Managing Quality

Chapter 8. Policy Deployment

R. G. Lee and B. G. Dale

Introduction

An increasing number of organizations, as part of a strategic planning approach to continuous improvement, are starting to use policy deployment. It has been found that this concept is an excellent means of engaging all employees in the business planning process, obtaining harmony across functions, focusing an organization on the vital few objectives (VFO) to achieve business results, and turning strategic intent into an annual operating plan. The methodology is aimed at being consistent in target-setting and achievement, not just in magnitude but in overall organizational effectiveness. Figure 8.1 is an illustration of the policy deployment system from a manufacturer of ceramic products. According to Newcombe (1989), policy deployment 'helps create cohesiveness within a business that is understood throughout the company; it provides a structure with which to identify clear organizational goals'.

In the late 1980s the concept of policy deployment was little known outside Japan. Dale (1990) recalls leading study missions of European executives and management consultants to leading exponents of TQM in Japanese manufacturing industry in 1988 and 1989, and it was clear that, when the concept of policy deployment was introduced by the Japanese host organization, this was something new to the study mission participants. This prompted Dale to write an introductory piece on the concept.

Policy deployment is the Western translation ...