Business Excellence (BE) is about achieving excellence in everything that an organization does and superior business results in a sustainable way. BE is about developing and strengthening the management systems and processes of an organization to improve performance and create greater value for stakeholders.

BE is based on a set of fundamental concepts or values. These practices have evolved into models for how a BE organisation should operate.

 

 

 

 

  

 

 


Business Excellence Criteria

Business Excellence has been characterised by a 12 generic criteria 8 enablers and 4 results criteria which are applicable to any organization regardless of size.

By using these criteria an organization can do an effective SWOT analysis evaluate its strengths and weaknesses and identify threats and opportunities for improvement.

Business performance is the product of seven enablers, Leadership, People, Resources and Capabilities, Policy, Strategy, Innovation, Processes, Partnerships.

For organization to demonstrate excellence there has to be a direct relationship between the results achieved and the enablers that caused them, hence the connections between all the criteria.

 The figures shown in the model relate to the percentages allocated for scoring purposes when assessing organizations for the European Quality Award.

ENABLERS

1. Leadership
How leaders develop and facilitate the achievement of the mission and vision, develop values required for long term success. How leaders implement these via appropriate actions and behaviours, and are personally involved in ensuring that the organization's management system is developed and implemented. Evidence is needed of how leaders:

visibly demonstrate their commitment to excellence and continuous improvement;
support improvement and involvement by providing appropriate resources and assistance;
are involved with customers, suppliers and other external organizations;
recognise and appreciated people's efforts and achievements.
2. Policy and Strategy
How the organization implements its mission and vision via clear stakeholder focused strategy, supported by relevant policies, plans, objectives, targets and processes. Evidence is needed of how policy and strategy are:

based on information which is relevant and comprehensive
developed
communicated and implemented regularly updated and improved.
3. People
How the organization manages, develops and releases the knowledge and full potential of its people at an individual, team based and organization-wide level. How it plans these activities in order to support its policy and strategy and the effective operation of its processes. Evidence is needed of how:

people resources are planned and improved
people capabilities are sustained and developed
people and teams agree targets and continuously review performance
people are involved, empowered and recognised
people and the organization have an effective dialogue people are cared for
4. Partnerships & Resources
How the organization plans and manages its external partnerships and internal resources in order to support its policy and strategy and the effective operation of its processes. Evidence is needed of:

how financial resources are managed;
how information resources are managed;
how supplier relationships and materials are managed;
how buildings, equipment and other assets are managed;
how technology is managed.
5-. Processes
How the organization designs, manages and improves its processes in order to support its policy and strategy and fully satisfy, and generate increasing value for, its customers and other stakeholders. Evidence is needed of how processes key to the success of the organization:

are identified
are systematically managed
are reviewed and targets set for improvement
are improved using innovation and creativity
are changed and the benefits evaluated.
 

 

RESULTS CRITERIA
These criteria are concerned with what an organization has achieved and is achieving. An organization uses a number of key parameters to measure its performance. For each of these, excellence is assessed relative to the organization's business/service environment and circumstances, based on information which sets out:-

the organization's actual performance;
the organization's own targets;
the performance of competitors wherever possible;
the performance of 'best in class' organizations.
For each of the results criteria, evidence is required of the extent to which they cover the range of the organization's activities and of the relative importance of the parameters presented.

1. Customer Results
What the organization is achieving in relation to its external customers. Results and the relevance of the measures used should be presented to cover:

the customers' perception of the organization's products, services and customer relationships (75%);
additional measures relating to the satisfaction of the organization's customers (25%).
2. People Results
What the organization is achieving in relation to its people. Results and the relevance of the measures used should be presented to cover:

people's perception of the organization (75%);
additional measures relating to people satisfaction (25%).
3. Society Results
What the organization is achieving in relation to local, national and international society as appropriate. Results and the relevance of the measures used should be presented to cover:

society's perception of the organisation (25%);
additional indicators of the organisation's impact on society (75%).
4. Key Performance Results
What the organisation is achieving in relation to its planned performance. Results and the relevance of the measures used should be presented to cover:

financial measures of the organization's performance (50%);
additional measures of the organization's performance (50%)

 

Excellent Organization

FUNDAMENTAL CONCEPTS
In addition to the 12 criteria,

There are eight principles that characterize excellent organizations. Winning organizations  formulate them in an inclusive way and strive to realize through ambitious change management initiatives followed by continual improvement.

1. Noble Purpose

 

2. Customer / User Focus

The customer / user is the final arbiter of the value created by the organization. Customer experience / user experience, customer retention, customer loyalty, and market share gain are best optimized through a clear focus on satisfaction of exiting needs of current and potential customers as well as development of new market niches through creation and satisfaction of new customer needs thanks to disruptive value innovations and implementation of disruptive blue-ocean strategies.

 

1. Sustainable Results
Excellence is dependent upon harmonizing and satisfying the needs of stakeholders (investors, employees, customers, suppliers, partners, and society) as well as the needs of sustainable development, i.e. delivering stakeholder results without compromising the ability of future generations to meet their own needs.

3. Leadership and consistency of purpose
The behaviour of an organization's leaders creates a clarity and unity of purpose within the organization and an environment in which the organization and its people can excel.

4. Management by Processes & Facts
Organizations perform more effectively when all inter-related activities are understood and systematically managed and decisions concerning current operations and planned improvements are made using reliable information that includes stakeholder perceptions.

5. People Development & Involvement
The full potential of the organization's people is best released through shared values and a culture of trust and empowerment which encourages the involvement of everyone.

6. Continuous Learning, Innovation & Improvement
Organizational performance is maximized when it is based on the management and sharing of knowledge within a culture of continuous learning, innovation and improvement.

7 Partnership Development
An organization works more effectively when it has mutually beneficial relationships, built on trust, sharing of knowledge and integration, with its partners

8. Public responsibility
The long term interest of the organization and its people are best served by adopting an ethical approach and exceeding the expectations and regulations of the community at large.

     
     

  

Vadim Kotelnikov

One World, One Way

Success 360

Coaching by Example

Innompic Games

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