“business excellence as a tool for sustainability” to be in mp… · the framework criteria for...
TRANSCRIPT
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“Business Excellence As a Tool For Sustainability”
“Revolutionise Your Organisation To New Normal Through Business Excellence”
12 May 2020 @ 10.00 AM
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Harnek Singh, Immediate Past President, APQO Inc / Past Chair, GPEA
Academician, International Academy for Quality, Inc
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Motivation for
adopting the BE
Framework for
business
sustainability
Constraints
Opportunities
Demands
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REACT
RE-PLAN
RESUME
3 Stages - 3Rs
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Factors Affecting – Business Excellence
Methods/ Systems Productivity
Technology Management
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The Framework Criteria for Business Excellence
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The Performance / Business Excellence Framework is benchmarked tointernational standards of organisational excellence. GEMs Council
United States Europe Japan Australia Singapore
the Criteria have evolved significantly over time to help organizations address current economic and marketplace challenges and opportunities
Malaysia
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• Adopt a systems perspective / holistic approach
• Align resources with strategic objectives that supports
organizational profile – context
• Jump-start change initiatives
• Energize continuous improvement/innovation initiatives
• Focus on common goals / results / outcome / sustainability
• Understand performance against the competition
• Demonstrate your commitment to sustainability management
What adopting BE Framework do for Your Organization?
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Vis
ion
Alignment
Mission
Vis
ion
Mission
Focus all Efforts, Energy & Resources
Business Excellence enables Business Success
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Driver
ORGANIZATIONAL PROFILE:
ENVIRONMENT, RELATIONSHIPS & CHALLENGES
Direction 2
STRATEGY
1
LEADERSHIP
3
CUSTOMERS
5
WORKFORCE
6
OPERATIONS
7
RESULTS
4
MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENTInformation
BE Framework : An Integrated System’s Perspective
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Enables a Systemic Approach
Results –What has
been
achieved?
Deployment
How / Where / How much
Approach –
What is done
and why?
Improvement –How can it be better done?
The BE Framework
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Some Key Questions
Any organization (public, private, not for profit, NGO ) can apply the
BE Framework criteria to improve overall performance. The BE framework helps you understand how well you are delivering/ accomplishing what is important to your organization:
1) Are your processes consistently effective?2) Do your approaches/systems address your organization's needs?3) How good are your results / performance ?4) Is your organization learning and improving?
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MALAYSIA BUSINESS EXCELLENCE FRAMEWORK
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MBEF 11 Guiding Principles –world class performance attributes
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1. Visionary Leadership
2. Leading Transformation
3. Strategic Direction
4. Management by Fact
5. Engaged Workforce
6. Excellence in Execution
7. Innovation Led Process
8. Deliver Value to Stakeholder
9. Organisational Agility
10. Customer Centric
11. Corporate Citizenship
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Organizational Profile / Organisational Overview
P.1 Organizational Description
P.2 Organizational Situation
Organisational Overview details basic information about what is relevant and important to your business. It is a snapshot of your organisation, key influences on how it operates, and key challenges encountered.
This information forms the basis for performance improvement efforts.
• Starting point for BE Framework self-assessment and application preparation
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1. Leadership (150 pts.)
- how leaders develop and facilitate the achievement of an organisation’s vision and mission. - leader’s efforts to develop values required for long-term success.
1.1 Visionary & Promote Innovation (90 Points)
1.2 Governance and Community Support (60 Points)
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2. Strategy (90 pts.)
2.1 Strategy Development (45 pts.)
2.2 Strategy Deployment, Implementation & Review (45 pts.)
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The 7 Most Important Sustainability Terms
CORPORATE GOVERNANCE (CG)
▪ All of the external and internal laws, regulations, codes, values and principles as well as corporate guiding principles which must be complied with
CORPORATE CITIZENSHIP (CC)
▪ Responsible behaviour within the company and toward the local environment▪ Ecological and cultural commitment in the region
CORPORATE SOCIAL RESPONSIBILITY (CSR)
▪ Voluntary contribution to sustainable development▪ Assumption of social responsibility
CORPORATE RESPONSIBILITY (CR)
▪ Transparent and consistent business philosophy that influences decisions respectfully and ethically
PEOPLE, PROFIT, PLANET (PPP)
▪ Identifies the three key aspects within the organization and in decision making▪ Takes reciprocal relations into account
TRIPLE BOTTOM LINE▪ Describes the measurement of company success beyond “conventional”
criteria ▪ Ecological and social impact are included
SUSTAINABILITY▪ Describes the use of a regenerable system that retains its essential
characteristics, and can regenerate its stock naturally
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Sustainability management DEFINITION
Sustainability issues are of growing importance in science, society, politics, culture and international legislation.
