1. A New Model for Excellence in South Africa

    August 14, 2014 by

    Originally Posted by Christine Schaefer on Blogrige, the official Baldrige blog

    On August 1, the South African company Business Assessment Services (BAS)—acting on behalf of the new South African Excellence Foundation (SAEF)—publicly launched the latest South African Excellence Model (SAEMXIII™). The nonprofit SAEF will use the model as a basis for business assessment and development services for organizations in South Africa.

    The Baldrige Program has long participated in a global excellence council, and the Baldrige Award and Criteria for Performance Excellence have long been emulated in countries around the world. So it is not surprising that BAS CEO Ed van den Heever gives partial credit to both the Baldrige Program and the Fundação Nacional da Qualidade (FNQ) of Brazil for inspiring the new SAEM.

    I recently asked, van den Heever—developer of the SAEMXIII and co-author of the previous SAEM1997 standards model—to share more information about the history of organizational excellence initiatives in his country. Following are his responses.

    Tell us about your background and experience with the Baldrige Award and national program?

    I have great admiration for the leader role of the Malcolm Baldrige National Quality Award (MBNQA) program. I also have fond memories of (retired Baldrige program director) Dr. Harry Hertz—a great man! My support for MBNQA goes back to the mid-1990s when I attended a Baldrige examiner course in South Africa conducted by Dr. Richard Chua of Juran Institute Incorporated (JII).

    Ed van den Heever photo
    Ed van den Heever

    A year earlier, the Council for Scientific Industrial Research (CSIR) of South Africa had opted to go the Baldrige Award route. I had the great fortune, coming from the private sector, to join as an executive facilitator of CSIR Total Quality Management for four years. That role included exposing the CSIR Management Team to Baldrige examiner training. After 1995 examiner training in South Africa was presented by Dr. Chua of JII, I conducted the remainder of the Baldrige examiner sessions in 1996 and 1997. As lead examiner, I facilitated Baldrige Award-based assessments in 10 CSIR business units at the same time and publishing the consolidated findings.

    In 1996, the CSIR and the South Africa Quality Institute (SAQI) agreed to launch a South African Criteria model (SAEM1997) and a foundation. I was appointed as the inaugural CEO of the former South African Excellence Foundation, which was formally launched in August 1997 as a not-for-profit company with ten sponsors.

    How is the SAEMXIII model similar to the Baldrige Criteria for Performance Excellence?

    Besides the SAEM1997, the Baldrige Criteria revisions of 2006, 2008, and 2010 had a direct impact on the road ahead [toward the SAEMXIII]. However, involvement with BHPBilliton in Australia in 2008 and exposure to the FNQ Model in 2013 greatly impacted the final outcome.

    Among similarities, the SAEMXIII has merged the SAEM1997 Results Criteria (7–11) into a single criterion 7 (similar to the Baldrige Criteria and FNQ model). Also, similar to the Baldrige Criteria process evaluation factors of ADLI (Approach, Deployment, Learning, Integration), SAEMXIII uses PDCA (Plan, Do, Check, Act) elements for scoring of processes. And similar to the Baldrige Criteria results evaluation factors of LeTCI (Levels, Trends, Comparisons, and Integration), SAEMXIII uses RTCK (Results/Targets/Comparative/Key performance indicator match) elements for scoring of results.

    The Baldrige Criteria largely dictated the selection and qualification of Criteria guidelines, key characteristics, and Criteria description. Globally the Baldrige Performance Excellence Program led the way in this area.

    How have the Baldrige Criteria for Performance Excellence and the European Foundation for Quality Management (EFQM) helped inspire the development or updates to the SAEM?

    For the SAEM1997 (11 Criteria model), the EFQM (1997), consisting of nine Criteria, formed the basic framework. The EFQM Model had gaps that needed focus for application in a developing country such as South Africa. Revisions included adding Baldrige Criteria-based categories on customer focus and supplier focus.

