Dr.L.

Prakash Sai

The Foundation …Business Excellence

Industry Leadership

Business Excellence Criteria

Core Values

1
 Core Values & Concepts
How does the organizational
Visionary Leadership
leadership team balance the needs
of stakeholders?

How do they ensure the creation of

strategies, systems, and methods
for achieving excellence,
stimulating innovation, and
building knowledge and
capabilities?

Senior leaders to serve as role

models through their ethical
behavior and their personal
involvement in planning,
communications, coaching,
development of future leaders,
visioning…

Core Values & Concepts

Visionary Leadership

It means much more than reducing

Customer- Focused defects and errors, meeting
Excellence specifications, or reducing
complaints.

How does the organization

differentiate its products and
services from competing offerings?

It demands constant sensitivity to

changing and emerging customer &
market requirements.

2
 Core Values & Concepts
Visionary Leadership
Customer- Focused
Excellence
Valuing People
Core Values & Concepts
Visionary Leadership
Customer- Focused
Excellence
Valuing People
Organizational Learning & Agility
Is the organization committed to
engagement, development and well-
being of its employees?
Do people have opportunities to
learn so as to prepare them for
future organizational core
competencies?
Does the organization create an
inclusive environment for a diverse
workforce?
Sources for learning include
employees’ and volunteers’ ideas,
R&D, customers’ input, best-practice
sharing, competitors’ performance,
and benchmarking.
Are you capable of managing risk
and making transformational
changes on an ever-shorter cycle
time?
How does the company form
partnerships and alliances to create
new source of strategic advantage?
3
 Core Values & Concepts
Visionary Leadership
Customer- Focused
Excellence
Valuing People
Organizational Learning & Agility
Focus on Success
Core Values & Concepts
Visionary Leadership
Customer- Focused
Excellence
Valuing People
Organizational Learning & Agility
Focus on Success
How does the organization
anticipate many factors that affect
its future business such as evolving
regulations, market conditions,
technology developments, new
business models?
Includes developing your leaders,
workforce, and suppliers;
succession planning; supportive
environment for taking intelligent
risks and encouraging innovation;
and anticipating areas for societal
contributions and societal
concerns.
Managing for Innovation
Is the organization making
meaningful change to improve
its products, services, and
processes and to create new value
for its stakeholders?
Innovation should be integrated
into daily work and be supported
by your performance improvement
system.
4
 Core Values & Concepts
Visionary Leadership Managing for Innovation

Customer- Focused
Management By Fact
Excellence

How does the organization

Valuing People manage performance with
respect to all stakeholders?

Organizational Learning & Agility A major consideration in

performance improvement and
change management involves
Focus on Success the selection and use of
performance measures.

What gets measured gets done!

Core Values & Concepts

Visionary Leadership Managing for Innovation

How does the organization focus on

Customer- Focused
meeting the basic responsibilities of Management By Fact
Excellence
business ethics and protection of
public health, safety, and the
environment.
Valuing People Societal Contributions

Organizations should not only meet

all the state and
Organizational federal&laws
Learning but use
Agility
these as opportunities for
improvement “beyond minimal
compliance”.
Focus on Success

For a role-model organization,

leadership entails influencing
other organizations, private and
public, to partner for these purposes.

5
 Core Values & Concepts
Visionary Leadership Managing for Innovation

ClearlyCustomer- Focused
articulated ethical principles, Management By Fact
along with Excellence
your organizational
values, empower your people to
make effective
Valuingdecisions
People and may Societal Contributions
serve as boundary conditions for
determining organizational norms
and prohibitions.
Organizational Learning & Agility Ethics & Transparency

Transparency is a key factor in

workforce engagement
Focus on Successand
allows people to see why actions are
being taken and how
they can contribute.

Core Values & Concepts

Visionary Leadership Managing for Innovation

Customer- Focused
Management By Fact
Excellence

How doesValuing
the organization
People
focus on Societal Contributions
results and balance value for its
stakeholders?
Organizational Learning & Agility Ethics & Transparency
By creating value for its
stakeholders the organization builds
loyalty and contributes to growing Delivering Value & Results
Focus on Success
the economy and contributes to
society.

