This presentation is about a new way to use business excellence model. It is about integration of business excellence model to continual improvement and for organisational transformation. Based on the paper presented by the author.
1. New way to use EFQM business
excellence model for continual
improvement & business
transformation
V 1.3 9-10-2012
By
Jagadish C.A. (Rao) , Founder of q-Maxim
Adopted from the paper presented during
Middle-east International Quality summit
1
2. THIS PRESENTATION DESCRIBES INTEGRATION OF
OF BUSINESS EXCELLENCE MODEL TO CONTINUAL
IMPROVEMENT STRATEGY OF ENTERPRISE
AND FOR BUSINESS TRANSFORMATION
ADOPTED FROM THE PAPER PRESENTED BY THE AUTHOR
DURING MIDDLE-EAST INTERNATIONAL QUALITY
SUMMIT
2
3. •Business excellence models- what is it, why
•EFQM business excellence model details
•EFQM traditional approach based on submission
• The new integrated continual improvement approach
•q-Maxim’s transformational approach
•What next?
•
contacts, background of founder q
q-Maxim
3
4. Business Excellence
“Quality is never happens by accident”
-Juran, Deming, Ichikawa…….
(Quality gurus)
Business Excellence is a organizational
Quality model
4
5. Introduction –Approaches to Business
Excellence
• Several excellence models –
Deming (Japan) , MBNQA (US), EFQM (Europe)
• Several excellence awards in India :
CII- Exim bank Excellence award, Rajiv Gandhi
National Quality Award, individual company
awards such as Tata group’s TBEM
• Most are based on either EFQM or MBNQA
award scheme
5
6. Why companies go for Business
Excellence?
• Organization wide integrated quality approach – easy to
comprehend
• Measurable – excellence score
• Under pressure to improve quality due to competitive
pressures
• Brand building , recognition
• Impress - customers, suppliers, other stake holders
• Encouragement from corporate management,
govt. and industry associations
• Number of studies on Excellent companies (EFQM,
MBNQA,TQM) have shown significantly better financial
performance and stock price compared to peers (see next
slide)
6
7. Why companies go for
Business Excellence?
Results of award winning companies 5 years after winning
7
8. •Business excellence models- what is it, why
•EFQM business excellence model details
•EFQM traditional approach based on submission
• The new integrated continual improvement approach
•q-Maxim’s transformational approach
•What next?
•
contacts, background of founder q
q-Maxim
8
9. EFQM business excellence model
• Developed / managed by non-profit European
foundation for quality (EFQM) organization
• EFQM supported by leading European companies
• A quality model, holistic management framework
with a strong focus on delivering key results,
stimulating innovation, ensuring sustainability and
meeting the expectations of stakeholders. (source:
EFQM)
9
10. EFQM business excellence model
overview
• 3 integrated components
1. Fundamental concepts of excellence (basic principles)
2. Criteria for organisations
3. The RADAR (powerful tool for measurement)
• 8 fundamental concepts
• 9 criteria (5 enablers, 4 results), Each criteria has
several sub criteria
• RADAR based on Deming’s PDCA cycle
(next 6 slides on components of EFQM model)
10
12. EFQM business excellence model
5 enabler criteria, 4 results criteria
The EFQM Excellence Model allows people to understand the cause and effect relationships
between what their organisation does, the Enablers, and the Results it achieves.
12
14. EFQM business excellence model
RADAR - measurement / scoring system
What is RADAR?
Results (R) desired, Plan and develop Approaches (A), Deploy Approaches (DA),
Assess and review (AR)
14
17. EFQM business excellence model-
excellence score -what does it indicate?
• Best in class companies score 500-700 / 1000
• Excellence score answer these basic questions:
– Are the performance results due to carefully
thought out & planned action by management ?
(or is it simply fluke?)
– To what extent?
– Are these sustainable?
17
18. EFQM business excellence model –
scores- assessment methods
Three different ways exist in EFQM:
1. Submission documents by company (<= ~70
pages) and assessment
2. Use of internal documentation
3. Management Workshop
Note:
1. Assessment done by approved assessors
2. Only method #1 used in India
18
19. EFQM business excellence model
EFQM excellence levels
Three different levels :
1. award winner for each category
(highest category, best in class companies)
2. Recognised for excellence
stars rating (R4-E stars) –[could be 3,4,5 stars]
3 =~300 excellence score & so on.
