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BUSINESS MARATHON ASCENSION
TOWARDS
EUROPEAN EXCELLENCE
EXPERIENCE, RESULTS
AND PROSPECTS
Petro KALYTA,
President of Ukrainian Association for Quality, President of Club of Quality Leaders of the Central and Eastern European Countries,
Honorary President of International Guild of Quality Professionals, Member of the EOQ General Assembly
Q
www.uaq.org.ua
France, Germany, Austria, Finland… 40-50
Norway 84
Latvia, Poland, Czech Republic… 10-20
Monaco
Switzerland, Luxemburg… 70-80
Ukr
Russia
Belarus
GROSS NATIONAL INCOME
(per capita)
Thousand $
2
10
6
3
183
2 Moldova
Potential possibility to increase competitiveness and improve quality of life in Europe
Professor V. Lapidus (Russia)
RUSSIAN COMPANIES
IN COMPARISON WITH WORLD LEADERS:
PRODUCTIVITY-
UP TO 10 TIMES LOWER,
DEFECTIVENESS –
UP TO 1000 TIMES HIGHER !
(analogously in other CIS’s countries)
3
4
SCALE AND LEVELS
OF ORGANIZATIONAL EXCELLENCE
1000
0
400
500
600
700
800
900
300
200
100
Points
Companies
Developed European Countries
СIS countries
300-450
150-250
550-650
700-800
Total
LEADERS
LEADERS
Total
CONSEQUENCES OF “IMPERFECTION”
5
HIGH COST PRICE
AND LOW PRODUCTIVITY
UNPAID TAXES
AND DEFICIT OF BUDGET
UNPRODUCTIVE OUTLAY
OF RESOURCES
LOW COMPETITIVENESS
CONTRACTUAL DEFAULT
IMPOVERISHMENT OF CITIZENS
WHO LOST THEIR WORKPLACES
OR EARN PALTRY WAGES
ENVIRONMENGTAL POLLUTION,
SOCIAL TENSION etc.
DELIVERY OF HAZARDOUS PRODUCTS
AND VIOLATION OF CUSTOMER’S RIGHTS
IMPERFEC
TION
Maturity
levels
“Generations” of organizational relations
4th
Evident social
orientation
And continuous
system
improvement
(above standards)
4th
3rd
Local target
management
systems.
Standards
3rd 2nd Quality of
products.
Standards
2nd 1st Product safety.
Technical
regulation
1st
- Illegal delivery
of products
6
GLOBAL TRENDS IN MANAGEMENT
7
Developed countries Post-soviet countries
History:
Saturated market.
Competition
History:
Deficit market.
Lack of competition
QUALITY QUANTITY
FUNDAMENTAL DIFFERENCES BETWEEN
DEVELOPED AND POST-SOVIET
COUNTRIES
MANAGEMENT
SYSTEM
Ukraine,
counting on a one inhabitant,
has less quality management systems on ISO 9000 in comparison with:
- China - in three and a half times,
- Italy – almost in 40 times!
At the same time, at the experts’ opinion,
only a small part of such systems in Ukraine are really operating.
8
THE EUROPEAN QUALITY CHARTER:
IMPLEMENTATION OF ISO 9000
is the FIRST STEP towards
Total Quality Management (TQM )
9
the state of organization that defines its ability to set and achieve goals to satisfy interested parties
• Level of business excellence is the measurand characterizing the degree of long-term satisfaction of interested parties in the dynamics (is determined according to the methodology on the 1000-point scale, where 1000 points corresponds to the ideal)
10
•Business excellence is
the process of transition from the achieved to higher level of excellence
• Motivation for improvement is
to create a comfortable environment, differentiated by level of perfection (the higher the level of perfection, the more comfortable environment), where:
• Comfort environment is conditions, which provide conveniences for business as well as the psychological satisfaction of socially responsible organizations.
11
• Improvement is
12
CONCEPTS OF EXCELLENCE
(EFQM version 2009)
• Achieving Balanced Results
• Adding Value for Customers
• Leading with Vision, Inspiration and Integrity
• Managing by Processes
• Succeeding through People
• Nurturing Creativity and Innovation
• Building Partnership
• Taking Responsibility for a Sustainable Future
The EFQM Excellence Model
13
1.IDENTIFICA-TION OF STRENGTHS AND AREAS FOR IMPROVEMENT
3.DEVELOPMENT OF INNOVATIVE PROGRAM OF IMPROVEMENT
4.FULFILLMENT OF A PROGRAM
2.ACQUIRE NEW KNOWLEDGE
MODEL-BASED MECHANISM OF IMPROVEMENT
14
RADAR
15
100
200
300
400
500
600
700
800
BEST COMPANIES OF
EUROPE
BEST COMPANIES
OF POST-SOVIET
COUNTRIES
Level in accordance
with ISO 9001
550-650
700-800…
250-300
SCALE AND LEVELS
OF BUSINESS
EXCELLENCE
900
1000
Score
Ideal
16
ASSESSMENT
USING THE EFQM EXCELLENCE MODEL
It is a unique integrated diagnostics, allowing to know
the real level of excellence of the organization, its strengths
and areas for improvement
Helps for decision making:
- оn development of improvement program;
- оn the acquisition of knowledge about the best practice;
- оn participation in the National Quality Award and/or Quality Tournament of the Central and Eastern Europe etc.