6
 Core Values & Concepts
Visionary Leadership Managing for Innovation

Customer- Focused
Management By Fact
Excellence

Manage all the components of your

Valuing People Societal Contributions
organization as a unified whole to achieve
your mission, ongoing success, and
performance excellence.
Organizational Learning & Agility Ethics & Transparency
For your business ecosystem, synthesis
means understanding your organization as
Focus on Success Delivering Value & Results
part of a larger whole.

Systems Perspective

Core Values & Concepts

Visionary Leadership Managing for Innovation

Customer- Focused
Management By Fact
Excellence

Valuing People Societal Contributions

Organizational Learning & Agility Ethics & Transparency

Focus on Success Delivering Value & Results

Systems Perspective

7
 The Objective…Business Excellence
Delivery of ever-improving value to customers, resulting in marketplace success

Customer

Suppliers
Shareholders

Society
Employees

Creating & Balancing value for all Stakeholders

Improvement of overall organizational effectiveness and capabilities

Business Excellence Awards

National Frameworks

Business Excellence Award Country/Continent Establishment

Malcolm Baldrige National Quality USA 1987
Award
Australian Business Excellence Australia 1988
Award
European Foundation for Quality Europe 1992
Management
CII-EXIM Bank Business Excellence India 1994
Award
Singapore Quality Award Singapore 1994

8
 The Dimensions…Business Excellence

Values Processes Approach

Processes Practices Deployment

Practices Outcomes Results

The philosophy…Business Excellence

Approach Deployment Results

Review, Align & Improve

1
Leadership 5
Workforce
Focus
2 7
Strategic
Work Core Results
Planning
6
Operations
3
Customer Focus
Focus 4

Driver Triad Measurement, Analysis and Knowledge Management

9
 The Criteria build on
Core Values & Concepts…

which are embedded in

Systematic Processes…

yielding
Performance Results.

10
 MBNQA Model
Approach & Deployment TOTAL
Max- 550 Points Max- 1000 Points

85 85

450
120

85 85

90

11
 Managing the components and
1.1: Leadership the entire system…
–setting
direction thru
the Vision.
2.1: Strategy
Development:Determin
e the strategic
objectives 7.2: Financial
Results
3.0: Customer
Focus –
Execution of 7.1: Customer
Plans Focussed
Results
5.0: Human 1.1: Leadership -
Resource Focus Organizational
–Execution of 7..3: Human Performance
2.2: Strategy Plans Resource Review
Deployment:Develop Results
Action Plans. 4.0: Information
& Analysis
Execution of 7.4:
Plans Organizational
Effectiveness
Results
6.0: Operations
Focus–
Execution of
Plans

4.0 : Selection of measures/indicators; Collection and analysis of

data for the selected measures.

12
 Use of E & I – to Align & Integrate
Integrated

Using E & I
Aligned

Pockets of excellence

Companies need to do both…

Improvement
in each area
Alignment
& Integration
= Business
Results

13
 A point to note

Opportunity For Improvements New Initiatives

Plan, Do, Study

and Act (thru CFT)

Approach Deployment Measures

Measure E&I Aligned Integrated

Vision
Mission
Values

Lead Lag

Baldrige Index Beats Market

180
Q-100
S&P 500
160
Bn. Dollars

140

120

100
Se 99

Se 00

Se 1
Ja 98

Ja 99

Ja 00

01
No 98

No 99

No 00

No 01
M 99

M 00

M 01
M -99

M -00

M -01
Ju 9

Ju 0

Ju 1
l -0
-9

-0

-0
l-

l-
p-

p-

p-

p-
v-

v-

v-

v-
n-

n-

n-
ar

ar

ar
ay

ay

ay
Se

14
 Scores vis-a-vis global image
Global Image
876 – 1000: World Class Leader

751 – 875: Benchmark Leader Excellent

651 – 750: Industry Leader

551 – 650: Emerging Industry Leader

451 – 550: Good Performance Average

351 – 450: Early Improvements

251 – 350: Early Results

Poor
0 – 250: Early Development

What Does It Take To Drive Excellence?

