1. EFQM mediocrity model

    April 28, 2014 by BPIR.com Limited

     

    There are a lot of articles and books about success stories of excellent organisation. A good idea for an average organisation is to watch the high performers and try to learn from them, it is a very effective method if done right.

    To pursue business excellence, organisations need to apply a number of principles in order to be successful and achieve an outstanding level of performance. Unfortunately, for several reasons not all organisations can do that.

    Matt Fisher the COO at EFQM, came up with a brilliant idea, instead of showing organisations what they have to do to achieve excellence, he demonstrated some common characteristics of an average organisation, the things organisations need to avoid if they truly want to achieve excellent performance.


    After 25 years of promoting excellence in Europe, we’ve found that this aspiration is beyond the means of most organisations. Excellence is simply too hard to achieve. That is why we have developed the EFQM Mediocrity Model. There are many definitions, even words, for “mediocrity” but our definition is:

    Mediocre organisations strive to keep their stakeholders quiet by doing the minimum that is expected of them, with as little additional effort as possible. Anything for an easy life.

    Regardless of size, sector or maturity, organisations need to establish an appropriate management framework. If the organisation is seeking to achieve mediocrity, this needs to be simple to understand, look robust but actually does not require a lot of effort. The Fundamental Concepts of Mediocrity have been designed to help ensure this goal is achieved.

    TOLERATING CUSTOMERS
    Mediocre organisations recognise that customers are a “necessary evil” and do their best to minimise complaints. Complaints mean more work and no one likes that.

    MAINTAINING ORGANISATIONAL ISOLATION
    Mediocre organisations recognise that most change is driven from outside the organisation, so the less contact you have with others, the better.

    LACKING VISION, INSPIRATION AND INTEGRITY
    Leaders in mediocre organisations have little idea of where they are going or what they are trying to achieve but ensure they know who to blame when things go wrong.

    SUSTAINING AVERAGE PERFORMANCE
    Mediocre organisations achieve the minimum results that they can get away with, without getting shouted at by their stakeholders.

    MANAGING THROUGH BUREAUCRACY
    Mediocre organisations have developed highly complex processes to minimise the chance of anything changing, ever.

    HIRING AND FIRING PEOPLE
    People in mediocre organisations should consider themselves lucky that they have a job and not expect too much in the way of training, development or opportunities to progress.

    SUPPRESSING CREATIVITY & INNOVATION
    Mediocre Organisations recognise that new ideas mean extra work. Why challenge the status quo? The adage “if it ain’t broke, don’t fix it” has proven true time and time again.

    SOMETHING ABOUT SUSTAINABILITY
    Mediocre organisations recognise that sustainability is a “hot topic” and they really should say something about it, although they’re not always sure what. Never mind, some nice pictures of wind turbines and people planting trees will make it look like they’re helping to save the planet.


  2. How is business excellence promoted in your country?

    March 5, 2014 by BPIR.com Limited

    Adam Stoehr, MBA
    Excellence Canada
    Vice President, Education

    Who said business excellence is not fun? Canada continues to lead the way in promoting business excellence and improvement in a fun way to get the message across. Last year Excellence Canada released a remix rap song called “That’s how we roll!”, this year Excellence Canada made another clip to promote business excellence.
    Check out this song written and sung by: Adam Stoehr, Vice President, Education, Excellence Canada. For music aficionados the song is a remix of Blurred Lines by Robin Thicke with Pharrell and T.I.


  3. Boiling the ocean: How a manufacturer leveraged the criteria to improve its supply chain

    February 8, 2014 by nick.halley

    Originally Posted by Dawn Marie Bailey on Blogrige: The Official Baldrige blog.

    How to Boil the Ocean

    In 2012, Lockheed Martin Missiles and Fire Control (MFC) participated in the Baldrige Executive Fellows Program. As part of the program, John Varley and the other Fellows were given homework: identify a significant challenge in their organizations and use the principles of the Baldrige Criteria for Performance Excellence to achieve significant improvement.

    Varley, vice president for Quality and Mission Success–at the 2012 Baldrige Award recipient that designs, develops, manufactures, and supports advanced combat, missile, rocket, and sensor systems for the U.S. and foreign military–knew that MFC’s most significant area of improvement was the supply chain. Over the past year, the economy had hit the U.S. Department of Defense (DOD) and its contractors hard, and as spending became tighter, the smaller subcontractors in the industry–those who support the large contractors–were hit the hardest.

