PARIS GRADUATE SCHOOL OF MANAGEMENT BACHELOR OF BUSINESS ADMINISTRATION MG429: TOTAL QUALITY MANAGEMENT Case 1 The Case of the

e Stranded Traveller. Question a). In what way did the shuttle company fail to provide the promised services?

Answer to question (a). Introduction The shuttle service company failed to provide the promised services by making five mistakes that caused the stranded traveller to consider using another brand of shuttle service. We will now discuss some major areas of concern below.

Sample of a shuttle service van normally used for airport transfers. Photo credits accessed on July 13, 2011 : Ford Motor Company, http://www.ford.com/commercial-trucks/e-serieswagon/models/

The first failure The traveller decided to purchase the recommended reservations because he was already tired from his long flight to Dallas Texas, and the promotional materials promised very good PRIORITY SERVICE to all their customers. The shuttle service company failed the first time by not delivering on the promises made by their promotional materials. This promise was broken because the overall service rendered did not meet the priority

set by the stranded traveller. The example from the case stated that the traveller had to wait almost twenty minutes before he actually saw a company van instead of the original ten minutes as promised earlier over the phone. The second failure The shuttle service company failed the second time by making the stranded traveller wait for at least thirty five minutes before he could see the second company van driver who was willing to help him1. The traveller was not prepared to enter the company's van because the van did not show the correct destination after thirty five minutes. The stranded traveller however entered the company van after the van driver requested permission and was granted a change of route. This is an example of an employee who tried to use empowerment2 to take ownership and focus on improving the process (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). The third failure The shuttle service company failed the third time by not going to the hotel destination immediately. The company van was forced to circulate among the airport terminals. The driver of the company van had requested with the dispatcher for permission to take the passenger to the hotel but was denied. This example indicated that the shuttle service company was only focused on short term goals instead of the customer's needs3. Due to this reason, the stranded traveller started to get really angry.
1

D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003), Benefits of Employee Involvement Chapter 4, page 121
2

D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003), Empowerment, page 96
3

D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003), The Root Cause of Unethical Behaviour Chapter 2, page 25

The fourth failure The shuttle service company failed the fourth time because the passenger had to wait for at least forty five minutes, when they finally had three passengers in the van before being allowed to leave the airport. This is the problem of having rigid rules and regulations in the company's policy. There was not enough flexibility to allow the driver more authority to make their own decisions. The fifth failure The shuttle service company also failed again the fifth time because the company van driver was not well trained enough to remember the proper directions. This is demonstrated by the example in the case, when the driver confessed that she was not very familiar with that hotel and had to rely on another passenger's directions. A good shuttle service should have well trained drivers 4 who know all their destinations well. Teams cannot be expected to perform well unless they are well trained in problem solving and have good communication skills (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). This will reflect badly on the company's image of having poorly trained staff. In conclusion, the shuttle service company failed at least five times to deliver quick priority service as promised. They failed to take into consideration the customer's immediate needs. The traveller's needs was simple, to get to the hotel quickly. This is because he wanted to get a good rest and prepare for his company meeting without any delay after a long flight.

D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003), Common Barriers to Team Progress Chapter 4, Page 110

Question b) Were the dispatcher's decisions appropriate? Why?

Answer to question (b). Introduction The dispatcher, did not make the appropriate decision because the stranded traveller had at least three reasons why he would re-consider never to use the same shuttle service again. We will now look at the reasons why the dispatcher choose to make these decisions.

Sample photo of a dispatcher at her desk. Photo credits accessed on July 13, 2011: http://greeleygov.com/HR/emergencydispatcher.aspx.

The first reason The dispatcher promised the first van driver that the correct vehicle would be there momentarily to pick up the stranded traveller. This was an absolute lie to the customer. The dispatcher lied to protect from getting blamed for doing a bad job. The dispatcher tried to put the blame on the van drivers instead. The dispatcher failed to take responsibility for proper planning and co-ordinating the operations smoothly. If there was no vehicles in the area, they should just be honest about it and tell their customers the truth. At least by telling the truth, the customer could be offered some better solution such as riding in another shuttle service which should be paid by the shuttle company itself. Honestly is always the best policy when it comes to good customer service. The

customer would not mind using another shuttle service as long as he still manages to get to his hotel as soon as possible. This should help the customers perception, by showing how much they value their customer's needs. Instead of giving him more delays and poor service. The second reason The dispatcher failed to make another good decision when the second van driver was not given permission to leave the airport and proceed to the hotel immediately. The decision made by the dispatcher was according to the Management's Standard Operating

