The key ingredients for organizational excellence according to the document are effective leadership, systems thinking, engaging people, process excellence, and knowledge management. The document discusses various models for organizational excellence such as the Balanced Scorecard, Learning Organization model, and Deming's profound knowledge. It emphasizes that organizational excellence requires a focus on people within the organizational system working together in an outstanding way to achieve their shared purpose. Leadership is seen as crucial to define the vision and create an environment where culture and interactions enable excellence.

1. KEY INGREDIENTS FOR
ORGANIZATIONAL EXCELLENCE
April 21ST , 2015
Desmond Mahadeo, Bsc. Eng, CQE, LSSBB
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2. Presentation
Based on Experiential Learning and established
methodologies:
• Share what I learnt from experiences
• Look at concepts ..the “what”
• Execution ….the “how”
• Examples
• Success/failure
• Disclaimer and acknowledgements
• Sources of the concepts/ideas
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3. Organizational Excellence
Let’s talk about Excellence, what are your thoughts?
• What do you think it means?
• Why do we need it?
• Is mediocrity good enough?
(we can’t be all excellent,… after all)
• Is it a destination or a journey?
• Is there a cost associated with it? And if so, does the
benefit or value outweigh it?
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4. Scratch sheet of ingredients
Aggressive, Achievable goals Environment to sustain customer engagement
Effective vertical and horizontal communication
Factual Approach to decision making
Effective Change Management
Value diversity, including acceptance of radical thinking
Sarbanes Oxley, Good citizen, social, legal ,environmental Effective benchmarking
Succession Planning
Agility, respond quickly to challenges
Fully aware of strengths and weaknesses
Effective Quality data and information systems
Know the competitors Effective management of people, resources capacityCustomer-centric
Embrace new technologies, media Emergency recovery plan
Value employees, open culture, transparency
Learning Organization
Authenticity
Accountability at all levels
Value based, waste reduction
Develop effective measurements/metrics
Good vendor relationships
Identify and build core competencies
Train and develop people
Alignment throughout to vision
Live by their “mission”
Formal evaluation and improvement process Empowerment of employees
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5. Organizational Excellence
So we all know the “what”….the question is “how”?
• Lets look again at the scratch sheet, what do we need to do
to achieve those on the list?
• If we look closely it is mostly people related or it depends
on the interaction of people within the organisation
• What jumps at us is the degree leadership* plays on setting
the tone
• Let’s look at it again- all the red’s leaders have to provide
/set the tone and demonstrate
* Leadership (context)
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6. Scratch sheet of ingredients
Aggressive, Achievable goals Environment to sustain customer engagement
Effective vertical and horizontal communication
Factual Approach to decision making
Effective Change Management
Value diversity, including acceptance of radical thinking
Sarbanes Oxley, Good citizen, social, legal ,environmental Effective benchmarking
Succession Planning
Agility, respond quickly to challenges
Fully aware of strengths and weaknesses
Effective Quality data and information systems
Know the competitors
Effective management of people, resources capacity
Customer-centric Embrace new technologies, media
Emergency recovery plan
Value employees, open culture, transparency
Learning Organization
Authenticity
Accountability at all levels
Value based, waste reduction
Develop effective measurements/metrics
Good vendor relationships
Identify and build core competencies
Train and develop people
Alignment throughout to vision
Live by their “mission”
Formal evaluation and improvement process Empowerment of employees
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7. Organizational Excellence
Let’s look at the Oxford definition:
Organization: An organized group of people with a particular purpose,
such as a business or government department
Organized: Arranged in a systematic way, especially on a large scale
“ Group of people arranged in a systematic way for a particular purpose”
Excellence: The quality of being outstanding or extremely good
So lets play with this….
Organizational Excellence:
Its about people within a system being extremely good or
outstanding at achieving their particular purpose
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8. Organizational Excellence
Organizational Excellence:
People , System , Outstanding at Achieving ,
Particular purpose
To accomplish this we need to focus on:
• People – Leaders and followers
• Leaders have to define the clear purpose (vision, mission)
• System – create a system with processes to enable the interactions of
leaders and followers to be outstanding in achieving their particular
purpose
Point here is that we forget the People aspect and focus on Process to
deliver value, we use the tools to improve processes and forget the
impact on the system!
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9. Established Models
for Organizational Excellence
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10. Models for organizational excellence
• The Balanced Scorecard- Kaplan and Norton
• The Learning Organization - Peter Senge
• Malcolm Baldridge Award – National quality award; USA
• Deming’s profound knowledge- Edward Deming
• ISO 9001:2008 – QMS Standard
• 5 pillars – Dr. H. James Harrington
• Domains of excellence - Dr. Karl Albrecht
• Versions Of Lean Enterprise - TPS
• Many…many…more
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11. 11Desmond Mahadeo