    According to Steven Sessions, supplier quality director and deputy, Quality Mission and Success, MFC has a multitier supply chain, with suppliers who have subcontractors and so forth, so there are several tiers of suppliers that support MFC. Sessions says when the economy began to squeeze the lower-level, smaller contractors, the tendency was not to lay off the person who created the parts but the person who was in charge of checking the quality of the parts. MFC has contractual relationships with the first line of its supply chain, but how do you assess the risk with lower-level tiers that farm out parts of their work?

    Sessions said that MFC was already working on strategies to address supply chain issues when his colleague came back from a Baldrige Executive Fellows session with the idea for a project that “was pretty startling to colleagues.” Varley’s project focused on how to improve the entire DOD supply chain.

    “[Such a project] was closer to boiling the ocean,” Sessions says. “We have 2,000+ suppliers, and now we would be taking on a project to help companies that are competitors improve their own organizations.”

    “John’s premise was that we either all improve together or all decline together because we are so integrated,” Sessions says. “It was an interesting insight. We tried to figure out how to use the Malcolm Baldrige [Criteria] model to open up doors to companies that five years ago you would never have thought would open their doors to share processes, tools, and techniques on how to improve the DOD supply chain.”

    Sessions added that years ago, the top DOD suppliers like Lockheed Martin were very distinct entities, but now they often act as partners in some programs, competitors in others, and suppliers in still others.

    Based on the Baldrige Criteria, a strategy called Senior Leadership Engagement and Benchmarking was developed by MFC, and MFC’s senior leaders set out to meet with the senior leaders of the other top DOC contractors, getting their commitment around the strategy that we all go up or down together.

    The sharing-ideas strategy really took off, with more than 18 major DOD suppliers and others standing in line to take part, Sessions says.

    “The Malcolm Baldrige Award has made the whole effort take off to the point now where we’re having to leverage seasoned people with more people in the organization in order to keep up with requests,” Sessions says. “The interesting part is that we started out thinking that we are going to be . . . helping [other DOD contractors] improve, and we’ve been able to do that. But out of it, we gained a lot of insight into areas in which we can improve our journey as well. What started out as boiling the ocean, materialized into a real partnership and relationship with some significant companies that are coming up with ideas on how to improve the supply chain that any one of us by ourselves probably would not have been able to achieve.”

    Sessions says that MFC is working on other strategies to improve the overall DOD supply chain in the long term; for example, staff members are working on how to prevent counterfeit parts from getting into its systems. In close alignment with its customer, MFC is teaming with others in the industry to solve this complex, difficult problem.

    Benchmarking Against the Best

    “The Malcolm Baldrige model is a very structured approach to improving your business,” Sessions says, but MFC didn’t turn to the Baldrige Criteria because it needed a framework for improvement. MFC had already won a host of awards, including awards from the Baldrige-based Sterling Award in Florida and Texas Quality Award.

    MFC decided that we wanted to get a good, solid, independent benchmark of where MFC was relevant to its performance, Session says. As they decided whom and how to benchmark, they brought forward the ”world-class” Baldrige Criteria. “We had several ideas of how to benchmark,” he says. “But we wanted to be benchmarked by the best of the best. Our focus was to [apply for the Baldrige Award and] get a site visit and get the outcome of where we stood and where we could improve some more.”

    Sessions says, “As we began to understand the [Baldrige Criteria], we found that it was very similar to our own vision for improvement that we had been using over the past 10 years. . . . The reason people model themselves around the Malcolm Baldrige model is to get that kind of proven, world-class performance. . . . We’ve seen dramatic achievements across the business because our senior leaders had the right premises to line up with the Malcolm Baldrige model.”

    Frank McManus, senior quality leader, MFC, says that when MFC chose to begin using the Baldrige Criteria, “Our leaders wanted us to get not so much the award but the feedback. Having the site visit, with examiners coming to various facilities [and those examiners] representing many different industries and experiences and getting that kind of view [became a] vantage point of how we’re operating and continuously improving.”

    “The examiners were the carrot,” he added; receiving their feedback was incredibly valuable.

    The Right Metrics and Why the Baldrige Criteria

    Sessions said the MFC business model was structured very similarly to the Baldrige Criteria–very focused on the customer and aligned with leadership and every aspect of the organization. A Strategic Enterprise Leadership Counsel reviews the MFC business model to ensure that it aligns with both customer and business needs.

    Key to the MFC business model is having the right metrics to drive performance that align with customers and are tied to every level of the workforce. Similarly, Session says, the Malcolm Baldrige model focuses on customers, with each operational focus tied into a metric system that is aligned with strategic planning and customer needs.

