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Encouraging Enterprise and Enhancing Business Performance
James DiggesNational ManagerSAI Global
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Scope
– Latest trends in Global Excellence Models– Sustainable success – Latest practices in Business High Performance
Business Excellence Solutions– To assist organisations to develop their capability to
continuously improve performance in a sustainable manner
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SAI Global Limited
SOURCES OF INFORMATION APPLIED INFORMATION SERVICES
PUBLICATIONS COMPLIANCE TRAINING ASSURANCE
Develop and license Information
Add valuepublish and distribute
Deliverawareness communication & monitoring solutions
Enhancethrough training and consulting services
Assurethrough independent assessment
4
What is Excellence
THEORY
PlanningPlanningReflection
Experiences
5
6
Popularity of Business Excellence?
– 76 countries have a business excellence awards– Interest worldwide is high – Increasing numbers in the Public Sector and not for profit,
together with corporate organisations– Requirement to progress from a conformance mindset to one of
performance
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Barriers to the use of business excellence
Source: Booz Hamilton, Dec 2003. Assessment of Leadership Attitudes About the Baldrige National Quality Programme, NIST.
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Business excellence leads to sustainable success
– Baldrige Index (US) – www.quality.nist.gov– Hendrick and Singhal’s (US)– Hausner (Australia)– Australian Business Excellence Index– EFQM study (Europe)– As demonstrated by 1,000’s of business worldwide
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Business Excellence Index
– The Business Excellence Index compares the performance, over 16 years, of the Australian Stock Exchange-listed Australian Business Excellence Awards winners against the Australian Stock Exchange All Ordinaries Index.
– SAI Global commissioned SIRCA to conduct the study which includes results to 30 June 2006. The Index was first commissioned in 2003.
Business Excellence Award winning organisations continue to outperform the Australian All Ords by over 3 to 1
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All applicantsprivate - average
Award winnersprivate - highest
527
734
Large – privateaverage
Small – privateaverage
530
515
Publicaverage
Publichighest
541
669
Competitive gap is widening
Large organisations still do better
Public entering demonstrating commitment
Scores from EQA APPLICANTS, 2001 to 2005Gap is widening between leaders and followers in Europe
Source: EFQM Analysis
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Benefits of using the ABEF by length of use
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Improvement over time in process
0
100
200
300
400
500
600
700
800
900
0 1 2 3 4 5 6 7
Sco
re
MinMax
Years in process
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What does this mean?
– The process of improvement varies, however:– It can’t happen without CEO leadership, supported by a
process of self and external evaluation– It is hard to get to 650!– Biggest improvement occurs between 2-3 years– Improvement can be continuous over time– The average improvement per year was 52 points with a
range of 2 to 117
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Benefits: Business Excellence Models
– Improved Results– Systems Thinking– Deployment of Vision– Holistic Approach– Cultural Change– Capability Development– Continuous Improvement– Adaptability
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Towards Excellence Criteria
– Create a value proposition
– Generate engagement
– Provide Improvement Toolsets
– Measure Improvement
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BusinessExcellence
Awards
ExcellenceAssessment
Proving Progress beyond ISO Certification
External Business Excellence Assessment Score & Concrete feedback
Driving Excellence5 – Element Model towards Business Excellence
Six Sigma application
ISO 9004Quality Management Guidelines - Business Management Systems View
ISO 9001 : 2000Quality Management System- Requirements
Business Improvement
Recognition of Excellence
External Assessment
Business Excellence
Quality Assurance
Traditional model of progression
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Achieving Sustainable Excellence
Understand theBusiness
Excellence Frameworkand Principles
Clarify Strengthsand Opportunitiesfor Improvement
Lead andManage the
Change
Understandthe
System
ApplyImprovementTechniques
Review Improvements
Common Understanding of the System and Priorities
Agreedi.e. System Outcomes
Allocation of Resources for Working ON the
System
Approval to Implement and Accountability
Assignment
OFI’s from Other
Sources
Systems Thinking
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Management Criteria
No. General Criteria Brief Explanation
1. Strategic Initiatives
Environmental analysis, strategy formulation, performance planning and evaluation
2. Leadership Perspectives
Setting direction, motivating people, performance management
3. Quality Imperatives
