest


first stage to that which is followed by a short

listing/selection for interview, the interview itself and

picking the best candidate according to laid down

standards and then offering them the job. Should they

consent, then a contract is signed by both parties and

the person comes on board. Therefore, it is the duty of

the HR department to analyse the staff needs and look out

for the best talent possible on the market. The project

manager must be aware of the needs at all times and plan

to attract the best talent and team players.

b. Staff retention: Having hired the right staff and brought

them on board, the battle is far from over, these people

must be kept interested in the job in the company as much

as possible throughout the contract tenure. To do this,

the HRD ensures that each person on board is kept as

happy as possible with the limited resources available

and will endeavour to do every and anything to minimize

the staff turnover or attrition for this has implications

on the corporate/project image, achievement rate, quality

and motivation. Thus, the project manager should do more

than just hiring but keeping staff interested long enough

until the work is done.

261 Quality quest


c. Motivation: Closely connected to point (b) above, the HR

must make the environment not only conducive but one in

which staff will desire to voluntarily work as long in

the process achieving the personal goals and objectives.

Each person has their unique personal goals and will do

everything possible to get what they want regardless of

where this may be found, as long as it is lawful. If a

competitor company or indeed project offers better

conditions of service, working environment or culture,

naturally, people will gravitate to that place and offer

their best skills there. As earlier intimated, motivation

has to do with inspiring people’s inner resources to

voluntarily keep on working or doing something in a

specified direction. Staff motivation methods take

different forms such as high net pay, capacity

building/training, loans, work culture & environment,

leadership style among many.

d. Empowering: This is a broad term but in a nutshell

connotes giving power to staff so that they stand on

their own during and after employment tenure. Whilst in

employment, they must be equipped with the necessary

skills and knowledge so that they continuously

competently do a good job on their given tasks and

262 Quality quest


assignments. Staff feel secure and good if they are

allowed to try out new ways of doing things or given lee

way to make decisions that they perceive important and

appreciated for their effort(s) and innovation. In that

way, they not only learn new things but gain confidence

in what they are doing. Every employee however has an eye

towards life after contract and spend considerable amount

of time and energy preparing for the rainy day ahead.

This affects their performance. Thus, if an employer

empowers them to acquire competitive skills or “layup

treasure” upon which to lean beyond formal employment,

they will certainly put in their best. The project

manager then must be interested not only in work related

matters but beyond-how his or her staff are preparing

their exit strategies.

e. Succession planning: Attrition is a fact of life which

none of us can successfully evade. One way or the other,

we all shall leave our current jobs by either death or

quitting getting another. This invariably means that a

gap will be created where we now sit but the job will

still need to be done, regardless of our state. To

forestall this, the HR must strategically position a pool

of staff that are potentially competently able to take

263 Quality quest


over once a person leaves. This calls for clear strategic

and long range thinking. Unfortunately, for some reason,

even the most sophisticated organisations have succession

problems and wrangles. That said, others have very few

problems and will have been grooming a set of people or

individuals way off to take on a function once any one

leaves. There is a cost however to this but it is far

cheaper to prepare for such an eventuality than not to.

Recently, World Vision International selected a new

International President (Mr Jenkins) that succeeds the

venerable Dean Hirsh, but only takes over the mantle on

October 1, 2009. In the interim, there is hand over

period of over six months but the selection process

started over two years before 2009! Managers must think

about these things and plan even for their own exit. I

know this is a touchy subject but must be done none the

less.

Evidently from the foregoing, we can safely assert and conclude

that HRM focuses more on capacity building ensuring that the

right staff cadre is kept on board to reach the desired corporate

objectives and goals.

264 Quality quest


Strategic place/importance of HRM in project managementHuman Resource is an important function that cannot be ignored

anymore. From a back yard department to the forefront, HR demands

that people be viewed as the most valuable asset that the

organisation has far above fixed or current assets. Some projects

valuable vehicles above staff and the first question they ask

after a project vehicle accident is the condition of the car!

Their mind is more on pleasing the donor and how to explain but

you will be surprised to learn that sometimes sponsors are more

interested in staff welfare than the machines. A vehicle can be

replaced not life. That is in no way encouraging carelessness

with assets! That said HR is of prime importance today in all

entities because of its strategic connotations and implications.

Below we tabulate some of the reasons why we consider HR very

important:

1. HR ensures staff retention and motivation.

Although staff cannot entirely be prevented from tendering in

their resignation letters, they can unwittingly be delayed or

discouraged to by the way HR courteously treats them or attaches

importance to them. If HR is on hand all the time and ready to

listen, people will be reluctant to quit unless some very serious

265 Quality quest


matter forces them to. It has been documented that money is not

the only motivator and thus, other non-monetary incentives can be

strategically used and exploited to achieve the desired goal. HR

and apt managers have a hidden power to delay or hinder staff

departure if they have connected well with people. A bad HR

practice as was at the Quest (case study) definitely is a recipe

for disaster and high staff turnover.

2. With correct HR input, efficiency and cost effectiveness is

achieved.

Cost effectiveness and efficiency are the cries of many projects

and institutions. Despite planning and widely consulting before

and undertaking is implemented, there is always “Murphy’s law”

along the way to disrupt things at the critical hour. In one

breathe, everyone on the team is all fired up and excited to do a

task but in the next, everyone has quit and gone elsewhere

creating a gap in project implementation. HR comes in here to

mitigate the impact of this staff attrition by ensuring that new

staff quickly get into the vacant positions and continue flying

the plane. Eventually, this cuts down on costs, delays and

enhances efficiency and effectiveness.

3. Ensures continuity as succession is taken care of.

266 Quality quest


As earlier alluded, it is important for any entity to acknowledge

the reality of staff attrition in various forms and prepare

accordingly to avoid needless shocks and panic in future. HR

plays that strategic role of anticipating changes as well as

developing a pool of potential successors so that work does not

stall. The Zambian Government used to be very good at this years

go and even had a specific department (Directorate of Manpower

Development and training, DMDT) whose primary function was to

train and prepare staff for better service in future. Thus, the

Government rarely had staff gaps in the respective

establishments. Some NGOs are also good at that though very few

and far between. That said, HR and project managers play this

strategic role of ensuring continuity.

4. Enriches jobs thereby improving staff retention.

Job analysis and enrichment continuously takes place in the

organisation with a view to refine or improve on the job richness

that people do. If someone has been doing the same old procedure

for ten years, they eventually lose interest or concentration. In

other cases, they turn into “corporate terrorists” as they suffer

from the founders’ syndrome or simply are frustrated. This

happens when new junior staff come into the project and soon

surpass them rising to the top in record time. To mitigate this

and avoid other ramifications of a boring job or procedure, HR 267 Quality quest


explores ways to enrich jobs as well as ways of motivating staff

such as added responsibility or even reducing the present work

load. Various tools are used to do this but Boydell has done much

work in that area worth consulting. To some extent then, the HR

department and project Manager must have the ability to tell and

recommend appropriate changes periodically consistent with the

changes in the environment.

5. Builds and empowers people beyond the organisation.

Professional HR practice aims at improving and empowering the

softer qualities of a person so that while they serve and after

they leave the organisation, they will be far better than when

they first took up the appointment. In other words, HR turns

blunt wood pierces into swords that achieve far much more. It is

said of John Calvin of Geneva (1509-1564) that people would come

to him for instruction as blunt tools but return to their

countries as sharp spears! That is what any HR practitioner or

Project Manager should aim for. A project life is usually short

and in that time, the project staff must achieve both the project

and personal goals and this hinges on strategic leadership.

Some recent changes: From ‘Personnel management’ to

‘HRM’ to ‘People and culture’

268 Quality quest


Consistent with the rapidly mutating way of the world, HRM has

had different faces, emphasis seasons and attention over a long

period of time. From being an insignificant, non essential

discipline, the trends have been changing consistent with the way

people perceive HRM. Grobler et al18 attest to this assertion in

their book “Human Resource Management in South Africa” as

follows: “Modern Human Resource (HR) is radically different from

Personnel Management of decades ago.” Among those that helped to

change this perception is the venerable Peter Drucker who held

and taught that people were the most valuable asset of any

organisation rather that a drain to the pocket. If that is so,

then it means that they (people) need to be treated well,

motivated and appreciated by way of good conditions,

remuneration, reward and positioning. Lately, however, as a

result of the changing perceptions of this function, the HRM has

been termed variously. At first, it did not exist as a department

probably because it was not considered critical or assumed all

human concerns were automatically taken care of once one got

employed. With time, it would appear that departments were set up

and came under the umbrella of “Personnel Management” which

largely focused on hiring as well as firing. Again, as times

changed, Personnel Management encompassed aspects of motivating,

18 Grobler Pieter et al, Human Resource Management in South Africa, 3rd Edition, Thomson, 2006, pp2

269 Quality quest


capacity building, training, succession planning among many

things rendering the term “Personnel Management” inadequate to

denote all those aspects in capsule form. The term “Human

Resources Management” ascended to the throne and has been there

for some time. However, as business took on an international

dimension, the term “People and Culture” is increasingly taking

its rounds. This later development encompasses people management,

cross cultural mixed staffing, self managing and virtual teams

among many. We have no telling where this leads us next.

However, it is prudent for us to briefly give a definition of

“Personnel Management” so that we appreciate its distinction from

HRM. Here is a makeshift definition:

“Personnel Management (PM) is that function of people management

that focuses on the logistical well being of staff enabling the

organisation to reach its goals. This includes hiring, firing,

payroll, advances, staff loans among many” (Billy Sichone 2009)

This definition once broken down touches on:

a. Logistical staff well being. In as much as HR is concerned

about such matters with respect to motivation and retention,

PM is equally concerned about the staff’s wellbeing in areas

that have to do with their logistical affairs such as

office, appointment letter/contract, settling, policy 270 Quality quest


documents and whatever support a staff initially needs to

know or have when they newly enter, stay and leave the

organisation.

b. Hiring. Many people think the sole function of the Personnel

department is to “hire and fire”! In a sense they are

correct but not entirely because there is far much more that

PM involves. However, for this point we can safely assert

that once the right people have been recruited, the

personnel department ensures these are interviewed, selected

and hired for the job on offer. This hiring involves

drafting an offer letter to the would-be staff member. In

this regard, at project level, the Manager functions both as

HRM and PM both in one unless the project or program is

large scale needing a specific staff to handle those

aspects. It is none the less critical for authorities to be

abreast with what the times demand.

c. Firing. This is the sad and most painful part of the PM

function, parting and tearing away from colleagues you have

worked with. If for some reason it becomes necessary to part

Company with a particular individual, the Personnel

department has that duty to execute what has been decided.

Some time ago, a colleague of mine was instantly fired for

misconduct and the people that dealt with this matter were 271 Quality quest


the Personnel Manager who did it with great pain but had no

option. Therefore, once a person steps on the wrong end of

the stick, yea, crosses the line, the Personnel department

will be on hand to usher them out! What a task!!!

d. Loans. As often happens, we all get hard up and broke once

in a while. The only alternative we have at such times

perhaps is the organisational coffers and depending on the

organisational policy on loans, the Personnel department

will again rise to the occasion and give the exact position

whether it is possible or not.

e. Advances. Closely connected to loans are advances which are

technically very short term loans. In a sense what a person

does when they apply for an advance is to request a pre

payment before the stipulated right time arrives. This means

when the right time arrives, the person does not get their

dues although they must work for what they got. The project

manager, with the help of the finance person must be well

versed in these matters and keep a tab on this one as it is

sometimes abused. Some organisation however does not permit

advances for various legitimate reasons. Once again, the

Personnel department will be on hand to assist on this

matter.

272 Quality quest


f. Leave. Keeping track of the accumulated days per employee

may be a difficult task for some but the personnel

department keeps all these records and advise how many days

one has accumulated as well as processes requests that reach

the office. Leave may be of various types such as

compassionate, study, local and annual among many. In each

case, the applicant fills in a form which is processed and

approved accordingly, and leave pay effected if allowable

and relevant. At project level, the manager is the goal

owner and ensures the correct thing is done all the time.

g. Health matters. Although HR deals with this aspect as well

but PM ensures that staff are in good health at all times so

that they maximise their output. In addition, the personnel

department ensures that an appropriate health facility is

accessible to staff at all times. In some progressive

organisations, staff and immediate biological family are

catered for as well. The project must rise to the occasion

in the event their staff fall ill or have been injured in

the course or duty assuming they are still in employment.

h. Policy issues. As earlier hinted at, once staff initially

step into the organisation, they are blank except for the

little research they have done on the said organisation.

They come with their own baggage, set of practices and 273 Quality quest


expectations. It is the duty therefore of the Personnel

department to immediately hand critical necessary documents

to such an one so that they quickly peruse through,

understand and know what to do while the iron is still hot.

Technically though, the HR department deals with this aspect

but it is important to make sure the organisational policies

are on hand as soon as someone comes on board. This entails

a deep knowledge and appreciation of the extant policies by

those that would administer them. For instance, the project

manager or personnel manager must have the correct

interpretation of whatever is contained in the policy

document.

There are many other areas that our definition of PM touches on

or does not that we leave for the HR gurus to deal with in

detail. Suffice it to say that HR and PM are different in focus

and approach although they merge as well as overlap in more areas

than differ.

That said, we need to realise that we are operating in a fast

mutating and dynamic world. Things are changing all the time and

so should our techniques in managing people. To give snap shot of

what we allude to, we give a brief description of some relevant

current subjects in a global economy especially for those

274 Quality quest


international project workers. These are relevant for both the

local and international scene and worth musing over.

International Human Resources management in perspectiveIn many senses, International Human Resource Management (IHRM) is

pretty much the same as the regular localized HRM that we are all

accustomed to except that several parameters change as we add the

international dimension. One of the first culture shocks one

encounters on the international scene is the amount of relativity

and just how people perceive the same thing differently. As an

international project Manager, you have to be armed with the

right credentials and traits to handle this relativity and to

some extent, the uncertainty that goes with an international

assignment. In discussing IHRM, we cannot avoid the following

points:

a. Third country employees: These are staff from a country other

than the country of project origin where the project originates

nor indigenous to the work area. For instance, a US project

operates in Zambia but hires a project manager from Mali. This

entails that they are expatriates much like those from the

country where the project originates.

275 Quality quest


b. Indigenous employees: These are local staff hired to work with

a project of international origin. These are treated as local

staff rather than expatriates. These are far much easier to

handle for the indigenous HR practitioner because they easily

connect and able to read the cues, understand the values as well

as perceive things in similar light.

c. Country of project origin employees: these are staff sent from

the country where the project originates with a view to either

give technical advice or simply to get employed and in the

process acquire experience. These too are usually on expatriate

conditions of service since they have left the comfort of their

home countries to work away from family and friends.

The above staff cadre will usually be interwoven in one

multicultural team, each of them with their own peculiar demands,

work cultures, preferences and desires. The project manager

cannot escape the group dynamics that are generated by staff from

different backgrounds and orientations.

For a fuller treatment of this section, refer to Schuler et al

whose book is solely devoted to IHRM. You could also refer to my

book, “The Strategic Horizon” which has a larger and deeper

treatment of this section.

276 Quality quest


That said, we can safely say that international project

management is here to stay and its high time people started

considering international assignments.

The virtual organisation and HRM

With the advent of the borderless virtual organisation, there is

need to change the way we handle HR matters. In the past, same

location projects and teams could easily interact and get

immediate feedback about many matters but there is need for a

complete paradigm shift in the mind of HR practitioners. Whereas

in a regular project, the manager could easily make decisions

that would easily be consented to or respected by subordinates

and colleagues, the multinational virtual team may have a

different face and that for good reasons such as:

a. Time differences

b. Cultural differences

d. Different perceptions and orientations.

e. Communication challenges

f. Different expectations and interpretation of policy.

277 Quality quest


The virtual team dynamics are largely different from the regular

teams as people cannot see each other and somehow read

expressions from each others’ behaviour. Granted, gestures also

differ but if they are in the same place, they can easily ask and

correct the situation immediately unlike in cyber space.

With respect to practice, the HR practitioner must come armed

with the necessary attributes to handle the relativity that comes

about with crossing time zones and cultures. For instance, is a

North American agrees with an African project colleague to meet

on skype at 14 hours GMT for a chat, the American must factor in

an allowance of technological glitches, time delays and all sorts

of things that might come in the way. When they do finally get to

communicate, the American wants to go straight to business while

his/her colleague wants to greet and find out how things are at

home! These and many other issues must be carefully managed in a

virtual environment. If the virtual organisation has staff

scattered all over the globe, then there is need for an extra

effort to ensure people are on the same page and are responsible

individuals of a self managing team. In addition, the virtual

team entails there should be mutual trust, accountability and

consistencies by all parties on board the organisation lest all

things fall into disarray. That said, there is no escaping this

278 Quality quest


virtual organisation with all its challenges, the best we can do

is to position ourselves and brace for the challenges ahead.

Generation mix issue

Increasingly, the differences between generations are becoming

apparent as people from different eras meet and have to work

together. The older folk seem to appreciate reverting to rules

and regulations as they work while the newer and younger

generation would like to get things as quickly as possible

without much ado, many times disregarding policy or rules, which

they perceive as needless red tape and bureaucracy. When these

two groups are on the same team, expect some sparks initially but

as the team members mature and accommodate each other, expect a

mutual learning experience, assuming each party is ready to learn

from the other. Increasingly, modern writers have recognised this

matter and write about it. Their view, unlike the older folk, is

that as cultures collide and generations mix in one pot,

perceptions invariably will differ. This challenge is therefore

worth approaching positively and managing well. The author once

worked in a program where the Manager was from an older

generation while the rest of the younger team mates were from

279 Quality quest


another age. There was often drama in the office until both sides

begun to appreciate each other’s perceptions.

Hiring for tomorrow

In the light of the rapid changes constantly taking place all the

time, there is need also to alter some time honoured practices

such as how people are recruited as well as what to look for in a

potential candidate. The Manager recruiting staff and desiring to

constitute a working team must look far beyond the regular things

that employers look for such as academic credentials, experience

and whether they are malleable or teachable. In as much as these

traits are good, essential and important, there is need to do far

much more home work in arriving at the best staff profile to work

in projects of the 21st century. We suggest some things potential

project managers or employers should look out for in the

potential team members.

1. Technologically apt and proficient. This means staff must be

at home in a hi tech environment where computers, machines and

all modern gadgets are the norm and used as tools rather than

status symbol issues.

2. Team playing skills. Staff must be self motivated, responsible

and proactive in their team playing role. They should aim for

280 Quality quest


collective good and success rather than individual brilliance,

although this has a place in the right context.

3. Exposure, preferably international. The world is getting

smaller as globalisation makes inroads into our world. Relativity

is increasingly the norm as we head towards homogeneity of tastes

and perceptions. In the interim, our sharp differences remain and

must be meticulously managed for the team’s good.

4. Flexibility and ability to learn new skills set. In the past,

our forefathers survived with one skill set throughout life but

things are changing and have changed. Staff need to constantly

acquire and appropriate a fresh skills set all the time so that

they remain relevant and useful. Rigidity and one track

mindedness is the sure way to fall over the career precipice.

5. Ability to work in the virtual organisation as well as the

paperless office. In the past, offices were filled with all sorts

of paper work, red tape, bureaucracy and various policies such as

the dress code, corporate layers and the rest of it but things

have drastically changed and so must the employee of the future.

6. Goal and task oriented. This staff cadre must work on tasks in

a given time frame with a view to reach the goal in the shortest

possible and most cost effective manner. Once they put their hand

to the plough, there is no looking back, as it were. Until the 281 Quality quest


task is done, they will not rest, given the time constraints in

the click generation.

Bruce Tulgan, Carolyn A Martin, Richard Bellingham, Gary Salton,

Terry Fitzwater and others have done some extensive work on this

matter and their books19 published by the Jaico Publishing house

is worth your perusal.

Recruiting and retaining the best talent

Today’s highly competitive world demands the best talent on

board. To recruit and retain them on your staff team is one of

the most difficult challenges an HR practitioner faces. This is

for a good reason: People are looking for value for money,

regardless of where they can get a good job. It does not matter

whether they are at home or abroad, if the skill set is relevant

and equal to the task, with demonstratable evidence to buttress

their cause, then they are in business for as long as they are

useful and add value to the world. By definition, recruiting

carries the connotation of attracting the attention of potential

employees or consultants for possible hiring having gone through

19 Refer to “Virtual teams” by Bellingham, Tulgan & Martin in “Managing the Generation mix”, Tulgan in “Recruiting the workforce of the future” Fitzwater in “Documenting employee performance” and Salton in “Organizational engineering” All these titles are published by the Jaico publishing house. Another book worth consulting is one by Manfred Steger called “Globalization: A very short introduction” by the Oxford Press. Steger sets the stage for global thinking exceptionally well.

282 Quality quest


the selection processes. After successfully getting them on

board, the next challenge is to keep them interested enough so

that they stay and contribute as much as possible. Usually, the

best talent is found among the educated, exposed and experienced

people on the job market but there is a price to be paid to

retain them. These are called ‘Known quantities’ probably are

probably past the job application stage. Instead, Companies and

institutions pursue them to consider joining their staff team.

Alternatively, the organisation can invest in training people

with a view to fill in the future gaps. This is an expensive

venture as well as a gamble to some extent but this in and of

itself may be the way to go depending on the context and what has

been agreed between the two parties (employer and employee).

After all, modern and post modern management practices highly

encourage continuous training and staff improvement/capacity

building. There is no escaping unfortunately.

As regards project management then, HRM is a critical function

that cannot be over looked.

If it is neglected or given a low view, the adverse off shoots

soon begin to manifest in the following ways:

i. High staff turnover (Staff leave the organisation or project

and joint the next.

283 Quality quest


j. Reduced productivity (e.g. output lowers, time of doing

something lengthens, inefficiency, costliness, excuses etc)

k. Project sabotage (e.g. theft, fraud, collusion, disruption,

carelessness, abuse of assets, ‘dirty deals’ etc)

l. Dysfunctional teams (instead of building synergy, people

compete against each other, self takes the centre stage)

m. Unresponsiveness (ignoring, responding at will, passive

resistance etc)

n. Poor quality output (work done with little commitment, work

done but with errors, incorrect, poorly packaged,

misinformation)

o. Poor time management (late arrival at work area,

persistently working late)

p. Bad attitude to work and supervisors.(i.e. passive

resistance)

q. Absconding without permission (e.g. absenteeism).

r. Destroying of corporate image (e.g. by bad behaviour,

obscene talk, fighting on duty & other vices etc)

s. Poor interpersonal relations (turning to backbiting, gossip,

rumour mongering malice, cartels, busy bodies etc)284 Quality quest


t. Increased morbidity

As we come to a conclusion of this basic HRM/PM introduction it

is prudent for us to state that Human relation issues are equally

critical in project management as well as this impacts on the

ultimate project delivery quality. If staff are not well treated

or their supervisors are weak in this area, then expect an

avalanche of problems. Poor HRM abilities is indeed an recipe for

disaster and confusion leading to all sorts of undesirable

behaviour patterns that may include project sabotage,

dysfunctional teams or even disruptions with the

partners/stakeholders. There is need therefore to master these

skills, internalise them and seek to reduce to practice the

theory that we learn. In addition, the Project Manager or HR

practitioner constantly needs to frequently appraise themselves

as well as acquire new skill sets that would work well in the

post modern context, especially as we veer towards virtual teams

as well as work group centred technologies. The ball game has

rapidly changed and continues to, hence the need to keep in step

with the times lest we fall by the way side. For instance, the

Project Manager, who handles HR matters must get to grips with

the extant local labour laws, legal provisions, the local

psychology as well as how to best harmlessly wiggle him/herself

around difficult situations with perceived difficult situations

285 Quality quest


that include handling stake holders (e.g. politicians), partners

(e.g. other NGOs, target communities, customers & sponsors),

failure to which may have long lasting adverse impacts on the

project. In other words then, a Project Manager handles more than

internal customers (staff) but others who are connected to the

project in one way or the other. This has a tone of public

relations, marketing and human resource as well. At times,

Managers of large scale projects and programs get blinded with

their power/financial muscle and forget that project work and

success hinges on team work as well as support from other players

in the environment.

We have spent some time around this HR hill, defining terms as it

were, it is high time we progressed to something else. In the

next unit, we consider quality issues as relates to Human

resources, stay connected!

Case study 1

Motivating People

“All organisations say that people are our greatest asset. Yet few practice what they

preach, let alone truly believe it.”, aptly quips Peter Drucker, that

Management guru of our times. And yet how so true this assertion!!

Finkelstein quotes Drucker as it introduces the article

286 Quality quest


“Motivating People”. It is a lamentable fact that we have slid

into the new millennium with relics of the past still firmly

clasped to our “corporate skins!” What can be done? How can we handle

this hurdle? What parameters can we employ that will help us to

fight lethargy and demotivation?

Finkelstein points out four critical dimensions to rescue us. But

before we proceed, it is fitting for us to define what motivation

is. Using Kreitner and Kinichi’s definition, we state that

motivation is “Those psychological processes that cause the arousal, direction and

persistence of voluntary actions that are goal directed” From this

definition, it is clear that the factors under consideration are

the inward disposition and internal motions that ferment as one

is about a task or activity. In a nutshell, we are considering

parameters that cause someone to feel good, happy, exhilarated

and satisfied to do a task.

Having briefly defined what motivation is we now tackle the four

critical dimensions (Where, who, how, and why).

In the first place, for anyone to function well, they need to

operate in a conducive and palatable environment, i.e. the

buildings, office accommodation, furniture, “family” kind of work Executive Excellence, April 2000 issue pp10 Organizational Behaviour, Kreitner R. and Kinichi A. 4th edition, pp 189

287 Quality quest


treatment, freedom to contribute to the company goals and any

outer gadgets that make life worthwhile. It must be remembered

that the average worker spends over 8 hours daily at the work

place and as such must needs finds the work place attractive and

comfortable otherwise work is reduced to a mere “necessary evil”.

In the second place, the worker must have a sense of belonging in

the company. As new employees join a company, they come with

expectations that are either fulfilled or drastically altered, in

which case many feel disillusioned. In other words, the company

culture must be one that is realistic, open, clear and framed in

such a way that mutual trust and teamwork harmoniously co-exists.

The culture of two merging companies is especially tried and

tested when two hitherto different work forces converge,

obviously causing “sparks” which need to be extinguished through

the evolution of a new culture. In a nutshell, “culture is how people

interact at work, how they support the mission, how they regard each other, how they

work together toward goals, and how they treat customers”. This definition is

all encompassing and deals with all the salient features of a

corporate culture. If the right culture is absent, it leads to

losses and ultimate company failure. In the long run people

become egocentric rather than corporate goal focused. The culture

contributes significantly to staff retention rates as well as

diversity and high employee turnovers. “Motivating people”, Executive Excellence magazine, April 2000 issue pp10

288 Quality quest


The third parameter that rears its head is that of development.

This is the “how” of the work place. Workers must be given the

skills to handle their tasks, through prolonged continuous

training. If strategies are clearly set, pursued to the end

through appropriately trained staff, then some positive progress

is registered. If the “how” is not clear in peoples’ minds, they

feel incapacitated, directionless and demotivated. To the

contrary, if they are capacitated and involved in some way at the

planning stage, as well as kept abreast with the latest

developments, they will “own the goal” and will wholeheartedly

support it to the end. In other words, the company must plan,

train staff, and ensure that these appropriated abilities are

utilised rightly. Short and squeezed training sessions are not

recommended for “practice makes perfect” as that quaint old saying

goes. People need to internalise what they learn and only by

constant practice do they perfect their skills. The fourth

dimension is the all-time famous reward system. Many reward

systems have appeared on the horizon, some fair while others

horribly inhuman! The universal one which has stood the test of

time is that of compensating at the end of the service or through

periodic performance reviews after which one is paid some token

of appreciation. In as much as this method has worked well in the

past, the present generation is more individualistic and favours

289 Quality quest


“Instant gratification” compensation. The worker of today is

interested in seeing immediate results as well as investing in

the future, to secure the retirement. Unlike in the past, one

could bank on the retirement package and there after run “broke”

as soon as the cash is exhausted. In other words, immediate cash

value is more ideal for the modern day worker called the “X

generation worker”. Interestingly, not only is cash crucial to

motivate a worker, time off and the psychic gratification are

paramount today. In this hurried generation of hustle and bustle,

one will appreciate some time off work to pursue other refreshing

activities (Such as family life, holiday, set up own business

etc) and then return, having “recharged the brain cells”.

Thus, we have unveiled what Finkelstein and others propose as the

way to motivate today’s worker. Me thinks this is an excellent

and relevant article which ought to be read by every practicing

manager. The 21st century worker then, is looking for the four-

fold dimension to work effectively. As more managers pick up

these jewels and pragmatically implement them, I am not afraid of

the result!

Source:

Finkelstein, “Motivating people”, Executive Excellence magazine,

April 2000

290 Quality quest



Why do you think Drucker makes such a sweeping statement at the

beginning of this case study?

Why do you think staff are viewed as a cost rather than a

critical asset to the organisations’ progress?

What is motivation and how relative is it in a diverse cultural

context/team?

Comment on the X generation.

How can this cadre be motivated and kept interested in the

organisation?

How can perceptions be changed of managers to cease considering

staff as mere cogs in a chain?

List and briefly explain the four dimensions that will foster

effectiveness in the 21st century worker.

=================================================================

====

Case study 2

Diversity management

291 Quality quest


With the rapid re-engineering that has been sweeping across the world’s businesses, one hardly finds it difficult to stumble

across literature that deals with the said changes. The media is

also replete with reports of company reorganizations every day.

Indeed, these inevitable changes are sweeping across the world

like a typhoon and there seems to be no panacea to this traumatic

tide. What is really happening? Why this seemingly mindless

closure of companies and the shift towards diverse corporate

companies? These and many other questions, the Organisational

Behaviour student seeks to determine and unveil. One aspect dealt

with is that of nurturing and maintaining a diverse workforce in

this competitive environment. But why should we bother ourselves

with diversity? Why the countless studies?

Two excellent authors, Caela Farren and Bob Nelson have written

an article entitled “Retaining Diversity”. This is a brisk but

clear treatise that high lights the necessity of a diverse work

force and how to retain the same. The said write up opens by

stating that although recruiting a diverse workforce can be

challenging, retaining the same is even extra dicey. The article

further reveals four best practice methods to be imbibed so as to

minimise the employee turnover. The retaining of a diverse

workforce is crucial because of the obvious advantages that

accrue to the company. Firstly, people from different backgrounds

292 Quality quest


and races come up with different ways of carrying out a procedure

as well as new and cheaper ways of producing a product. Closely

akin to the first reason is the fact that a rich diverse company

will help the multinational corporation to sail more easily on

“foreign waters”-markets because valuable insights and

connections are within the corporate ranks. Thirdly, in keeping

with the affirmative action, where minorities are given an equal

chance of employment, advancement will ultimately bring about

more production and harmony. Hitherto, the top jobs have been the

private preserves of a few elite men. In the past, women and

people of colour have been relegated to the terraces. With the

aforementioned culture, a company risks missing out on excellent

the contributions from the said minorities.

In the first place, open communication is highlighted, and

rightly so. Communication is crucial if any institution is to

survive in any circumstance. Even marriage, to a greater extent,

hinges on effective communication. By this is meant that every

one has a right to information at the right time and must keep

abreast with the current happenings within the firm. This entails

talking over issues, having access to the top executives and

liberty to suggest innovations. Every one, despite their colour,

sex and creed must have a fair hearing. For example, at Pacific

293 Quality quest


Enterprises20, one or two top ranking employees sit before an

audience and describe how they moved through the corporate ranks.

This offers tremendous encouragement to those beginning the

corporate ladder ascent. Berlinda Fontenot-Jamerson, who heads

the Pacific Enterprise Diversity Program and is herself an

African American woman, testifies to the usefulness of this

approach.

The second suggested best practice is that of training and

education. All employees must be given some form of training to

sensitise them of the potential dangers of discrimination and

also about other cultures. Gross ignorance accounts for some of

the discriminatory attitudes such as ethnocentrism where one

feels their colour, sex and race are superior to others. Thus,

the training and education will go a long way to clear defective

stereotypes and prejudices. Furthermore, all staff must be given

similar opportunities and leeway to express themselves. At

Microsoft for example, two programs are in place to tackle the

diversity issue. The first is an awareness program designed to

limit the influence of stereotypes while the second is a

“business program to provide real-life situations, challenges,

and solutions to diversity issues”G. In addition to the

aforementioned training, the companies should embark on staff 20 An American companyG Retaining Diversity, Excellence magazine-May 1999 issue page 7

294 Quality quest


career development that will make them self reliant, thus

building capacity.

The third best practice method is that of deliberately providing

mentors to new employees. The said mentor should be attached to a

new team member and should meet at regular intervals to exchange

notes on the progress. A period of one year is recommended. In

this way, the new people will feel welcome and not lost. Digital

Equipment21 has reduced minority turnover as a result of the

mentor program introduced into the company. The idea of mentors

was nearly a forgotten art until the world woke up a few years

ago. Most of the world’s great personalities have had mentors to

whom they looked for inspiration, much like the ‘management

gurus’ we read about in our courses!

The fourth and last best practice is to make managers

accountable. Far too many pay lip service to the importance of

diversity than they practice. Once given a platform to present a

paper, they give heart rending, tear evoking and moving speeches

but as soon as they turn round to leave, they discard everything!

There is need to put parameters in place to ensure that

minorities are not only represented but are appreciated, as

Roosevelt Thomas, Jr. would advocate. Top management must be

seen to tangibly and pragmatically support the diversity program.21 An American company Diversity management, Excellence magazine-May 1999 issue page 8

295 Quality quest


We learn many valuable lessons from each other and ultimately the

organisation benefits once the right attitudes are internalised

into the company culture.

Having outlined the best methods, the article hurtles to give

some guidelines for a strong foundation. To build a powerful

superstructure, there is need to foster understanding on key

concepts, address all representation and diversity issues

regularly. With these and other practices such as cultivating

team spirit, mutual trust, effective communication, we have no

reason to believe that a company will continue crawling in the

dust of competitive disadvantage!

Source:

Farren Caela and Nelson Bob, “Retaining Diversity”, Excellence magazine-May 1999 issue


What is diversity?

Is it (Diversity) beneficial to the organisation? Explain.

“Bringing people of different cultural backgrounds and

orientations into one team just promotes friction and lower

productivity. It also wastes a lot of time in the process”

Discuss these statements.

296 Quality quest


How can diversity be best encouraged and harnessed to reap the

most out of a team?

How harmful is ethnocentrism in a company. Give examples from

your work place or where you have been/heard of it.

What is the affirmative action? Does it apply for Zambia?

Revision exercise

Give some ways of motivating people.

How different is IHRM from HRM?

What are the merits of a diverse work force?

What, in your own words is the X Generation and how does it

impact on organisational quality output?

How different is the virtual organisation from the regular as

relates to HRM?

In your own words, define HRM and how it differs from Personnel

Management.

Why is succession planning key in an organisation, project or

institution?

297 Quality quest


BibliographyBell H Cecil Jr & French L Wendell, Organisation Development, 3rd

edition, Prentice Hall of India, 1989

Bellingham Richard, Virtual Teams, Jaico Publishing House, 2003

Boydell T. H, A guide to Job analysis, British Association for

Commercial and Industrial Education, 1981


Bramham John, Practical Manpower Planning, Institute of Personnel

Management, 1982

Clarke Alan, e-learning skills, PalmgraveMacmillan, 2004

Clegg Stewart & Dunkerley David, Organisation, class and control,

Routledge & Kegan Paul, 1980

Crainer Stuart, The Jack Welch Way, Magna publishing co. 2003

Davies Anthony, Managing for Change, ITDG publishing, 2001

Dessler Gary, Human Resource Management, 10th edition, 2006

Farren Caela and Nelson Bob, “Retaining Diversity”, Excellence magazine-May 1999 issue

Fitzwater Terry L, Documenting Employee Performance, Jaico


298 Quality quest


Flippo B. Edwin, Personnel Management, McGraw-Hill, 6th edition, 1984, International edition

Gebhardt E Joan & Townsend L Patrick, How organisations Learn,

Financial World Publishing, 2001

Grobler Pieter et al, Human Resource Management in South Africa,

3rd edition, Thomson, 2006


ILO, Labour Inspection, International Labour office, 1973

International Labour Organisation, International Labour

Standards, International Labour office, 1978

Kakbadse Andrew & Analoui Farhad, Corporate sabotage, Jaico


Krames A Jeffrey, The Welch Way: 24 lessons from the world’s

greatest CEO, TATA McGraw-Hill Publishing company, 2002

Langdon Ken & Bruce Andy, Strategic Thinking, Dorling Kindersley,

2000

Maylor Harvey, Project Management, Pearson Education, 2006

Morgan Gareth & Burrel Gibson, Sociological and Organisational

Analysis, Gower Publishing Company, 1979

299 Quality quest


Mouzelis P. Nicos, Organisation and Bureaucracy, revised edition,

Routledge & Kegan Paul, 1967

O’Hara-Devereaux Mary & Johansen Robert, Global Work, Jossey-Bass

Publishers, 1994

Papp S Daniel, Contemporary International Relations, Macmillan


Peters J Thomas & Waterman H Robert, Jr, In Search of Excellence,

Warner Books, 1982


Pearson/Prentice Hall, 2006

Salton J Gary, Organizational Engineering, Jaico Publishing

House, 2003

Schuler S Randall, Welch E. Denice & Dowling J Peter,

International Human Resource Management, South Western College

Publishing, 1999

Silbiger Steven, The 10-day MBA, Magna Publishing, 1999

Steger B Manfred, Globalisation: A very short introduction,


Tulgan Bruce & Martin A. Carolyn, Managing the Generation Mix,

2003300 Quality quest


Tulgan Bruce, Recruiting the workforce of the future, Jaico


Turell M, Training Analysis, MacDonald and Evans, 1980

Wanless Derek, “People-the key to success”, Banking World,

December 1989

301 Quality quest


Unit 6

Aim

The aim of this unit is to help student recognize the centrality

of quality people management in the organisation as well as

highlight the changing perceptions on people management/HRM.

Objectives

By the end of this unit, students must understand:

a. Why staff need motivating

b. How quality staffing affects output

c. How to motivate staff/increase productivity.

Quality issues relating to HRM

Managing Human Resources can be both a joy and a taxing undertaking. It is a joy when people working on the team are

sincerely dedicated and diligent at their duties and will not

rest until the task assigned to them is done. A taxing drudgery

302 Quality quest


when the job holders elect to do exactly the opposite or engage

in all sorts of destructive tendencies that disrupt the smooth

flow of things as well as destroy team work and spirit. The

Manager has to be sufficiently equipped to competently handle

both scenarios Methods, Staff appraisal, continuous training,

staff retreats, team dynamics, self managing teams, coaching for

performance, study tours, job rotation etc.

Staff need motivating for various reasons and one of the aims of

the issues we consider in this unit is just that. It is however

helpful to mention briefly that staff come on board with

expectations and goals which must be seen to be fulfilled in the

course of their service to the project or organisation. If that

is objective(s) is met, then they will have good reason to stick

around much longer other than just for merely earning a living.

It is important to motivate them because their productivity and

productive levels largely hinge on this. Drooping spirits

scarcely achieve much or go far in life achievement. One

indication of a drooping spirit is the propensity to and

frequency of quitting what they begin at the slightest encounter

of a challenge. To get the best out of them, provide a conducive

environment where their latent potential is encouraged to come to

the fore. In that way, they also discover their previously veiled

303 Quality quest


talents and competencies. In this unit, we consider a select

sample of some quality enhancing methods in common use today.

Methods of enhancing Human resource quality performance As hinted at above, this unit considers some tangible and tested

ways of measuring performance with some suggested improvements

where necessary. A number of points are considered beginning with

appraisals which are by far the most common way of measuring

performance with a view to improve quality output though

admittedly, these are variously applied and viewed.

Appraisals

Progressive entities have made effective use of appraisals with

impressive results and benefits. Appraisals have significantly

contributed to staff productivity improvement where appropriately

and objectively utilised. Unfortunately, there has been a fair

share of Appraisal abuse. Instead of serving to advance the

organisational capacity, appraisals are used at times to hound

out the threats and foes by the people in authority. Thus, an

employee works in fear of being marked out and consigned to the

streets after that particular contract comes to an end. In that

sense then, appraisals play the unfortunate role of short-

304 Quality quest


circuiting people’s career in the organisation as people recoil

fearing victimization.

The place of appraisal

Periodically, the project/organisation carries out staff

appraisals. These self same appraisals are meant to evaluate how

team members have fared in a given time frame, what challenges

they encountered and what they intend to do about issues raised.

As with other terms, appraisals are defined variously. Their

objectives are equally varied but the bottom line is to ensure

improved quality performance within the organisation. What is the

precise definition of the appraisal, why appraise and how

frequent should these be done? Professor Mwanalushi and Mr

McMahon have done a good job about appraisals in their little

booklet “An introduction to Performance Appraisal: The human

resource evaluation process” They have said “The appraisal of

people at work goes on continuously. Indeed some kind of employee

evaluation is carried out in all organisations. This ranges from

intermittent, informal and often ill-informed discussion between

managers and supervisors about individual staff members to highly

formal appraisal techniques based on comprehensive forms and

Mwanalushi M & McMahon G, An introduction to performance appraisal: The human resource evaluation process Volume 1 #. 2 The personnel Management in Zambia series 1989

305 Quality quest


procedures. Each time a supervisor issues a good word or a

reprimand some form of appraisal takes place…” from the above,

we can see that the precise definition is difficult to arrive at

but what the authors (Mwanalushi & McMahon) are saying is that

the organisation has various ways of assessing its workforce with

a view to establish their capabilities in terms of strengths and

weaknesses in the process raising productivity and quality.

Appraisals carry different meanings from organisations to

organisation. Depending on the objective, the appraisal may or

may not hold a significant place. We must be mindful though that

appraisals are as much informal as they are formal. What ever we

do each day tells a story and creates an image. In progressive

organisations where formal appraisals are imbibed, the supervisor

appraises the staff over a period of time, say one year.

Depending on the rating, the person’s contract may or may not be

renewed. Increasingly, the period is being shortened to semi

annually as this enables the appraiser to capture much more

relevant and useful objective information. In that way, some

level of objectivity is maintained.

The uses of the appraisal are basically to help ascertain the

training needs as well as the growth areas for the individual.

Further, the individual is helped to see their own blind spots pp 1

306 Quality quest


and then quickly venture to correct the situation. Admittedly, we

all are usually blind to our own defects and some times do not

even realise our greatest potential unless another hints to us.

Thus, in an ideal sense, the formal appraisal is good because it

is a relaxed time when people pause to take stock of them selves.

The right spirit of an ideal appraisal

Appraisals have one major aim: improving performance. Any other

use of the appraisal is either derived from this goal or an abuse

of its function. The right spirit of the appraisal is to be used

as an objective tool to assess the performance of an individual

against a set of objectives mutually agreed upon at the beginning

of a particular period. This evaluation has a two fold goal. The

first is to identify the weak areas of some one with a view to

offer any possible support so that they reach the expected

competence levels. The second is to check whether progress is

being made against set bench marks without which, we grope in the

darkness and hope for the best. In other words, appraisals are

indicators of one’s performance over a given agreed period.

Sadly, in many places, appraisals are abused. This abuse shows up

in many ways especially where people are hired on contractual

terms. Instead of using it as a performance improvement tool, 307 Quality quest


appraisals are used to settle old scores as mentioned earlier on.

Secondly, they are used as a whip to threaten operatives with

dismissal. That said, a right spirit as originated by the

designers is to foster objective cordial empowering relationships

between the assessor as assessed.

Types of appraisal

As hinted above, appraisals take various forms but below are some

of them:

1. The Peer employee appraisal- This is the kind of appraisal

where peers appraise each other and give their thoughts

about a particular person. One of the ways is to ask team

mates to comment about a person on a standard questionnaire

while maintaining anonymity. The questionnaire touches the

strengths and weaknesses of a person. This approach is rich

in that it helps the person get an idea of what others think

about them and have a 360* appraisal.

2. Rating- this is where a supervisor sits with the said staff

and they review the period together against set benchmarks

listed at the beginning of the period. Using that

background, a person is tallied and given marks that

determine their performance.308 Quality quest


3. Descriptive essay- this is a situation where a supervisor

writes a descriptive essay about the perceived weaknesses

and strengths (areas of improvement) of a given person and

gives it to the staff. A discussion then ensues based on

that essay.

4. Ranking- In this approach, the employer ranks staff from

the best to the worst based on what the employer sets as the

bench marks. This approach has a way of motivating the

perceived good employees while it shatters the “bad” ones.

Pitfalls of appraisals

Each of the appraisal methods listed above has its own pitfalls

but here are the general ones:

1. Some of the appraisal methods are not objective.

2. Some superiors use appraisals to settle old scores.

3. The basis/ terms of reference for appraisal in some cases

are not clear. As a result, some come off injured rather

than edified.

309 Quality quest


4. Sometimes appraisals are used to manipulate staff or are an

organisational political tool.

5. At times appraisals kill innovation, the volunteer spirit or

calculated risk taking. Staff figure that they may not get

any points for going the extra mile and content themselves

keeping within bounds.

6. The appraisals are not comprehensive/holistic and as such do

not capture all the aspects of a person such as feelings,

thoughts or factors that led to a particular outcome.

Merits of appraisals

1. They are a guide and help people to keep focused.

2. They ensure that only the relevant and competent staff

retained.

3. They help in assessing the staff needs.

4. They help in team building as people begin to realise their

potentials.

5. They add value to the organisation in that the appraisers

and appraised are challenged to soar to higher orbs.

6. Appraisals are a contact point for the supervisor and the

supervised. Hither to, they may have been caught up in the

310 Quality quest


hustle and bustle of the workdays but at appraisal time,

they as it were, cool down and reflect together.

7. They have a way of helping people realise their strengths

and weaknesses. In this way, people take note of their

growth areas and diligently work on them.

8. They motivate. Once given audience, aggrieved staff feel

fairly treated and heard.

9. Improve quality & productivity as well as eventually cut

costs.

Best practices

It is always wise to adopt best practices in project management

as relates to Human resources because this enhances the quality

of output from staff. In addition these best practices once

properly bought into have a way of lifting the project profile as

well as the entire organisation as a whole. Best performing

companies like DHL or FEDEX (although on recent 2009 Fortune 500

list, they may not rank exceptionally high) most likely have

invested in creating a culture of excellence, customer focus and

timeliness. They most likely put a high price tag on great

service delivery because this pays back dividends many times

over. To achieve this superior quality service, there is no short

311 Quality quest


cut than to invest heavily in continuous staff training and

improvement. Staff must be facilitate to bring out their latent

potentials to the fore and thus promote the organisation as well

as themselves. In regular Human Resource Management therefore,

the best industry practices must not only be imbibed but promoted

as well. This entails meticulous documentation and monitoring of

all staff development as well as treatment processes. In the

ensuing paragraphs, we attempt to offer some best practices that

would be handy in a project, program or entire organisation.

Documenting the best staff practicesThere is need to document whatever takes place in the

organisation for several reasons, one of them being for future

reference as the organisation seeks best practices. Another is

for records’ sake, in the event there is a dispute or problem. In

either case, the idea is to learn as well as defend the

organisation from whatever betide. Documenting staff performance

is one of the best things that an organisation/project can engage

in because this remains a pivotal point for future action.

Documenting staff performance can loosely be defined as “keeping

a record of something or some activity relating to staff” or

better still, as Fitzwater as defined it “the practice of

formally recording, in writing, your actions and discussions

312 Quality quest


throughout the coaching and disciplinary process”22. As we

consider the documenting of the best practices, it is best to

handle this in point form as the ensuing sections demonstrate.

The first best practice is already alluded to above, that of

documenting how things are done. The can be done in several ways

that includes the following:

a. logging: When staff begin a work day and knock off, it is

good for them to log in and out. In this way, their work hours

are documented and paid accordingly, that is assuming they get in

and engage in productive work all the time they are in the

company premises. This practice also makes people conscience that

they have a duty to report for work on time and subsequently

raises their productivity, all things being constant and equal.

Further, this practice instils responsibility and discipline to

relevant staff as their pay is connected to their output.

b. Periodic reviews: In project management, it is a good practice

when staff frequently meet at designated times to review staff

and project progress. As these meetings are taking place, minutes

should be jotted down and reports produced as a reference point

for future reference. Brain storming sessions are equally good

times to get feedback as well as to build the team. Where there 22 Fitzwater Terry, Documenting Employee Performance, Jaico Publishing Hse, 2003, pp8

313 Quality quest


is a shared vision and people pull together, there you find

improved qualitative output, although one or two people may be

problematic probably because of a wrong fit.

c. Ongoing mutual feedback: Professor Mwanalushi has asserted

that an appraisal always takes place in one way or the other as

people brush shoulders in the normal course of life and business.

This is true and must be recognised that we owe each other an

objective and frequent mutual feedback. Note that this feedback

is mutual and can go either way. If possible, let this be

documented in some form so that a trail can be followed in the

event of future learning or dispute.

d. Appraisal: This is the most common way of assessing staff. As

was demonstrated earlier, appraisals are used to evaluate staff

performance on a periodic basis with a view to improve one’s

performance and usefulness. In doing this, the quality of output

is improved. Like earlier mentioned, appraisals are of different

forms and applied variously. For instance, a 360* appraisal gives

one of the best feed backs a staff can ever get, assuming their

peers are objective and sincerely want to see improvement. This

particular appraisal ensures that colleagues anonymously review

each other and give feed back in areas that need improvement as

well as the perceived challenges an individual faces, perhaps

314 Quality quest


unknowingly. All this feedback is documented for future reference

and learning.

d. Targets: Targets are benchmarks in themselves because a person

is given tasks to perform in a given time frame and the progress

rate is documented. With repeated practice, it is expected that

the said staff will end up more proficient and will inform the

job evaluation tool as well as set a standard for future

reference. Targets have a way of motivating self motivated staff

to work hard so that in the process they discover their hidden or

latent prowess.

e. Coaching for performance: As people come on board, they come

with a lot of background baggage which needs to be refined so

that it fits into the corporate culture very well. This may take

time as people assimilate things in different ways and rates.

Thus, in coaching for performance, what we are saying is that the

supervisor and supervised sit down together at the beginning of a

given period, set objectives and targets as well as document and

then begin implementing whilst mutual monitoring is going on. As

opposed to the old mode where review is only given at the end of

the set period, the supervisor, being more proficient and

skilled, moves along with the said staff, offering advice and

passing on skills whilst documenting progress which they discuss

315 Quality quest


at the end of the agreed tenure. In that way, the staff is built

up and needless tussles avoided.

f. Team building activities: this may include having staff

retreats, outings or simply get together occasions where staff

spend time together to socialise as well as know each other

better. In effect this is a double edged sword, killing two birds

with one swipe. This interaction enables team building but also

is a source of vital information for different staff which they

would not ordinarily give out. For instance, a tea party would

reveal who loves what tea brands and thus inform HR what type of

tea to buy for the particular staff when a special occasion such

as an anniversary or birthday comes around the corner.

This list is by no means exhaustive but gives a good objective

idea of what and how to document staff performance.

Importance of quality in HRM

The importance of quality in HRM cannot be over emphasised. It is

beyond dispute that to get the best results, you need the best

means, in this case being human and other resources. The Human

resource component is particularly crucial because people are

316 Quality quest


like the rudder that directs and steers the gigantic ship in the

required direction. An insignificant ant like person in relation

to a big ship does the thinking, charting the course and ensuring

the desired haven is reached in the given time frame. Thus, any

company may be endowed with excess resources but if the human

resource, yea, top management and staff do not correctly fit in

the context, expect endless problems and disasters. Thus, we can

safely assert that hire the best fitting competent staff and you

are off to a good start. On the other hand, hire mediocre staff,

expect a multiplication of problems in your project

implementation. That said, we need also to say that the HR

function needs to be itself well orbed, fashioned and positioned.

This means that the HRM practitioners (Including the Project

Manager) need to constantly sharpening their axe so that they

always have cutting edge technologies and knowledge that they

pass on to the rest of the organisational team as the culture is

cultivated. HRM, like any other discipline is not static, it is

dynamic in a mutating context, as the case may be.

As we wind up, we need to re-echo our clarion call, “Hire the

best talent and you are off to a good qualitative start”!

Case study 1

317 Quality quest


In depth interview with Mr Sikapale Chinzewe,

Human Resources manager, World Vision Zambia.

April 2000 Lusaka.

An interview was carried out with Mr Sikapale Chinzewe, Human

Resources Manager at the World Vision Zambia office with a view

to establish Leadership and quality practices in the

organisation, having adopted the Team approach as well as

successfully survived a near total close down. This interview

focuses on quality, Human Resource and Leadership matters. World

Vision International as a whole has grown over time and in a way

more complex than in 1950 when it began in that corner of the

World-Korea. As a result of all the continuous international

changes, World Vision Zambia has been affected as well. This

interview therefore highlights the most remarkable changes that

have and will continue to affect World Vision.

Questions:

Q. Mr Chinzewe, tell us briefly about your self.

318 Quality quest


Ans: My Name is Sikapale Henry Chinzewe and I am currently the

Human resources Manager at World Vision Zambia. I am married and

was initially trained as a teacher. My first appointment was in

the Luapula province and then I went back to school to study

Business Administration. I was at the Copper belt University and

there after Joined World Vision. I was in the Evaluation

department and was later appointed Human Resources Manager in

2000.

Q. My! Your profile seems interesting! It seems you have changed

fundamentally in terms of career and now you are the HRM from

evaluation, how have you managed? What have been the benefits?

Ans: I believe that life is dynamic and people should be ready to

change any time. I begun working as a teacher when still quite

young and therefore, it was easy for me to change. Further more,

I think I like taking up challenges as they come. As to how these

shifts have helped me, I think the training I under took at the

Copper belt University (CBU) opened my mind a lot. For example, I

am better able to look at issues from both the Teacher and

Business person’s perspective. Hither to, this would have been

impossible. Lastly, I have learnt that to be a Manager is not to319 Quality quest


be bossy but to be a team player, thus, I do not suffer from the

pitfall that many teachers suffer from such as ordering people

around, at least in Zambia!

Q. Now Mr Chinzewe, What has been your most challenging time as a

professional?

Ans: I have had many challenges in life but I can safely say that

dealing with people has been very challenging for me, how to

motivate, inspire, coach people and solve issues as they come. I

have been at the helm of hiring and training staff at WVZ. These

two aspects have been daunting tasks because qualified personnel

have been hard and far between as well as the ever shrinking

budgets! In a way, I have handled some of the worst characters

imaginable and have often gone home with my head spinning. Some

time, I have noticed this stress creeping even into our home!

Another aspect has been to be at the helm of initiating changes

in WVZ both from those that were already in process at the time I

took office and the new ones. We have been at the centre of

organisational cultural and structural changes where either some

jobs are scrapped or others created. As World Vision expands in

terms of work force, so also, the needs for frequent and

continuous training at all levels. In the past we have failed to320 Quality quest


carry out some critical activities for want of cash. We are now

trying to find ways to sustain ably raise cash to cover the

overheads as we facilitate further training.

Q. World Vision Zambia has been embarking on Leadership, team and

total quality changes in the past few years, could you shed some

light on this.