(for companies well on the way towards
excellence)
3. Committed to excellence
- (for beginners)
Note: Only type #1 is used in India
19
20. •Business excellence models- what is it, why
•EFQM business excellence model details
•EFQM traditional approach based on submission
• The new integrated continual improvement approach
•q-Maxim’s transformational approach
•What next?
•
contacts, background of founder q
q-Maxim
20
21. Excellence model traditional approach
assessment mechanism
1. Companies prepare and submit application
(max 70 pages )
2. Preliminary Scoring by assessors
3. Site visit by assessors, final score
4. award winner for each category
5. all applicants get a assessment report
(flow chart in next slide)
21
22. Excellence model traditional approach
flow chart-assessment continuous improvement linkage
Form a team , appoint
criteria owner for each
section
Ring fence area :
Formulate a plan- information Fill information as
Form a small team per Performa and
dates, milestones gathering , data
of writers for each write each area
collection
section
Periodic project Finished
Final submittal
Status reviews Projects outputs
Evaluation by
assessors
Project charters
Raw score by each
Meeting to assessor
discuss & report:
finalize scores, improvement Awards
ceremony Final score Site visit -discussions
projects notes
22
EVENT / ACTIVITY LEGEND Output / Information
23. EFQM model traditional approach –
shortcomings
• One company in each category wins – low probability
of winning
• In most cases winning recognition / award basis as
primary purpose
• Very few people involved in the exercise
• In most cases no action taken based on feedback report
• generally low/no linkage to cont. improvement efforts
• limited integration with org. strategy/ objectives
• Consequently, scores remain static over the years
23
24. •Business excellence models- what is it, why
•EFQM business excellence model details
•EFQM traditional approach based on submission
• The new integrated continual improvement approach
•q-Maxim’s transformational approach
•What next?
•
contacts, background of founder q
q-Maxim
24
25. New integrated continual improvement
approach
features
• Roughly based on EFQM’s recognized for excellence
(R4E stars) award scheme
• Facilitated workshop assessment - no submission
• Tight integration with business objectives and cont.
improvement
• Pre-assessment Implement Strategic quality
improvement initiatives before award
assessment
• Emphasis on Continual improvement rather than
winning
(flow chart next slide)
25
26. New integrated continual improvement
approach
flowchart
EFQM workshop Discuss
business. context,
Understand EFQM model,
Do Gap analysis
To BE RADAR
Results
Approaches Objectives,CSF
Start strategic Deployment Strategy workshops KPI, Initiatives
theme projects Assessment review etc
Possible Initiatives
Finalize projects based
on filtering criteria
Project charters
Periodic
Strategy Finished Periodic project
reviews Projects outputs Status reviews
EFQM R4E stars
EFQM stars rating award application, Completed projects
improvement suggestions assessment
26
EVENT / ACTIVITY LEGEND Output / Information
27. New integrated continual improvement
approach
some more detail
• Steps in detail
– STAGE: A
– STAGE: B
– STAGE: C
– STAGE: D
– STAGE: E
(details in next 7 slides)
27
28. New integrated continual improvement
approach
details -stage A: Pre-assessment
• Pre-assessment by approved assessors / consultants
• Preparation by documents studying , interviews (3-4
days)
• Facilitated management workshop assessment with
top management (1-2 days)
• Agenda: refresher on Business excellence / RADAR,
org context, gaps, excellence score
28
29. New integrated continual improvement
approach
details -stage A: Pre-assessment
• Agree on high level strategic theme projects
– e.g. management system, process management
framework
• Suitable team structure
• Output Pro-forma : As Is state, To Be state,
gaps, list of initiatives (next slide)
• Get sponsor Agreement
29
30. New integrated continual improvement
approach
details -stage A: Pre-assessment
Typical pro-forma of the high level project
Organizational values are PLANNED, MANAGED AND IMPROVED USING RADAR
AS IS/TO BE* (* delete as appropriate)
Organizational values are developed………….
Activity and
Purpose:
RADAR RADAR ELEMENT OWNERSHIP
ATTRIBUTE
Results
(trended over
time)
Approach
Deployment
Assessment
and Review
30
31. New integrated approach
stage C: project prioritization
• Compile all initiatives companywide
• Merge similar ones (e.g. by affinity diagram)
• Prioritize as per filtering criteria (examples)
• Linkage to strategic goals
• Relation to key business processes
• Time needed to complete
• Resources needed, available
• Payback period
• Impact on EFQM excellence score
• Compile a single org. wide cont. improvement
projects list mapped to EFQM model (next slide)
32
33. New integrated approach
details- stage D: Project management
• Suitable project management structure
• Train people: e.g. EFQM, project management,
Quality tools, BSc, domain related trg. etc
• Each team has a charter: Business Case, Opportunity
Statement, Business Impact, Goal Statement: Success criteria,
Project Scope- Boundaries, project plan / milestones, team
constitution
• Dashboard, individual project tracker (next slide)
for monitoring project status
• Mechanism to Assist laggards
35
34. New integrated cont. improvement approach
details -stage D: project tracker
Date: Progress Status Progress Track
(vs. Plan)
Team Lead: Planne % Complete
d
Team Members: On Target G
Behind, can catch up Y
Behind, resource or
scope change needed R
Accomplishments Since Last Update Actions/Activities Planned for Next Month
Key Issues Planned Actions to Resolve Issues Need Help?