12. Seven Domains of
Excellence:
Dr. Karl Albrecht
• Strategic Focus
• Customer Value
• Leadership & Team
performance
• Culture, value &Ethics
• Process excellence
• Talent management
• Knowledge Management
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13. What theme do we see in the models?
We see:
• Leadership
• Systems thinking
• Knowledge Management
• People – development, empowerment, engagement
• Personal development
• Change management
• Communication
• Team Building
• Project management
• Processes - Value and results
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14. Leadership
Systems
Thinking
People
Process
Excellence
Project
Management
Personal
Development
Team
Building
Communication
Change
Management
Summarised – My view on OE…..
Value and
Results
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15. Leadership
Systems
Thinking
People
Process
Excellence
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Leadership

16. Leadership
• Strategic focus
• Set the direction, the vision
• Transparency
• Authenticity
• Accountability
• Respect
• Enumerate how to achieve the vision
• Provide support and resources
• Establish the framework, norms, policies
• Create the environment within which the culture of
the organisation can evolve to achieve excellence
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17. Strategic Focus
Strategic focus:
– What is the vision?
• Vision is where we are headed (future focused)
– What is the mission?
• What business are we in?
– What does the strategy look like?
• How is the vision/mission aligned to four areas ? (can
use “The Balanced Scorecard ”)
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Strategy Mapping
FINANCIAL
Manage the Budget
MISSION
CUSTOMER
Internal and external
INTERNAL PROCESS
Select key processes
LEARNING
&GROWTH
Enable the Human
element
STRATEGY
How to control
costs, eliminate
waste and not
operate at a
loss?
Which are the
key processes to
focus on?
How do we
create value for
customers?
How to manage
growth and meet
ongoing
demands?
Is the strategy
aligned to the
Mission?
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VISION

19. 19Desmond Mahadeo

20. Scanning the environment:
– PESTLE* analysis
– Levering on internal SWOT#
analysis
– Drive Smart Objectives
*Political, Economic, Social, Technological, Legal,
Environmental
# SWOT- Strengths, Weaknesses, Opportunities, Threats
Developing Strategy
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Threats LEGAL
External Forces
ECONOMIC
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STRATEGIC
THRUSTS
Strengths
1. _________
2. ________
3. _________
Weakness
1. ________
2. _________
3. __________
Opportunities
1. ___________
2. ___________
3. ___________
CAPITALISE –
Firmly grasp opportunities
using strengths
Build up –
Minimize impact of
weaknesses in pursuit of
opportunities
Threats
1. ___________
2. ___________
3. ___________
Invest –
Counter threats by
creatively extending use of
strengths
Limit damage –
Reduce exposure of
weaknesses to threats
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23. 23
Leadership
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24. • Transparency, Authenticity, Accountability, Respect
Achieved by:
- Modeling consistent behaviours
- Honest communication
- Holding self and others accountable
- Ensuring adequate resources and budget is provided to
achieve the objectives (not flavour of the month)
- Reward and recognition
Leadership
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25. Accountability…
This is a story about four people: Everybody, Somebody, Anybody and
Nobody.
There was an important job to be done and Everybody was asked to do it.
Everybody was sure that Somebody would do it.
Anybody could have done it, but Nobody did.
Somebody got angry because it was Everybody's job and it was not done.
Everybody knew that Anybody could do it, but Nobody realised that
Somebody wouldn't do it.
And Everybody blamed Somebody because Nobody actually asked Anybody.
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26. Leadership
Systems
Thinking
People
Process
Excellence
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Systems Thinking