Ability To Align The Organization

Ineffective due to
High

Inability of the org. to Capable of achieving

assimilate and hold the And sustaining
gains through systems
and processes Business Excellence

Ineffective due to inability

To Focus on what Is
Important for Breakthrough
Performance
Low

Ability To Strengthen Systems / Processes

Low High

15
 A better understanding of the structure…
Category
Req’ment

Basic
Purpose

Area To
Address

Overall Item
Requirement

Multiple Item
Requirement

A better understanding of the maturity flow…

16
 MBNQA
Evaluation
Process

The Scoring System

The scoring of responses to Criteria Items (Items) and

Award applicant feedback are based on two evaluation

dimensions:

1. Process and

2. Results.

17
 Process
“Process” refers to the methods your organization uses and improves to
address the Item requirements in Categories 1–6.
The four factors used to evaluate process are (A–D–L–I):
“Approach” refers to:
 the methods used to accomplish the process
 the appropriateness of the methods to the Item requirements
 the effectiveness of your use of the methods
 the degree to which the approach is repeatable and based on
reliable data and information (i.e., systematic)

“Deployment” refers to the extent to which:

 your approach is applied in addressing Item requirements
relevant and important to your organization
 your approach is applied consistently
 your approach is used (executed) by all appropriate work units

Process

“Learning” refers to
 refining your approach through cycles of evaluation and improvement,
 encouraging breakthrough change to your approach through innovation,
 sharing of refinements and innovation with other relevant work units and
processes in your organization.

“Integration” refers to the extent to which

 your approach is aligned with your organizational needs identified in
other Criteria Item requirements
 your measures, information, and improvement systems are
complementary across processes and work units
 your plans, processes, results, analyses, learning, and actions are
harmonized across processes and work units to support organization-
wide goals

18
 Results
“Results” refers to your organization’s outputs and outcomes in achieving
the requirements in items 7.1–7.5 (category 7).
The four factors used to evaluate results are levels, trends, comparisons,
and integration (LeTCI).
“Levels” refers to
 your current level of performance

“Trends” refers to
 the rate of your performance improvements or the sustainability of good
performance (i.e., the slope of trend data)
 the breadth (i.e., the extent of deployment) of your performance results

“Comparisons” refers to
 your performance relative to appropriate comparisons, such as
competitors or organizations similar to yours
 your performance relative to benchmarks or industry leaders

Results
“Integration” refers to the extent to which
 your results measures (often through segmentation) address
important customer, product, market, process, and action plan
performance requirements identified in your Organizational Profile
and in process items.
 your results include valid indicators of future performance.
 your results are harmonized across processes and work units to
support organization-wide goals.

19
(0-5%) (10-25%) (30-45%)

(50-65%)
(70-100%)

20
 EFQM
European Foundation
for Quality Management
The EFQM Model
structure is based on
the simple but
powerful logic of
asking three
questions:
I. “Why” does this
organisation exist?
What Purpose
does it fulfil? Why
this particular
Strategy?
(Direction)
II. “How” does it
intend to deliver on
its Purpose and its
Strategy?
(Execution)
III.“What” has it
actually achieved
to date? “What”
does it intend to
achieve tomorrow?
(Results)

EFQM
Scoring

 The EFQM Model are

scored out of 1000 points.
 The 1000 points are divided
across the seven criteria.

21
 EFQM
RADAR
RADAR logic states
that an organisation
needs to:
 Determine the
Results it is aiming
to achieve as part
of its strategy
 Have in place a
number of
Approaches that
will deliver the
required results,
both now and in
the future
 Deploy these
approaches
appropriately
 Assess and Refine
the deployed
approaches to
learn and improve.

CII-EXIM: The Need for a Model (India)

22