Ans: Yes indeed, World Vision has been undergoing rapid changes

and re engineering so as to get to the best operational levels.

Thus, TQM, teamwork and leadership are all efforts towards that

end. We have reached a stage when organisational fluidity is

essential. As I have often said at other forums, “The only thing that

is constant is change”, world vision is no exception.

Q. Why has this been adopted, any reasons?

Ans: As I have intimated, the dynamic times demand that we move

with the times. Like any other organisation of the past, World

Vision found serious operational problems with the orthodox

hierarchical management structure that proved inefficient.

Therefore, in 1995, the organisation embarked on a major re –321 Quality quest


engineering (as well as reorganisation) exercise so as to re –

align the organisation towards the best ministry delivery routes.

This was a result of the realisation that the organisation had

inherited a rigid bureaucratic structure where most of the

individuals are either under utilised or over worked. A way had

to be found which provide the best delivery avenues at a minimum

cost yet at high quality, thus, from 1995, we had Management

structural changes in a bid to arrive at the efficient structure.

In some cases, we have had to scrap some positions and thus,

scaling down on the number of staff. We have no yet arrived as

this process is on going. In a nutshell, we have to change in

keeping with the trends in the partnership worldwide or else risk

being obsolete and in efficient.

Q. In your own words, what is leadership?

Ans: In my own words, I would define it as the ability to

inspire confidence in others. It means being able to influence others

towards a certain direction as a result of being intrinsically

visionary on long and short-term goals. A leader works alongside

colleagues so as to unleash the potential latent within them. A

true leader is not “bossy” but a facilitator, inspirer,322 Quality quest


motivator, coach and mentor. Let me add and say that a true

leader is a strategic visionary thinker who carries others along

to a known destination.

Q. How applicable is this ethos to the World Vision and how sure

are you?

Ans: Oh yes it is very applicable! We are moving towards teams

because we perceive that where teamwork thrives, the output is

higher. Like I said, without adopting leadership practices as

opposed to Bossy kind of management, we are done unless we slowly

sell the ethic to the extent that it is internalised into the

organisation. It must be a company culture. As to whether I am

sure, I have seen it taking root in the World Vision National

Office and in some Area Development Programs (ADPs). Of course I

must be quick to say that this is new and will be opposed by some

quarters that hold on to the past hierarchical structures. I

cannot give a time frame as to when we shall arrive, but given

present pace, we should begin to see this more pronounced in the

next three years or so. We are getting there.

323 Quality quest


Q. Are you involved in these leadership innovations, and if so,

what is your role?

Ans: I am definitely involved in various ways. I am part of the

Management team and actively so. In what we call Program

Development Quality Assurance (PDQA), I head the leadership

component. I am also on the self-review team that we have decided

to host periodically to take a critical introspective look at our

performance levels against the set benchmarks.

Q. Do you see the potential of developing this ethos in World

Vision?

Ans: The potential is indeed immense because we now and continue

to have the right people in place. Hither to, we have not had

many qualified staff but the trend has been towards hiring the

right staff. In the past, as long as someone was a Christian,

they qualified for the job. But now, we are looking for much more

than the paper or a good testimony (although this latter aspect

still remains pivotal), we are looking for potential, creativity,

diligence and team player traits in our candidates. Besides,

324 Quality quest


Human resource is the best resource we have to hand. A well-

trained and motivated Human resource can accomplish much,

especially when done as unto the Lord. I see this culture slowly

creeping into the organisation; this is a good and pleasant

development.

Q. If so (preceding question), how do you think World vision will

attain its objectives?

Ans: Talking about the way we are to achieve the aforementioned

goals, the organisation is determined to hire the best-trained

Christians around who have the knowledge and skills. That is why

we have the Personnel Manager who handles the hiring, training

and motivation of the current staff. In a way, the HR is

strategic while the PM is operational although the functions will

obviously overlap frequently. Thus, the burden is on these two

departments to coordinate and come up with ways to develop a team

kind of environment. Our present goal is to train the extant

staff so as to help sharpen some individuals that are potential

achievers.

325 Quality quest


Q. What are some of the hurdles you envision will buffet the

organisation in the quest towards that goal?

Ans: To say that we have no hiccups would be telling a half-

truth. The path to organisational transformation is fraught with

many hurdles, the chief of which is Finance. Many plans hinge on

the availability of funds. We have planned many marvellous

training sessions but alas, we have failed to implement them. We

think continuous and consistent training of staff is the only way

forward. One way we are trying to get round this issue is by

writing project proposals about capacity building. For example,

recently we wrote and sourced funds from the US office to train

facilitators in leadership. It is about $ 10,000 but I trust this

will help. In days that lie ahead, we shall continue to write, as

the ADP budget cannot meet the demands.

The fourth hurdle has been to attempt to break those departmental

“walls” that have been created in the past. Apart from personal

conflicts, it is true that we feel secure and content in our

confined specialty and are not willing to learn or allow others

to intrude into our domain Our catacombs are too warm and cozy to

let any villain enter in. In a team setting, the players are

multi-talented and are willing to learn and overlap each other’s

duties where need be. If a person is absent, the work will not326 Quality quest


stall on that account but another easily fits in and then work

progresses. We hope to move away from the archaic culture where

certain jobs are the sacred preserve of some people. Admittedly,

this is and will be an uphill battle.

Having asserted the above, we are determined to do our best in

the circumstances. So far, so good!

Q. How do you assess/gauge the progress, are you satisfied with

the pace?

Ans: We are pleased to note that there has been a tremendous

improvement in the quality of reports. In the past, the reports

were either scanty or too detailed but now we have adopted the

“methods of best practice”. Where we pick the best methods of

doing and reporting activities also, we have ensured that we have

a standard report format. In addition, we make sure that we

respond to our partners in the stipulated time. Proactively is

now normal. Generally then, the progress has been good but we

need to keep up the tempo and infuse a sustainable system that

will guarantee timely and quality responses to all stakeholders.

In addition, the advent of Information technology has been a

327 Quality quest


tremendous help to the organisation because it has ensured that

we move faster while keeping in step with the outside world.

Q. Quality is also a buzzword in World Vision circles, why?

Ans: For some time now, TQM has been a buzz word because

management circles have perceived it as the “silver bullet” that has

suddenly transformed organisations from being inefficient, rigid,

inflexible and crippling bureaucratic to agile, responsive and

continuously mutating and learning organisations with near zero

defects in the products and services. Although we do not deal in

tangible products (as World Vision), in a way we do and as such

we endeavour to produce services at the right time and place as

the case may be. We desire to have quality in all areas of our

delivery system to the greater satisfaction of our stakeholders,

in this case being children and donors.

Q. What are the objectives of TQM?

328 Quality quest


Ans: The objectives of TQM are to have the best products and

services at a low cost and yet high quality that satisfies

customers. Furthermore, TQM aims at eliminating defects in

products and services by avoiding defects within the system.

Thus, the goods and services are of the highest quality, low cost

and yet what is in keeping with present consumer taste.

Q. What are your strategies to achieve TQM optimum?

Ans: Since we are in our preliminary stages in infusing this

important process, we will largely depend on the feed back from

all areas the organisation.

We will put certain parameters/benchmarks in place so that we can

measure our progress periodically. For now, we will rely on those

key indicators.

Q. How do you ensure that it is not just another “program” or

“management fad”

329 Quality quest


Ans: true as it maybe, we are determined to ensure that this is

not just another abstract program where we just make noise,

clamour and then fizzle out. To avoid this pit fall, we will

ensure that we implement the changes slowly, but properly focused

while armed with the right human resource at hand. Change is

inevitable, no matter what forms it takes.

Q. What mechanism have you put in place that you achieve your

objectives?

Ans: The mechanisms we have put in place are the following:

1. We are encouraging team work within the ADPs and at the

national office.

2. We have gone further to divide the country in to zones where

we have a rotating periodic leader for each given zone.

3. The PDQA23 at the national office among other things has

been charged to ensure that all the planned goals are on

track and quality is in build in to the organisational

structure. In addition, the PDQA is mandated to propose,

initiate, assess and write concept proposals to potential

donors outside World Vision. In other words, the PDQA 23 PDQA=Program Development Quality Assurance

330 Quality quest


ensures that whatever goes out of World Vision to donors is

in near perfect shape.

We will ensure that consistent and continuous training picks

up in the organisation and also by the same token ensure that

the right people are hired to foster the organisational

objectives better.

Q. In the light of other NGOs with the same goals as WVI (E.g.

CARE International, PLAN International, Christian aid, CCF

etc), how do you ensure that you keep a competitive edge

considering that you get donors from the same pool?

Ans: There is no competition at all! We have nothing to fear

as we are in our own market. Effectively, they are all in

different markets from us. We may be in development quite

alright but our goals and objectives are completely different.

In addition, our target group is completely different. If that

were not the case, then we would endeavour to cut a niche.

Happily, that is not the case. Having vehemently asserted the

above, let me hasten to say that we are in the business of

wooing donors and satisfying our clients by providing

331 Quality quest


impeccable service. The customer is king in our business as

well.

Q. How long has this process (TQM/Leadership) been going on?

Ans: Like I said earlier, it has been on going for some time

and will continue.

Q. Just how much longer will this continue?

Ans: It is difficult to put a limit on this process as it is

on going, although we can attempt to put benchmarks to that

process and assess how we are doing at each stage. Otherwise,

this is an on going journey and must be taken at the right

pace. A major paradigm shift takes time to flower.

Q. Has training been necessary for this?

332 Quality quest


Ans: Of course! If any process is to take place in any

organisation, there has to continuous training of staff so

that their minds are abreast with this dynamic world. Training

should be on going and frequent if the changes implemented are

to pay dividends. Further more, World Vision is changing

rapidly and to keep in step with the times, we need human

resource that is apt, flexible and efficient at their tasks.

Otherwise, how else are they going to develop? Hither to,

World Vision Zambia has emphasised on training and as such,

our impact in partnership has not been felt. In the region, we

are probably the least trained. In addition, training builds

capacity and also motivates. It is high time we had a

deliberate policy on training so that people can stand on

their own feet long after they have left World Vision.

Q. Who are your models/mentors in this whole idea of

TQM/Leadership?

Ans: I am not ashamed to assert that Bwalya Melu and Sheldon

Rankin inspire me the most because they have a very clear

333 Quality quest


vision, are articulate and excellent team players. Bwalya

particularly is my mentor, having worked with him closely over

4 years. He has a way of helping you unleash the hidden

potential within you.

Q. What about current books on these trends, who is / are your

most preferred author(s)

Ans: I like many authors but none like Max De Pree, Osward

Saunders and Stephen Covey. The best books I find are Servant

leadership, Spiritual leadership, Auto Biography of BC

Montgomery, the Bible and Green leaf. There are other books,

magazines and periodicals of course such as the ‘Executive

Excellence’ magazine.

Q. Tell us about some of your personal goals.

Like every body else, I would like to improve my lot in terms

of education when I find an opportunity. As I have hinted,

continuous training is critical as it sharpens one for

334 Quality quest


effective service. At one time, I quit World Vision but came

back later. Now I am determined to stay as long as possible

and then contribute to the welfare of the organisation. My

present job is very challenging as I handle people of

different shades, far different from what I ever imagined but

I know it is shaping me for better and bigger challenges. So,

If and when an opportunity avails itself, I will grab it!

Q. Finally, what are your goals and aspirations in WVZ?

Ans: My goal is to hire the best-trained and motivated staff

on the market. Also, I would like to see a teamwork culture

take root where there will be less of the “Bossy” attitude but

rather a work environment where we view each other as

colleagues, akin to football team.

Thank you for according me this interview Mr Chinzewe, it has

been good talking to you and wish you the best in your future

endeavours.

You are welcome Billy, it’s equally been a pleasure, and I

hope you join in championing the cause for TQM and leadership.335 Quality quest


====================================================


What in your own words is TQM?

What do you think about having a specific department or group

that focuses on quality? Give some merits and demerits of this

approach (having departments).

Who or what is a leader? How different is this from a boss?

What one quality do you think a leader must possess to remain

fresh and relevant?

How best do you think organisation can remain attractive to

donor support, despite the tough competition on the donor

funds market?

Incumbents are usually very confident and easily dismiss puny

new market entrants, do you sense any of this attitude problem

in this interview? If so, what should organisations do to

avoid this fatal error?

Case study 2

Reasons why employees leave

336 Quality quest


Organisations go through different seasons as they evolve over the years. This largely depends on the context and industry the

organisation is in. If it is a donor funded organisation,

conditionalities will apply too. If it is a profit making entity,

different conditions as well will dictate how and why staff are

remunerated. Further, we can consider the environment, economic,

legal and political structure of a country where the entity is

located. For instance, if the place is war torn, politically

unstable and highly volatile, it attracts other terms too.

It is often sad when an employee tenders in their resignation, if

they have been star performers while it turns out a grand relief

when a time waster leaves through natural wastage. Many have

undertaken to research and crystallise the major reasons for

departure. Among these is Leigh Branham in his monumental work

“The seven hidden reasons employees leave” and perfectly

summarized by the Sound view executive book summaries. It is an

insightful article that explores what he calls “seven hidden

reasons”. The hidden aspect could refer to the unspoken or

undocumented reasons that almost never appear in the exit

conference, where relevant. But are these really “hidden”? Not

exactly, except that they are discovered by personal experience

or informal interactions with the people that leave. Neither are

the seven reasons exhaustive as listed by him but suffice it to 337 Quality quest


say that these reasons are indisputable. They give an insightful

excellent view to the manager so that they may be vigilant to

watch out lest they receive a rude shock when the resignation

letter “suddenly” lands on their desk. They are startled because

all along, they were too preoccupied with their own world and did

not realise that they had drifted away from their operatives. It

is instructive to learn that when people finally scribble their

resignation letter, they will have passed through various stages

of disengagement. For them to finally document means that they

will have thought through their decisions, options and career

prospects. It is difficult for any external force within the

organisation to turn the mental tide, the bridges would have been

burnt by then-Point of no return has been reached.

Among the reasons Branham points out in his book as to why people

leave include the following:

1. Disillusionment. When people join organisations, they come

with a lot of expectations and an agenda. For a season, most

of them assume all the common problems that bug the average

organisations will have been a thing of the past. If it is

their first job out of college, they diligently run along

338 Quality quest


for some distance without noticing any flaws. But alas, the

time comes when they begin to realise that things are not as

rosy as they initially thought. Much exposure to better

organisations even worsens the situation and consequently

leads them to the human resource exit door. Others leave

because their working environment, interpersonal relations

or expectations are not cordial or good enough. Thus, when a

competitor organisation comes along and dangles a better

deal, the person swiftly takes the next flight out of the

organisation.

2. Secondly, people often quit when they realise that their

training and current job do not match. Others find that they

do not have the right fit and thus by and by degenerate into

frustration, antagonism, boredom or a clear struggle where

others sail plainly. Some jobs demand that some one be

technical, analytical or time bound while others are more

relational and dependant on what the day brings along. If a

technical person is put in a social/non technical job, they

eventually feel caged and quit. There are exceptions to the

rule though, those with versatile fertile minds are able to

wiggle around and still tick.

3. In the third place, some people feel abandoned and unguided

when they commence the job. Where the systems are refined

339 Quality quest


and working, some organisation fall into a pitfall of

assuming people will “automatically fit in” and thus offer

very little or no orientation. All the organisation is

interested in are results. Even the best self starter often

feels stranded, abandoned and alone. It is worse where the

corporate culture is too formal, impersonal and restrictive.

Once thrown into the deep end, they are expected to swim to

safety and produce wonders. There is need to have a

consistent coaching arrangement where people are helped to

settle and walked with along the way. This builds a sense of

belonging and reduces staff turnover. The other pitfall is

lack of proper constructive feed back on many issues. This

leaves people wondering whether they are making headway or

on the wrong path. Sadly, in some organisations that abuse

“management by exception”, people discover that they are in

the wrong when they receive a warning letter or a sudden

strong reprimand. This kills morale and people begin to

visit the newspaper job advert page and eventually flee at

the earliest opportunity.

4. A pyramid structure arrangement often blocks people’s

prospects of advancement. If the structure is too elaborate

and narrow, people will see the road block from afar and

quickly look for an alternative that will cut the long

340 Quality quest


route. Often time, external organisations with better and

fewer/flatter layers are more appealing to the ambitious.

Many people are in a hurry to get to the top as soon as

possible and thus eventually leave. The figure below

attempts to show what an average organisation structure

looks like:

Directors/CEO

More than just upward movement is the possibility of fluidly

moving across the organisation for one to enrich their job

experience or develop within the organisation. Rigid

organisation curtail any attempt to move and thus frustrate

people. The last straw comes when all possibility advancement

doors are blocked on account of internal organisational

politics, prolonged and frequent reorganisations as well as

341 Quality quest

Top

Layers- Middle mgt

Layers-most people here


other external threats and limiting factors such as donors,

market loss and permanent road blocks.

5. In the fifth place, people leave the organisation because

they do not feel valued or recognised. If they do not feel

“at home” they will grab the earliest place where they will

be given the due dignity, support and appreciation. Many

organisational structures are bureaucratic and laced with a

thick layer of red tape. Brain storming sessions or staff

involvement are non-existent, people are ruled with an iron

dictatorial hand, from the traditional management school.

Progressive organisations however, value each team member

from sweeper upwards and consult widely from the internal

customers. It is even better where self managing teams exist

as opposed to mere work groups. As people feel the sense of

community, are heard and valued, they naturally become

reluctant to quit and in turn market the organisation to the

outside world.

6. In this fast paced global world, people find themselves

always on the run. Decisions that once took a year now take

seconds and by that token speed up the work pace. Deadlines

are the order of the day coupled with a shrinking job market

342 Quality quest


in places like Zambia. In a bid to retain or maintain their

competitive jobs and make the mark on the industry, many do

it at the expense of other equally important issues such as

family life, leisure time, leave or even engaging in

refreshing personal projects such as home building. A

dilemma is created that raises the stress levels and in some

cases wrecks people’s health. Prudent and marketable people

quickly quit. Sadly, the stranded stick around until they

totally break down. There is need to rest. All work and no

rest kills the horse God gave you.

7. The last reason advanced by Branham is loss of mutual trust.

When employees look at their superiors, they look at them

with some measure of cynicism and suspicion. Whatever the

leaders say is taken with a pinch of salt and never relied

on. Leaders often lose their followers’ confidence when they

are insincere, unsure, inconsistent, intimidatory or

manipulative. Because of the betrayal, ill treatment or

breach of trust, a power distance is created and scarcely

can be mended. Frustrated staff instantly fly away at that

point.

343 Quality quest


Having looked at the reasons advanced, I would like to add a

few more reasons that I feel significantly add to the high

staff turn over.

People leave when they feel unfairly treated by their

superiors. Insecure leaders are constantly sending

intimidating gestures and messages that discourage the lower

operatives who eventually quit. Secondly, staff quit when

unethical practices are tolerated by the organisation such as

window dressing of accounts or no proper documented referral

policies on file. Decisions depend on what the boss feels not

policy. The third reason could be insecurity. Traditionally,

many people in Zambia have been accustomed to life long

employment and often feel insecure to be given short contracts

lest they prematurely lose their living. The pre-nineteen

ninety two (1992) hang over still lingers in many Zambian

minds and needs to be quickly exorcised. The fourth reason is

simply that other competitive organisations have emerged which

offer far more monetary rewards for the same type of job. This

enables some one to invest quicker, build their empires, build

profiles or indeed better exposure. By the time the contract

expires, they will have had immediate benefit and moved on to

344 Quality quest


the next level. For instance, if working for your present

employer offers you a steady lower paying job while a shorter

contract job offers you ten times as much as your current job,

we suppose you will elect to get the shorter contract and more

money in one month than would be earned in ten months. In

effect, your value for money is higher now than at a later

date. Many out of college graduates prefer the big jobs for

instant gratification. The fifth reason could be that some

organisations offer variety, challenges, are more versatile,

lean, agile flexible and fit in well with the present trends.

People get incentives that betters their lives albeit they be

hidden such as transportation, leave pay, loans, bonuses,

holidays or medical. The sixth reason is when the persons’

personal goals do not agree with the organisations’. The

person finds the bad practices, behaviour patterns, lack of

leadership/direction, laissez faire attitude etc rife and

unabated in the organisation, they feel disappointed,

disillusioned and fear corrupting their own good work

culture/ethics. Thus they leave despite having a secure job.

This culture thrives in the civil service where people live at

their own pace. They dare not quit as they value the perceived

security. The progressive professional feels crippled in such

a setting and soon quits or conforms. That partly explains why

345 Quality quest


NGOs are reluctant to hire candidates from the civil service

as though they suffer from a plague.

These are but a few of the additions but we would safely

conclude and say that the global worker of the 21st century is

looking for the best possible personal deals they can get hold

of. They are offering a skill and as such need to partner with

progressive companies that are relevant to the times. In fact,

many of them commence their careers with a clear agenda in

mind-to employ rather than be employed. If their goal is

elusive, they leave in search of greener pastures.


Give at least five reasons why staff quit organisations/projects.

In your opinion, are the seven reasons advanced by Leigh Branham

actually hidden?

What is your suggestion to increase staff retention and

motivation?

How best can the Generation Gap be narrowed?

How did the post 1992 economic unfolding impact on Human Resource

Management?

346 Quality quest


Revision exercise

Why is it important to hire the correct staff?

Give some ways which staff performance can be documented.

What is the aim and spirit of the staff appraisal?

If you were the Manager of a soon phasing out project, how would

you motivate your staff?

Give at least four reasons why employees leave organisations.

Do you think the project manager is the best person to handle HR

matters? Discuss and give reasons.

What is productivity and how can it be increased in staff?

BibliographyBell H Cecil Jr & French L Wendell, Organisation Development,

Prentice Hall of India, 3rd edition, 1989


Bramham John, Practical Manpower Planning, Institute of Personnel

Management, 1982

347 Quality quest




GRZ, Annual Performance Evaluation in Civil Service (APECS),

APECS user guide, 1989

Kakabadse Andrew & Analoui Farhad, Corporate sabotage, Jaico


Kapatamoyo Abel & Gunnigle Patrick, An introduction to Job

Analysis and evaluation, Zambia institute of Personnel

Management, 1988.

Kinicki A & Kreitner R, Organizational Behaviour, 4th edition,

Irwin/McGraw-Hill, 1998

Mwanalushi Muyunda & McMahon G, An introduction to performance

appraisal: The human resource evaluation process Volume 1 #. 2

The personnel Management in Zambia series 1989

Peters J Thomas & Waterman H Robert Jr, In search of Excellence,

Warner books, 1982

Schuler S Randall, Welch E Denice & Dowling J Peter,

International Human Resource Management, 3rd edition, South-

western College publishing, 1999

Turell M, Training Analysis, MacDonald and Evans, 1980

348 Quality quest


Unit 7

Aim

The aim of this unit is to give an integrated view to project and

program management so that the student is able to intelligently

appreciate the two and how they relate.

Objectives

By the end of this project, the student should:

Tie up all the loose ends of project & program management.

349 Quality quest


Distinguish between a project and Program

Integrated Program managementFor any project to successfully kick start, progress and eventually “phase out with dignity”, there is a lot of work that

is involved and goes on throughout in the back ground. Granted

that hurdles, challenges and frustrations will be faced by the

front liners (“where the rubber meets the road”) there is a

powerful machinery that ensures the right thing is done at the

correct time. From inception, through the design and

implementation stages, the way a project is going to function is

predetermined so as to ensure correct, efficient and cost

effective implementation is achieved. The wheels which makes this

machinery work well is known as ‘Operations’. The careful

harnessing of the same to achieve the intended goal is called

Operations Management. This usually centres around the project

core business without which the project will be defunct or ground

to a halt. Operations Management has been defined variously by

different authorities but its basic understanding revolves around

ensuring that the operational gears of the entity are functioning

in tip top condition to create satisfactory product or service

for the customer (i.e. consumer, sponsor or donor etc). Roger

Schroeder24 defines it as being “responsible for supplying the 24 Operations Management: Contemporary concepts and cases, pp 4

350 Quality quest


product or service of the organisation. Operations Managers

provide value for the customer at the lowest cost making

decisions for the operations function and by managing the

transformations process”. This elaborate definition attempts to

give an anatomical production oriented definition of operations

management but could be further refined. It emphasizes a number

of key points such as decision making, functionality, process and

indirectly quality. Any process must have quality attached to it

or else it is not worth undertaking as it risks being a sheer

waste of resources.

In considering integrated program management, we are talking

about various projects clustered together to form one huge

program whose effect is greater than the sum total of all the

projects. In other words, there is some form of synergy that

results and these projects together target specific problems

which when dealt with bring about a lasting impact in the area

where the program operates. We briefly explain the difference

between a project and program below:

A project, as explained in an earlier unit is a specialised

undertaking whose mandate is to deal with a specific problem in a

given time frame. In other words, a project has a definite

lifespan, start and end date. The project also passes through

phases and is summarized by a log frame, if that is the method 351 Quality quest


chosen. A project is monitored at activity and output level

(implementation stage).

A program on the other hand is a large scale undertaking which

also has a lifespan, targets and benchmarks which are evaluated

at some time. Strictly speaking, a program is not monitored but

evaluated because its constituent projects combine to feed into

the program goal. In other words, a program is made up of

clustered projects whose cumulative effect impacts on a larger

scale than the separate individual projects. For instance, World

Vision International runs Area Development Programs (ADPs) around

the world that implements interventions for long periods of time

between 15 and 25 years. Projects collectively form integrated

development programs that have periodic “add on” projects which

come and go as their cycles elapse. For instance many projects

with different funding sources (i.e. Japan, UK , Korea or USA)

might all be clustered under one ADP but collectively deal with

an issue in an area with a view to improve the quality of life of

the target beneficiaries.

In the corporate world, different programs focus on different

issues but their goal is to sort out a specific issue or develop

some product that is needed to help the business. For instance,

NASA is to retire the entire space shuttle fleet in 2010 after

completing the construction of the International space station. 352 Quality quest


In preparation for the post 2010 era, a number of programs have

been initiated whose mandate is to develop the next generation

space vehicle fleet (Aires) which are probably more versatile,

cost effective and for longer range space travel. The said

program probably commenced several years ago in anticipation of

the shuttle retirement and will smoothly come in to supplant the

legendary “STS” fleet which have worked well from about 1981

although two were lost in the process (Challenger in 1986 &

Columbia in 2003). Other programs exist in the motor industry

whose main goal is to carry out R & D for product improvement.

Operations issuesFor a project or program to efficiently work well, a number of

issues have to be in place which include the structure, human

resource, financial resources, teams, culture, philosophy as well

as the vision and mission statements.

The Vision and mission statements usually have a bearing on the

strategy adopted and ultimately influence structure. We briefly

investigate each of these areas.

Vision

353 Quality quest


Every entity that gets into some kind of activity has a desired

dream or goal at the end of the day. No matter what activity or

intervention engaged in, whether long term or short, big or

small, the entity has a mental picture of what it would like to

see or be a given distant future. This is its vision. Simply

defined, we can state that a vision is the entity’s future

position or what it would like to be. We could still refine this

definition and say that a vision is a desired future dream viewed

from the present podium. For instance, a project may want to see

every child enjoying a higher quality of life as is for World

Vision International and state it as “Our Vision for every child,

life in all its fullness, our prayer for every child, the will to

make it so”. This may appear a lofty goal and perhaps not

attainable but this is World Visions’ dream that they would like

to see a world where every child is secure, healthy, well cared

for and happy where they (World Vision works or not). Thus, in

order to reach this goal, the said entities will aspire and

position itself to contribute to this vision and not rest until

some semblance of this is attained. Thus, the project, program or

entity will state its reason for existence in broad terms

justifying its existence as encapsulated in its mission

statement.

Mission statement354 Quality quest


Drawing from the vision, the entity then proceeds to state its

reason for existence in an elaborate and all encompassing

statement. This statement explicitly expresses the reason or

justification why the firm exists and how it will attain its

goals. In a nutshell, a mission is a broad statement which

explains in clear terms why the firm exists and if it acts ultra

vires, there is no justification for its existence and will

subsequently not reach its goal. Following up with the earlier

example, World Vision International has the following elaborate

mission statement: “World Vision is an international partnership

of Christians whose mission is to follow our Lord and Saviour

Jesus Christ in working with the poor and oppressed to promote

human transformation, seek justice, and bear witness to the good

news of the Kingdom of God.

We pursue this mission through total commitment to:

Transformational development that is community based and

sustainable, focused especially on the needs of children.

Emergency relief that assists people afflicted by conflict or

disaster.

Promotion of justice that seeks to change unjust structures

affecting the poor among whom we work.

355 Quality quest


Strategic initiatives that serve the church in the fulfilment of

it's mission.

Public awareness that leads to informed understanding, giving,

involvement and prayer.

Witness to Jesus Christ by life, deed, word and sign that

encourages people to respond to the Gospel.”

From the statement we learn that World Vision has a mission to

accomplish in the world, bringing about holistic transformational

development in the lives of all people regardless of race, creed,

location or gender, from a Christian perspective. Note also that

the statement shows WHAT the organisation seeks to achieve as

well as HOW it will do this, although the latter point is further

amplified in objectives (which are specific steps to achieving

the dream).

At first glance, one can tell what a project is focussed on or

what it deems important by the project structure or organo gram.

Depending on the interventions pursued, the project may have an

elaborate or lean structure which either expands or contracts.

For instance, if the project or program is a relief focused,

expect a number of food monitors and distributors. Expect the

structure to expand or contract periodically contingent of the

nutrition levels. By the same token, if it is a development 356 Quality quest


program, the structure will progressively expand as the project

cycles take effect until the maximum establishment is in place.

These will run all the projects under the program and each

Development Facilitator, being a specialist in that respective

field, acts as Project Manager while the overall program is

managed and led by the Program Manager. To illustrate what we are

talking about, we have inserted two sample organo grams, the

first (fig 1) fully established and the second (fig 2) of a

program in expansion.

357 Quality quest


Structure or organo gram

Different structures at project level:

358 Quality quest

Driver

DF Agric.DF – Water &

Sanitation

Office Assistant

Development Co-ordinator

Program Manager

Program Accountant

DF HIV

DF XDF Health

Accounts

Assistant


Fig 1 An elaborate organo gram showing program staff and their reporting roles.

359 Quality quest

ADPM

DF HIV DF-ChildrenDF

Agriculture

M & E Accountant

CDWG CDW CDW


Figure 2 An organo gram depicting program staff and their reporting roles

360 Quality quest

Managing Quality in Project and HumanResource

Human Resources

For any project, and indeed any entity to thrive and

succeed, the human element in some way is critical. For

now, human input cannot be avoided and still remains the

driving force in every undertaking. There is a lot of

thinking, consultation, collaboration, networking and

implementation where a project is going on. To get the

best out of people therefore, there is need to recruit

and hire the best talent on the job market that will be

able to diligently work and deliver at the end of the

day. But hiring is not enough, there is capacity

building, training, team building and organisational

culture “indoctrination” that takes place in the

intermittent period while the staff is still on board

before they eventually depart for one reason or the

other. Thus, every entity needs a human resource

specialist that must handle all these delicate matters

that border on motivation as well as keeping people on

board as long as possible. Where this is not possible,

the project manager must be sufficiently equipped with

skills to competently handle issues of that nature. A

motivated work force with a good leadership achieves

wonders. In the absence of that, staff engage in all

sorts of sabotage, venting out their frustrations! None

361


the less, the human component must be well harnessed to

contribute to the corporate goal congruence.

Finance department

The finance department is probably the most sensitive

section, though not necessarily the most important. It is

sensitive in the sense that it is the nerve centre of the

project and if the wheels in this department are not well

oiled or sufficiently efficient, the whole project

suffers, many times grinding to a halt. Financial

management includes all matters related to project assets

(fixed and current) and how these are acquired, kept and

utilised. To effectively execute these functions, the

finance department institutes a system that ensures

everything in the program is tracked and used as per

plan. This system is called an internal control as it is

there not only to inhibit abuse but also promote

efficiency in the project. Specifically, the finance

department handles the following:

Budgeting. This is done before and during the project

implementation. Depending on the project life as well as

mutual agreements between sponsor and implementer, most

projects do a fresh budget each year, although a budget

life time budget is drawn up before the project actually

begins with modifications along the way. Budgeting

362


entails knowing the costs as well as when the specific

activities will take place.

Asset acquiring/procurement. Although this function is

increasingly being handled by the supply chain or

purchasing department, the finance people are involved at

every stage because they are the ones who made up the

budgets with input from others of course. Therefore, when

the right time to acquire assets arrives, the department

facilitates payment, bearing in mind the budget

provisions.

Financial advice and training. Many assume that they know

financial matters well enough while others do not care

about budgets at all. Their only interest is to see

things they demand acted upon. This is a weakness because

finance has rules, regulations and standards that must be

observed before any transaction takes place. Thus, the

department offers financial advice and training to

whoever may need educating. In addition, management is

constantly kept abreast with the financial situation by

use of various tools like cash flows, target low

(standard minimum cash balance at the end of every

financial period e.g. month end), asset register,

inventory list, bank balance among many.

363


Financial reporting. Periodically, there is need to give

feed back to whoever requires it, especially the sponsor.

A report is therefore generated and made available for

scrutiny and information to and by whoever is an

interested party. The financial reports differ from

project to project depending on donor requirements and

specifications. Some require simple and summarised

reports while others demand detailed line by line report

backed by a narrative variance report. In addition, the

report must be in a set format and be accompanied by a

bank reconciliation for each bank account maintained by

the project. Rules around bank accounts also apply and

are effected by the finance department.

Internal control enforcement. As part of the finance

management system (and this is very critical to any

auditor), the project has systems in place that ensure

project resources are not only safeguarded but used for

their intended purpose. This involves how the bank

accounts are handled, who has access and control to them,

how vehicles, computers, phones, office premises, motor

bikes, bicycles, debtors, creditors and all that is

utilised or affects the program. The finance person must

especially watch out on debtors and creditors for these

wreck not a little havoc. This system attempts to ensure

364


these things are used well and appropriately so that the

project functions efficiently.

Budget control. Although closely connected to an earlier

point (Budgeting), this point merits its own place. Once

budgets are drafted with everything required factored in,

these provisions must be followed. Many non-finance

people do not always have the discipline to adhere to

budget because they do not appreciate what impact every

transaction has on the overall budget. For instance,

every over expenditure robs the next line item in the

budget of getting the required funds and may eventually

not be carried out for lack of funds. At one time, this

author worked in a project that exhausted its budget by

quarter three of that particular year and had no money

for the last lap. You should have seen the confusion and

disorientation in the non finance guys! They forgot that

they had over spent in about every line item they managed

to do! The function of the finance team is therefore to

meticulously watch the costs and ensure every one safely

gets to the end of the year with a pay check because of

sticking to budget! Governments desperately need to learn

fiscal discipline and I am sure NGOs will go out of

business. Many donors dread the red tape, bureaucracy,

misapplication or diversion of funds when it enters

365


government coffers. Genuine NGOs are far better in their

financial controls and accountability.

There are definitely other functions that the finance

department does but we need to wrap up this point by

stating that the said department is there to facilitate

smooth implementation of the project, in keeping with the

set goals for that period as set financial rules are

observed.

Production department

The production department usually applies for a

manufacturing industry but none the less, all entities

are involved in some form of product churning out. That

in itself is production of sorts. But suppose we are in a

fully fledged manufacturing firm, this department

receives specifications and raw materials and processes

them to get a product, usually with added value to the

customer. This department does not act arbitrary but has

systems and processes that work to ensure that only

required things are produced having received feedback and

instructions from other sister departments such as the

marketing, research, finance among others. Usually, in

the manufacturing sector, this is the core business

centre of the organisation or project and the operations

department revolves around this area. In an ideal

366


organisation or entity, the production department works

closely with other departments to produce quality

products timely, with the right systems (such as JIT) at

the required standard of conformance and specification.

In the past when production was the main thing, all other

departments shrank into oblivion but with the realisation

that quality is key, this department cannot work solo

lest it wastes resources by producing incorrect products

which in some case may be more costly when outsourcing

would have been a better option. A detailed description

of this department is beyond description of this module

but suffice it to say that the production department is a

equally essential “cog” in the supply chain of a

successful project or entity.

Marketing department

The Marketing Department has a number of functions but

its principle aim is to build a brand name thereby

encouraging brand loyalty. Contrary to the common belief

that Marketing is only about sales, it is far more than

that and includes, Market Research, Product Development,

customer satisfaction and retention, quality service

delivery among many. Therefore, Sales or market expansion

is but a small component of what marketing entails. In

project management, some form of marketing takes place in

the quest to please or satisfy sponsors by doing a good

367


job, in record time and of high impact. As a result of

this, the sponsor is impressed and probably pledges more

resources as well as tells ten others to equally

contribute. This latter bit is some form marketing

department who had no clue whatsoever of what is involved

in marketing. Their aim was to increase sales in the

absence or competition (command economy) and at mediocre

prices. People bought their goods simply because they had

no other choice but at the economic change over of 1992,

most of these companies folded. Only those that saw the

importance of the marketing function remain buoyant

today, far different from what they were then!

Public Relations

Closely connected to the previous point of consideration

(Marketing), the public relations wing seeks to among

many things:

1. Inform the public and staff about what is going on.

2. Alert on what is yet to come in the year.

3. Correct wrong impressions/misunderstandings created

within and outside the organisation.

4. Defend the project from unjust public utterances.

5. Record, document and capture significant stories worth

telling to the outside world.

368


This department, though usually viewed as inferior or

unimportant actually carries a lot of wait and preserves

or enhances the corporate image of the entity or project.

This Public Relations (PR) department does a lot of back

ground work and checks before publishing or issuing a

statement over any matter. It is therefore the mouth

piece of the entity and no other person is allowed to

issue any press statement relating to the organisation,

unless so allowed. The reason is simply: To preserve the

corporate image and avoid damage control that ensues in

the event of an erroneous statement.

On a positive note, the PR department goes ahead to

uphold and enhance the corporate image so that sponsors

or donors are made aware of the entity’s existence.

In project Management, the ball again falls on the

Manager’s lap, unless so delegated to another

functionary. The PR methods and avenues are many and

contribute to mutual understanding among partners and

stake holders. Thus, PR is a critical part of the program

in the quest to maintain consistency.

TeamsToday’s progressive entities prefer working in teams in

order to build synergy. For a long time to come, teams

and team work will be the best practice and way to go in

369


order to achieve far much more than would ordinarily be

accomplished. A team is basically an integrated organic

unit of people working on a common objective as well as

looking out for the common good of each other. The said

team is a matrix of individuals who look out for,

interconnect, inter depend and overlap in their

functionalities ensuring that the project does not stall

on account of an individual’s absence or inefficiency. To

function well, the team must be mature, organised, with

clear common goals and objectives. Teams are of different

types and are distinguishable from groups. While a group

emphasises allotting duties and responsibilities to

specific individuals and assessing them by what their

output, teams focus more on a system and interdependence

with a view to build synergy, collective responsibility

and success. Star performers are acknowledged but within

a team context rather than as isolated individuals. Some

teams are self managing composed of all professionals on

board with a rotating leadership. Others are virtual in

that they do not physically work in one place but are

interconnected by appropriate technology such as video

conferencing, skype, webbex, twitter, face book, email or

whatever facilities that enable interaction. By and

large, most of the project teams around the world work

together in one locality with one person that heads the

team, calling the shots as it were.

370


Projects develop teams as they mature ensuring that the

best team members are co-opted into the project staff

structure. Trends observed recently in project circles is

that groups are fast ebbing away and giving room to

multifunctional or cross functional teams. It has been

observed in some organisations that a strong team work

culture has significantly improved the results of the

project, although teams also have their own fair share of

challenges along the way. We highlight some of these

common challenges shortly but for now we state that team

work is the way to go.

Challenges faced by teams

Team dysfunction

At times, teams are crippled by internal wrangling

resulting from egocentricism or organisational politics.

An off shoot of this is mistrust, acrimony and a myopic

inward looking mentality. People become unsure and spend

more time looking over their shoulders just in case some

“matchet” carrying colleague is hot on their trails.

Often, when the power distance between the team leader

and colleagues is very wide, this is bound to happen.

Another reason for this could be that the staff do not

have the right competencies and credentials forcing the

team leader to act as a ‘goose chaser’. This has a

371


telling effect on the output and quality drastically

plummets as a result.

Little buy in by new staff also contributes because they

come in with their own un checked baggage and operate as

usual only to receive a rude culture shock when others

cry foul. In the teams that the author has been

privileged to work, he has repeatedly confirmed this

development. Another contributor is lack of continuous

training of team members so that they acquire a fresh

skill set as well as be on the same page with the rest of

the team. Half the team, the leader is light years away

while others are ignorantly groping in the darkness.

Vision and objectives unclear

Often times, in the quest to beat deadlines and impress

the sponsors, projects commence in earnest overlooking a

lot of variables which back fire in the long run. One of

these back lashes is when people do not function as

expected simply because they do not know or realise the

importance of the shared project goal, vision or

objectives. Had they been appraised during orientation,

then the turn of events would have been totally

different. Usually, a small click knows the bigger

picture and what is at stake while the rest remain in the

372


dark and therefore care little about their output

quality.

Inappropriate leadership style

At times, project teams are a circus and the chief clown

is the project manager him or herself! In such scenarios,

the staff are highly demotivated, disillusioned and do

not put in their utmost. The simple reason could be that

the leadership style is inappropriate and out of step

with the cultural and team norms. In Zambia, the power

distance, perhaps influenced by the cultural and

traditional managements beliefs account much for the

problems at hand. In extreme cases, the team leader

becomes self centred, disregarding anyone else. Some

leaders personalise everything and treat the project as

their own farm or house hold totally trashing

professionalism. Other problems beyond the scope of this

book could also be summoned.

Diverse cultures and orientations

Due probably to our diverse background orientations, our

perceptions, values and inclinations play a critical role

on how we respond to the world around us. Some are

brought up in a time conscious culture while others use

the sun to determine their activities whilst others still

place so much importance on interpersonal relations

373


(knowledge of each other) that impact on their responses

to the world. Those that value time are always on target

and feel extremely uneasy if things correct or not, are

done at the wrong time. The other extreme is true for the

other group who are always reacting to circumstances

rather than proactive. Now when all these characters are

co-opted into one team, the drama begins! One will be

pulling in one direction at lightning speed while the

other will be half asleep! Not a little tension and

acrimony results. If this difference is not recognised

early in the project life, the tussles continue on and

adversely affect the team effectiveness. Some eventually

quit and head elsewhere and the cost of replacement is

quite high, having invested so much in individuals.

Griffin, in his classic management book tells of a case

where some Japanese and American engineers constituted a

team to work on a project of mutual interest. There was

chaos in the team to the extent that the project nearly

failed. One part of the team had some preferences, like

working long hours with no breaks in between while the

other was so time conscious and took frequent breaks at

the right time. The one loved open low open windows while

the other preferred high closed windows. These little

things brought untold wrangling and acrimony. But it is

good to know that diversity is good and extremely

profitable once correctly harnessed and approached.

374


Differing ambitions

With the advent of the generation X, there is a clear

difference in the way people perceive life. Their world

view is totally different from the previous generation.

While Generation Y workers are content to progressively

development their wealth base over time, Generation X

people are different, they demand instant results. Be

that as it may, people from the same generation have

different ambitions and thus will react differently. One

would like to buy a house in the first year of employment

while another would not mind getting it the next year or

prioritise something else. These differences eventually

come to bear on the team dynamics as well as how people

work or relate to each other. Having worked in projects

for over a decade, the writer is fully alive to this

issue. But then, people respond differently to issues

pertaining to their ambitions. Some quit while others

hang in there hoping things will change in due course.

This attrition, if severe, adversely affects the

organisation.

Low motivation

One of the major killers of project progress is the issue

of motivation. If staff are not motivated, they find ways

to vent out their frustration. Some of the ways may

375


include, back biting, pilferage, corporate sabotage,

malice, late coming, absconding, increased absenteeism,

poor interpersonal relationships, unhealthy suspicions

among many. Once one enters an area of low motivation, it

shows as people are indifferent, exhibit little or no

enthusiasm and to some extent careless with project

assets. In Zambia, the major motivator is the amount of

net take home pay though this is not the only.

Competition rather than collaboration

Projects can be interesting places sometimes! Instead of

being a haven for development and peace, it sometimes

turns out to be a place of aggressive competition against

each other! What suffers in the end are other vulnerable

team members as well as the project progress because

people are busy outdoing each other! At other times, it

may not be amongst the immediate team members themselves

but tussles between sister projects which are supposed to

be complementary to each other.

Imaginary dividing walls (by departmental walls)

This happens all too often. People profess to be world

class team players but in practice defend their turf or

ward off any intruder at any and every cost. The

imaginary silos do more harm than good in that they

inhibit cross functional team work as well as prop up red

376


tape, bureaucracy and acrimony. Granted, we all need

privacy to do our respective tasks and callings but there

is need for flexibility and openness if a project or

indeed, any entity is to succeed. Jack Welch25, that

legendry leader, loathed bureaucracy so much that he

determined to kill bureaucracy, along with it, the

dividing walls of hostility. He believed in a

boundaryless organisation that facilitated learning from

any point, anywhere, anytime. Since we are generally

boxed in our thinking and value our privacy too much,

there is a tendency to hide information and work solo and

independently. While it is good to be independent and

competent, we cannot do without others. This leads to

tearing rather than building the team.

In the quest to build the team, it is prudent for us to

consider the team building cycle so that we learn how

best to build the winning team that will consistently

score as long as the project lasts. We briefly consider

the team building cycle.

Team building cycle

Team building is an arduous but rewarding task and

exercise. It is arduous in the sense that to get any

meaningful semblance of a team, there is a lot of work

involved, the hours, efforts, costs and disappointments25 Stuart Crainer’s “The Jack Welch Way” is instructive, pp 115

377


along the way. Sometimes, the very people intended to

be on the team are the very ones that turn round and

repeatedly tear down any tangible progress achieved. On

the other hand, team building is a rewarding task

because of the elating results that it brings about the

fore. In an ideal situation, there are higher quality

results, over lapping, continuity and self managing,

not dependant on one individual to get things going. A

team-building model developed in America best

summarises the team building cycle or phases. The first

time people meet, they hardly know each other and

unconsciously start by sizing each other up (forming)

followed by the red cards, tussles, tip over and

antagonisms as people get to know each other in terms

of their limits, temperaments and preferences

(storming). At this stage, a lot of sparks ensue and

can either make or break the cycle. Once that critical

stage has been successfully crossed, people begin to

settle down, know each other, and avoid past pitfalls.

At this stage, people sufficiently know each other and

can safely joke, brainstorm or tease one another

without major repercussions (Norming). Having known

each other, their attention now shifts towards

achieving results, since the preliminary hurdles have

been cleared out of the way. At this stage, people are

issue based, goal and target focused and will not

378


easily be detracted by criticism since they view

challenges as opportunities and stepping-stones to the

next level. At this stage, the team is mature and self-

managing. The petty power politics, suspicions or

daggers are long hurled away in preference for team

effort and goal getting. Many so-called teams rarely

get to this mature refined stage in Zambia, though

exceptions exist.

The diagram below summarizes the team building cycle:

FORMING

(Start)

NORMING

PERFORMING

STORMING

379


American Model

Chaos stage

In this text, we have further refined this model by

adding two stages prior to the forming stage highlighted

in the previous diagram. Our two stages emphasize the

point that before people ever come to the organisation,

they are outside the system which we can consider

“roaming” around with no particular aim as regards the

organisation. Of course we know that they are part of

other systems, teams and so forth far from this system

and have different orientations, goals, aims and ways of

functioning but when they take a step to join the firm,

they come with hind experience and disengage from the

previous attachments. As they resolve to come, they pass

through the various induction phases such as interviews,

orientation, negotiation, contract signing etc and then

subsequent entry on board the organisation. This whole

380


phase constitutes what I have elected to call the

“coming” stage because it is a conscious deliberate step

on the individuals part to enter a “corporate employee

pool” from which the teams now begin to take shape. The

model below highlights this thought pattern:

381


Refined American model

Chaos stage

Start

ROAMING

(Start)

COMING

FORMINGSTORMING

NORMING

PERFORMING

382


[ Chaos stage ]

Equation: Roaming-> coming-> forming->storming-

>norming-> performing

Once on board, the hired staff cadre join their

respective departments/units and areas of specialization.

This constitutes a dormant stage where groups exist and

people focus on their specific work area, passing on

their output to the department head who consolidates

everything to make one report. If a functionary fails on

their part, the gap is clearly spotted and incumbents are

penalised for their error. Furthermore, this is the raw

material stage for potential teams. As organisations

realise the disadvantages of groups, they opt for teams

that are cross-functional which demolish the imaginary

departmental walls. This allows for information free

flow, idea exchange and higher quality output and

outcome. To attain this fine performing stage is not

easy, much work, time and effort as earlier intimated,

goes into this maturation. Apart from hiring the right

staff with the correct competencies, you need to

integrate them into one cohesive front that operates like

hand in glove. To have an organisation that works like

383


the human body is marvellous because it will not only

respond to stimuli but also proactively position itself

at the right place. A number of team building

techniques/approaches have therefore been suggested in

the ensuing section and worth serious consideration.

Remember that these are but suggestions, you are advised

to think of other equally potent ways appropriate to your

context:

Suggested team building techniques

These exercises are designed to build a cohesive team and

the best way to build unity of purpose in the

organisation is to first make team mates realise the goal

and benefits. As opposed to working as “stand alone

units” or concentrate on destructive organisational

politics such as position jostling, back biting and

devouring one another, the team players are made to

realise that unless they pull together, they must

necessarily sink together and all lose out. To achieve

this, the strategic team builder should use various

methods such as:

1. Making people have unity of purpose and goal. The

leader should endeavour to pull along the friends in

a smart but systematic way to the extent that they

384


begin to see the whole picture, the pros and cons of

what the organisation is about or intending to do.

2. The managers from different places of the same

organisations should go off together for team

building exercises. This should preferably take

place away from the hustle and bustle of life with

cell phones and land line phones banished unless the

critical calls. At that far-flung place, the

managers should engage in physical exercises such as

mountain climbing, swimming, soccer, relay race,

boat cruise or going down some steep cliff. The

exercises should be designed in such a way as to

enhance interdependence, connectivity and teamwork.

For instance, a team could go to a place like the

boiling pot at the Victoria Falls. In getting to the

pot, a steep distance of over six hundred metres has

to be traversed. Along the way, the participants

encounter a number of things like the steep rocks,

monkeys, a stream and some thick vegetation. Strange

sounds from Mother Nature are also heard. On

arriving at the pot, they see the marvellous

swirling flow of water, relax and then head back

uphill. The journey back is the most challenging and

many may fall by the way side but others will pull

385


them along until the original starting point is

reached. The team members then can go for a swim or

continue on to soak in the Victoria Falls spray.

After all the fun, the team will definitely be more

cohesive if people are sincere and open with one

another. Another place is the outward-bound camp in

Mbala, a secluded and quite place far from the

conventional civilisation. The scenery is good and

ideal for brainstorming and team building exercises.

Akin to the boiling pot experience, the Mbala place

is recommended. Some other places include the

Chishimba and Lwitikila falls (Kasama and Mpika),

Shiwa Ngandu (Chinsali), and the Chinyunyu hot

springs (Chongwe) among others.

There could be other places that have mushroomed

across the country recent years and the various

management teams must take advantage of this. In a

nutshell, the watchword is innovation and tact to

make the team glue stick. Further, the team could

elect to play games such as volleyball or tag of

war. These games make people pull together.

3. Another way to build a team spirit culture is having

regular brain storming sessions where the Chief

386


Executive Officer (CEO) or Project takes off his/her

status and contributes like any other person. The

average African boss has such an enormous power

distance to the extent that it is nigh unthinkable

to view them apart from their office. But that

notwithstanding, the ideal leader, can and will

delve to the lower orbs without much ado and

intermingle with everyone. In the brain storming

sessions, the atmosphere is meant to be informal

where every one can say whatever they please whether

it makes sense as long as the general context is

kept in focus. In other words, a subject is laid

before and all sorts of ideas are allowed, including

the wild and weird ones. At that stage, no one is

right or wrong but as the team deals with issues,

they pick out the helpful ones while the less

appropriate fall by the way side. This brain

storming exercise has a way of building objectivity,

openness and a desire to connect. Despite the fights

and sometimes violent reactions, the people know

each other and subsequently build life long friends.

In other words, the friendships transcend the office

as people become colleagues.

387


4. Once in a while, teams should spend time together by

way of partying or going out together just to have

an informal time together. Socials could even extend

to the entire organisations at particular times, for

instance at Christmas times. Care must be taken here

so that the focus is not lost.

5. Go rafting together as a team. White water rafting

is one of the most exciting activities one would

ever undertake. The Zambezi rapids are said to be

among the most exciting in the world, meaning that

they are some of the most dangerous! Once the team

commences the five hour trip down the gorges, they

entirely depend on one another for survival, for

they go through places where no man lives. At the

end of the exhilarating trip, people have had fun

together and get bonded to one another. The Sobek

expedition will have done its work by giving you the

rare treat.

6. Watch the ants at work! If possible, create an area

where ants can freely do their thing while you watch

and interpret as a team! Proverbs 6:6; 30:6

388


7. Another team building aspect you could consider

whilst out there is to divide the entire team into

smaller competing groups and then give the groups

one puzzle which they will have to solve as a team.

The wining team gets a prize. A suggested puzzle is

to let them hang sixteen nails on one (The

seventeenth) plus a plank. The first team to

complete the task will be applauded. Watch how they

feverishly get to work as a team! See the Beaver

like diligence!

Boat cruise, sports (e.g. football matches), group work

etc. Closely connected to an earlier point, in a workshop

or conference environment, the work pressure is likely to

be high and knock out some. It is refreshing to have some

team building activity such as some popular sport, boat

cruise group work, bus ride to some place, visit to the

zoo or any other interaction providing a resting valve.

The next day, every one will come to the meeting place

exhilarated with something to talk about and look forward

to some more. Do not worry about those aching muscles, it

is part of spicing up the activity.

Culture

389


Culture has to do with the value system as a way in which

a group of people operate together. In this context, we

are talking about how an organisation elects to operate

and conduct its business consistent with what has been

spelt out in the mission statement. In short, culture

refers to the values, approaches and ways of doing

business. For instance, some projects and companies have

espoused a teamwork culture and whoever is to get on

board must subscribe to this culture or else not be hire,

or be swiftly removed should they fail to two the line.

The reason is simple, they may infect others with the

wrong virus and thus bring about team dysfunction. In

progressive entities, culture plays a major role in

organisational success. To achieve this objective, people

must be oriented into the team immediately they get on

board, “while the iron is still hot”, as it were. One

organisation uses different formats that includes,

workshops, CD, policy documents as well as visiting the

respective projects around the country. That way, a

person gets whole rounded in approach and would most

likely contribute appropriately or press the “eject”

button should they realise it is a wrong fit.

