Guidelines for Implementing Guidelines for Implementing Innovation Excellence Framework Innovation Excellence Framework

in Universitiesin Universities

Guidelines for Implementing Guidelines for Implementing Innovation Excellence Framework Innovation Excellence Framework

in Universitiesin Universities

ByDr. Mohd Rashid bin Ab HamidDr. Mohd Rashid bin Ab Hamid

Universiti Malaysia Pahang (UMP)Universiti Malaysia Pahang (UMP)

Achieving Innovation Excellence Framewok through the Performance Measurement System

Historically, performance measurement has meant measuring tangible things …

(such as return on investment (ROI), cash flow, increase in revenue and profit)

In recent years, attention and focus have shifted toward measuring intangibles

(such as quality, customer satisfaction, and safety) In light of this transition, researchers began investigating

ways of incorporating both financial and non financial performance in an effort to achieve innovation well-being

The Value-Based Total The Value-Based Total Performance Excellence Model Performance Excellence Model

(VBTPEM)(VBTPEM)

• VBTPEM provides a holistic and comprehensive framework to assess the performance of organisations that incorporates universal (corporate) – core values in the performance measures

copyright ADMACS/IKIM

• The guidelines are based on the Value-based Total Performance Excellence framework that incorporates a well-defined set of organizational core values in each of the performance criteria.

OUTLINES

1. Why we need (core) values now?

2. Innovation Excellence Model – The Framework (IEF)

i. The Conceptual Framework - Causal Relationships

ii. SEM: Measurement & Structural Models

iii. PLS-based SEM

3. An Illustration of IEF application

- Data & Results

WHY WE NEED (CORE) VALUES NOW?

1. Core element in Strategic Management System

2. Rhetoric-Reality Gap – confuse aspired behavior with actual behavior

3. Values-related events leading to the collapse of giant organisations and Disclosures of malpractices in public organisations – as reported by Auditor General Report

In Audit General Report:

• Dishonesty in spending/claims by public servants

• Corruption & Abuse of power by heads of departments

• Lack of urgency by public servants in making decision, resulting in delays in many service deliveries

• The collapse of leading corporations

(e.g., Enron 2001, Northern Rock 2007, Lehman Brothers 2008, Bernard Madoff)

Global Scenario Public Organisations

• Lack of financial accountability

• Lack of transparency in corporate governance• Greed & Manipulation of Trust

Values-related Crisis – PAST & CURRENT ‘Events’

These past & current ‘events’ – as strong reminders for organisations about the importance of ‘core values’ as the ‘guiding principles’

1. To measure ‘subjective’ core values in most accurate manner – use indicators or proxies

2. To ‘operationalise’ core values as the driving force in the pursuit of performance excellence - make ‘visibility’ of values-related strategies and actions as a formal agenda

3. Existing BEMs such as Malcom Baldrige and EFQM do not address core values in explicit manner, i.e., do not use

core values as an independent assessment dimension

So we propose the Values-based Total Performance Excellence Model (VBTPEM) as a framework for values-centric BEM by addressing core values explicitly in defining/formulating indicators for measuring relevant performance constructs/dimension/criteria.

The Challenges

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The Value-Based Total Performance The Value-Based Total Performance Excellence Model - FrameworkExcellence Model - Framework

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Examples of the (Core) Values from successful companies

• A belief in the important of people as individuals and people are treated with respect (e.g., Citibank)

• A belief that most members of the organisation should be innovators and a corresponding willingness to support failure (e.g., Hewlett Packard)

• A belief in the importance of the details of execution, the nuts and bolts of doing the job well ( e.g., Pepsi Cola)

• A belief in superior quality and service (e.g., Proctor & Gamble)

• Respect for People

• Innovation & Tolerance

• Meticulous / Thorough

• Quality

Core Values Core Values StatementStatement

Core Values Core Values StatementStatement

Core ValuesCore ValuesCore ValuesCore Values

Implementing Innovation Excellence Implementing Innovation Excellence Framework (IEF)Framework (IEF)

THE BASELINE ASSESMENT USING

IEF

THE BASELINE ASSESMENT USING

IEF

VALUE-BASED INTERVENTION

PROGRAM

VALUE-BASED INTERVENTION

PROGRAM

POST-EVALUATION OF ORGANISATION PERFORMANCE

EXCELLENCE THROUGH IEF

POST-EVALUATION OF ORGANISATION PERFORMANCE

EXCELLENCE THROUGH IEF

To examine the extent to which core values are ‘visible’

and ‘internalised’ in organisations

To rectify, accommodate and Instill the missing core-values

To assess the impact of The Value-Based Intervention Program

12

Are the Desired

Results Met?

Are the Desired

Results Met?

