The Foundation Business Excellence

Industry Leadership
Business Excellence Criteria

Core Values

Core Values & Concepts

Visionary Leadership

How does the organizational leadership

team balance the needs of all
stakeholders?
How do they ensure the creation of
strategies, systems, and methods for
achieving excellence, stimulating
innovation, and building knowledge and
capabilities?
Senior leaders to serve as role models
through their ethical behavior and their
personal involvement in planning,
communications, coaching, development
of future leaders, visioning etc.

Core Values & Concepts

Visionary Leadership

Organizational &
Personal Learning

How is the organization

converting the
personal learning of
its employees into organizational
learning?
What is the Knowledge
Management system?
How is the knowledge sharing taking
place across the organization?
Is the organization continuously
improving?

Core Values & Concepts

Visionary Leadership

Core Values & Concepts

Visionary Leadership

Organizational &
Personal Learning

Is the organization proactive in

leading change?

Organizational &
Personal Learning

Agility

Is the organization meeting the

customers requirements in a
proactive manner?

Agility

What is the organizations capacity

for flexibility and rapid change?

Visionary Leadership

Organizational &
Personal Learning

Agility

Valuing Employees &

Partners

Managing for Innovation

Development and well-being of

its employees?

Valuing Employees &

Partners

Core Values & Concepts

Does the organization consider

innovation as a part of its culture and
integrate it with its employees daily
work?

Does the organization consider

employees as its internal
customers?

Core Values & Concepts

Visionary Leadership

Is the organization
making meaningful change to improve
its products, services, and processes
and to create new value for its
stakeholders?

Is the organization committed to

satisfaction?

Organizational &
Personal Learning

Agility

Valuing Employees &

Partners

Managing for Innovation

Customer- Driven
Excellence

It means much more than reducing defects

and errors, meeting specifications, or
reducing complaints.
How does the organization differentiate its
products and services from competing
offerings?

It demands constant sensitivity to

changing and emerging customer &
market requirements.

Core Values & Concepts

It means much more than business plans!
Visionary Leadership

How does the organization anticipate many

factors that affect its future business such
Organizational &
as evolving
regulations, market
Personal Learning
conditions, technology developments,
developing employees and suppliers?

Customer- Driven
Excellence

Focus on the Future

Core Values & Concepts

How Visionary
does the Leadership
organization manage
performance with respect to all
stakeholders?
Organizational &
Personal Learning

A major consideration in performance

improvement and change management
involves theAgility
selection and use of
performance measures.

Agility

It demands creating opportunities for

innovation and anticipating public
Valuing Employees &
responsibilities.

Managing for Innovation

Core Values & Concepts

Core Values & Concepts

Visionary Leadership

Customer- Driven
Excellence

Organizational &
Personal Learning

Focus on the Future

Valuing Employees &

Managing for Innovation

Management By Fact

Partners

Managing for Innovation

By creatingPartners
value for its stakeholders the
organization builds loyalty and contributes
to growing the economy.

Focus on the Future

Employeesgets
& done!
WhatValuing
gets measured

Partners

How does the organization focus on

results and Agility
balance value for its
stakeholders?

Customer- Driven
Excellence

Management By Fact

Focus on Results &

Creating Value

Visionary Leadership

How does the organization focus on

&
meetingOrganizational
the basic responsibilities
of
Personal Learning
business
ethics and protection of public
health, safety, and the environment.
Agility

Organizations should not only meet all the

state and federal laws but use these as
Valuing Employees
&
opportunities
for improvement
beyond
Partners
mere compliance.
How does the organization ensure good
Managing for Innovation
corporate governance?

Customer- Driven
Excellence

Focus on the Future

Management By Fact

Focus on Results &

Creating Value
Public Responsibility
& Citizenship

Core Values & Concepts

Visionary Leadership Systems Perspective

Core Values & Concepts

Visionary Leadership

Customer- Driven
Excellence

Organizational &
Personal Learning

Focus on the Future

Agility

Management By Fact

Valuing Employees &

Partners

Focus on Results &

Creating Value

Managing for Innovation

Social Responsibility
& Citizenship

Customer- Driven
Excellence

Systems
Organizational
& perspective means managing the
Focus on the Future
Personal whole
Learningorganization, as well as its
components, to achieve its success.
Agility
Management By Fact
Organization is well aligned and

integrated.
Valuing Employees &
Partners

Focus on Results &

Creating Value

Managing for Innovation

Social Responsibility
& Citizenship

Systems Perspective

Business Excellence Awards

National Frameworks

Business Excellence Award

Country/Continent

Establishment

USA

1987

Australian Business Excellence

Award

Australia

1988

European Foundation for Quality

Management

Europe

1992

India

1994

Singapore

1994

Malcolm Baldrige National Quality

Award

CII-EXIM Bank Business Excellence

Award
Singapore Quality Award

The DimensionsBusiness Excellence

The philosophyBusiness Excellence

Approach

Values

Processes

Deployment

Results

Review, Align & Improve

Approach
1

Leadership

Processes

Practices

Workforce
Focus

Deployment

Strategic
Planning

Practices

Outcomes

Results

Customer
Focus

Work Core
3

Operations
Focus

Results
6

Driver Triad Measurement, Analysis and Knowledge Management

The Criteria build on

Core Values & Concepts

MBNQA Model
TOTAL
Max- 1000 Points

Approach & Deployment

Max- 550 Points

85

85
450

which are embedded in

Systematic Processes

120

85

85

90
yielding
Performance Results.