    The SAEM1997 was adapted for application in large (Level 1), medium (Level 2), and small (Level 3) companies or organizations. Organizations could opt for Level 1, Level 2, or Level 3, using 100 percent, 50 percent, or 25 percent of the Criteria content, respectively. The related South African Excellence Foundation (SAEF) Awards process was accordingly structured.

    A classic case is that Mercedes-Benz SA opted to start at Level 3, then moved to Level 2 (in-house only) in final preparation for their Level 1 Application—culminating in winning the 2000 SAEF Award.

    A downfall of SAEM1997 is that it was never updated! Although the model was classic by U.S. and European standards, South African companies could not reach the expected heights at the time. Unfortunately, the original SAEF last issued awards in 2002 and was liquidated by creditors in 2004.

    Tell us about the BAS’s services and the kinds of organizations benefitting from those offerings in your country today?

    With a specialty in operational excellence, BAS offers an SAEMXIII-based toolkit and guides that were developed to facilitate the Management System of Operational Excellence (MSOE), which is concordant with ISO 9004:2010. The materials offered include training materials and case studies on governance excellence and operational excellence, as well as framework, criteria, and assessment guidelines. The toolkit fits the private sector (large/medium/small businesses) and the public sector (national/provincial/local government).

    Other offerings include cost of quality training, training based on the MSOE Toolkit, and SAEMXII Assessor Training.

    Users include the Eastern Cape Provincial Government (nine departments), the Department of Transport (Eastern Cape Government, winner of the 2009 Public Sector Innovation Award), SA Revenue Services (call centers), Tsebo Cleaning Services (South Africa) Ltd., Arwyp Private Hospital Ltd., and Border Cricket (South Africa) East London.

    What’s next for excellence in South Africa?

    This year we will finalize the launch of the SAEMXIII. In 2014 we also plan to find a not-for-profit company to house the intellectual property. And we plan to facilitate funding for SAEF outside governmental control (similar to the Baldrige Foundation) and promote the new SAEF on November 13, 2014, World Quality Day. We also plan to rejoin the Global Excellence Model Council. In 2015, we plan to relaunch the South African Excellence Awards!

  2. Governance – Aspiring to Greatness

    August 6, 2014 by

    Boards that aspire to greatness establish a culture of integrity, built on a strong ethical foundation and are rigorous in their endeavour to add value.

    Great Boards

    Create a healthy robust decision-making culture; one that creates a sense of loyalty among various stakeholders. Incorporating in their governance framework is a comprehensive and forward-looking risk oversight philosophy which includes developing a risk culture, an agreed appetite for risk, maturity assessments as well as aligning risk, strategy and disclosure activities.

    Board composition is built not only around size and diversity of talent but designed with the organisation’s sustainable future in mind. Succession planning is an agenda item and boards conduct director assessments regularly. Similarly they encourage board members to continually up-skill.

    Great boards demand a view of the bigger picture, make sure they understand what is the real problem and avoid focussing on ‘silo’ solutions.

    Great boards look forward rather than just responding to changing conditions, analyse what drives values, stress-test alternative strategies and allocate/reallocate resources accordingly.

    Great boards aspire to create a sound foundation by deliberating about their processes; for example, seeking to remove any bias from the decision-making processes.

    Great boards have directors who are all over the numbers and data’ carefully monitoring the financial situation and understanding the potential ramifications of them. Compliance is a non-negotiable item.

    Great boards have a Chair chosen on his/her ability not popularity.

    Great boards work collaboratively with managementto create direction and goals that are clear to all and are measurable.  Everything that occurs within the organisation is linked to the desired outcome.

    Read other articles to help you govern better.

    How do you know when you don’t have effective governance?

    Read about the danger signs and call Bev or Nick for a confidential consultation on how to improve your board.

    Dr Bev Edlin and Nick Dangerfield are the executive directors of Boardroom360.

    Being a director brings with it responsibilities and accountabilities. Bev and Nick believe more needs to be made of these imperatives to not only improve governance but to protect the rights and entitlements of shareholders.

