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Maqbouleh M. haMMoudeh

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Quality and Transformation in the Arab World

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Islamic Values and Management Practices

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http://www.gowerpublishing.com/isbn/9781409407522

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Professor Ronnie Lessem Dr Alexander Schieffer Series Editors

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Maqbouleh Hammoudeh is the first management consultant, educator, researcher and practitioner in the Arab world in contemporary times to co-evolve and subsequently apply an approach to management that draws on and develops, explicitly, Islamic philosophies and practices. Originating from Prophet Mohammad, and subsequently evolved for contemporary purposes by her consulting colleague Dr Assaf, so-called I.Theory I. for simultaneously Islamic and international has been taken forward and applied by Hammoudeh in the public, private and civic sectors, currently in Jordan, and prospectively in the Arab world. It is a way of bringing balance and justice to the forefront of management in the Arab world and of focusing on Islamic values. We are personally extremely proud of what Maqbouleh has accomplished in this book. She has done an amazing piece of work in bringing an Islamic approach to management into both the local and global arenas. We believe that this book represents a giant step forward for all management practitioners in the Arab world in achieving organisational objectives in quality and transformation, as illustrated by the two case studies featured in it. The first one concerns the development of the Royal Society for Conservation of Nature in Jordan and the second is about the growth within and of the Al-Quds Paints Co. as a producer in Jordans industrial sector. Each of these organisations sees itself as a values-managed organisation. For this social innovation, Maqbouleh Hammoudeh has been awarded a doctorate by Geneva-based TRANS4M, an internationally active institute of higher learning and a senior evaluation council for social innovation, comprised of internationally respected academics from around the world and outstanding representatives from Jordanian society.

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Preface

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My chief objective is thus to apply a management theory to Jordanian and Arab organisations that is based on Islamic values and culture rather than on Western management theories, with a view to achieving an authentic transformation, starting on a local level, but with a view to the global. I.Theory stands for an Islamic management model. Using case studies of the Royal Society for the Conservation of Nature (RSCN) (a civil society organisation) and Al-Quds Paints Co. (a business), it will be demonstrated how individual culture and organisational culture can be aligned and the security of societal culture can be achieved. Enterprises in the Middle East currently face urgent concerns and challenges in matters of organisational sustainability, quality of life and total quality management (TQM). Therefore, they may need to reconsider their ways of thinking in order to become more attuned with our genuine values and culture, particularly at this time of so-called Arab Awakening.

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How can we develop a management theory based on Islamic values that will lead to greater quality and transformation in Arab organisations? 2. What is the specific role of I.Theory in supporting the development of a local identity towards global integrity?

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At a time when the world in general, and the Arab world in particular, is awakening, if not still in despair, this book introduces management by values, using I. (Islamic and International) Theory, specifically in relation to quality and transformation. I shall be focusing on this as a means to improving the quality of life and work in the Arab world of the basis of Islamic values. The aim of this approach, which I am exploring in both my personal life and in my professional work, is to search for new means of unification between individuals and organisations in Jordan and the Middle East. Through this new perspective I hope to serve both business and society, and to make of use my own personal and business journey in order to implement total quality in Jordanian and Arab organisations and a better quality of life in a turbulent environment. My aim is to review I.Theory and its implementation in management based on culture, including values and, most importantly, the alignment between employees and senior management. In this regard, I shall address two burning questions:

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Burning Questions

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Part 1: Context

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This introductory chapter presents a detailed summary of the 12 chapters of the book.

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Orientation

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In 1984 I joined TEAM (Transport, Engineering and Management) International consultants, a Cairo-based pan-Arab management and engineering consultancy. I discovered, at least initially, that TEAM and I shared the same objectives and philosophy. It was a great opportunity for me to implement my own beliefs and thinking with regard to sustainable organisations and organisational development in general, to elevate the level of professional services and to introduce socio-political navigation into our Arab organisations. However, what I had not thought through at that time was that such navigation was more Western than Islamic or Arab in orientation. In 1995, TEAM (Jordan) began to offer its customers the ISO 9000 quality management system as the first step towards implementing TQM in their organisations. We were relating a global quality approach (ISO 9000) to a local culture, rather than evolving a

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the organisation in which i work