Managing the components and

the entire system

1.1: Leadership
setting
direction thru
the Vision.
2.1: Strategy
Development:Determin
e the strategic
objectives
3.0: Customer
Focus
Execution of
Plans

2.2: Strategy
Deployment:Develop
Action Plans.

5.0: Human
Resource Focus
Execution of
Plans
4.0: Information
& Analysis
Execution of
Plans
6.0: Operations
Focus
Execution of
Plans

Use of E & I to Align & Integrate

Integrated

7.2: Financial
Results

Using E & I
7.1: Customer
Focussed
Results

7..3: Human
Resource
Results

1.1: Leadership Organizational

Performance
Review

Aligned

Pockets of excellence

7.4:
Organizational
Effectiveness
Results

4.0 : Selection of measures/indicators; Collection and analysis of

data for the selected measures.

Companies need to do both

A point to note
Opportunity For Improvements

New Initiatives
Plan, Do, Study
and Act (thru CFT)

Deployment

Approach

Alignment
& Integration

Improvement
in each area

Measures
Measure

E&I

Business
Results

Aligned

Integrated

Vision
Mission
Values

Lead

Lag

Scores vis-a-vis global image

Baldrige Index Beats Market

Global Image

876 1000:

180

World Class Leader

Q-100
S&P 500

751 875:

Benchmark Leader

Excellent

651 750:

Industry Leader

140
551 650:

120

451 550:
351 450:

Emerging Industry Leader

Good Performance

Average

Early Improvements

Nov-01

Jul-01

Sep-01

May-01

Jan-01

Mar-01

Nov-00

Jul-00

Sep-00

May-00

Jan-00

Mar-00

Nov-99

Jul-99

Sep-99

May-99

Jan-99

Mar-99

Sep-98

100
Nov-98

Bn. Dollars

160

251 350:

Early Results

Poor
0 250:

Early Development

A better understanding of the structure

A better understanding of the maturity flow

Category
Reqment
Basic
Purpose

Area To
Address

Overall Item
Requirement

Multiple Item
Requirement

The Scoring System

The scoring of responses to Criteria Items (Items) and

MBNQA
Evaluation
Process

Award applicant feedback are based on two evaluation

dimensions:
1. Process and
2. Results.

Process

Process
Process refers to the methods your organization uses and improves to
address the Item requirements in Categories 16.
The four factors used to evaluate process are (ADLI):
Approach refers to:
the methods used to accomplish the process
the appropriateness of the methods to the Item requirements
the effectiveness of your use of the methods
the degree to which the approach is repeatable and based on
reliable data and information (i.e., systematic)
Deployment refers to the extent to which:
your approach is applied in addressing Item requirements
relevant and important to your organization
your approach is applied consistently
your approach is used (executed) by all appropriate work units

Learning refers to
refining your approach through cycles of evaluation and improvement,
encouraging breakthrough change to your approach through innovation,
sharing of refinements and innovation with other relevant work units and
processes in your organization.
Integration refers to the extent to which
your approach is aligned with your organizational needs identified in
other Criteria Item requirements
your measures, information, and improvement systems are
complementary across processes and work units
your plans, processes, results, analyses, learning, and actions are
harmonized across processes and work units to support organizationwide goals

Results
Results refers to your organizations outputs and outcomes in achieving
the requirements in items 7.17.5 (category 7).
The four factors used to evaluate results are levels, trends, comparisons,
and integration (LeTCI).
Levels refers to
your current level of performance
Trends refers to
the rate of your performance improvements or the sustainability of good
performance (i.e., the slope of trend data)
the breadth (i.e., the extent of deployment) of your performance results
Comparisons refers to
your performance relative to appropriate comparisons, such as
competitors or organizations similar to yours
your performance relative to benchmarks or industry leaders

Results
Integration refers to the extent to which
your results measures (often through segmentation) address
important customer, product, market, process, and action plan
performance requirements identified in your Organizational Profile
and in process items.
your results include valid indicators of future performance.
your results are harmonized across processes and work units to
support organization-wide goals.

(10-25%)

(0-5%)

(30-45%)

(50-65%)

EFQM: Fundamental Concepts

(70-100%)

EFQM Model

(European Foundation for Quality Management)

(European Foundation for Quality Management)

10%

10%

10%

10%

10%

15%

10%

10%

15%

10

RADAR Scoring Matrix

RADAR Scoring Matrix

Key Changes (Enablers)

Integration of Fundamental Concepts into the Model

RADAR Scoring Matrix

Key Changes (Results)

11

Initiatives Based on EFQM Model

CII-EXIM: The Need for a Model (India)

CII-EXIM: Levels of Recognition

The key drivers for an organization to initiate
Process Excellence program, in the relative
order of importance appear to be:
1. Attaining Certifications / attestations
2. Increasing Employee Morale
3. Reducing Cost of poor Quality
4. Better Recognition in Business community
5. Improving effectiveness of Business process

6. Deriving Competitive advantage.

Around 96 executives representing 65 organizations (August 2009)

12