Work processes, quality systems and customer satisfaction
4. Corporate Culture
Beliefs systems, positive values, and ethics
5. Corporate Social Responsibility
Commitment to contribute to nation and society
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Best Practice of Award Winners
– Honeywell– Vero Insurance– Boeing Australia– Tasmanian Alkaloids (division of Johnson & Johnson)– Queensland Emergency Services– Doric Group (Construction)– LeasePlan Australia (Fleet Rental)– Australian Defence Force– Schefenacker Vision Systems Australia– ING Funds Management – Suncorp Metway– Southern Pathology (division of Sonic Healthcare)– BHP Research– Ericsson Australia
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Strategic Initiatives
– Break down the siloed approach to market analysis – Mutually agreed plans– Effective management of tangible and intangible resources– Understanding and influencing the current and future operating
environment– Reporting for decision makers at all levels– Improving the focus on Sustainability
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Understanding Capability
– What capability is required to achieve the stated objectives– What is the current capability– What are the possible future capabilities required to meet
planned objectives– How is that capability going to be generated– How will adjustments to the strategy translate into adjustments
in the capability development plan
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Leadership Perspectives
– The transition from technical to functional management– Leadership
– Competitive Decision Making– Integrated Risk Management– Accountability throughout the organisation– Effective balancing of opportunities, risk and resourcing
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Understand Individual PerformanceDashboard showing
the integrated position of
Objectives vs Risk exposures
Dashboard showing the integrated
position of Objectives vs Risk
exposures
Know if my personalised
objectives are on Track
Know if my personalised
objectives are on Track
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Key Performance Indicators – Integrated Risk & Performance
Objective: To have effective & efficient IT operations
KPI: IT Uptime
KPI Target: Obj Achievement: 99.9%
Risk Trigger: 98%
Risks of non-achievement:1) Poor IT Infrastructure2) Poor Backup procedures3) Lack of IT secondary
controls
Risk Trigger, review linked risk & activate action plans (corrective
mitigation plans)
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Quality Imperatives
– Integrated Continuous Improvement / Innovation System– Identification– Qualification– Action plans– Adoption of the solution
– Quality– Real time assessment– Teams trained to design and implement solutions
– Information to improve decision-making– Maximising the application of information and knowledge– Reducing the re-invention of the wheel– Integrating the customer into the organisational system– Reducing variation in the customer experience– Customer perception of value– Integrated understanding of stakeholder requirements
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Knowledge Cycle Objectives
AccessReviewCreateCollate
Apply
Store
Value
Cost
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Bank of America
– To deliver consistent, high-quality service, Bank of America has undertaken a pioneering effort to apply Six Sigma process improvement discipline to virtually every facet of the company’s operations.
– The resulting process improvements have contributed to increases in revenue growth, operating efficiency and—perhaps most importantly—customer delight, which has increased 25%. The company considers customers “delighted” when they rate us 9 or 10 on a 10-point scale.
– Research shows that delighted customers are far more likely to stay with the company and recommend us to others.
– Equally important, delighting customers is simply the right way to do business.
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To Improve Quality
– Reduced process variation– Increased people capability– Strategic leadership– Effective measurement systems– Focus on customer outcomes
In short we require a holistic framework that guides us in improving quality through improvement of all aspects of our business
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Corporate Culture
– Coaching and mentoring– Succession planning– Time and well being– Achieving employer of choice status in times of full employment
31
Corporate Social Responsibility
– Balanced approach to achieving individual and organisational outcomes
– Matching donations– Team building exercises to build community facilities– Time and resources for charity work
– Sustainability is determined by an organisation's ability to create and deliver value for all stakeholders
– Community– Nation– Environment– Future generations
32
The Future
– Integrated approach– Decision Making– Stakeholder Management– Actioning Opportunities for Improvement– Performance Measurement– Continuous Improvement
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More information
James Digges National ManagerAustraliaSAI Global Limited
Call+61 2 8206 6842