In Search of Excellence The New Zealand Business Excellence Foundation
Dec 08, 2014
In Search of Excellence
The New Zealand Business Excellence Foundation
1. OVERVIEW
“To enable New Zealand organisations to achieve and sustain proven World Class performance and results”
Mission
We provide
A range of services, advice and assistance to support NZ businesses in their Business Improvement activities, this includes - Frameworks for Business Improvement Business Assessment services Events and networking opportunities Internationally calibrated award programmes Benchmarking Training – in house and public courses Consulting services Mentoring and advisory services
New Zealand Refining CompanyLeadership New ZealandMuscular Dystrophy Association of NZNew Zealand Institute of ManagementNew Zealand Organisation for QualityAUTAuckland DHBBay of Plenty DHBCounties Manukau DHBMercy HospiceOrder of St JohnSpectrum CareFulton HoganLumleys Insurance NZ LtdHutt City CouncilLumley InsuranceEnvironment CanterburyBrookfields LawyersBartercard NZMinistry of Social DevelopmentMin. Civil Defence & Emergency MgmtDepartment of CorrectionsWaipa District CouncilMinistry of Primary IndustriesHousing New Zealand Corporation
ACCInland RevenueFuji XeroxNZ PoliceNZ Fire ServiceNZ PostNZ Trade & EnterpriseRoyal New Zealand NavyNew Zealand Aluminum SmelterAir New ZealandHousing NZ CorporationDepartment of LabourDepartment of Internal AffairsFisher & Paykel AppliancesNZ Freightways Ltd Dulux NZMeridian EnergySaint Clair Wine EstateVERO Insurance NZAuckland CouncilWintecCambridge ResthavenSport NZDept of Internal AffairsNZ Defence Force
NZBEF Membership encompasses a wide variety of organisations
The evolution of business improvement models
1. OVERVIEW
Conducting regular assessments to identify
improvement opportunities
Aligning their workforce and business processes to meet
customer requirements
Focusing on improving performance & capability across
the whole organisation
Benchmarking to prevent “reinventing the wheel”
Adopting a “continuous incremental improvement”
approach
1. OVERVIEW
What are “Best Practice” organisations doing?
Source – NZ Ministry of Economic Development
Business Improvement frameworks
1. OVERVIEW
The Baldrige Criteria for Performance Excellence (CPE) reflects the common characteristics of World Class organisations
1. OVERVIEW
Visionary leadership Customer driven excellence Organisational and personal learning Valuing employees and partners Agility Focus on the future Managing for innovation Management by fact Social responsibility Focus on results and creating value Systems perspective
The Baldrige Framework is very detailed - however there are abridged versions available for those starting the journey
2. HOW IT WORKS
An integrated Strategic
Management Framework
The International “Best Practice” Framework is a key reference framework because it is holistic, non-prescriptive and addresses the relationships between key business functions
Key relationships between criteria categories
What are your key business objectives?
How will you achieve them?
How will you track your progress?
How are you actually doing?
2. HOW IT WORKS
9
BALDRIGE ASSESSMENT FACTORS & POINTSBALDRIGE ASSESSMENT FACTORS & POINTS
How YouPerform
How you run your Organization
55%55%ProcessProcess
45%45%ResultsResults
1. Leadership2. Strategic
Planning3. Customer Focus4. Measurement
and Analysis5. Workforce
Focus6. Operations
Focus
•Process•Customer•Workforce•Leadership / Governance
•Financial/Market
Alignment between Enablers (1-6) & Outcomes (7)
2. HOW IT WORKS
Self Assessment is a key component of a Business Improvement approach
2. HOW IT WORKS
Training is
considered
effective
Performance is
monitored
effectively
Highly visible
leadership
team
Staff feel
engaged
There is a
focus on risk
management
We understand
customer needs
HIGH
MEDIUM
LOW
WHERE IS THE GREATEST NEED FOR IMPROVEMENT?
GAP
WHERE ARE WE NOW?
WHERE DO WE WANT TO BE IN THE FUTURE?