Philosophy

A philosophy is closely knit to a culture but this is

different in the sense that it is a system of believe or

390


approach to something. For instance, Humanism is a

philosophy which focuses on man being at the centre of

everything and thus, everything else that is done points

to the human being at the centre. A philosophy may not

necessarily be correct or the best way of doing something

but that is what someone is convinced of and thus

disseminates it to others who buy in. Thus, if the

philosophy is to hire the best staff on any program or

project team, then the entity will fashion its

recruitment drive in a way consistent with its

philosophical approach. Organisations also need to drill

people in their philosophy immediately they hire or else

they invite future problems and backlash. For instance,

Microsoft has a team culture and continuous improvement

philosophy. Thus, any one getting on board must subscribe

to these tenets.

Some frequently encountered challenges in project and program managementLike any other entity, project and program management is

often beset with many surmountable or insurmountable

challenges, hence the need to hire competent project

managers and teams. From the start, projects have their

own challenges which impinge on their effectiveness and

efficiency contingent of the complexity and critical

nature of the risk of challenge. One way or the other,

391


each project has its down side as well as its bright side

which must be meticulously handled lest the program lands

into a ditch and dismal failure. Examples abound of

projects that have been completed but the ramifications

still haunt us today. For example, while the Kariba Dam

construction was a major undertaking with immense

benefits derived from it to this day, the down side is

that some animals and people were displaced forever

without being compensated (humans). Further, the

displaced people were pushed to the upper infertile lands

as well as others permanently cut off from their

relations across the river. To date, the displaced valley

Tonga people around the lake are disoriented and to some

extent bitter. Another downside is that some rare bird

species and varieties were displaced and one wonders

whether a comprehensive Environmental Impact Assessment

(EIA) was done to take into consideration of all

environmental concerns contributing to degrading the

planet in peril. But from another perspective, millions

are benefiting from more than two countries compared to

the few native inhabitants who once roamed and cultivated

the valleys decades ago. Some other challenges include

corporate sabotage, dysfunctional teams, organisational

politics, cartels and subjectivity among many others.

392


In this section then, we highlight some of the common

problems faced by projects across the world and offer some possible solutions to these. We shall do this in tabular form

so that our work becomes easier to grasp and execute.

Problem Cause Effect on

project

Proposed

solution

Delayed

funding

Delayed

reporting or

feed back to

donors/funding

source

*Implementati

on disturbed

and in

disarray

leading to

panicking.

*Stakeholders

/partners’

commitment

and trust

disturbed.

*If funding

is

contingent

on feed

back/reports

or on

imprest

system,

timely

reporting is

recommended.

*Also get

the best

competent

finance

staff

Delayed

implementat

*Funding

hiccups

*Project not

on target

*Program

well bearing

393


ion *Stake holder

apathy &

indifference

*Wrong timing

and poor

programming

*Panic later

on in project

life

*In extreme

cases,

sponsor

terminates

project.

*Donor

fatigue.

*More costly

for the

project.

in mind all

possible

hindrances

e.g. farming

season,

materials

availability

etc.

*Continuous

stakeholder

engagement

as well as

regular

mutual

updating.

*Only retain

the best

staff on

your team

for better

results.

Sour

relations

with

*Poor or no

feed back.

*Little or no

*Suspension

of funding.

*Donor/

*Be timely.

*Give timely

and correct

394


sponsor progress on

project.

*Unexplained

delays

*Doing what was

not initially

planned for or

mutually agreed

upon.

sponsor

withdrawal.

*Good will

and mutual

trust

disturbed.

feedback

(i.e.

Reports,

pictures,

impact

stories,

significant

changes etc)

*Continuousl

y engage

sponsor on

the triumphs

and

challenges

of the

project.

Premature

project

closure or

reduced

funding

*Sponsor/Donor

dissatisfaction

.

*Theft

*Acting “ultra

vires”

*Target

community

loses

funding.

*Job losses

*Half done

jobs remain

*Prepare and

exit

strategy.

*Transition

well

ensuring all

stakeholders

395


*Little or no

progress.

*Fund sourcing

problems(e.g.

as result of

global economic

meltdown or

change of

government etc)

as white

elephants in

community.

*Product/

service or

community

development

retarded.

understand

exactly why

the project

has closed,

drawing

lessons

there from.

Weak

outcome

*Incorrect

assessment of

problem.

*Weak or lack

of commitment

to project by

target

beneficiaries.

*Programming

was weak and

thus wrong

activities or

correct

activities done

at the wrong

*Donor/

sponsor

dissatisfacti

on.

*Disillusione

d community.

*In some

cases,

dependent

communities.

*Ensure

correct

problem

assessment

and

identificati

on takes

place at

initial

project

stage.

*Conduct EIA

at the

beginning to

forestall

future

396


time.

*Weak or no

“buy in” by

stakeholders.

*Killer

assumptions and

risks over take

project.

backlash.

*Secure full

stake holder

commitment

from the

start.

Document

this

commitment.

*Schedule

activities

correctly

and ensure

resources

are

available at

agreed

times.

Dependence

syndrome

*Incorrect

entry

processes.

*Different

messages to the

community by

* Terrible

ramifications

after project

phase out.

*Partners

stop at

*Speak on

unified

voice as a

team.

*All staff

team members

397


staff team. output level

as long as

project in

implementatio

n.

*Target group

abandon

indigenous

survival/copi

ng mechanisms

and become

dependent on

project.

*Community

worse off

than before

project

implementatio

n.

*Initiative

and

innovation

killed or

reduced.

should be

abreast with

the latest

developments

.

*Careful

with wording

in initial

and

subsequent

stages.

*Consistency

throughout

project

phases.

398


*Intended

outcome

thwarted.

Unresponsiv

e partners

and

stakeholder

s/passive

resistance.

*Inconsistency

in behaviour or

approach by

project team to

partners/stake

holders.

*Unexplained

actions.

*No feedback.

*Disillusion by

community/stake

holders by not

getting the

expected

project

“goodies”

*Community/

Target group

not

understanding

the project

*Delayed

project

implementatio

n.

*Poor quality

output.

*Indifference

.

*Continuous

engagement

of all

partners and

stakeholders

.

*Consistency

in approach

and

behaviour.

*Reverting

to

Memorandum

of

Understandin

g (MoU) as

you

argue/negoti

ate.

399


cycle.

*Clandestine

acting by

project team.

*Lack of

transparency by

project team

*Wrong timing

of activity

(e.g. during

farming season

etc)

Hurried

(rush hour)

spending

*Delayed

project

execution.

*Unclear terms

of reference

(TOR).

*Poor budgeting

and projection

(asked too much

at the wrong

time)

*Increased

risk to

project

resources.

*Abuse

*Over working

staff

*Activities

not allowed

to “simmer”

so that they

*Ensure

implementati

on plan is

well done

and in sync

with all

partners/sta

keholders’

schedule.

*At time of

signing

cooperative

400


*Too stringent

proposal

(budget)

conditions e.g.

allowable or

disallowables

*Incompetent

staff team.

properly

contribute to

the next

level

hierarchy of

objectives.

*Project

appears good

at output

level but not

outcome.

agreement/pr

oject

document

Terms of

Reference,

(TOR), MoU

contract

etc) with

sponsors,

ensure only

realistic

conditions

abide in the

document.

*Ensure

frequent and

regular

consultation

and mutual

feed back

with

stakeholders

.

*Assemble

the best

401


team

possible.

Huge back

log (e.g.

funds)

*Procrastinatio

n and laissez

fair attitude

by all parties

concerned.

*Weak or no

monitoring.

*Incorrect

programming

*Project

viewed as

inefficient.

*Team

management

competence

doubted.

*Donor/

Sponsor

confidence

affected,

mostly

negatively.

*More costs

on repeat

jobs.

*Strictly

follow

implementati

on schedule.

*Institute

mechanisms

that ensure

constant

monitoring

and

implementati

on e.g.

weekly plans

of actions

(POA).

Poor

quality

results at

output

level

*No one is held

accountable.

*Lack of

quality

monitoring

*Donor

dissatisfacti

on.

*Pull out

from project

*Embed

quality

within the

system.

*Make much

402


tools such as M

& E plan, ITT

and variance

reporting.

No set

standards

by sponsors.

*Discontentme

nt by target

group and

other actors.

*waste of

valuable

scarce

resources.

of an issue

who is

engrafted

into the

project

team, are

they

performers?

*Ensure

mechanisms

and systems

are in place

e.g. M & E

Plan,

indicators,

ITT,

financial

reporting

etc.

*Hold some

one

accountable

at every

stage.

403


Set binding

standards

‘White

elephant’

phenomenon

(e.g. the

community

does not

identify

with or

abandons a

project or

structure)

*Community/

stakeholders

not involved or

over looked

from start.

*Stakeholders

do not fully

understand,

appreciate or

comprehend the

project, its

cycle and

implications

(No buy in or

shared vision).

*Exit strategy

for project not

good enough.

*Stake holders

not adequately

or properly

trained for

*Vandalism

*Theft

*Abandoning

*No

maintenance

as target

stakeholders

do not

appreciate

project goal

or process.

* People are

worse off

than before

as community

structure has

been

disturbed

despite the

good

intentions of

*Engage

partners/sta

ke holders

from the

start

throughout

project

life.

*Consult

community at

every turn.

Avoid a top

down

decision

making

routine but

the other

way round.

*Hand a copy

of the

project

document

404


project close

out.

*Strategic

thinking and

acting weak or

lacking by

community and

project

implementer.

the project. from start

to end to

stakeholders

.

*Project

‘hand over’

should start

as soon as

project

implementati

on

commences,

do not wait

till the

last.

*Continuous

training of

target group

so that they

can lead

their own

development

processes

with or

without your

405


intervention

(community

led

response).

*Secure buy

in at or

before

project

start

Delayed

reporting/f

eedback to

donor

*Incompetent

staff.

*Unclear

standards or

deadlines.

*No definite

reporting

date/deadline.

*Delayed

implementation

thus nothing to

report on

deadline, thus

buy time and

report late.

*Donor

displeasure.

*Funding

delays.

*Bad image

created.

*Misunderstan

dings.

*Hire

competent

staff.

*Review

present

systems and

ensure they

work well

and are

relevant.

*Review

organisation

al structure

and re-

engineer or

406


*Weak time

consciousness

(i.e. time

orientation)

*Differing time

zones some

times (e.g. if

sponsor is in

Australia and

project site in

on cape Verde

island.)

reorganise.

*Set

realistic

deadlines.

*Be

proactive

and beat

those

deadlines!

Inaccurate

reporting

*No M & E

system in

place.

*Infrequent

visit to

project site.

*Incompetent

staff.

*Poor audit

rating.

*Donor

withdrawal.

*Loss of

sponsor

goodwill and

trust/confide

nce.

* “Capital

flight”

*Strong

monitoring

system put

in place.

*Strengthen

quality

within the

project

(e.g.

quality

reviews

etc).

407


*job losses

and thus

negatively

impacting

project.

*Counter

check and

validate the

report by on

site

visit(s).

Project

extension

*Delayed

implementation.

*Target

outcomes not

realised.

*Target outputs

not realised.

*Weak project

management

team.

*More costs

incurred.

*Confidence

levels in

project team

drops.

*Project may

not be

replicated

elsewhere but

permanently

closed.

*Diligently

follow

implementati

on schedule.

*Negotiate

such

extension

well in

advance.

*If

possible,

settle for a

no cost

extension.

*Do a

fantastic

job in the

“grace

408


period”.

Unrealistic

expectation

s from

stakeholder

s (i.e.

sponsors,

donors,

customers,

communities

etc)

*Unclear

objectives from

the start.

*Not stating

mission clearly

from the start.

*Over stating

your project

goals and

intentions.

*Differing

statements from

same project

team over

project

goal/intentions

.

*Stake

holders/Partn

ers react

negatively if

project does

not deliver

according to

expectation.

*Disillusionm

ent

*Hidden

suspicion of

being “ripped

off”. Evil

suspicions

promoted.

*Gossip,

malice and

passive

resistance in

the

community/par

*Set the

tone and be

consistent

in what you

say from the

start.

*Revisit

your entry

processes

and state

your mission

from the

start.

*Continuous

stakeholder

engagement.

409


tners.

Sabotage or

boycott

*Frustrated

staff/partners.

*Disagreement.

*Theft/

pilferage

*Acrimony

*Back

stabbing.

*Malice,

envy,

backbiting

etc.

*Wastage of

project

resources.

*Dysfunctiona

l project

team.

*Attention

diverted from

core issues-

development.

*Get buy in

from all

stakeholders

.

*Identify

root cause

and get rid

of it.

*Transparenc

y and

frequent

dialogue/mut

ual

feedback.

*Meticulous

monitoring

of potential

problem

spots.

*Negotiation

and

reasoning.

410


Misundersta

ndings with

civil,

political

and

traditional

leaders

(e.g.

political

interferenc

e,

suspicions

etc)

*Insufficient

information

dissemination.

*Inconsistency

on the project

team’s part.

*Unfulfilled

promises.

*Abuse and ill

treatment of

community/stake

holders.

*Political

engagement.

*Secrecy and

clandestine

manoeuvres.

*Delayed

project

implementatio

n.

*Opposition.

*Sabotage.

*Hostility to

project and

staff.

*State

clearly your

allegiance

from the

start.

* Political

engagement.

*Dialogue

and

transparency

.

*Involvement

of these

stake

holders as

well

throughout

project

life.

*Regular

mutual

feedback and

updating.

411


*Good public

relations

(PR).

Arson (rare

though)

*Frustration.

*Evil

suspicions.

*Secrecy

*No feedback to

stakeholders.

*Project

loses

property.

*People keep

away and

project

stalls.

*Continuous

engagement.

*Proper

security

around

project

assets and

staff.

*Become

‘politically

correct’.

‘Turf

battles’,

territories

and labels

*Frustration.

*The race to be

in the

limelight.

*Donor support

rush.

*No proper

regulating

ethics for all

*Project

politicking.

*Competition

instead of

collaboration

or

networking.

*In fighting

*Attribution

to various

stake

holders.

*Collaborati

on and

networking

realising we

are in an

interdepende

412


players in the

industry.

*Desire to

please donor

and get all the

credit for

success

stories.

nt world and

age.

*Information

sharing and

‘seeing the

big

picture’.

*

Contribution

at outcome

level.

Double

dipping and

reinventing

the wheel

*Lack of

information

sharing.

*Desire to

please donor

without

connecting with

local actors.

*Selfishness

(egocentrism)

*Waste of

scarce

resources.

*Less

community

development.

*Same people

benefit and

eventually

become

wasteful.

*Acrimony in

*Create a

local data

base

accessible

to all

stakeholders

.

*Frequently

compare

notes.

*Share goals

and see how

you can

413


the

community.

collaborate.

We have briefly surveyed the integrated program landscape

and must now hurtle to a conclusion. As can be seen, the

program equally needs to be meticulously managed so that

the best quality standards are adhered to and upheld lest

the program be mediocre in output. If it is not well

handled, it can exist through its life span and leave no

lasting impact and at times leave dysfunctional white

elephants. This quality is guaranteed by the right staff,

M & E approaches, embedded quality, frequent reflection

and application of right emergent strategies, long range

strategic thinking and acting, adopting lean and agile

systems, reading the times, correct positioning and

breaking down the separating imaginary silo boxed kind of

thinking that divides departments fostered by the

departmental walls. In a nutshell, the operation gears

are the ones that make things work. If the wrong leaders,

team members or policy makers are at the helm, be sure to

end up a dismal failure as the program attempts to swim

to shore. Qualitative integrated program management pays

dividends and brings about a synergistic outlook to the

intervention area. A well planned and implemented program

will yield longer lasting impact on industry, community

414


or country. Investment into Research and Development (R &

D) programs is the need of the times rather than

specialising in reactionary measures as has been the case

hitherto.

Implications of delayed project or program implementationIf for some reason a project or program delays, a lot of

things are thrown into jeopardy evoking many of rippling

dire effects along the line, some are very critical while

others insignificant. Whatever the case, delay is neither

encouraged nor desirable unless by mutual consent and

agreement with the sponsor because each stakeholder would

like to see tangible results. To demonstrate why delayed

implementation is bad, we have attempted to list the off

shoots of this delay may be.

1. More costly (in cost or no cost project extension)

2. Quality compromised

3. Interest and commitment may decline from stakeholders

& partners

4. Complicates matters (i.e. partners inconvenienced)

5. Loss of business and funding (e.g. The Freedom tower

deal with the Chinese)

6. Good will and image scarred

415


7. Risks increased (e.g. the recent global crunch,

inflation, political, economic, technological, social,

globalisation leading to obsolesce etc)

7. Waste of resources may result (e.g. market research

results, survey needing to be redone etc)

8. Disfiguring the ultimate product or outcome as context

may have evolved or mutated with different actors all

together. The long sought after lasting change may be

over taken by other events (e.g. Kopa ADP and ZamPalm,

HIV pandemic etc)

Grant Management snap shotGrant management has been around for some time and

involves funds from specific donors, especially

Governments. By definition, a grant is a gift and thus

not to be paid back though there are strings attached to

its use and project execution. Different funding sources

such as AUSAID, NORAD, DFID etc have their own unique

requirements on the use of public funds in a foreign

country. These conditions stipulate what can be done or

not done using those particular funds as per donor

requirement. Each donor has expectations, rules,

regulations as well as what they expect to see with the

use of their money. For instance, in supported USAID (USA

Government International development wing) projects,

416


there are regulations termed “Allowable” or

“Disallowable” to regulate the grant execution. If any

one does an activity outside or beyond the set

parameters, the grant will not absorb that cost because

it is termed “disallowable” meaning that the implementer

rather than the grant will bear the cost. Depending on

the project document, certain things are permissible

(directly related to the project, as well as made in

America, “Buy America”) and expected while others are

flatly forbidden (e.g. fire arms, bombs, terrorist acts

etc) or allowable with prior consent from the funding

agency in exceptional cases (e.g. using an airline other

than a US airlines on international travel). Thus, grants

need to be meticulously handled ensuring that the laid

down regulations are adhered to. The project document

stipulate what type of agreement has been entered into as

project agreements are of different types. A cooperative

agreement entails substantive involvement of the donor

agency throughout the projects life (i.e. the donor has a

say and influence on project execution, sometimes even

interfere!) while other agreements give the implementer

leverage and freedom to implement without interference

from the donor agency as long as they observe the set

parameters. When managing a USAID grant, just bear the

following in mind with respect to project expenditure:

Costs should directly relate to the project. Remember the

417


acronym “NRA” meaning that the costs or expenditures must

be Necessary, Reasonable and Allocable to the grant. If

the cost does not fit into this structure, then it is

disallowable and keep away from it. In evaluating the

grant execution quality, these conditions will be borne

in mind and may lead to project premature termination or

even extension.

It is high time we transitioned. In the ensuing unit, we

consider why numerous companies and projects fail despite

employing many world class quality systems & strategies.

Case study 1

The Fall of Quest

Note: This case study is mainly based on the recent

troubles (1999) of a real computer manufacturer.

1997 was a banner year for Quest Computer Corporation, a leading manufacturer of personal computers. The company

surpassed $15 billion in sales, nearly seven times its

revenues in 1992, the year John Clarke took over as CEO.

Clarke is a hard-driving, no-nonsense leader. His vision

was to create a $30 billion enterprise by the year 2000,

but things were slowly started to crumble around him.

What once had been an open and productive atmosphere that

cultured teamwork, was now deteriorating under the

418


strains of political infighting, cronyism, and

allegations of sexual harassment.

In the eye of the storm was Samuel Anderson, vice

president of human resources. Anderson and Clarke worked

together in the eighties at another corporation before

Clarke came to Quest in 1992. Three years later Anderson

followed. Anderson immediately started using his

relationship with Clarke to influence business decisions.

Anderson also leveraged his ties to discreetly resolve

two allegations of sexual harassment against him.

Although the majority of senior executives and managers

believed Clarke was an extremely tenacious and good

executive, they also believed he was getting bad advice

and accepting it. Clarke, when asked about the sexual

harassment complaints against Anderson, replied, "People

make things up. There is no way of knowing. People spread

rumors." This and other incidents further strained

relations between Clarke and the rest of the senior

executive team. Busy with the task of running one of the

world's leading PC manufacturing organizations, Clarke

began relying heavily on three senior executives -

Anderson, Senior Vice President Tim Hunt, and Chief

Financial Officer Barry Lynn.

419


The rest of the team felt increasingly alienated. Over a

three-year period, starting in 1996, 10 top executives

left the company and following them were several

essential managers and supervisors. At the centre of this

exodus was the bizarre dynamics between Clarke and

Anderson. Many believed that Clarke empowered Anderson to

do things way beyond his role in human resources. For

example, Anderson had significant influence on changing

the organizational structure of the company, determining

what divisions ought to sell into what markets, and which

products should be sold through various departments. He

also took steps to drive a wedge between senior

executives, strengthening his position with Clarke while

inducing a communications breakdown throughout the

organization. Anderson had a list of people whom he would

constantly campaign against by advocating organizational

changes to lower their profile. Once he lowered their

profile, he would start a process of easing them out of

the door. As one executive put it, "Anderson was

instrumental in deciding which people to bring in and

which were no longer acceptable in the company."

Clarke's reliance on Anderson baffled, and angered, other

executives. Anderson was very close to Clarke, and he had

a huge impact on the business. Human resource

professionals usually do not play that kind of a role, as

420


they are supposed to try to bring the team together, but

all anyone saw Anderson doing was creating divisiveness.

Instead of working together to fine-tune a coherent

growth strategy, Quest's senior executive team became

disjointed and increasingly detached from the rest of the

company. Their inability to lead soon had an effect on

the morale of almost every employee within the company.

Two of Anderson's initiatives drove home the point of an

executive team that was out of touch with its workers.

The first initiative was the building of a multimillion-

dollar on-campus cafeteria that included reserved

underground parking for senior executives. Prior to that,

executives shared parking space with the rest of the

company's employees. The second initiative was the

increased security on the eighth floor of the corporate

building. Here the executives and several key managers

had their offices; even though every other executive

objected to the idea by arguing that it created a

hierarchical environment not conducive to a free exchange

of ideas with subordinates.

Anderson was at the centre of almost every bit of chaos

that existed within the company. Clarke denied that

Anderson had undue influence. "Every executive has the

same access to me," Clarke said. "I have always had an

across-the-board relationship with everybody. I always

421


maintained a high degree of equality. There was no

favoritism." Clarke also maintains that Anderson had

"very good relations with just about everybody." Anyone

who says otherwise, Clarke added, must "have an ax to

grind." Many former executives said they were reluctant

to complain to Clarke about Anderson because Clarke took

personal offense, as if he were being criticized, and

because they feared winding up on Anderson's "list."

The erosion of the executive team came at a very bad

time. Its main competitor was starting to grab big chunks

of PC market share by proving the viability of the

direct-sales model. When Clarke replaced the former CEO

in 1992, his aggressive price-cutting initiatives

reversed Quest's direction and led the company to the top

of the PC market. But now, Clarke was much less decisive.

As one former executive noted, "He was paralyzed by the

speed with which the market was changing, and he couldn't

make the difficult decisions." Clarke failed to see the

opportunity of the web. Its main rival was now selling

over $2 million worth of products per day over the Web.

In 1998, its rival surpassed Quest in desktop PC sales to

U.S. businesses for the first time.

The high turnover in the sales divisions led to

instability that caused several high-profile corporate

accounts to take their business elsewhere. As people

422


left, the performance of the company started to degrade.

Quest attempted to construct its own build-to-order

strategy by purchasing a rival company. This failed as it

had no vision to guide its direction.

Finally, things came to a head. Quest could not

significantly reduce distribution and manufacturing costs

or boost PC revenues. Huge oversupplies of inventory

adversely affected Quest. While its main competitors grew

at about 55 percent from the first quarter of last year

to the first quarter of this year, Quest's business fell

by 11 percent over the same period. By the end of this

year's first quarter, Quest's stock lost almost half its

value, and the company's first-quarter earnings fell far

short of analysts' estimates.

Then came the kicker, the forced resignations of both

Clarke and Anderson. The new CEO, Paula White, now has

the massive job of turning a lot of infighting rank and

file into a cohesive organization. The leadership

structure was severely damaged due to the large number of

people leaving Quest. Although a large number of

replacements were found, it is extremely hard to replace

the collective experience of that many people leaving in

such a short time. To help rebuild the leadership

structure, Paula White has charged the interim human

resource vice president, Samuel Wines, with rebuilding

423


the leadership structure. Samuel created a special

leadership task force team by hiring several new human

resource specialists. You were brought on as a training

analyst to be a part of that team.

© Clark, D. R. (2004), Instructional System Design

Concept Map. Retrieved April 1, 2009 from

http://nwlink.com/~donclark/hrd/ahold/isd.html


Visit the following site

http://nwlink.com/~donclark/hrd/ahold/isd.html and analyse

the case. What exactly was the central problem at this

entity? How could it have been remedied or avoided?

Why do you think Quest flourished?

What was the central problem in this organisation and how

can we relate this to project management?

How does this case demonstrate/illustrate the centrality

of effective and proper HRM?

What is your view about the HR function in this entity

was it too unduly powerful? Justify your answer.

Do you think one individual has the capacity to disrupt

and possibly demolish team dynamics? Explain your answer.

What lasting lessons do we derive from this case?

424




Case study 2

The Body shop International

This has been a dynamic shop network that has been lobbying various social crusades especially those on the

Environment. If one only heard about its activist works,

one would never imagine that the same entity could

possibly produce excellent products, whereas if one only

knew about the excellent products, one could not have

imagined that this was the same unorthodox, blunt, rough

and riotous shop! Yet both these attributes mystically

unite in this selfsame organisation!

For the body shop, it has meant changing all the time

depending on the social needs that confronted it. It has

been built around the robust principles of Anita Roddick,

whose ways have been dubbed eccentric but highly relevant

and profitable. Anita has had a passion for social change

and has successfully left her mark on the company work

culture. The Body shop has been an exciting and thrilling

place to work at because of the constant new challenges.

But who is Anita and from whence does she hail? What has

425


she done and where is she heading to next? What prospects

lie ahead of the body Shop in ensuing years?

Anita Roddick begun the shops in 1976 and developed them.

She, with the help of her husband worked together and

moulded the shop as they saw fit. Having owned a hotel

previously, they sold it to pursue other life long

desires before Anita begun doing a business based on

natural herbs. The herbs business mainly focused on skin

care, and thus attracted women. With time, people

developed confidence in the products and thus, the shop

picked up. It is now close to twenty years since the

first shop was opened and today, the shops are dotted

internationally on the globe. Its presence is mainly in

the UK but plans are under way to conquer more and new

frontiers. Although the body shop does not market its

products, quality does it for the shops.

But who is Anita exactly? Anita descends from Italian-

immigrant parents and has some hind exposure to business

although she never had any formal business training. She

got married to Gordon and turned their house into a

hotel. As earlier intimated, they sold it to pursue other

things. It was whilst in that state that Anita begun a

small shop dealing with skin care, using natural

ingredients. From one shop, the business blossomed into a

chain of shops that are a force to reckon with. Founded

426


on Anita’s strong principles of social good and

environmental protection, the Body shop has been so

successful capturing international attention.

But what has made the Body Shop tick? What has been the

secret behind the phenomenal growth despite unorthodox

business practices? For one thing, the body shops have

been a hive of activity, constantly changing with the

times. A lot of innovation takes place, is customer taste

sensitive, strongly social and environmentally conscious,

possessing appealing, natural and personal attention to

the customer, responsive to the current needs and

strategic in approach. In addition, the goods are of high

quality, the leader is daringly radical, possesses a good

franchising net work with a unique anti animal testing

stance. All these attributes have blended so well

together so as to boost the company success while defying

proven industry norms. Further, we assert that the most

important sources of this success have been many.

The first source has been the environmental protection

stand. Today, with the frequent talk on the uncontrolled

planet degradation, anyone raising a finger against this

scourge will receive a hearing. As such, the

environmental crusade has highlighted the body shop on

the international scenario. For another thing, the unique

and strong community contribution thrust is an asset. The

427


company believes that the company has a moral duty to pay

back, in some way, what is got from the community. This

stance alone is a powerful competitive advantage tool.

Still further, the head of this organisation, Anita

Roddick, is a robust, diligent and candidly outspoken

leader who can not be easily ignored. When she yells from

her tunnel, the world halts to hear her. In addition, the

ingredients used in the products are natural and do not

allow testing on animals. The use of the environmentally

sensitive methods receives a lot of applaud from all

corners of the world, thus the global acclaim given to

the body shops. It is a curious fact that the shops do

not advertise, but the ingredients utilised do the

marketing.

Anita has been the single most powerful force in the

company. Her management philosophies are excellent though

they are centred around her and are quite imposing. If

any will not toll the same line with Anita, they are

surely on the warpath with the iron lady. That not

withstanding, she is an asset to the company in that she

has led the company to a strategic position, etching out

a unique niche. Although there is a lot more competition

today, the shops continue to tower above rivals because

Anita has wielded certain potent attributes onto the

company culture. For example, the company is very

428


sensitive to environmental and customer taste change,

vibrant, agile, and responsive maintaining high quality

products. Further more, there is a lot of innovation and

ideas constantly flowing from Anita’s fertile mind. She

has brought about product changes, initiated projects,

research and collaborated with powerful NGOs to get

mammoth tasks and changes done. Single handedly, she has

resiliently and valiantly stood against the world even in

the face of major opposition from her own employees. For

Anita, dead orthodoxy is not relished but hounded out

through the window. Once she sees something and approves

it, she will unflinchingly charge like the Bull towards

the goal, of course minding that the business continues

to run successfully.

Obviously, there are many lessons we can learn form such

a dynamic company and individual. Firstly we learn that

if a company is to be successful in today’s hostile

business environment, it must be constantly alert and

adjust with the times. This means continuous improvement

of products, be constantly learning, be more sensitive to

customers, maintain a “small company” atmosphere in the

company, be agile, contribute to the community, and add a

“human face” to the company. Secondly, we learn that a

company must hire “Known quantities” as much as possible for

these will attract attention to the company. Not only

429


should these be known people, but also they must be

creative, robust, resilient and diligent risk takers who

will not mellow at puny attacks. Anita is the very

epitome of constancy. Thirdly, we must ensure that though

star players are preferred, the must not be allowed to

paralyse others. This is evident at the Body shop where

Anita is almost everything and no one dares cross her

path. This means that when she fizzles out from the

business horizon, the company sinks with her. An ideal

situation is to have a “pool” from which to tap leaders.

Anitas’ eccentric manoeuvres are uniquely good but their

sustainability is questionable. Fourthly, let it be noted

that the company must be agile, fluid, unbureaucratic,

flexible, customer sensitive and must provide that

‘personal touch’ to their business. Customers must feel

individually appreciated and noticed. Myriad companies

have staggered to the company graveyard because of the

loss of that personal and good quality speedy service to

customers. Fifthly, the company must maintain a clear

strategic mission that should, like the star that guided

the wise men, lead the company to its destiny without

much ado. Sixthly, the unique and unprecedented product

niche must be guarded jealously. Not only must this be

improved and expanded, but also the products themselves

must be improved continuously. The body shop is unique in

its social goals as well as in its use of natural

430


ingredients. Others are copying this uniqueness today but

they cannot attain unto its unique prowess. From the

afore mentioned lessons, we can clearly see that the Body

shop deviates widely from the regular business trends.

Although one’s hair stands on end when thinking about

this entity, yet a company can survive outside the norm,

as long as it reads the times well and acts at the right

time. Timing and the right moves are what count. Having

asserted thus, let us be quick to say that it is safer to

use the long tested and tried ways, though with a

strategic eye.

Looking at the way that the company has developed and

evolved over the years, especially in the UK, we have

reason to believe that the body shop has a bright future

though this will be hard won. The business world is

replete with companies that are moving towards the use of

the same natural ingredients that have hitherto made the

company have a strong uniqueness. The niche has scarcely

been neither challenged nor eroded. In the light of the

emerging threats, it is imperative that the company

relocates to a more sustainable position that will

strengthen the uniqueness. Among the many things it will

have to do it its quest to evolve into a better company

is to maintain and enhance its “personal attention” to

clients, its sensitivity and responsiveness to the

431


changing demands and tastes of customers out there. Above

all, the company must continuously be innovative, train

human resource to take over from Anita, and not lose

focus on its community contribution ethic. Now that the

body shop is confronted with the titanic task of

penetrating the American market, it must adjust its gears

very well because the issues it will face are

fundamentally different from the usual. For example, the

American consumer tastes will differ. Further more, the

big social concerns such as the environmental crusades

are not as hot issues in the States compared to Europe.

Added to the list of potential hurdles is the legal

environment, trade restrictions, approval criteria of

products by the American authorities, the difficulty to

recruit people with a like passion as those else where in

the body shop network and the threat from more apt “copy

cats”. One other concern is the age-old stance of not

advertising. On the American market, if a company will

not advertise, it will not be noticed and book a place

among the company graves. These and many strategies that

have eked triumphs in Europe may not carry the day in the

States. That notwithstanding, the Potential market is

there as long as the following are observed; Firstly, the

company should strategise, by initially carrying out a

market research and then looking for the best way to

enter the market. One way could be to produce some

432


exceptionally high quality products that can be given

free to some key clients for a start. Powerful policies

and structures that will ensure sustainability over time

must further support this strategy. We suggest that

initially, only one outlet initially be open and then

spread wings depending on the performance of the same. As

such, there must be an allowance for a pay back period of

say two years. This may mean running at a loss for a

while before breaking even. It would be wises that the

shop hires “known quantities” that wholeheartedly imbibe

the Body shop ethics and who will fearlessly champion the

entity causes. Alternatively, the shop could identify the

“Big” social issues on American soils, adopt them and

champion the same. Furthermore, the community

contribution must be elected carefully so that it is

relevant. Natives could be trained who will easily

accomplish all these. In addition, we think that the

Anita grip over the company must be modified to allow

more liberty for the shop mangers. Apart from

franchising, the company must now reconsider its stance

on marketing. In the UK, absence of direct marketing may

work, but the American situation is different, therefore,

due care must be given. It is true that what has made the

shops thrive all a long has been the risky ventures and

unorthodox methods, but this new prospect calls for

walking circumspectly lest failure dents the company

433


image. The legal environment as well ought to be watched

carefully and if possible, the best lawyers and

partnership/collaborations are sought. If an American

partner can be found, a partnership knot could be tied.

Lastly, the company must strengthen its niche by adopting

new strategies that will highlight the uniqueness of the

products. Topping those qualities should be the high

standards and usefulness of the products. The community

contribution must come in by and by though must be

highlighted in the mission statement too.

As Anita and colleagues peer into the future, what would

you suggest they do? Should they launch full throttle

onto the American market?

SourceBower, Bartlett, Uyerterhoeven, and Walter, Business

Policy: Managing Strategic Processes, 8th Edition, Richard

D. Irwin


What has distinguished the Body shop?

Would you classify Roddicks’ approaches to business as

ethical and regular?

Mention two critical ingredients that have contributed to

the Body shops’ success.

434


As the Body Shop prepares to enter the international

market, what advice would you give to its management?

What are some of the pitfalls and weaknesses of the body

shop? How can this be rectified before it is too late?

Revision exercise

Differentiate between a Project and Program

What do you perceive are the advantages of a program over

a project?

What does the word “Integrated” emphasise in an

integrated program?

What information does an organo gram give about a

program?

What is Operations Management and how relevant is it to

programs and projects?

Which influences the other in formulation strategy or

structure?

Explain the significance of a vision and mission

statement in an organisation.

“A Program equals the sum total of its projects under it

only.” Discuss this statement.

435


BibliographyBaker Larry & Douglass Merril, Time mastery Profile: How

to manage your time more effectively, Carlson Learning

Company, 1992

Baker Susan, Sustainable Development, Routledge, 2006

Bamberger Michael & Valadez Joseph, Monitoring and

evaluating Social Programs in Developing countries, World

Bank Institute, 1994

Brake Terence, Managing Globally, Dorling Kindersley,

2002

Burnes Bernard, Managing Change, FT Prentice Hall, 4th

edition, 2004

Buttrick Robert, Project Work out, 2nd edition, Pearson

Education, 2000

Campbell J David, Organisations and the Business

Environment, Butterworth Heinnemann, 2002

Clark, D. R. (2004), Instructional System Design Concept Map.

Retrieved April 1, 2009 from




436



Grobler Pieter et al, Human Resource Management in South

Africa, 3rd edition, Thomson, 2006

Heller Robert, Effective Leadership, Dorling Kindersley,

1999


Kakabadse Andrew & Analoui Farhad, Corporate Sabotage,

Jaico Publishing House, 2004

Langdon Ken & Bruce Andy, Strategic Thinking, Dorling

Kindersley, 2000

Maylor Harvey, Project Management, Pearson Education, 3rd

edition, 2003

O’hara et al, Global work, Institute of the Future, 1994

Peter Paul J, Certo Samuel C, The Strategic Management

Process, 3rd edition, IRWIN, 1995

Render Barry & Heizer Jay, Principles of Operations

Management, Pearson/Prentice Hall, 2006

Salton J Gary, Organisational Engineering, Jaico

Publishing house, 2003

Schroeder Roger, Operations Management: Contemporary

concepts and cases, McGraw Hill International edition,

2008

437


Sleight Steve, Moving to E-Business, Dorling Kindersley,

2001

Steger B Manfred, Globalization: A very short

introduction, Oxford University Press, 2003

Stevenson J William, Production/Operations Management, 5th

edition, IRWIN, 1996

Zambia River Authority, Project Noah’s Ark,

438


Unit 8

Aim

The aim of this unit is to train or equip the student

with case study analysis skills by dealing with different

case studies.

Objectives

By the end of this unit, the student should be able to:

Identify and note the key quality issues that have made

the entities succeed or fail.

Create new case studies from the local scenario.

Identifying quality in practice

This unit is devoted to case study analysis with a special emphasis on quality issues as documented in

recent cases. Most of these cases have been discussed in

different day to day text books and other media and would

439


therefore be a good practice point for the student. To

get detailed case studies, students are advised to

consult the source materials such as Bower and et al as

well as the local dailies. The internet is replete with

various case studies that would give the student more

practice. The author would further recommend that

students broaden their reading scope and attempt to build

live case studies as they see them in the world around

them. Thus, case study after case study is tabulated

which the student should read and attempt answering the

case study questions at the end of each scenario.

Case studiesCase study # 1

Ben and Jerry’s Homemade Ice Cream Inc:

Keeping the mission(s) alive

If one has heard of the Body shop’s strong social change

goal, then, the Ben and Jerry’s Homemade Ice cream

Incorporation will be a good reminder. The company was

incorporated a partnership comprising two long time

friends, Ben Cohen and Jerry Greenfield in 1977. It was

an immediate success and has advanced to be a powerful

No.2 on the ice cream market (as at 1990). The success

440


story is attributed to a number of factors, which we

endeavour to unravel.

From the outset, the founders did not design the company

primarily for profit making but rather with a strong

thrust towards social change. Their aim was to bring

about as much Community change and thus their policies

and values thus far has been directed towards that goal.

Since we know that the destiny of any entity is not

entirely in our hands, the Ice cream business blossomed

and has been moving from strength to strength as more

consumers get captivated by the delicious multiple

flavours on offer. The Company rests on very strong

principles that are worth noting. Firstly, the company

has a strong belief that the yawning earnings gap between

the top executives and a new entrant is immoral. This is

a sad but common phenomenon in America, and as such, the

company has endeavoured to minimise the discrepancy by

imbibing a “5 to 1” wage condition. This means that the

highest paid employee does not get more than five times

the lowest paid, thus minimising the disparity. Secondly,

the company has from the beginning emphasised quality and

timeliness of service. By this, the company endeavours to

continuously improve its Ice cream quality, flavour and

packaging while in the same breathe ensuring that the

customer is treated as king, with maximum satisfaction.

441


As such, all the employees take it as priority to serve

the customer first and also keep true to their word.

Thirdly, this high quality and speedy service hallmark

has turbid the company to a strong unique position where

all other imitators find difficult to copy. Further more,

the strong social change outlook of the company marks it

further from the rest. In a nutshell then, the company

has beaten out a clear path all these years having upheld

its social obligations as well as the internal ethics

such as the “5-1” wage condition as a beacon. In this

twofold thrust, the company has prided itself.

Having laboured to show that the company built by the duo

is very strong, we hasten to say that not all has been

rosy lately. Like any other growing company, the entity

has been encountering hurdles. The first has been that as

more people have been hired over time, not everyone

espouses the ancient core values. Since the company is

now more complex, profit making and possesses a powerful

presence on the market, the new employees possibly do not

whole-heartedly imbibe the values. While some appreciate

the said values, others question their relevance and

usefulness. Secondly, many, including the outgoing CEO,

Chico Lager, feel that the company must throw off some

“obsolete” relics which tie down the company and impede

further development. They argue that the company is past

442


the napkin stage and must modernise some values,

especially the “5-1” wage condition. They (opponents)

argue that the company can neither retain nor attract

professionals due to the unattractive pay and

compensation. Why should one sacrifice a better wage for

a lesser paying job where one is even over worked?

Thirdly, the “5-1” condition opponents further argue that

the company is in a competitive environment where only

the best must be hired or else the company sinks. From

these views, we can clearly see that the company was

divided into two camps, one with Cohen (adherent to) and

Lager (opposer of) on the other. This was the turbulent

atmosphere in the company that Chuck lacey was soon to

take over in the ensuing few months following the

September 1990 final decision making meeting. His

interest lay in the fact that he was the one to steer the

ship henceforth. As such, he had to be most objective and

not appear partisan.

But does that mean all the “obsolete” values of the past

have been overly and pointlessly imposed? Nothing could

be further from the truth! To the contrary, these values

are the ones that have won battles for Ben & Jerry all

these years. For instance, the company has been powerful

and competitive from the beginning because of its unique

social change policies. By that token, some people have

443


been buying and popularising their products. We must go

further to assert that the non profit ethic in those

earlier days was excellent in that the employees knew

full well that theirs was more of a service than a wealth

amassing venture. Thus, this has meant less pay, fewer

over head costs and lower price but high quality products

to the customer. The consumers have not only been

continuously satisfied but have also felt they were

contributing to a worthy cause. But like they say, “what

goes up must come down”, Ben & Jerry’s Inc’s weapons of

yesterday are blunt and must constantly be revised

ensuring that they remain current and strategically

relevant. This may mean modifying some traditions or

discarding some practices as the case may be. The

difficulty with the present crisis at Ben & Jerry is that

the points of contention lie at the very heart of the

company, without which, one of its distinctives will be

lost. This will weaken the company “punch” and become

like the rest. In our view, Chuck Lacey must approach

this scenario very cautiously, taking to heart the pros

and cons. He must be seen to be objective, though forward

looking. If it means changing the points of contention,

the reasons must be fully furnished and the history books

re-written. If the present status quo is maintained, then

alternative ways must be found which will attract and

444


retain staff because a high employee turnover in itself

reflects badly on the company.

In a nutshell, Chuck lacey must be objective, strategic

and wise. When the decision is made, he must be ready to

go full throttle in implementing the decisions, all the

time keeping an eye on the market. A divided house is a

sure recipe for disaster but also, we must acknowledge

that change is resisted at all costs, especially if it

impinges on time honoured hallmark values. That

notwithstanding, we are confident that the Ben & Jerry

will surmount all these hurdles with agility and hurtle

towards a brighter tomorrow!

Source

Bower et al, Business Policy: Managing strategic

processes, 8th Edition, Richard D Irwin.


What is the secret of the Ben and Jerry

partnership/company?

What would you comment on its policies/philosophy?

How can things be improved in this global context?

Suggested case study question answers

445


What is the secret of the Ben and Jerry

partnership/company?

What would you comment on its policies/philosophy?

How can things be improved in this global context?

Case study # 2

Effective leadership

Leadership has now taken the centre stage in Management

circles as this has proved to be more effective mode to

unleash the latent potential within fellow team members.

As opposed to the now obsolete way of the traditional

“Bossy” kind of management, the latest trends of

leadership permeate the organisation with a fresh

fragrance of new pragmatic motivational ethics. This is

what the book, “Effective Leadership” by Robert Heller

seeks to address.

446


Without much ado, this small book of only 70 pages

summarises what one needs to know about effective ways of

leadership. The said book, divided into three sections,

presupposes that one is already a leader and seeks to

sharpen his/her leadership prowess, hence the title

“Effective Leadership”. Having asserted the above, let me

hasten to say that the person first encountering the

whole subject of leadership will also grasp a clear

understanding of what the principles of leadership are as

the book defines what leadership is in the introduction

and then progresses to deal with the whole complex web of

learning to lead, leading others, improving effectiveness

and inspiring excellence in others. But wherein does

effective leadership consist? What exactly is effective

leadership?

Leadership is simply defined as the ability to influence and inspire

others towards a goal. Effective leadership goes a step

further than the aforementioned definition. Heller

accurately defines it as “the key to truly effective leadership lies in

mastering a wide range of skills, from implementing and administering

processes to inspiring others to achieve excellence”. As can be seen,

this definition states that for one to be effective, they

must have a wide knowledge in many a field and be able to

make the most of every opportunity that presents itself.

The leader, among other things, must be visionary and Effective leadership, Robert Heller page 5

447


able to inspire confidence in others by being a

challenge, trusting others, being a mentor, a coach, able

to motivate via compliments and rewards, able to seat

with subordinates and give an empathetic listening ear.

The said leader does not content him/herself to know

about the general things regarding the workmates but goes

out of his/her way to know the back ground details which

might affect out put as well as the best ways to delegate

and build a team spirit among workmates. This may well

mean taking time off to visit team members on the job, at

home, in a social gathering, having informal chats over a

drink or cup of tea as well as going for workouts

together after hours. This has the effect of reducing

suspicions and prejudices that people harbour. Once

people feel valued and needed, they open up and are

willing to take on bigger challenges as well as risks to

innovate and promote the cause of the organisation rather

that remaining indifferent and aloof. They “own the goal” as

it were, due to the effective leader’s presence.

The effective leader is systematic, highly organised and

focused on what he/she wants to achieve. S/he sets

benchmarks of quality, time frames and is determined that

others catch the ropes as well. This further means that

the said leader is continuously willing to listen and

learn from others who ever they may be (Whether young or

448


old, subordinates or superiors etc.), gains experience by

the day, and makes every effort to master own function as

well as others’ functions. The time has arrived when one

must be multitalented and has a good working knowledge

about other disciplines. Gone are the days when the

Manager knew next to nothing about Marketing or finance,

for example. The 21st century leader must have a firm

grasp of all the areas in order to confidently lead.

Apart from the afore mentioned points, the leader must

ensure he/she is able to detect strengths and weaknesses

in others and positively facilitate the strengthening of

the positive sides while correcting the weak sides.

Having done the above, in the second section Heller

hurtles along to deal with the preparatory work to

leadership, which culminates into forming teams over

which the selfsame leader, exercises authority in a

prudent and efficient fashion. Under team work, the

issues of delegation, communication, decision making

(through discussions and brain storming sessions

initially), goal setting, analysing problems and giving

support to staff in agreed areas of implementation are

dealt with. The last section of the book talks about the

all important areas of motivating others, establishing a

vision, generating ideas, ideal management style (in this

case, open management), boosting achievements and

finally, being competitive with respect to the outsiders.

449


This competitive advantage is realised by first treating

the internal customers Employees) well who in turn will

go out of their way to treat the external customer most

diligently and courteously. Remember, the customer is

king! This approach to business works wonders for the

organisation in that it produces product loyalty and woos

many more to the company products. High quality and low

prices cannot be over emphasised. Furthermore, the

effective leader must develop an apt acumen to network,

identify and exploit opportunities through taking risks

as well. SWOT analysis and frequent market researches are

critical. Further more, the leader must be bent on

success and all out to win. As we begin to enjoy the

book, it suddenly draws to a close having clearly scanned

over the whole subject spectrum excellently. We therefore

heartily recommend the perusal of this book by those busy

executives and indeed, those that would aspire to be

effective leaders of tomorrow because this book is a

classic tool, dealing with the very heart of leadership.

In our estimation, the book is destined to be a best

seller and is a must for every leader worth the salt!

Source

Heller Robert, Effective leadership, Dorling Kindersley,

1999

Case study questions450


What, in your own words is Leadership and how does it

differ from management?

How does leadership impact of organisational quality?


What, in your own words is Leadership and how does it

differ from management?

How does leadership impact of organisational quality?

451


Case study # 3

Marks and Spencer: Sir Richard Greenbury’s

quiet revolution

Today, almost no fashion and quality conscious English person is ignorant the St Micheal brand. It is a brand that

has stood the test of time and has continuously been

improving. Half the time, consumers do not bother to find

out from whence and why this brand exists. A brisk

sketchy background is handy at this point.

The origins are simple and soon told. Two fine

gentlemen, Michael Marks and Thomas Spencer opened the

first shop as a partnership in 1894. Michael was a polish

Jew while Spencer was probably Scottish. Upon agreement,

they established their shop that sold small items costing

very little and thus, their quaint marketing heading

“Don’t ask the price, its one penny.” It was one penny indeed

because the store ordered in bulk and in turn sold the

high quality goods cheaply. This attracts scores of

clients. As time went on, the stores gained a reputation

of stocking very high quality but low cost goods. This

has been one of the most powerful competitive tools that

has marked out the company from the rest. Michael and

Thomas worked tirelessly until the chain stores begun to

452


be dotted all over the United Kingdom and lately has been

penetrating further into other international markets such

as the USA, Canada, Eastern Europe, Asia and Hong Kong.

These new frontiers present fresh challenges seeing that

the environments are totally different from the UK

setting where the company’s hub rests. But that is not

the end of the story, the company is now run by some

descendants of these great pioneer entrepreneurs having

taken over the mantle when their kinsfolk withered away.

It is interesting to note that the next generation of

Directors included, Simon Marks, son of Michael, and

Israel Seiff. These two married each other’s sister

further cementing associations. With the passage of time

however, more professionals were hired except that the

system did not give them leeway to introduce new

innovations due to the strong bureaucracy. Sadly, all the

brilliant ideas fell flat to the ground. That explains

why when Sir Greenbury was appointed, he turned this

gloomy picture right round. Under the leadership of this

man, the shops have blossomed having a wide product range

especially men’s clothing and women’s undergarments. The

Chain store also deals in food as the other product,

representing 40% of the total group turnover.

But what has been the secret of the Marks and Spencers’

success? A number of reasons come to the fore but the

453


following reasons will suffice. Firstly, the shops have

maintained a customer sensitive approach. In saying this

we mean that the Chain store has ensured that the

customer remains king, calls the shots and gets maximum

individual attention. Secondly, there has been a

deliberate effort to ensure that the said customers get a

speedy and high quality service. Efficiency is the word!

Parameters have been inserted which ensure that the

customer is not inconvenienced at all. Thirdly, but

closely akin to the second point is that the shops are a

convenient place to shop because of the wide product

range that provides everything under one roof. Flexible

shopping hours is yet another great convenience.

Fourthly, the shop has been strategically placed,

exploiting the latest technology so as to keep ahead of

the times. The shops anticipate customer tastes and go

ahead to supply the goods. Further more, because of the

bulky nature of the stores’ orders, they bargain and get

concessions, which significantly cuts costs and enables

lower prices to the customers. In the sixth place, the

internal working environment is excellent! Having cut

down on staff, Greenbury successfully infused an

excellent teamwork spirit where the employees work

together like ants to achieve a goal. They corporately,

diligently and constantly make the most of the every

opportunity to the extent that there is mutual trust and

454


interdependence among them. Each person is valued as a

necessary part of the team, working as an organism. It is

worth noting that the company cares for the welfare of

employees knowing that the ‘internal customer’ must be

satisfied first before the outside. In keeping with this

belief, employees are individually attended to. As such,

the said workers put in their best all the time and will

stick with the company to the end. This loyalty manifests

its self in the way that the company image is jealously

guarded and the “restless present product calibre

dissatisfaction”. Traditionally, the company has had one

of the best compensation policies, being ardently devoted

to its staff. In addition, the company rewards those that

excel. This further motivates employees to excel in their

calling. These salient points are the ones that have

largely led the triumphs of the past for Marks and

Spencer. Let it be known also that effective

communication within the firm has been highly valued as

it has kept the stores marching as ‘one man’ with a

similar goal and aspiration. No longer does top

management merely dictate decisions top-down but rather,

the employees are made aware beforehand what is going on

and to some extent given leeway to suggest some valuable

ideas. Greenbury opened the door to “freedom of expression”.

Management is now participative. Hitherto, decision

making was the private preserve of only a few. If we were

455


to be brisk about the key aspects of the Marks and

Spencer strategy, we would simply say that the St.

Michael brand has been jealously guarded and constantly

improving. If people come across any St Michael brand,

they will automatically assume that it is of the highest

quality and worth the price. The said brand has been

consistently of high quality but low price thus

commanding the huge product loyalty.

Having described the key areas that have made M & S tick,

we now proceed to examine the mastermind behind all these

innovations-Greenbury. As earlier intimated, this

gentleman has done a lot in refining and shaping the

entity. His major strategic moves have been the building

of partnerships with suppliers. This entails restricting

the sources of materials by entering agreements where

periodic audits are conducted by the M & S officials to

ensure that the supplying company’s facilities and

materials meet the agreed high standards. In these days

of International standards (ISO), perhaps these companies

must subscribe to and be certified by ISO. Furthermore,

the shops which hitherto (until 1985) dealt strictly with

cash or cheque have introduced financial services where a

client can buy goods using some kind of credit card.

Since world trade is rapidly hurtling towards credit, it

was necessary to keep abreast with the trends. The card

456


method now accounts for over 20% of all M & S sales. In a

bid to expand the market, the shops have made frantic

efforts to spread locally and internationally via

franchising. Hitherto, on the local scene, the shops were

located on the main streets and in major towns but now,

there has been a shift to open outlets in the out skirts

and the smaller towns previously untouched. This is where

the greatest growth potential lies. While the other

competitors confine themselves to the big towns, Marks

and Spencer has strategically been spreading its

tentacles to the utmost parts of the UK and beyond.

Internationally, there has been some success recorded

though more could be done. As earlier intimated, the

shops are sparsely doted over the European continent and

other parts of the world. We must also hasten to say that

Greenbury has brought about a ‘minimum inventory’ culture

where very little stock is kept in the stores but ordered

and supplied to customers in the shortest time frame.

This just in time approach has significantly reduced

overheads and thus enabling the company to keep its

product costs and prices low. In addition, there has been

an expansion of product ranges covering the entire family

and with high quality long lasting clothing. The

deliberate effort to strengthen the brand name as well is

worth noting. Furthermore, Greenbury has scored a first

in dismantling the old bureaucracy that firmly clutched

457


the entity in the grip of family control, and inflexible

standards. Although in the past, this management style

may have succeeded, time is ripe to strategically change

towards a fluid and agile company. Flushing out

bureaucracy is the only way to survive in the hotly

competitive environment or else risk running aground. The

ascendance of Greenbury to the helm has been a blessing

to M & S, though more reforms are awaited.

As the company moves to a more complex and fundamentally

different international market where peoples’ views and

tastes are different, M & S will do well to take heed of

the ensuing points, although international expansion is

inevitable, the company must move in slowly and

meticulously. Initially, a skeleton manpower will do,

accompanied by a lot of marketing and good high quality

goods. This initial entry presupposes that the market has

been studied thoroughly to ensure that the customer needs

and wants are ascertained exactly. Market survey and

research are crucial at the initial stages, lest the

resources be wasted. Another option is to appoint a local

agent who knows the market very well and has a powerful

distribution network as well as many outlets for the

goods. This also means using local but high quality

materials that will be appealing and attract the

customers, thereby creating more product loyalty. A

458


consistently high product image should be the hallmark of

the entity abroad as they have been in the UK. Having

produced classic goods, it is also imperative to ensure

that the products are well positioned on the market so

much so that the same are differentiated from the rest.