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I was born into a Palestinian family in a small Palestinian town in 1947. This was a catastrophic year for the Palestinian people, which led to our becoming refugees in neighbouring Arab countries, in Jordan in particular, where my family ended up during that earliest period of my life. I graduated in 1969 with a bachelors degree in Economics and Statistics, and hoped that one day I would become a minister of planning and implement development strategies for the lagging Jordanian economy. I was also encouraged by my fathers immortal saying: A penny saved is a penny earned. He would quote from the holy Quran, and always urged us to avoid waste in every possible way. During my university studies, the second ArabIsraeli war erupted, in June 1967, and more Palestinian refugees flooded into Jordan. This had severe repercussions for both the economy and our people, and I wondered how we could build societies and achieve any progress while wars were erupting every 10 or 20 years. Against the odds, I struggled to create a position for myself and embarked on my career. From 1970 until now, I have worked in education and in management consultancy in the whole of the Arab region, most specifically in Jordan. I worked first as a teacher of girls in Yemen and Libya, and in mixed schools in Algeria. I faced many challenges in all of these countries, especially in Algeria, where I found the language to be a problem. After eight years as an expatriate, I decided that it was time to return home and start drawing more purposefully on my beliefs and principles in order to build upon the economic and management disciplines that I had previously taught in community colleges in Amman. These principles of mine are strongly based on mastery (Itqan) in Islam, which not only emphasises the quality of performance but also displays its ethical and spiritual context, as stated by Prophet Mohammad: Allah loves to see ones job done at the level of Itqan (Saheeh Muslim).

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My own story

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In Chapter 2, I will set this book in the context of the emerging or indeed awakening self, organisation and society, beginning with my own story.

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the story so Far

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In Chapter 3, I pose the following critical questions: How can we, as management consultants, help organisations to achieve organisational transformation and a better quality of life? How can we facilitate the transformation process inside the organisation? What values should top management espouse in order to achieve quality and

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FroM ManageMent Consulting to al shura

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Jordan is a small county. The population is of mixed origins, due to past and present wars (including ArabIsraeli wars and USIraqi wars). This turbulent environment has led to instability and insecurity throughout the Middle East region, and Jordan has been significantly affected by it. Because it is a country of limited natural resources, it has been essential, over the past decades, for Jordan to transform itself from a so-called underdeveloped desert kingdom. It therefore became a priority for entrepreneurs and people in general to start building more fully functional, values-oriented organisations, with a special emphasis on their long-term sustainability. Yet, people observe double standards on a daily basis. They believe in management by values, but at the same time they feel that these values do not matter so much when they see successful organisations behaving unethically or worse, when powerful and influential people create havoc in the world while preaching the good news. During the past decade the government of Jordan has joined up with the World Bank to come up with reform strategies so as to create improvements in different sectors. However, the focus of these strategies is chiefly technological and economic, and there is scant regard for cultural, ethical and spiritual matters. Modernisation, as currently portrayed in Jordan, is somehow modest and shallow to a great extent lacking in important features such as delegation, proper systems and even professional relations between managers (Al-Rasheed, 2001).

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My society

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local approach with a view to making it more global. This was to come later, through I.Theory, which I was to co-evolve in my doctoral work. Nevertheless, we were pioneers in Jordan and managed to export this service to the majority of TEAM branches around the Arab world. The ISO 9001 and ISO 9002 quality management systems were very necessary for organisations, helping them to document their procedures and providing them with clear guidelines to follow. In a further development, we signed an agreement with the University of Buckingham to run its masters programme in Transformation Management. This was ostensibly to promote organisational learning and knowledge creation in organisations in the Middle East. Participants and organisations, myself and TEAM (Jordan) included, underwent a process of transformation in which they grounded themselves in Arab and Islamic culture, with a view to transforming themselves from a localglobal perspective. As we shall see, the co-operative inquiry teams at RSCN (where the management director was a graduate of the Transformation Management programme) and Al Quds Paints Co. are living examples of the transformation that we are promoting. Today TEAM (Jordan), my consultancy company, is eager to promote and see the results of I.Theory, that is, management by (Islamic) values. We believe that ours is the only consultancy company in the Arab world today that is doing this.