No

YesEnhance organisation-wide Core Values & organisational Best Practices

On-line Survey & Analysis using VBTPEM Automated System

Transformation Scheme

PROCEEDTMBaseline

Assessment

BASELINEASSESSMENT

&VALUE-BASED

TRANSFORMATION

Truthfulness

Trustworthiness

Sincerity

Commitment

Sense of Direction

Competency

Rightness

Wisdom

Harmony

Unifying

Sustainability

Opportunity-Sensing Comradeship

Consultation

Caring

Trust

Respect

Quality

Meaningfulness

Good Intention

Beneficial

Openness

Receptiveness

Timeliness Respectfulness

Non-discriminatory

Mutual Interest

Responsiveness

Interdependence

Social Responsibility

Effectiveness

Appropriateness

Optimisation

Efficiency

Prudence

SynergismExemplary

Advancement

Mutually Beneficial

Universal

Achievability

Transparency

Fairness

Consultation

Mutual Trust

Acknowledgment

Altruism

Empowerment

Beneficial

Genuineness

Ethical

Value -Add

Enterprising

Competitiveness

Efficiency

Collectiveness

Non-exploitative

Economy of Scale

Frugality

Timeliness

Profitability/Cost Saving

Regulatory/Shariah Compliance

Market Value

Stakeholder/Cust. Satisfaction

Image/Reputation

Loyalty/Retention

STRUCTURAL EQUATION MODELING:MEASUREMENT & STRUCTURAL MODELS

0 1 2 3 4 5 6 7 8 9 10Rating ScaleDegree of ‘Visibility’ of Almost not Visible Somewhat Visible Fairly VisibleFairly Visible Most VisibleMost Visible

How do we Measure Values?How do we Measure Values?

Example: To measure ‘Committed’ LeadershipWhat’s your rating for the ‘commitment’ of leadership based on how visible (rarely/occasionally/ often) the leadership is seen with subordinates discussing and encouraging them to work towards achieving organizational goals

Example: To measure ‘Committed’ LeadershipWhat’s your rating for the ‘commitment’ of leadership based on how visible (rarely/occasionally/ often) the leadership is seen with subordinates discussing and encouraging them to work towards achieving organizational goals

THE BENEFITS OF CREATING A VALUES-BASED WORKPLACE

• Higher employee productivity, engagement and creativity

• Lower attrition rate

• Lower absenteeism and lower health-related expenses

• Better teamwork

• Loyal customers who are delighted by your energized employees

• Organisations can gain a reputation as great (most admired) places to work.

REFERENCESBOOKS & MONOGRAPH

•Mokhtar Abdullah, Nooreha Husain, Nik Mustapha Nik Hassan and Mazilan Musa (2003). Value-Based Total Performance Excellence Model: Baseline Assessment Criteria Guidelines for Organisations, Institute of Islamic Understanding Malaysia (IKIM), p. 92.

•Mokhtar Abdullah, Nooreha Husain, Nik Mustapha Nik Hassan and Mazilan Musa (2003). Essays on ISLAMIC MANAGEMENT & ORGANISATIONAL PERFORMANCE MEASUREMENTS, Institute of Islamic Understanding Malaysia (IKIM), p. 165.

REFERENCESJOURNALS 2012

1. Mokhtar Abdullah, Mohd Rashid Ab Hamid, Zainol Mustafa, Nur Riza Mohd Suradi, Fazli Idris, (2012). Value-based Total Performance Excellence Measurement (VBTPEM): A Conceptual Framework for Organisations, Total Quality Management and Business Excellence, DOI:10.1080/14783363.2011.637786 (ISI INDEXED ;IMPACT FACTOR 0.387)

2. Hamid, M. R. Ab. Mustafa Z., Idris F., Abdullah M., Suradi N. R. M. & Ismail W. R. (2012). Value-Based Performance Excellence Measurement for Higher Education Institution: Instrument Validation, accepted for publication in Quality & Quantity International Journal of Methodology, (ISI INDEXED; IMPACT FACTOR 0.688)

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Methodology

0 1 2 3 4 5 6 7 8 9 10

Interpretation of scale measurement (scale 0 to 10)

Rating of ‘Visibility’Rating of ‘Visibility’

Not Visible Somewhat Visible Visible Most Visible

Index Scoring & Grading

SCALE : 0 - 100

Excellence 81 – 100

Good 61 – 80

Moderate 41 – 60

Poor 0 – 40

The scores for all the corresponding items in the questionnaires are then transformed into the Performance

Index which has a scale of 0 to 100. This performance index can lead to organizations becoming focused on reaching a particular number, to the

extent of specifying a precise numeric target for the organization to achieve. The four categories used

to describe the levels of performance excellence are as

shown:

ConclusionConclusion

IEF- A systematic way of identifying the strengths of the innovation capabilities

in the universities and improvement opportunities while at the same time

monitoring the progress of total performance