ORGANISATIONAL EXCELLENCE AN APPROACH TO ORGANISATIONAL EXCELLENCE IN HIGHER EDUCATION Celal Seçkin 7 December 2017 ICQH, Sakarya, Turkey

Overview and Objectives 11/8/2018 Introduce the EFQM Excellence Model\ an approach developed in industry Describe its key aspects Comment on its applicability in higher education Provide benefits of using it as a guide for continuous improvement 2 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

European Foundation for Quality Management Founded in 1988 14 Founder Members: Bosch, BT, Bull, Ciba-Geigy, Dassault, Electrolux, Fiat, KLM, Nestlé, Olivetti, Philips, Renault, Sulzer, Volkswagen Number of members around 400 Award Categories Large organisations: 1992 Public sector: 1996 SMEs: 1997 Operational units: 1997 Levels of Excellence: 2001 Revisions of the EFQM Model: 2003, 2010, 2013

What is Excellence? EFQM Definition: Practically, this means: 11/8/2018 EFQM Definition: Excellent organisations achieve and sustain outstanding levels of performance that meet or exceed the expectations of all their stakeholders. Practically, this means: They have a clear understanding of who their stakeholders are and what they expect, today and in the future. They develop strategies to achieve or exceed these expectations, in a balanced way. They achieve excellent results today and they demonstrate that they can sustain this performance in the future. 4

First: Understand Stakeholders 11/8/2018 Governance Students The Organisation Society Staff Partners 5

Then: Meet or Exceed Their Expectations 11/8/2018 Governance Students The Organisation Society Staff Partners 6

The Stakeholder View makes EFQM unique is a challenge establishes the basis for strategic direction is the driving force for improvements

How can expectations of ALL Stakeholders be met or exceeded? 11/8/2018 Identify needs and expectations of stakeholders in the context of other stakeholders Identify potential conflicts of interest Define and agree a Strategy that ensures the best possible balance between all stakeholders Understand that needs and expectations will change over time! Therefore, the balance has to be dynamic. This requires Agility. 8

Excellent organisations...... 11/8/2018 Excellent organisations...... “Achieve and sustain superior levels of performance that meet or exceed the expectations of all their stakeholders.” Which means: “Excellent Results” AND evidence of the sustainability of the performance” Which requires: “Confidence that the causes of these results are understood and managed” 9 9

The EFQM Excellence Model Three components: The Fundamental Concepts The 9 Criteria RADAR

The Fundamental Concepts

Example: Succeeding Through the Talent of People Definition Excellent organisations value their people and create a culture of empowerment for the achievement of both organisational and personal goals. In practice, excellent organisations: Define the required levels skills, competences and people performance Attract, develop and retain talents Align objectives and empower people Ensure a healthy work/life balance Respect and embrace diversity Develop peoples’ skills Encourage people to be ambassadors of the organisation Motivate people to become involved in improvement and innovation Understand the communication needs of their people

Phases on the Road to Excellence 11/8/2018 Fundamental Concepts Sustainable “Excellence” Where are we now? 13 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Phases of Excellence (1) Concept Start Up On the Way Mature Sustaining Outstanding Results All relevant stakeholders are identified, some related performance measures exist Stakeholder needs are assessed in a structured way. The degree to which needs are met is measured and the data is used to some extent Transparent mechanisms exist to balance stakeholder needs and expectations. Stakeholder focused performance measures drive improvement Adding Value for Customers Customer satisfaction is assessed Customer’s needs and expectations are linked to the organisation’s goals and are understood to be business drivers. Loyalty and brand value issues are researched Business drivers of customer satisfaction, needs, loyalty and brand value are understood, measured & actioned Leading with Vision, Inspiration & Integrity Vision and Mission are defined, communicated and generally understood The organisation is aligned to, and believes in, the Vision, Mission and Values Shared Values, role model behaviour and a common purpose are shared throughout the organisation and people are Inspired Managing with Agility Processes to achieve desired results are defined Comparative data and information are used to drive process improvement Process capability is fully understood and used to drive strategy 14