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The epistemic side of this paradigm is about participative knowing. This experiential knowing involves the following, as per John Herons Co-operative Inquiry:
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the epistemic perspective

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Co-operative inquiry as a methodology was developed by John Heron (Heron, 1996). His approach is based on the democratic participation of the individual within a group. It involves two or more people researching and developing a topic or area of concern and using a series of cycles in which they move between action and reflection. The methodology is distinctive in its co-operative approach. It includes four ways of knowing: Experiential, Imaginal or Presentational, Propositional and Practical. These were applied in both the RSCN and the Al-Quds Paints Co. The knowledge modes conceived by Heron are quite distinct, and take us on to a particular and transformative mode of thought, and ultimately to action.

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Co-oPeratiVe inQuiry Methodology

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I also draw on case-study methods to review the application of I.Theory in the RSCN, a non-profit organisation, and Al-Quds Paints Co., a small factory aiming to achieve the required transformation. This method is compatible with the co-operative inquiry methodology: it covers the contextual conditions and answers the main questions in this book.

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Method

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In Chapter 4, I explain why I use the co-operative inquiry methodology developed by John Heron and how it helps in achieving the main objectives described in this book self-, organisational and societal renewal, within a framework of epistemology and knowledge.

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Methodology

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Part 2: Methodology

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transformation? Here, the value on which I draw in particular is Al Shura (consultation) in Islam. One definition of Al Shura is negotiation and dialogue to reveal what is right. The aim is to know what is correct, after first becoming acquainted with all the elements of a particular issue and considering numerous points of view. Al Shura is to submit difficult problems in worldly and religious affairs to people who are known for their wide practical experience and wise advice. It is to listen to different opinions and deduce suitable solutions (Al-Tamimi, 2003). As a management consultant, I believe that our role not only entails corporate diagnosis, but can actually extend to include social aspects as well. Therefore, we can address certain social problems that may have significant effects on the corporate life cycle, since we are both targeting organisational sustainability and, most importantly, aiming to achieve a better quality of life.

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In Chapter 5, I focus on TQM and its features. The chapter covers the history of Total Quality (TQ), which commenced in the Muslim world in the days of Prophet Mohammad (Peace be upon him) and is related to his sayings about Itqan (perfection). I also include other philosophers, such as the American W.E. Deming, and discuss Demings principles and how we can improve quality according to his chain reaction and the 14 points that he drew up to help people transform their businesses (Deming, 1986). Deming believed that in order to achieve TQM, management should base systems on statistical quality controls, on the one hand, and that there should be continuous improvement and progressive product development efforts, on the other hand, in manufacturing processes. He also stressed that top management needs to be firm and

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total Quality ManageMent in aMeriCa and JaPan

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The backbone of this book is the theory (Part 3), which consists of six chapters related to quality of life from an Islamic perspective. It covers subjects such as TQM as a lifestyle based on Itqan (perfection) in Islam and transformation. It also includes a comparison between Islamic theory in management (I.Theory) and Western and Japanese theories, as well as Islamic values and my role in evolving the I.Theory in terms of its implementation on both cultural and systems levels in Jordanian organisations.

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FroM totality Quality ManageMent to i.theory

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Part 3: Content

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This perspective holds that the subjects participate as researchers in the inquiry process, including the generation of knowledge, decision making and so on. This is based on the idea that people have the right to participate in decisions that affect their lives, in accordance with the principles of democratisation and empowerment. As we shall see in the case studies, RSCN and Al-Quds Paints Co. began to adopt the participatory approach in every decision in order to germinate the democracy indicated in John Herons Co-operative Inquiry, thus building confidence and quality in order to transform their respective organisations and create organisations managed by values derived from local roots and a culture based on Islamic values and ethics.

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the political perspective

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Participation through empathetic communion and imagining, whereby knowing is mutual and awakening. Participation in anything explicitly is to participate in everything tacitly. The distinction between participative and non-participative knowing, in which the knower splits subject from object. Integration of the three stages which reflect the human stages from childhood to ego development, then to mature integration. Holism of inquiry, grounded in participative knowing.