Procedures (SOP) or also known as Management By Objectives (MBO). One of the worse habits of poor decision making is choosing to follow the rules the right way perfectly. This old management style of doing things the right way goes directly against good Total Quality Management style of doing the right thing first. This is also part of Total Quality Management's priority to focus on customers needs first. The third reason When the dispatcher finally allowed the second van driver to leave the airport, the dispatcher failed again to give proper directions and navigation to the driver who was unfamiliar with the destination. The shows that the dispatcher was not familiar with all their driver's strengths and weakness. The dispatcher did not bother to assist the driver or the passenger after that. To the dispatcher's point of view, his or her job is finished. For example, the dispatcher could have offered more service to the driver and passenger by at least confirming with the driver whether they are familiar with all their hotel destinations. In this way, they can guide and give proper directions to their driver immediately.

In conclusion, the dispatcher did not show empathy and consideration by not putting themselves in the customers situation. The dispatcher failed to make the right decisions which was to allow the driver to go to the hotel immediately. The dispatcher did not prioritize the right job first5 . The dispatcher reasons that his or her job is to do the job according to the operating procedure perfectly. The driver in this example, tried her best to apologize for any delays but the customer was already too angry and too tired to make any complaints to her manager about the dispatcher's poor decision making.

Question c) How would you change the company's policies to improve its services? Answer to question (c). Introduction

TQM logo, photo credits accessed on July 13, 2011: http://clericalsolutions.wordpress.com/tag/tqm/

To improve the company's services, I would recommend changing the company's policies using the six basic concepts of Total Quality Management6.

D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003), Benefits of Employee Involvement Chapter 4, page 121

The first concept of Total Quality Management Management must choose to be committed and involved to provide long-term top-tobottom organizational support (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). This means that, management must first and foremost need to understand and practice total quality management in their daily activities. They will need to develop goals and set proper quality benchmarks. They should also involve the entire work force by asking for inputs from them. They should also reward their work force with proper recognition and rewards. This type of recognition and reward is important and shows that the company sincerely values their workforce. The company must start to appreciate the workforce for their knowledge, skills and abilities7 in handling their customers needs on a daily basis. They must always coach their workforce to take responsibility for every part of the quality process. The second concept of Total Quality Management

Photo credit, the transformation leader accessed on July 13th 2011, http://brucemctague.com/older-experienced-people-andtransformational-hires

Management must always have an unwavering focus on the customer, both internally and externally (D H Besterfield, C Besterfield-Michna, G H Besterfield, M BesterfieldSacre-Total Quality Management). Why must the employee be seen as an internal
6

D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003), Basic Approach Chapter 1, page 2
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D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003). Achieving a Motivated Workforce - Chapter 4, page 92.

customer? This is because the employee is also being served by each team member interdependently. In this example the dispatcher is serving her internal customer who is the driver. By satisfying her internal customer the process of serving the external customer becomes even better. The customers both internally and externally will appreciate serving each other more when working together in harmony. The future long term success of the company depends on this type of co-operation. The third concept of Total Quality Management Mangement must start to plan for an effective involvement and utilization of the workforce (D H Besterfield, C Besterfield-Michna, G H Besterfield, M BesterfieldSacre-Total Quality Management). This means that the workforce must be taught to change their behavior to think about how to improve their jobs. People must be taught and given the power to improve all the processes by striving to achieve the lowest number of errors or the highest number of good quality service. In this way the effective involvement of the workforce can benefit the company in the long run. The fourth concept of Total Quality Management Mangement must always strive for the continous improvement of the business and production process (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). This means that the company must strive to always better themselves with new knowledge and better equipment to handle the challenges of the future. One example is to consider using the latest Global Positioning Satellite Navigation Tools (GPS) in their company vehicles. This will help, all drivers and dispatchers to give correct feedback and immediate course correction if necessary.