Phases of Excellence (2) Concept Start Up On the Way Mature Succeeding through the Talent of People Approaches are in place to involve people and their talents are recognised The full potential of people is increasingly enabled, to the benefit of the people and the organisation A culture of trust and empowerment exists and the full potential of people is released Harnessing Creativity & Innovation Although new ideas and innovations are sometimes encouraged, the approach to acting on them is ad hoc Innovation is seen as essential to creating distinctive value and is increasingly evident in some aspects of the organisation There is a systematic approach to innovation, throughout the organisation, creating distinctive value for stakeholders Developing Organisational Capability A process exists for selecting and working with partners The relationships with partners are based on shared goals and more effective ways of working The organisation and its key partners are interdependent. A trusting relationship exists. Plans and policies are co-developed on the basis of shared knowledge Creating a Sustainable Future Legal and regulatory requirements are understood and met The organisation’s approaches positively support the aims of economic, social and ecological sustainability Sustainable corporate behaviour is an integral part of the organisation's purpose. Societal expectations are measured and actioned 15

The Journey towards Excellence - The Ingredients 11/8/2018 The Journey towards Excellence - The Ingredients - Building a Process of Systematic Improvement - Improvement Projects Sustainable “Excellence” Q: Where are we now? A: Do a Self- Assessment - Effective Tools & Techniques focused on your priority improvement needs - A Road Map: Plans & Actions Building a Culture of Systematic Improvement - Develop a support process capable of ensuring sustained improvement For VP Bank, the EFQM Model supplied the framework and architecture to glue together the different approaches and structure the change processes, all the while maintaining a clear view of the objectives to be achieved. EFQM helped to serve as an inspiration and energy generator, thus remaining supportive in creating the momentum and perseverance necessary to get the Business Excellence programme up and running in VP Bank VP Bank is now more a quality ingrained organisation, both with regard to structures and people’s mindset and it believes a strong orientation to excellence in all its aspects will guide the company towards the competition for the Swiss ESPRIX in 2011. 16 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

EFQM 9 Criteria

Using the EFQM Excellence Model Possible Benefits: Improving the development of your strategy and business plan. Creating a common language and framework for managing and improving your organisation. Involving people in improvement. Identifying, and facilitating the sharing of, good practices. Integrating improvement activities. Provide a driver and focus for improving results in a sustainable way. 18

The 9 Criteria Convert the Fundamental Concepts into a comprehensive Management Framework Are relevant and applicable to any organisation BUT: Are written in generic language so interpretation of terminology is necessary.

The Four Stakeholders The owners (Key Results, 9) want the mission to be fulfilled believe in the vision, strategy The ones benefiting from the value of your products and/or services (Customer Results, 6) what they say, what you do The ones making it happen (People Results, 7) All others key for success (Society Results, 8) 20

Structure of the Results Criteria 6 Customer Results 6b Performance Indicators 6a Perceptions 7b Performance Indicators 7 People Results 7a Perceptions Criterion parts Criteria 8b Performance Indicators 8 Society Results 8a Perceptions 9 Key Results 9a Strategic Outcomes 9b Performance Indicators 21

From Strategic Level to Operational Level Strategic Assessment Operational Assessment

Structure of the Enabler Criteria 11/8/2018 Structure of the Enabler Criteria 1e 1d 1c 1b 1a Criterion parts 1 Leadership Guidance points 5a 5 Processes, Products & Services 23 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Model dynamics – Time lags 8-Nov-18 ACTION ACHIEVEMENT Performance Indicators 6b, 7b, 8b, 9b Strategic Outcomes & Perceptions 6a, 7a, 8a, 9a Enablers 24 24