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In Chapters 7 and 8, I review management philosophy from a comparative perspective. In Chapter 7, I compare and contrast the development of management philosophies prior to the Industrial Revolution. The first management approach was that of management

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Managerial PhilosoPhy: CoMParatiVe aPProaCh

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In Chapter 6, I discuss the origins of quality practices in Islam, such as Shura (consultation), and the meaning of Itqan (perfection) as quality of work as well as quality of life. I also cover the work of some Muslim scholars who talk about quality and ethics. For example, the Hisba system, which is a quality and control system, and the features of Almuhtasib (inspector) are presented as elements of the quality system in Islam. Further, the documentation system in the Islamic state, called Dawaween, is similar to information management and control systems. I also make a comparison between Islamic quality and the modern approach in quality (ISO 9000) and TQM. At the end of Chapter 6, I point out that, despite the many successful cases associated with the implementation of ISO 9000, there is still substantial criticism of it. For example, John Seddon (1997) has built a critique based on the erroneous philosophy of ISO 9000, which, according to him, focuses on commands and control rather than improvement and development. However, I believe that we should study all management theories and, at the same time, develop our own, based on our culture and religion, to promote the quality and transformation we yearn for.

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Quality in islaM

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consistent in terms of commitment and compliance and that, most importantly, it should assume total responsibility for quality improvement. J.M. Juran, on the other hand, focused on customer satisfaction and the importance of having deficiency-free products in order to avoid customer dissatisfaction (Rampersad, 2005). But philosophers have different approaches to the implementation organisational change by targeting development and sustainability. As for Japanese TQ philosophers, Ishikawa and Taguchi introduced principles such as quality planning, quality control, the Ishikawa diagram (fishbone diagram) and quality improvement. Ishikawa built and promoted greater involvement of top management than of frontline staff and reduced the reliance on quality professionals and quality departments. And while Taguchi explained the economic value of reducing variation, he maintained and measured quality as a variation from the target value of design specification and translated it in economic terms (loss function) that express the cost of variation in monetary terms. Despite the implementation of TQM in the West or the East, we need an Islamic theory that reflects our culture and value system. I.Theory has features that have evolved from our history, ideology and religion that could enhance the chances of successful TQM practice. These features include Tawheed (unification of individuals with the group), Itqan (perfection) and justice, as will be explained later. This could provide a satisfying answer to my first question: How can we develop a management theory that is based on our culture rather than on Western theories and that can be implemented within our organisations?

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I.Theory relies on effectiveness, which means efficiency plus two major elements:

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The context of I.Theory leads to co-operation as an Islamic value. For Muslims, the justice value in the life of any organisation is the ultimate value, which brings balance between the soul and spirit of the individual, on the one hand, and the soul and spirit of the group, on the other. Table 1.1 summarises the differences between I.Theory and Western and Eastern management theories.

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unifying organisational objectives with those of employees making sure that continuous improvement is seen through a total strategic view, and for the long run.

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The need to build human organisations, socially and politically as well as commercially. Such organisations should be comprised of many elements, with the human being at their centre. Related to that should be a value system, forming the moral basis of the organisation. 2. Justice is the ultimate value in I.Theory. It is one thing that every organisation cannot do without, because the Islamic concept of justice is derived from divine guidance. In one of his aphorisms, Ali Ibn Abu Talib (the last of the four caliphs who ruled after Prophet Mohammads death) said: Justice puts everything in its place (Nasr, 2004). Justice is related to balance, and to giving each thing its due (Haqq). It is having everything in its own place according to its nature, and it is a divine requirement to search for balance in our lives. 3. The need to identify the management value systems that comply with the models core value. Such compliance with values is necessary to guarantee harmony and avoid conflict of interests between business owners and workers.

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In Chapter 9, I focus specifically on I.Theory, which is based on a number of principles, including:

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by sufficiency (which means following rules and regulations), which then evolved into management by efficiency, which is sufficiency plus an initiative to innovate and create. These management philosophies are still applied in the West. However, the third philosophy in which I am interested is management by effectiveness, which is based, for me, on values and culture. It also means efficiency plus two major elements: First is the unification of objectives among individuals (employees) and the group (management) and society. Second is continuous improvement based on initiative, innovation and creation. This is, basically, the essence of the Islamic Theory (I.Theory) that was developed first by my colleague Dr Abdelmutti Assaf, and thereafter by me, whereby we developed the concepts of I.Theory in management, based on management by values and culture.