    Contact Bev on 027 618 4787 orbev@boardroom360.com
    and Nick on 021 273 6476 ornick@boardroom360.com

  3. EFQM Award 2014

    August 5, 2014 by

    The EFQM Excellence Award 2014 Nominees

    This year’s Nominees are (listed in alphabetical order):

    BMW AG Werk Regensburg

    Plant Regensburg has been manufacturing vehicles for BMW AG since 1986. In 2013, 295,417 vehicles (daily production output: 1,100 units) made in Regensburg were delivered to customers all over the world. So Plant Regensburg is the third largest plant in the BMW Group production network. Products include BMW series 1, series 3 (Sedan), series 4 (convertible), M3 Sedan, M4 convertible, Z4.

    BOSCH Tecnologie Diesel e Sistemi Frenanti S.p.A.

    BarP is an operational unit of the Diesel Systems Division which is part of the Automotive Technology Business Sector of the Bosch Group. BarP produces Common Rail diesel fuel injection pumps. With nearly 1,700 associates and more than 240 million Euros sales, it is the largest Bosch entity in Italy and the biggest automotive plant in Apulia.

    Infineon Technologies Austria AG IFAT

    Infineon Technologies Austria is Infineon`s globally leading competence unit for power semiconductors. It draws on synergies in R&D expertise, manufacturing excellence and global business responsibility to drive the company`s success worldwide.

    One Vision Housing

    One Vision Housing is a Registered Provider of Social Housing with more than 11,500 homes across Sefton, Merseyside. It was formed in October 2006, following a successful stock transfer from Sefton Council and are a  not for profit organisation, regulated by the Homes and Communities Agency. One Vision Housing is part of the Sovini Group which was formed in December 2011 and also includes Pine Court Housing Association, Sovini Property Services and Teroma (trade supplies).

    Pompes Grundfos SAS

    Pompes GRUNDFOS SAS France (internally designated as PGF) is one of Grundfos fifteen production companies. Established in 1972 and located in Longeville-lès-Saint-Avold in Moselle, PGF is the result of the commitment to internationalisation and development of the Group outside Denmark. The key sectors of PGF are the customisation, manufacturing and distribution of circulators and pump systems.

    REGTSA – Recaudacion y Gestion Tributaria de Salamanca

    REGTSA is an Autonomous Body attached to the Province Council (Diputación Provincial) of Salamanca (Spain), established in 1992 with the purpose of providing tax management and collection services to the municipalities in the province. It started up on 1st January 1993, with the secondment of the staff of the former Provincial Tax Collection Service.

    Siemens Motion Control, Congleton

    Siemens Congleton, based in Cheshire UK, is an operational manufacturing unit within the Drive Technologies division (DT) which is a part of the Industry sector. DT comprises several business units with 45 factories worldwide. Siemens Congleton is a contract manufacturer for the Motion Control business unit (MC) within DT, supplying over 1.2 million electrical devices, including 500,000 variable speed drives (known as Inverters), to Siemens MC and is 1 of 9 global MC manufacturing facilities.

    The Cedar Foundation

    The Cedar Foundation (Cedar) is a leading voluntary organisation in Northern Ireland focusing on inclusion for people with disabilities. Cedar is a service provider and their purpose is summarised in their Vision and Mission statements. The Vision is a society accessible to all. The Mission is to provide exceptional services that support children and adults with disabilities to participate in all aspects of community life.

    Join us at the EFQM Excellence Award ceremony on the 20th of October in the Autoworld museum, Brussels. Click here for more information on the EFQM Forum and the Celebration Dinner.

  4. Learn Using the Latest Baldrige Education Case Study

    July 22, 2014 by

    The Baldrige Program is often asked for examples of how organizations use the Baldrige Criteria for Performance Excellence to improve—whether the organization wants to improve just one area, a certain process and its associated results, or the entire organization from end-to-end.