EFQM Model and Management Tools STAFF SATISFACTION SURVEY KPIs OF HR MANAGEMENT STUDENT SATISFACTION SURVEY PERFORMANCE RELATED TO STUDENTS HR MANAGEMENT TEAMWORK EMPOWERMENT LEARNING PERF. MAN. SYST. POLICIES, STRATEGIES MISSION, VISION, VALUES BSC, KPIs, CSFs MAN. BY OBJECTIVES PROCESS MANAGEMENT CURRICULUM BENCHMARKING ACCREDITATIONS PEOPLE PEOPLE RESULTS PROCESSES, PRODUCTS AND SERVICES BUSINESS RESULTS LEADERSHIP STRATEGY CUSTOMER RESULTS SOCIETY RESULTS PARTNERSHIPS AND RESOURCES BUDGET MANAGEMENT PARTNERSHIPS, SUPPLY CHAIN TPM, 5S, LABORATORY MANAGEMENT MATERIAL MANAGEMENT ACCREDITATIONS INFORMATION AND TECHNOLOGY MAN. REPUTATION OF THE UNIVERSITY ENERGY MANAGEMENT VISION, MISSION, VALUES CULTURE ROLE MODEL LEADERSHIP 360 DEGREE FEEDBACK CHANGE PROGRMMES VISION FINANCIAL and ACADEMIC RESULTS KPIs, BSC, CSFs RANKING BUDGET PERFORMANCE

The Model – So What? Excellence Framework Excellence Measurement

The Fundamental Concepts Assessment Framework Assessment Process The Organisation RADAR The Fundamental Concepts The Criteria

The RADAR Concept Develop the APPROACHES that will deliver the improvement Define the RESULTS you want to achieve ASSESS the impact and REFINE to ensure you achieve the desired result. DEPLOY the improvement plan

RADAR - Results Scope Relevance & Usability Integrity Segmentation Performance Trends Targets Comparisons Confidence

RADAR - Enablers Enablers Approach Sound Integrated Deployment Implemented Structured Assessment & Refinement Measurement Learning & Creativity Improvement & Innovation

Overall Score Criteria Weightings Each criterion part is scored out of 100% For the Enabler Criteria, 1-5, the overall Criterion Score (%) is the average of criterion Part scores 10% 10% 10% 15% 50% 10% 10% 10% 15% 15% 10% 10%

Self-Assessment Where Sustainable are we “Excellence” now? 32 11/8/2018 Sustainable “Excellence” Where are we now? 32 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Self-Assessment 11/8/2018 A comprehensive, systematic and regular review by the organisation of its activities and results referenced against a Model of Excellence Allows an organisation to identify clearly its strengths and areas in which improvements can be made and intergate planned improvement actions that are then monitored for progress N.B.  The ‘Strengths’ and ‘Areas for Improvement’ as identified during an Assessment are Statements, reflecting a status NOT solutions or recommendations 33 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

The Self-Assessment Process 11/8/2018 The Self-Assessment Process Step 1 Develop & retain commit-ment Step 2 Develop & deploy communication strategy for steps 3-8 Step 3 Step 4 Step 5 Step 6 Step 7 Select and train people directly involved in the process Plan the Self-Assessment process Conduct Self-Assessment Consider outcomes & prioritise them Establish & implement action plans Step 8 Monitor Progress & Review S-A Process 34 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Prioritisation Tools &Techniques 11/8/2018 Sustainable “Excellence” Where are we now? Prioritisation Tools & Techniques 35 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Prioritising the Outputs of Self-Assessment 11/8/2018 A limited number of “areas for action” should be taken forward from the Self-Assessment. This may include action to build on Strengths This could include, say, 3-4 significant Improvement Projects The Improvement Projects could be a mix of “benefit driven” and “capability building” projects Whilst there are a number of “tools” to help prioritisation; “personal choice” is often a key factor 36 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Examples of Prioritisation “Tools” 11/8/2018 STRENGTHS & AFIs SCORE? KEY THEMES THE BUSINESS IMPERATIVES PARETO 80:20 IMPROVE vs. MAINTAIN vs. REDUCE IMPACT vs. EASE 37 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Impact vs. Ease 11/8/2018 Two factors considered – what will be the impact of this change and how easy or difficult will it be to make this change Analysis, based on these questions, provides a calculation to help the selection and prioritisation process High Impact Easy Hard Low Impact 38 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Improve vs. Maintain vs. Reduce 11/8/2018 Urgent Improvement action required Maintain high performance Improve to minimum Quality levels Potential to reduce investment Strategically important Strategically not important Areas for Improvement Strengths 39 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Managing Improvement Projects 11/8/2018 Sustainable “Excellence” Where are we now? Improvement Projects Teams Tools & Techniques 40 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Project Success Criteria 11/8/2018 Contributes directly to overall improvement aims Delivers business benefit Helps to embed a Continual Improvement culture Well planned Project Management methods Tackles the root cause A Team based approach High involvement of people at all levels Optimum use of people’s time Generates enthusiasm and commitment amongst team members and others Self-sustaining – not in need of constant attention 41 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