One way is to have these selfsame goods find shelf space

in those agency shops spread across the country. Another

way is to have a uniform international brand except that

the local conditions are taken into account. In an

extreme case, the M & S must merge (In those particular

countries) with some local company possessing an

extensive outlet network so that the products have a

larger surface area of being sold. Should this chain

store take to heart the above, as Greenbury has aptly

quipped, “In the 1990s…the customer is not only king but dictator”, we

are very optimistic that the stores will surmount all

hurdles with greater agility, and then sail to zenith

glory!

Source:




What are your views on the St Michael brand?

459


What is the one factor that has made St Michael a house

hold name?

How can the Marks and Spencer improve its profitability?


What are your views on the St Michael brand?

What is the one factor that has made St Michael a house

hold name?

How can the Marks and Spencer improve its profitability?

460


Case study #4

ABB Deutschland

The Asea Brown Boveri (ABB) company is an entity that

suddenly appeared on the scene. In a sense, the said

company already existed as two separate companies, Brown-

Boveri (BBC) and Asea, but only merged on January 4th

1988. Hitherto, these companies had been fierce

competitors but secretly merged to form an even more

formidable force. The surprise announcement on January 8

shocked the world because this was the most unlikely

marriage of all time!

A brief background of the two companies will be handy.

Asea is Swedish in origin having been founded in 1883 and

headquartered in Vasteras and its strength lay in the

technical competence. For many years, it had been

consistently successful until it plunged into a strategic

miry bog in the seventies, its strength became its

461


weakness. Asea had become arrogant, unresponsive to the

market, sold at a loss and was crippled by the huge

bureaucracy at HQ. But a turning point came in 1980 when

Mr Percy Barnevik, the first none engineer CEO, was

hired. He did a tremendous turn around job and towed the

company back to safety. He did this by eliminating

losses, internationalisation of the company, establishing

profit centres and dismantling the bureaucracy. This was

a hard but necessary task that saved the day for Asea.

As for the Brown Boveri, the story is slightly different

in that the company was not financially on the rocks but

the problems that engulfed it were that of in fighting

for superiority emanating from the strategy earlier set

by the founders. The company founded in 1891 by Charles

Brown (an English man) and Walter Boveri (a German

national), also boasts of high technical expertise,

although less diversified relative to the Asea. Over the

years, the company experienced rapid local growth and

international expansion except for a few dry patches

during the world economic recessions of the 1930s. The

demand for the quality technical products propelled the

company into further profitability although this was

curtailed after the second oil crisis. It was suddenly

confronted by declining demand, increasing competition

and the heavy leaning on one core competence that ceased

462


to be strategic. The highly focused strategy of the 1960s

and 1970s backfired by 1980. But what was this strategy,

if we may ask? The strategy was that the company was to

produce high quality goods and market them. The company

adopted a “Think globally but act locally” approach wherever the

company spread its wings. The chief reason was that each

market was unique and that the people on the ground were

the ones who understood the market exactly. As such, each

subsidiary was locally autonomous and managed by local

nationals though owed allegiance to the holding company.

This strategy initially worked very well in that the

company knew and handled the market well having

understood the local tastes, habits and was viewed as a

indigenous company. This in itself was a powerful

competitive advantage tool fostering market expansion.

Things began to change when the autonomous subsidiaries

developed and clashed in the same market, though coming

from different standpoints. The company presence was

largely in Germany and Switzerland. Fierce competition

ensued to the extent there were squabbles between two

subsidiaries! Although cooperation was verbally

advocated, mere lip service was worsened by the

interventions from the Princes who opposed any attempt at

implementing the overall company ideals. This is in

keeping with the old adage “old habits die hard”, clearly

shown by the business unit independence that still

463


carried the day. This mess was a direct result of the

local autonomy which, in this case resulted in disaster

as the subsidiaries outgrew their local market and

ventured abroad where they collided. None was willing to

bow out of the race. In the end, there was duplication,

waste of resources and inward looking so much so that the

company ceased to respond to the customer needs and by

that token, experienced stagnation in market growth. As

though that were not enough, the German subsidiary, on

account of its size was unwilling to bow to the head

office whose sales were lower than it. Thus, the

relationship between the two subsidiaries became

difficult to manage. Each was hurling sand in the others’

eyes until the merge took place. Now that all is in

place, we anticipate that their profitless squabbles are

a thing of the past, having been dealt with in three

ways. Firstly, the new holding company has decided to

standardise products so that they are the same cost,

packaging and quality in the whole market. Secondly,

there has been a move to reduce on the hitherto extensive

product line. This will ensure concentration on a

narrower range that is by far more qualitative. Thirdly,

the company has worked out a framework so that the

duplication and wastage of resources is eliminated. This

will also add to the strategic positioning of products as

this will eke out a niche for the brand.

464


The developments that took place on January 4th 1988 and

the subsequent meeting at Cannes caused a stir and raised

more surprises in peoples’ minds. The said meeting

basically dealt with four issues, the first being on

strategy, then on organisation, followed by behaviour and

lastly on financial targets. Each of these were crucial

but it is worth noting that these goals were equally eye

catching as they were not expected. For example, the

declarations by Koerber on the 1991 DM 500 million profit

goal and the fact that power lay in the highly focused

strategy akin to the defunct BBC were revolutionary

statements. If we were one of the executives from

Mannheim, we would have been puzzled and also had a lot

of explaining to do back home, especially looking at how

our sister companies had been at each other’s necks.

Further more, we would have trouble convincing my

subordinates that the rivalry of the past was over and

that we had to join hands with our “Brothers and sisters”

across. We would have had to reorient them to the fact

that the times had changed and many things were to change

as a result. In the new setting, the goal is one, though

the decision making, to some extent, to be decentralised

and that all subsidiaries henceforth had create service,

customer and profit centres with an eye towards the

overall corporate goal. In addition, the organisational

changes were equally shocking because the head quarters

465


would be at Zurich with only minimum staff. This meant

some would lose jobs or be deployed. Explaining all these

changes would take time because change is always resisted

especially the sort that threatens to unleash job losses.

What my perception about the apparently shocking reforms

is that it entails more work, quality, customer focus,

speedy service, continuous improvement, “reading of the

times” and frequent innovations. No longer would we

merely boast about “quality attracting customers”. It is

time to be outward looking and also to slay the evil

suspicions and rivalry that have plagued the past

companies. It is also high time to look out for the

opportunities that have hitherto eluded the company while

it focused its eyes inwardly. Time and energy wasting

hereafter are relics of the past and are relegated to the

company bone yard.

Obviously, the Mannheim contingent had expected that

their already much maligned highly focused strategy would

be bullet riddled but alas, it was hailed! The reasons

for this strategic choice by Barnvik is because he

perceived, and correctly so, that once a niche has been

eked out, it is difficult to replace, let alone rebuild.

That which has taken years to establish, the good will

and the excellent brand name can not simply be thrown to

the winds but rather be guarded jealously. As such, we

466


think that the wise eagle eyed Barnvik discerned well

when he made that particular strategic choice, as no

other better alternative was available then and now. The

chosen path of electrotechnical and other related areas

was excellent. The cutting down on staff, costs and the

closing down of some unprofitable subsidiaries were all

very difficult, painful but inevitable decisions. Thus,

having synchronised the two companies to form the

formidable ABB, we can comfortably turn to the other side

of the bed and sleep soundly for a while until the next

strategic planning time!

Source:


processes, 8th Edition Richard D Irwin.


What do you think about the BBC and Asea consortium? Was

it a wise move after all?

How best do you think ABB should have responded or

crafted its strategy problems and integration?

What is the central success key factor for the ABB?


467


What do you think about the BBC and Asea consortium? Was

it a wise move after all?

How best do you think ABB should have responded or

crafted its strategy problems and integration?

What is the central success key factor for the ABB?

Case study # 5

The Kentucky Fried Chicken (Japan)

Limited

468


Getting started in a foreign new market can be a

nightmare. This was the experience of the Kentucky Fried

Chicken in Japan, where their products were not

appreciated until certain unorthodox methods were

devised. Back in the USA, the fast food sold like hot

cakes but in Japan, it had to take the likes of Loy

Weston and Shin Ohkawara.

But who are these maverick individuals? From whence do

these folks hail? Loy is American and has vast experience

in the Far East, having laboured in Japan during the

Korean War. Weston had been intrigued by the oriental

culture and studied it thoroughly before returning to the

States. In many ways than one, he was the right man for

the job. On the other hand, Ohkawara is native Japanese

and has excellent local contacts. He too has vast

experience having worked for the giant printing firm, Dai

Nippon of Osaka. The pair is simply marvellous when

working together.

For a long time, the Mitsubishi Company had desired to

popularise chicken sales in Japan but had had problems.

As such, the said company approached Kentucky Fried

Chickens (KFC) with a view to start up a partnership in

Japan. KFC willingly obliged as they were planning

further international penetration. The only problem that

confronted the partnership was the lack of the right

469


human resource, which was solved when the above mention

duo were hired. These were valiant men equal to the

mammoth task.

Initially, as earlier intimated the Fried Chicken shop

went in with the all time popular American dish and menu, which

to their surprise was a near disaster. The local people

preferred other dishes! For the Natives, fish and not

chicken was the meal! After several dismal attempts, the

duo devised survival strategies. As would be expected,

cash was the need of the times. KFC International came to

the aid and got the KFC Japan on its feet once again.

Weston and Ohkawara figured that their only survival

strategy lay in the innovations that met the local needs

best. As such, they introduced some local foods like fish

on the list, though not formally approved by head office.

This innovation proved extremely successful because the

locals loved the taste, service and quality of the food.

In a short time, KFC Japan begun to blossom and opened

other outlets as the demand grew. Today, KFC Japan is a

shining example of a KFCI outlet that has adapted to the

local scenario and excelled.

But as expected, the apparent independence of KFC Japan

was not well received by all concerned stakeholders at

KFCI. Their arguments run as follows: firstly, the added

dishes are not on the list of the KFCI products

470


worldwide, why should KFC Japan be unique? Secondly, some

feel that the shape, size and the design of the kitchens

in Japan are not akin to the standard KFCI allowable. The

Outlets in Japan are slightly smaller and slightly

crammed together. Thirdly, the quality of food and the

place where the food is prepared is not to the KFC

international standards, although may be acceptable by

the local standards. Fourthly, the apparent disregard of,

and hostility to the KFCI by the KFCJ management irks

many. KFCJ wilfully refuses to neither obey nor implement

uniform standards and also questions every suggestion

that comes from KFCI. Quality standard auditors from KFCI

also have a tough time with KFCJ. This situation has led

to a situation where KFCI is seen to be interfering with

local operations worldwide. In general, KFC is not

managing its international operations well because of two

reasons. Firstly, for many years, the head office

neglected the international operations and let them run

independently as well as fend for themselves. They grew

like ‘wild grass’ with little or no outside interference or

guidance. How then, can HQ suddenly begin issuing orders

at this late hour? Secondly, though closely akin to the

first point, the HQ has not effectively communicated with

the subsidiaries the new strategies. Having had such a

weak and fragmented background, there is need to come in

slowly while explaining the new approach. The top

471


management must be sensitive to the unique views of each

KFC outlet because the new and excellent strategies if

insensitively and wrongly applied will lead to another

disaster. So far, the KFCI has handled the situation

badly.

It must be realised that although international

uniformity is required in multinational companies,

certain standards are not applicable in some cultures,

although the principle remains the same. This scenario is

what obtains in the fast food franchising business and

demands organisation, strategic vision, financial muscle,

high quality fresh food, speedy service, wide menu

selection and knowledge of the local cultural traits.

Unlike the other products, food is very sensitive and

affects the very foundations of some one. It takes time

for one to convert to new foods, especially if they are

exotic. That is what confronted KFCJ. Talking about these

impediments means that the Kentucky Fried Chickens must

alter its strategy to suit the prevailing local

circumstances. In as much as a uniform international menu

is desirable, room must be given for the local KFCs to

add the perceived delicacies, of course bearing in mind

certain principles. Firstly, these ‘offshore’ outlets

must maintain the highest hygiene standards that cannot

be faulted either locally or internationally. This calls

472


for more accurate planning ensuring that minimum stock is

kept thus lessening the mass destruction of the food,

after specified time limits. Secondly, The Company must

“think globally but act locally”. This will entail still

delegating some muscle in the local management to make

local strategic decisions, of course in consultation with

the HQ. Effective communication is crucial prior to any

implementation of plans. The Dick Mayer ‘stages theory’

of country management is plausible because it is

progressive and fosters better overhead management. The

three stages advanced were the following:

1. The entrepreneurial stage where there is a lot of

managerial orientation. This needs goal-getters like

Loy Weston. At this stage, very little bureaucracy or

inflexible control is applied. This is at the initial

stages of foreign market penetration.

2. The second stage involves the involvement and

appointments of local baronies as management. This

ensures that the same champion the cause locally and

help the natives to accept the company easily.

3. The last stage is marked by the appearance and hiring

of professional managers who run the company

henceforth. This has been the stage at which KFCJ has

been at daggers drawn with the HQ. Professional

Managers are generally viewed as strategic thinkers,

473


objective and accurate observers, who can easily read

the times and ably anticipate trends. In a nutshell,

the professional managers are long term planners, as

their plans are sustainable.

By all standards, this approach is fine as long as it

still remains conscious of the unique local needs. If the

above management proposal is anything to go by, then it

means that the KFCI management must change and standards

set which must be imbibed by all. As earlier intimated,

the background notes about KFCI are not plausible, but

time has come when the house should be made orderly

again. To achieve this, patience, training and much

discussion has to go into it. Let the lessons learnt from

the past experience serve as a beacon to avoid a similar

mishap in future. This means KFCI getting involved from

the initial stages all the way through to the maturity of

the same outlet. We have reason to believe that present

hostile reaction from the foreign field is largely due to

the past neglect by HQ, much like how a child would react

to a long absent parent who suddenly appears issuing

marching orders!

This brings us to the question as to how to handle the

present independent minded staff like Loy Weston. Though

he has been elevated to Vice president for the North

Pacific, he still is viewed as obstinate. In many ways,

474


the hot criticism is not justifiable for the following

reasons; Firstly, he was made that way by the company,

when they did not support nor nip his unorthodox

tendencies in the bud. As such, he is merely acting

consistent with the past culture. Secondly, care must be

taken to recognise that Weston is a goal-getter and by

that token has certain strengths that others do not

possess. Further, he has a thorough knowledge of the

market, tastes, and the culture which no other person

from the West may possess. His vast experienced is

unequalled as well.

Thirdly, let it be noted that Weston is a “known

quantity” in the north Pacific as well as all the Pacific

rims of the Far East. This goodwill alone should make

KFCI tread carefully lest they lose some market. Believe

it or not, some people’s presence on board speaks

connections and quicker market triumphs. Our suggestion

is that Dick Meyer should directly talk with Weston

rather than the arm chair criticism tactics he has

employed hitherto. Weston must feel valued, respected and

saluted for the excellent feats he has thus far achieved

and then reason with him about the new strategies. Let it

never be forgotten that Weston has studied some law

privately, and so, he is bound to react eccentrically if

not diplomatically approached. Care must be taken to

475


ensure that KFCI is not merely reacting with an

individual rather than a wrong principle. We say so

because the criticism seems to be aimed at an individual

rather than a practice. Having laboured to table the new

strategies, he must be gently told to choose whether to

tow the same line or leave. Past follies must be

acknowledged and then the new strategies asserted.

Alternatively, Weston could be moved to new markets where

penetration is needed. He may not easily countenance this

frequent shuffling though! Lastly, he could be recalled

to head office as one of the Directors so that he can see

the dilemmas. If still unyielding, sadly, KFCI must part

with the man, for the 21st Century manager must be

learning all the time and flexibly change with the times.

This painful decision must be arrived at after the KFCI

has done a critical self-audit. Could it be that the

internal system is faulty?

Having cleaned the house, it will now be possible to

spread the wings wide, flap them and then fly to success!

Source:

Bower, Bartlett, Uyterhoeven, Walton. Managing strategic

processes, 8th Edition, ISBN 0-256-115191-5) Richard D

Irwin.


476


What do you think about KFCJ’s strategy?

Is Weston the best person to manage this international

assignment?

What do you think about their (Weston and colleague)

innovation to deviate from the standard, was it a

compromise of quality?

Is Weston worth retaining on board?


What do you think about KFCJ’s strategy?

The strategy looks great given the context but must

continue to be refined because of the many dynamics in

the business environment.

Is Weston the best person to manage this international

assignment?

I think so though he gives one some fright making one’s

hair stand on end. But one thing is sure, Weston knows

his job and is a good initiator of business where others

477


would have lamentably failed and embarrassingly returned

home.

What do you think about their (Weston and colleague)

innovation to deviate from the standard, was it a

compromise of quality?

They are great guys. Leaders take risks and in this case,

they read the times and acted although ultra vires in

some way. Each context is unique and demands different

strategies which they did. As for quality, well that is a

talking point. There is need to keep the quality high but

the parameters also must be contextual in some instances.

If that is not possible, use the same high standards but

make them relevant to the given context.

Is Weston worth retaining on board?

If he is critical to the continued success of the entity,

it may be prudent to keep him while grooming another to

eventually take over from him. Drastic moves may hurt the

company.

478


Case study # 6

The Harvard Business school

In 1908, the Harvard University opened its Graduate

Business school doors for the first time. Never will

those earlier days be forgotten because this long overdue

school of business was as critical at that time as it is

now. When President Eliot sanctioned that it be opened,

his decision was for all time in the sense that a myriad

have benefited from that decision. Although the move

largely came as a result of complaints from the industry

and the perceived need of the times, it was high time to

introduce a course that was dynamic, relevant, flexible,

informatively analytical, high quality and yet remaining

a business program.

But what exactly caused Eliot to create this program? It

is a curious fact that as early as 1869, prior to his

ascending the University presidency, Eliot wrote about

the need of a curriculum that was relevant, high quality

and helpful but which eluded him at the time. This idea,

it seems stayed latent in his mind and was finally

479


hatched in 1908. It must have been a brave day for

Harvard. The undergraduate program had become obsolete,

abstract and was moribund due to its impracticality on

the field. The graduate school was no better either. The

extant courses were rigid, static, of questionable

quality and did not address the needs of the times. This

resulted in low calibre graduates churned out who failed

to perform on the industry. Naturally, the Industry felt

cheated. Further more, the curriculum prior to 1908 was

basically textbook oriented, far detached from reality.

This was what the new graduate school sought to address.

As expected, where standard norms of practice have been

set, it is not easy to initiate change. This has been the

lot of all who have had a vision that threatens to change

the established status quo, for many will resist change

at all costs. Of course the reaction differs from person

to person but largely those who feel most secure in the

prevailing status will strongly oppose any position

threatening innovation lest they lose their creature

comforts. Eliot and the subsequent presidents had to

wrestle with different shades of opposition. Granted that

standards must be set which must stand the test of time,

the rapidly changing business environment, unlike the

scientific facts, demands programs that remain strategic.

In the light to these hurdles, the president had the

480


option to remain silent and walk out of office peacefully

or he could have continued to defend the obsolete

programs against outside attacks.

Eliot passed on the mantle to Edwin Gray, (the first

Graduate Business School Dean) who continued the work

initiated by his superior only that his focus was on the

definition of the school. The question that begged

answering was “What is a graduate school of business?” In attempting

to answer that question, a cross section of people were

asked as to what they thought. As many answers as

interviewees were collected!

Thus it was difficult to define exactly but with time, it

became clearer. Having collected views, Gay went ahead to

make some strategic choices, which included formulating

unique business courses that covered relevant issue

experiences on the industry. These courses were backed by

data collected from research, which data helps in making

informed judgements and decisions. Further more, in order

to attract government aid, he opted to collect data from

a business area hitherto untouched- the small retailers

and then came up with a database. This database was

further refined in subsequent years. In addition, he made

sure that the courses were pragmatic, current and

flexible in nature. The heart of the business courses lay

on manufacturing and marketing, which dealt with the

481


production as well as the distribution aspects of the

business. Gray ensured that the best high profiled

professionals such as George Elton Mayo and Fredrick W

Taylor were got on board the Academic staff. These two

star lecturers waxed eloquent in their fields. Mayo is

famous for his monumental Hawthorne studies while Taylor

is an authority on scientific management theories. Also

to hand was the magazine, later called the Business week

which further publicised the work at Harvard Business

graduate school. All in all, the school was far above its

peers if any. But why did Gay take such pains to

strategise? As earlier intimated, the extant courses were

irrelevant and abstract so the existence of a new program

had to be justified or else be treated like any other.

Secondly, since it was a new program with no prior record

or experience, it was necessary to continuously tailor it

to the current needs and this was possible through input

from without the institution. Usually, time is the best

judge, it either vindicates one or confines them to the

“academic and professional dust bin”. Gays’ efforts paid

dividends because his innovations bore fruit, for they

were extremely successful despite set backs due to high

over head costs, suspicions and sometimes outright

hostility from other colleagues.

482


As the years rolled on, the school begun to take shape as

more students enrolled and went out into the industry.

Many however, did not complete for two basic reasons.

Firstly, the majority of them took up jobs after

finishing the first year while others abandoned the

course due to the unsuitable nature of the curriculum.

After an eleven year distinguished career, Gay passed on

the baton to Wallace Brett Donham who took office in 1919

and remained Dean for 23 years, in which time more

changes took place. These changes ultimately put the

school on the map as unique, superb and the centre of

education evolution. Donham refined the curriculum

further by introducing more teaching methods that met the

current needs. He was the first to introduce the Case

method that ultimately became the standard way of

teaching at Harvard. In the Case method, a professional

from the industry would be invited to give a talk

painting an actual scenario and then ask the students to

come up with a solution. There after, another sitting

would be convened and the said professional would discuss

the case and answer questions from the students. In this

way, the students learn how to analytically look at

practical cases and solve the problem. This was and is an

excellent way of teaching because the students feel part

and use their brains. Initially, financial problems and

483


resentment bugged the Case method. Some members of staff,

preferred the well tried and tasted methods which bore

students, to the strange new method. In the fullness of

time however, the case method vindicated Donham by their

usefulness and popularity.

As though the case study method was not enough, as

earlier intimated, relevant new courses were introduced

to cater for the needs of wartime. America was involved

in the World war two, the following courses were tailored

towards the contemporary scenario. The first course was

that of the Industrial Administrator (IA), a short

program to equip staff who were going into government

service connected to defence. The second, akin to the

first was equally good as it taught statistics and other

related war functions being a Statistical course. But

after the war, Harvard rose to the challenge and offered

another course- “Retread” program that basically was

aimed at people who had been employed in wartime and

needed retraining. It also focused on Chief executives

who needed retraining. The aforementioned innovations

show how the institution has moved with the times, built

strategy, and has constantly kept improving. Donham

phased off the academic horizon in the early forties

after an equally illustrious career, having laboured

tirelessly to shape the Business school.

484


Today, if one went to Harvard, they would not believe

that this University has gone through many evolutions so

as to arrive at that most competitive position. Obviously

in arriving at this position, much energy and sacrifice

has taken place. The earlier days were hectic because the

School had to find its feet, the need for self-identity,

the opportunity grasping, and then hiring the right and

articulately robust staff. This process took time.

Having surveyed the Harvard case, one cannot fail to

learn many valuable lessons. The first lesson to take

note of is that an organisation takes time to find its

position on the industry, but this comes from painstaking

strategic thinking. The second lesson we carry home is

the fact that organisations must continuously read the

times and ensure that they know what is going on and thus

respond appropriately with hind sight. Thirdly, the

organisation must ensure that it remains flexible and has

the right people in place, who are ready to change with

the times. Fourthly, the organisation must ensure it

remains relevant and ahead of the times. It must respond

to the situations confronting the same. Fifthly, the

institution must ensure that it not only churns out

quantity but quality graduates by having quality

programs. Lastly, once the institution has achieved

success, it must fight resting on its past laurels but

485


rather constantly continue looking for ways to improve

all the time.

All the above, Harvard has achieved to the finest levels

all because it has been ready to change and yet remained

the business school of the times, if only others would

take a leaf!

Source:




What do you think about the development of the Harvard

Business school?

Do you think Business schools are essential and helpful?

Explain your answer.

Is the Case Method analysis to business appropriate in a

dynamic global business context?

Do you have any suggestions on how The Harvard Business

school can improve?


486


What do you think about the development of the Harvard

Business school?

It was an excellent development and definitely went

through many defining moments as each new leader took

over the mantle of the school, long before other

Universities and countries had ever thought of that idea.

The school is there today and boast of being one of the

best and without doubt, it has some of the best business

thinkers and theories floating around the Business market

today. For a long time to come, Harvard will remain the

place to be!

Do you think Business schools are essential and helpful?

Explain your answer.

They are essential as they sharpen one’s latent skills

and potentials. They help some one identify their unique

competencies as well as encourage them to fan to flame

what they have already embedded in them. In other words,

the business schools, just like theological schools do

not make the man but sharpen them. For a long time, Japan

did not have Business schools as they probably did not

view them necessary but it would appear things have been

changing, given the rapid global dynamics.

487


Is the Case Method analysis to business appropriate in a

dynamic global business context?

Definitely! It gives the student an opportunity to

simulate with real live cases that they may or may not

encounter later on in their careers. In that way, they

will be better prepared to handle scenarios better than

someone who has never exercised themselves in that way.

Do you have any suggestions on how The Harvard Business

school can improve?

There are many ways to improve but one caution would be

that Harvard needs to remain a learning entity lest it

rests on its laurels and fizzle out of the lime light.

Its good to have a brand name but this could also prove

your undoing.

488


Case study # 7

Salvatore Ferragamo, SPA

Very few people have left such an indelible mark upon their generation as Salvatore has. It is now over 30years

since he died and very little of his classic convictions

have been altered or adjusted to suit the prevailing

circumstances. He was indeed a legend. Tracing his

history as a shoemaker will leave echoes in ones’ mind

long after reading his biography. This is surely a mortal

to emulate about perfection in quality products and

commitment to good business ethics.

489


Perhaps for the curious reader, a brisk history will be

handy. Salvatore’s life is easily told but it leaves an

awesome legacy. Born at Bonito, Italy, at only age 9, he

made an excellent shoe for his sister saving her from

shame. Then by age 12, he was the choice shoemaker in his

locality such that at only 16 years he left for America

to seek greener pastures and to train, but not even this

voyage satisfied his quest for quality and design. As a

result, he formed his own firm making shoes and

subsequently found his products in the Hollywood films.

This really put him on the charts such that by 1927 he

had a booming business. But as many people say, “There is no

place like home”, he trekked back to his native Italy where

he continued the business. There also, the trade

blossomed as well having become renowned for creativity,

quality and excellence. Salvatore had three business

philosophies that are still cherished by his heirs to

this day. These are:

1. Be honest and fair with employees, suppliers, and

customers,

2. Build a product of the finest quality, and

3. Provide excellent value for money.

These are firmly wielded upon the chests of his family,

the present proprietors of the gigantic multinational

company. After his demise, the widow, Wanda along with

490


her children picked up the broken pieces and have worked

tirelessly the last 30 years to see the company to where

it is today, so big and different from what it was three

decades ago. Today (1990), the company has a very fine

international brand, well known for guaranteed high

quality products, and has ironically sustained a loyal

clientele all these years. Other product lines have also

been introduced along the way, although women’s shoes and

clothing remain the core of the company. It maintains a

strong international presence in Europe, America and Asia

but like in every case, Salvatore’s position is under

threat from competitors, who would undercut and are more

market focused. It was precisely this reason that the

Salvatore board of Directors, comprising Wanda and her

six children sat to consider seriously the proposals put

forward by Mr Mazzalovo to enable corporate growth from

the 1990 $ 200 million to $ 400 million in 1995. It was a

tense and crucial meeting because some of the proposals

potentially threatened the age-old hitherto unquestioned

standards such as rapid decision making and incorporating

non-family members to run the business on equal footing.

Considering the turbulent business environment,

Mazzalovo’s arguments were so potent such that a dilemma

resulted in the family whether to abandon the past and

surge ahead full throttle with new policies or to reject

491


the proposals and stick to the past until the company

finally ground to a halt?

From Mazzalovo’s presentation he clearly showed that if

any significant growth was to take place, the following

steps were to be taken. Firstly, a self-audit had to be

taken to ascertain the strengths and weaknesses that were

inherent. His immediate findings, subject to a thorough

research, were that the major weaknesses that plagued the

firm were that the family values often overrode the

corporate strategy, in effect, the company did not have a

strategy at all! It was found that anything that appeared

at variance with the family values was discarded without

further discussions, even if it was meant to propel the

company further, the family axe fell at the root of the

idea. This showed itself in many ways such as reserving

all the decision making management jobs to family

members, no form of “brain storming” sessions, but a top

down form of management, product focus rather than team

work or customer needs were the thrust, slow centralised

decision making by top family management. Further

highlighted weaknesses were as follows: The company was

inward-looking and not market focused, not caring what

the customers needed but churned out what was thought the

customers would want to buy, relying on the 30 year old

goodwill. It was also evident that no reading of the

492


rapidly changing market was extant so as to formulate

aggressive relevant strategies. The other pitfall was

that teamwork was only practiced among family members and

the personal touch to the customer was absent. Although

the three Salvatore values were firmly up held, Mazzalovo

concluded that no effort was made to motivate employees

or to satisfy customers. In fact, the company did not

really know why people bought their products! Where as

other competitors were diversifying and targeting the

younger, more fashion conscious generation, Salvatore

stuck to the old styles of yester years with slow minor

periodic product launches. Aggressive marketing was

generally neglected . But does that mean Salvatore has

nothing good to offer? We do not think so, to the

contrary, as Mazzalovo concluded, the company has a

number of excellent strong points from which premise to

dive into the river of success. These strengths as

follows: Firstly, the company has a luxuriously powerful

brand name. Every quality conscious individual knows that

any product from Salvatore is of the highest calibre,

quality and durability. Secondly, the quality of products

is excellent, second to none in the industry. Today, it

is not a question of churning out mass products but

quality should permeate all aspects, without which, the

product name deteriorates to the background. Quality is a

powerful marketing tool in its own right. Furthermore,

493


the company has immense financial resources to freely re-

invest in the business on a long-term basis, which others

do not have. With the correct information and cash,

Salvatore can perform wonders. Not only is there

sufficient liquid cash, the company is endowed with

perhaps the most powerful business people around. This

unique family has the best men and women who potentially

could turn the company upside down within a short time, if

they so willed. The issues of customer sensitivity,

marketing, morale would be things of the past if modern

management principles were imbibed, of course within the

context of the original core values but in a modified

sense. Being a multinational Company, it has the prowess

to hire the most experienced and dependable

managers-“Known quantities” as the common business phrase

goes. With all this immense potential, we turn to look at

the opportunities that lie untapped. It is a sad truth

that apart from the women’s shoe line, other

opportunities are either underdeveloped or ignored on

account of keeping “Family tradition”. Tremendous

opportunities lie at the doorstep, all that has to be

done is to open the selfsame door and let the

opportunities in or else risk losing market to other

competitors who are sparing no efforts to snatch as much

of the market as possible. Opportunities especially lie

in the “Ready to Wear, RTW” market. New product lines

494


such as perfumes, bracelets, watches and jewellery could

be introduced so that no foothold is given to under

cutters. Men’s products like ties, shoes and clothes must

be enhanced. As suggested, professionals must be employed

specifically to champion these brands. In addition, the

products generally must be market focused and

contemporary, yet in the same breath maintaining high

quality and consistency. Coordination and effective

communication must be implemented to ensure that target

groups are effectively catered for such as the young,

fanciful and fashion conscious must feel at home with the

brand. Salvatore is so strategically positioned and must

be proactive rather than reactive, as has been the case

hither to. It is high time to be the universal

trendsetter once again. More frontiers must be conquered

such as Africa whose markets are beginning to open up.

These opportunities must be grasped because threats are

galore and will eventually overtake the company. If we

were to advise Wanda on Mazzalovo’s proposals, we would

encourage her to imbibe them whole-heartedly though with

two cautions in mind. The first is that she should ensure

that the best strengths from the two eras are taken into

account, for example the quality. Secondly, ensure that

the brand name and niche remains firmly rooted in the

company culture and also that the corporate structure is

clearly defined. In the main, it should remain a family

495


undertaking but new and brilliant ideas must be given a

fair hearing before being discarded. This under taking is

a make to break situation and so, due meticulous care must

be taken.

With that twofold caution in place, and having shaken off

the shackles of past follies, we are confident that

Salvatore will surge to even higher international market

growth, which in itself is bad news for competitors!

Source:




Why do you think Salvatore succeeded at such an early

age?

Was the trip to America helpful to his success? How?

Do you think Salvatore is correctly positioned for the

current global market given the succession issues and

rapid dynamics in the world?


496


Why do you think Salvatore succeeded at such an early

age?

He seems to have discovered his talent and strategic

strength at an early age, improved on it and exploited

the resulting competitive advantage and market gap.

Was the trip to America helpful to his success? How?

It was in the sense that he got international exposure as

well as marketed himself there despite all the challenges

he faced along the way. International exposure is key,

especially in this global economy.

Do you think Salvatore is correctly positioned for the

current global market given the succession issues and

rapid dynamics in the world?

Potentially, the company is correctly positioned only if

the succession wrangles are quickly sorted out

independent of the company. If this is not corrected, the

company is headed for the corporate graveyard, where

myriads before it have ended up.

497


Case study # 8

Bill Gates and the management of Microsoft

498


He suddenly appeared on the computer horizon and has beenthere ever since. His name is Bill Gates, probably the

richest and most influential man on this terrestrial

ball. At 14 he had a company and by age 35, he was the

Chief executive officer and Chairman of the Goliath

Microsoft Company, except this time, this modern Goliath

is invincible on the computer Market. Gates has sustained

a powerful intense love for computers from his youth days

and has continued to improve his mastery over computer

software programmes and this has surely rubbed on to the

company teams. But from whence has Microsoft hailed and

what has made it so powerful? What has been the “silver

bullet” and who have been the major key players?

For one thing, it is very clear that Bill has been at the

helm of the Microsoft success. He, along with Paul Allen,

a childhood friend started the small unknown company in

1975, having had a short stint with MITS in New Mexico

and then proceeded to open up Microsoft. The early days

were rather rough because Microsoft was unknown in the

computer forest where giants like IBM reigned supreme.

Armed with only three workers, knowledge and

determination, the company commenced business in New

Mexico, later moving to Bellevue, Washington. Slowly but

surely, Microsoft found its feet in the relatively new

computer industry. Market positioning is a crucial stage.

499


Knowing that for Microsoft to be spotted, there was need

to be aligned to some big name, hence the choice to

develop software programs for IBM was hardly surprising,

this being an excellent strategy. Having noticed that

many were more involved in hardware, Bill and Allen

figured that the Software would be the need of the

future, what insight they had! As such, they plunged

headlong and developed many successful software programs

such as BASIC and COBOL. These programs were excellent

that Microsoft begun to licence out their products to the

computer giants of the day. The said software programs

were IBM compatible for example. In the fullness of time,

Microsoft exploded and proved too big and independent.

Thus, this entity has sailed to higher heights ever

since.

But what has been the secret behind Microsoft, when

myriad companies in the same industry have folded up? How

has it managed to defy all company demise, but to the

contrary, managed to blossom further? A number of reasons

can be advanced when we analyse its progress against the

competitive background from which it was hewn. Firstly,

Microsoft etched out a powerfully unique niche. Its

software products had such unique features which rivals

failed to copy, components like the operational and

application packages. Secondly, Microsoft has always been

500


customer focused, in most cases reading the “writing on

the wall” as well as anticipating what features the

customer would like. To that end, the customer has been

the one to determine the end products. In addition, there

has been speedy attention to the customer needs and

orders. Thirdly, there has been continuous improvement on

the programs ever so often, so much that the programs are

improving every year. Microsoft has always had a special

place for programmers and developers no wonder the phrase

“reverence for the Programmer” is strongly upheld. Not only

is there a special place for the programmer, Bill Gates

has created an intensely exciting atmosphere in the

company as there is commitment to graphics user interface

and an efficient development process. This has been the

backbone of Microsoft. Furthermore, the company has had

aggressively strategic marketing ventures and teamwork

has been the company culture from the beginning. The

Gates leadership has cultivated an informal but highly

charged atmosphere where people will do their job

excitedly, many times working late. It has been fun to

work at Microsoft, not so much the pay but the goals. A

consistently watchful strategic outlook has made

Microsoft the trendsetter in the industry. As can be

seen, Microsoft’s success cannot be solely traced to

setting the standard for PC operating systems but rather

its strength lies in the integration of programs so that

501


one can work in more than one program at the same time.

In the past, these programs were independent and could

not be integrated, but now this hurdle has been overcome

with the advent of windows. Furthermore, the dynamic and

strategic leadership of Bill Gates whose insight into

computers, zeal and determination to succeed has wrought

success for Microsoft. The hiring and nurturing of the

best college graduates and professionals is another way

Microsoft has stood out from the rest. These graduates

are sharpened and contribute brilliant ideas to the

product development. Also, Gates has been careful to hire

only the right people with the appropriate acumen,

expertise, experience and must be “ Known quantities”

equal to the task. The products, by that token have been

of continuously improving quality, much to the pleasure

of customers. As Microsoft has been becoming more

complex, a deliberate effort has been made to maintain a

“small company” culture so that the personal touch is not

lost with time. Contact with customers is vital. Whereas

in the past, Microsoft only concentrated on churning out

high quality impeccable programs, it has also gone

further to cater for consultancy and customer service.

This has been another plus.

All the above has been achieved by the fiery zeal and

determination of basically two men, Bill gates and Paul

502


Allen. These men, as earlier intimated, worked closely

together until Allen was taken ill in 1983. Bill

continued to herald the Microsoft torch which has

radiated brighter over the years. Bill possesses a

peculiar simplicity about him that one cannot fail to

notice. He is self-assured, creative, energetic and

intense. The CEO also has a clear mind, insight into

multiple issues and very daring too. When he is about a

task, he works feverishly and relentlessly until the

mission is accomplished. Software innovation is not for

the fainthearted. Determination, diligence and hard work

distinguish him from other Chief executives. As one would

expect, such a high profiled man is very passionate and

demanding until results are produced, most of the

products being time bound to keep a head start. The irony

of it all is that this zest is contagious because Bill

gives as much individual attention as possible on e-mail

and other wise. He works closely with the developers and

keenly reviews everything they do. Together, they have

been able to develop such classic programs as MS-DOS,

Word, Excel, Fortran, and Power Point. Apart from these

programs, other developments have been in the operating

systems and applications software, headed by Steve

Ballman and Mike Maples respectively. This team has

fought computer “wild beasts” and triumphed!

Furthermore, Bill has continued to champion the

503


development of other multimedia software programs. This

man in particular has been highly inspirational and

sensational; ideas never cease to flow out of that mind!

Now that Microsoft is unquestionably the most powerful

organisation in the computer software industry, many

problems have begun to buffet it, which the Gates

administration have and will wrestle with. That Microsoft

is and will be the foremost software giant in the 21st

Century is beyond doubt, but to maintain that leadership

is quite another another issue. For one thing, there is a

general feeling that the organisation is fast losing the

“small company” culture due to its complex nature.

Although vigorous efforts have been made to resist this

decay, change is inevitable, unless the company is

fragmented into smaller units. The said complexity means

that the company by bits loses the fluidity, agility and

the “family-ness” of the entire organisation. Time was

when Bill knew everyone by name but with a nearly 14,000

workers worldwide, it is practically impossible to know

everyone. Closely akin to the afore mentioned is the slow

but sure increase of people who do not really identify

with the initial passion, intensity, sacrifice, team

work, high quality output and the continuous improvement

goals that engulfed the forerunners to the present

Microsoft. Today, it is feared, many join Microsoft with

504


the self-gain motive rather than the love for the job as

well as longing to see new products churned out, far

ahead of any competitor. Continued growth and complexity

has meant that the single Redmond campus has proved

inadequate. There is need to expand and probably explore

other sites although this will lead to a further “unity”

disintegration in the sense that the pace of development

will not be uniform. Saliently, more professionals have

had to be hired as well as train staff within. This is no

mean task at all. Furthermore, the popularity of

Microsoft programs has far outstripped the ability to

satisfy the demand. Today, it is unthinkable to imagine a

computer without the Microsoft programs, as the

integrated operating and application programs are

literary in every computer! This has led to a situation

where even the newly introduced consulting and customer

user services are far not equal to the demand. All these

are business opportunities lost.

If we were to advise Bill Gates on what to do to remain

buoyant, we would suggest the following:

1. It is good that Gates has acknowledged that Microsoft

is no longer the same as in those formative years. It

is far more complex and naturally the centre of

attraction World over. Thanks to his accurate

foresight, Bill acted prudently long before hand in

505


appointing Shirley and then Micheal Hallman as COO. But

Gates should do this more often as need arises long

before slothfulness creeps in and solidifies.

2. Bill should continue to be strategic in approach while

the Hallman focuses on operations, ensuring corporate

agility.

3. There is need to sharpen the customer sensitivity needs

and to be as personal as possible.

4. Innovations and niches must continuously be explored.

This means that Microsoft must not rest on its laurels

but strive to be the trendsetter, where rivals find it

difficult to copy. They must have a satellite approach

where information is shared freely and quickly sent

across the entire organisation.

5. Quality must run in all spheres of the organisation and

products. The service must be speedy, timely, personal

and customer satisfying. The products also must be

excellent, always adding new features.

6. Every person joining the corporation must be a team

player and have a similar passion for high quality and

continuous product innovation. These traits must not be

trifled with nor treated lightly.

7. In an extreme case, where Microsoft becomes too big to

be governable, it must be split into small units. This

is a very sensitive line to tow though.

506


8. Training of staff must be stepped up more vigorously

than hitherto, so that they are inculcated into the

company culture.

9. Effective communication is a must, more than ever

before. Management by exception is becoming a must but

this should not compromise detail and meticulousness.

10. The right information must be on hand all the time.

As we know, one can have all the money but without

information, all efforts are endangered because of the

rapidly changing environment. Time and opportunity can

only be redeemed when the correct information is at

hand. This information is very crucial for strategic

decision making. Also, everyone in the organisation

must know what is going on at any time and no one

relegated to the “information vacuum”. This tends to

make people feel left out and as such, they will not

put in their best due to lack of the same goal empathy.

11. Aggressive and constantly refined marketing

strategies must be put in place.

12. Diversification is a welcome option where possible,

but ensures that the core values of the company are

preserved and enhanced. More computer accessories can

be developed as well as an expansion of the present

consultancy and customer services.

13. Give incentives to those who bring in excellent

product innovations that are viable.

507


14. Continue to hire “Known quantities” that have the same

corporate goals as Microsoft. Having qualifications is

one thing but being a team player is quite another

issue.

15. Watch the market meticulously, and “benchmark”

backward to ensure that the nearest rival does not get

too close. Further, watch out for those unknown

entities that might come up and undercut Microsoft.

Recall that Microsoft itself was once a start up feeble

company compared to the giants like IBM. The picture is

entirely altered today because the “Big brother”

despised the once “non entities” like Microsoft. Due to

its size and power, it felt secure. Frequent market

research and “market reading” are crucial, remembering

that rivals are always prowling around looking for an

opportunity to seize.

16. Watch out for bureaucracy that has crippled many

powerful organisations. This “vice” tends to slow down

the pace of development and corporate agility. The

company structure must be kept as “flat” as possible,

meaning that although a defined and organised structure

should be in place, the layers must be kept at a

minimum.

17. Keep information as secure as possible.

Developmental secrets must not be leaked to anyone or

else rivals will pick them and outdo Microsoft. This

508


means information must be classified and accessibility

restricted to a few. This must be clearly explained to

all employees that the issue at hand strategic rather

than mistrust but a strategic move.

As Microsoft hurtles into the 21st century, and observing

the above points, we are not afraid of the results. Let

those who try to compete with Microsoft do as they

please, we have the powerfully innovative and strategic

Bill Gates team, and as such, we can safely rest our

case!

Source:




What do you think about Bill Gates as an individual?

Do you think Microsoft is invincible on the software

market? Give reasons for your answer.

What one thing has made Microsoft succeed over the years?

What should Microsoft watch out for if it is to continue

succeeding?


509


What do you think about Bill Gates as an individual?

He is certainly a marvellous gentleman, hard working,

innovative and very creative in his own right. He is a

leader determined to succeed at all costs.

Do you think Microsoft is invincible on the software

market? Give reasons for your answer.

Not quite but for now, it dominates the global computer

software market no doubt but we have no telling for how

much longer because lesson from the past seem to suggest

that anything can happen. Consider the once invincible

IBM, where is it today? Its almost in the shadows of the

computer industry!

What one thing has made Microsoft succeed over the years?

Creativity, quality and innovation!

What should Microsoft watch out for if it is to continue

succeeding?

510


Case study # 9

WAL-MAT STORES, INC.

Wal-Mart was probably the best place to be in at the end of 1993, as it had been experiencing continuous

phenomenal growth for a number of years. It was voted

among the richest companies by the Forbes magazine and

had captured the fifth to ninth spots of the richest

American companies. For a number of years Wal-Mart had

been an exciting place for any that worked there,

especially under the inspiring leadership of Sam Walton

511


who had left a huge complex company at his death. Wal-Mat

had exploded from a small insignificant entity to a giant

multinational chain of stores. Now it was by far the

biggest in the market, with no rivals to benchmark with.

By that token, David Glass and Don Soderquist, the CEO

and COO faced a mammoth task to maintain the much-

heralded triumphs of the past despite changes in the

business environment. But what propelled it to such

heights in such a short time? How secure was their

leadership position in the market and how profitable were

the diversification efforts?

After running some small businesses, Sam opened the first

Wal-Mat shop in 1962 and slowly steered the store to

success. The secret of his business, as is the case for

many discount stores, was to offer goods and services at

a discount, say 10% from the standard market price. This

was possible through bulk purchases and bargains with

suppliers. The source of this company’s success lay in a

number of excellent strategies. Firstly, Wal-Mat invested

in technology where all the latest information was

captured, analysed and sent around the Wal-Mat stores via

satellite. While other shops were still using outdated

methods, Wal-Mat had this powerful tool thus having a

competitive advantage. This enabled the company also to

put in place a Just in Time system where goods were

512


ordered and delivered speedily to the customer always.

Inventory, although still very much part of the business

was minimised. In this way, the customer was better

served. Secondly, the quality of goods sold was

excellent, at a lower price. This undercut the bigger

shops which sold the same goods but at a higher price.

Thirdly, the Wal-Mat employees worked like ants building

a castle or Beavers felling a tree. Teamwork, modern

management styles (e.g. “management by walking and flying

around”) and customer focus all blended in so well and

complemented each other to make Wal-Mat a force to reckon

with. Those brain storming sessions for example, made

people feel important, appreciated and heard so much that

when they put their hand to the plough, all their souls

were involved. Last but not the least, the choice of

placing stores in the neglected “little one-horse shoe towns”

was superb. In a nutshell, the company is what it is

because of the technology, Satellite communication,

speedy customer service, teamwork, management style,

location, pricing strategy, cost consciousness and

continuous customer taste sensitivity. Wal-Mat etched its

niche very well.

But being at the market apex has its own nightmares.

Every time, there is fear of losing the top slot to some

unknown competitor. As such, the giant must watch out all

513


the time. What are the things to be done to maintain

market leadership, if we may ask? For one thing, Wal-Mat

is far much different from what it used to be in those

formative years. Then, it could afford mistakes and still

forge ahead, the picture however, is different today. The

company is big, complex, multinational and diversified.

It is also the centre of attraction from the press. Wal-

Mat still stands a big chance to maintain its position if

it sticks to the good old company ethics of teamwork,

continuous ethical and quality improvement, and effective

communication, though in a more complex setting. In

addition, the company must continue to be customer

focused, be a learning organisation and etch another

niche in all new products. Company agility, quality,

timely customer service, aggressive frequently changing

marketing strategies must be the hall mark of the

company. Furthermore, the company must look for ways to

ensure that the pricing system, although lower, is within

the law because frequent lawsuits dent the company good

will. Also, Wal-Mat must not tire meticulously studying

rivals despite being the market leader, technological

advances and excellent cost saving measures of the past

must be maintained, if not enhanced.

Having looked at the sustainability of success, we now

pass on to analyse the effectiveness of the

514


diversification into the food industry. As you will

recall, Wal-Mat in those earlier years specialised in

non-food products but in the last few years, the food

service component has come in. As will be noted, this

industry is potentially very profitable if well managed.

For example, in 1992, it was worth $ 16.3 billion. This

is a lot of money! It is also on record that the presence

of this food component increased the customer traffic

because it was very convenient for shoppers. Under one

roof, customers found a whole spectrum of needs from

clothing to food, at a cheaper yet high quality standard.

Furthermore, the 24 hours, seven days a week operating

service were convenient and flexible for the customers.

In that way, Wal-Mat had loyal customers who would

willingly walk in to buy everything at whatever time they

pleased. Clearly, the food industry has come in handy as

a complement and booster of the earlier business niche.

In these turbulent days, a head start as well as another

niche is crucial. Only a few things must be observed to

maintain effectiveness. Firstly, the food quality must be

second to none. This entails that the food must be fresh

and of a fine taste! Secondly, the price must be lower

than anywhere else. Thirdly, the customer tastes must be

the driving force all the time. Fourthly, the service

must be superb, including outside catering. Fifthly, this

food component must be developed in such a way that it is

515


intergrated within the Wal-Mat brand name and always be

enclosed within the large Wal-Mat product shops. At a

later date, separate food shops could be opened when the

fine Wal-Mat food brand name has been firmly established.

With the advent of these potent developments, the spirit,

focus and passion of Sam Walton must live on in

principle, despite attacks from rivals, which attacks

show that Wal-Mat is still feared and admired! Forward

with strategic Wal-Mat!

Source:


processes, 8th Edition, Richard D Irwin


What do you think contributed to Wal-Mat’s exponential

growth over the years?

Why has it maintained its lead in its respective

industry?

How can it develop to better levels?


516


What do you think contributed to Wal-Mat’s exponential

growth over the years?

Many factors have contributed among them being: Good

pricing, continuous improvement, good customer care,

diversification, high quality products and services.

Why has it maintained its lead in its respective

industry?

Continuous quality improvement and strategic thinking

coupled by strategic acting.

How can it develop to better levels?

It should never stop being a learning organisation. It

should also watch those new industry entrants!

Case study # 10

SERENGETI EYEWEAR: ENTERPRENEURSHIP WITHIN

CORNING INC

Few companies have gone into a “coma” and recovered like

Serengeti Eyewear Company did. Being a subsidiary of the

Corning Inc, Serengeti was destined for the company grave

having continuously been dogged by financial losses in

517


previous years. In 1985, the last straw broke the camels’

back as a decision to shut down Serengeti was passed. As

expected, not all agreed to the decision. Zaki Mustafa

was one of them and thus requested that the ailing

company be given another chance of resuscitation. After

protracted discussions and persuasion, Serengeti won

another chance to prove its viability.

Having been given the leeway, Mustafa and friends asked

for independence from the bureaucratic Corning

Incorporation. Thus, the new Serengeti management team

took over the mantle of the company and then went right

ahead to do the “organisational surgery” which, among

many things included the following:

1. The company workforce reduced from 135 to 35, and these

35 were unswervingly committed to the company. The

remnant were not the best but the resolved. As such,

Serengeti had people with one goal and aim.

2. The second was to reposition the products in the

market. Hitherto, the products were not properly

positioned. Repositioning meant that the company

revisited its target, marketing strategies and response

to the customers. It aimed for a product niche.

3. Quality and good pricing were carefully implanted into

the products, which had not been the case hitherto.

4. Customer sensitivity was noticed as a major weakness in

the past. This time, the Customer was to be king and

518


every effort was made to maintain satisfaction as well

as product loyalty. In the past, what was produced was

not what customers needed and wanted but what Corning

perceived people would want.

5. Personalised service was emphasised. As seen in No.4

above, the customer transactions were impersonal. The

Mustafa regime determined to interact more closely with

clients.

6. Partnerships with clients became the norm. This meant

that some of the Serengeti staff members were to be

attached to the outside suppliers to ensure quality and

timeliness of products out-sourced. Also, the consumers

could freely contribute in the product design they

wanted developed.

7. The Brand name was heightened so that the customers

knew that they were dealing with the high quality,

reliable and technical Corning products.

8. Teamwork was noted as the key to success in those

turbulent times. This same philosophy is still deeply

ingrained in the company culture.

9. Modern Management principles were imbibed by Mustafa

and associates. This entailed allowing a free and

informal working atmosphere to prevail. People were not

strictly supervised or held in suspicion. This

strengthened the team spirit.

519


10. The company survived closure and then was “weaned

off” from the main so that it could operate

independently. In these turbulent times, a company must

be fluid, agile, always learning and flexible, which

was made possible independent of the bureaucratic

Corning Corporation.

11. The marketing strategies were sharpened placing the

products on the market, ensuring that the “Opinion

leaders” were seen wearing the glasses as well as

giving out some free glasses in the initial stages.

12. Specialists, who easily discern the customers’

taste, have been doing the designing of new products.

In a nutshell, Mustafa led Serengeti in the turn-around

by repositioning products, customer sensitivity, ensuring

continuous quality improvements, modern management

practices, and Company sovereignty. These attributes

propelled Serengeti eyewear out of the financial

quagmire. Having come out of the “near death” mishap,

Serengeti awoke from its slumber and continues to this

very day. Serengeti has made headway and is a force to

reckon on the market. It has sustained its growth

basically because of three reasons. The first is that

Serengeti has won back the distributors’ confidence. In

the past, mutual trust was lost but a lot of work has

gone into “mending the fences”. The distribution channel is

now thriving and in addition, the distribution channels

520


have been broadened touching a wider coverage. The

second reason is because Serengeti has gone

international. After successfully establishing itself

locally, it went on to the international scene where it

sold its products. It has a presence in Europe, Canada

and Asia where production and research is carried out.

The third reason is the continued expansion of product

lines. When Serengeti was coming back to life, its

product line reduced from 230 to 53 because it had to

concentrate on its core competence products. Now that

that scenario is past, Serengeti has flapped its product

wings again. These innovations and products have been

immensely popular and in keeping with the continuously

changing consumer tastes. The advent of new technological

feats has boosted the company, especially the Serengeti

Drivers sunglasses. The afore mentioned three reasons

have been possible because the company has had excellent

pragmatic leaders who have had an eagles’ eye towards

what must be done. There has been constant reading of the

times to the effect that the company is always alert, not

sitting on its laurels. Serengeti has had a number of

hurdles along its pilgrimage to success, hence the need

to watch out. Among the many challenges has been the

interference from the Corning Inc top management who have

many times tried to curtail the companies’ apparent

independence. Probably there have been some fears in the

521


Corning management circles that Serengeti has been too

liberated and may eventually prove difficult to keep

under the Corning umbrella. But this cannot be, for the

legal papers are in place! Closely connected to the

problem we have advanced, is the fact that the

unprofitable years have been footholds for adversaries to

attempt fostering absolute control over the Serengeti. In

as much as the company (i.e. Serengeti) would like to

institute a Just in time inventory environment, it has

proved elusive in certain years, as was the case in 1990

when more stock was marooned in the warehouses because of

poor sales. Apart from those problems, the usual

operational hurdles have begun to cling to the company.

