1 Quality Management – Week 7 l Last Week – Benchmarking »Principle is that you compare your performance with others »See to be up with the best in each aspect of your business »Combination can give quality leadership l Week 7 Focus – The Business Excellence Model »Clear analysis of areas worthy of attention »Key feature of the Model is the requirement to achieve continuous improvement by benchmarking internal performance in comparison to recognised leading organisations (see »Leaves me unconvinced of its quantitative value

2 The Business Excellence Model l Developed by European Foundation for Quality Management (EFQM) – see l Recently reviewed with organizations. Known as EFQM Excellence Model in Europe, Business Excellence Model here l Claimed that staff at all levels can understand and identify with the themes of the model – Leadership, Resources etc. For example: »Leaders develop the mission, vision and values and are role models of a culture of Excellence »are personally involved in ensuring the organisation’s management system is developed, implemented and continuously improved »are involved with customers, partners & representatives of society »motivate, support and recognise the organisation’s people

3 9 Areas of Business Excellence Model

4 Model Structure 9 criteria divided into: l Enablers: What you have to do and how you operate within the organization l Results: What you have been achieving determined by major stakeholders i.e. customers, suppliers, staff, community at large, those who fund l 9 criteria broken down into 32 criterion parts, each supported by ‘good practice’ indicators

5 Benefits of Business Excellence Model Claimed to be: l Coherent and comprehensive l Bring existing initiatives into a single strategy l Avoids the possibility of ‘Initiative Inertia’ when staff become disillusioned by a string of unlinked and short-lived initiatives

6 Underlying Principles I dentify the Results setting out to achieve M odify and develop integrated approaches to achieve results P ut approaches in place by deploying them A ssess and review the effectiveness of the approaches in place C heck and measure the results achieved T ake action to Continuously Improve

7 Another Acronym – RADAR Logic determine the R esults it is aiming for Plan and develop a set of sound A pproaches D eploy the approaches in a systematic way A ssess and R eview the approaches based on monitoring and analysis of results

8 Business Excellence Model Assessment l 1000 points spread over the 9 criteria l The assessment team make consensual decisions based on gathered evidence l Assessment methods can include questionnaires, interviews, workshops etc. l Are there dangers in too many statistical controls in this approach?

9 Measuring with the Model l 300 represents a good company, »quality assurance in place, »starting continuous improvement l 500 represents a very good company, »sustaining improvement, »process orientation l 700 represents an excellent company where »improvement is a way of life, »employees are empowered

10 Government and the model l 138 Executive (‘Next Steps’) agencies now created (70% of all civil servants) l Thrust of policy now is to improve performance and make services more accessible l Two thirds of the agencies are now utilizing the Business Excellence model and/or having performance targets set and published annually

11 Future Government use of Model l Over next 5 years, all central departments will be reviewed to ascertain competitiveness and ensure they are fully modernised. l Aim is for 25% services to be delivered electronically, 100% by 2008 l New desire for accessible, joined-up services l Make services available 24 hours a day l Unnecessary ‘red tape’ to be removed

12 References l EFQM – from the horse’s mouth: l A clearer source that gets you started: l Business Excellence Australia (Government Agency) l Recommended: Attached paper is a critical review taken from