State of California M E M O R A N D U M Date: July 2, 1993 Reference Code: 93-45 To: PERSONNEL MANAGEMENT LIAISONS THIS MEMORANDUM SHOULD BE DISTRIBUTED TO: Personnel Officers From: Department of Personnel Administration Classification and Compensation Division Subject: Allocation Guidelines for Departmental Total Quality Management Coordinator/Manager Positions The Governor issued Executive Order W-47-93 to assist State Government agencies to improve the efficiency and effectiveness of their operations with fewer resources. Departments will designate positions to have depart- mentwide responsibility for coordinating and/or managing the development and implementation of "Total Quality Management" (TQM) philosophies and programs to improve their services. This memo communicates guidelines for allocation of positions where managing and/or coordinating the implementation of TQM will constitute all, or nearly all, of a position's responsibilities. Where responsibility for TQM is in addition to existing duties and responsi- bilities, the proper class and level for TQM oversight is not an issue. However, where a position is established or reclassified specifically to manage and/or coordinate TQM, it should as a general rule be allocated to Staff Services Manager (SSM) I, SSM II (Supervisory) or (Managerial), or in exceptional cases, to the CEA 1 level. The essence of the criteria for TQM-specific allocations is that they: - Should be limited term. - Should typically be at the second organizational level. - Could be CEA 1 (not higher) depending on the scope of responsibility assigned to the position. CEA allocations are appropriate if the position is: . at the second organizational level . part of the executive staff . clearly a decision maker and not primarily a facilitator, coordinator or trainer Specific criteria are as follows: Staff Services Manager I Positions at this level will have primary responsibility for facilitating and coordinating the implementation of TQM in their departments. Their duties may include training other managers and supervisors. In small departments, positions in this class should be at the second organizational level, reporting to the director's office, and have depart- mentwide responsibility for coordination. While positions in this class may recommend significant policy and procedural changes, they would not have the authority to effectuate such change, other than for a unit over which they have supervisory responsibility generally. In larger departments, positions in this class could be at the third or fourth organizational level, reporting to the chief of a major division, and serve as facilitator or coordinator for the division. Staff Services Manager II (Supervisory and Managerial) In medium and large departments, positions in these classes will function as facilitators and coordinators, and be at the second organizational level, reporting to the director's office, in most cases. Allocation to either of these classes will depend partly on the environment they will function in (political sensitivity, impact on the public), and partly on the delegation of authority and reliance on the position by top management. Allocations to SSM II (Managerial) must be supported by a clear role in the development and implementation of significant changes to departmental policies and operating procedures. CEA 1 Allocations to the career executive category will be exceptional and only to the CEA 1 level. Positions considered for allocation to CEA 1 must be distinguishable from positions at the SSM II classes by their authority to commit resources and influence change. This must be indicated, in part, by the position's reporting relationship (to the director/chief deputy), and by the clear indication that the position has the confidence of the director and will be relied upon for improvements to policies and procedures departmentwide. The incumbent should be part of the executive staff. Where a SSM provides advice, consultation and training which might be modified and put into effect by each program manager in accordance with his or her view of their needs, (thus indicating greater delegation of TQM decisions to the existing program managers), the CEA TQM manager would have more say (delegated authority) in program changes. This implies that, insofar as implementing TQM is concerned, the director has chosen to delegate more authority to one member of his/her executive staff. The bottom-line is that to be a CEA, the TQM position must be a decision maker and not just a facilitator, coordinator, or trainer. Other Pertinent Considerations Answers to the following questions may influence the allocation of a TQM responsible position more than considerations of department size, organiza- tional level, etc. 1. Who will be held accountable by the director for the development and success of the implementation program? 2. Who will decide which, if any, outside consultants will be used as program developers and/or trainers? 3. Who will be held accountable for the work of consultants, if they are used? 4. Who will lead the departmental TQM steering committee or Quality Council in the selection of which improvement projects will be undertaken or completed first? 5. Who will determine how department resources (money and people) will be used on TQM? 6. Who will determine the direction of TQM after its initial implementation? 7. Who will make the decision to break with tradition in any program area in order to begin doing things the "TQM way"? 8. Who will provide the director with expert advice on overall management issues, including such matters as optimum organization, job classifica- tion changes, etc.? 9. Who will have the most influence in redefining program goals throughout the department? 10. Does the executive staff fully understand and subscribe to TQM, or will the TQM coordinator/manager have quite a bit of "selling" to do at this level? Questions concerning these guidelines and considerations should be raised with your Classification and Compensation Division analyst before you get too far along in making decisions in this area. George P. Lloyd II, Chief Classification and Compensation Division