As Serengeti has been growing in both sales volume and

staff, so has been the complexity as well. Back in 1985,

with only 35 staff, every member of staff was counted

upon, including the top executive, who would also take

part the daily chores, such as packing! The picture is

entirely different today potentially giving room to a

generation to come up that knows not those earlier

ethics, values of diligence, self sacrifice, resilience

and simplicity in relations. Thus far, the tenaciously

held principles of teamwork and strategic orientated

thinking have held the company together like supper glue

amidst all the storms. As the future lies enshrouded in

mystery, Serengeti stands a great chance to successfully

522


bull dose her way to the future. This is because Mustafa

is an excellent General Manager. He is one in whom all

the attributes of a 21st Manager reside. Mustafa has

excellent management style because he has the following

values wielded on his heart. Firstly, he holds that the

rigid type of management is obsolete, as people are

mature enough, not needing a “watch dog” kind of

approach. He also firmly believes that people must be

allowed to express themselves, be involved in

brainstorming sessions, smooth information flow to all

and that staff internalise shared values, without which,

the company is doomed. He makes people feel valuable and

worth much more encouraging them to do better each time

as they exert themselves. Furthermore, he holds that

mutual trust is crucial if teamwork is to be a reality.

The team work conviction entails that the relationships

must be excellent and should go beyond the office

environment. It is worth noting that in those earlier

years, some lowly placed staff did come to terms with the

team and family spirit that was being cultivated in the

company. Mustafa has gone beyond the ordinary manager in

that he ensures that his staff are well cared for in all

spheres. He has been heard to say “I regard myself not

just a business manager, but a surrogate father to our

people. I say to our employees, “You worry about your

work, I‘ll worry about you.” “I am a friend, and I do it

523


because I get a lot of pleasure out of it.” What a

Manager!! Here is the epitome of a caring Manager! This

shows that he does not only care about the balance sheet

or profits but uses the same in a different but effective

ways. Trust and value are mystically married in his

chest.

With the rapid ascendance to the limelight has meant that

all decisions have a bearing and repercussions on the

company image. In the past, the company could afford some

errors and not injure the sales or image but today, every

move is meticulously watched by both friends and foes.

Against this background, Serengeti got entangled with the

Eclipse launch question. Eclipse was a new product that

was developed and was to be launched on the market by

Serengeti. As always, the idea was floated around and

there were many opinions over the same. Some thought that

this had to be shelved, as it would be a failure in the

light of other stronger brands like Ray ban. It was

feared that a collision with Ray ban would actually

“Eclipse” Serengeti’s image all together! Others however

thought that the launch was overdue and had to be

launched immediately. Still others think that the product

should have been launched provided the following are

taken into account:

1. Enough market research has been done and favours the

launch.

524


2. The price and quality are what customers want and

accept.

3. Ability to undercut Ray ban on pricing.

4. Aggressive sustainable and progressive marketing

strategies will be employed.

5. Must emphasise the unique qualities of the product,

establishing a product niche.

6. Team approach is still as strong as before.

7. A test launch must first be instituted and in some

cases, market segregation employed initially.

On the above premise, it was strongly recommended that

they launch.

Thus far, Serengeti has proved its robustness,

flexibility, and strategic foresight therefore many are

confident that it will continue to glide among the agile

multinational giants of tomorrow!

Source:




What do you think of the company’s staff reduction

strategy (downsizing) from 135 to 35? Is this practice

recommended, especially in difficult times like a

recession/depression time? (E.g. the 1930s and 2008/9)

525


List the success factors that have led to Serengeti

surviving a near death experience and rising to

prominence.

Suggested case study question answer

What do you think of the company’s staff reduction

strategy (downsizing) from 135 to 35? Is this practice

recommended, especially in difficult times like a

recession/depression time? (E.g. the 1930s and 2008/9)

The answer to this deep and searching question is really

relative. On school of thought does not at all favour

staff reduction for any reason at all while another

thinks that is the way to go if profitability being the

main goal of business is to be achieved. The job losses

in a recession is another topic altogether but students

should discuss this matter and come up with tangible

solutions worth falling back on.

List the success factors that have led to Serengeti

surviving a near death experience and rising to

prominence.

They are many but obviously the one main success factor

was TQM in all the organisational processes, products and

526


service. Strategic thinking and acting certainly played a

big role to this success.

Case study # 11

Virtual team work

“Teamwork is the key word” declares Vic luck, the Chairman of world-renowned Accounting and consultancy

firm-Coopers & Lybrand. Teamwork being the keyword for

the successful company of today and tomorrow,

Collaboration is the Buzzword. Turn every where today;

there is a shift towards collaboration and teamwork so as

to reap the best qualitative results. Vic Luck has vast

experience having worked in big companies such as

Philips, Ford and Chrysler. These are giants in their own

right as they have well-established brand names. Reading

the article “Teamwork is the key word” from the CIMA

Management accounting magazine, one cannot help but

notice how even the service industry is no exception in

the march towards quality goods and services.

527


Coopers & Lybrand is in the service industry providing

consultancy services all over the world. There is a

sudden outburst of consultancy demands on the said firm

every where, especially in Asia. But what is the secret

of this company’s success story?

The chairman gives us a number of hints, which are

condensed in the following fashion:

i. Teamwork is highly emphasised. The consultancy firm

has 11,000 professionals world-wide. Only

collaborative teamwork will do in such circumstances

or else risk running 11,000 “stand alone

consultancies!” The consultants sit together and

brain storm an issue and then come up with one

answer which is the best for the purposes.

ii. Quality standards. Despite the increase in demand of

services Coopers is careful to maintain high quality

standards, For it is these very high standards that

put Coopers on the map.

iii. Point system and rewards . The organisation gives

points and probably rewards for outstanding

performances. This acts as an incentive to the team

to work hard and attain even higher heights. This

has the effect of ensuring continuous improvement in

the services rendered to clients.

528


iv. Shared Knowledge . The firm has one big database to

which all consultants can avail themselves. Vic Luck

has been at the helm of building this network and

has done well because this has propelled

collaboration and teamwork. There is a sense of

having one “global team” in this IT26 setting. Shared

knowledge is another buzzword because without

information, one is doomed to failure. Capital alone

is not good enough. The firm is getting the benefits

of having one big database, as information is very

crucial today if the firm is going to be strategic.

The world is changing very fast, hence the need for

the right information at the right time, and that to

teams! “The reliance on shared knowledge rather than

on the individualistic approach is one of the

greatest changes in our business”, quips Luck

confidently.

Given the four reasons above, one cannot fail to see that

teamwork has turboed Coopers & Lybrands to the apex of

the consultancy business. The hind experiences at

Chrysler, Philips and Ford perhaps have given the Coopers

chairman the insight into gaining a competitive

advantaged position. High quality standards and

continuous improvement through teamwork are the only way 26 IT is Information Technology

529


forward for Coopers and Lybrands. The article ends with

an aptly brisk statement “With Luck, Coopers will

probably pull it off”. This is a fine way to think of a

firm and the players therein!

Source:

CIMA Management accounting magazine January 1998 pp 18


What one trait has brought about success to Cooper?

Comment on what Vic Luck’s experience has on corporate

success.

Given the glitches encountered in internet connectivity

today, how do you think Coppers has reaped the technology

benefits?


What one trait has brought about success to Coopers?

From the case study, team work, virtual teams and the

effective use of the internet. It would appear that

Coopers makes much on who gets on the teams.

530


Comment on what Vic Luck’s experience has on corporate

success.

He certainly has been around and is no doubt a known

quantity capable of delivering once put in any setting

needing a strategic mindset. There is a way in which hind

experience shapes us, curves our world view as well as

refines our competencies. We become experts at out trade

and easily plain sail where others plummet, thanks to our

hind experience. But again, our past success and

experience can be the recipe for disaster, because we do

not know better than the new circumstance we encounter.

Given the glitches encountered in internet connectivity

today, how do you think Coppers has reaped the technology

benefits?

It has because they probably got there before others

realized the potency of the internet and are thus more

experienced as well as competent in virtual team playing.

With the continuous improvement that we are witnessing

today in the IT world, Coopers are poised to reap even

better returns in days to come.

Case study # 12

531


Team players at Saturn

Companies and projects largely succeed contingent on the strategy and approach they exploit. Some work better in

groups while others work better in teams. Most of today’s

successful entities work in teams. Thus, the brisk and

resourceful article by the Executive Excellence bearing

an interview with Mr Brian McClelland, Vice President of

People systems at Saturn Corporation is extremely handy.

We spend some time analysing it and draw lessons for our

application in the quest to etch a unique niche.

The interesting feature is how the giant Motor Company

like Saturn is using teams and Managers to make headway

in its pursuit of industry for leadership. Reading the

article brings to the fore how companies are turning the

tables “upside down” in that the traditional approaches

to management and planning have fallen by the way side.

For example, Saturn no longer uses the term “Human

resources” to refer to its workforce because the team

spirit is deeply ingrained into the culture of the

organisation. The interview gives the impression that

Saturn is a continuously improving and learning Company.

There is a deliberate effort to train and educate team

members for a minimum of 92 hours every year! It is

believed that as the team players are sharpened in

532


problem solving as well as people skills, this will lead

to more satisfied customers and ultimately product

loyalty and expansion. This points to pervasive Total

quality in all spheres of the organisation. Saturn was

initially put on the wheels of Team spirit and onto the

quality van by the founders who most probably read the

times. The writing on the wall is very clear for the

successful company of the 21st Century. The chief reasons

why the founders saw the need to engraft teamwork and

quality was the realisation that modern success on the

market demands that the internal customer (employee) is

satisfied so that they can put their full weight behind

any implementation plan. It is widely believed that if

the people who actually do the job on the ground

(operatives) are involved in the planning and to some

extent charting the future course of the organisation,

they will fully support the implementation stage because

they feel they “own the goal”. At Saturn, teamwork has

worked very well because of the aforementioned people,

despite having a diversity of employee classes are viewed

as important to corporate success. Among the many classes

at Saturn are those who are unionised and those who are

not. All the classes are well handled and generally have

one goal in mind- To make Saturn the leader in the Motor

industry.

533


The quest for quality products and market leadership is

achieved via two vehicles given below:

i. By including customers in teams. This helps the

organisation know exactly what the customers need

and also ensure that the company is proactive

anticipating customer tastes. Furthermore, the

inclusion of customers in the planning stage helps

to build loyalty. If ones` needs are met and

actually exceeded, the same will see no need to jump

over the fence to another rival.

ii. The organisation has embedded five shared values in

its mission statement to which all team members must

subscribe and adhere to. These values have been

internalised very well at Saturn because the team

members actually live out these values! This is a

desired position for any strategically inclined

business of the 21st century. The five values are:

1. Team work

2. Excellence

3. Trust

4. Respect

5. Continuous improvement

534


All the five values highlight the fact that Saturn has a

clear direction and transparent objectives. The

impression created is that customers are left to exclaim,

“Who wouldn’t want to be associated with Saturn?”

But that is not the end of the story, Saturn also

benchmarks other excelling organisations. This is crucial

because once the secret of success is known, the

organisation makes the correct manoeuvres so that it

maintains or ascends to the pinnacle of the market. The

effects of these values are evident in the lives and work

culture of all Saturn workers.

Although Saturn has made tremendous strides towards

quality leadership, there is still more they hope to

achieve. In the spirit of continuous improvement, Saturn

is not content neither will it rest on its laurels. They

are ever making innovations so that the customer is more

than satisfied. The greatest asset that Saturn possesses

as it attempts to be more agile, is the immense brand

loyalty that has accrued over the years. Their immediate

plans are to put a product- the midsize Saturn on the

market. The company (At article time) is confident that

the customers will love this product. Saturn has used

teamwork and managers very effectively. It is not afraid

535


of the future because quality is their best weapon

coupled with the best management practices.

Furthermore, Saturn has scored another first by having a

lady Chairman in the person of Cynthia Trudell. In a

major car company, this is both a plus and potentially a

powerful marketing tool.

Reading about Saturn’s teams and the incredible

achievements make one look forward to visiting the plant

and keenly observe TQM at work raking in Market success

through teamwork!

Source:

Executive Excellence magazine, May 1999 issue, page 18.


What is the place of TQM at Saturn?

Why do you think the corporation no longer use uses the

term “Human Resources”?

How well has Kaizen worked at Saturn?

Would you like to work at Saturn? Why or why not?


536


What is the place of TQM at Saturn?

It would appear that Saturn makes much of quality and as

such, TQM is very critical to success. Without applying

these techniques, there is just no way of succeeding.

Why do you think the corporation no longer use uses the

term “Human Resources”?

From the case study, the corporation has a learning

culture that ensures a team work culture is strengthened

and internalised in the entire organisation. As a

learning organisation, Saturn is reading the times and

trends and uses promotes appropriate words to foster

corporate growth and comradeship.

How well has Kaizen worked at Saturn?

‘Kaizen’ is a Japanese word for “continuous improvement”

and it would appear that Saturn is hot on the path of

relentless improvement on its products so that its

competitors do not outdo it. It (Kaizen) certainly has

done wonders at Saturn.

Would you like to work at Saturn? Why or why not?

537


The student should give their answer and give reasons for

their answer.

Case study # 13

Sherwood stores

Sherwood is a retail grocery store chain that has a network of 14 outlets in a particular city. It has a goal

of establishing 10 more outlets in the next five years so

that the total should rise to 24. As at now, the expanded

network has established a computer based information

system that allows it to perform efficiently at all

times. The system is both closed and open at the same

time, meaning that within the company, the system helps

to monitor the amount of stock in stores, the rate of use

and the reorder level at which new stock must be ordered.

This reorder level helps to cut costs and ensures only

optimum stock levels are maintained all the time.

Furthermore, the system keeps links with the outside

world-the suppliers and sends order information as well

as reports the quality of materials last ordered etc.

Thus, this system ensures continuity, no shortages or

538


those costly production stoppages on account of lack of

materials. Also, the systems is used as a tactical tool

to analyse the quality, the rate used, the demands and

the information for onward transmission to the top

management for strategic decision making. It can be seen

that the system helps to meet the company objectives of

control, cost cutting and enables management to handle

the distribution system, process and analyse trends and

make long term decisions that will affect the company. In

these times of Just in Time (JIT) inventory management,

the system helps efficiently. Looking at the system, as

earlier intimated, it meets all the three levels of

information required to run the organisation. Firstly,

the system caters for the operational level as it helps

to monitor stock and alerts when the reorder level has

been reached. Secondly, the system caters for the

tactical level in that the said system generates

information for analysis so as to either control the

operations or see whether any more stock needs to be

bought or reduced. Thirdly, the system provides for the

strategic level in the sense that the decision making is

easier with the analysed information from the tactical

level. At this strategic level, the long-term decisions

are made, and without adequate, relevant information, it

is difficult to make correct forecasts.

539


Sherwood is a modern company that potentially has a

competitive advantage provided it makes good use of its

information system. The customer of today demands quick

services and will not mouth any delays. Also, the

overheads must be kept as low as possible to increase the

profit margins.

Source

Schultheis & Sumner, Management Information systems,

McGraw-Hill 1998


What are your impressions about the store chain?

Is it likely to sustain its competitive advantage?

What are some of the key ingredients that will contribute

to success?


What are your impressions about the store chain?

It is a very efficient and progressive entity that is

like to remain in profitable business for a long time to

come. The chain store shows and has adopted, internalised

540


all the techniques necessary for any entity to succeed in

this ferociously competitive world.

Is it likely to sustain its competitive advantage?

Naturally, if it continues on the learning path and

continuous improvement in its processes, customer care

and right pricing as demonstrated in the case.

What are some of the key ingredients that will contribute

to success?

The major key is that it places quality on a high podium

in all it does, whether customer care, service, process

or responsiveness. In short, TQM seems to have been well

embedded in the chain store. One hopes this efficiency

continues even after the expansion from 14 to 24 stores.

541


Case study # 14

Tip Top Diner

Tip Top Diner is a budding restaurant with an increasing clientele. Most likely, it has an excellent reputation of

having good menus and as such, people rush to have a bite

from there. It seems as the market has increased over

time, the eating place has begun experiencing problems

handling clients due to the demand for its menu. The

overall objective of the restaurant is “to provide good service

at low cost and to make a profit of 10% of the total sales volume.”

Therefore, there has been concern lately to diagnose the

problem and then offer possible solutions. A number of

root causes have been identified as below:

1. The workers and staff do not seem to be well

coordinated and most probably, there is no proper

leadership or system of doing things.

2. There seems to be an absence of a team work culture.

542


3. There seems to be an information breakdown. Either the

information is not well analysed, not available or just

not timely.

4. It seems that the entire restaurant is overwhelmed with

the good demand such that there is hardly any time to

sit and analyse the trends so as to think

strategically.

5. The facilities on the other hand may not be adequate

and may need revisiting by way of increasing them,

modernizing them or simply replacing them to the

increasing demands.

6. There seems to be an absence of a computerised

information system that helps to forecast, control or

know what stock levels to have at any given time. This

system will help to produce the food freshly at the

right time and avoid things like shortages of some

ordered food. Customers get irritated and go away.

Furthermore, customers want to be served timorously.

Having discovered some of the possible root causes, the

company must respond by realigning itself again to the

right levels, the customer needs and demands, the right

facilities, the right staff, building the right culture

by way of team work and most importantly, installing an

IT system for prompt analysis and decision making. The

opportunities for market expansion are great and if

poorly handled, will lead to a slow death of the

543


restaurant, as customers will gravitate to other

competitors.

The scenario at Tip Top Diner is one that can be simply

solved by using Information Technology through installing

on line systems that will automatically tell the status

quo. Another thing worth noting is training staff to use

these gadgets and also by motivating them in various

ways. Can you suggest other ways?

Source:


McGraw-Hill 1998


Tip Top Diner is an excellent budding restaurant, if you

were the proprietor, how would you improve and expand its

operations?

What one factor would you focus on as you head towards market expansion?

544



Tip Top Diner is an excellent budding restaurant, if you

were the proprietor, how would you improve and expand its

operations?

Clearly, the restaurant has the goodwill and right clientele but needs to invest more it its operations management so that things change for the better. The Restaurant cannot afford to squander the opportunity already in its lap and grasp. Thus, our recommendation isthat quality should be all pervasive and embedded within all operational aspects. In that way, the process will then guarantee better results. Lessons must be learnt from other successful fast food entities like KFC or McDonald. Bench marking them wouldn’t be a bad idea. Withrespect to expansion, the strategy must be crafted right using SWOT analysis and other tools that will help the organisation identify and exploit its core competence.

What one factor would you focus on as you head towards market expansion?

545


If I was at the restaurant helm, I would focus on TQM in

all operational aspects of the restaurant. Our service

and products must be as perfect as can possibly be.

Case study # 15

IMPACT OF TECHNOLOGY

echnology has had a tremendous impact on our daily

lives in unprecedented ways. Almost in every area of

life today. In one way or the other, a computer system

has been at play, making it universally applicable. The

impact cannot exactly be measured because it is too big

as it permeates all sectors of society whether privately

or publicly. Were we to recount one by one where it is

T

546


utilized, want of space to list down all the areas would

be the limiting factors.

For instance, the advent of IT has brought about

efficiency because information that previously took many

months to process only takes a few days or hours to deal

with. By that token, decisions are made intelligently and

promptly unlike in the past. In addition scanning has

even made things extra easier because entire texts and

photos can simply be copied and pasted on another text in

very short moments. In the stores for example, the online

inventory system not only helps in security controls but

helps to give an up to date picture all the time.

Another impact is that IT helps individuals to work

quickly and conveniently thereby hastening the processing

of transactions, with proper orientation, IT helps to

develop the company as well as give it a competitive edge

above its rivals. In other areas such as debt collecting

and accuracy are some other impacts that IT has brought.

In the past, a lot of mistakes and debt collecting was

far more strenuous than today in that it was difficult to

track down defaulters or those who received loans

elsewhere but bolted to another area. With the advent of

547


IT and establishment of a database, such people can be

detected and tracked down. Further more closely connected

to what has just been highlighted; at the simple click or

punching of some buttons, an entire profile of someone

can be displayed on the computer screen. Thus, mistakes

are avoided at that stage.

Apart from increased efficiency and stock control, IT

helps the organisation to maintain or expand a market

share in the market. Clients like an accurate, efficient,

friendly and attentive service delivery system that

matches with their needs. If any given company can

provide that, the said clients will mob around the

company like moths to a light. IT is here to provide this

service.

Thus, in our view, IT is here to bring about the virtual

office remote application for school, e-commerce prompt

and current updating of information & books as well as a

strategic tool to achieve higher heights of service. I

would encourage any company worth its salt to enter the

new millennium on an efficient note via IT!


548


What other impacts has Technology had on day to day life?

In your opinion, is it possible to ignore technological

developments? To what extent?


What other impacts has Technology had on day to day life?

The student should give answers that are ‘outside’ what

has already been highlighted in the case above.

In your opinion, is it possible to ignore technological

developments? To what extent?

It is clearly not possible to totally ignore

technological advancements. What is possible is to manage

its use so that technology does not rule but is a tool

for us.

Case study # 16

549


TORONTO OFFICE SUPPLY COMPANY

Toronto office Supply Company is a budding little entitythat has over 30 branch stores, having begun with only

one-store two years ago. It quickly proliferated into and

around the Toronto Metropolitan area. As a result of this

expansion, it became difficult to keep track of stock

levels among the branches resulting in mistakes and high

expenses to maintain the stock. Not having accurate

information timely and promptly is extremely costly. As

such, there has been talk towards computerising the

entire system so as to bring about efficiency and to eke

a competitive advantage. But to put up this system is not

as straight forward as it appears because certain key

people have different opinions and objections towards the

installation of a computerised IT system. For example,

Gerald Clark, the president of TOSC thinks that what

matters is the growth of the company rather than a new

computer network system. As such, he has devoted himself

to the same rather than the operations. However, the

escalating costs have forced him to addresses the issue

by Hiring Marple leaf Associates to advise on the

computerisation. Having been advised on setting up a

wider area network (WAN) using a central chip, Clark

presented his case before his staff for consideration.

550


As expected, there was some dissent. Charles Robertson

for example felt the initial installation and computer

purchases costs are too high to be justified. He thought

waiting few months should bring the computer prices down.

But this recommendation, although true and plausible

overlooks issues such as the rapid technological changes

as well as the unavoidable high initial installation

costs. Another officer, Sarah Blake thought that the

company was about to purchase obsolete computers that

would probably soon not be compatible. Sarah is right but

it must be noted that technological changes are too rapid

and one cannot possibly cope with unchecked continuous

changes. The best is to either purchase the latest

computers and network at a higher cost or simply settle

for this one & then upgrade it with time.

Having looked at the two objections, the consultants’

recommendations are examined as well. After careful

consideration, it is found that the recommendations are

potentially good if the meet they immediate and long term

needs of the company. As such it is impossible to be up

to date. Another thought is to ask the consultants to

look around on the market and identify an advanced but

551


cost effective system that is relevant current, “upgrade

able” and probably long lasting from another supplier.

One thing is certain preferences & opinions will always

differ but what counts is whether the system and network

delivers the goods as per customer requirements.

Source:


McGraw-Hill 1998


How can the company best improve its efficiency, apart

from what has already been suggested in the text?


How can the company best improve its efficiency, apart

from what has already been suggested in the text?

The student should examine what is on the table and

already suggested by the consultant as well as the two

objections raised and then offer their own solution or

simply consolidate what is there though they must give

reasons for their answers.

552


Case study # 17

KRIEGE CONSTRUCTION COMPANY (KCC)

Kriege is a construction company operating in Western Canada. It wishes to automate & computerize its

construction proposal procedures. It hired a consultant

to analyse the situation.

The situation on a ground just now is that the company

has no previous experience with computers except for word

processing programs for secretarial services. As such,

most of the managers have no prior experience with

computers. So what should be done? When should this

exercise be commenced?

553


Kreige hired consulting firm (Read & Owens) though Mr

Kaline have suggested that a proposal system using an

insite data base management system that has been tried

elsewhere. The choice of the Macintosh program to run the

insite package is an excellent idea because the same

(insite) is user friendly for all including the managers

who have little experience with computers. Kaline have

suggested to get started in two months time. If you were

part of Kreige decision makers, what would be your

position on this matter?

Source


McGraw-Hill 1998


If you were part of Kreige decision makers, what would be

your position on this matter?

What do you think about the insite program? Will it help

matters in any way?

554


How best do you think a new computer system should be

adopted, let alone introduced for the first time to a

company with no previous connections to computer like

Kreige?


If you were part of Kreige decision makers, what would be

your position on this matter?

If I were part of KCC, we would not object to that

proposal because company policy does not hinder us though

Mr. Kriege and the owner of the consulting firm are close

circle of friends. We are pretty optimistic that

objectivity would not be lost, if not enhanced. The

customer needs would be better met in this way. At

another angle, Kaline, we are certain will have taken all

factors into consideration. In our thinking, he (Kaline)

should have looked at the cost effectiveness, versatility

and compatibility of the recommended program.

Having taken into consideration of the above factors,

some problems would still stubbornly surface if KCC goes

ahead with Kalines’ present recommendations. We think the

costs, would be either high or low affecting future cash

flow. IT is constantly changing so the recommendations

are subject to change with time.

555


What do you think about the insite program? Will it help

matters in any way?

The insite program is potentially good and might help the

organisation very much. However, the ethical concerns

raised must be handled objectively so that things do not

back fire in future. The student must demonstrate that

they have understood the case and give reasons for the

answer they give.

How best do you think a new computer system should be

adopted, let alone introduced for the first time to a

company with no previous connections to computer like

Kreige?

The student should suggest practical ways that will help

the organisation adopt and internalise the software

bearing in mind that most of the managers do not have

computer skills if not opposed to them! The student must

empathise with the managers and suggest practical ways

that will help matters such as training, sensitization

among many options.

556


Case study # 18

STATE MUTUAL LIFE INSURANCE COMPANY

Mutual Life Insurance Company is an entity that has beenrapidly growing and changing from strength to strength.

Changing by leaps and bounds, Mutual has kept to its main

objective of providing quality service to its upper

middle class insurance customers.

557


In the past years, the changes in the environment have

been so rapid and in the quest to keep abreast as well as

position itself competitively, Mutual life has taken

advantage of the Information Technology. Commencing with

automating in information systems in the early 70s,

Mutual proceeded to upgrade most of the batch systems to

the extent that by 1980, the company had drastically

changed in keeping with the trends. As earlier intimated,

the target group is the upper middle class and as such,

all efforts are designed to please, capture, satisfy and

service the target customers using the information

technology strategy. Another strategy put in place so as

to maintain an advantage is the introduction of new

products periodically, yea, in a shorter time. How is

this advantage to been achieved? A number of ways come to

the fore. Firstly, the company has continuously launched

new products faster via the use of IT. Secondly, the

company has used IT to guarantee quality in goods.

Thirdly, the company has utilised the Internet to boost

the use of e-commerce, is online, real time and fourthly

has exploited the possibilities of using the virtual

office.

In the fifth place, Mutual Life Insurance Company has

ensured that they diagnose the customer needs and

558


anticipate them, thus being proactive. The customer is

king in these times.

As Mutual Life Insurance Company continues evolving using

Information Technology, what new thing must it do to

remain competitive?

Source


McGraw-Hill 1998


What do you think about Mutual Life’s competitive

strategy as relates to IT?

How best can the entity beat other competitors in an ever

changing environment?


What do you think about Mutual Life’s competitive

strategy as relates to IT?

The competitive strategy of Mutual Life is very good and

it would appear the entity has grasped the correct

559


essence of IT though the strategy continuously needs

refining so that it remains fresh and relevant all the

time. In short, the organisation should change with the

times by being timorously responsive to the changing

context.

How best can the entity beat other competitors in an ever

changing environment?

Quality is the key factor buttressed by appropriate

cutting edge state of the art technology. The said

technology must be effectively exploited to strategic

ends or else the potent weapon in their hand may not be

advantageous as should be the case.

560


Case study # 19

CLARK CONSULTING

Clark consulting is a company that has been in businessfor many years but has not used an expert system before

to handle any of its cases. With the advent of

information technology, the said company has been forced

to use an expert system to help in decision making in

certain areas. Expert systems are computer programs that

have been developed lately and use some kind of

artificial intelligence to help come up with proposed

decisions in a very short time. These self-same systems

can advise appropriately, and in many instances act as

561


experts in certain areas. Their recommendations, most of

the time, are as good as an actual human expert

responding except that they have certain limitations that

make the human brain superior. For example, expert

systems have no emotions or any ability to treat

exceptional cases. Generally, expert systems are helpful.

As such, when a company wants to carry out an evaluation

as to the potential sales leads, an expert system will be

handy, as it will ably give indications. With respect to

selecting potential stores sites, develop an effective

sales incentive program and the supply of legal advice

about corporate taxes, expert systems will help greatly.

But to diagnose problems with plant production equipment,

the expert system may not help much because it has

limitations. Such issues need a good flexible and

inquisitive human mind that may not be possible with the

extant most advanced artificial intelligent computers.

As Clark consulting treads this new route of consulting

using advanced expert systems, they are uncertainties

along the way, should they go ahead or abandon this whole

exercise?

562


Source:


McGraw-Hill 1998


What is the place of Artificial intelligence in today’s

world?

How can this program be used as a competitive tool in

today’s world?

What do you think about the expert system about to be

adopted by the Clark Consulting?


What is the place of Artificial intelligence in today’s

world?

Artificial intelligence has been gaining ground over the

years especially in the developed world where computer

programs have been developed which have spectacular

capacities such as being able to learn things, much like

the way a child learns as they develop. At the moment,

artificial intelligence may not be that pronounced but

the future certainly holds promise for its eventual

triumph. Some form of intelligence is seen in robots,

563


advanced space grafts and planes etc. Thus, we can

conclude that artificial intelligence is advantageous and

finds much ground in today’s world.

How can this program (Expert system) be used as a

competitive tool in today’s world?

This helps in the quality of decisions made as well as

improves the efficiency of the user. For instance,

decisions will easily be made in a shorter time frame.

What do you think about the expert system about to be

adopted by the Clark Consulting?

This is an excellent system as long as it is used in

appropriate places especially in quantitative or

statistical related decisions. The qualitative may still

need the human mind still. If the one part is handled by

the expert system, then that is half the work done and

brings down the work load!

564


Case study # 20

TREXEL ASSEMBLY INC

Trexel Assembly Inc (TA) is a budding Company and haslately recorded unprecedented exponential growth. There

has been an excellent expansion rate but alas, the

organisation is reaching levels that it cannot

sustainably manage. The Company seems bugged by a number

of problems, largely hinging on the use of Information

Technology (IT). In as much as it is successful, it is

threatened with failure in the long run because it has a

Management Information System (MIS) that is obsolete (for

its purposes) as well as suffers from multiple glaring

errors in data capture especially to do with the payroll.

Those two problems have somewhat crippled relations among

565


staff and may ultimately precipitate disaster at a later

stage unless immediate emergency measures are put in

place such as:-

1. Setting up a more powerful, versatile and relevant

system.

2. Continuously training staff to adequately handle all

issues.

3. Installing an online system that will update records

promptly and

4. Considering changing programs or designing ones that

suit the local needs.

Having diagnosed the underlying problem of this

particular IT component, some staff (probably line

managers) have suggested to management that most of the

problems can be sorted out. For example, Frank suggested

that more clerks be hired to ensure a quick delivery of

materials but others think appropriate updated technology

should take care of this thereby eliminating the need to

hire more people at a costly note. As for the purchase of

new software for accounts receivable, still others think

updated levels of the same system may deal with this

although the cost component worries them. They are

however open to purchase the said software as long as it

is compatible with current system. Tricia is a casualty

566


of the faulty system arising from data capture. Going by

what she has reported, some have concluded that the

program may be entirely to blame because some errors may

have occurred during data capture and processing. There

appears to have been very little review before

processing. If the problem is truly with the program, the

company may consider changing software suppliers or

better still buy a new program or update the present one

to an online one.

With the new system in place, these problems with be

things of the past and then focus will shift to other

more critical issues. What route should Trexel take?

Source:


McGraw-Hill 1998


What route should Trexel take?


567


What route should Trexel take?

The answer to this question is relative. The student may

elect to go for a complete change over to another system,

update the existing one or simply employ more competent

staff to minimise problems. For instance, should the

organisation elect to hire new staff, there is need to

continuously train them so that they have the correct

competencies which in itself is costly but eventually

pays dividends. Should there be a complete overhaul of

the system (change over), the initial costs may appear

astronomical but will be cost effective in the long run.

In addition, output quality will be enhanced as well. In

either case, the student must give a tangible reason for

their answer.

568


Case study # 21

BABBIT INC

Babbit, Inc is a wholesale sporting goods firm thatserves clients in a two state area. It has developed a

local area network accessed by all sales people as they

go about their business by way of micro computers

remotely connected to the main frame. This connectivity

helps them to find out the credit limits & inventory of

particular lines of goods that are in store at a

particular point in time. Granted that this one of the

latest technological developments (of using note pads

line is good in and of itself though concerns were raised

as to the security of the system thus, the aim of this

report is to deal with the following queries raised.

1. The threat of unauthorized access to the e-mail

system.

569


2. The unauthorized access to the LAN and to the main

frame financial accounting data base.

3. The risk of theft of the note book computers and the

software and data stared on them.

You have this question placed on your table. As chief IT

officer at Babbit Inc., you are requested to give a

response to these concerns, giving your opinion on each

point raised. Give an analytical answer bearing in mind

that this may have a bearing on the company

competitiveness. Should Babbit continue with this LAN?

Source:


McGraw-Hill 1998

Case study question

You have this question placed on your table. As chief IT

officer at Babbit Inc., you are requested to give a

response to these concerns, giving your opinion on each

point raised. Give an analytical answer bearing in mind

that this may have a bearing on the company

competitiveness.


570


Analysis and recommendations

The fears are indeed legitimate and the following

proposals should suffice to inoculate the system from

possible interference:

Firstly, the issue of unauthorized access to the LAN and

the mainframe is real in the sense that people called

“hackers” and other intruders can have access by either

stealing passwords or introducing programs that unlock

the system. In the worst circumstances, they even

introduce viruses that ravage the system! In our opinion,

all these fears can be allayed by introducing secret

passwords (which we have) that can be used and frequently

changed to eliminate all possibilities of someone

stealing the same to unlock the system. Another

effective way is to have edit rights given to specific

people only authorized to access, edit or change data.

Others must be barred from these rights. Finally, the

organisation can install “fire walls that will act as a

shield and off any intruders, by possibly sending alarm

to the owner of the system. Continuously updating and

installing current anti-viruses is another must to ensure

security.

571


Secondly, the threat of unauthorized access to the e-mail

system is generally the same to the above except that

some mechanism must be put in place to stop people

intruding (these have been). One of the ways is to

licence people and define special boxes for them with

passwords known only to them. Fire walls are handy here

too.

Thirdly, the risks of note book computers & software data

to be lost can be dealt with in a number of ways such as

backing up, Insurance, pass wording or licensing the use

of the said computers to particular staff only so that if

anyone else has access to them, the computers will not

respond (the note pads). With the above safe guards in

place, we have no doubt that all is well although you

will note that we cannot guarantee security though we can

certainly minimize the risk by installing both physical &

software controls i.e. passwords, fire walls or

restricting physical access to the computers at hand.

Your feedback is highly appreciated.

572


Case study # 22

NORTHERN PAPER CAMPANY

Western Paper Company, a very busy and expanding company has been experiencing complaints of inaccessibility by

clients and as a result, a threat of losing them is

emerging. This thorny issue has bugged management and

inspections department suggests that people (staff) hold

the line for personal use which is detrimental to the

organisation. What should be done to rectify this hurdle?

A number of options have been advanced such as the

procurement of special equipment & software for the

private brunch exchange (PBX), as well as centralised the

external calling system both these options look good.

In terms of equipment, it is advisable to buy handset

control operator consoles cabling & distribution boxes as

hardware. There is need to buy compatible software each

of these will add to advancing the probability of opening

up the organisation to clients. The hardware for instance

will be useful to protect software as well as provide the

needed service. Once the PBX is in place, it will help to

allocate phone lines automatically and ensure the clients

573


get preference access to the company. This should improve

the connectivity tremendously.

Obviously, any system raises concerns. In this regard the

following concerns will surface. Firstly, is the

equipment and software compatible and agreeable with the

company needs? Secondly, how durable & relevant is the

soft & hardware? Thirdly, will the proposal new gadget(s)

be cost effective in the long ran, bearing in mind that

the initial costs might be high?

Northern Paper Company has a real problem at hand and it

can be only sorted out by the right soft and hardware,

relevant & in keeping with the corporate needs.

Source:


McGraw-Hill 1998


If you were at Northern Paper Company, how would you

react and sort out this problem? Would you adopt and

recommend the PBX option? Give reasons.


574


The student should first of all give their initial

reaction and course of action they would take to sort out

the bagging problem. In the second place, the student

should state whether they would go for the PBX and why.

If not, let them give reasons as well as offer

alternatives.

575


Case study # 24

STERLING INDUSTRIES

Sterling Industries is a company involved in the textile manufacturing industry, having developed segments of its

information system over time, with multiple updates &

upgrades. As a result of these modifications, the system

has been grossly inefficient and has caused a backlog of

as bad as six years in some cases! There have been

demands in one quarter to have the system completely over

hauled. What should sterling industries do about this

dilemma as the fragmented system is more of a liability

rather than a help? Below is a suggested route out of the

problem offered by some company staff in one brain

storming session:

A number of steps are here suggested to deal with the

problem as follows: -

1. Have junior management make a firm commitment

towards the development of the new system. This

assertion trickles down the structure as people will

view it as important.

576


2. Have the relevant people prepare for the study in

terms of orientation, appraisal, and survey prior to

any formal general meeting.

3. To launch the entire exercise hold a kick off

meeting signalling the changes to hand.

4. Then define the business processes, what is going to

be done, how and when so that a common understanding

is arrived at.

5. Furthermore, there is a need to define the data

classes as all the different batches of data will

haw specific locations

6. Sixthly, proceed to define the executive perspective

as to what the outcome is expected to be

7. Having set the executive perspective, proceed to

assess the actual business problems at hand. This

process helps to sort out the problem where it is

exactly.

8. As the build up continues, there will be need to

further define the information architecture, what

will be the set ups? What are the components to

include or leave out? There are some of the

questions to tackle at this stage. All of them must

be listed down and then.

9. Determine the priorities in relation to the

resources and commitment in (1) above. After this

has been done then

577


10. Ensure that a review is done at this stage of

the information system so that management can make

comments before a final draft is done.

11. The last but one stage is to recommend an

action plan to deal with the problem to hand in

keeping with the earlier findings and the crown the

whole exercise by.

12. Reporting the results against a background of

the objectives set up.

Having followed the above steps, it is expected that the

results should improve, especially if the data processing

management and user management sectors are properly co-

ordinated during the study. The data processing

management section must process data quickly while the

user management sector must ensure that the actual needs

of the customer are taken into consideration at the

planning & implementation stage rather than just guessing

what clients need & want.

With the right procedures & people in place, sterling

industries will easily surmount these problems and begin

to clear the menacing backlog. What does Senior

Management think?

Source

578



McGraw-Hill 1998

Case study question

You are in Senior Management and are expected to respond

to this proposed route to correct the problem at Sterling

Industries. Convene a meeting and then write a response,

giving additional views as well as Management position on

the suggested solution. 300-500 words should suffice.


The student should state whether Management agrees to the

proposal or not with tangible reasons in each case.

Remember that corporate image is at stake here.

Case study # 25

Pine Products Company

Pine Products Company has been expanding since it began 5years ago. To maintain its phenomenal grow. There is need

to have a very good efficient system that can handle a

579


huge volume of work. The present system is slow,

inefficient and naturally has raised discussion between

Pratt Williams with his son, John Williams. Pratt thinks

that it is prudent to establish two remote data entry

sites as well as one printing Station to cope with the

demand. In this way, the new outlets will not fall into

the same problem as the other two outlets. In addition,

Pratt thinks the present inefficient system should simply

be updated to meet the current situation. On the other

hand, John thinks the prudent thing to do is to replace

the entire system rather than upgrading it as doing so

will cosmetically solve the problem. What should pine

Products Company do? What options are available?

Source:


McGraw-Hill 1998


What should pine Products Company do? What options are

available?


580


What should pine Products Company do? What options are

available?

The first option is to simply upgrade the current system

in terms of memory capacity expansion so that it becomes

“bigger” & faster.

Secondly, just dispose off and buy another system because

it will not only be efficient be versatile but, flexible

and more cost effective in the long run.

The third option is to limit the use of the old system to

certain functions while exploiting the remote outlets to

be installed in the two areas.

Pratts’ recommendation is probably better although more

costly because new system is current, flexible &

versatile. In this way there will be no need for a remote

terminal as everything will be online & in real time. The

old system will still lose time to accomplish its tasks.

As Pine products proceeds on its quest for efficiency, we

think the options listed above would be handy. We say so

because they are more realistic and cost effective. As

for the use and installation of a server for the remote

terminals, it is a good option but slows down progress

581


significantly. An overall online, real time system is far

above John’s and Pratt’s recommendations.

Case study # 26

CF INDUSTRIES

CF Industries is a company, like many others, who havebeen in business but due to the pressure, there has been

a backlog of work. The delay is so great to the extent

582


that some cases are two to three years behind and lie in

the “In” tray. As such, CF has embarked on developing an

information system that will help clear this entire

backlog, update files and then give strategic guidance to

the said entity. In doing this, CF has resolved to use a

4th generation language, which, it is hoped, will be both

user friendly and versatile. However, to implement this

resolve, a plan has to be in place. If we were at the

helm of the implementation, the following would be our

proposed plan:

First and foremost, we would define the problem and know

what needs to be done.

Secondly, we would set the objectives for the user

support centre i.e. Help users acquire abilities to

enable them develop information systems tailored towards

both individual and departmental needs.

Thirdly we would ensure that the role of consultants is

clearly defined so as to avoid overlapping, inefficiency

or unnecessary overheads. We would ensure that among

other things the consultants provide training, technology

assistance, and management of data as well as onsite

consultancy services.

Fourthly, in carrying out the above-mentioned task the

consultants will help maintain a number of “tools”. Among

583


them would be the main frame and microcomputer-based

tools as the case maybe. These tools will carryout adhoc

queries, modelling and analyse applications. With that in

place, we would crown up the entire exercise in the fifth

place by instituting a framework of policies that will

govern the systems development discipline. Embedded in

the policy will be the ensuring of quality in areas such

as data security, validation, testing controls

documentation as well as operations management covering

issues of security, backup and accessibility.

Having done the five cardinal steps above, we would then

venture full throttle to implement the program using the

4th generation language. Armed with the above system, we

are not afraid that CF will surmount all hurdles. Do you

have any other quality suggestions to further improve the

situation in addition to our suggestion?

Source:


McGraw-Hill 1998

Case study question

584


Do you have any other quality suggestions to further

improve the situation in addition to our suggestion?


The student should originate new ideas that will either

complement or side line the ideas and steps thus far

suggested in the case study. The aim is to sort out the

backlog and improve qualitative efficiency at the entity.

585


Case study # 27

Munson Beverage Corporation

Munson Beverage Company owns 30 warehouses and the

distribution equipment necessary to supply a variety of

soda products to retailers throughout the Midwest. It

(the company) is computerized and has been seeking to

keep abreast with the trends. To do this, the company

generates and exploits various reports that contain

valuable information used at different management levels.

Some reports are daily and operational while others are

tactical reports handy for middle managers to control

operations. The third set of reports is at strategic

level from where the top management get valuable

indicators for strategic decision making so that the

organisation is steered to safety and properly

positioned.

Among the reports that are generated and churned out are

the following:

1. Aged accounts receivable reports. (aging analysis)

2. Balance sheets.

586


3. Current merchandise inventory lists.

4. Employee earning records.

5. Fixed assets and equipment inventories.

6. Income statements.

7. Payroll sheets.

8. Schedules of accounts payable.

9. Schedules of accounts receivable.

10. Sources and uses of funds.

11. Stock out lists.

All these reports are useful and appropriate depending on

what one is doing. For example, if one wants to find out

the status of the company stock or debtors, the balance

sheet is handy especially if compared with the previous

period. Although these reports are excellent and useful

they will be more relevant if they are on line, current

and frequently updated. Furthermore, one more report may

be handy to include that gives a picture of the market

share held, the product and the main competitors/rivals

in the trade. It is helpful to have a periodic market

research report for strategic purposes. Could you

recommend any software to increase efficiency and

quality?

Source:

587



McGraw-Hill 1998

Case study question

588


Could you recommend any software to increase efficiency

and quality?


Could you recommend any software to increase efficiency and quality?

If we were asked as to whether we would recommend any newsoftware for the organisation so as to mark up the efficiency levels, we would suggest that a constant updating exercise be done often so that the programs remain versatile, current and relevant all the times. If any new software is on the market, we would ensure it is tested before it is adopted, of course bearing in mind the overhead costs and whether it is keeping with our corporate goals. As the organisation expands with warehouses dotted all over the country, a wide area network that is on line may be handy at some stage so that at all times, information such as stock levels and records levels are automatically updated for all users tohave a correct picture. The times demand the prompt action at all times by all. Today, we believe informationis the most valuable tool for proper control, operation and strategic decision-making Munson Beverage Corporationstands a chance of excelling given its potential advantage to hand. Alternatively, the organisation could consider adopting an online Just in Time (JIT) system. This significantly cuts down on storage costs.

589


Case study # 28

REPORT ON SRC PROBLEMS

A scenario has arisen in your company requiring your

response, decision making and expert pragmatic steps to

heal the ailing organisation. An expert was hired to

carry out an organisational operations audit/evaluation

and has come up with the report given below. Further

queries have been raised and you are required to respond.

Read the findings and respond to the case question.

=========================================================

====

TO: The Director

FROM: Chitunguza Maloza – Consultant

DATE: 27/02/2009.

SUBJECT: REPORT ON POOR PERFORMANC OF SRC

Introduction

A survey was carried out by our firm to ascertain the

root causes of the dismal performance of the organisation

in recent years (2000-2008). The survey covered all areas

of the organisation ranging from management style to all

590


the delivery systems hinging on time management. This

entire process took place between 15th-23rd February 2009

and the report on our findings is here presented.

Objective

The objective of this survey was to find out the root

causes and reason for the dismal performance of the

organisation.

Methodology

The methodology used in this enquiry covered both

qualitative and quantitative aspects. The questionnaire

method was used as well as person to person interviews

conducted. This was a 100% enquiry and thus no sampling

was used. The data thus generated was subjected to our

SPSS software although some parts of the quantitative

questionnaire used Epi info.

Findings

The survey established that the organisation was grossly

inefficient in a number of areas that led to the poor

quality and un-timeliness of report submission. Among the

major possible causes of the problems were:

591


1. The high turnover of staff.

2. Lack of proper training and orientation.

3. Constant disturbances (interference) and

interruptions of professionals assigned to a task.

4. Lack of time consciousness and goal setting.

The survey also discovered that although SRC was well

equipped with modern equipment, there was probably a

serious management problem that led to a poor and

uncohesive fragmented teamwork spirit among staff,

although on paper, the reverse was portrayed.

In the study, the following were the problems identified

as well as assumptions taken in arriving at conclusions.

Problems & symptoms of malady

(i) There was a consistent trend of late report

submission and in many cases, contract breaching

in terms of time frame.

(ii) There was a high employee turnover leading to

serious gaps on many projects.

(iii) The assignments/ contracts turned out

more costly than anticipated due to either poor

projection or longer than planned project

completion.

592


(iv) There were more errors in the systems installed

leading to frequent “fire fighting” stints to

staff and thereby contracting ‘bad will’ from

clients.

(v) There were low quality reports & systems in the

organisation’s output. This would be traced to the

calibre of staff hired.

Assumed problem root causes for the above issues were:

(i) Low morale among staff

(ii) No cohesive team work among staff

(iii) Lack of a strategic leadership vision

(iv) An archaic Management style.

In our findings, we feel that either the poor

management of the staff may contribute significantly or

else the delivery system is not properly aligned. In an

ideal situation, the right staff and systems must be so

well aligned to the extent that every product churned

out is of a high quality. As it is, management does not

seem to be conscious of time or the corporate image

created outside, as long as a task is done anyway as

time is not a factor. But nothing could be more

damaging in this modern age than not to stick to

593


contracts, especially those that are time bound. Once a

task is done within bounds and above expectation, the

corporate image rises by that token, and customers

(internal and external), who are king, market the

organisation to many more clients. Having briefly

analysed the possible problem root causes, we now

proceed to give some of the possible solutions that

will hurtle SRC out of its present doldrums.

Firstly, the organisation must strive to hire and

maintain seasoned ‘known quantities’. It is not enough

that one is a professional but are they adept and apt

to do the job efficiently in a given time frame?

Secondly, the organisation must begin to be strict with

deadlines and timeliness. In other words SRC must set

realistic timeframes and work round the clock to

accomplish the task. The shorter the time frame, the

better. This hurdle can be surmounted by attaching the

right people to the right tasks. In short, people must

be equal to the task.

594


Thirdly, the organisation must only take up enough

tasks at any given time to avoid a situation where the

organisation fails to handle all the cases. Failure to

accomplish tasks reflects badly on the organisational

image. This calls for an honest introspection to

discover the capacity limits.

Fourthly, the organisation should ensure that

professionals attached to tasks are not interrupted or

interfered with at all. As the situation is, staff are

often being shifted from task to task midway and thus

their usefulness is drastically reduced, since their

energies are spread thinly across the organisation.

Fifthly, there is need to constantly motivate staff

either by remuneration, team work, challenges or the

right conditions of work. Other incentives could be

include giving them time off and not disturbing them

once on holiday. Although it is a good gesture to have

bought them cellular phones, conscious effort must be

made to minimize disturbances on the off working hours

or holiday times. Recognition of outstanding

individuals & teams must be catered for in the scheme

in one way or the other.

595


Sixthly, there is need for continuous training of

staff, not only while on the job but sometimes to take

refresher courses. Usually, in busy organisations like

SRC, the temptation is to work on endlessly without

giving staff a breather to “recharge” their brain

cells. There is merit in not only training but also

taking time off to do something different which is less

time framed. Training has a way of motivating and

exposing people to new experiences that would be handy

in future.

Seventh, quality standards must be jealously guarded.

ISO certification is recommended and lastly, if the

present section leaders or managers fail either to tick

or comply, they may need to be replaced. This extreme

recommendation must be taken with great caution and the

highest level of objectivity because replacing any

professional is very costly business. It is costly not

only in terms of cash involved but also training to

orient someone to align themselves to the corporate

expectations.

596


CONCLUSION

Thus, having looked at SRC, the survey team concludes by

stating that the organisation is potentially very viable

and able to recapture the lost market if only it works on

the delivery systems ensuring that quality and customer

focus are intertwined into the corporate culture of the

organisation.

Source:


McGraw-Hill 1998


How best can the company turn itself around into an even

more high performing staff team?

Point out some of Deming’s management principles in this

case. (Refer to the famous 14 points)


How best can the company turn itself around into an even

more high performing staff team?

597


The student should give more ideas outside the ones that

have been mentioned in this case. It would be good if

they could think through the case first and from

experience or what they research add new dimensions

either ignored or not raised in this case.

Point out some of Deming’s management principles in this

case. (Refer to the famous 14 points)

The case has many of the principles that Deming taught in

his famous 14 points as tabulated in his classic book

“Out of the Crisis”. Deming believed that 85% of the

problems in organisations were caused by Management

practice and policy. The student must identify these

ideas scattered across the case as well as other teaching

taught by other quality gurus.

598


Case study # 29

The following write up is based on an article that

appeared in The Post in February 2002 and talks about

technology. Read through the write up and answer the

questions that follow.

_________________________________________________________

____________

“Deaf go Mobile phone crazy”

For the long time, technology has been tailored

specifically for the totally physically able while the

people with disabilities have had their special needs

relegated to the terraces. But now the tide is changing.

One of the many ways this has changed is the introduction

of user friendly and specially tailored technological

gadgets.

The article “Deaf go mobile phone crazy” introduced a totally

new product by Nokia. Heretofore, cell phones have been

restricted to the domain of the able bodied user

clientele but with the advent of the cell phone that can

599


capture text messages and send them, much akin to the e-

mail facility, it is now possible for the deaf and dumb

to use the facility. From the report, the gadget can

capture data, process it and then send it to other

people. The vibrator on the phone alerts the receiver of

the message who opens and reads it. Thus, more and more

people can communicate in some way.

But what are the advantages of this gadget in comparison

to the rest of the mobile phones?

(i) The phone can be used by more people.

(ii) The phone is portable

(iii) It looks pretty much like the rest and

thus will not raise attention and curiosity from

on lookers.

(iv) Not very expensive to acquire.

In as much as these clear advantages are helpful, this

new technology has some disadvantages such as

(i) The text messages are short, clipped and often

incomplete sentences.

(ii) Propensity to be misunderstood – messages

600


(iii) Give greater problems to people who

prefer sign language to inputting the English

text.

(iv) Texting quickly becomes expensive and

(v) The short messaging service (SMS) may not be

immediately received.

(vi) Disturbs and interferes with nearby hearing aids.

Doubtlessly, the new Nokia 9210 communicator mobile

phone is an asset that will go down the annals of IT

history as one that helped open up the mobile phone

door to the deaf. It is expected that this technology,

albeit not perfect, will continue to improve each time.

What then are the implications to the MIS World? A number

of answers come to the fore.

(i) There will be increased communication among people

across cultures, physical health status and

location.

(ii) It will be cheaper and quicker to send messages

due to the portability of the gadget.

(iii) It will be more convenient to use the

mobile phone to send short e-mails as opposed to

the desktop or laptop.

In times to come, the phones will turn out to be proper

microcomputers that will do most of the functions a desk

601


top can do, only that it will be carried in the palm. We

eagerly wait such a time.

Source:

The Post, February 2002


What is the distinguishing mark of any Nokia product?

What accounts for Nokia’s success?


What is the distinguishing mark of any Nokia product?

No doubt, the distinguishing mark of all Nokia products

is the pervasive quality in all their phone products.

Nokia, a Finnish company, has been in the phone business

for some time now and has capitalised on its core

strength, ensuring that it is continuously improving on

its products to the satisfaction of its customers. The

phones have the right features, meet specifications and

are fit for use in almost any locality in the world. For

instance, Nokia is by far ahead in the Symbian technology

which makes their phones more flexible and ‘updatable’.

In addition to the product, there is a Nokia site which

continuously offers customer support and phone update

602


software. Thus, QUALITY products and customer care

distinguish Nokia.

What accounts for Nokia’s success?