27. 27
Systems Thinking
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28. Systems Thinking
The organization is a whole system
A system is a collection of interrelated, independent processes that work
together to turn inputs into outputs in the pursuit of some goal
Ackoff- It is not the hand that writes, it is you that write
Goldratt – TOC; manage the interaction (not the actual parts)
• Prevents “silo” mentality, fighting for resources among departments
• Budgets need to be prepared with this in mind
• Performance measures need to be established with this in mind. If
department “A” is @120% and the entire company is 67%...then??
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29. Applying Systems Thinking
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30. Theory of Constraints (simplified)
Identify the
Constraint
Manage the
Constraint
Evaluate the
performance
Repeat the
process
 Find the bottleneck, “exploit” or manage it. How do you increase the efficiency?
 Subordinate everything else, allow the constraint to be maximised
 Apply the fix, evaluate, is it eliminated?
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31. • Every system has a goal
– and a set of necessary conditions that must be satisfied to achieve that goal.
• The sum of the local optima (or local efficiencies) does not produce the
system optimum, or best system-wide success.
– The linkages are as important, if not more so, than the links. A
system's most serious problems occur at the interfaces between
components, not necessarily within the components themselves.
• Very few variables limit the performance of a system at any given time.
And we refer to these few critical limiting variables as "constraints."
• There are valid cause and effect relationships behind any effect on any
organization
Core Assumptions –TOC
Ref: Theory of Constraints by E.Goldratt
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32. Leadership
Systems
Thinking
People
Process
Excellence
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People

33. Desmond Mahadeo 33
People
Development, Empowerment, Engagement

34. People – Engagement
• Four generations in the workforce
– Baby boomers post 1946
– Gen X post 1963
– Gen Y post 1976
– Millennials post 1994
• Different approaches
– Gen X- more individual (are in their 50’s and 60’s)
– Gen Y more Team spirited like to band together, work has
to be fun, more impatience (30’s and 40’s)
– Millennials – Technologically wired group (20’s)
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majority

35. • DETERMINE THE DRIVERS OF ENGAGEMENT
• LINK THE RESULTS TO BUSINESS OUTCOMES
• TRACK ENGAGEMENT LEVELS
– the level of engagement people have to their job, career or profession
– the level of engagement they have to their organization
– Surveys to determine how:
1. satisfied they are with their current job and their organization as an
employer
2. committed they are to making the job and organization successful
3. proud they are of their organization and the work they do
4. willing they are to positively talk about their job and the organization
People – Engagement
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36. If employees are engaged only to their job or profession, then
they will not be aligned to organizational goals and strategy.
If employees are engaged to the organization but not their job,
they will be aligned to organizational goals but will find it
difficult to do their jobs well and to deliver extra discretionary
effort in the work that they do.
People –Engagement
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37. Effective Managers focus on strengths
People – Development, Empowerment,
Focus on Weakness Focus on Strengths
Define performance by legislating required
skills or competencies.
Define performance by legislating required
skills outcomes. "What are we trying to
achieve?, how can you achieve this?
Identify which skills or competencies
employees lack and then plug the gaps
Identify each employee's strengths and use
these to reach the desired outcomes
"Area of opportunity" is a euphemism for
"area of weakness". Felt by the employee :
• actually attacks their self esteem and
self worth,
• creates a culture of fear of job loss or
promotions
"Area of opportunity" now becomes
“Area of strength".
Employee will be willing
to share and contribute
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38. What are the results with this approach on the
employees?
- Feel ownership of their work, they manage the
outcomes and are more eager to be creative
-Produce higher quality of work
- Empowered to solve problems and make decisions
- Continuously improve process and services
People – Development, Empowerment
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39. Leadership
Systems
Thinking
People
Process
Excellence
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Process Excellence

