STRATEGIC MANAGEMENT

Shaira Mae Obliga

BSA – 4th Year

Activity: Business Excellence Model

Questions for Analysis:

1. What is the general concept of business excellence?
Business excellence is only achieved if there is harmony between enablers and results.
Business Excellence (BE) is about developing and strengthening the management systems and
processes of an organization to improve performance and create value for stakeholders. BE is
much more than having a quality system in place. BE is about achieving excellence in everything
that an organization does (including leadership, strategy, customer focus, information
management, people and processes) and most importantly achieving superior business results.

2. Compare the fundamental concepts of each business excellence model.

In Results Orientation, the concept of excellence is achieving results that delight all the
organization’s stakeholders. In Customer Focus, excellence is creating sustainable customer
value. In Leadership and constancy of purpose, excellence is visionary and inspirational
leadership, coupled with constancy of purpose. The concept of excellence in Management by
processes and facts is managing the organisation through a set of interdependent and
interrelated systems, processes and facts. People development and involvement, the concept is
that excellence is maximizing the contribution of employees through their development and
involvement. Continuous learning, innovation and improvement, excellence is challenging the
status quo and effecting change by utilizing learning to create innovation and improvement
opportunities. Partnership development, excellence is developing and maintaining value adding
partnerships. And lastly, the concept of excellence in Public responsibility is that excellence is
exceeding the minimum regulatory framework in which the organisation operates and to strive
to understand and respond to the expectations of their stakeholders in society.
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3. What concepts do all the business excellence models have? Why?

 Results orientation
 Customer focus
 Leadership and constancy of purpose
 Management by processes and facts
 People development and involvement
 Continuous learning, innovation and improvement
 Partnership development
 Public responsibility

The picture below shows that the core values and concepts are at the centre of BE. It is
the core values and concepts that are important to embed inside an organization. The BE
processes and results are located at the outer rim of the core values. One can see from the
figure that the core values and concepts cut across and impact on all the BE processes and
results. For instance, “Managing for Innovation” is an important part of all BE processes.
Therefore, it is important to know:
 How does the leadership team provide an environment for innovation?
 How do strategies encourage innovation in products, operations, and service delivery?
 How do operational processes enable the achievement of innovative designs for
products and services?
 How does listening to the customer, identify opportunities for innovation?
 How does comparing performance and systems with other organizations assist
innovation and improvement?
 How does organizational culture benefit from the diverse ideas, cultures, and thinking of
a workforce?
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4. Analyze the general intentions of coming up the business excellence models and how
they affect organizational performance.

Business Excellence Models (BEMs) are used by organizations to assess and improve
their work practices and performance. The model is used as a criterion for the assessment of
organization’s excellence. The impact of business excellence with key elements embedded can
be a tool for organization to determine opportunities and gain knowledge. This will help the
organization to learn how to adopt high- performance and achieve competitive advantage.
Through the business excellence model, the organization can execute their strategies to
determine, forecast and survive in highly competitive market. Business excellence models also
helps to communicate the importance of “excellence” in all aspects of a business, not only
product and process quality.