As mentioned in the previous answer, Nokia has identified

its core competence and differentiated its products from

other phones on the market by embedding quality in all

its genuine products. The moment one comes across an

imitated Nokia product (whether from China, Malaysia,

Thailand etc) they can easily tell as well as verify

using special codes or consult the relevant internet

site. In addition to its quality products, Nokia has an

excellent after service support system which advices,

cautions or supports all Nokia users. The final thing is

that Nokia makes much of quality standards and ensures

that it remains ahead of all other possible competitors

by improving there by cutting a unique niche. For

instance, Nokia has been strong on Symbian phones,

software but not memory or music phone editions. This is

now being dealt with as Nokia releases many other phones

each with a specific focus and target market group such

as music, memory or PDA/smart phones. This move keeps

Nokia gaining more product loyalty for a long time to

come. Always focus on your core competence.

603


604

Case study # 30

UNION BANK GOES UNDER

On the morning of February 14th 2001, the Union Bank, a

force to reckon with in banking, suddenly closed its

doors to business. Like many banks before, it went the

way of the financial graveyard having been around for

over a decade and a half. But what exactly went wrong at

the Union bank for it to be shut?

Not much information was released in the article “Union

Bank goes under” which appeared in the Times of Zambia on

14th February 2001issue but for all we know, the bank

failed to comply with the Banking and Financial services

Act. The Bank, according to section 81 of the said

Banking and Financial services Act cap 387, failed to

meet its obligations. Two basic reasons have been

advanced, both hinging on financial ratios. It is a

requirement by law that any commercial Bank must maintain

at least three accounts with the central Bank (Bank of

Zambia) for it to be licensed to operate. There should be

a current account that can have any minimum balance. The

second and third accounts should be reserve accounts,

acting as a security in case of problems. The one is a

local currency account while the other is foreign. As at

the time of closure, the liquidity ratio had to be at

least 15% of all the total deposits but have since been

revised to 30%. This means that, If $ 10,000 is deposited

in a given month, $1,500 (15%) or $ 3,000 (30%) has to be

in the reserve account at any given time. Note that this

is a liquidity ratio computed by the following formula

Reserve acct balance X 100 = % Where X = 15% or 30%

at the present legal requirement

Total Deposits

Or shown by the liquidity ratio Current assets –

Stock = X Times

Current liabilities

This entails that all Banks should have a security

deposit with Bank of Zambia to show that it is viable and

able to pay all liabilities in case of any adverse event.

Furthermore, the above assertions also allude to the fact

that a bank should have a capital investment liquid over

and above the afore – mentioned percentage. Currently, it

stands at K3.75 billion or $ 125 million. Any drawings

“eating” into this figure would indicate that the bank is

in trouble and may shutdown. As such, the deposits must

be either equal or exceed with drawals at any given time

as long as the minimum K 3.75 billion is maintained all

the time.

606

In both those two cases (liquid core ratio and the

capital ratio) the Union bank failed to comply. It seems

the management were drawing from the core capital cash

and thus caused the central Bank to swiftly move in and

shut down the ailing Bank. We fear that many more

financial Institutions are on the “financial institutions

death row” as their liquidity ratios seem unfavourable.

Thus far, the following banks have sunk in the same

perilous waters:

1. The Bank of Credit and Commerce International (BCCI)

2. Capital Bank

3. Meridian BIAO

4. Chase Trust Bank

5. African Credit Bank (ACB)

6. Prudence Bank

7. National Savings & Credit Bank (Now resuscitated)

etc

In our thinking, ratios analysis is a critical indicator

of the health of a given company. Thus, the article and

subsequent ones are fair and accurate. If we were to

advise banks, we would hasten to point them to these

ratios as well as warn them against practicing illegal

things such as money laundering and “cleansing dirty drug

cash”. These taint the Banks’ image or indeed any

607

organisation. Many feel that since their fixed asset base

is big, then the liquidity ratio is immaterial – nothing

could be further from the truth! Let us watch those

ratios meticulously all the time!

Source:

Times of Zambia. Issue No. 11, 054, Wednesday 14th

February 2001.


Comment on the many Banks that have closed down in

relation to quality.

What do liquidity ratios indicate?

Suggested Case study question answers

Comment on the many Banks that have closed down in

relation to quality.

Obviously, the Bank closures noted on the Zambian scene

was not a pleasant sight, especially so that the economy

was in transition from the 1992 economic liberalization.

The changeover was in one sense very good and a time of

opportunity but in another sense, it was a disaster for

others. It would appear that the many Banks that went

under had very weak financial ratios and thus offered

poorer quality customer service which in turn caused some

to migrate to other perceived better entities. Some

608

however, like the Meridian Bank crushed suddenly because

of a capital flight when people heard unfounded rumours

that the Bank was bankrupt and would soon fold up. That

panic saw unprecedented withdrawals which sealed the

Banks’ fate. Despite the super quality customer service

and offerings, the Bank sunk. Many others were to follow

in the long trail of failed Banks, of which Union Bank

was such a one.

What do liquidity ratios indicate?

Liquidity ratios give an indication of the liquid

soundness of an entity at any one given time. They may

give the earliest signs of a weakening entity which

ultimately translates to other qualitative issues which

negatively impact on both the customer and entity.

609

Case study # 31

MARKS & SPENCER PROFITS CONTINUE TO SLIDE

Very few have not heard about the successful Marks &Spencer chain store of the UK. It is by far the number

one clothing retailer having experiencing phenomenal

growth for many years until 1998 when it bagged an

unprecedented profit of £ 1.2bn. But now, like many other

businesses, the growth and profits have eluded the chain

retailer lately. The company appears to be buffeted by

disappointing results from every front to the extent that

it has had to shut down a number of strategically placed

stores in mainland Europe as well as sell its US business

outlet. These developments signal a drastic reversal in

the hitherto prosperous company. What is happening? Are

things well with Marks & Spencer?

610

In the article, “Marks & Spencer profits continue to

slide” which appeared in the Wednesday May 23rd 2001 Post

issue, we see the company experiencing turbulent times.

It is still viable and is making strides to address the

adverse situation.

Marks & Spencer has had problems for some time now, and

as such, it has embarked on a restructuring program, so

far having cost a whooping £ 335.4 million. The goal is

to make the said company, agile, profitable and more

customers focused again, thus returning to profitability.

In order to carry out this mammoth task, Mr, Vendvelde,

the M & S Chairman, has put a number of strategies in

place. These strategies will ensure that sources of

finance are identified and utilized accordingly.

Largely, the cash will come from sales, disposal of

assets, closing of non–profitable centres, job cuts as

well as relocating from the expensive & luxurious Banker

Street headquarters office to the cheaper Paddington

Basin new head office. The pending job cuts for instance,

will reduce the work force from the present 3,500 to 1600

in 2003.

Having sourced the funds, the company intends to address

the problem areas such as the adult clothing division

611

where the problem specifically lies in the women’s wear

section. Once the exact problem root cause is diagnosed,

appropriate steps will be taken to reactivate that area

and any other. Furthermore, the retail chain store plans

to invest more in the food and services areas. Other

possibilities exist but in all the areas, greater quality

and appeal in a better store environment will be the hall

mark.

All these strategies look fantastic but as Vandevelde

quips, “The results will not be seen over night, but our

customers will see a gradual and progressive improvement

as changes take place”.

The risks associated with the raising of funds from

within is that the various stake holders such as share

holders may not be entirely pleased because the company

will appear to be shrinking instead of expanding.

Furthermore, the company may not declare big enough

dividends and thus lose stockholder confidence. Other

disadvantages could be the job losses as well as a

potential major shift from the traditional strength of

retailing into the service industry.

On the other hand, advantages come with raising cash from

within one of them is the minimizing of debt costs as

612

well as not changing the capital structure fundamentally.

In the long run, when the company is viably profitable

once again, the chain store will declare more and bigger

dividends. This is a survival time and the times demand

that the company mutates swiftly or risk tumbling to the

ground, like many others have done. The Dynamic

competitive business environment forbids M & S to stand

at ease but must of necessity act swiftly and

drastically.

We agree with the M & S strategy as long as a proper SWOT

and environmental analysis has been done. Also, we will

vouch for the M & S more if appropriate contingency

measures are put in place in the event of the worst

coming to pass. Issues such as a superb cash flow must be

guaranteed after the restructure. Further, we strongly

feel that these reforms must be implemented diligently,

prudently, slowly and cautiously. There must be a

continual reading of the environment to make sure that M

& S ekes out the best route.

After all is said and done, we have no doubt that we

shall continue to enjoy the high quality goods from Marks

& Spencer many years hence.

Source

613

The Post newspaper, Wednesday March 23, 2001. Issue #

1738, pp 8.


What has really caused M & S to tumble?

Do you subscribe to job losses and outlet closures in time of

profit loss? Explain your answer.


What has really caused M & S to tumble?

The real cause of the profit decline is not fully

explained in the article but some hints and indicators

are clear. Among the reasons which may have caused the

decline is that the shop chain probably expanded too

fast, diversified and thus “sucked in” all the little

excess cash that could have previously been available.

The other reason could be that quality standards had

declined considerably relative to new industry entrants

or other competitors. The diversification, although good,

could have forced the company spread its resources thinly

as well as spend more money in the non-core issues.

Do you subscribe to job losses and outlet closures in

time of profit loss? Explain your answer.

It is difficult to give a definite answer to this

question because people hold various views. Some firmly

hold that in turbulent global post modern times, life

614

time employment and job security is out. People must

accept the fact and prepare for the rainy day to get

another job once one contract comes to an end. As such,

they feel that re-organization and re-engineering are

ethically correct and the way to go. Others violently

oppose this view and think it is a violation of human

rights some what. They say that a job is a right and in

the event of separation, people must be warned and

prepared to transition well in advance with the company

bearing the larger cost of preparing people. Further,

they argue that instead of job losses, pay cuts across

the board for a n agreed period may be better than

sacrificing some people while the big fish get away with

it.

Thus, the student must clearly express the view on this

matter in the light of the current global crunch.

615

Case study # 32

Interview with start up local businessman,

Mongu

An interview was carried out with Mr Kudra Bashir whohappens to be the Managing Director at a small but

drastically budding restaurant in Mongu town – Western

Province. Kudra has been in business for the past 5 years

having engaged in various businesses from the Salt trade

to the current Food industry business. There have been

many challenges in terms of the growing fierce

competition but Kudra is not the type to be daunted by

such threats. The same gentleman hails from Uganda and

has studied among other courses, a Diploma in Business

studies. He intends to pursue either the ACCA or CIMA

qualification to strengthen his financial acumen. The

inter view is part of the fulfilment of the Advanced

Financial Management course for the MBA program. As

intimated, the interview was carried out with a view to

find out how Mr. Bashir, a seasoned Business and Finance

person, runs his organisation as well as his views on

other related issues. The said officer has travelled

widely and is greatly exposed in the region as well as

holding a short working stint in Namibia. Kudra is a

616

beacon in our times of someone who has combined Finance

with a strong management strategic eye.

Questions.

1. Please tell us briefly about yourself.

My name is Kudra Bashir and I was born in 1970 in

Uganda. I was raised and trained there until after

school when I left Uganda to go to Namibia to help

my Uncle run his business. I was there for six

months in which time I successfully ran the Motor

spare parts and textile business. I was so

successful to the extent that we opened an outlet in

Okahanja, outside Windhoek. Apart from managing the

entire business, my job entailed preparing the bank

reconciliation as well as maintaining the stock

levels. There after, I left and came to Zambia in

1996 when I linked up with my brother and started

assisting him with his business. With time, I felt I

needed to weaned off and start my own business.

Thus, I begun the first business in early 1997 by

buying groceries on credit from my brother and sold

them in the corridors of Mongu. My line of trade in

business was in groceries such as cooking oil and

salt. After succeeding, I opened up my present

business premises from which I have been operating

since. I am married with one daughter.

617

2. What have you studied and how long have you worked?

I pursued a Diploma in Business studies at the

Makerere University and then attempted another Diploma,

this time in Business Administration with the Cambridge

international College in England. I also did a local

certificate course in accounting called CABS

(certificate in accounting and business studies) I

intend to pursue professional financial studies either

in the Association of Chartered Certified Accountants

(ACCA) or Chartered Institute of Management Accountants

(CIMA), I feel this will help me greatly in my business

and financial prowess. In terms of my working

experience, I must say that I have not worked for any

place except in Namibia where I managed a business for

six months. Part of my job was to source, procure and

control the use of stock in the business. In short, I

was in charge of the sourcing and use of the cash.

After that stint, I went straight into business where I

have been both the MD and chief financial officer.

Among the things I do is to ensure that there is a

proper accounting of cash, planning its use and

controlling the budget. On the strategic plane, I am

always scanning the business environment to ascertain

the trading climate and then respond appropriately.

3. Just how exactly did you source the initial capital

to begin your company and how do you sustain it now?

618

As I mentioned earlier on, I started more or less as

a street vendor on behalf of my brother where we

agreed that I should sell on his behalf and any

profit margin there from would be mine. I worked

hard and saved some capital. When it was time to

open up my own place, I got a loan to cover the

fixed overheads such as rent and wages. I started

with six people working under me but I intend to cut

down by two, since the profit margin has not been as

much as before. Talking about sustenance, the

business has thus far sustained it self as the

income has been enough to break even. I do not

strictly get any outside help.

4. Have you been in one business only?

No, I initially began with a grocery shop where I sold

a wide range of goods including cooking oil from Lusaka

as well as salt from Namibia. These two were the

pillars of my business. In 1998, I opened a barbershop

and Photocopying services, alongside the grocery. I had

in mind to open up a business bureau but due to the

rising competition, I fizzled out this aspect and

remained with my core business. In 2000, I switched

from the grocery shop and went into the food business

where I feel comfortable, comfortable in the sense that

we have captured the market, less competition and have

619

a good customer loyalty. Our strategy has been to

produce high quality products and yet maintain lower

prices than our competitors. Many think that when the

quality is high, so also the price, but I think

otherwise. Thus far, I have been in this business and

no regrets!

5. How has been the business in the food industry and

where did you get the cash to start the same?

I must say that we are doing well though our profit

margin has narrowed though we are able to break even

and invest some. The source of my funds was two fold.

The first was to sell my old stock, keep the cash and

re invest it. The second was to sell some assets.

6. If I may ask, why did you pull out of the other

businesses instead of attempting to beat

competitors?

I could have but at the time, my strategic instincts

told me that I did not have the muscle to hold on for

long since my competitors were bigger, well

established, better net worked and had access to credit

facilities which I did not have. In addition, they had

the capacity to increase or reduce the price on goods

that would have been fatal for me. In short, they had

competitive advantages in terms of economies of scale

as well as access to credit purchases.

620

7. How long have you been in financial circles?

I can’t claim to be a typical financial specialist but I

think every person in some way is a finance person ,

though the degree varies depending on the profession.

That not withstanding, I have been a finance person

seriously fro slightly over five years when I begun to

apply my business training lessons.

8. How much money, on average goes through your hands

per year?

I have had varying levels of cash going through my

hands but I will give a very good estimate for the

businesses I have done before and now. In the

grocery shop, we used to make about K 300,000 per

day, which translates to about K 84 million per year

while in present business, we make about K150, 000

on average per day which turns out to be in the

region of K 40 million. In a nutshell, the income

fluctuates depending on the business climate that

day.

9. In your own words, what is Financial Management?

In my own layman’s definition, I would say that it is

how you source money and what you intend to use it for

so that it does not diminish but expands as well as

621

spent in such a way that priorities come first for your

satisfaction. It is basically the sourcing and use of

the money.

10. What type of Financial Management do you do

apply in your business?

I try to use the modern Management methods where we

build a teamwork kind of approach. I try to train and

motivate our workers so that they develop confidence

and do things on their own while I am out of office.

Though we are small, I look for ward to a time when we

shall be able to test our present applications.

11. What are the critical factors you consider in

making a decision?

Two things, Firstly, I consider the amount of profit I

will raise and the risk involved. In any business, the

profit and loss factors affect our choices, though the

bottom core line of any business is the profit

orientation. Before a decision is made in any area,

profitability should always be first. Having considered

the profit and risk involved, we must not forget the

leisure as well.

622

12. What is the difference between Financial

Accounting and Financial Management?

In my mind, these appear to be basically the same in the

sense that they are both in business, though there is a

difference. In my thinking, Financial accounting has to

do with collecting, processing and interpreting

transactions that have already taken place in the past

(by using the cash book and drawing up reports etc) while

financial Management may not necessarily involve cash

transactions but merely the sourcing and application of

funds. This means that in Financial Management, we are

projecting the source, planning the use of and how much

cash flow we expect to have during the period under

consideration.

13. Would you classify yourself as a Financial

Accountant, Management Accountant or a Finance

Manager?

I think I am a Finance Manager because I source funds

and ensure that it is used appropriately. I also look

for potential investment opportunities.

14. In choosing to undertake a project activity,

what are some of the things you do before making a

decision?

623

I look at the capital involved, the risks and the

returns expected. Another critical factor is the

competition at hand. In our present business the

capital was enough to run the same. The potential

cash flows were done as well as the estimates and

discovered to be potentially profitable.

Thus, one has to count the cost in terms of cost,

sources of finance, the competition, cash flow

estimates and the pay back period to recover the

investment.

15. How do you evaluate performance after

implementing an activity – the value of money?

We firstly set benchmarks and then periodically

assess how we are performing. We tell this by

reverting to our records on a weekly basis. I do

this on Sundays.

16. What are the key indicators in the question

above?

The key indicator is whether we are meeting our

targets as well as the profits yielded in a given

period, say quarterly.

624

17. Have you dealt in shares before? Why did you do

so?

No, I have not dealt in shares at all but I know what

they are. Shares are amounts of cash at the stock

market what one acquires to have partial ownership of

an entry in return to get a profit or dividends. In

other words, when one buys shares, they are buying a

portion of a company by investing money. They forgo the

immediate use of the cash in the hope of a better yield

in future.

18. At the Eatrite how do you fore cast financial

expenses?

We do forecast frequently so as to avoid unnecessary

expenses. When we forecast, we input our projected

income as well as the intended expenses before we

actually begin the expenditure.

19. As the business has expanded and mutated, how

have you managed it?

Initially, I started with 6 people but as we have

progressed and acquired skills, we have come to a point

where we need to cut costs. My immediate thoughts are

to reduce on staff and motivate the remaining. Thus

625

far, we have built a team culture and I motivate my

staff in many ways such as giving them a day off,

giving salary advances as well as giving them tokens of

appreciation. I also pay them timously every month end.

20. Has the expansion/growth been rapid or slow?

The growth has been there but slower than anticipated.

I am optimistic that we shall see better days in the

future.

21. Tell us about the discounted cash flow

techniques that you have used before.

I do not know them in details but it has to do with the

value of money now and in future. For example, what K1,

000 can buy to day will not be the same in two years’

time. Thus, the discount cash flow techniques have to

do with projecting values of cash flows, in

inflationary terms at a given percentage rate. In my

business, I am always conscious of the value of our

Kwacha and ensure I either invest the cash in stock or

assets. In that way, we beat losing the value for money

especially in high inflationary times such as what we

have experienced most of this year when the Kwacha

tumbled against the US $.

626

22. What are some of the financial risks you have

taken before, and how did you overcome them?

Business itself is a risk but the greatest risk I have

taken is going into a joint venture with someone with a

view to buy a capital item across borders. I trusted

him since we had done some business together before but

he disappeared after giving him cash. I keep hoping

that he will return as 3 months have already passed.

This has left me struggling financially but I know I

will pull through. Trusting someone was a major risk

because I could have run bankrupt but I will sale some

personal assets to source funds

23. I suppose you have been found in an

organizational restructuring process before, how

expensive was it and what were the results?

Not really except the changes we intend to effect in

our business shortly, then I will have and idea. It will

obviously cost money to lay off some one and to pay them

their terminal dues. As a result, we hope we can be more

efficient and save costs thereby increasing the profit

margin.

24. In your organization, how do you handle excess

cash?

It depends what you mean by ‘excess cash’ but in my

case, I do not have the excess cash in that sense of

627

the word because there is always need for more.

However, the times I get a bit of cash I reinvest it by

procuring assets or investing it in another viable

venture.

25. Do you classify yourself as a strict Financial

Manager?

Not really but I am very strict with my business

cash and investments!

26. What is your view about Historical Accounting

with respect to the modern trends towards inflation

accounting?

Initially, the idea of historical accounting is good

but the practicability of the same. You find that the

actual situation on the ground is different as assets

either appreciate or depreciate in value. The prudence

concept teaches us to capture the cost not the present

value. Therefore, the historical is helpful to give us

an idea of what value to attach to an asset so that we

can ascertain the present value.

27. How do you think Zambia/ your Organisation can

improve Financial Management?

628

I have always thought that education is the key.

People need to know the implications of financial

management so as to beat impulse expenditures. Also

people need to know how to budget, source funds,

explore markets and spend appropriately. This

applies to both my organization and Zambia at large.

28. What controls have you put in place to ensure

that the systems are on course as well as protecting

your back?

I ensure that people in the restaurant are given

specific responsibilities, which they fulfil across the

day. I have also put a system in place to control stock

as well as to record every transaction. Up and above

what I have said, I conduct a personal time-to-time

supervision, of course taking care to make them feel

responsibly able to handle their job without me.

29. Have you ever worked in a commercial company

before? If so, where?

As I early intimated, I have not seriously worked for

any commercial company except the Namibian stint and my

own business.

629

30. Do you receive funding and what is your role?

The answer to the above question is both a no and a

yes because I rarely get funds from outside. Even

the few times I get a loan, I ensure that it is

within manageable limits that I quickly service.

Generally, I determine to work within the limits of

my budgets.

31. I notice that you have some insight into

computers, where did you acquire all this knowledge?

I did a basic training course locally with the Systems

computer company as well as using a computer I bought.

I was quiet good but could have been much better by now

if I had not disposed off the Laptop.

32. How helpful is IT to your work?

I have not applied it much except typing some things.

Initially when I bought my computer, I intended to open

up a business bureau but I changed my business

strategy.

33. What finance packages are you conversant with?

630

I am not conversant with any Financial package.

34. Which package do you as Eatrite use and why?

At the moment, we do not use any financial package.

35. Kudra, you seem to be widely traveled, where

have you been so far?

Well, I haven’t exactly traveled far but I have been in

the region abit. I have been to Kenya, Tanzania,

Namibia, The Congo, Sudan and Zambia.

36. What are some of the titles you like and would

recommend to people?

The one I find most helpful is Frank Wood’s book on

financial Accounting. He does not only deal with

accounting but various finance principles.

37. Do you have any words to those would be Finance

Managers like yourself?

631

I would encourage them to aim for higher goals but it

is very important to have the basic professional ethics

and know the risks or profits of an undertaking. I

strongly recommend studying prior to launching into the

sea of business.

38. Do you have any Mentors that have left a mark

on your life?

Yes of course! I have some; one of them is my uncle in

Namibia, who passed on to the business acumen and

survival business instincts. I also learn from fellow

competitors though we may not have direct interaction,

by knowing what they do.

39. What are your future plans from here?

I intend to improve my qualifications as well as

expand the business! Furthermore, time and

opportunity permitting, I hope to diversify.

Well Mr Bashir, thank you very much for according me this

interview. I wish you well in your future endeavours.

Any time Billy!

632

====================================================

=======

Bibliography


Do you think Kudra will succeed? Why or why not?

What distinguishing trait should he employ to succeed?

What chances are there for Eatrite to sustainably succeed

and expand?


Do you think Kudra will succeed? Why or why not?

Certainly, Kudra will succeed if he implements all the

plans that he has laid down and mentioned in this

interview, such as pricing, quality and strict

financial/cash flow management which many SME fail to

master. Clearly, the market where he is operating offers

a lot of opportunity which the natives may not

immediately see.

What distinguishing trait should he employ to succeed?

As earlier mentioned, those three factors pricing,

quality and strict cash flow management. But quality must

633

pervade all these ensuring that the customer is

consistently treated well as masters.

What chances are there for Eatrite to sustainably succeed

and expand?

Eatrite can and will definitely successfully expand if

given the right leverage, attention and due diligent

attention. Sustainability comes in overtime as the

business is nurtured and grown like a child until it

becomes mature. As it expands, quality must be embedded

in everything to the end that Eatrite distinguishes

itself from the rest thereby cutting a niche.

634

Case study # 33

“TESCO to spend £2.25bn in Asia”

In its continued unprecedented growth rate, Tesco is

expanding by leaps & bounds. Recently, The Post Newspaper

of May 15th 2001 reported that the successful supermarket

chain was about to spread its wings wider as it

penetrates other regions of the world. This phenomenal

growth rate raises not a few eyebrows in business

circles. What after all is Tesco? Who is at the helm and

what strategies are in place? How is this growth and

expansion being managed? Is it sustainable? All these

answers beg objective answers.

For one thing, the article “Tesco to spend £ 2.25bn in

Asia”, does not give us much data about the genesis of

the said firm but one thing we know is that it is

probably the biggest UK supermarket chain. It has been

around for a long time and has been making large profits

to warrant its rapid expansion program all over the UK

and beyond. As a supermarket, the said chain deals in a

635

wide variety of goods ranging from fresh fruits, snacks

clothes and hardware, all under one roof. The great

advantage is the self-service and an excellent customer

focus, and response. The chain store has distinguished

itself in unique top quality service, goods pricing, as

well as the product type. For example the fruits and

vegetables are strictly checked when bought to ensure

standards are upheld. Also during their stay (fruits and

vegetables) on the shelf, they are constantly monitored

and replaced after a certain time frame.

The Terry Leahy (Group Chief Executive) led team is

simply marvellous too as they are strategically focused

yet intensely customer sensitive. Their management style

is equally good as it motivates staff, causing them

devote themselves more to the cause of Tesco. Thus with

such a progressive management style, good team culture,

strict quality control, Tesco is on firm rails to

success. No wonder it is expanding rapidly! As a result

of good strategic manoeuvres, the chain supermarket has

spread like gangrene all over Europe and is now making

giant strides to establish a presence further a field on

the International market. Thus far it has a presence

throughout Europe, Thailand, South Korea and Taiwan. With

unrivalled profits of over £ 1bn in April 2001, Tesco is

now making headway to consolidate its Samsung–Tesco joint

venture where it presently holds 81% of the stock. In

addition, in its quest to expand globally, it is to

636

increase the number of shops in Korea, Thailand and

Taiwan. Further future expansion is set to take place in

Japan, China and Malaysia. This is where the biggest

world economies have shifted to and for Tesco, the sky is

the limit.

In our assessment, the expansion and growth is within

manageable limits as the chain store is growing at rates

that are alright, not too fast nor too slow but

strategically optimum. The management style and strict

quality standards have won a multicultural market niche

and customer loyalty. This has opened a way to the

international scenario heading towards a global presence.

The company is not only concerned about the balance sheet

but the corporate image and customer satisfaction as

well. The continued growth brings with it a lot of

challenges, which need to be meticulously handled.

Circumspection and prudence have to be the hallmark of

any management team.

Thankfully, Terry Leahy leads an excellent team who have

the same strategic vision, goal, passion and aim for the

supermarkets. They all want to see Tesco rise higher &

higher in market expansion and stockholder returns. They

could have easily opted to limit the expansion to Europe

alone, by merely increasing the number of outlets, but in

this global economy, it is incumbent upon management to

637

sanction further expansions to all areas imaginable. The

shop tentacles must reach as far as possible.

By that token, the growth rate can be said to be

sustainable as this is not too much or too little. In

financial management terms, the growth rate equation

comes in handy. The said equation brings into perspective

the stock holder returns and satisfaction. Not only

should profits rise, but also the value of shares as

well. Thus, the equity growth rate is measured by the

following equation:

G = Change in equity

_________________

Beginning of Period equity

Where G = growth rate, the change in equity compared to

the equity at a given point in line

Thus, although the article does not directly mention, we

think Tesco is growing sustainably as the key business

parameters such as profit margin, asset turnovers, equity

ratio and retained earnings rate are all in good

proportions. As such the company is to spend a total of £

2.25bn over the next five years. We can thus safely rest

our case and watch the Tesco blossom further on to the

638

global market. Although it is tipped to expand at 10

stores per year until 2005, we have reason to believe

that the profits made as well as the reinvested cash will

effectively capitalise the expansion program. Already,

Tesco has 24 stores in Thailand, one in Hong Kong and

seven in South Korea, giving it a firm expansion point,

having carried out self SWOT analysis.

Source:

The Post News paper, 15th May, 2001 issue # 1732 Page 10


What one strategic weapon should TESCO use to succeed on the

Asian market?

Suggested Case study question answer

The one strategic weapon is to imbibe and foster total quality

throughout its systems and standards. From the write up, it is

evident that Tesco has taken great care to maintain product

quality and monitor it very well. This should be replicated

throughout the shop chain holding. Quality must pervade the

chain in other words.

639

Case study # 34

BAY BANK BOSTON

Handling community can be unsettling, if not traumatic,sometimes. Those companies and individuals that aspire to

work among and with the underprivileged must brace for

tough times of misunderstanding. They must labour to be

accepted as part of that setting or else their efforts

will be in vain. As soon as they appear, they are either

appreciated or repulsed on sight. If misunderstanding is

bad enough in a culturally more homogeneous society, what

more in a diverse cultured setting where minority groups

exist and strongly feel discriminated against?

This is the scenario that the Bay Banks Boston with other

Banks found their firms entangled in. While attempting to

be socially responsible and helpful, their efforts were

overturned and perceived as racially discriminative. For

a long time, the minority groups, especially the Blacks

in the United States have felt marginalised, side lined

and relegated to the poverty terraces, to the extent that

they have to literary survive. The situation at hand

depicts a situation where the local commercial banks,

having previously withdrawn from the non profitable

“Inner city” loan investments, were making a comeback. In

640

the quest to do so, a number of past practices were

exhumed from the data graves and splashed all over the

local media. This brought a lot of tension for a long

time, stretching right across the year 1990.

The said banks under the umbrella of the Massachusetts

Bankers Association (MBA), and headed by Richard Pollard

(Chairman of Bay Bank Boston) had realised the lack of

investment in house loans in the Boston area, where the

majority of the poor black and Hispanics resided. In an

effort to be socially responsible, they set out to

address the need. This was done in the most professional

way by applying all the required procedures such as prior

interviews, application, assessment and response. As the

case may be, certain critical information had to be of a

certain standard if one was to succeed. Unfortunately,

many of the minority did not qualify on account of their

abject poverty status and thus felt discriminated

against. The standards were universally the same, but,

unknowingly nor intentionally, 28% of the blacks’ loan

applications were rejected while only 10% of the whites

were. This revelation fuelled not a little heat in the

area, but was the bank guilty of discrimination? It is

difficult to tell but we have reason not to think so,

because from objective analysis of the data, the

procedures were followed and naturally, many failed to

score. Subjectively, were we in their shoes (minorities),

perhaps we would have felt the same, since the

641

qualification criteria was not exactly known.

Furthermore, on the objective plane, many people default

and have bad credit histories, how can they be trusted

with more cash? On the other side, the allegations must

not be entirely dismissed because the evidence shows that

the whites were “Coached” and given preferential

treatment despite being in similar circumstances with

their minority counterparts. Perhaps whites are

comparatively more honest and have a better good will, we

have no telling exactly. Remember, “there is no smoke without

fire” as the quaint ancient adage says.

However, if we were in the credit loan business, we would

also follow the same procedures and demand standards to

he followed, lest our company closes down on account of

bankruptcy. Another thing that ought to be noted is that

community always will feel they have a raw deal of the

national cake and as such, will fill their fellow

creature’s ear with the sad tale of their afflictions.

That is consistent with human nature, although where

possible, efforts must be made to mitigate the hardships.

As chairman of Bay Banks Boston, Pollard saw the

investing in the inner city as an opportunity for

expansion as many others had left this market unattended

to. This was to take place by opening branches as well as

installing 30 ATMs. Although not exactly profitable, it

was good to build a good corporate image in those

642

regions. As a senior executive at the bank, the issues

that would concern me the most is to develop a good

image, be seen to be positive, helpful and concerned

about the local development. The Bank had no option but

to stand as a shining example of social responsibility

and pro activeness in either giving loans or helping out

in any sustainable way so as to build personal capacity

in the natives. Thus, Pollard did well to initiate and

implement the above-mentioned strategies. These

potentially gave the bank a competitive edge. But having

asserted the above it is prudent to say that in all

strategic manoeuvres to create a good impression, care

must be taken to ensure that all procedures and standards

are upheld to the letter, shifting only where permitted

by head office. The principles are basically the same but

the application is what differs. Further, the entity

should equally be concerned about the allegations of

discrimination levelled against the Bank because these

have far reaching implications in terms of good will and

relevance to the community. No stone should be left

unturned to ensure that all that get loans have credit

worthiness and have a historically clean record.

After thorough investigations relating to allegations

raised, the Bank should issue a statement while working

behind the scenes to correct the situation if found

wanting. If not guilty, the Bank should candidly and

objectively explain the procedures carefully and rest the

643

case, of course looking for better ways to minimize the

future charges. The truth of the matter is that

complaints cannot be completely eradicated but only

minimized.

Following such a serious allegation, it is suggested that

the Bank retraces its footsteps and then makes amends. It

should revisit its polices, checking whether the charges

are biased or not and look for ways to reduce to future

offence. Furthermore, the Bank should look for ways to

help but remain strategically profitable. This may well

mean partnering with other banks or joining hands with

the state. Strategic alliances are helpful sometimes.

This is a common cause affecting all. Another drastic

move would be to withdraw from the community all together

or diversify to include other areas such as school

adoptions etc. Withdrawing has other adverse implications

and must be taken as a last resort. Aggressive marketing

must be stepped up consistently by issuing brochures and

adverts highlighting the positive good the Bank is doing

in their midst. The marketing should also show the

customer care focus and products on offer to them. For

example the advertisement should show that the bank has

come at their doorstep with ATMS!

For Pollard, the double work at the MBA and at Bay Bank

was a test of his mettle. From the reports he received,

statistically, it gave a hint of what was going on

644

exactly. Statistics are mathematical estimations and

conclusions, giving an idea. In this case, the impression

given was that the minority were rarely succeeding

compared to their white counterparts. This gives homework

for anyone for the statistics would affect the new

policies in the sense that future ones would avoid the

past bit falls that seem discriminatory. But as we know,

statistics change over time depending on a number of

factors such as the status, season, sample, time or

indeed information passed on. Another thing is that even

in interpreting objective statistics prejudiced people

are subjective. Apart from statistical findings,

political pressure mounts and will take various forms

such as demonstrations, new coverage or even violence, as

was the case in the Rodney King case of 1992. In our case

study, there was so much political heat generated to the

extent that the Banks were forced to bow down to some

demands and bring in some innovation.

The political environment must be carefully handled or

else this can derail progress. For example in the case at

hand, the politicians (and clergy) did not care for the

welfare of the Bank as to its sustainability but fanned

to flame all the negatives with their demands. Granted,

the Bank has responsibilities to the community as per law

and good practice, to go beyond profit, but equally, the

community should also be realistic. If the Bank can

plough back some benefit without being coerced, it is

645

commendable and raises the image but the new innovations

must be done in the context of a well balanced economic

strategy. In the case of the Bay Banks, the Bank

innovations must be sustainable while those beyond must

be backed by public funds or in collaboration with other

institutions.

Finally, Bay Banks and others can rise above these

problems, eke out a niche and prosper, if only they mind

the social corporate responsibility as well as plan

strategically to survive!

Source:




What is the best way to handle community projects/ social

undertakings?

Do you think Bay Banks were correctly positioned in that

market?

Suggested solutions to the case study questions

646

What is the best way to handle community projects/social

undertakings?

As rightly stated at the beginning of the case study (Bay

Banks), matters dealing with humans and human nature are

delicate and difficult to handle. It is difficult to come

up with ‘one fits all’ answer because whatever one does

for the less privileged, it is bound to be perceived

differently by the recipients. For instance in the case

above, the standards were the determining factors to get

a loan not race or skin colour. Humans will always find

an explanation to pacify their anger or failure. Thus,

the best way is contextual though some suggestions can be

offered. One way is to involve the target group right

from the start and walk with them through the project

cycle journey so that transparency and accountability is

your defence. In the final analysis, we settle for the

fact that we cannot fully satisfy everyone no matter how

we try though we should do our best to employ the best

practices.

Do you think Bay Banks were correctly positioned in that

market?

The answer to this question is both yes and no depending

on what angle you are looking at this question.

It is correctly positioned in the market if it exploits

the yawning gaps and opportunities left by other Banks

that have deserted the place. It also has an opportunity

to raise its profile by providing ATMs and other services

647

that have not been previously available in the Boston

area.

The Bank is not correctly positioned on the other hand

because it runs the risk of being labelled racist and

failing ethically. If those allegations persist, the

goodwill may crumble eventually and finally affect the

Bank. The Bank needs to define clearly why it is in the

area, whether to make money or just to make a name.

Having decided, then it can safely justify its existence

in the area, otherwise it may eventually even lose some

money to defaulters or outright robbery.

648

Case study # 35

Adam Opel AG (A)

On November 9th 1989, an epoch making event occurred

between the West and East German border. After 28 years,

the dividing wall of hostility obeyed gravity by falling

to the ground, amidst much jubilation. There had been a

world of differences between the Capitalist West and the

Communist East Germany for many years. Now the time had

arrived when least expected especially following

affirmation pronouncements of Honecker (77) for the wall

to crumble.

Following the events of November 1989 things begun to

drastically change in East Germany as the border was

opened to the rest of the world akin to opening the dam

wall flood gates, people poured into West Germany to look

for employment and also to experience their new found

liberty. Those were epoch making turbulent times indeed

for the political and economic scenario. Politically,

people were tired of many years of inhuman tyrannical

dictatorial leadership and were calling for a change of

649

Government rule in East Germany. At last the hour had

come.

Whilst still in power at the time, the communists had

ruled with an Iron fist, treating people like mere

“things”. They did not allow other political parties or

any opposing views to theirs. As such, any dissent was

drastically and firmly dealt with. Usually, it was

violently crushed so that others would be deterred. But

in those turbulent times of January 1990, a new political

breeze was blowing with people freely hoisting West

German flags, clearly stating their preference of German

unification. By the same token, the stubborn Communist

Government remained obstinately and tightly in control

but of course with lost ground, times had changed

drastically in the revolution.

On the economic front, East Germany, although believed to

be the most prosperous among the Eastern States lay in

ruins. The economy was in tatters, a weak currency, poor

and obsolete products that were neither competitive nor

desirable. Essential commodities were neither competitive

nor desirable. The said essential commodities were in

chronic short supply and very expensive by the same

token. The manufacturing industries were over staffed and

operating on huge losses.

650

The people employed were largely on family lines and thus

resistant to change. Due to poor circumstances and

polices, the economy was state controlled and as such the

market forces could not freely reduce the prices by the

forces of supply and demand as happens in Market

economies. In addition, the State had all hierarchical

structures; sentencing decisions to long wait before

approval or rejection. Bureaucracy was at its best and no

innovation or quality improvements were allowed. Many a

brilliant project died on the drawing board because some

political figures did not fancy the idea. Worst of all

was the rampant corruption that gripped all sectors of

the economy. This crippled or stifled any further

advancement.

As such, in January 1990, after the revolution had swept

across Eastern Germany, it brought about lasting changes.

A number of challenges and implications therefore

confronted Louis R Hughes, the Opel chief, as he

attempted to conduct a market survey with a possibility

to investment. Among the implications of the revolution

was that he had to tread most circumspectly, read the

political scenario, build relationship and attempt to

strike deals for investment. Obviously, the developments

in East Germany attracted scores of other investors to

the country, much like a moth to a flame.

651

In the motor industry, renowned companies such as the

Ford, Peugeot and Volkswagen were all clamouring to

strike some deal for either partnerships or buyouts. This

meant that Hugh had to act swiftly to outwit other

competitors. Although the economy had been State

controlled with a record of over employment coupled with

poor, derelict infrastructure, the future potential of

reaping benefits were immense. Louis envisioned using the

“native” nature of Opel as a competitive advantage in the

quest for market penetration. In future, it would mean

replacing the dilapidated obsolete machinery, raising the

quality, re–engineering as well as establishing a

manufacturing presence of international standards. All

these thoughts must have raced through Hugh’s mind as he

took steps to meet the Kombinat leaders in East Germany.

Obviously, one might have the financial resources but

lack critical timely information and the acumen to

network which in itself is perilous in business circles.

Therefore, Opel had to overcome some hurdles and grasp

opportunities that came their way. Some of the problems

faced were largely political. The Eastern regime still

wanted to hold back but the people on the ground demanded

change.

The top brass was highly corrupt, uncompromising and

refused to change with the times. Thus, to get things

652

done, one had to carry a bribe then things could be

swiftly and diligently attended to. But as at January

1990, things were slowly beginning to change though

bureaucracy and ceremony still held sway. Another problem

Hughes faced was language. He overcame this by hiring the

right people to assist him. In terms of opportunities,

they were vast.

The East Germany company leaders seemed enthusiastic to

have a change of products and management. It was simply

amazing to notice their honest object and willingness to

collaborate so as to change things for the better. One

would have thought that they would have stubbornly

remained proud to defend their obsolete poor quality

products, but not so. This was a grand window of

opportunity. Another window was the abundant cheap labour

nearer to Western Europe. Hitherto India, Korea and China

had been viewed as the cheapest but they were far flung

nations.

The East Germans were not only cheaper but honest and

well educated too. Thus, we can see that the labour

market was large. Another opportunity was the potential

17 Million market for the high quality “East German”

cars which would be churned out by Opel (Opel was

considered a German Company though wholly owned by

General Motors of the USA).

653

The options that Hughes had then were three fold.

Firstly, he had the option to concentrate on the western

market and not bother about the east; after all, Opel

could hardly satisfy the demands in West Germany. The

second option was to come to the East through the West.

This was advantageous because East Germans preferred and

believed that West German cars were better. The third

option was to simply go to other third countries where

labour was even cheaper than the East especially so that

if Germany was to reunite, the expenses would

dramatically rise to match international standards, thus

eroding the current advantages. All these three options

lingered in his mind as he tabled his case to other Board

members.

If we were in Hughes’s shoes, our arguments would be that

we go ahead and invest in East Germany for a number of

reasons. Firstly, the proposed investment, in our view,

is viable because the industrial sites are already in

place just needing changes. The complex designs are

already in place and once the modern cutting edge

technology is installed, it would be cost effective.

Besides, the labour market is currently plentiful.

Secondly, having established good relations and rapport

with both the natives and the key decision makers they

prefer Opel as opposed to other potential investors

because they feel Opel is indigenous and therefore known.

654

This is a huge opportunity for effective market

penetration. Thirdly, there is a lot of enthusiasm from

both sides to get to work together improving the present

chaotic status. Willingness is the key to international

trade. Lastly, the potential market is vast. A population

of 17 million speaks a great market opportunity. Besides,

the East Germans are educated and would willingly put in

their lot in design, marketing and selling the product.

Being aware that after presenting these arguments at the

February7th , 1990 GME strategy board meeting Bob Eaton

would not let Hughes go unscathed. Most probably, he

would want to know what the chances of success for Opel

are, how ahead of the other competitors Opel is, how

swift Opel is and what the over head costs would be.

Armed with our data “pack” all the queries would be

adequately answered giving him statistical data as well

as relevant qualitative information such as the accrued

good will and good corporate image as an indigenous

company, which others do not have, the company strategic

movements, networks established, prior meetings with the

Kombinant and also the fact that Opel have the right

cadre of people on board called “known qualities” in East

Germany. These arguments should put to rest all anxiety.

From a strategic stand point, Hughes’ goal to become

number one in the GDR is a possibility only if he comes

up with a sustainably organic fluid strategy. Presently,

Volkswagen carries the day but a good strategy could

655

dislodge them. The said strategy, among other things

should address quality and customer issues. There is need

to raise the quality to high international standards to

the extent that the customer is considered king, well

treated and served. In addition, the strategy should

include the setting up after purchase customer service

which includes repair stations all over the country.

Apart from carrying out frequent market research to

establish the customer needs and wants, the cars churned

out must be low cost and the right price for customers.

Furthermore, the strategy must address the networking

framework, which should involve befriending the key

decision makers as well as being community conscious.

This may well mean producing more ‘green’ cars that do

minimum harm to the environment as well as our

contributing to social needs and causes. In addition, the

Opel marketing must be consistently aggressive and

relevant. Hughes’ two-step multifaceted proposal seems

superb because it will ensure that 10,000 Opels are

assembled and serviced as well. The second aspect or

stage of bodybuilding is equally good provided this is

done at the optimum time and with the right

infrastructure.

If Hughes presents his case well in the Norstand and at

GME or OPG, we are optimistic that they will fully rally

behind him, though some might initially have some

reservations. The issues of political instability, labour

656

market, infrastructure would beg answering to clear some

minds. Hughes should convince them of the potential

growth market value, the willingness of their

counterparts, the cheap labour and the envisioned

political stability. Other issues such as eventual labour

cost rise and absenteeism could easily be dealt with by

introducing modern Management methods of teamwork, which

are not only cheaper but motivating as well. The weak

work ethics, unstable exchange rates and poor

infrastructure are part of the package, which can be

worked on and improved over time. He would have to show

them the long-term goal and benefits.

Despite all the hurdles that confronted the possible

investment. Hughes stuck to his Eisenach plan because of

the aforementioned reasons of potential growth, niche

potential, cheap labour and the potential 17 million

market representing 25% of the population. Having

assessed Hughes’ capabilities and insight into the East

German market amidst turbulent times, we think his is

potentially a good success chance. It seems his financial

and MBA backgrounds have shaped him well for the task.

Some of the pluses to his credit are his ability to

appoint and use German nationals to achieve his goals. He

created a team culture and built excellent relations by

the same token. His insight into the advantages Opel has

such as being indigenous, consciousness of a moving

target, contacting top business and Government leaders as

657

well as the focus on a market niche were all excellent

ideas deserving applaud.

Having said the above about Hughes, we draw a few lessons

for application. If a foreign investment is to be

undertaken successfully, the following points must be

taken into consideration. Firstly, the political

environment must be initially assessed. Is it right,

conducive and stable? What are the Government policies

and how will they affect the business? Secondly, the

social environment must be assessed. Is there appropriate

infrastructure? Does the organisation have the right

distribution channels? Is there enough and cheap labour?

Thirdly, the cultural environment and attitude must be

taken care of. Are the people open to investment or

xenophobic? How do they view us, as foreigners or

indigenous? Fourthly, the legal environment must be

looked at prior to launching out. What law will be asked

in the event of a dispute etc? All these must be grasped

and then applied appropriately as the case may be. These

were the issues at play when Hughes was surveying East

Germany in January 1990.

By that token, Opel achieved an early market leadership

in East Germany, having applied the right principles

mentioned above (i.e. political, social, culture and

legal assessment). In particular, Opel sold second hand

Opels, serviced and repaired them. It marketed well, did

a market survey as well as networked with the key

658

decision markers in the East whereas Volkswagen may have

over looked these and went ahead to use their good will

only. It could be that Opel was swifter in response

relative to Volkswagen. Given the above background, Opel

will retain its number one slot because of the cheap

labour, because of the reasons earlier advanced provided

the right business acumen is consistently employed. The

goal of becoming global in approach is another

competitive advantage for Opel.

Being global entails implementing and maintaining the

best standards that are ISO certified (international

standards of quality). It means Total Quality Management,

teamwork and modern management practices come into play.

This takes time to culture but armed with a visionary

leadership and determination, it is an achievable feat

for Opel. It may seem an insurmountable task but we are

confident that the Hughes led team will steer Opel to

success, let us seat tight and watch them perform!

Bibliography/source

Bower et al, Business Policy: Managing Strategic process,

8th Edition, Richard D Irwin

Phillip Coteora: International Marketing, 9th edition,

McGraw Hill

659

Case study questionsWhat do we learn about change in this case?

How best can it (change) be handled in relation to

quality?

Suggested Case study answers

What do we learn about change in this case?

Strategy must not be static but change with time.

Different contexts call for different strategies if you

are to be successful. When there is a transition from a

command to Market economics, there are great changes that

occur in the economy and later stabilise as things

harmonise. It is also a time of opportunity which the

astute business eye swiftly grabs for their good and

prosperity. This case also highlights the fact that

quality is non-negotiable and must be pursued at any and

every cost.

How best can it (change) be handled in relation to

quality?

As someone has aptly quipped that “the only thing that is

constant today is change” is probably correct in most

senses because it is practically impossible to remain

stagnant in a global economy. Many forces are exerting

influence on our lives today and it is thus only

reasonable to embrace change with the view to manage and

harness it for good. Change also entails that our

660

standards change a bit more frequently to a higher level.

Thus change has catalysed quality improvement.

661

Case study # 36

The Legendary Jack Welch and General

Electric Corporation

When Jack Welch took over as chairman and Chief ExecutiveOfficer (CEO) of General Electric (GE) in April 1981, the

once Legendary Company was again at cross roads. At 45,

he inherited a huge conglomerate that had a tall

structure, rigid operations, bureaucratic, and highly

diversified. The company; built originally to exploit

Thomas Edison’s patents, was too large and complex and

had thus become inefficient and potentially

uncompetitive. Not only was it in many businesses, it had

a large work force and had been divided into multiple

smaller Strategic Business Units (SBU) and yet with only

a limited successful life span. A solution had to be

found, and that came in the person of Jack Welch.

Jack Welch has been known to be a maverick, tough,

determined and resilient in his approach to management.

An only child and holding a PhD, Welch is the man of the

times as he has managed to achieve the unimaginable, due

to his foresight, candour and resolve to succeed. As soon

662

as he took over the mantle, he commenced his momentous

revolutions by assessing the status quo and what ought to

be done. He discovered that GE, though admirable, was in

effect not as competitive as it ought to be thus, the

changes of restructuring & re engineering the

organisation. This meant among many things, destaff (down

size) by 34%, giving more lee way to managers, developing

a team work culture, brain storming, adopting an open

management style, being customer focused, working in

partnership with stakeholders as well as aiming for

perfection in quality. Impeccable excellence has been the

goal. He achieved this by hiring the right staff while

relieving those that were not ready to change. As a

leader, he has always been visionary, articulates the

vision, & passionately owns the vision and relentlessly

drives it to completion.

By 1993, GE had achieved the unimaginable. It was by far

the most complex and yet agile company. It had a lean

work force, was continuously learning was aiming for the

1st or 2nd slot in every business and where not possible,

it pulled out so as to concentrate on its core

competences. It is on the road to success but certainly,

the strides hitherto are significantly great.

But how exactly did Jack Welch accomplish these shifts?

What roles did he play? Reading through his profile, one

663

concludes that he had certain leadership traits which

translated into action. For one thing, he broke down GE

into smaller manageable semi independent businesses with

managers freely making decisions on critical survival

decisions. For another thing, the Organisation was at

cross roads, whether to continue marching to the company

bone yard or to mutate and live. Change was inevitable.

Thus the changes needed a maverick, clear and

strategically minded person. Welch, qualified on that

score and went ahead to take bold fearless steps, setting

goals and targets. He determined that GE should be better

than the best in all areas. But as one would expect, his

innovations were opposed, as they tended to threaten

people or put them on edge all the time. Change is

generally resisted but he undauntedly faced the

opposition.

In the quest to improve GE after the rapid positive

changes, which left thousands jobless, the organisation

adopted a continuous training approach where everybody

attended some kind of training. For chief executives, a

program called “workout” was instituted in 1989 where the

managers would go off to some location to brain storm,

exchange ideas, recharge their minds and dream up new

routes as well as share methods of best practice. Rather

than discussing plans, GE executives discuss strategies,

which they implement in their various companies,

depending on their mission statement. The heart of the

664

workouts is to bring about cultural changes overtime

assuming and knowing that change is resisted at all

times. Looking at the Lincoln philosophy and Jack

Welch’s, one cannot fail to see that in principle, they

are similar, only that Jack Welch is more aggressive and

operating in a more hostile and dynamically competitive

environment. Lincoln thought customers, suppliers and

share holders were to be treated well in order to

maximise on benefits, so does Welch. However, there is

one fundamental difference between Welch and Lincoln’s

style. Lincoln was highly individualistic and rewards

depended on output while Welch believes in reduced

numbers of work force while paying more as well as

getting higher profits with a thriving team work culture.

When compared to other legends such as Riboud, Barnvik or

Mccoy, one notices that there other people were excellent

managers but conventional and working within a framework.

Welch is different in that he believes in constant

unpredictable change- his maverick traits again rear

their heads.

Looking at GE today, it looks very fine and alive once

again, especially as it crosses into the 21st century. A

new lease of life has been infused into it and as such,

we can optimistically look to the future for greater

things. Sail well O’ GE.

665

Source:

Bower, Bartlett, Uyterhoeven, Walton. Managing strategic

processes, 8th Edition, ISBN 0-256-115191-5) Richard D

Irwin.


What do you think about ‘workout’ with respect to team

building and strategic thinking?

Do you consider Jack Welch the regular CEO? Mention some

traits you admire about him.


What do you think about ‘workout’ with respect to team

building and strategic thinking?

It is an excellent technique depending on your

organisational work culture. In itself, work out includes

aspects of serious brainstorming in a conducive

environment where people just abandon themselves to

dreaming and thinking, sometimes mentally simulating some

ideas which they later document and apply where

necessary. Its more than just a talk shop but involves

serious intentions to implement as well as derive best

practices. In the workouts, no one emerges winner but

everyone benefits and thus builds the team. Some of the

best brilliant ideas at GE were probably generated in

those “workout” sessions.

666

Do you consider Jack Welch the regular CEO? Mention some

traits you admire about him.

Welch is clearly a maverick, one of a kind CEO. His style

and manner of doing things remains unique to this day

because the gentleman was his own man provoking you to

bring out your best. He would push you to the wall until

you brought out what exactly you wanted and intended and

then he would pick up the ball and run with it as if he

were the originator.

Some of the traits admirable about Welch are listed

below:

He was passionate about continuous improvement.

He was open minded and ready to learn from anywhere or

anyone regardless of status, rank or position in life.

Ideas were his meat and drink.

Jack was never satisfied with the status quo or the

seemingly “good Corporate image” that GE had and turned

the company upside down until it was the most admired

company in the world.

He was not afraid to make decisions and ready to take the

ramifications of any of his decisions.

Welch is a systems thinker as well as one that thinks

outside the box.

He loathed mediocre quality output and ensured the six

sigma worked for GE.

667

Case study # 37

Harcourt Brace Jovanovich, inc.

For a long time, General Cinemas (GC) had been one of themost successful businesses holding the industry

leadership. It achieved this through many strategic

manoeuvres such acquisitions of profitable diversified

businesses. One of these was the Pepsi bottling agency,

which it sold at the all time industry record of $1.7

billion. This sale, by all counts was monumental,

releasing a lot of disposable cash flow, which GC had to

spend. As is the trend, the cinema business had fallen on

hard ground lately and there was need to diversify.

It was this critical decision that captivated the GC

executives on 14th December 1990, led by Richard A Smith

to ponder up. The issue at hand was whether to acquire

another company, Harcourt Brace Jovanovich, inc. or not.

