BUSINESS/ SELF-ASSESSMENT

THE ART OF EXTRAORDINARY THINKING

Gordon J. Stevenson
October 2014
 EXTRAORDINARY THINKING

“ Management’s job is NOT to

promote satisfaction with the
way things are…
BUT…
to create dissatisfaction with the
way things are and could be “

- Baker -

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 Promoting Excellence-assessment

The Malcolm Baldrige National Quality Award is an annual

award that recognizes U.S. organizations in the business, health
care, education, and nonprofit sectors for performance
excellence. It is administered by the Baldrige National Quality
Program, which is based at and managed by the
National Institute of Standards and Technology, an agency of the
U.S. Department of Commerce.

The European Foundation for Quality Management (EFQM)

the Excellence model is a management model for excellence
which can be applied to any organization to evaluate
European Foundation
qualitatively its performance.
for Quality Management

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 Self/Business-assessment

SELF-ASSESSMENT IS:
a. To highlight how good we think we are

b. Expose company shortcomings

i.e. how bad we think we are!

c. Keep performance stable &

assist to minimize changes.

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 Self/Business-assessment

The Self-Assessment process allows the

entire Organization to discern clearly its
strengths and improvement opportunities.
The process culminates in a cross-functional
team/s establishing improvement plans,
actions and then systematically monitoring
for progress & effectiveness.

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 Why Self-assessment ?

We Need A Stimulus
To Drive Improvement
BECAUSE
The Art Of Survival In
The World Of Business
Is To Be Able To Adapt
To Change & Improve
CONTINUOUSLY !!

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What are benefits
• Identifies your organization’s strengths &
opportunities for improvement
• Provides a highly structured, fact based approach
to identifying and assessing your organization and
measuring progress periodically.
• Creates a common language and conceptual
framework for the way you manage and improve
your organization.
• Educates people in your or organization on the
Fundamental Concepts of Excellence and how they
relate to their responsibilities.
• Involves your people at all levels and in all units in
process improvement.
• Assesses, in a coherent manner, the organization
at the macro and micro level.
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Self/Business-Assessment
• Identifies and allows the sharing of your
“good practice” within the organization.
• Facilities comparisons with other organizations, of
a similar or diverse nature, using a set of criteria
that is widely accepted across Europe.
• Integrates the various improvement initiatives into
your normal operations.
• Improves the development of your business plan
and strategy.
• Provides opportunities to recognize both progress
and outstanding levels of achievement through
internal awards.
 The General Process

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 EXTRAORDINARY THINKING ?

Imagination is more

important than knowledge

Einstein

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 EXTRAORDINARY THINKING?

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 Extraordinary Thinking

“ The Key To Success Is To Risk Thinking Unconventional

Thoughts. Convention Is The Enemy Of Progress. As Long
As You’ve Got Slightly More Perception Than The Average
Wrapped Loaf, You Could Invent Something.
-Trevor Baylis, inventor

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 EXTRAORDINARY THINKING ?

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 EXTRAORDINARY THINKING ?

COUNCIL OF INDEPENDENT COLLEGES

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 (7 CRITICAL ATTITUDES)

 Inquisitive
Open Minded
Truthseeking
Systematic
Analytical
Judicious
Confident In Reasoning

-American Philosophical Association (APA)

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 (7 CRITICAL ATTITUDES)

Inquisitive: Curious with regard to a wide range of issues

Open Minded: Regard for divergent views/flexible to opinions

Truthseeking: Honesty in facing ones own biases

Systematic: Alertness to opportunities for critical thinking

Analytical: Querying evidence/prudence in suspending judgments

Judicious: Understanding of the opinions of others/fair mindedness

Confident In Reasoning: Trust in the process of reasoned inquiry

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 EXTRAORDINARY THINKING

While honesty should always

prevail over popularity , this isn’t
exactly the most effective
approach to instilling confidence
in your team or helping to create
an environment conducive to
being open & transparent with
one another .
Leadership competence is a
prerequisite to executing a
successful assessment process.
Choose the leader well !!

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 EXTRAORDINARY THINKING ?

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 Critical Thinking Cycle

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 EXTRAORDINARY THINKING ?

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 EXTRAORDINARY THINKING

We Are Not Well Prepared

To Deal With Criticism & Often
Perceive It As An Impending
Attack On Ourselves !
Learning To Separate Personal
Feelings From Professional
Development Is A Prerequisite
To Growth & Reaching Maturity.

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 EXTRAORDINARY THINKING

Leadership Ingredients To Success: To

be a truly effective leader the ability to
assess and judge oneself as accurately
as possible is essential by casting a
critical eye on one’s competence
thinking & behavior & adjusting where
necessary.