2. HOW IT WORKS
Identifying and Prioritising the Opportunities
Tracking progress – multiple applications / assessments
0
100
200
300
400
500
600
700
800
YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
CPE
Sco
re (
rang
e of
ass
essm
ent)
Year of the BE Journey
Rate of Improvement
2. HOW IT WORKS
Alignment of awards in New Zealand
Time
REGIONAL LEVEL AWARDSeg Westpac Sponsored ATEED Awards
NZ International Business AwardsNZ Excellence in Business Support AwardsNZ Franchise AwardsNZ Health Innovation AwardsNZ Insurance AwardsNZ Tourism Awards
NZ BUSINESS EXCELLENCE AWARDGOLD
SILVER
BRONZE
WORLD CLASS
2. HOW IT WORKS
NZ BUSINESS ACHIEVEMENT AWARDS
Why do it? NZBEF survey dataKey drivers influencing the decision to adopt the CPE
0 20 40 60 80 100
Guide continuous improvement
Internationally proven to work
Desire to be ‘world class’
External measure of performance
Needed a business framework to co-ordinate a range of initiatives
Access to established Business Excellence networks
Benchmark within & across industries
External recognition & credibility
% respondents (great deal or moderate amount)
2. HOW IT WORKS
Perceived influence over time – NZBEF survey results
0 40 60 80 100 Clarity of direction
Improved Business results Greater Expertise
Voluntary involvement Organisation wide capacity
Engagement Stakeholder & customer relationships
% respondents (great deal or moderate amount)
2. HOW IT WORKS
What are the benefits
Improved Financial Results
Increased Market Share
Improved Customer Satisfaction
Increased Employee Satisfaction
Organisational awareness and alignment
Consistency of approach
3. REAPING THE REWARDS
Lean Six Sigma Value Delivery (NZ$million)
REAPING THE REWARDS
Figure 4.1-3 Tools used for the assessment & analysis of Organisational Performance
3. REAPING THE REWARDS
3. REAPING THE REWARDS
VERO - Business Process Re-engineering Process
VERO – Integrated Project Management Process
3. REAPING THE REWARDS
Background of industrial conflict during the 1990’s - internally focused on proposed changes to work arrangements
- workforce disconnected from management, disillusioned and demoralised - organisational reputation damage - lack of investment in organisational improvement
Business Excellence – a key platform for change - total organisational model
- enables systematic identification of opportunities for improvement - benchmarking and evaluating progress
3. REAPING THE REWARDS
REAPING THE REWARDS
IN SUMMARY
The fundamentals of running a successful organisation in the public, private or not for profit sector are essentially the same.
There is no better alternative than a structured, consistent, organisation-wide approach to business improvement.
Business improvement is not an “add on”, rather, it’s an essential part of running a successful organisation.
1.Shared Values: Core beliefs and attitudes that drive employee behaviours.2.Strategy: Long-term company plan. What is the long-term strategic direction of the company?3.Structure: Company hierarchy. The ways business units and departments are linked.4.System: Formal or informal procedures and processes to get things done in organizations.5.Staff: Employee is always known to be the key asset of your company. How motivated, trained and engaged are your employees?6.Style: Company management and key personnel’s management style. How problems get solved by organization leaders.7.Skills: Core competencies and capability of the company.
McKinsey 7-S Framework is made up of seven interdependent factors that determine how corporations are operating:
Operating coreThose who perform the basic work related directly to the production of products and servicesStrategic apexCharged with ensuring that the organisation serve its mission in an effective way, and also that it serve the needs of those people who control or otherwise have power over the organisationMiddle-line managersForm a chain joining the strategic apex to the operating core by the use of delegated formal authorityTechnostructureThe analysts who serve the organisation by affecting the work of others. They may design it, plan it, change it, or train the people who do it, but they do not do it themselvesSupport staffComposed of specialised units that exist to provide support to the organisation outside the operating work flow
According to Mintzberg organisations are formed of five main parts:
1. Mutual adjustment, which achieves coordination by the simple process of informal communication (as between two operating employees)
2. Direct supervision, in which coordination is achieved by having one person issue orders or instructions to several others whose work interrelates (as when a boss tells others what is to be done, one step at a time)
3. Standardization of work processes, which achieves coordination by specifying the work processes of people carrying out interrelated tasks (those standards usually being developed in the technostructure to be carried out in the operating core, as in the case of the work instructions that come out of time-and-motion studies)
4. Standardization of outputs, which achieves coordination by specifying the results of different work (again usually developed in the technostructure, as in a financial plan that specifies subunit performance targets or specifications that outline the dimensions of a product to be produced)
5. Standardization of skills (as well as knowledge), in which different work is coordinated by virtue of the related training the workers have received (as in medical specialists - say a surgeon and an anesthetist in an operating room –responding almost automatically to each other’s standardized procedures)
6. Standardization of norms, in which it is the norms infusing the work that are controlled, usually for the entire organization, so that everyone functions according to the same set of beliefs (as in a religious order)
The organizational configurations framework of Mintzberg is a model that describes six valid organizational configurations