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table 1.1

comparison between I.theory and Western and eastern management theories, based on management styles

Value interest style of management Management environment

Justice Unification of individual and group interest Management by effectiveness Co-operative environment

individual freedom individual interest Management by sufficiency and efficiency

social equality

group interest Management by effectiveness Co-operative environment

Source: Developed by researcher

Part 4: application
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the royal soCiety For the ConserVation oF nature (rsCn)
Chapter 10 presents first case study. The RSCN began to implement all the elements and governing rules of I.Theory, providing me with an opportunity to monitor and test the theory on the ground and to see how the RSCN could use it to achieve a new management orientation and transcendent quality. From there, I launched I.Theory in its entirety, through my meetings as a co-researcher with the co-operative inquiry teams of researchers at RSCN. Through my application of I.Theory at RSCN, we began to transform towards a Beit al-Hikma (House of Wisdom) (Khaled, 2005). RSCN, then, has adopted an Islamic

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From a philosophical point of view, the main element of I.Theory is Al Tawheed (oneness), which can be translated as unification or the act of uniting or bringing together all that is conflicted or paradoxical in order to create harmony. The unification process allows for genuine compatibility between each group or organisation and the goals of individuals within such groups. This cannot be achieved without real and total unification of the duality (individual and group). Achieving unification at all levels, from an Islamic point of view, requires building systems according to specific norms and regulations. In all universal phenomena, there are many rules and regulations that are used to build systems with precision and accuracy. Likewise, there are flexible and dynamic elements for building systems and regulations in a society in order to achieve quality and sustainability. These regulations are based on Islam and aim to protect societies and conserve natural resources. For instance, Abu Baker Alsiddique (the first caliph) gave the following Ten Commandments to Yazid Ibn Abu Sufyan, one of his army leaders: Do not kill a woman, a child or an old person. Do not cut a fruit tree, or destroy buildings. Do not kill a goat or a camel except for a meal. Do not burn palm trees, or flood them. Do not betray and do not spread panic (Al-Tamimi, 2003).

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* By West, I refer mainly to the USA.

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east (Japan)

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11

In Chapter 11, I build up the second case study, of Al-Quds Paints Co., a private enterprise where I have had a second opportunity to implement I.Theory and build human resource (HR) systems. I started with a co-operative inquiry team headed by the general manager, Amer Jubran, who was introduced to the world of paints at the age of 10, during the school summer holidays of 1983. The factorys journey is a story of blood, sweat and tears and ultimate success. During my work with Amer Jubran and the co-operative team, he was highly committed to implementing the values-managed organisation concepts based on Islamic values, and gave all his attention to the cultural change that took place with the implementation of the systems that we built together. He started applying all the principles required to create a values-managed organisation, with some special emphasis on knowledge sharing, codes of ethics, evaluation processes and the learning organisation. As we shall see, there were at least four main types of inquiry outcome, corresponding to the four types of knowing: experiential, presentational, propositional and practical. The co-operative inquiry methodology required the collaborative participation of key members of RSCN and Al-Quds Paints Co., together with me. We worked with case methods to test the assumptions built into the I.Theory, in order to evolve them accordingly, and ultimately to develop the two organisations towards quality and transformation.

Chapter 12 reflects my conclusions. I have tried to re-visit quality and transformation from the perspectives of I.Theory and of the absence of justice and will in our countries, in addition to future implications and my future role. To conclude, through the implementation of systems based on I.Theory we have sown the seeds of a new localglobal quality of working life. However, identifying the results will be part of my continuing work on other consultancy-based assignments involving other Jordanian enterprises in the private sector.

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Part 5: Conclusions
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al-Quds Paints Co.

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knowledge perspective and has begun, or at least attempted, to implement the justice value amongst its employees. What sort of difficulties did it face during this transitional period? How will managers and employees accept this radical change? What will emerge from it, as far as an Islamic approach to quality and sustainability is concerned? How do the systems of I.Theory work in practice specifically in the context of an organisation working with nature and with close-knit rural, Bedouin communities? What is it that I am testing overall? I am reviewing and testing quality and transformation. Through my role in management consulting, my norms are propelling me to implement and help to create standards to achieve quality (Itqan) in Islam, and transformation development, and to promote them through management by values. However, from the beginning, the transformation process appeared to emanate from an initial change in the top management, when Yehya Khaled was appointed Acting Director General, after having lived through the preceding transformation process at RSCN and undergone the masters course in Transformation Management at Buckingham University.

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I will now proceed to the first part of this book and the story of myself, my organisation and my society that provides a backdrop to the burning issues we are addressing as the Arab Awakening takes place around us, at least in my consultancy-based case, from an Arab institutional perspective.

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