    The 2014 Baldrige Case Study: Buckeye City Schools (PDF) shows examples (both best practices and early approaches) of how a fictitious K-12 school system used the Baldrige Education Criteria to focus on its strategic challenges, improve student learning and other results, and leverage its core competencies and advantages.

    Written by a team of volunteer Baldrige examiners, Buckeye City Schools is a preschool and kindergarten through grade 12 public education school system located in Ohio. The school system was designed to show an organization that was mature enough to compete for the Malcolm Baldrige National Quality Award, with processes that resulted in excellent educational outcomes but also with prudent management of financial and other resources.

    The school system is challenged by uncertainty around state funding, the number of students choosing alternative educational offerings, cost containment and efficient use of resources, and competition for students and workforce members. At the same time, the school system is cultivating a culture of innovation, focusing on student achievement and learning, benchmarking from within and outside the education sector, embracing social media, and collaborating with other school districts to run an online charter school in response to voice-of-the-customer data.

    You can learn how Buckeye City Schools scored in an assessment against the 2013–2014 Education Criteria:

    For superintendents and other educators who want to get started with the Education Criteria, in addition to best practices and other examples found in this case study, resources are available on Baldrige in education and how to get started with the Criteria.

    Each year, the Baldrige Program produces a new case study that describes how a fictitious organization is fulfilling the requirements of the Criteria. The case studies rotate sectors from year to year in order to show examples for a variety of organizations using the three versions of the Criteria: Business/Nonprofit, Health Care, and Education.

    Baldrige case studies have at least three purposes. First, given that actual Baldrige Award applications remain confidential until award-winning organizations approve selected content for public sharing, the case studies are used to train examiners for the Baldrige Program’s annual award process. Second, case studies serve as sample applications for organizations interested in applying for a Baldrige Award. In addition, the case studies show organizations in every sector how they might use the Criteria questions to assess and improve their performance, even if they are not interested in applying for a Baldrige Award.

    Additional Baldrige case studies are available in an online archive of publications.

    Originally posted at http://www.nist.gov/baldrige/buckeye.cfm

  5. Book release: Building Anti-Fragile Organisations

    July 5, 2014 by BPIR.com Limited

    Anti fragile 2

    Anti fragile

    I am delighted to announce that my book, ‘Building Anti-Fragile Organisations; Risk, Opportunity and Governance in a Turbulent World’ is now on sale!

    The recent world crises should have taught us one thing; we can no longer just focus on organisational efficiency and effectiveness. For them to survive and flourish, we should design and manage our organisations to become stronger from being stressed, not just be robust against stress, since there is no level of robustness that is `safe enough`. This property, borrowed from biology, has been labelled by Nasem Taleb as Anti-Fragility. As well as being a new way of thinking about mitigating risk, Anti-Fragility also encompasses flexibility, agility and the exploitation of opportunities.

    Professor Bendell explains how applying this concept to the development and management of organisations, services and products, allows us to identify the characteristics of these that will not only mitigate against the realisation of hazards, but will enable growth in protection, strength and Anti-Fragility over time.

    This book links theory and practice through the discussion of specific private and public sector cases. It will be of value to practising managers and particularly to organisational change, quality management, organisational excellence, risk and finance specialists, as well as to business students.

    I hope you enjoy the book and would love to hear what you think…
    Professor Tony Bendell

    The ISBN number for the printed book is 978-1-4724-1388-8, the e-book is 978-1-4724-1389-5 and 978-1-4724-1390-1 for the Kindle version. The book is a hardback of 248 pages and priced at £65.00 (UK and Rest of the World) or $109.95 (North America).
    For direct purchase from myself and signed copies (with optional dedication) my contact details are as follows:
    Tony Bendell, The Anti-Fragility Academy Direct Sales, Charnwood House, 17 Caythorpe Road, Lowdham, Nottingham, NG14 7DZ, UK;
    telephone: +44 (0) 115 9669460; fax:+44 (0) 115 9663191; email: booksales@theanti-fragilityacademy.co.uk
    website: www.theanti-fragilityacademy.com/booksales