Petter Øgland Trial Lecture Oslo, November 27th 2013

1. A critical review of research on TQM implementation (process and achievements) in light of theories of organizational change PetterØgland Trial Lecture Oslo, November 27th 2013

2. Plan for lecture • Introduction (15 minutes) • What is general systems theory (GST)? • What is total quality management (TQM)? • What is organisational development (OD)? • The traditional TQM paradigm (20 minutes) • OD, systems and modernity • Main review of research on TQM implementation • The new TQM paradigm (10 minutes) • OD, complexity and post-modernity

3. General systems theory (von Bertalanffy, 1968; Rosen, 1991) Water circuit Electriccircuit Analogy (“similar”) Model(“same”)

4. Scientific management and agricultural research Rothamsted Experimental Station, Harpenden, Hertfordshire, 1920s Midvale Steel, Pennsylvania, 1890s Analogy (“similar”) R.A. Fisher Statistical methods F.W. Taylor Industrial engineering Model(“same”) Statistical method from the viewpoint of quality control (W.A. Shewhart, 1939)

5. TQM is company-wide use of statistical process control (SPC) Plan-do-check-act (PDCA): Shewhart (1933), Ishikawa (1985), Deming (1986)

6. Total Quality Management (TQM) as Organisational Development (OD) Problematic social behaviour Improved social behaviour Change Freeze Unfreeze

7. Old situation Model (problem formulation) Analyse Design New situation Model conclusions (system specification) Implement TQM solves the OD problem through industrial engineering (Wren, 2005) Problem structuring methods (PSM) Organisational change Systems Engineering (SE) Evaluation

8. Old situation Model (problem formulation) HERMENEUTIC KNOWLEDGE Analyse Design New situation EMANCIPATORY KNOWLEDGE Model conclusions (system specification) TECHNICAL KNOWLEDGE Implement The traditional TQM paradigm (Flood & Jackson, 1991; Flood, 1993) Problem structuring methods (PSM) Organisational change Systems Engineering (SE) Evaluation Habermas (1971)

9. TQM theory = IE + OD + CT Industrial Engineering (IE) Methods of doing (Taylor, 1911) Organisational Development (OD) Methods of understanding (Lewin, 1947) Critical theory (CT) Methods of emancipation (Marcuse, 1964)

10. OD classification: System of Systems Methodology (Jackson & Keys, 1984) Selection of OD methods with relevance for TQM based on Flood & Jackson (1991)

11. OD classification: System of Systems Methodology (Jackson & Keys, 1984) Selection of OD methods with relevance for TQM based on Flood & Jackson (1991)

12. Simple, unitary: TQM & OR • Process • Scientific management (Taylor, 1911) • Achievements • Statistical process control (SPC), Pareto analysis, statistical quality control (SQC), mathematical models and methods often described as OR tools • Challenges • Fails when it does not see the big picture (Churchman, 1968) (Churchman, Ackoff & Arnoff, 1957)

13. Complex, unitary: TQM & VSM • Process • Systems analysis (Hara, 1967), BPR (Hammer & Champy, 1993), KM (Davenport & Prusak, 1998), Six Sigma (Harry & Schroeder, 2000) • Achievements • TQC (Feigenbaum, 1961; Juran, 1964; Ishikawa, 1985), Motorola, Xerox, Ford (Camp, 1989), General Electric (Welch, 2001), Chilean government (Beer, 1974) • Challenges • Failure if the system to be controlled is poorly understood (Checkland, 1981) (Beer, 1959)

14. Simple, plural: TQM & SSM • Process • Quality circles, workshops, training sessions, HR dept. • Achievements • Fishbone diagrams (Ishikawa, 1987), group dynamics (Lewin, 1950), Tavistock (Trist et al, 1997), STS (Mumford, 1995), SSM (Checkland & Poulter, 2006) • Challenges • Shared understanding of problem and commitment to action does not mean that the problem is objectively understood (Beasley, 2004) (Checkland & Poulter, 2006)