The fifth concept of Total Quality Management Management should start to consider treating their suppliers as partners (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). In this example, management should try to focus on their vendors who supply their vehicle needs to help improve their company's performance. They should consider having a good working relationship that focuses on quality and life-cycle costs rather than on price. The vendor in this example can be the Ford Motor Company8. Ford is able to offer quality vehicles that have very good gas mileage and quick response to repair needs and parts acquisition. This is one way of having a working partnership with their suppliers. The sixth concept of Total Quality Management Management should start to establish performance measures for higher quality processes (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). This means that performance measures that affect customers satisfaction must be recorded on a daily basis. In this way the success of continuous quality improvement can be measured accurately. Benchmarking is needed in all activities that require quick response time and fast decision making. These performance measures should be posted for everyone to see. By doing this every employee is aware of how well or how badly they are doing in their daily job. This will motivate them to achieve more and get rewarded with incentives and recognition on a daily or weekly basis. In conclusion, the six concepts mentioned can help the company to change their policies to become more competitive. The company cannot be expected to see results over-night. This change in policies takes time to gradually grow step by step. The company's aim is
8

Ford Motor Company, information accessed on 14th July 2011http://www.ford.com/commercial-trucks/e-serieswagon/models/

to change the culture of their employees in the long run by focusing on overall customers satisfaction through continuous process improvements.

Question d) What are the lessons about customer focus, empowerment and leadership from this case? Introduction There are many lesson that can be learned about customer focus, empowerment and leadership from this case. We will now look at each of them in detail. Customer Focus The biggest lesson about customer focus that the shuttle company needs to realize is that there is no fixed level of quality. This is because the customer's values and expectations are constantly changing day by day (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). The shuttle company must realize that continuous improvement is the only guaranteed way to meet the customer's satisfaction. The shuttle company in this example, did not seek to understand the customer's new needs. They failed to understand the level of quality expected from the customer who purchased the Priority Service package.

They should try to anticipate the customer's changing needs through constant customer research and by looking at other competitors. Good planning and forecasting is necessary to anticipate whatever challenges ahead. Empowerment The biggest lesson on empowerment that the shuttle company needs to realize is, empowerment is an environment in which people have the ability, the confidence, and the commitment to take responsibility and ownership to improve the process that will satisfy

the customer's requirement (D H Besterfield, C Besterfield-Michna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). This means that empowerment is more than delegation or job enrichment. In this example, the driver tried to use empowerment but failed to negotiate well with the dispatcher. The driver gave up and refused to take responsibility or accountability for the dispatcher's decision. The company can no longer tolerate pointing the blame at each other. The company must learn to trust their employees by training them to focus on their customer's needs, this will assure them that whatever decisions they make should be customer focused. Leadership The biggest lesson on leadership that the shuttle company needs to realize is, leadership requires an intuitive understanding of human nature (D H Besterfield, C BesterfieldMichna, G H Besterfield, M Besterfield-Sacre-Total Quality Management). This means that all leaders need to understand that employees are not robots, employees should be treated with respect and can be coached instead of ordered and supervised constantly. Leadership is basically trying to understand and treating their employees and customer as our own family members with great care and concern. In conclusion, the six concepts mentioned can help the company to change their policies to become more competitive.

Appendix, Notes and Citations 1. D H Besterfield, C Besterfield-Michna, G H Besterfield, M BesterfieldSacre-Total Quality Management, Third Edition (New Jersey, Pearson Prentice Hall, 2003), Chapter 1 to Chapter 17.

2. Philip Kotler and Gary Armstrong, Principles of Marketing,7 th Edition (New

Jersey: Pearson Prentice Hall, 1996), Chapter 18, Building Customer Relationships through Satisfaction, Value and Quality, page 566 to 588.
3. Hertz Car Rental Company, information accessed on July 10th 2011-

http://www.hertz.com/rentacar/productservice/index.jsp? targetPage=Asia_MY_airporttransfers.jsp&leftNavUserSelection=globNav_3_5_ 1&selectedRegion=Asia

4. Ford

Motor

Company,

information

accessed

on

14th

July

2011

http://www.ford.com/commercial-trucks/e-serieswagon/models/ 5. Paris Graduate School of Management Total Quality Management MG429 Case 1: The Case of the Standed Traveller. Mantissa Tutor Name: Mr Chiam.