Difference between revisions of "Business Excellence"
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| − | '''Business Excellence''' is often described as outstanding practices in managing the [[Organization|organization]] and achieving results, all based on a set of fundamental concepts or values. These practices have evolved into models for how a world class organization should operate. These models have been developed and continue to evolve through extensive study of the practice and values of the world’s highest performing organizations. Since the 1990s there has been a general decline in award applications. However there has been an increasing trend for organisations to apply these models and integrate the principles and practice with their day-to-day operations thereby achieving the benefits business excellence brings.<ref>Definition of Business Excellence [http://www.businessexcellencetools.com/business-excellence/ businessexcellencetools.com]</ref> | + | '''[[Business]] Excellence''' is often described as outstanding practices in managing the [[Organization|organization]] and achieving results, all based on a set of fundamental concepts or values. These practices have evolved into models for how a world class [[organization]] should operate. These models have been developed and continue to evolve through extensive study of the practice and values of the world’s highest performing organizations. Since the 1990s there has been a general decline in award applications. However there has been an increasing trend for organisations to apply these models and integrate the principles and practice with their day-to-day operations thereby achieving the benefits business excellence brings.<ref>Definition of Business Excellence [http://www.businessexcellencetools.com/business-excellence/ businessexcellencetools.com]</ref> |
'''Business Excellence Tools'''<ref>Business Excellence Tools for SMEs [http://mybusinessexcellence.com/business-excellence-tools-for-smes/ MyBusinessExcellence.com]</ref><br /> | '''Business Excellence Tools'''<ref>Business Excellence Tools for SMEs [http://mybusinessexcellence.com/business-excellence-tools-for-smes/ MyBusinessExcellence.com]</ref><br /> | ||
| − | Business Excellence tools are explained in 3 categories. First be clear on the desired outcome for your business and then choose carefully for most value. | + | Business Excellence tools are explained in 3 categories. First be clear on the desired [[outcome]] for your business and then choose carefully for most [[value]]. |
| − | *1. Some tools may be regarded as ''significant business improvement initiatives'', including [[Lean_Management|Lean Management]], [[Six_Sigma|Six Sigma]], [[Business_Process_Reengineering_(BPR)|Business Process Reengineering (BPR)]], [[Balanced_Scorecard|Balanced Scorecard]], [[Quality_Management_System_(QMS)|Quality Management Systems (QMSs)]], [[Total_Quality_Management_(TQM)|Total Quality Management (TQM)]] and [[Benchmarking|Performance Benchmarking]]. All of these major tools are sub-sets of Business Excellence and so they qualify as Business Excellence tools. | + | *1. Some tools may be regarded as ''significant business [[improvement]] initiatives'', including [[Lean_Management|Lean Management]], [[Six_Sigma|Six Sigma]], [[Business_Process_Reengineering_(BPR)|Business Process Reengineering (BPR)]], [[Balanced_Scorecard|Balanced Scorecard]], [[Quality_Management_System_(QMS)|Quality Management Systems (QMSs)]], [[Total_Quality_Management_(TQM)|Total Quality Management (TQM)]] and [[Benchmarking|Performance Benchmarking]]. All of these major tools are sub-sets of Business Excellence and so they qualify as Business Excellence tools. |
*2. A few tools are now available to ''enable Business Excellence as a whole'' to be implemented readily and quickly by the world’s [[Subject_Matter_Expert_(SME)|SMEs]]. | *2. A few tools are now available to ''enable Business Excellence as a whole'' to be implemented readily and quickly by the world’s [[Subject_Matter_Expert_(SME)|SMEs]]. | ||
*3. Finally, thousands of tools are available to assist employees with ''specific Business Excellence tasks'' such as developing a [[Pareto_Chart|Pareto Chart]], Quantifying the [[Benefit_Cost_Ratio_(BCR)|Benefit to Cost ratio]] of an improvement initiative, or Calculating the [[Standard_Deviation|Standard Deviation]] of a set of measurements. | *3. Finally, thousands of tools are available to assist employees with ''specific Business Excellence tasks'' such as developing a [[Pareto_Chart|Pareto Chart]], Quantifying the [[Benefit_Cost_Ratio_(BCR)|Benefit to Cost ratio]] of an improvement initiative, or Calculating the [[Standard_Deviation|Standard Deviation]] of a set of measurements. | ||
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'''Business Excellence Models'''<ref>Business Excellence Models [http://www.businessexcellencetools.com/business-excellence/ BusinessExcellenceTools]</ref><br /> | '''Business Excellence Models'''<ref>Business Excellence Models [http://www.businessexcellencetools.com/business-excellence/ BusinessExcellenceTools]</ref><br /> | ||