40. Process Excellence
Efficiency and Effectiveness:
Doing the Wrong things Wrong Doing the Wrong things Right
Doing the Right things Wrong Doing the Right things Right
PROCESSINPUT OUTPUT
EFFICIENCY
How we are
converting
inputs?
EFFECTIVENESS
How we are
achieving desired
outputs?
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41. Leadership
Systems
Thinking
People
Process
Excellence
Project
Management
Team
Building
Communication
Change
Management
Value and
Results
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Knowledge
Management

42. 42
Knowledge Management
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43. Knowledge Management
Process of creating value from intellectual capital and sharing that
knowledge with employees, managers, suppliers, customers, and
others who need it
Developing and supporting a learning organisation
Managing core competencies
Data-Information-Knowledge-Wisdom (paradigm)
• Tacit knowledge – not recorded, part of the intellectual asset pool, how to
capture and convert into explicit knowledge
• Wisdom is derived from the collective database of knowledge, built from
experience, values, and expert insights. Wisdom provides the capability to
exploit the use of the knowledge for informed decision making
A key to long-term success of any organization is the ability to differentiate
itself from competitors.
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44. 44
Knowledge Management
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45. Peter Senge’s Fifth discipline:
Discusses Core disciplines:
Personal Mastery – “live in a continual
learning mode”
Team Learning – “thinking together”
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Knowledge Management Approach
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46. 46
Change Management
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47. Leading Change
Beckhard’s equation:
Dissatisfaction- create it , what is the
“burning platform”?
Vision- focus on the outcomes
First steps- plans, resources
If any is zero, there is no change
Leading change Vs. Managing Change
Agility, response
Based on confidence and trust
Leader is not ‘travel agent”, (send people where they have never been before),
instead marches ahead; clears the path and communicate the vision, where are
we headed?
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48. Change
Initiator
Early Adopters
Early Majority
Late Majority
Willing to take
risk on change
Waits to hear
good anecdotes
Pragmatic: Wants
anecdotal evidence
Conservative:
Wants to see; Hold on
Skeptic: No Way
Laggards
Managing Change
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49. 49
Not so much about change ….but the “D”.. rate of change
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50. 50
Communication
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51. What, How, When
• Content
• Vertical and Lateral
• Appropriate use of technology
• Verbal vs. Nonverbal
• Communication tools and effectiveness
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52. • Open - all members feel free to share feedback, trust
• Inclusive – Involve employees in decisions that affect their
day to day work
• Two-Way – vertical and lateral, ideation, conversations both
formal and informal, prevents rumour machine
• Results Driven – focused on achieving measureable results
through interaction and to serve as ambassadors outside of
the organisations
• Multi-Chanelled – maintain consistency in the message using
different media, increases saturation and reduces the
downside of message being lost
Communication strategies
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53. 53
Team Building
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54. Essentials-Team Building
Back to basics: (Tuckman’s model)
1. Forming- Set the clear objectives
2. Storming – Trust, resolve conflicts (use Disc or MB
to understand team members)
3. Norming – Working together, recognition, team
building events
4. Performing – delegate tasks , celebrate successes
– Use strategies to move the team through stages to
performing
– May have to remove members
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55. 55
Project Management
Deadline is Deadline !
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56. Project Management (my version)
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PROJECT
INITIATION
Sources:
Data analysis
ideation
NEEDS ANALYSIS
Cost benefit
Define project
TEAM FORMATION
Select members
Assign champion
STRATEGIC
DEVELOPMENT
Project Statement
"problem that the
project will solve"
EVALUATION
Risk analysis
Critical success
factors
Identify barriers
PLANNING
Resources, timeline,
milestones, cost,
communication,
Gantt/WBS
ASSESSMENT
Project Charter
Measures
Approvals
EXECUTION
Champions manage
resources, get the work
done, try alternatives
work to plan
MONITORING
Project Engineering
Facilitate solutions for
deviations to plans,
report on progress
COMPLETENESS
CHECKS
Verify work is being
completed
CLOSEOUT
Evaluation of metrics
Were goals achieved?
Establish actions to
ensure sustainability
Things gone right
Things gone wrong