Was it going to be justified? How potentially profitable

was HBJ? Would it add value or be a mere liability? These

and many questions begged answering before any strategic

decision could be made. Tabling the issue before the

board, Smith brought along some experts who were going to

throw some light on the HBJ purchase potential

668

The decision largely depended on whether the purchase

would be in line with the corporate goals as well as

whether this would add any competitive advantage to the

organisation. In many ways than one, the purchase of HBJ

was the major step into unknown “territorial waters”

since HBJ’s business was largely in the book publishing

industry. While General Cinemas’ primary objective was to

“create value for its share holders by providing a total

return–appreciation in the market values of its shares

plus dividends well in excess of the rate of inflation”,

it was critical to consider diversifying in another

industry that was relevant, sustainable, potentially

competitive and manageable. The Cinema business was in a

slump, hence the need to diversify. But what exactly was

the HBJ like? How did it feature on the industry?

From the data available HBJ was potentially very

profitable, although had been losing a lot of ground for

the years 1987-89 and for a good reason. Before advancing

the reasons for the dismal performance, it is fitting to

state that HBJ was in at least 5 categories where it (GC)

did business and stood within the first 4 slots of market

leadership. It was basically the book publishing industry

where it produced college texts, elementary and high

school texts, text publishing, professional journal

publishing as well as the legal texts for both

undergraduate and post. All these were opportunities,

which needed to be strengthened to achieve market

leadership, with a little more capital outlay and

669

strategic planning. For example, in the legal/bar review

program, the company held sway of the market as most of

the standard texts in law were bought post and

undergraduate students. Having said the above, we return

to our earlier intimation that HBJ, unfortunately had

been in declining market share stage, what were the root

causes, if we may enquire? A number of reasons may be

advanced but the following immediately come to the fore.

Firstly, there was a clear lack or weak “disciplined”

leadership resulting from not being focused or changing

with the times. While other competitors were carrying out

frequent market researches, continuously improving and

responding to customer desires, HBJ was slow and in some

cases did not change at all. Secondly, product

development had been extremely slow, almost non–existent.

There were rapid changes such as customized publishing,

changes in desires by the states or indeed new

developments in the industry that needed captivating. The

third reason was simply a failure to achieve its goals of

rapid curriculum development or market expansion

strategies. For instance, its market fell from 8.1% to

7.0% of the market share. Fourthly, the declining HBJ was

failing to cost key popular authors to sustainable remain

with them. As such, from being a giant, HBJ was slipping

from a secure position and needed urgent capital

injection to reverse the trend. But what were the key

success factors which would revitalize HBJ? The following

needed to be addressed immediately: In the first place,

670

there was need to reassert the leadership for selected

disciplines rather than spreading capabilities across

many areas, “spreading resources thinly” as it were.

Where there was a competitive strength and advantage,

there resources should be directed rather than investing

for the sake of it. Secondly, there was need to attract

and maintain a strong well tasted and renowned editorial

staff who were ready to change with times while keeping

focused. In the third place, there was need to train

sales staff to sharpen their prowess. Their customer care

and marketing skills needed consistent serious attention.

In effect, the entire company needed to develop a culture

where everyone was a marketer and sales person, keeping

customer priority all the time. From the afore mentioned,

it is clear that HBJ is potentially very competitive if

it maps out a clear strategy which will eke a niche for

it as well as propel it to greater market expansion.

While desiring to expand, it was critical to “read the

times”. What were the trends at the time of the

acquisition probability? The present trends then were the

states, increasingly were conscious of their own peculiar

needs and thus had boards that determined which

curriculum books and publishers to contract. Secondly,

there was a noticeable increase in the number of students

of diverse background. The market was no longer

predictable and uniform. Thirdly, there was an increasing

skill gap in the classroom as the student had different

671

orientation and training in their backgrounds. There has

also been a decline in enrolment in some sectors.

As for the future, the trends were leading to a greater

fragmentation where customers would call the shots. In

other words, each customer would order and buy what they

needed specifically. Another trend was the integration

technology in the classroom. This means that as we move

on to CD ROMs, Videos and Computer Software as they will

increasingly be the norm rather than hard copies. It has

a way of condensing large volumes of data, books and

information cheaply and information on a CD. This

curtails that people will access information cheaply and

quicker. The other trend will be the growth of potential

international markets, spanning international boundaries

hurtling towards a global setting. Furthermore, there is

an emergence of the used books wholesalers, photocopying

and the difficulty to keep customers loyalty as quality

improves. The implications therefore for HBJ and GCC is

that they jointly have to work on ways on ways to handle

the changes so as to “keep above the water”, far ahead of

competitors. Firstly, there must be a strength, weakness

opportunities and threats (SWOT) analysis and then

proceed to carry out market researches (local,

international or global, as the case may be). Thereafter,

a curriculum must be developed while closely

collaborating with the state and academic officials so as

to come up with exactly what they want. If this is done

672

quickly and frequently, it will guarantee sustainable

market growth and leadership. Lastly, there must be

production of the materials, providing for some free

gratis copies foe instructor and teachers. Accompanying

the products must be the initiative to deliberately

orient the new and young inexperienced instructors. These

are some of the avenues to capture and maintain

leadership, apart from hiring the right people in the

right places.

In our view, the possible acquisition makes sense because

the said company already is an established company, with

a lot of good will and good book brands. Its

international presence is another plus. We say it is a

good buy guardedly though, as long as certain parameters

are put in place. The debt issue must be addressed, the

focus must be set, mission statements clarified, the

revision cycle shortened, more cash flow injected into

HBJ, manufacturing costs selling costs reduced (Through

employing team work, TQM etc) as well as being willing to

wait for some time to get returns. Marketing Strategies

must be sharpened and intensified as well as the constant

reading of the market trends. HBJ/ GCC must be customer

sensitive, flexible, agile, responsive and exploit the

latest cutting edge Information Technology gadgets

extent. It is risky but an excellent opportunity if done

on time bearing in mind the advantageous nature of things

like bank bonds.

673

Looking into the future, we do so with a sense of

optimism to encourage General Cinema to go ahead with the

purchase, provided the safety gadgets are in place!

Source

Bower, Bartlett, Ufterhoeven, and Walton, Business

Policy: Managing Strategic process, Richard D. Irwin


What do you think about corporate integration?

What does this case teach you about the value of a

strategy?

Suggest qualities of a good strategy.

Suggested answers to case study questions

What do you think about corporate integration?

This is good depending on the motive and corporate

strategy. Granted, the initial “teething” problems will

need contending with but if the integration results in

synergy and a right fit, this is encouraged. However,

investors must meticulously watch what they enter into.

As for the GC case, they are encouraged to go ahead but

with caution and strategic mindset.

674

What does this case teach you about the value of a

strategy?

This case clearly teaches that one has to be careful and

plan well long before venturing into something lest they

live to regret. Clearly, the case also teaches that

strategy must be organic and relevantly fresh to add

value or else that which was once a successful strategy

may turn out stale and out of date. If the strategy

implementers do not realise in time, resource wastage may

result. For instance, hard copy books are in danger and

face competition from e-books. GC must therefore ensure

that e publishing be incorporated as well.

Suggest qualities of a good strategy.

The strategy must:

1. Be ‘invisible’ to competitors.

2. It must be organic and flexible.

3. Strategy must be both long and short range in outlook.

4. Strategy must be both reactive and proactive.

5. Periodic strategy audits and reviews/evaluations must

take place if to remain relevant and competitive.

675

Case study # 39

RU 486

In October 1988, Edouard Sakiz, chairman of the FrenchPharmaceutical company, groupe Roussel UCLAF was caught up with acritical discussion regarding a new product RU 486, whether tomarket it or not. The said product, when used in conjunction withanother synthetic drug (synthetic prostaglandin) was 90% to 95%effective in causing a miscarriage in the first five weeks of apregnancy. The discussion outcome was critical because variousextreme reactions had been received from the public world over.Some pro-life groups violently opposed it and threatened legaland physical violence while other, pro-abortionists, equallylobbied for RU 486’s sale as they viewed it a mere reproductioncontrol pill.

Edouard Sakiz, a trained Medical Doctor was at the helm of theultimate sale of the drug developed by his company, RousselUCLAF, partially owned company by Hoecst of Germany. The personat the centre of actually developing this drug was Etienne –Emile Baulieu, also a Medical Doctor by training, who specialisedin the study of steroid hormones. He had made his mark afterscoring a number of successes but this discovery was not asapplauded as before, despite his claims to be attempting to helpwomen. He once declared saying, “I want to help women. I have notdedicated my life to abortion. I am not anti children. I havethree children and seven grand children. But women die in botchedabortion, two hundred thousand of them every year. Ru 486 cansave them”. These passionate words went unheeded as they wereviewed to come from a murderer. Interestingly, Sakiz and Baulieu

676

were long time acquaintances from University days and had workedclosely together. This issue was but one of their collaborativeefforts. What was Sakiz to do? Was he to sanction the marketingor not? What would be the implications on the organisationalimage? These and myriad other questions begged answering beforelaunching out full throttle.

As chairman of the organisation, Sakiz had a number of principalresponsibilities regarding RU 486. For one thing, he had toensure that corporate sales went ahead in whatever sphere as newproducts were launched. Like any other competitive organisation,he wanted sales to grow, and by the same token, satisfy thestakeholders too. The second responsibility was to be strategicin approach, ensuring that he mapped out a route that best placedthe company on safe rails of expansion. Thirdly, he had theresponsibility of steering the company in all types of weather,including turbulent times such as these to do social good. Thecompany believed that it had a strong social responsibility toplough back some of the benefits into the community that initself was a marketing strategy. But in the fourth place, therewas a corporate image to protect at stake. Many had threatened toboycott the products if the RU 486 product launch took place.This would dent the company image and have adverse effects on theoverall sales. Sakiz had to count the cost meticulously. How thenwere Sakiz and other Roussel executive go about making theirdecision on RU 486?

A number of ways could be suggested but we feel this is a verydelicate issue needing concerted efforts and minds to settle.People need to be united from the beginning. We think that thesemortals were firstly going to use the experience in othercountries, how it had been received, used and the effects. Forexample, in China (with the largest economy & population in theworld) and France, this drug was legalised although under

677

restrictions. In the USA, by 1988, the Reagan Administrationlargely rejected RU 486, although indications showed that theAnti–abortionist pulse was waning. They could have argued thatthe responses were relative and there for segment the sales tothe countries that allowed the use of RU 486.

The second way was to allow people vent out their woe as much aspossible and wait for them to cool down. Once people expressthemselves for a long time, they get tired and fizzle out. RU 486was new, and like any other new thing, change is opposed. A casein point was the initial introduction of the pill, which wasviolently opposed in the earlier years, but by 1988, it wastreated like any other medication so also the RU 486 issue. Inaddition RU 486 needed time to be accepted in people’s minds andall queries answered such as its side effects, success levels andany other unanswered question.

The third way forward though closely connected to the second,would have been to strongly establish a campaign to be open andshow the positives of the said drug, how it would help women andhow successful it was. For instance, it would help control theworld population that if unchecked would hit above the six Billonmark in 1999 or above. Thus if corrected, the world populationcould be contained leading to a healthier world. These and manyother advantages had to be highlighted. As to how exactly theexecutives were to go about deciding, in my view, they weresupposed to be open to each other, brain storm and come up with acommon decision on the way forward, whether, to go ahead with thelaunch, delay it or discard it all together. The implications hadto be weighed very carefully. If we were asked as to our opinionwhether the drug RU 486 should be marketed in France, China andthe USA, we would advise them to go ahead in France and China butmove slowly in the USA. It seems to me that the USA market wasnot yet ready as the decision had political and otherregistration hurdles needing many years to straighten out. In our

678

perception, the USA, being an open society, though religious wasto open up slowly. Depraved fellows exist in the USA in largenumbers who do not care a whit about ethics or life as long as itwas perceived good for them. They were pliable. Already,indications were that opposition was declining. By 1989, 59% ofthe US population thought RU 486 was okay and should be soldfreely to the States. The major hurdle was the Food and DrugAdministration (FDA) registration, which would probably take manyyears. A drug cannot be marketed in the USA unless approved bythe FDA whose procedures take six to ten years. My secondsuggestion then, is that while waiting for the market to “ripen”,they should register with the FDA either themselves or throughsome other institutions. Lastly, the company could sell by mailto individuals in those respective countries where this islegalised or acceptable.

The RU 486 case was indeed a complex one because any decision wasclearly going to go against the grain of many a society. Imaginefor a moment contending with the Catholics and the Pro-lifegroup? Perhaps we need to redefine when Life actually begins.

Yet in the same breathe, the companies ought not to abandon theirsocial responsibility. If I had my way, standing on a soundBiblical premise, we would have probably opposed the abortionBill because it goes against ethics and perceived as murder. By1988, over 24 million babies had been legally murdered in USA!That is an entire generation wiped out!! What would have beenyour take?

Source

679

Bower, Bartlett, uyterhoeven, and Walton, Business Policy:Managing Strategic Processes, 8th edition (ISBN: 0 – 256 – 115191– 5) Richard D. Irwin


What is your position on ethical matters raised in this casestudy?

Would you have gone ahead to sanction the drug developmentdespite the odds?

How could the company better handled the FDA matters?

Suggested Answers to case study questions

What is your position on ethical matters raised in this casestudy?

Students give their convictions from an ethical point of view.Let them express their inner most deepest feelings on paper. Theanswer to this one is relative coupled with one’s religiousbeliefs.

Would you have gone ahead to sanction the drug development andsale despite the odds?

From a purely business, health and humanistic perspective thedevelopment and sale of the drug would have been approved butfrom a moral and ethical perspective, this would have probablybeen stopped or opposed. Again, the answer is relative. Studentsshould offer their thoughts on this matter thereby demonstratingtheir analytical prowess.

680

How could the company better handled the FDA matters?

Applying in advance and stationing someone in the USA to followup matters. Further, the corporate image building antics shouldhave continued and approval statistics periodically reviewed.

681

Case study # 40

Smith & Wesson to change hands

When Greg Hutchings took over the reins of the Tomkins Companyas Chief Executive Officer (CEO), he immediately went fullthrottle to turn around the company. From a mere £ 17 millionpuny engineering firm to a global giant turning over £ 5 billiona year, Hutchins had achieved the impossible pending to be listedamong the management legends.

The once obscure, simple engineering firm begun to change fromabout 1983 when Hutchins commenced implementing his mammothdevelopment drive which among many things, included acquisition,expansion and diversification of the company business. As such,the Tomkins bought off many companies such as the Smith & Wesson,the Baker Rank Hovis Mc Dougall, Lawn mower makers, Murray andHayter, and grocery products manufacturer Red wing. It was a boldand risky investment venture but Hutchins undauntedly went ahead.For a while, all went well but slowly, change and decay begun toset in resulting from myriad problems rocking the company. Butwhat went wrong? Why did the company begin to decay afterglittering so brightly? A number of problems are highlighted inthe article “Smith and Wesson to change hands” that appeared inThe Post issue # 1732 of Tuesday 15th May 2001. The said articlebegins with the sentence suggesting that Smith & Wesson was toreturn into US hands having been owned for 14 years by the UKbased multinational, Tomkins. The article highlights the factthat as the Tomkins begun to expand into a conglomerate, it

682

became too large, bureaucratic, rigid unresponsive, complex andtoo diverse. As a result it was neither as focused norstrategically responsive to the rapid business environmentalchanges. In addition to the complexity and bureaucracy, a chainof lawsuits trailed the company. Sadly, the maverick CEO alsocontributed by abusing office that led to his resignation inOctober 2000. All these problems then, caused all thesubsidiaries not to thrive as expected.

The only way forward then was to reduce the probability oftotally running bankrupt by a change in strategy. The viableoption available at the time was to shed off the non-essential &non–core businesses, hence the selling spree that ensued. Thesechanges, although necessary, were costly in that many issues hadto be addressed such as reorganisation & restructuring costs.

Nearly all the earlier mentioned companies have been sold offwith Smith & Wesson as the latest (as at May 2001). The saidlatter company was purchased at $ 112m in 1987 but sold 14 yearslater at only $ 15m. Sources say that it is even a wonder that S& W managed to sell at all, since the company is battling tosurvive due to the string of litigation battles as well as itsshaky image back home having displeased certain quarters aboutfire arms sales.

The Tomkins financial crisis was so critical that the veryexistence of the company was threatened and needed drasticsolutions to rectify problem. As earlier intimated, this camethrough restructuring and selling off all the non – corecompanies, thus saving Tomkins. Today, it is slowly returning to

683

its directed goal of engineering. But why did Tomkins land inthis mess in the first place?

Source

The Post Newspaper, Tuesday May 15th 2001. Issue No 1732 page 14

Case study questionsWhy did Tomkins land in this mess in the first place?

Suggested Answer

(a) Case study question suggested answer:

Why did Tomkins land in this mess in the

first place?

In my thinking, perhaps the company initially had too much excesscash and decided to invest at any & every opportunity. It seemsthat no proper risk analysis was taken in terms of the companysensitivity, return on equity, net present value, capitalstructure and the cash flows that would ensue. Ideally, beforeembarking on any project, there is need to carry out a detailedcash flow analysis to predict how viable a business could be inthe short or long run e.g. 5 years hence. Thus, we can see thathuman factors of personal preference or the unguided quest toachieve and conquer were at play. In the end, the company is atthe brink of collapse. We clearly see that the fact that we haveexcess cash flow is no guarantee that the same favourableprovidence will continue, hence the need to be meticulouslywatchful.

684

With the sales gone and investment risk minimised, Tomkins can now shift its focus to its core – competences that will ultimately carry the day for it.

Case # 41

RICHARDSON HINDUSTAN LIMITED

Gurcharan Das took over the reins of the Richardson HindustanLtd (RHL) in January 1981 after an illustrious Internationalcareer with the Richardson Vicks International (RVI, Mexico) &General foods. Relinquishing an international job was a majordecision as this was the second time he was returning to RHL,only that this time as its President.

RHL had been a subsidiary of the RVI for a long time until Indiangovernment pressure forced it to change share-holding ratio from55% to 40%. Despite the changes, the RVI still maintained aninfluential position because it had its main decision makersstationed there. The forced change in share holding by theGovernment had forced other equally renowned companies such asthe Coca cola and IBM to leave the country because they refusedto compromise or dilute their share holding. Not so RVI.

As earlier intimated, RHL is part of the Richardson Inc of theUSA whose main product and strength lies in producing coldalleviating “vicks” and other related products to deal with theskin. RHL itself was originally formed as an engineering /building firm to construct a chemical plant for RVI buteventually took over the marketing of the RVI products from thelocal RVI branch.

685

This holding presence went on until the aforementioned changedRHL went through different Managements and eventually proposedcapital structure change despite many hurdles from the nativesand Government who viewed it as a foreign and exploitativecompany. In an attempt to overcome these challenges, the RHLManagement had tried to please the local conditions byparticipating in social activities and attempting to invest inthe community pleasing projects. In that way, the company avoidedsome tax. As time went on however, problem after problem surfacedand buffeted the organisation as people clamoured for influentialpositions as well as build personal empires.

It was at this critical time that Das was hired. He found adivided house. The company was cash strapped, morale was low,hostile labour, adversarial labour management relations and highmanagement staff turnover. Because of governmental pricecontrols, Management for years had stressed volume, selling atany price and producing at any cost. Furthermore, there wasjockeying for power, functional empires, international conflicts,obsolete traditional management style and low mutual trust. Phew!What a time to take over! But this was his inheritance and thushad to be determined to iron out the problems and burn the drossin the process lest he sunk with the rest. The first thing he didwas to assure RVI that all would be well and then went ahead tohire the right staff while keeping the marketing goal in mind.With the right people on board, he ensured that they werecontinuously trained until a team spirit and culture began totake root.

Having changed the attitude, his next task was to pacify thelocal conditions while maintaining good relations with theholding company. Parts of the local stakeholders were the

686

shareholders, customers and the Government. To do this, heembarked on product quality improvements, open participativeinnovation management style, customer focus as well as aggressivemarketing campaigns. It was whilst trying to please allstakeholders that he entangled the campaigns into producingayurvelic, a product that though socially helpful, was not inline with the RVI corporate products. To produce this would havemeant diverting from the original strong marketing bias tomanufacturing. This would potentially put him at variance withthe RVI, and yet it was critical for RHL to receive preferencetreatment from the Indian Government. No doubt, this initiativewas perceived as palatable and constructive to the localcommunity by local key stakeholders but not RVI. The secondthing, which was potentially controversial, was his proposal tosanction the production of dextro to be supplied to the RVI,which is the largest consumer in the world. Both these ideas weresuperb but would put him at daggers drawn with the RVI. This wasa risky step but inevitable in the circumstances and would onlybe justified if Das convinced them (RVI) that both these wouldkeep the international quality standards as well as the RVIregulations. These were bold steps marking out Das from otherillustrious managers like Koerber or Bartlett.

The advantages of the two major products (Ayurvelis and Dextro)were that these would firstly not only rake in a lot of profitsbut also boost the company image in that both the Government andcommunity would be satisfied. If you were in Das’ shoes, whatcourse of action would you take?

Source:

Bower, Bartlett, Uyterhoeven, and Walton, Business Policy:

Managing Strategic process, Richard D. Irwin

687

Case study question

If you were in Das’ shoes, what course of action would you take?

Revision exercise

How has the case study exercise helped you?

Have you been able to create case studies for your use?

What place does quality have in strategic thinking and planning?

Suggested answers

(b) Case study questions suggested answers

To case question: If you were in Das’ shoes, what course of

action would you take?

If I were Das, I would seek to present all my facts toheadquarters, statistical and otherwise. Having shown them, wewould highlight the advantages such as profits and corporateimage. I would point out the problems such as tax that could besignificantly reduced. I would also show them the team we lead aswell as their determination to succeed. All these persuasivearguments should carry the day, I hope. If others argued onpolicy and organisational international standards, I would showthem that our situation is a unique case and thus merited to betreated as an exception to rule. We would show them that this ispart of marketing and the winning of local goodwill for futuredays.

688

For Das, the appointment meant being a leader, a mentor,facilitator, and coach. He had to be visionary and determined tosucceed while keeping within the limits delimitated to him.Having been exposed widely, he thought he could summon all hisexperience, exposure and proven to lead an organisation so thatit would ultimately come up as the best subsidiary to RVI. Thiswas his goal and passion, evidenced by the changes that occurredshortly after his taking over as RHL manager. In the twinkling ofan eye, the once potentially defunct RHL was soon full of lifeand making headway. He viewed himself as one who motivated peoplewhether they be marketers or not, so that they have customersatisfaction uppermost of their minds. Despite his excellentefforts, complaints still lingered from certain quarters, whichis part of management. His was to lead RHL to conquer more marketwhile maintaining a high goodwill from all stakeholders. Lookingat Das’ prowess, he strikes me as close to Loy Weston except thatDas has acumen to articulate things and the patience to consultand negotiate. Weston, on the other hand, has no time because heviews himself as the decider on the ground. Once he sees a goal,he will go right ahead without consulting the head office andoffers no apologies for his actions.

Das is very calm attentive and prudent but equally decisive too,after wide consultations.

Having surveyed Das’ situation, I can safely assert that Das’ career options are many. He could choose to remain in RHL, or rejoin RVI and indeed go in to writing. Furthermore, he could also take up a political career as he has a heart for mother India as well as his strong benevolent pulse – In our view, we see a great leader in Das, slowly but surely budding and will soon blossom at noonday. His vision, strategic eye and focus merit out emulation.

689

(c) Revision questions suggested answers

1.How has the case study exercise helped you?

Helped the student to appreciate different scenarios related to

quality in live case situations. Helped student develop

analytical skills.

2.Have you been able to create case studies for your use?

Yes, if have been a careful reader and been practicing

exercises/reading.

3.What place does quality have in strategic thinking and

planning?

Very high, it is the “silver bullet” for success in the global

economy today and for a long time to come. It is critical and the

main thing in corporate, project or entity success.

Unit 9

Aim

690

The aim of the unit is to sensitise the student on the dismal

failures of TQM despite faithfully and meticulously applying

world class TQM approaches as well as to prepare the student for

any eventuality on the field.

The unit also aims to demonstrate that TQM is not full proof as

well as offer some antidotes to TQM failure.

Objectives


Know why TQM has repeatedly failed as well as challenges it faces

Understand the possible root causes of this bad trend

Formulate survival strategies for their own respective

entities/correct this TQM ‘malaise’

Quality challenges and why it fails“Where the super human fails to tick, TQM easily sails

through” BS

Although TQM has become a household name in many industries, high company or project failure incidences still abound. Many

once promising and well meaning entities have landed in the

corporate bone yard despite the frantic efforts to mutate into

profitable organisms regardless of the standard ISO certification

as well as meticulous stringent project applications. What

691

exactly goes wrong? At what point do myriads miss the road? Is

this confirming the long held suspicion that TQM is just a

passing fad? This unit briefly explores why TQM seemingly still

lamentably fails in some instances and what drastic remedial

measures to apply.

As earlier intimated, it is an established fact that Total

Quality Management (TQM) has been a buzzword in the last few

decades in the progressive industrialized western and far eastern

countries. In Japan however, TQM has been there slightly longer

than five decades dating as far back as the mid and late nineteen

fifties when E. W. Deming proclaimed quality principles as a lone

voice in the wilderness. Today, this is not only in discussion

form but is a goal sought after by every progressive organisation

across the world. There is increasing demand to embed quality

into all aspects of the processes and products such that TQM

becomes virtually invisible to the naked eye but automatically

permeates all spheres. It is, as it were, smartly intertwined and

internalised into the corporate culture. Unfortunately, there

have been myriad testimonies that have buffeted the “quality shores”

which suggest that TQM is a lamentable failure and just one of

the passing “Management fads”. Many have undertaken to explain

the root causes of such dismal failures among them being Brown,

Hitchock and Willard whose classic book “Why TQM fails and what to do

about it” gives valuable insight into the frequent TQM pitfalls.

There is scarcely any book on the market that diagnoses the

problem and offers tangible solutions as this book does. Many

692

other authors also state that it is one thing to have a TQM

program running in the organisation but it is quite another to

continuously score long after the certification process has taken

place. Hence, it is good to note that TQM is no guaranteed

universal panacea but an aid towards attaining the “silver bullet”

principles.

As we scan the TQM book plethora, it is fitting to reassert that

the no book provides a 100% full proof solution to organisational

woes but they merely contribute to the ultimate complex solution.

As Brown et al and other TQM gurus have rightly stated, the TQM

remedial books do not attempt to supply a magical answer for

success, but rather, they provide useful information to guide

efforts so as to avoid a recurrence of similar pitfalls in

future. This author presupposes that the readers of this unit by

now know what TQM is having somewhat dealt with it in a previous

unit. But just in case some reader has not done their duty, we

re-echo the question: TQM, what is it? Well, TQM can be loosely

described as that approach where the procedures, processes and outcomes of any

activity are of the highest quality with no defect at all. This presupposes that

quality is integrated within the system and activities need not

be repeated. Doing something once with all perfection is the goal

thereby cutting costs and raising profit.

Definition supplied by this author

693

The TQM failure scan commences with the examination of the

probable reasons why organizations fail to kick start or take off

during activation stage. Start up includes the initial stages

when the organization embarks on TQM initiatives. Myriad stories

abound of many companies that begun well but alas fell by the

wayside along the TQM path. Among the major reasons for failure

is basically lack of top management commitment. This is a

situation where management either does not support the

initiatives at all because some key people in the strategic orbs

do not see the relevance or do not believe in the importance of

the same. Grand statements are proclaimed in support of TQM but

in practice there is clearly no commitment from the top. In

short, they do not buy into the concept. Progressively, this

indifference trickles down to all departments. Some early signs

of such indifference and lack of buying in includes the over

scrutiny of any expense related to the TQM process or a mere lip

service without any firm commitment to the process by the senior

staff as well as the junior operatives. Another sign is lack of

deliberate awareness campaigns resulting in almost everyone in

the organisation being aware of what is going on. No emotion,

excitement, interest or even awareness is spontaneously

generated. Indifference reigns as it is a matter of duty. Why

should people lose sleep over something they are unaware of? In a

place where TQM information is the private preserve of the select

few, lethargy and sloth thrive the most because people have not

seen the idea value. In such an environment, it is possible to

694

have world-class internal control and processing systems and yet

come to ruin, as people’s hearts are highly indifferent. Yet

another deadly sign is when people fix their eyes more on the

balance sheet and cash flow rather than the real issue- customer

satisfaction. This is a more enduring lifeline as opposed to the

traditional cash centred organisation. The information age

demands knowing as well as anticipating the customer tastes and

trends and there by strategically positioning oneself long before

hand. Sadly, many do not want to spend much money on what they

perceive as a mere unnecessary cost centre. This mind set leads

to multiple sudden midway project abandonment as the profit and

loss picture begins to show reduced gains.

But how do executives more vividly and specifically show that

they are not committed? The following signs immediately come to

the fore:

1. When actions speak louder than words, they do not “live the talk”

but merely offer lip service to the initiatives without moving an

inch to support or denounce the moves.

2. When behaviour does not demonstrate commitment. For any

quality effort to succeed, it must be seen that the top

executives believe, support and are committed to the cause of

that effort. Commitment is an intellectual characteristic, a

personal attribute that cannot be mandated or imposed from

outside. It is something you believe in and demonstrate in your

695

practices. The absence of this shows itself in the way the

executives interact with customers by not caring or minding the

actual needs of the said people. This manifests itself when the

customer is not the moving cause of the continuous quality

strides. Furthermore, it shows itself with the time spent with

customers, the suppliers not considered as partners and the

little time spent on the shop floor. In addition, the time spent

attending quality-related education and training as well as

permeating it to other organisational staff.

3. Lastly, when the executives seem to mind too much the amount

of cash spent so that the initiatives are implemented as “by the

way” or scarcely sustainably supported.

Having highlighted the above, we briefly offer a number of ways

management demonstrates its commitment. These include learning

the quality related concepts and skills, embarking on a one-on-

one coaching rather than a bossy commanding approach, regularly

collectively reviewing the quality and customer satisfaction data

as a team, establishing reasonable quality goals that challenge

everyone to readily espouse the process, enthusiastically talking

about TQM efforts with employees rather than keeping them in the

dark and keeping information under “lock and key” limited to the

top executive orbits only.

696

All the above is achievable provided there is sincerity,

candidness, varying the time and frequently talking with people

on the work floor. Management By Walking Around (MBWA) is

critical and to some extent more thorough than Management By

Exception (MBE). The other trait is to implement home grown

popular quality improvement projects that all the people will own

rather than abstract ones. In addition, the efforts must be

allocated sufficient resources that show the importance and

centrality of TQM. Sadly, half the time, many organisations are

reluctant to provide for sufficient budget allocations to ensure

sustainability and continuity of the initiative. Lastly, the best

measurement and monitoring parameters must be installed at the

onset using the available state of the art technologies. These

appropriate measures could include the financial, operational,

employee and customer satisfaction. Incidentally, even employees

are “customers” of the organisation needing satisfaction that

ultimately motivates them.

The second major reason for the dismal TQM performance in recent

years is the poor timing and pacing of the TQM implementation

(Rapid strategy obsolesce). Some companies, though well meaning,

set sail upon the high quality seas with all the momentum and

robustness that can be marshalled without counting the cost. They

go to sea in a canoe instead of a Titanic ship equivalent and

thus sink just off the coast. The start up stage has ruined not a

few companies who have finally abandoned the entire project as a

sheer waste of time, resources, unworkable and unrealistic. On

697

the other hand, others have not read the times as well as the

pace of achieving goals against set benchmarks. Complete change

takes time and sometimes may take many years to realise. As a

known fact, change is often resisted and requires time, tact,

patience, perseverance, craft, smartness and a clear mind to

effect major paradigm shifts.

The third reason for TQM failure is when organizations waste

education and training, they do not tenaciously seize the

opportunity, as it were. That aside, although the organisation

may engage in staff training, the value, quality, effectiveness

and usefulness of the same may be questioned as it does not

translate into action, thus paying dividends. It is important to

have a deliberate continuous training policy that ensures that

people are constantly being trained to achieve maximum output. We

live in a dynamic world and as such, there is need to spend time

sharpening our selves so that we can successfully forge the

battles that lie ahead. A new skills set relevant to the times is

of essence. Change is the only constant at whatever level, and so

must our mindset be as well. Training and education may seem

expensive but actually, TQM proves that a well-trained staff

cadre are motivated, unleash hidden potential and ultimately pay

back tenfold to the organisation. In the quest to achieve zero

defects, training is paramount so that people acquire the right

skills and acumen to effectively articulate issues. Someone has

698

humorously quipped saying “If you think education is expensive,

try ignorance”

The fourth reason is the lack of short term, bottom- line results

where companies are told to expect instant tangible full scale

results in a short term. Although TQM is long term in outlook,

yet the organisation must sow quality seeds expectantly. They

should watch out for and record any small victories and

successes. It is these small strides that compound to make the

bigger picture over time. In as much as we should not be overly

expectant, there is room for this so that the vision and momentum

remain alive. Thus, the organisation must focus more on process,

not results, as the organisations’ scarce resources are poured

into the quality activities without demonstrating results. Always

remember that TQM is a process not a one off event.

In a nutshell, the first phase illustrates the fact that people

struggle to learn about TQM and its principles. Early efforts

generally involve implementing quality improvement projects by

using the tools and techniques of TQM.

Anonymous but Crosby the quality guru said something similar in his book “Quality is free” of 1979

699

What then can be done to increase the probability of succeeding

in implementing the TQM initiatives and sustaining them? What

tools can be employed to help future success?

Among the many ways to improve the success chances are the

following:

1. Justify the costs and timing of the TQM initiatives. This may

well mean taking time to compute and show the cost benefits of

engaging in the project. All arguments must be summoned to

show that TQM actually pays more dividends than what is

invested into it, though it may be long term in nature. This

should be done prior to undertaking upon the quality

initiatives.

2. Continuous staff education and training must be taken as

priority. People can only be motivated and learn to be

proactive when they are properly educated. An ignorant work

force is a sure recipe for disaster. Technology and practices

are dynamic, hence the need to be enlightened and kept abreast

with the dynamic times, if not ahead. Also, time must be taken

to enlighten people that TQM is not just another passing craze

but must be internalized to succeed. They must endeavour to

integrate quality into their own thinking system rather than

treat it as an abstract pilgrim management fad which is

independent of the very core business. For instance, project

staff must learn and appreciate the project goal, good

700

programming, grafting good and workable log frames, good M & E

plans, relevant indicators and assumptions. They must also

learn the best practices as well as laid down standards. This

demands time and repeated investment in staff development.

.

3. Implement the strategy while avoiding bureaucracy and red

tape. When the people are properly trained, as in (2) above,

and the strategy crafted, the organisation should ensure that

the right people and time are at hand. This should be done

within a framework that is flexible and avoid the old slothful

ways that take many years to effect tangible change.

4. Using the right measurements. The right parameters must be put

in place whether they are financial, operational, or other

appropriate tools/scales. The right benchmarks must be set up

and the key indicators securely in place. The project must use

verifiable indicators, implementation schedule, Gantt chart

and bench marking among many others to foster qualitative

projects and programs.

5. Watching the appraisals. The traditional appraisals tend to

discourage teamwork and continuous improvement as the

appraiser may use the time as an opportunity to settle old

scores. The new appraisals must aim at bringing about mutual

help and encouragement for both the appraised and appraiser.

701

This should be a time of retrospective self-review and a time

of setting new goals rather than a time of axing each other.

It should be a time of refreshing, charging the cells, as it

were. Projects must adopt holistic and objective relevant

appraising systems such as coaching for performance which

emphasises on-going staff mentoring or the 360* appraisal

which gives feedback on staff from more than one angle.

6. Watch the reward system. The reward system in place should be

appropriate, equitable, realistic, relevant and encouraging to

people. The system must be attainable and challenge the people

to greater heights of productivity as well as foster the team

work ethos. Both the executives and workers must be

compensated appropriately so that they all feel valuable. Post

modern entities prefer teams and team work over individual

star performances although this mode (individual) is equally

helpful in its own right.

7. Check the power structure, where does it lie exactly? Are

your employees empowered? Do they feel that they are equally

important stakeholders in these initiatives? Do they “own” the

moves? If the power lies only in the top brass and not shared,

by way of teamwork, very little will be achieved. Once

teamwork is in place, the number of hierarchical levels will

be cut tremendously, as people learn to overlap and complement

702

one another. Sometimes, the actual power does not lie in the

formal office but in opinion leaders. Half the time however,

power is vested in a few people holding high offices. Also the

structure which has multiple onion like layers causes

bureaucracy to encroach and build thus reducing the

organisational agility and flexibility. This detrimental

status militates against total quality attainment quest.

Empowerment of employees is crucial because as their

competence is built, so also their liberty and usefulness.

Said differently, there is need to check the power distance,

minimize the layers and promote a community team spirit and

environment.

8. Review the current management crop and beliefs to ensure they

are relevant. Half the time in the past, there was the top-

down kind of approach to management where the top brass were

miniature territorial kings. In other words, the boss reigned

supreme and passed all the corporate laws and decisions

without consulting anyone. Decision-making was the private

preserve of a select few. We have however arrived at a stage

where the managers are facilitators, change agents, catalysts,

mentors and coaches. From the “bossy” management approach of

yester-years, we have shifted to the strategic leadership

approach to management. Leaders are men or women who influence

other people towards a vision by moving them to unleash the

703

latent and hidden potential within them. By that token,

Leaders are team players and trust others.

9. Test the systems in place whether they are in perfect shape.

Are the sustainable? Do they leave any room for or prevent

defects and errors to creep in? Do the systems promote or

hinder further development? Are they appropriate and adequate?

Every effort must be made to ensure that the extant systems

are in such a way as to ensure minimal defects. Thus, quality

must be built and integrated into the system so that when a

product or service is churned out, there will be no need of a

redoing of the same. In a nutshell, are the systems enabling

or inhibiting operational efficiency?

10. Ensure a continuous learning culture is imbibed in the

organisation. Gone are the days when either someone

specialised in only one thing or the time when once one

studied a trade, they lived to use the same old knowledge

throughout their careers. The “this is how we have always done

it” syndrome is now obsolete. It is time to be open-minded,

innovative and creative, expect change as well as take as leap

strides if possible. The organisation must constantly watch

the persistent and constant changes in the environment and

then respond appropriately whether proactively or

retroactively. Kaizen is the Japanese buzzword for continuous

704

learning and improvement. Agility and flexibility marks out a

progressive TQM soaked organisation.

11. Encourage brain storming and best practices implementation.

Many organisations, though claiming to be learning

organisations, often fall into the reactionary trap of merely

adopting new techniques as a survival strategy. But

progressive organisations encourage and nurture brain

storming, innovation, creativity, documenting and adopting

best practices. The silver bullet often lies there. However,

staff are often apprehensive about imbibing new ideas rapidly

because the new strategy may just backfire into their job

loss, as Peter F Drucker has highlighted in his book “Concept

of the Corporation” of 1945. Staff need job security and then

you see just how fruitful they become! They are also afraid to

bring about new innovative ideas lest they stab themselves or

others in the back-they fear blame or loss. Job security

probably explains why the Japanese have succeeded from height

to height, although the recent global blizzards also threaten

life time employment there as well.

Finally, as one peers into the TQM future, after all is said and

done, it is envisioned that TQM will graduate from being a mere

buzz word to being the main thing, having addressed all the

tangible areas that affect the organisation. All indications show

705

that the future will demand quality in all spheres. Thus far, the

world has witnessed at least three revolutions, the agriculture,

the industrial and the mega technology revolution. Could we

safely assert that the quality revolution is yet another in the

making? The 21st Century organisation will only soar to higher

heights of competitive advantage only to the extent it flies on

the swift and golden TQM wings.

We trust that by now that we have sufficiently whetted your

appetite to go to the TQM source itself and mine the sweet truths

for yourself. We encourage you to spare no efforts in your quest

to find, read and lay your hands on the classic TQM resources as

they could make the difference between your fortune or doom.

BibliographyBeatty Jack, THE WORLD ACCORDING TO DRUCKER: The life and work of

the world’s greatest management thinker, Magna Publishing co.

Ltd, 1998

Brown Mark, Hitchchock & Willard, Why TQM fails and what to do

about it, Irwin, Inc., Burr Ridge, IL, 1994


2004

706

Henderson Gordon, “Quality is the key”, Banking World, October

1990

Kaswende Kingsley, “Bureaucracy complicates business process-

Swart”, The Post, September 29, 2005

Norton Bob, Testing for excellence in one week, Hodder &

Stoughton, 2000

Oakland John S. & Porter Leslie, cases in Total quality

management, Butterworth Heinemann, 1994

Oakland S. John, TQM: Text with Cases, Butterworth Heinemann,

2003



Schroeder Roger G, Operations Management: Contemporary concepts

and cases, McGraw Hill, 4th edition, 2008

Stevenson J William, Production/Operations Management, IRWIN,

1996

Vroman William H & Vincent Luchsinger, Managing organisation

quality, Irwin, Inc., Burr Ridge, IL 1994.

Case study 1

General Motors Corporation

707

A few years ago, General Motors was by far the most powerful andsuccessful organisation in the Motor industry. By all standards,

no other company could compare its market dominance, size or

financial muscle! By that token, General Motors Corporation (GMC)

bathed in its glory for generations. It is now over ninety years

old, which record is rare to have in these turbulent and

competitive times. To be around for such a long time is one thing

but to maintain leadership in a particular market is quite

another experience. Many companies have shot up like meteorites

and have disappeared as fast as they came. This has not been the

case for GM because it was the champion for many decades. How

ever, GM has not had it easy lately. It had a crisis in 1992 when

it recorded a net loss of $ 5 billion! It was at cross roads and

any decision to be made was definitely going to affect the future

of the company. But what led to this crisis? Why is GM

transforming today? These are some of the answers that the

article “Deeds, not Words” answers. This is a classic article

because it begins where GM went wrong and what it is doing today

to rectify the past follies. The following are some of the

reasons why GM nearly collapsed without realising it:

i. GM grew too big and powerful as a multinational organisation

after the Second World War. This led to Complacency,

stubbornness and arrogance.

708

ii. The company was highly focused on the financial figures,

variances, and profits not quality. The Profit and loss as

well as the balance sheet is what mattered most.

iii. The products it made were not as customers wanted them but

what GM deemed fit as “What customers were going to want and

buy” There was no consultation or choice for the buyer.

iv. The Management style was probably another reason. Since GM

was huge, there was a lot of bureaucracy before any

suggestion could be dealt with.

v. The quality of the products was taken for granted as of

standards that customers would like, not knowing that the

Japanese were rising slowly from the atomic ashes through

the legendary lectures of Deming and Juran.

vi. The company did not focus on its core competencies but

because of its size, GM took on many other businesses, which

were not competitive in the long run.

All the above led to the crisis of 1992 because the environment

had changed so drastically over the years while GM remained

static like monument. As earlier intimated, the Japanese entered

the Motor Market with superior quality products which ultimately

under cut GM`s market dominance. By 1991, the Japanese had

triumphed already!

709

A critical decision was made to restructure the mammoth Company

by carrying out drastic changes. Among the major changes

implemented was the down sizing of the central workforce from

13,000 in 1992 to about 1,000 in 1999. Further changes included

the following:

i. Adopting the best practices through out the system. Only

the best methods of doing things were to be in place. This

meant comparing how certain processes were done within the

international GM network and picking the best way to do

some thing. For example, a number of ways how to fit an

indicator on a car is tried until the best method is found,

having zero defects.

ii. Be proactive. The company had to be agile and flexible,

while anticipating customer taste changes.

iii. Meet customer needs. GM had to change to being customer

driven. What the customer wants is what carries the day. No

longer will GM determine for the customer. As such there

was need to be constantly be in touch with the customer.

iv. Reduce the product introduction cycle time. Previously, it

took many years to release a new car on the market, but a

deliberate move was made to shorten the period to months

and in some cases, weeks! We are told that GM plans to

introduce a new car every 28 days on average! Now that is a

feat but a necessity. This is to be achieved by having

strong teams that will brain storm and come up with new

models.

710

v. Do away with the businesses that are not directly linked to

the core competencies. These may be profitable but if they

are not competitive, they are to be divorced from GM so

that they can fly away to success on their own. This has

been the case with Delphi-once part of GM.

vi. Imbibe teamwork and continuous improvement. GM had to

improve in quality and also never again rest on its

laurels! This is the only way forward as time for

individualistic tendencies in the business is long gone.

vii. Include customers in the planning stage. These are both the

internal (employees) and the external. If these are

included at planning stage, success is almost guaranteed

because they will produce and buy what was agreed on at

acceptable, if not superior quality.

GM went full throttle and implemented the survival strategies.

Since the company is big, it has not been easy to steer it back

to leadership in the industry but the said company has scored

many successes, some of them unprecedented. The sales have gone

up while the market loss rate has reduced and the profits have

shot up again. From a net loss of $ 5 billion in 1992, to a net

profit of $ 2.3 billion in 1997, this is by all means a feat! In

five years, the Titanic Company is being steered to safety and is

definitely going to avoid the iceberg! As earlier intimated, GM

is in top drive to recovery though a few impediments still linger

in the way. The President, John F Smith, is optimistic that his

711

organisation will surmount all the hurdles because signs of new

life are clear for all to see. For example, the company will

introduce 23 new cars and Trucks within three years. Now, this is

speed indeed!

Among the major concerns is the fact that GM is still the High

cost vehicle producer in North America. That not with standing,

the important thing is that GM is on the right track having

thrown away the relics of the past that made it rest on its

laurels. It is gratifying to note that GM is determined to have

agility and speed as its hallmarks. In all these efforts, TQM

lies at the heart or else the giant will tumble and die!

The market leader of the 21st century must take heed of GM`s

mistakes and sail to safety while the `Market dominance day` is

yet young.

Source

Executive Excellence


What was the fatal error that GM committed and continues to?

How can GM get out of this trap which it repeatedly relapses

into?

What do you perceive the permanent solution to the losses that GM

faces?

712

Case study 2

Nike!

Nike! It is now a well-established brand and one hardly needs

explain to another. This goodwill clearly demonstrates how a

company can so establish itself amongst rivals and customers.

But what is the secret for this success? Who has been at the helm

of all this and what does the future hold for such a company? The

Company has been around for slightly close to three decades,

having started in 1972, using Mr Bowerman’s kitchen as a factory.

At that time, Adidas reigned supreme on the American Sports shoe

market. But today, Nike dominates the show. The swoosh logo

glides in the higher orbs holding over 30% of the market while

the next rival trails far behind at 19%. The curious question

still lingers in our minds, “what has made Nike become a

household name?” Studying said entity, the reasons are

crystallised in the following points:

713

1. From the beginning, most of the key people in Nike have been

former sports stars who by that token have had contact with

the customers as well as have had insight into what the

customers would want and need in future. As a result, Comfort

and design have been well catered for.

2. Quality has been at the heart of every product that has been

churned out of the factory. Knowing that quality not only

retains product loyalty, it also markets the product to other

potential buyers.

3. Teamwork has been internalised at Nike. It is not a mere

abstract buzzword but is part of the company culture. Teamwork

is a lot harder in a more complex company.

4. Aggressive marketing methods. Nikes’ marketing strategies are

second to none. They are all encompassing and leave no stone

unturned. With the Chief executive officer (CEO) at the helm,

every employee is involved. Further, Nike has signed contracts

with sports stars who market the brand effectively.

5. The people employed at Nike are those that have a strong

affinity for teamwork. Hitherto, team players have been

preferred to specialists. It has been primarily ability to

function not qualification per se. The team culture has permeated

through out the company. People are infected with the “team”

fever rather then being confined to a particular department.

6. Decision-making has not been confined to the “top brass” as the

only think tanks. It is gratifying to notice that the

management has realised from the beginning that the people who

714

know the market are those closest to it. As such, collective

brain storming has been the norm. Although the company does

not have regularised meetings, the said forums are excellent

times of discussions as contribution not “office” is

paramount. This liberty creates an atmosphere where people

feel heard and appreciated. As a result, they “own the goal”

once an agreement has been reached. Nike has scored a first in

this area.

7. Minimal structure level has kept Nike buoyant. A complex

company usually has a multi layered structure system. As Nike

grows more complex, there is a temptation to create more

layers of command thereby creating a big organisation that is

“top heavy”. This adverse situation has been resisted so far

at Nike although ultimately, formal hierarchical structures

will be unavoidable. Thus far, bureaucracy has been kept at

bay as this kills motivation, initiative and slows down the

development pace. The company of the 21st century needs to

remain fluid in order to survive competition, which Nike has

been hither to.

8. Low priced but high quality products has been a major weapon

Nike has exploited effectively. While others have priced their

products on a higher note, Nike has found a way of producing

low priced and yet high quality goods. This mixture is very

rare and hard to find in the same one product. Thus, Nike has

had economic products at attractive rates and superior

715

quality. This has been a way to under cut the traditional

giants in the sports wear industry.

9. Further more, Nike has been sensitive to customer needs and

wants. In other words, what is produced is what customers want

and need. It is probable that the customer is involved in the

planning stage to get what they want. It is also worth noting

that Nike has been constantly “reading the times” and has

always been alert to the changes in the customer tastes and

wants, which the bigger and more established companies have

neglected. Nike has been a learning organisation, being gender

sensitive too. This sensitivity is portrayed in the effort to

ensure women have out fit to their specifications and taste.

10. Continuous improvement in ways of doing things has been

imbibed right through the organisation. The founders have

always thought that there is always room for improvement and

as such, the products and services are always improving. The

Japanese “kaizen” concept has been internalised well and every

one is aflame with this passion. This is seen in the timely

production of goods, delivery and the constant product

improvements in keeping with the latest trends and

preferences.

11. Not overly controlling staff in their tasks but allowing

innovation and initiative to blossom. In other words, the top

managers have not dictated what ought to be done in a

particular situation but rather, they have and will give

general direction of what is to be done.

716

12. Excellent communication channels have been maintained

always. Smooth information flow is paramount to keep abreast

with the times. The key people must know what is going on in

the company at all times.

13. Nike has diversified in its products. Out of the factory are

churned out both shoes and apparel which caters for the not-

so-serious athlete as well. While maintaining the core

competence, Nike has developed sports wear for other sports

like golf, tennis, soccer and football. As much as 270

different products were on offer in 1983, and this trend

continues.

14. The captivating exercise trend in America has been a major

boost in Nike’s favour. Americans have generally fallen in

love with exercise because of its benefits health-wise. As

such, this has made many, even the not-so-serious athlete, to

purchase some sports gear, and obviously, the natural choice

has been Nike!

The above reasons then have put Nike on the map. It would be

grave injustice to leave out the main architect of this excellent

organisation as it would be akin to denying the presence of the

sun at bright noonday. The man behind the wheel has been Phil

Knight, a very aggressive and competitive man, who himself was

once an athlete. It is said that before leaving University,

Knight wrote an exam business proposal paper which he later lived

out as he advanced in his chosen business career. He teamed up

with Bill Bowerman, his former coach, in this venture. Initially,

717

Phil did not entirely throw his weight behind the small “Kitchen”

firm but later devoted himself to the same. As would be expected,

the first few years were turbulent, especially that the company

lay in the shadows of towering multinational companies like

Adidas. Determination is what counted. Having got off the

“teething” stage, there was no looking back for Phil as he

propelled into deeper territories. His acumen, insight and

management style immediately sunk into the company culture so

much that probably by the time Jeff Johnson, the first full time

employee jumped on board, the culture had been sufficiently

implanted. Knights’ management style is excellent because it

reflects the modern manager in action. Among his firm beliefs is

the fact that people should be given some leeway to do certain

functions with minimal supervision and interference, provided

they are given some general guidelines. In addition Phil Knight

strongly holds that continuous improvement is a must for every

flexibly agile company. His preference of team players rather

than specialists is very deeply ingrained in the team spirit

manifesting itself in the brainstorming sessions that he himself

instituted. In those meetings, status is cast away as no person

is called master- all are free to contribute, no matter how crazy

an idea. Unlike many a traditional leader, Phil believes that

the office is merely a vehicle to facilitate further efficiency

rather than an end in itself. Perseverance, insistence on

quality, resilience, consistency, customer sensitivity and the

robust marketing strategies are core assets that reside in

718

Knights’ chest. Armed with these convictions, Nike stands a

better chance to maintain its market top slot. But why should we

begin talking about losing the top position, since Nike is

securely strategically placed at market apex? Is there trouble

lurking somewhere? The danger is that the organisation has been

growing at an unprecedented rate resulting in a false sense of

security. It is feared that there is an unseen slothfulness,

stubbornness and complacency creeping into the organisation as a

result of three basic reasons. Firstly, it is the fact that Nike

is so well established such that other rivals are hardly heard

about. This alone makes the company staff to rest on their

laurels. It is feared that other yet unknown entities are slowly

making inroads into the market unnoticed and will undercut Nike.

The second danger is the size of the company. In a decade, the

company has grown from720 people in 1978 to over 3,600 people in

1982, meaning that the company has become too complex to manage.

Nike is at crossroads, where some formal structure is inevitable,

risking strangling many a cherished norm like brainstorming and

initiative. Bureaucracy will encroach and the company will become

slower, less agile and inflexible. Teamwork is now an endangered

species. The third danger that rears its ugly head is the fact

that Nike is now multinational. Hither to, it was a local brand

name but in the late 1970s, it scaled the national barriers and

plunged onto the international scene. Different people have had

to be employed from different cultures, backgrounds and views.

Sadly, not all appreciate the core values that have characterised

719

Nike from the beginning. In addition, maintaining a competitive

edge on the international scene is no easy task. The organisation

must meticulously use relevant, customer sensitive and dynamic

marketing strategies that are continuously improved. Furthermore,

the organisation structure must be kept minimal or risk retarding

organisational progress. Nike faces the dangers of feeling secure

on the market throne while the deadly gangrene is silently

spreading. These dangers are not uniquely for Nike alone but to

all gigantic companies.

In the quest to curb these ensuing dangers, Phil suddenly

appointed Woodell as the Chief Operating Officer (COO). This

choice was for obvious reasons when we analyse Woodells’ profile.

Firstly, Woodell is a former sportsman and has vast experience.

Most importantly, he has this administration prowess probably

second to none. Despite being paralysed in both legs, Woodell has

the acumen to handle operational matters better. As Nike arrived

at the complex crossroads, it needed some one best suited to

handle this fragile company needing to stabilise and yet continue

spreading its tentacles far and wide. In the same vein, it is

interesting to notice Knights’ eagle eye for the future and the

insight for the present times. Woodell will concentrate on the

daily operations of this titanic company, while Knight on the

strategic- the long-term goals of the company. This will give

Knight the time to concentrate on the external environment such

as the customer needs, anticipated trends, the changes in the

environment and formulate remedies. Although Knight could have

720

picked another person for the office such as Strasser, the man of

the times equal to the task was Woodell, who we trust steer Nike

out of the threatening operational hurdles.