As a result of assessment company can receive recognition certificate
of its level of excellence
EXTENSIVE AND INTENSIVE
DEVELOPMENT OF THE COMPANY
17
Level of excellence,
scores
Time
100
1000
500
800
600
400
200
0
300
700
900
CONTINUOUS
PURPOSEFUL
IMPROVEMENT
UNSYSTEMATIC EPISODICAL
DEVELOPMENT
(BY THE MAP, WITH COMPASS)
(WITHOUT THE MAP)
Recognised for Commitment to Excellence in
Europe
On the way towards
Excellence in the country
Recognised for Excellence in the country
Recognised for Excellence in
Europe 4*
Finalist of the National Quality
Award
Winner of the
National Quality Award
Laureate of the CEEC Quality
Award
Finalist of the EFQM
Excellence Award
Winner of the
EFQM Excellence
Award
Prize Winner of the EFM Excellence
Award
Winner of the CEEC Quality
Award
650
550
500
400
300
200
Beginning towards
Excellence in the country
Laureate of the National Quality
Award
Finalist of the CEEC Quality
Award
100
450
Business Marathon ASCENCION TOWARDS
EUROPEAN EXCELLENCE
Recognised for Excellence in
Europe 3*
Recognised for Excellence in
Europe 5*
300
400
450
500
550
750
18
0
NATIONAL ACTION
ACHIEVE EUROPEAN RECOGNITION
ACTIONS THAT PROMOTES DEVELOPMENT
OF MOVEMENT IN UKRAINE
• Informational promotion of concepts and EFQM Excellence Model
• Training of enterprises’ specialists and experts on excellent organizations
• Actions on quality management, CSR and Sustainable Development
•Ukrainian Charter “For Business Excellence and Quality”
• Ukrainian National Quality Award
• Club of Quality Leaders of Ukraine
• Promotion of companies – winners of National Quality Award
* Support of Ukrainian NGOs 19
• Informational promotion of the EFQM concepts, model and levels of excellence, Stairs of Excellence of UAQ including in the framework of WAQ project;
• Actions on quality, management, CSR and sustainable development including International project “Constellation of Quality”;
• International Quality Tournament of the CEEC;
• Club of Quality Leaders of the CEEC;
• Promotion of companies – winners of the CEEC Quality Award including Album “Central and Eastern Europe. Leaders of Quality”;
* Support of EOQ and EFQM.
ACTIONS THAT PROMOTES DEVELOPMENT
OF MOVEMENT IN THE CEEC
20
MAIN RESULTS ACHIEVED IN UKRAINE
• More than 40 companies – winners of Ukrainian National Quality Award achieved European recognition:
• 41 companies became holders of EFQM certificates “Recognised for Excellence in Europe”;
• 22 companies became winners of International Quality Tournament of the CEEC,
• 8 of them are prize winners of the Tournament
• 2 companies became finalists of the EFQM Excellence Award (only in the CIS up to 2008)
21
MAIN RESULTS ACHIEVED IN THE CEEC REGION
• 53 companies from Belarus, Hungary, Kazakhstan, Lithuania, Russia, Romania, Ukraine, Azerbaijan and Tajikistan took part in the Quality Tournament of the CEEC;
• As a result of 8 Tournaments about 40 companies from 9 сountries received EFQM certificate “Recognised for Excellence in Europe” (including more than 20 companies with 5 stars);
• 48 companies became winners of the Tournament;
• 22 companies became Winners of the CEEC Quality Award;
• 8 companies – participants of Business Marathon became finalists of the EFQM Excellence Award and two of them received status of Prize Winner of this Award.