57. Measureable Results
“What gets measured gets done.” ..Peter Drucker, Tom Peters,
Edwards Deming, Lord Kelvin and others
“Not everything that counts can be counted, and not everything that can be
counted counts.” – Albert Einstein
“Measure the wrong things and you will likely get the wrong behaviors”
“Without a standard, there is no logical basis for making a decision or taking
action” ..Joseph Juran
“When something is measured but it isn’t important, it probably won’t get
done”
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58. • Determine the important business priorities
• Align with the Vision and Mission
• Should convey meaning to entire organisation
– Example: Scrap/OEE/OTD
• Set meaningful objectives… “SMART” acronym
Establishing Measures
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60. Examples – Three Companies
Success/failure
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61. Examples
• Established Company: KODAK
• Company A:
• Canadian Tire:
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62. KODAK
• WHY? Technology?- (digital era)
• In 1975, a Kodak engineer – Steve Sasson, invented the digital
camera
• As Sasson desperately wandered around the company trying
to convince senior executives of the potential of his discovery,
he was met with the mindset of a company in love with the
present.
• Fuji Films - facing exactly the same predicament as Kodak -
has managed to survive and thrive in the same business
climate that drove Kodak to ruin
• So Why? Combination of factors- Leadership, Vision,
lost touch with Customer, resistance to change
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63. 63
Design, engineering, processing, and manufacture of thermoplastic
products in North America.
Three segments: Custom Products, Outdoor Living Products, and Film
Products.
1. The Custom Products segment: Industrial OEM’s
original equipment manufacturers in window fashion, office furniture, consumer
electronics, transportation, home appliance, residential furniture, recreation vehicle,
and leisure/fitness industries.
2. The Outdoor Living Products segment: Wood replacement
wood replacement products for building products market and outdoor spa market.
Decking, railing, and fencing products to the home centre, lumber retailer, and
professional installer distribution channels. Cladding as skirting for outdoor spas, spa
steps, surrounds, privacy screens, and other accessories to spa manufacturers and
dealers in the spa channel.
3. The Film Products segment: Garbage/Plastic bags
Branded and private label household garbage and foods contact bags, as well as
kitchen garbage bag holders through Canadian mass merchant, grocery, drug
retailers, commercial customers in the food services and janitorial industries in the
United States.
Company A
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64. Company A
What went wrong????
 Excellent employee engagement
 Great culture
 Good talent management
 Internal Growth
 Benefits
….. had all the things on the scratch pad…. But as time went on…
MOVED AWAY FROM CORE COMPETENCIES, UNCONTROLLED GROWTH,
DISCONNECTED AS they GREW…Vision no longer relevant, failed to changed
(agility)
Economic forces- Profitability declined
Growth was not managed well
Started to lose engagement
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65. Canadian Tire
Corporation
PartSource
CT Bank
Petroleum Mark’s Work
Wearhouse
Canadian Tire
Retail
Forzani Group
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66. Canadian Tire - Results: 5Y
66
Founded in 1922, Canadian Tire is recognized
as a leader in retail, automotive, innovation
and sustainability in Canada
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67. ORGANIZATIONAL EXCELLENCE
No Magic potion!
• Leadership has to maintain profitability as an
outcome, balance growth, and ensure employee
engagement through effective processes
• Excellence is a Journey , a continuous
fluid state, not a Destination
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68. REMEMBER
Organizational Excellence:
Its about people within a system
being extremely good or outstanding
at achieving their particular purpose
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69. THANK YOU!
Henry Ford:
You can take my factories, burn up my
buildings, but give me my people and I’ll build
the business right back again.
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Desmond Mahadeo, Bsc. Eng, CQE, LSSBB
Desmond Mahadeo