An “Excellence” Culture 11/8/2018 Includes, visibly high levels of: Job and Improvement Competency Availability and appropriate use of relevant data Knowledge of tools and methods, and when to use them A very supportive “climate” Time and patience Effective change management skills Financial and other resources 42 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Phases of Excellence (1) 11/8/2018 Concept Start Up On the Way Mature Sustaining Outstanding Results All relevant stakeholders are identified, some related performance measures exist Stakeholder needs are assessed in a structured way. The degree to which needs are met is measured and the data is used to some extent Transparent mechanisms exist to balance stakeholder needs and expectations. Stakeholder focused performance measures drive improvement Adding Value for Customers Customer satisfaction is assessed Customer’s needs and expectations are linked to the organisation’s goals and are understood to be business drivers. Loyalty and brand value issues are researched Business drivers of customer satisfaction, needs, loyalty and brand value are understood, measured & actioned Leading with Vision, Inspiration & Integrity Vision and Mission are defined, communicated and generally understood The organisation is aligned to, and believes in, the Vision and Mission Shared Values, role model behaviour and a common purpose are shared throughout the organisation and people are inspired Managing with Agility Processes to achieve desired results are defined Comparative data and information are used to drive process improvement Process capability is fully understood and used to drive performance improvements 43 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Phases of Excellence (2) 11/8/2018 Concept Start Up On the Way Mature Succeeding through the Talent of People Approaches are in place to involve people and their talents are recognised The full potential of people is increasingly enabled, to the benefit of the people and the organisation A culture of trust and empowerment exists and the full potential of people is released Harnessing Creativity & Innovation Although new ideas and innovations are sometimes encouraged, the approach to acting on them is ad hoc Innovation is seen as essential to creating distinctive value and is increasingly evident in some aspects of the organisation There is a systematic approach to innovation, throughout the organisation, creating distinctive value for stakeholders Developing Organisational Capability A process exists for selecting and working with partners The relationships with partners are based on shared goals and more effective ways of working The organisation and its key partners are interdependent. A trusting relationship exists. Plans and policies are co-developed on the basis of shared knowledge Creating a Sustainable Future Legal and regulatory requirements are understood and met The organisation’s approaches positively support the aims of economic, social and ecological sustainability Sustainable corporate behaviour is an integral part of the organisation's purpose. Societal expectations are measured and actioned. 44 How to Start the Journey towards Excellence_v10.0 Draft 1_© EFQM 2009

Systematic Continual Improvement 11/8/2018 Analysis & Prioritisation (By the right people) Improvement Action Feedback Survey Data Performance (e.g. Balanced Scorecard) Self-Assessment External Learning Staff@s Ideas & Creativity 45 45

Characteristics of World-class Organisations Fire fighting at minimum levels A common understanding and shared vision across all employees A good and continuous change management Loyal employees and other stakeholders A healthy bottom up communication Effective use of information and data Innovation as part of daily life Proud and enthusiasm supporting continual improvement A culture with differentiation against other organisations Sustained high performance in areas related to all stakeholders 46

Journey to Excellence Plans, infrastructure and methods Approach and Attitude Plans, infrastructure and methods Belief in change and improvement in every thing An exact customer focus Focus on changing the status quo Strong and extended decision making capability Solutions directly to root cause Desire for learning and enthusiasm Goals and objectives defined for all stakeholders Management by processes Working with plans KPIs and measurement Improvement projects Problem solving tools and techniques Powerful communication tools Benchmarking Continuous review mechanisms 47

Journey to Excellence C B A Characteristics of those at level B and C Integrity Effective use of measurement External benchmarking, learning and continuous improvement Outstanding performance results Organisational Performance C B Characteristics of those at level A Clear vision Deployment of key approaches Most of solutions done as fire fighting A Time 48

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