35. New integrated cont. improvement approach
details -stage E: final assessment
• Workshop based assessment
• Done by approved panel of assessors
• two step process :
1. Data compilation, interviews
2. Facilitated management workshop
assessment
• Output : Score in each area, stars rating
(optional), improvement notes
37
36. New integrated cont. improvement
approach
advantages / benefits
• Top management involvement &
Involvement of People at all stages
• No writing of time consuming submission
document
• Holistic continual improvement approach
incorporating strategy, business objectives, EFQM
model and EFQM fundamental concepts
• Business excellence incorporated in daily
working
38
37. New integrated cont. improvement
approach
advantages / benefits
• Emphasis on improvement rather than
winning award
• Can also be used for business
transformation
• Internationally recognized R4E stars
rating (optional)
• Brand building
• Implemented in several companies
39
38. New integrated cont. improvement approach
advantages / benefits
• New concept - convincing hurdles
• Top management hands on involvement
is a must at least in initial stages
• Significant resource requirements in
terms of time, finance, training,
software, etc
40
39. •Business excellence models- what is it, why
•EFQM business excellence model details
•EFQM traditional approach based on submission
• The new integrated continual improvement approach
•q-Maxim’s transformational approach
•What next?
•
contacts, background of founder q
q-Maxim
41
40. q-Maxim’s transformational approach
overview
• The EFQM integrated continual
improvement approach explained in the
previous slides also forms the basis for
q-Maxim’s 2 stage transformational
approach
(flow chart in next slide )
42
41. q-Maxin’s
2 stage transformational framework
Discuss with
Study Assessment &
people at all gap analysis
information levels, look at based on
evidence q-Maxim’s
Begin individual
proprietary
initiatives e.g.
Methodology
Taguchi DOE for
based on EFEM
yield
& Lean
improvement
Discuss,
Prioritize HOA Report :
OFI based 1. Strong points
Organization wide OFI list on set 2. OFI, suggestions
id#, effort estimate, responsibility criteria
resources, timelines
confidential 43
42. •Business excellence models- what is it, why
•EFQM business excellence model details
•EFQM traditional approach based on submission
• The new integrated continual improvement approach
•q-Maxim’s transformational approach
•What next?
•
contacts, background of founder q-Maxim
44
44. Contacts:
Need clarifications OR more detailed information OR preliminary free
assessment OR run similar program in your company?
q-Maxim
Jagadish C.A. (Rao)
(profile next slide)
Founder, President
jagadish.chandra@qmaxim.com
qmaxim001@gmail.com
+91 9538328704
+91 80 2693 1804
Visit us at : qmaxim.in
blog: qmaxim.wordpress.com
Note : Contents of this presentation, concepts, data, style are proprietary & confidential in nature and must
not be shared with third parties
45. Profile of Jagadish C.A.,
Founder of q-Maxim
• B.Tech (Metallurgical Engg., NIT-K,Surathkal, India, 1st class distinction)
• ASQ (American society for quality) certified Six sigma Black belt
• ASQ certified Manager of Org. Excellence/ Quality
• Certified EFQM assessor extensive experience assessing companies,
fashioning transformational roadmap & implementing EFQM model
• Juran QI facilitator, Cert. adv. Industrial experimentation, Analytics
• ISO 9001:2008,14001,QS-9000 (TS 16949) lead auditor
• ~30 years experience in Manufacturing and transactional fields, 5.5 years
as management consultant
• Rich experience in Quality, process management, R +D, Technology, Cost
reduction, Management consultancy. Extensive experience in using
advanced methodologies for problem solving and optimization
• Extensive exposure/ knowledge of heavy process oriented manufacturing
– Aluminium cast house, Steel, Welding, casting, foundry, Metallurgy, etc
• Widely travelled – India, north America, Europe, M.E.
47