| − | Business excellence models are frameworks that when applied within an organisation can help to focus thought and action in a more systematic and structured way that should lead to increased performance. The models are holistic in that they focus upon all areas and dimensions of an organisation, and in particular, factors that drive performance. These models are internationally recognized as both providing a framework to assist the adoption of business excellence principles, and an effective way of measuring how thoroughly this adoption has been incorporated. | + | Business excellence models are frameworks that when applied within an organisation can help to focus thought and action in a more systematic and structured way that should lead to increased performance. The models are holistic in that they focus upon all areas and dimensions of an organisation, and in particular, factors that drive performance. These models are internationally recognized as both providing a [[framework]] to assist the adoption of business excellence principles, and an effective way of measuring how thoroughly this adoption has been incorporated. |
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*[[Baldrige_Award|Baldrige (MBNQA)]] – Used in over 25 countries including US and NZ | *[[Baldrige_Award|Baldrige (MBNQA)]] – Used in over 25 countries including US and NZ | ||
*[[EFQM_Excellence_Model|European Foundation for Quality Management (EFQM)]] – Used throughout Europe | *[[EFQM_Excellence_Model|European Foundation for Quality Management (EFQM)]] – Used throughout Europe | ||
| − | *Singapore Quality Award Model – Singapore | + | *Singapore [[Quality]] Award [[Model]] – Singapore |
*Japan Quality Award Model – Japan | *Japan Quality Award Model – Japan | ||
*Canadian Business Excellence Model – Canada | *Canadian Business Excellence Model – Canada | ||
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'''Business Excellence Frameworks'''<ref>What are the uses of Business Excellence Framework? [https://www.saiglobal.com/business-improvement/process/framework/excellence.htm SAI Global]</ref><br /> | '''Business Excellence Frameworks'''<ref>What are the uses of Business Excellence Framework? [https://www.saiglobal.com/business-improvement/process/framework/excellence.htm SAI Global]</ref><br /> | ||
| − | {br}A Business Excellence Framework is an integrated leadership and management system that describes the elements essential to sustainable organizational excellence. | + | {br}A Business Excellence Framework is an integrated [[leadership]] and [[management]] [[system]] that describes the elements essential to sustainable organizational excellence. |
An organization can use a Business Excellence Framework to: | An organization can use a Business Excellence Framework to: | ||
*Achieve stronger financial performance | *Achieve stronger financial performance | ||
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*Drive [[Innovation|innovation]] in [[Product|products]] and [[Service|services]] | *Drive [[Innovation|innovation]] in [[Product|products]] and [[Service|services]] | ||
*Focus on [[Customer Service|customer service]] and [[Customer Satisfaction|satisfaction]] | *Focus on [[Customer Service|customer service]] and [[Customer Satisfaction|satisfaction]] | ||
| − | *Increase market penetration and revenue | + | *Increase [[market]] penetration and revenue |
*Create effective [[Business Planning and Control System (BPCS)|business planning processes]] | *Create effective [[Business Planning and Control System (BPCS)|business planning processes]] | ||
*Raise [[Productivity|productivity]] and reduce [[Operating Expenses|operating cost]] | *Raise [[Productivity|productivity]] and reduce [[Operating Expenses|operating cost]] | ||
| − | *Engage teams in the process of improvement and increase staff satisfaction | + | *Engage teams in the [[process]] of improvement and increase staff satisfaction |
*Improve decision-making capabilities and increase [[Change Management|capacity to manage change]]. | *Improve decision-making capabilities and increase [[Change Management|capacity to manage change]]. | ||
*Be recognized for your achievements in excellence and best practice in the Australian Business Excellence Awards. | *Be recognized for your achievements in excellence and best practice in the Australian Business Excellence Awards. | ||
Revision as of 14:12, 6 February 2021
Business Excellence is often described as outstanding practices in managing the organization and achieving results, all based on a set of fundamental concepts or values. These practices have evolved into models for how a world class organization should operate. These models have been developed and continue to evolve through extensive study of the practice and values of the world’s highest performing organizations. Since the 1990s there has been a general decline in award applications. However there has been an increasing trend for organisations to apply these models and integrate the principles and practice with their day-to-day operations thereby achieving the benefits business excellence brings.[1]
Business Excellence Tools[2]
Business Excellence tools are explained in 3 categories. First be clear on the desired outcome for your business and then choose carefully for most value.