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 SELF-AWARENESS

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 360-degree- assessment.
Behavior Ratings Importance Ratings

Self All Others Self Manager

SHOWS DETERMINATION TO ACHIEVE EXCELLENT RESULTS.

5,1 2,3 High High

• OVERALL
5,3 2,5 High High
• Shows a drive for results
• Sets demanding and visionary goals 5,2 2,3 High High
• Takes active ownership/accountability
4,7 2,1 High High

FOCUSES ON THE MARKET

4,2 3,3 High Low

• OVERALL
4,0 2,0 High Low
• Uses business knowledge to add value
• Shows customer insight 4,7 2,7 High Low
• Thinks strategically
4,0 2,4 High Low

FINDS BETTER WAYS

4,8 2,9 High High

• OVERALL
4,7 2,5 High High
• Manages systems and processes effectively
• Manages profitability 5,0 2,2 High High
• Champions change
4,7 2,6 High Moderate

DEMANDS TOP PERFORMANCE

4,9 3,0 High High

• OVERALL
5,0 2,1 High High
• Leads by example
• Provides direction 4,5 2,8 High High
• Tackles performance Issues
5,2 3,1 High High

INSPIRES COMMINTMENT

4,5 2,5 High High

• OVERALL
3,7 2,4 High High
• Communicates and influences effectively
• Builds relationships and fosters teamwork 3,2 3,2 High High
• Motivates others
3,7 2,4 High High

DEVELOPS SELF ANF OTHERS

• OVERALL 3,7 2,6 High Moderate

• Coaches and develops others
3,8 3,5 High High
• Develops self
• Stimulates learning and manages knowledge 3,8 3,0 High Moderate

23 3,5 2,5 High Moderate

 360-degree-assessment.
Shows a Drive for Results
Self Manager Peers Reports All Others
• Shows drive and determination 4,2 3,4 2,5 3,2 3,6
• Persists with a course of action despite setbacks 5,0 2,1 3,3 3,3 3,4
• Demonstrates a high level of activity and output 4,5 3,8 3,0 3,5 3,3
• Will not give up until goals are accomplished 4,9 2,9 3,5 3,7 3,6
• Sees things through to completion 5,0 4,1 2,2 2,8 3,0
• Conveys a sense of urgency 4,8 3,3 3,5 3,5 3,5

Average 4,7 3,2 3,0 3,3 3,4

IMPLICATIONS OF HIGH SCORES

Benefits: Potentials Pitfalls:
• Infects others with energy and enthusiasm • Overly task/results driven
• Not easily discouraged • Pushes self too hard
• Keeps momentum going over time despite • Persists with a course of action even when
setbacks situation becomes hopeless
• Ensures that key objective are met • Becomes focused on work to exclusion of all else
• Delivers results

POTENTIAL CONSEQUENCES OF LOW SCORES

• No sense of urgency
• Seen as lazy or unfocused
• Gives up easily
• Things do not get done/Projects remain unfinished
• Targets not met

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 Extraordinary Thinking

Talking Together Is The

Gateway To Thinking !

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 Assessment Team Critical Factors

Team Diversity; Should be a good mix of

professional experience, skills & abilities.
Sufficiently level of maturity to appreciate
each others points of view.
Effective Decisions Makers; ability to
make collective decisions, avoid “brow
beating” unyielding individuals who must
have their ideas accepted. Time
management skills.

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 Assessment Team Critical Factors

Communicators; High value towards

exchanging views & inspiring others.
Respectful & engaging encouraging views.
Clear Roles; Team member roles must be
clear & to all others. Have a facilitator
coach & guide where needed.
General; Goal/Results oriented, resilient,
innovative, determined & passionate.

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 The Need For Critique (Aspects)

Demystify Potential In Yourself & Organization

Everyone like doing their own thing but habits will eventually form & become ingrained (old habits
die hard). Criticism lends a fresh new perspective to your work uncovering areas for improvement
difficult to distinguish by yourself.

Personal Self-driven Challenge

Feedback assists you to improve rather than become complacent, raise you or your function to
the next level of maturity.
Developing Communication Skills
Learning to deal with critics can potentially improve the way you handle communications, learning
to listen & evaluate.
Motivation Driver
Constructive criticism often painful can be the driver to change. Self-motivation is essential but
having a push forward can be advantage.
Lesson on Humility
A vital trait in ones nature. Criticism can hurt our ego’s but allows us to keep our feet firmly on the
ground, making

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 The Need For Critique !