    “That’s the beauty of [such a model],” says Session. “It’s very easy for our leadership team to see where areas for improvement are needed because of the instrumentation we have from the smallest of teams to 16 sites, and it rolls up from all of those organizations to the top. . . . We are very process focused with data-driven decisions, and our customer is the primary focus area. We know if we get it right for the customer, our business will follow. The Malcolm Baldrige model follows all these same tenets–always focusing on the customer with robust processes and data-driven decisions. It was a natural fit.”

    For other organizations, Sessions says the value of the Baldrige Criteria is the structured framework and focus on the customer. “Sometimes companies get too inwardly focused and end up losing sight of [what the customer really needs]. Comparing yourself with other industries and what’s considered the best of the best brings insights.”

    Sessions said that when MFC started with the Baldrige Criteria, “We literally had to flip all of our metrics upside down.” Its performance had gotten so good that it was focusing on just the 1% of parts that were coming in bad, for example. To complete its application for theMalcolm Baldrige National Quality Award, MFC had to flip its model to show the good parts of its supply chain, and this led to interesting observations.

    “When you start to benchmark yourself, it makes you look at metrics differently,” Sessions says. “The whole organization was pretty astonished when it started to pull together metrics in one place [for its Baldrige Award application]. It makes you look back and forward in how you have been performing on your journey and where it would take you. That’s the value [of writing a Baldrige Award application]–that reflection and insight on where we go next.”


  4. Centre for Organisational Excellence Research (COER) Yearly Report 2013

    February 7, 2014 by nick.halley

    The BPIR.com is part of the Centre for Organisational Excellence Research (COER) group.  In this blog we provide information on COER and its activities past and present.

    At the Centre for Organisational Excellence Research (COER) we hope to build on our success in 2013 (read COER’s 2013 report) and already have many exciting events and projects planned.

    The Report outlines COER’s work in:

    1.         Publications

    2.         Research

    3.         Doctorate Students

    4.         Journals

    5.         Workshops

    6.         Conferences

    7.         Best Practice Studies

    8.         Consultancy

    9.         On-line Resources

    10.        Partners

    11.        Global Benchmarking Network

    For 2014 dates will be announced soon for:

    • 3rd International Best Practice Competition (location to be announced).
    • Global Benchmarking Network’s International Benchmarking Conference, Florida, United States (probably early December).

    Forthcoming COER events are:

    Benchmarking for Excellence Workshop, 13/14 March 2014, Singapore

    Benchmarking for Excellence Workshop, 15/16 April 2014, Subang, Malaysia

    Benchmarking for Excellence Workshop, 13/14 May 2014, Christchurch, New Zealand

    Tentative dates have also been set for 2-5 June, Mumbai, India and 26/27 March, Dubai, UAE.

     

    Is your organization the best it can be? Become trained in the TRADE Best Practice Benchmarking methodology to enable you to identify, implement and master best practices. At the workshop participants start a benchmarking project in an area of importance to their organisation. Projects typically aim to achieve breakthrough improvements in productivity, employee morale, customer satisfaction, cycle time and innovation.   Participants are certified at Level 1 – Trained in Benchmarking. Register for a Workshop.

     


    Keep up to date with all events and developments in the best practice and business excellence field and subscribe to our monthly BPIR Best Practices Newsletter – it is free… sign up here.


     

    Other events to take note of in 2014:

    I hope we can be of assistance and/or work together in 2014!!



  5. 2013 Business excellence awards around the world

    December 4, 2013 by BPIR.com Limited

     

    In the pursuit for excellence, 2013 was a very challenging year for many organisations around the world. Business excellence awards are the most prestigious awards any organisation can achieve; it recognises organisations which have demonstrated excellence in all areas of operation. Below are some of the business excellence award winners of 2013, for a list of other business award winners join BPIR today (we have a database of 13,000 award winners stretching back over 8 years) and learn how they achieved their success.

    Baldrige National Quality Award
    Pewaukee School District
    Sutter Davis Hospital
    Baylor Regional Medical Center at Plano

    EFQM Excellence Award
    Alpenresort Schwarz – EFQM Excellence Awardand Prize Winner
    BMW Regensburg
    GHA Glasgow Housing Association
    Nilufer Municipality
    St Mary’s College
    Stavropol Agrarian University
    VAMED – KMB
    WDH Wakefield and District Housing
    GC Europe
    Sanitas

    Singapore Quality Award
    Building and Construction Authority
    Nanyang Girls’ High School
    Tiong Seng Contractors
    Systems on Silicon Manufacturing Company
    Qian Hu Corporation
    Biosensors Interventional Technologies

    New Zealand Business Excellence Foundation Award
    Spectrum Care Trust – GOLD
    Western Bay of Plenty District Council – GOLD
    Waipa District Council – SILVER
    Bay of Plenty District Health Board – BRONZE