- 1. Some tools may be regarded as significant business improvement initiatives, including Lean Management, Six Sigma, Business Process Reengineering (BPR), Balanced Scorecard, Quality Management Systems (QMSs), Total Quality Management (TQM) and Performance Benchmarking. All of these major tools are sub-sets of Business Excellence and so they qualify as Business Excellence tools.
- 2. A few tools are now available to enable Business Excellence as a whole to be implemented readily and quickly by the world’s SMEs.
- 3. Finally, thousands of tools are available to assist employees with specific Business Excellence tasks such as developing a Pareto Chart, Quantifying the Benefit to Cost ratio of an improvement initiative, or Calculating the Standard Deviation of a set of measurements.
Business Excellence Models[3]
Business excellence models are frameworks that when applied within an organisation can help to focus thought and action in a more systematic and structured way that should lead to increased performance. The models are holistic in that they focus upon all areas and dimensions of an organisation, and in particular, factors that drive performance. These models are internationally recognized as both providing a framework to assist the adoption of business excellence principles, and an effective way of measuring how thoroughly this adoption has been incorporated.
Several business excellence models exist world-wide. While variations exist, these models are all remarkably similar. The most common include;
- Baldrige (MBNQA) – Used in over 25 countries including US and NZ
- European Foundation for Quality Management (EFQM) – Used throughout Europe
- Singapore Quality Award Model – Singapore
- Japan Quality Award Model – Japan
- Canadian Business Excellence Model – Canada
- Australian Business Excellence Framework (ABEF) – Australia
Business Excellence Frameworks[4]
{br}A Business Excellence Framework is an integrated leadership and management system that describes the elements essential to sustainable organizational excellence.
An organization can use a Business Excellence Framework to:
- Achieve stronger financial performance
- Create visionary and inspirational leadership
- Drive innovation in products and services
- Focus on customer service and satisfaction
- Increase market penetration and revenue
- Create effective business planning processes
- Raise productivity and reduce operating cost
- Engage teams in the process of improvement and increase staff satisfaction
- Improve decision-making capabilities and increase capacity to manage change.
- Be recognized for your achievements in excellence and best practice in the Australian Business Excellence Awards.
- Demonstrate to key stakeholders that the organization has a structured and systematic approach to improving and achieving best practice and excellence.
source: Ramesh Kandadai
Business Excellence Awards
In general, business excellence models have been developed by national bodies as a basis for award programs. For most of these bodies, the awards themselves are secondary in importance to the wide-spread take up of the concepts of business excellence, which ultimately lead to improved national economic performance. Often awards programs operate at a local, regional and national level to recognize and celebrate the achievement of all levels of organisational maturity. It is through these award programs that an organisation can be assessed and justifiably claim to operate at World Class levels of performance. Awards are usually only given to those organisations that have been assessed as “excellent” through a rigorous awards process using independent teams of evaluators to assess award applicants.It was recently estimated that there are at least 76 countries operating a business excellence award program at a national level.
See Also
EFQM Excellence Model
Baldrige Award
The New St. Gallen Management Model
Strategy
IT Strategy (Information Technology Strategy)
Business IT Alignment
References
- ↑ Definition of Business Excellence businessexcellencetools.com
- ↑ Business Excellence Tools for SMEs MyBusinessExcellence.com
- ↑ Business Excellence Models BusinessExcellenceTools
- ↑ What are the uses of Business Excellence Framework? SAI Global
Further Reading
- Understanding Business Excellence apo-tokyo.org
- Business Excellence-Assess to Excellence Access to Excellence