Obviously, as Woodell assumed the mantle of the organisation,

queries were raised as to his suitability but we trust that

Woodell will do an excellent job since he has years of hindsight

and experience in the organisation. Having been around long

enough, he probably has insight into where the potential problem

areas might lie. As such if we were the one in Woodells’ shoes,

we would be positive about the situation, in that I would be

objective and face the problem head-on. My first task would be

trace where we have been, where we are and where we hope to go. We would do

this by firstly scanning through the entire organisation checking

for the human resource to hand. Then we would check out the

extant system to see whether they are compliant to the overall

company goal congruence. After that, we would also find out the

available financial and material resources to ascertain the human

resources development potentials. With these facts in hand, we

would proceed to brainstorm, alongside with everyone, the

possible routes to take. Since the culture of teamwork is already

deeply ingrained, my task is already half done. Hence, all we

would is to ensure that the present core values are enhanced,

minding the present dynamic complex setting. Furthermore, it

would be our goal to anticipate changes over the ensuing years

taking into account the instability in the environment and the

need to be flexible, agile, fluid, customer focused while

721

maintaining the highest quality product standards. We would also

want to motivate my staff by giving them incentives for

innovations and by adapting best practice methods. At a future

date, it may be necessary to diversify further, or to cut down

brand ranges and concentrate on core competencies as the case may

be. An extreme move would be to break down the company into

smaller units that are more easily run. Our overall goal would be

to ensure that amidst all these changes, the customer remains

king, is served on time and kept satisfied always. The keywords

would be the long held ones, though in a more complex setting. We

would fight the myopic view of being confined to a department but

would ensure that people have a broader picture of the entire

organisation in their minds. Our sense of purpose and mission

must be maintained with the same sharpness as in those early

formative years.

Nike will continue to grow at that phenomenal rate and, like

other multinational giants in other markets, Nike will soar to

still higher heights, far above danger!

Source

Bower et al, Business Policy, McGraw Hill,

.......................Executive Excellence, April 1999


What does the Phil Knight story teach you?

722

If you were to engage in a similar start up business, what would

you focus on?

Unit 10

Aim

The aim of this unit is twofold. The first is to demonstrate why

TQM appears invincible while the second is to activate

motivations for all entities to embrace TQM at every level.

Objectives


Appreciate TQM as a competitive tool

Consider TQM as standard bearer/trend setter

Quality now and in futureThe quality revolution has now reached unprecedented levels and global proportions, far more than what the original proponents

ever imagined in their wildest dreams although their firm

conviction on quality necessity was dead on target. They at one

time were lone voices in the wilderness and perhaps despised or

723

ignored by their countries of origin but now are venerated whose

legacy is sought after and perhaps improved upon. That is what

often happens with completely new ideas and innovations, they are

initially ignored, opposed and disregarded until proved useful or

another adopts them and succeeds. Then the sleeping giant wakes

up but is far behind. At one time, this author attended an

orientation program of a Palm tree plantation where the Project

Manager was explaining why and how the project was critical to

economic development. As he waxed eloquent, a number from among

us kept mumbling some doubting sentiments as to the viability of

the said flowery project until he made a land mark statement. It

went something like this: “This palm tree will reach full

commercial productivity by year six and those of you doubting

today and reluctant to join as out growers will realise too late

to benefit, as you will be six years behind!” This statement made

every one sit up and pay more careful attention. This is what

happened to the Americans when the Japanese bought into the

quality teachings of the Quality gurus of the 1950s and

afterwards. As we speak, Japan is probably the leading country in

quality matters as evidenced by their repeated success and market

share expansion over the years. If anyone thinks of the Toyota,

Sony, Mitsubishi, Nintendo, Nissan and Yamaha brands for

instance, the basic assumption is that these genuine articles are

of the highest quality and will meet, yea, exceed customer

expectation and satisfaction. Toyota for instance is probably the

leading motor company in the world, by passing General Motors,

724

Crysler or Ford which were at one time the undisputed global

market leaders. What is the secret of Toyota’s success if we may

ask? The answer is simple and soon told-Quality. Because of

excellent quality in all angles, the Toyota brand is cheaper,

higher quality, efficient and comparatively easier to maintain,

purchase or resale without much ado. These and many other traits,

today’s customer desires and will willingly pay the extra cash

for better quality-value for money. But then, that is partly

what the scenario is today, what will quality be like tomorrow

and beyond? Admittedly, it is difficult to state exactly where

this ever complex quality craze will lead to because so many

changes and innovations are introduced every day. What may be the

latest today may drastically be obsolete and out of date the next

day. At rare times, what was considered inefficient and out of

step yesterday may be brought to the fore once again with some

modifications of course. That is what happened in part to the

Saturn Five rocket engine or the record player disc which had

been trashed but exhumed because of their unique properties. The

Saturn rocket used in the Apollo mission project appears to have

been retired after 1973 but have now been adopted for the Aires

space vehicles that replace the Space Shuttle fleet after the

2010 retirement. Similarly, the record player disc (some form of

CD) of the 1970s was trashed only to see the light of day in the

late 1990s into the new millennium except that laser technology

was adopted this time. That is what technological development is

about, always changing and ever advancing. At the core of all

725

these innovations if the quest is to get better quality is the

need to ever innovate, create and fashion better products than

before. Thus, returning to our question about quality’s future,

we can safely assert that we are neigh already past the TQM stage

and fast advancing to other quality enhancing models that will

carry the day for us. For instance, Sigma six and PERT, including

many other innovations, qualitative and quantitative are on the

market, all clambering for attention and promising phenomenal

world class super profits and success for any entity that would

adopt them. Sadly, most of these innovations are probably the

same old ideas dressed in a modern garb or just mere passing

fads. But in the midst of all these uncertainties lies the silver

bullet. This calls for a stronger discerning eye.

That said, we can safely assert for sure that certain things will

definitely happen although the greater part of the iceberg

remains veiled to the naked eye and submerged below view. In the

ensuing paragraphs, we attempt to open up what we perceive as

what will happen in future.

Virtual teams refined and preferred

For one thing, the quality revolution has and will increasingly

usher in a new culture of interaction across the world.

Historically, we have known and trusted same time same time same

place teams which interact physically as well as jointly work on

one project at a given site on a daily basis. But quality will

increasingly favour virtual team working where people will work

726

in self managing virtual teams with a federal net work

arrangement, with practically no core or head office. Team

leadership will devolve and get better. In addition, one team

member will be connected to more than one team (multiple teams)

and will successfully function, delivering on their part. Matrix

teams will be normal, ethical and encouraged. Consequently,

knowledge work will be highly valued especially in the weightless

economy. Today, same geographical location teams are the norm but

tomorrow this is likely to change. As a result, costs will be

drastically reduced because a team leader will be able to

communicate via video conferencing media or other to be developed

technology and give guidance as though they were physically

present. By that token, decision making will be quicker and thus

increase working pace and speed. That said, a network of

thousands of knowledge workers akin to Vic Luck’s Coopers and

Lybrand (Case study) network arrangement will be the order of the

day. Team members will be well versed and better trained to

efficiently work as team members of a diverse, geographically

dispersed global teams which will be divided by different time

zones and cultures. Relativity will be better and more

competently handled. In short, cyber work will be the preferred

mode of team work.

Virtual companies take centre stage in cyber space

Closely connected to the virtual teams mentioned earlier on, the

mode, structure and type of companies is increasingly changing

727

and will continue to. Today, large multinationals with a huge

international workforce is the order of the day but may not

necessarily be tomorrow. The Executive Excellence magazine of

2000 predicts that virtual corporations are on the increase with

the advent of e-commerce/business. Today, anyone with internet

access can just log on to the relevant website and order a

vehicle or whatever they desire at the click of the button. Most

of these genuine companies advertising on the internet exist with

a large workforce behind them working feverishly like beavers to

satisfy the customers. Thus, they have huge overheads to keep

that work force running efficiently but these are now giving way

to virtual companies which may not have that huge machinery

behind it. Some of these virtual companies are one or two man

companies operated in the comfort of their living rooms but with

wide and deep connections with manufacturers. Once an order is

pressed, in the nick of time, an automatic online order is sent

to the supplier whose systems operate on a Just in Time (JIT)

arrangement will quickly assemble the order and deliver as

requested in record time. This arrangement is cutting down on

many overhead and storage costs, enhances quality and increases

customer satisfaction. Thus, the huge multinationals may need to

revisit their strategies very soon lest they be undercut by the

new market/industry entrants. In fact, new industries are

evolving which need meticulous monitoring as well as timely

response by the current industry leader incumbents. For instance,

the new companies are closer to the customer, more personal and

728

focused on pleasing their client far much more than the huge

bureaucratic, inflexible, unresponsive and impersonal

corporations do today. Yesterday, General Motors was the

unrivalled King of the Motor industry but today, it is in deep

weeds, worsened by the global economic meltdown of 2009. One

hopes many other traditional multinationals will not go down with

it. For the first time in many years, bankruptcy seems to be a

sensible option. Fluidity, speed and flexibility are critical

success factors today and tomorrow. Projects will have to mutate

the way they operate as well so that the deliverables are made

tangibly visible to the sponsors or else time will wipe away the

project concept credibility.

Fewer technological glitches and flawless cyber space

In the early formative stages after the internet was invented way

back in 1990 or so, an avalanche of communication ideas have been

developed over the years. Some are good and plausible while

others still are fraught with many problems while others have

even been abandoned. Today’s customer has many alternatives on

what communication channel they can use on the internet. For

instance, there is video conferencing, You Tube, Face book,

Twitter, email, Webbex, Skype, teleconferencing, Internet

chatting, fax, phone, wireless connectivity, document depository

sites and a whole range of alternatives. All a person has to do

is access these mediums and connect to the rest of the world

within seconds, assuming their counterpart the other end is awake

729

and ready to chat. If not, they can leave a message and get on

with other business unless further progress hinges on feedback

from the person so contacted. But then, despite all these

technological advances, there is much to be desired by each of

them because their output quality is not always good nor

guaranteed. Admittedly, with advancement and continuous

improvement, things are far much better than years ago and will

get even better. In future then, superb quality will be the norm

and one will feel much closer to their colleague across the globe

as the present technological glitches will have been dealt with

totally and finally. In fact, glitches will be the exception

rather than the norm. Customers, will feel very safe and

comfortable to transact and do business on the net rather than

undertaking multinational cross global travels to attend a

meeting in Asia when it would be cheaper, better and more

convenient to use other real time media. Of course, tourism and

cross cultural exchange visits will still be important and

heralded but a traveller will have more options than they

presently have. Air travel will by that same token be improved in

order to attract the reluctant or more “choosy” customer.

TQM will set the pace & standards to which all shall

aspire

As intimated in our opening remarks to this unit, we are fast

progressing to other equally potent quality models but TQM

730

remains the major centre piece around which everything revolves.

Consistent with the TQM philosophy of an all pervasive

companywide quality improvement, TQM has and will set the pace

but the bar will progressively get higher. If one needs to

succeed in the market place, they should not be short of the

required minimum standard that will satisfy the global customer.

For instance, natural organic foods fetch a higher price than

Genetically Modified organisms/foods (GMO) because people

perceive natural foods more healthy, palatable and of better

quality unlike in the past when volume was the issue. TQM still

calls the shots and will continue to for many generations to

come. Anything that shall supersede it (TQM) will merely be an

improvement upon and an addition to what already obtains. That

said, the standards will be far higher than what presently

obtains. We leave this assertion to a later point.

TQM is and increasingly will be a competitive advantage

tool

As you will already have concluded from your studies and

observations, TQM has set the centre stage for global

competition. Anything of mediocre or low standard has no chance

of success in today’s world, whether it is a product, service,

process or even project outcome. Things just must be at the

highest and best levels for them to succeed. Thus, the processes

will have to be even better than was the case yesterday. ISO

certification or other quality standards will assume increasing

731

importance and any one not adhering to some form of certification

or other will drastically diminish their competiveness as

suppliers, customers and would be partners will demand proof of

this. No one wants to risk their money or investments on what is

not certain. If things prove not genuine, recourse to court

action is another laborious, inefficient and costly affair so it

is better to avoid complications from the start, thus

certification will be that all important key. Said differently,

TQM will increasingly assume a competitive advantage tool

position that no one will dispute and in fact aspire after.

Currently, certification is optional but tomorrow, it will be

inevitable, so the earlier an entity gets certified the better.

Quality will forbiddingly be high making today’s

standards appear mediocre

TQM is the undisputed sought after gem today if the customer is

going to be repeatedly and consistently satisfied. One ignores it

at their own peril. That said, we must be quick to say that with

the ever rapidly improving quality trends, things will get even

better tomorrow than they are today. What is perceived as

exceptionally high quality today may not match tomorrow’s super

quality standards. In other words, quality will continue to be

relative but minimum standards will have been set beyond which

entities will have to aspire after to remain buoyantly

competitive. This implies that what is qualitatively good today

will appear mediocre and below standard tomorrow. An example will

732

do. When the Wright brothers first invented a workable plane and

flew in 1903, they were stars and the celebrities of their day.

But in 2009, the same “makeshift” plane they used is a hazard fit

only for the museum! One even wonders how on earth some one dared

get into that plane! Today, we are talking about the A380 airbus,

Space Shuttles, Boeing 787 and the rest of them which are

somewhat highly computerised and can fly on auto pilot for many

thousands of miles without any slightest malfunction! Planes have

evolved over the years and continue to. What we are saying is

that in the future, quality will be forbiddingly high and a non-

negotiable gem.

Many will build on today’s principles and concepts

advanced by Gurus, past & present

As earlier alluded to, there is nothing new under the sun except

new innovations, improving on what already exists. What we see as

new today was probably inspired or triggered by something in the

creative mind of some genius. We can further say that we build on

what our predecessors have already done or laboured on. As one

Puritan once correctly observed, “We shine today because we stand

on the shoulders of giants” meaning that the present “genius

ideas” are probably a development on what already exists in some

form or other. The point we are making is that the quality

initiatives started by yesterday’s quality gurus will live on and

be improved upon by future scientific cadres. Some unknowingly

will adopt their principles and run with the ideas whilst

733

improving on them only to later discover that some earlier giant

existed who suggested those ideas albeit in a different context

and form. Joseph Juran, Edwards Deming, Phil Crosby, Douglass

McArthur, Armand Feigenbaurn and Kaoru Ishikawa may not have been

viewed as legends in their day but the future will vindicate and

honour them far much better than we have hitherto done. Some

recognition has admittedly been done but much more lies in the

offing. As a way of honouring them, people will work hard to

build on their legacy to the point where the original idea will

scarcely be recognizable or linked to the highly developed

product or service. In fact, quality will become a basic norm

akin to one boasting of having running water flowing through the

tap. To possess a cell phone was once a status symbol and

affordable luxury of only the filthy rich but not so now. What

marks out some one is the quality and features a phone has. The

price gives you an idea of the quality of something. As earlier

suggested, quality will not and has not developed in a vacuum.

There have been factors to be considered such as availability of

resources and correct systems. Increasingly, even other once

remote factors as the environment are now taking the centre

stage. Quality will have to take care of all these environmental

concerns as we struggle to save the planet in peril.

As we come to a close of this grand quality treatise, we need to

reassert that quality is indeed free and cheap in the long run.

This is for a good reason because once you eliminate defects,

produce a pleasing product or service, the returns and dividends

734

are high, far outweighing the initial costs. This implies cost

saving, efficiency, effectiveness as well as attracting better

and higher funding if you are in the project world. If you are in

the corporate world, you will have strong staying power for

decades, yea, centuries to come although some schools of thought

do not think a company can go past 200 years. With the quality

weapon securely under your belt, you will achieve far much more

than you ever imagined. Your legacy will outlive you and your

product will be invincible while its time lasts. TQM is not a

passing fad or management gimmick to extort money out of people

but is a companywide approach worth supporting by every executive

worth his salt. We must go further to assert that quality should

begin with the individual, much like what that phrase proposes,

“Charity begins at home”. Once it is a value, it will inevitably

diffuse upwards within the system in as much as it can trickle

down if there is top management buy in. The difference however

with the upward diffusion is that quality will be ingrained in

people’s value system and will thus not be able to stomach or

stand mediocre output. This looks a tall order for now but the

day will surely come when quality will be the norm, if it is not

already.

Bibliography.......................Business and the Environment (papers by

various gurus)

735

Baird Grant, “It’s all in the stars...” Banking World, December

1989


2004

Campbell J David, Organisations and the Business Environment,

Butterworth Heinnemann, 2002

Clarke Alan, e-learning Skills, Palgrave/Macmillan, 2004

Cole Robert & Mishler Lon, Credit Management, IrwinMcGraw-Hill,

1998

Comber Stan, “The decade of electronics” Banking World, December

1989

Crainer Stuart, The Jack Welch way, Magna Publishing Co. Ltd,

2003

Dresner Simon, Principles of Sustainability, Earthscan, 2007

Fortescue Seymour, “The dawn of a new age”, Banking World,

December 1989

Fuller Michael, “What the Customer Demands” Banking World,

December 1989

Genhardt Joan & Townsend L Patrick, How Organisations Learn,

Financial World Publishing, 2001


736

Johansen Robert & O’Hara-Devereaux Mary, Global Work: Bridging

distance, Culture & Time, Jossey-Bass Publishers, 1994



Krames Jeffrey A, The Welch Way: 24 lessons from the World’s

greatest CEO, TATA McGraw-Hill, 2002

Langdon Ken & Bruce Andy, Strategic Thinking, Dorling Kindersley,

2000.

Lindsey W Ian, “The competition will become fiercer still”

Banking World, December 1989

Oakland S. John & Porter Leslie, Cases in Total quality

Management, Butterworth Heinnemann, 1994

Peters J Thomas & Waterman Robert, Jr, In Search of Excellence,

Warner books, 1982

Pirrie David, “A Revolution in delivery”, Banking World, December

1989

Robertson D Ritchie, “The customer friendly way to deliver the

services”, Banking World, December 1989

Sleight Steve, Moving to E-business, Dorling Kindersley, 2001

Tuke Michael, “Success will go to those best able to manage

change” Banking World, December 1989

737

Wanless Derek, “People-the key to success”, Banking World,

December 1989

Case study

Shantumbu Holdings versus the Shoprite Checkers

For many years, the shantumbu holding had reigned over the Monguscene unrivaled. Rising from an obscure insignificant chain of

shops in the early nineteen seventies, the business empire rose

from strength to strength. Mr. Kabonda27, the proprietor proved

himself a very shrewd and seasoned business man who ensured that

his businesses were far above what obtained in Mongu. As his

business prospered, he diversified into other business ventures

unrivalled because his fellow tribes’ men did not possess the

right business acumen. In addition, the command economy espoused

by the state discouraged business and subtly encouraged

dependence on the state. Many people devoted themselves to public27 Not real name. Actual names withheld for security reasons except the Shoprite Checkers

738

service from which they derived their livelihood while looking

down on free range entrepreneurs. However, Kabonda had a

different spirit and strongly believed in destiny self

determination. He thus weathered the storm, criticism and threats

from all quarters and forged ahead. Fortunately, he was well

connected to the powers that be of the day and eventually managed

to worm his way to the UK to study business management. While he

was abroad, his wife and children successfully ran his businesses

though merely scrapping through. He noted a training gap for his

posterity if they were to continue expanding his legacy. At his

return after a two year master’s degree study, he came with

bright business expansion ideas which further distinguished his

business from the rest. His former business rivals from the

Mbunda clan were no match for him as he espoused modern

management practices, high quality output, customer focus,

competitive strategies in relation to pricing, promotion,

placing, and products. He further hired more staff while sending

his heirs to work in the corporate world and later sending them

abroad to study. They were thus detached from the business for

many years. That notwithstanding, the Shantumbu enterprise

blossomed in the 1980s and into the early nineties. Those were

high points.

As the years rolled on, Mr. Kabonda senior (snr) became too

comfortable, influential, powerful, married many women and was

739

generally a philanthropic man. By 1994, the man was growing old

and started recalling his well established children to return

home to run his businesses while he gave expert advices from

behind the scenes. Naturally, the children, particularly the sons

had moved on, established families and were thus reluctant to

return to the relatively rural Mongu. One son (Monko) however

agreed to quit his full time job and returned to take over the

running of the business while others supported from the terraces,

as far away as the UK and USA. No sooner had Monko taken over the

reins than the old man died. That was a serious blow to the

business but thankfully, the old man had left a lot of money in

reserve which could allow the young mind to explore new business

plans as well as expand the extant business. He straight away got

busy reshaping the business amidst family tussles over property

disputes. He weathered the wind out of the quagmires and slowly

expanded the empire to its peak levels around 1997. The business

was pretty comfortable with a positive book balance, high asset

base, good flawless liquidity, highly diversified, a work force

of 40, well connected to the powers that be, enjoyed preferential

treatment in contract bids and above all ran the best and only

supermarket in the whole province. No other competitor could

match the business quality, availability of goods and timely

service. In a sense, all other smaller traders shrivelled into

insignificance leaving the Shantumbu holding a monopoly in the

district. As a result, the enterprise staff became proud,

obstinate, boastful and cared less for customers having enjoyed

740

government support. The organization ceased to learn and became

unresponsive although it still raked in super profits at the end

of the day. But things were about to change. The 1992

privatization act and liberalized economic policies had begun to

make inroads into the country allowing the multinationals to have

free reign into the country spreading their tentacles as they

pleased.

Thus, in early 1998, the Shoprite Checkers chain store announced

its intention to open up an outlet in Mongu. At first, people

were excited because this advent would mean the district would

now be regarded as a developed place and thus attract further

investment. Consumers interviewed in the marketing survey

indicated a longing to have the shop set up camp as soon as

possible.

As the shop was setting up camp, something shocking happened. The

first shock was that the Shoprite received a lot of resistance

from the local business community, especially the retail traders.

The second shock is that the company was denied access to land or

shop premises in the main business trading centre but were

instead directed to some old dilapidated, abandoned, filthy

structures far out of town near the grave yard! The premises had

formerly been a ware house for the defunct state owned NIEC28

stores but had been idle for nearly a decade. The third shock was

the attempted arson by unknown people buttressed by warning

28 NIEC=National Import and Export Company, one of the companies allowed by the state to import or export products during the command economy.

741

letters from anonymous local individuals, probably business

people. On four occasions, the shop stock was saved from

destruction just in the nick of time but eventually, with

intensified security, the place was secured and finally opened

its doors in mid 1998. As is the manner of curious shoppers, the

place was jammed with buyers on the first few days but business

sharply declined thereafter. The chain store had to craft another

strategy to overcome this. Despite being a one stop shop, it did

not attract as many consumers as was anticipated and struggled

along for a while.

The shop carried out a market research and concluded that a

number of things needed to be done to remain afloat. Among the

recommendations, the following were the action points:

1. The shop was to maximize in stocking relevant product ranges

such as mealie meal, bread, soap etc

2. Closely connected to the above, the entity was to ensure

that as much as possible was available in one shop at a

reasonable price.

3. The shop was to ensure the pricing was good, fair and

reasonable to attract demand.

4. The shop was to maintain a high quality and clean

environment. In addition, the shop was to be careful with

742

its product quality such as expiry dates, regular checks and

proper storage.

5. The shop was to run frequent promotions that would attract

people to come over.

6. A free bus ride was to be offered to shoppers for a period

of time so that the distance factor would be narrowed.

7. The customer was to be king and highly valued. Thus, the

customer would be held in high regard and always considered

right all the time.

8. Repeated training of staff was necessary to inculcate the

universal organizational culture.

9. Be politically correct with the sitting Government,

Traditional leadership structure (e.g. The BRE) among many.

These and many other innovations were diligently effected and

slowly begun to pay dividends.

On the other end of town, the Shantumbu still felt safe, secure

and in charge of the business. The arrival of the Shoperite

checkers raised a bit of concern to Monko and team but they were

very optimistic that the empire would weather the storm and once

the “Shopy shopy” craze was over and his loyal clients would

eventually return to his super market. If that did not happen,

his large real estate investments would cushion the impact and

743

thus allow his empire to continue unabated. Besides, his brothers

and sisters abroad would come in to the rescue if need be.

Surprisingly, the “Shopy” craze went on for far too long, his

supermarket had fewer patronages, less demand and therefore less

income. His clients begun to ask things they previously never

used to and were generally unwilling to wait for him to deliver

ordered goods from Lusaka and beyond. Others just simply snubbed

him or drove past his shop and never set foot there again.

Consequently, he begun to record losses, his damages increased

and staff pilferage went up. Because of poor pay or delayed

remuneration, some of his best staff quit to join the Shoprite

checkers. Things looked bad but as usual, the empire was in

denial. Looking across the fence to other entrepreneurs, they

were equally complaining and withering fast. The die was cast; it

was time to change strategy.

To mitigate further loss, Shantumbu enterprises did the

following:

1. The supermarket diversified further to include a bar in one

section.

2. Real estates were improved upon to increase value so as to

attract the NGOs and wealthy individuals.

3. Monko was to explore the lucrative timber business at

Senanga and beyond.

744

4. For a season, prices were to be slashed in a bid to win back

the local customers although the price slash was not for

long lest the company went under.

5. The bakery which had been closed was to be revived but let

out to some other entrepreneur. The Shoprite bread was not

very good at the time as it tasted abit odd, rather too

salty and thus that was an opportunity.

6. The customer was to be treated better than before.

7. Mobilize more capital from kinsfolk abroad.

8. Introduce some credit sale.

The Shantumbu enterprise immediately effected these strategies

with some periodic modest success but it appears the plans came

too late to win back the product loyalty.

By 2001, the Shantumbu Empire had had most of its market share

eroded and was generally a deserted place. The little that was

raised could scarcely meet operational costs while the real

estate business had declined as the number of superior housing

units came up from about 1992. With time, the shop closed down,

most of the real estate sold and workers laid off. That was the

end of the empire.

But the Shoprite checkers lives on today, growing from strength

to strength. Will another appear to dislodge this giant? Let us

wait and see.

745

© Billy C Sichone 2008

Bibliography

Bower et al, Business Policy,


2004

Kotler P & Keller K L, Marketing Management, 13th edition,


Zikmund G William, Exploring Marketing Research, Thomson South-

Western, 2003


What fatal errors did the Shantumbu enterprises make that

eventually cost them?

What one factor made the Shoprite Checkers succeed in Mongu?

What would you comment about the reaction and behaviour of the

local business community?

How best would have the local business community protected and

improved their business fortunes?

Comment on the diversification strategies of the Shoprite and

Shantumbu companies.

Comment on the relevance of a strategy in a given context.

746

Comment on succession planning as relates to the Shantumbu

enterprises and what lesson you learn from it.

Write briefly (500 words or less) about a case you have witnessed

or heard about in similar lines to the above scenario on the

Zambian scene.

What do you think caused the Shantumbu Empire to decline?

What were the success factors for the Shoprite checkers in Mongu?

What are some of the dangers any business should watch out for in

a market economy?

Case study two (repeated case)

Team Work

“Teamwork is the key word” declares Vic luck, the Chairman of

world-renowned Accounting and consultancy firm-Coopers & Lybrand.

747

Teamwork being the keyword for the successful company of today

and tomorrow, Collaboration is the Buzzword. Turn everywhere

today; there is a shift towards collaboration and teamwork so as

to reap the best qualitative results. Vic Luck has vast

experience having worked in big companies such as Philips, Ford

and Chrysler. These are giants in their own right as they have

well-established brand names. Reading the article “Teamwork is

the key word” from the CIMA Management accounting magazine, one

cannot help but notice how even the service industry is no

exception in the march towards quality goods and services.

Coopers & Lybrand is in the service industry providing

consultancy services all over the world. There is a sudden

outburst of consultancy demands on the said firm everywhere,

especially in Asia. But what is the secret of this company’s

success story?

The chairman gives us a number of hints, which are condensed in

the following fashion:

v. Teamwork is highly emphasised. The consultancy firm has

11,000 professionals world-wide. Only collaborative teamwork

will do in such circumstances or else risk running 11,000

“stand alone consultancies!” The consultants sit together

and brain storm an issue and then come up with one answer

which is the best for the purposes.

vi. Quality standards. Despite the increase in demand of

services Coopers is careful to maintain high quality

748

standards, For it is these very high standards that put

Coopers on the map.

vii. Point system and rewards . The organisation gives points and

probably rewards for outstanding performances. This acts as

an incentive to the team to work hard and attain even higher

heights. This has the effect of ensuring continuous

improvement in the services rendered to clients.

viii. Shared Knowledge . The firm has one big database to

which all consultants can avail themselves. Vic Luck has

been at the helm of building this network and has done well

because this has propelled collaboration and teamwork. There

is a sense of having one “global team” in this IT* setting.

Shared knowledge is another buzzword because without

information, one is doomed to failure. Capital alone is not

good enough. The firm is getting the benefits of having one

big database, as information is very crucial today if the

firm is going to be strategic. The world is changing very

fast, hence the need for the right information at the right

time, and that to teams! “The reliance on shared knowledge

rather than on the individualistic approach is one of the

greatest changes in our business”, quips Luck confidently.

Given the four reasons above, one cannot fail to see that

teamwork has turboed Coopers & Lybrands to the apex of the

consultancy business. The hind experiences at Chrysler, Philips

and Ford perhaps have given the Coopers chairman the insight into

749

gaining a competitive advantaged position. High quality standards

and continuous improvement through teamwork are the only way

forward for Coopers and Lybrands. The article ends with an aptly

brisk statement “With Luck, Coopers will probably pull it off”.

This is a fine way to think of a firm and the players therein!

* IT is Information Technology.

Source

CIMA Management Accounting magazine, January 1998


What do you think about Vick Luck’s assertion?

Do you think Coopers really has a competitive edge over others in

the industry? Why/why not?

List some of the imaginable challenges that Coopers faces as it

works with virtual teams.

How does hind some one’s hind industrial experience impact on

organisational quality and efficiency? (I.e. Often times we hear

of elaborate world class profiles when CEOs have been hired, as

known quantities)

750

Revision exerciseWhy is TQM viewed as invincible? Comment in relation to strategy

in general.

Write brief notes on what you perceive to be the future of

Quality. Comment in relation to project management as well (Essay

total about 1,000 words).

Do you think the primary quality gurus will be venerated or

discarded? Justify your answer.

Why do you think quality certification will be an increasingly

competitive tool in future. Give at least three reasons.

751

General BibliographyACCA, Management and Strategy, BPP publishing, 1996

Bell H Cecil jr, French L. Wendell, Organisation Development, 3rd

edition, Prentice –Hall of India pvt ltd, 1989

_Basic Marketing

Bellingham Richard, Virtual teams, Jaico publishing house, 2003


Brownlie Ian, Principles of public international law, 4th

edition, ELBS 1973

Bryans P & Cronin T.P, Organisation theory, Mitchell Beazley,

1983

Burnes Bernard, Managing Change, 4th edition, FTPrentice Hall,

2004

Cateora R Philip, International Marketing, 9th edition, Irwin

McGraw-Hill, 1966

CIMA, Organisational Management and Development, BPP publishing,

1995

Cooper R Donald & Schindler S. Pamela, Business Research methods,

McGraw-Hill International editions, 6th edition, 1998

CSO, Zambia figures 2003/2004, Central Statistics office

752

Davies Anthony, Managing for change, ITDG publishing, 1997

Dessler Gary, Human Resource Management, 10th edition, Pearson

Prentice Hall, 2005

Dowling J Peter, Welch E Denice & Schuler S Randall,

International Human Resource Management, 3rd edition, South-

Western College publishing, 1999

Dubrin J Andrew, Leadership, Houghton Mifflin company, 1995

Dunkerly David and Clegg Stewart, Organisation, class and

control, Routledge & Kegan Paul, 1980

Ferrel O.C, Fraedrich John & Ferrel Linda, Business Ethics,

Houghton Mifflin Company, 2000

Fitzwater L. Terry, Documenting employee performance, Jaico

publishing house, 2003

Flippo B. Edwin, Personnel Management, McGraw-Hill, 6th edition, 1984, International edition

Gebhardt E Joan & Townsend L Patrick, How organisations learn,

Financial world publishing, 2001

Handy Charles B, Understanding organisations, Penguin books, 1976

Heller Robert, Effective leadership, Dorling Kindersley, 1999


Hoogvelt M.M Ankie, The third world in global development,

MacmillanEducation ltd, 1982

753

ILO, International Labour standards, International Labour office,

Geneva, 1978

Johansen Robert & O’Hara-Devereaux Mary, Global work, Jossey-Bass

publishers, 1994



Kapatamoyo Abel & Gunnigle Patrick, An introduction to Job

analysis & evaluation, Zambia Institute of Personnel Management,

1988

Kinicki Angelo, Kreitner Robert, Organisational Behaviour, 4th

edition, Irwin McGraw-Hill, 1998

Langdon Ken & Bruce Andy, Strategic thinking, Dorling Kindersley,

2000

McClure F Paul, New Entreprenuer’s guidebook, Financial world

publishing, 2001

McDaniel Carl & Gitman Lawrence J, The future of business,

Thomson South-Western, 2006

Morgan Gareth and Burrel Gibson, Socialogical paradigms and

organisational analysis, Heinmann Educational Books, 1982

Mouzelis P Nicos, Organisation and Bureaucracy, Routledge & Kegan

Paul, 1981

754

Mwanalushi Muyunda & Mchonan , An introduction to Appraisals ,

Zambia Institute of Personnel Management, 1989

Nkhata Lennard, Methodological options in policy relevant social

research, The University of Zambia printer, 1997

Nyondo Henry, “Has world Vision Zambia area development programs

enhanced sustainable development in its work” draft research

proposal to UNISA

Oakland S John & Porter Les, Cases in Total Quality management,

Butterworth Heinmann, 1994

Oxenfeldt Alfred R, Decision Economics, Financial World

Publishing, 2001

Patton Quinn Michael, Qualitative Research & Evaluation Methods,

3rd edition, Sage publications, 2002

Pereira D.F & Rao T.V, Recent experiences in Human resources

Development, Oxford & IBH Publishing Co. Pvt Ltd, 1986

Peters J Thomas & Waterman H Robert, Jr In search of excellence,

1982

Pride M William, Hughes J Robert & Kappor R Jack, Business, 6th

edition, 1999

Salton J Gary, Organizational Engineering, Jaico publishing

house, 2003

755

Schaffer R, Earle B, Augusti F, International Business law and

its environment, 5th edition, West Thomson Learning, 2002

Schroeder G Roger, Operations Management, 4th edition, 2008

Silverman David, The theory of organisations, Heinmann

Educational Books, 1970

Sleight Steve, Moving to e-business, Dorling Kindersley, 2001

Slinn Peter & Snyder Francis (editors), International law of

development: a comparative perspective, Professional books, 1987

Stevenson J William, Production/Operations management, Irwin, 5th

edition, 1982

Tulgan Bruce, Recruiting the workforce of the future, Jaico


United Nations Department of public information, Ministerial

conference of landlocked and transit developing countries and the

Donor community on transit transport, UN, 2003

Vinten Gerald, Selim M Georges & Chambers D Andrew, Internal

Auditing, Pitman publishing, 1981

Wellford Richard & Starkey Richard, Business and the Environment,

Universities Press, 1999

World Vision, Operations Manual of World Vision Zambia, WVZ, 2003

Yoder Dale & Staudohar D Paul, Personnel management & Industrial

relations, 7th edition, Prentice Hall of India, 1986

756

Zikmund G William, Exploring Marketing Research, Thomson South-

Western, 2003

Grobler Pieter et al, Human Resource Management in South Africa,

3rd edition, Thomson, 2006

World Vision Relief and development Grants training & evaluation,

A model for evaluation, World Vision Inc, 1996

Render Barry & Heizer Jay, principles of Operations Management,


757

Glossary (Adapted from various sources with some additions from author)

Activity: actions taken through which inputs (financial, human,

technical, material and time resources) are mobilised to produce

specific outputs. The work of a project or programme.

Advocacy: the use of persuasion, dialogue and reason to obtain change, rather

than the use of force. Advocacy is about changing balances of power.

In the context of World Vision’s core business advocacy is “the process of

using the influence one has by virtue of presence, expertise, size and programming to bring

benefit people in poverty.” Advocacy can be done for people, with people

and by people, at the grass roots and all levels of organised society

up to international levels.

Annual Operation Plan: an operation’s plan produced annually,

detailing the activities and outputs for the following year together

with relevant resource and logistical planning. The plan would also

include any specific monitoring and evaluation activities, which would

be implemented during the year.

Area Development Programme: a programming model that defines a

geographical area within which project activities will be implemented.

These activities are logically linked to overall programme impacts and

a goal. Projects are implemented in different communities within the

758

area at different times over the life of the programme. One of the

central theses of this programming model is that the entire area will

eventually benefit from the development activities; the effects

spreading out much like the ripples across a pond. World Vision’s

emphasis on area development programming is community based and

sustainable, especially focused on the needs of children.

Assumption: hypotheses about necessary conditions, both internal and

external, identified in a programme or project design to ensure that

the presumed cause-effect relationships function as expected and that

planned activities will produce expected results. Assumptions which

cannot be adequately addressed by the design of a project become risks to

the achievement of a project or programme. For the most part,

assumptions, and therefore risks, become more complicated for higher

level objectives of a programme or project.

Capacity building: the process of developing a person’s capacity in a

particular set of work-related or functional skills.

Caregiver: refers to the person primarily responsible for providing

care to a child. While in the majority of cases this will be a mother,

this will not always be the case.

Child abuse: child abuse and maltreatment constitutes all forms of

physical and/or emotional ill treatment, sexual abuse, neglect or

759

negligent treatment or commercial or other exploitation, resulting in

actual or potential harm to the child’s health, survival, development

or dignity in the context of a relationship of responsibility, trust

or power.

Child protection: child protection from a World Vision perspective is

the process of creating safer families and communities for children

who face violence.

Child rights: the right of all children to survival, development,

protection and participation as outlined in the UN Convention on the

Rights of the Child.

Community health worker: a health worker working within a public

health system, most commonly at a village level. A community health

worker is usually a member of the community who has been trained to

deliver the front-line of health service to their community.

Development programme: a collection of projects with the same sector,

theme or geographical area, to which a coordinated approach is

adopted.

760

Disaster mitigation: a set of strategies and activities that are used

in advance of a disaster, with the aim of preventing or limiting risk

and creating resilience, and thereby reducing the impact of disasters.

Food security: exists when all people, at all times, have physical and

economic access to sufficient, safe and nutritious food to meet their

dietary needs and food preferences for an active and healthy life

(14). See also food availability, food accessibility, food

Impact: the long-term results of a programme or project. They are the

significant or lasting changes in peoples’ lives or a situation

whether planned or unplanned, positive or negative, directly or

indirectly, that a programme or project helps to bring about.

Objective: a generic term used to express desired results that a

programme or project seeks to achieve. There are different levels of

objectives within a logical framework, namely activities, outputs,

outcomes, project goals and programme goal. The first three relate to

projects that constitute a programme and are for the most part

monitored. The last two will be evaluated at the programme level.

Outcome: benefits and changes (in individual or corporate

behaviour/practices, or systematic capacity) to which the outputs have

contributed. The cause-effect relation between output and outcome is

761

usually changes in knowledge and attitudes, which lead to changes in

people’s behaviour. Outcomes are a measure of effectiveness.

Output: the tangible products/services delivered as a consequence of

implementing one or more activities. Outputs contribute to achieving a

higher-order strategic objective and are a measure of effort expended.

Programme goal: the vision of the communities that sets the bigger

picture towards which the programme is working. The programme goal is

the overall objective, which will not be achieved by a single project

but will require the contributions of other projects, and other

development actors.

Purpose: a term used in original log frame terminology that was a

result combining both outcome and impact that is between output and

goal level of the log frame. It represents the results which can be

reasonably expected from a programme provided that planned outputs are

delivered, the assumptions remain valid and the risks have not

materialised.

Plan of Action: This is an organic document listing what actions and

the route to be pursed in doing an activity or set of them. This plan

of action is derived from a longer plan and may represent a particular

time frame and range of activities such as a week, month or quarter as

the case may be.

762

Memorandum of Understanding: A document stipulating the agreed

terms of reference and responsibilities of each party to the

given agreement. This is different from a contract although it

may be part of one.

Programme: An entity that is composed of a collection of projects

integrated together with a view to build synergy as well as

collectively tackle a problem or set of problems in a given

geographical area.

Project: This is a specific undertaking by implementers derived

from an agreement to handle a particular problem or find solution

to an issue in a given time farm, budget and contract document

relating to a target population, customers or sponsors.

Quality: Trait meeting specific standards, expectations, needs

and desires of stakeholders and customers.

Operations: Aspect of the entire entity that makes the

organisation function according to plan and achieve predetermined

goals.

Total Quality Management: That all pervasive organisation wide

management quality that ensures that quality embedded throughout

all the organisation system and process.

763

Index

3

360* appraisal..................205

A

AIDS........................65, 125Americans 27, 28, 30, 48, 326, 446, 451

Annual Operation Plan......127, 473appraisal. 120, 173, 201, 202, 203, 204, 205, 206, 208, 229, 230, 363,436

appraisals 202, 203, 204, 205, 206, 208, 436

Armand Feigenbaum.........3, 58, 68ASQ..........................18, 59Associations.....................59attitude........................154

B

Bill Gates... .5, 319, 320, 323, 325BP Zambia.........62, 101, 102, 107budget 10, 102, 119, 122, 134, 145, 147, 158, 216, 240, 241, 263, 387,394, 433, 477

bureaucracy 37, 75, 79, 81, 88, 111,186, 187, 241, 248, 295, 297, 300,306, 324, 409, 424, 435, 437, 441,445

business 17, 19, 20, 21, 24, 25, 28,31, 43, 47, 49, 54, 56, 62, 66,

72, 73, 74, 76, 79, 81, 82, 83, 86, 87, 92, 96, 97, 100, 148, 160,168, 171, 174, 180, 185, 188, 193,195, 208, 220, 232, 233, 241, 242,256, 272, 275, 276, 277, 279, 281,282, 284, 288, 293, 301, 305, 308,309, 310, 312, 313, 314, 315, 316,319, 322, 326, 328, 333, 336, 338,352, 356, 363, 366, 374, 380, 383,384, 386, 387, 388, 389, 390, 391,392, 393, 394, 395, 396, 397, 398,400, 403, 408, 411, 412, 414, 417,424, 425, 435, 439, 442, 446, 449,453, 454, 459, 460, 461, 462, 463,464, 465, 467, 470, 471, 473

Business.........................38buzzword 20, 26, 103, 217, 335, 430,438, 444, 466

C

Cavendish University Zambia. . .2, 12CEO. .4, 42, 77, 78, 114, 199, 226, 254, 274, 276, 277, 289, 300, 321,326, 414, 416, 444, 458

China..................96, 409, 422coach. .154, 155, 162, 164, 166, 446concept 20, 53, 58, 67, 68, 69, 81, 87, 90, 96, 117, 118, 119, 148, 150, 219, 394, 431, 446, 453

continuous improvement. 24, 26, 99, 144, 257, 281, 302, 320, 322, 335,

764

336, 339, 436, 442, 447, 454, 466,467

Copper belt University.....211, 212Corporate growth................100cost effective 14, 27, 48, 91, 174, 187, 231, 233, 347, 361, 365, 410

Crosby. .3, 28, 54, 55, 56, 57, 69, 98, 434, 456

Cross Roads......72, 73, 74, 75, 76culture..........153, 444, 447, 449customers. .24, 29, 31, 33, 47, 73, 75, 80, 81, 82, 89, 90, 91, 93, 97, 101, 110, 111, 160, 190, 192, 218, 226, 268, 281, 282, 293, 295,297, 298, 302, 314, 315, 321, 328,330, 331, 333, 337, 338, 339, 342,350, 373, 383, 384, 410, 415, 419,427, 432, 433, 441, 442, 444, 445,453, 455, 461, 463, 477

D

decisions.......................163Deming. .3, 28, 46, 48, 49, 50, 51, 53, 54, 57, 59, 67, 68, 70, 98, 430, 441, 456

Dependence syndrome.............261Detailed Implementation Plan. .127, 146

differentiation........98, 112, 113Direction........................25DIRFT............................69diverse...............151, 152, 165DMDT............................178DME...........12, 18, 143, 146, 168

E

effectiveness. .32, 49, 82, 88, 99, 100, 144, 177, 178, 193, 246, 257,291, 328, 348, 434, 457, 476

efficiency. . .32, 58, 99, 100, 101, 116, 167, 177, 178, 239, 257, 344,

346, 347, 359, 365, 370, 438, 447,457, 467

EIA...........62, 94, 118, 258, 260environmental analysis......24, 385evaluate 14, 120, 148, 202, 208, 391evaluation 22, 24, 26, 43, 99, 117, 129, 136, 137, 140, 141, 144, 145,147, 168, 203, 204, 209, 211, 230,352, 371, 470, 472, 473

Excellence 17, 43, 59, 85, 115, 166,190, 192, 193, 195, 196, 198, 199,221, 230, 337, 338, 339, 443, 449,453, 458

F

facilitate......................447feasibility study.....117, 118, 119finance.........................158Finance 22, 31, 138, 139, 216, 239, 386, 390, 391, 396

Fish bone........................68focus...........................441Fredrick W Taylor...............310

G

General Douglas McArthur......3, 59General Motors. . .26, 48, 409, 440, 451, 453

Generation X....................247Generation Y....................247George Elton Mayo...............310global economic meltdown. .22, 134, 259, 453

Global Village...................22

H

Harvard University..............308hierarchical 77, 103, 213, 214, 276,407, 437, 445

HIV...............65, 125, 128, 273HIV & AIDS......................125Home Based Care.................127

765

HRM 4, 171, 173, 174, 177, 179, 180,181, 183, 184, 188, 189, 197, 201,210, 211, 278

I

IBM...................319, 324, 426IHRM..................183, 184, 197ILO............64, 84, 85, 198, 470implementation. .5, 22, 25, 26, 30, 62, 64, 72, 117, 118, 119, 121, 122, 126, 127, 129, 130, 132, 134,136, 140, 141, 142, 145, 146, 148,151, 155, 157, 178, 210, 231, 232,239, 240, 241, 258, 261, 262, 263,264, 265, 266, 268, 269, 272, 293,306, 337, 363, 366, 433, 436,뎠 438

Indicator Tracking Table........145integrated program 10, 232, 271, 284Integrated Program management 4, 231internal customer......58, 296, 337international. .22, 27, 31, 36, 38, 47, 49, 71, 75, 76, 87, 89, 102, 108, 145, 147, 180, 183, 184, 187,211, 234, 273, 279, 280, 284, 295,297, 300, 304, 305, 308, 314, 317,331, 387, 408, 409, 410, 412, 419,420, 426, 427, 441, 447, 453, 469,473

International Standard Organisation...........................60, 107

internet 10, 18, 56, 287, 336, 453, 454

Ishikawa diagram.............58, 68ISO 14000................31, 61, 62ISO 9000.........30, 60, 61, 64, 83ISO standards. . .15, 41, 64, 83, 109IT. . .164, 167, 335, 342, 344, 345, 346, 348, 350, 351, 354, 377, 395,466, 467

J

Jack Welch. .32, 42, 198, 248, 413, 414, 415, 416, 458

Japanese 14, 20, 26, 27, 29, 30, 41,47, 49, 51, 53, 54, 57, 58, 59, 67, 68, 70, 246, 304, 438, 441, 446, 451

JIT...................100, 242, 453Juran 3, 28, 51, 52, 53, 54, 57, 59,67, 68, 71, 98, 100, 441, 456

JUSE.................47, 53, 58, 59

K

Kaizen.........26, 30, 42, 339, 438KAIZEN...........................26Kaoru Ishikawa...........3, 57, 456KFC.............................304Known quantities 188, 281, 316, 321,324

L

LAN........................356, 357leadership. .154, 161, 166, 440, 442Leadership..77, 133, 169, 170, 211, 213, 220, 221, 285, 291, 293, 469

LEAP.......................146, 148Logframe........................122

M

M & E 122, 140, 143, 144, 147, 148, 169, 264, 267, 271, 435

Malcom Baldrige National award. . .59management.......153, 163, 445, 447Management 4, 5, 16, 17, 20, 22, 23,42, 43, 53, 59, 61, 63, 77, 78, 84, 85, 87, 89, 90, 91, 92, 102, 109, 114, 115, 117, 135, 145, 149,151, 152, 170, 171, 173, 174, 179,180, 183, 190, 197, 198, 199, 203,207, 213, 215, 229, 230, 231, 232,243, 273, 284, 285, 286,뎠 291,

766

296, 323, 330, 334, 336, 341, 343,347, 349, 351, 353, 355, 358, 360,361, 364, 365, 367, 370, 373, 375,386, 387, 389, 390, 394, 411, 426,430, 433, 440, 441, 458, 464, 466,467, 468, 469, 470, 471, 472, 477

Management fads.................430Market Research.................242Marketing. .22, 23, 31, 43, 80, 97, 100, 170, 242, 243, 292, 413, 420,464, 469, 472

Marks and Spencer 294, 296, 297, 298mentor.....................154, 165Microsoft. . .5, 195, 257, 319, 320, 321, 322, 323, 324, 325

Mission statement...............234Mitsubishi.................304, 451module. 10, 11, 12, 13, 14, 19, 28, 64, 86, 144, 242

motivating.................157, 158motivator.......................165Multinational....................29Mwanalushi.......203, 208, 230, 471Mwendafilumba................76, 82

N

NASA...................92, 100, 233NGO.............................145Nokia.................376, 377, 378

O

Opel. 406, 408, 409, 410, 411, 412, 413

operational.....................448organisation 19, 20, 21, 22, 23, 24,25, 26, 27, 29, 30, 31, 51, 81, 83, 88, 91, 92, 93, 94, 97, 98, 100, 111, 113, 116, 119, 138, 154,159, 160, 173, 174, 177, 178, 179,180, 181, 182, 184, 185, 187, 188,193, 196, 197, 201, 202, 203, 206,207, 211, 213, 214, 215, 216, 217,

218, 219, 220, 222, 223, 224, 225,226, 227, 232, 235, 242, 243, 247,248, 250, 253, 256, 278, 280, 284,291, 292, 293, 301, 305, 312, 322,323, 324, 327, 335, 337, 338, 340,344, 354, 357, 360, 369, 370, 371,372, 373, 374, 375, 381, 386, 414,415, 417, 421, 426, 427, 430, 431,433, 434, 436, 438, 440, 441, 443,445, 446, 448, 466, 477

organism...........22, 32, 160, 296

P

paradigm........................165Participatory Rural Appraisal. . .120PDCA.............................67PDQA..................157, 215, 219people management. . .102, 103, 109, 132, 180, 201

Performance Appraisal...........203Personnel Management.......171, 179Peter Drucker..........17, 179, 190PMIS............................145PRINCE 2.........................63PRINCE2.............63, 64, 83, 130Professionals...................138programs. 30, 48, 84, 92, 116, 154, 172, 190, 195, 233, 272, 284, 309,312, 319, 320, 321, 322, 348, 352,354, 357, 359, 370, 436, 471

project 1, 4, 5, 10, 13, 14, 20, 23,29, 31, 45, 60, 62, 63, 64, 65, 67, 72, 74, 83, 86, 87, 88, 91, 93, 94, 96, 98, 99, 100, 101, 114,115, 116, 118, 119, 120, 121, 122,123, 125, 126, 127, 128, 129, 130,131, 132, 133, 134, 135, 136, 137,138, 139, 140, 141, 142, 143, 144,146, 148, 149, 150, 151, 152, 157,167, 168, 171, 172, 175, 176, 177,178, 179, 181, 182, 183, 184, 185,

767

186, 188, 189, 197, 201, 202, 207,208, 210, 216, 229, 231, 232, 233,234, 235, 237, 239, 240, 241, 242,243, 244, 245, 246, 247, 248, 257,258, 259, 260, 261, 262, 263, 264,265, 266, 267, 268, 269, 270, 272,273, 278, 284, 372, 391, 407, 425,429, 432, 433, 435, 436, 450, 452,453, 455, 457, 468, 473, 474, 475,476

project management 10, 14, 64, 137, 150

Project Manager 4, 64, 65, 66, 117, 130, 131, 132, 135, 137, 138, 141,168, 179, 189, 210, 236, 450

project quality..................10projects 9, 23, 63, 66, 94, 95, 99, 100, 116, 117, 118, 121, 126, 140,141, 143, 145, 146, 147, 148, 150,157, 161, 168, 177, 178, 184, 186,190, 227, 229, 232, 236, 240, 245,247, 248, 256, 257, 258, 273, 274,281, 284, 285, 336, 372, 426, 433,435, 436, 475, 476

Projects 63, 71, 116, 118, 142, 153,172, 233, 244, 247, 436, 453, 473

Provisional Design Document.....121

Q

quality. . .156, 157, 158, 160, 162, 441, 442, 444, 445, 447, 449, See

Quality 1, 3, 4, 6, 12, 14, 16, 18, 19, 20, 22, 28, 41, 42, 45, 48, 53, 54, 56, 57, 58, 60, 67, 68, 69, 71, 83, 84, 85, 87, 88, 90, 91, 95, 96, 98, 102, 112, 113, 114, 116, 148, 201, 215, 217, 219,272, 305, 316, 323, 330, 335, 429,430, 434, 439, 444, 450, 451, 455,457, 466, 468, 471, 477

quality culture..................99

quality gurus. .11, 14, 41, 54, 57, 59, 60, 456, 468

R

revolution. .3, 44, 45, 66, 70, 83, 294, 407, 408, 439, 450, 452

robust..........................447

S

Shoprite... .459, 461, 463, 464, 465skills.............................156SMART......................125, 169SMS.............................377St Micheal........................294stakeholders. .21, 88, 94, 97, 116, 118, 120, 121, 122, 137, 140, 141,144, 148, 189, 217, 259, 260, 262,263, 265, 268, 269, 270, 271, 272,304, 414, 421, 427, 428, 437, 477

Strategic Business Units........414strategically..............162, 447strategy 14, 19, 21, 22, 25, 26, 27,38, 75, 76, 80, 81, 82, 92, 93, 111, 118, 126, 142, 156, 234, 259,265, 276, 277, 283, 284, 296, 300,301, 302, 303, 304, 305, 308, 311,315, 319, 327, 334, 336, 350, 351,385, 388, 395, 405, 410, 411, 418,420, 422, 424, 433, 435, 438, 461,463, 465, 468

Strategy........21, 22, 27, 80, 468SWOT 16, 21, 23, 129, 293, 385, 401,419

systematic......................152

T

Team.............103, 104, 105, 248team-building model.............249Teams. . .5, 42, 170, 197, 198, 244, 285, 458, 470

Teamwork. .104, 105, 160, 330, 334, 335, 444, 447, 465, 466

768

Tesco.................398, 399, 400TOTAL QUALITY....................20Total Quality Management.....20, 90Total Quality Movement...........29TQM. 3, 14, 16, 19, 20, 21, 25, 27, 28, 30, 32, 43, 44, 45, 66, 72, 80, 81, 83, 87, 89, 90, 91, 92, 93, 94, 95, 99, 101, 102, 105, 106, 107, 108, 109, 113, 114, 129,213, 217, 218, 220, 221, 222, 339,420, 429, 430, 431, 433, 434, 435,438, 439, 443, 450, 451,뎠 454, 455, 457, 468

traditional................445, 447Transformational Development Indicator......................121

U

USAID......................143, 273

V

vision..........................158Vision. . .12, 18, 24, 25, 145, 146, 147, 150, 152, 153, 154, 157, 159,160, 161, 165, 167, 176, 210, 211,212, 213, 214, 215, 217, 219, 221,222, 233, 234, 235, 245, 471, 472,473, 474

W

Wal-Mart........................326World Vision. . .157, 160, 211, 219, 221, 234, 472

WVZ..............144, 212, 222, 472

Z

zero defects. 20, 50, 55, 217, 434, 442

769

the quality quest: quality in project management

Documents