When Leading & Conducting An

Assessment Don’t Be Surprised
( actually expect ) Some Level Of
Denial & Resistance Re The Gaps
Which Are Identified In Performance .
Also , Its Equally Important To Be
Highly Positive & Complimentary About
Progress Achieved Already This Helping
To Create The Correct Environment
& Appropriate Tone Throughout the
Assessment.

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 The Need For Critique!
Feedback Acceptance Model
Denial
(II) Institutionalized
(VII)
MOOD

Shock
(I)

Consolidation
(IV)
Disillusionment
(III)

Testing
(V)
Letting
Go
(IV)
Risk of
Abandoning Learn to
Resistance to Self- Value Unsystematic Systematic Routine use
Time Wasting Change Assessment Feedback Improvement Improvement Of Feedback

TIME
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 What Should We Assess ?

Remember we are in search of excellence & the

process of mapping requires we define first for good
measure the fundamental concepts :

The E.F.Q.M. Definition Is ;

“An outstanding practice in managing the
organization & achieving results all based on a set
of fundamental concepts”.

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 Fundamental Concepts

Results Orientation
Customer Focus
Society & Community
Responsibility

Leadership & Constancy

Partners
of Purpose
Development

Management by
Continuous Learning
Processes & Facts
Improvement & Innovation
People Development
& Involvement

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 METHODS OF APPROACH

A Questionnaire
Approach

A Matrix/Maturity grid
Approach

A Workshop
Approach

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 Maturity Grid

Supply Chain Management :

Processing
Compositethrough four distinct stages of maturity
Performance
Intermediary
Steps are 10
9
Transitional only Extended
8 Enterprise

6 7
5
Integrated
3 4 Supply Chain

2
Functional
1
Informal
Time

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 Maturity Grid
Supply-Chain-configuration
1 Informal
- Supply-chain configuration is neither designed nor managed, but has evolved without formal
planning processes or strategy, or linking of process together, and no clear supply chain concept.

2 Transitional
- Supply-chain actions by the annual budget cycle.

3 Transitional
- Supply-chain reconfiguration contributes to cost savings.

Functional
4 - The overall supply-chain(re-) configuration plans or actions are part of a costs-based
manufacturing or distribution strategy.
- Improvement actions optimise the functional performance of independent supply-chain entities.
- Main decoupling points are defined per supply-chain entity individually (e.g. a decoupling point per factory
and per NSO, separately).

Integrated Supply Chain

7 - The supply-chain is configured to optimise integral supply-chain costs and performance and meeting market needs.
- Some key suppliers and key customers are involved in the supply-chain configuration process, resulting in SLA’s.

8 Transitional
- Supply-chain configuration are also responsiveness and flexibility of key partners in the supply chain.

9 Transitional
- Supply-chain configuration is a key business process. Competitive supply-chain advantages
are recognized and effectuated in the supply-chain configuration.

10 The Extended Enterprise

- Supply-chain configuration is dynamic process continuously optimising costs, flexibility and responsiveness
throughout the total supply-chain.
- The supply-chain configuration process is agile, assuring swift channel changes for outperforming competitors.

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 Maturity Grid

Level 1 Informal, Keywords:

No formal plans, no forecast, little evidence of supply & demand.

Level 2 Functional, Keywords:

Cost driven, reactive, monthly processes, push, standard services.

Level 3 Integrated Supply-Chain, Keywords:

Flexibility, responsiveness, proactive, weekly/daily pull, differentiated
services, cross functional decision making.

Level 4 Extended Enterprise, Keywords:

Real time full visibility, JIT, joint optimization, customized services.

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 Maturity Grid
Competence Management

Competent Excellent Satisfied Benchmark

People Processes Customers Results

Supply-chain
Configuration,
Necessary Supply Chain
Planning & control
Process
organizational supply- & execution.
chain competencies
are heavily interlinked
with supply-chain
processes and enabling Eg. SAP, BAAN, 12
systems used. Organization Systems

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 Maturity Grid
Competence Management
1 Informal
- No formal supply-chain competence management process in place.
- No education plan in place.
- No methods in place for people-performance measurement.

2 Transitional
- Main supply-chain competencies are listed (recognized as important).

3 Transitional
- Main supply-chain competencies are listed and described: there is an agreed and formalized
understanding of main supply-chain competencies needed for the functional supply-chain organization.
- Education and training on ad hoc basis

8 Transitional
- Supply-chain competencies listed and described to come to an extended supply-chain.
- Awareness of supply-chain competencies of supply-chain partners.