22
23
BEST PRACTICE OF LEADING COMPANIES
FROM THE CIS’s COUNTRIES
* Stavropol State Agrarian University (Russia), PRIZE
WINNER of the EFQM Excellence Award
* Medicina (Russia), PRIZE WINNER of the EFQM
Excellence Award
* Vodokanal St.Petersburg (Russia), Finalist of the
EFQM Excellence Award
* LUKOIL-Permnefteorgsintez (Russia), Finalist of the
EFQM Excellence Award
* Brovary RBD 50 (Ukraine), Finalist of the EFQM
Excellence Award
* Sandora (Ukraine), Finalist of the EFQM Excellence
Award
EXTENSIVE AND INTENSIVE
DEVELOPMENT OF ECONOMY
24
Number of enterprises
“Widthway” and “upwards”
development (intensive)
Development mainly “in width”
(extensive)
100
1000
500
800
600
400
200
0
300
700
900
”The more perfect the company,
the more comfortable for it to
exist in the state”
”Better conditions to all”
Level of excellence,
scores
25
MECHANISMS OF ECONOMIC
DEVELOPMENT
IMPROVEMENT OF CONDITIONS
TO ALL ORGANIZATIONS
(BASIS)
ADDITIONAL
IMPROVEMENT ON CRITERION
”LEVEL OF BUSINESS EXCELLENCE”
(SUPERSTRUCTURE)
NATIONAL
STRATEGIC TASK
CARDINAL DEVELOPMENT OF
NATIONAL MOVEMENT
FOR BUSINESS EXCELLENCE
AND QUALITY
All “forest” of organizations of the country should
go to the “qualitative” growth and not just
separate “trees”
26
WHAT IS REQUIRED FROM THE GOVERNMENT?
SUPPORT OF THE MOVEMENT AND PROMOTION OF INVOLVEMENT
“THE WILL”:
MECHANIZMS OF MOTIVATION
“TO KNOW”:
SYSTEM OF GENERALIZATION AND DISTRIBUTION OF BEST PRACTICE
“TO BE ABLE”:
INFRASTRUCTURE OF PROFESSIONAL SUPPORT
27
• SYSTEM OF AWARDS
(evidence of Respect)
• ”EASY” STATE CONTROL
(evidence of Trust)
• STATE PROTECTION (including from raiders)
• PREFERENCES to organizations which improve their performance
MECHANISMS OF MOTIVATION
28
Recognised for Commitment to Excellence in
Europe
On the Way Towards
Excellence in the Country
Recognised for Excellence in the Country
Recognised for Excellence
in Europe 4*
700
650
550
500
400
300
200
Beginning Towards
Excellence in the Country
100
450
PK
Recognized
for Excellence
in Europe 5*
400
450
500
550
Recognised
for Excellence
in Europe 3*
Finalist of the National Quality Award
Laureate of the National Quality Award
Winner of the National Quality Award
Finalist of the CEEC
Quality Award
Laureate of the CEEC
Quality Award
Winner of the CEEC
Quality Award
Finalist of the EFQM Excellence
Award
Prize Winner of the EFQM Excellence
Award
Winner of the EFQM Excellence
Award
AWARDS -
INCREASING
CONTROL –
REDUCTION
PROTECTION -
STRENGTHENING
PREFERENCES -
INCREASING
A C P P
300
29
MOTIVATION TO
IMPROVEMENT
(the more perfect the company, the more comfortable for it to exist in the state)
30
MANAGEMENT SYSTEM AS THE BASE OF CSR AND
SUSTAINABLE DEVELOPMENT SUSTAINABLE
DEVELOPMENT (SOCIETY,
ECOLOGY,
ECONOMY)
(DREAM)
CORPORATE
SOCIAL
RESPONSIBILITY (SOCIETY,
ECOLOGY,
ECONOMY)
BUSINESS
EXCELLENCE (SOCIETY,
ECOLOGY,
ECONOMY)
(BASIC TOOL)
Aim
Realization
Charitable Foundations
(special tool)
31
LEVEL of management system improvement
LEVEL
of corporate social
responsibility
LEVEL
of financial and
other
effectiveness
ORGANIZATION’S EXCELLENCE
GLOBAL PROJECT
YOUTH CREATIVE MOVEMENT
“QUALITY RELAY RACE”
The project was developed in 2011 as a part of the WAQ project “Emotional tools for quality promotion”.
Main organizers of the project:
- WAQ (in the person of the leader of project “Emotional tools for quality promotion”);
- International Guild for Quality Professionals;
- Club of Quality Leaders of the CEEC;
- Ukrainian Association for Quality and Ukrainian Club of Quality Leaders.
The purpose of the project is to unite separate children and youth organizations and to direct them to the tasks of improvement quality of life.
32
GLOBAL PROJECT
YOUTH CREATIVE MOVEMENT
“QUALITY RELAY RACE”
Main tasks of the global project:
• to promote youth in their participation in processes of sustainable development;
• to change their philosophy in the direction of strengthening the creative component and reduce the striving for consumption;
• to intensify the social orientation of youth and youth organizations;
• to create conditions for development of youth leadership abilities and willingness for team-work;
• to create motivation system for continuous improvement and willingness to take responsibility;
• to support the transformation of confrontation and conflict power into the energy of creativity and partnership.
33
WINNING TOGETHER!
UKRAINIAN ASSOCIATION FOR QUALITY
Address: 02002, Ukraine, Kiev, Mykilsko-Slobidska Str.,6-D
Тel.: +38 044 541 0532; +38 050 358 8068 (mob.)
Е-mail: quality@quality.kiev.ua ; kalyta@uaq.org.ua
www. uaq.org.ua
37
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