15. Complex, plural: TQM & SD • Process • Computer simulation, e.g. DYNAMO (Pugh, 1963) • Achievements • Predictive theory needed for organisational learning (Deming, 1986; Senge 1990), industrial dynamics, urban dynamics, world dynamics (Forrester, 1961; 1969; 1971; Meadows et al, 1972) • Challenges • Behaviour of complex systems are difficult to predict, outcome may be the opposite of what was planned for (Gleick, 1987) (Senge, 1990)

16. Simple, coercive: TQM & CSH • Process • Assessments, Scandinavian school of IS (Nygaard, 1996) • Achievements • Quality maturity models (Crosby, 1979) • EFQM model (1992) (Ulrich, 1983)

17. Summary of research: Critical Success Factors (CSF) for TQM implementation • Management commitment(Beer, 2003; Beckford, 2002; Taylor & Wright, 2003), but difficult to maintain (Schein, 1987) • Empowerment(French & Bell, 1995; Gatchalian, 1997) • TQM agents must have statistical education and experience (Deming, 1986), but TQM as a fad resulted in a market populated by consultants without such background (Cole, 1998) • Strategy (customer focus)(Deming, 1986; Taylor & Wright, 2003), but often has to compete for attention with fads, whims and daily fire-fighting (Mintzberg, 1973) • Supply-chain management (Deming, 1986; Tapiero, 1996) • Internal quality information usage (Taylor & Wright, 2003; Collins, 2003; Hoyle, 2006; Senge, 1990) • TQM results must be viewed as a balanced scorecard (Kaplan & Norton, 1996) • Satisfied employees produce better work (Csikszentmihaly, 1990) • Customer focus (Peters & Waterman, 1982), but innovation comes from process not customers (Deming, 1986) • Public image, business ethics, and impact on society is part of quality (Oakland, 1989) • Quality improvement should impact the bottom line (Juran, 1988; Black & Revere, 2006)

18. CSF for TQM implementation forms the basis for the EFQM model

19. In spite of this knowledge, most TQM implementations fail (Burnes, 2010) WHY? Is there another way of looking at TQM implementation?

20. The new TQM paradigm (Dooley, Johnson & Bush, 1995) The organisation is like a mainframe computer OLD METAPHOR The organisation is like a computer network NEW METAPHOR

21. OD classification: System of Systems Methodology (Jackson, 2003)

22. Complex, coercive: TQM & ANT • Process • Ethnography • Achievements • Root Cause Analysis (Ammerman, 1998), Evaluation of the ARAMIS failure (Latour, 1993), “Tragedy of the commons” (Hardin, 1968) • Challenges • Complex explanations motivate passivity rather than action (Winner, 1993) (Legge, 2002)

23. Complex, unitary: TQM & CAS • Process • Kaizen (Imai, 1987), JIT (Shingo, 1989), Lean Production (Womack et al, 1990) • Achievements • Kanban (Ohno, 1978), 5S (Hiroyuki, 1995), Toyota Motor Company (Liker, 2004) (Axelrod & Cohen, 2000)

24. Does the new TQM paradigm work? • Socially important • The new paradigm creates problems that were not seen within the older paradigm (Kuhn, 1970) • With the new paradigm the world feels like a “juggernaut out of control” (Giddens, 1984) • Scientifically challenging • Unfalsifiable theory (ideological) • Anecdotal empirical evidence • Research based on comparison of treatments is not possible • Relevance for research • Important and interesting area for doing research (Ciborra et al, 2000)

25. Summary of lecture • Introduction • Industrial engineering (IE) and organisational development (OD) are both based on general systems theory (GST) • Total quality management (TQM) is use of IE for doing OD • The traditional TQM paradigm • TQM is GST from the viewpoint of electrical engineering • Mature science, but 80% TQM implementation failure • The new TQM paradigm • TQM is GST from the viewpoint of ecology • Sociologically convincing, but scientifically immature