9 Transitional
- Supply-chain competence development involves main supply-chain partners.

10 The
-
Extended Enterprise
Available extended supply-chain competencies are world-class. Continuous competence improvement
contributes to industry leadership.
- Competence development is flexible and aligned with business strategy and sets targets for
supply-chain partners.

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 Providing Valid Evidence

Anecdotal Statements
Anecdote is a Greek word meaning quite literally “ not given out “. During an
assessment when searching for or offering evidence with respect to
performance related matters “ anecdotal “ responses should be avoided.

Anecdotal evidence is less statistically reliable than other sorts of evidence & in
a business assessment a scientific approach to questioning is more effective .

The relative strength of an explanation should be based on its ability to be

tested , proven to be due to the stated cause & verified under neutral conditions
where assessors can agree the task has been performed competently & are
able to themselves witness .

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 Providing Valued Evidence

Example:
Assessor Question; How often does your
management team meet, review & assess business
performance & how effective is this process ?

Management Response; Actually, we meet quite often

& ever since we started having review meetings our
performance has significantly improved!

Articulate How Should The Management Response Have Been?

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 Providing Valued Evidence

Anecdotal evidence isn’t always disregarded & the

use of anecdotes as examples of a certain effect, to
give the recipient a better picture of what is actually
being concluded, is perfectly valid & proper.
The problem stems from when the anecdotes alone
are offered as evidence & not as supporting
examples of something demonstrated with other
valid & tangible forms of evidence.

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 Heart Of The Assessment !

• What Are The Results Your Organization Is Aiming

For As Part Of The Strategic Process ?

• Begin Planning & Developing Integrated

Approaches To Enable The Required Results To Be
Achieved !

• Design/Adopt An Effective Deployment System To

Ensure The Entire Organizations Contribution Is
Fully Engaged .

• Systematically Review & Assess The Approach’s

Utilized & As A Baseline Are Activities Being
Monitored & Analyzed Exposing Learning
Opportunities.

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 EFQM

The Journey to Best in Class

Accelerated Improvement

Plateau

GOLD
SILVER
Actual BRONZE
Theory

Ignoring Exploring Installing Embedding Driving Integrating World

Class

0-200 201-375 376-525 526-675 676-800 801-900 900-1000

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 Criterion Examples.

Criterion A: PROCESSES
How the organization designs, manages and improves its
processes in order to support its policy and strategy and
fully satisfy, and generate increasing value for, its customer
and other stakeholders.

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 Criterion Examples

Criterion B: PEOPLE
How the organization manages, develops and releases
the knowledge and full potential of its people at an
individual, team-based and organization-wide level, and
plans these activities in order to support its policy and
strategy and the effective operation of its processes.

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 Criterion Examples.

Criterion C: POLICY & STRATEGY

How the organization implements its mission and vision via
a clear stakeholder focused strategy, supported by relevant
policies, plans, objectives, targets and processes.

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 An Assessment Scoring Model

Enablers Results

People People
Results

Policy & Process Customer

Leadership Results Results
Strategy

Partnership Society
& Resources Results

Innovation and Learning

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 Summarizing Assessment Activity
Conduct Self Assessment
Collate the identified Strengths, Areas for Improvement
Determine the criteria for prioritization and prioritize
Consider strategies for ownership of customers
- change management issues
- style of presenting outcomes
Agree the actions necessary and the process and
timings of the delivery of the actions
Regularly review process & assure that priorities are
appropriate
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Linkages between Self-Assessment,
The business planning process and action plan
Ensure the full meaning of the items is not lost in collation.
Ensure collation is done rapidly and in full sentences rather than bullet points.
Consider grouping items.
Vision and mission of the organization.
Current priorities and strategic plans.
Key processes of the organization.
Critical success factors.
Key themes to emerge from Self-assessment.
SWOT Analysis. Overall scoring profile.
Priorities on High/ Low Impact and Ease of Change.
Embrace the feedback.
Histograms, spider diagrams.
Assignment of owners.
Resources allocated.
Re-align plans.
Decide required results and measurements.
Process for ongoing review agreed.
Due dates for actions agreed
Co-ordination and communication agreed.
Ensure action planning is dynamic, flexible and responsive to external
changes to the organization.
 Sustaining Business Excellence

If desired, on attaining levels of

performance akin to those already
Recognized by E.F.Q.M. or Malcolm
Baldridge you can begin a process
of going for International award
recognition.
While certainly this has benefits the
most important aspect of assessing
the organization travels much deeper
in the form of achieving & sustaining
excellence & realizing true prosperity
for all business stakeholders.

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