Sustainability management aims to integrate this development into business operations.
Sustainability comprises of three equally important pillars.
The entire value chain is affected by analysis and subsequent sustainability-oriented actions.
ECONOMIC ECOLOGICAL SOCIAL
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APPLICATIONS
Sustainability Through Quality Management (BE Models) - EFQM
FACILITATORS RESULTS
LEARNING, CREATIVITY, INNOVATION
Management
10%
Processes
10%
Business Results
15%
Employees
10%
Policy &Strategy
10%
Partnerships
10%Society Results
10%
Customer Satisfaction
15%
Employee Satisfaction
10%
Comprehensive and sustained quality assurance of all products, processes and services.
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2. Strategy (90 pts.)
2.1 Strategy Development (45 pts.)
2.2 Strategy Deployment, Implementation & Review (45 pts.)
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SUSTAINABILITY STRATEGYMeasures for Practical Implementation of Strategy
Activities and measures are defined to achieve medium and long-term goals
All business divisions and functional areas are involved
Corporate culture and philosophies are reflected
Priorities and focal points lead to detailed action plans for all sub-areas
Opportunity and risk assessment of the current and future conditions follow
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SUSTAINABILITY STRATEGY
Sustainability Balanced Scorecard (SBSC)
BSC PERSPECTIVE
SUSTAINABILITY DIMENSIONS
FINANCIALPERSPECTIVE
CUSTOMERPERSPECTIVE
PROCESSPERSPECTIVE
LEARNING ANDDEVELOPMENTPERSPECTIVE
ECONOMICSUSTAINABILITY
Profitability, Cash Flow,Enterprise Value
Customer Satisfaction, Customer Loyalty, NewCustomers
Productivity, Throughput Time, Scrap Rate
Innovative Capacity, Employee Satisfaction
SOCIAL SUSTAINABILITYVoluntary Social Benefits, Profit-Sharing,Social Sponsorship
Product Safety, Product-Related Information Policy, Social Added Value
Humanization of Work, OccupationalAccidents, RealizedSuggestions for Improvement
Training Programs, Degree of Participation, Flexible Working Hours
ENVIRONMENTALSUSTAINABILITY
EnvironmentalInvestments, ResourceCosts, EnvironmentalLevies, EnvironmentalSponsorship
Product Responsibility, Product Take-Back and Recycling Systems, Leasing Concepts
Resource and Energy Efficiency, MaterialFlows, Land Use
EnvironmentalResearch and Development, Environmentally-Oriented Environmental Training
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3. Information (90 pts)
3.1 Information Management (45 Points)
3.2 Knowledge Management (45 Points)
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4. Customers (110 pts)
4.1 Customer Needs and Expectation (50 Points)
4.2 Customer Engagement (60 Points)
5. Workforce ( 120 pts)
5.1 Workforce Management (55 points)
5.2 Workforce Engagement (65 points)
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PROCESSES AND STRUCTURESSustainable HR Management
Various influences on employee recruitment, retention and development:
DEMOGRAPHIC CHANGE Possible skills shortage
LATER RETIREMENT Special training models and pay systems required
KNOWLEDGE-BASED SOCIETYNecessary solutions for knowledge acquisition, processing and communication within the organisation
WORK-LIFE BALANCE Flexible working hours required
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6. Process (90 pts.)
6.1 Process Management (60 pts.)
6.2 Supply Network Management (20 pts.)
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APPLICATIONS
Sustainability Through Innovation Management
IDEA GENERATION EVALUATION / SELECTION
DEVELOPMENT PRODUCTION
IDEAS INVENTIONS DIFFUSION
Through creativity, new and unique ideas become usable.
All areas are affected: economic, environmental and social
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APPLICATIONS
Sustainability Through Innovation Management
IDEA GENERATION EVALUATION / SELECTION
DEVELOPMENT PRODUCTION
IDEAS INVENTIONS DIFFUSION
Through creativity, new and unique ideas become usable.
All areas are affected: economic, environmental and social
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APPLICATIONS
Sustainability Through Risk Management
Early detection through monitoring
Identification of risks
Assessment and measurement of risks
Development of goals from strategy and vision
Definition of critical success factors or value drivers
Establishment of risk management strategy
Creating structure and documentation in a risk management system
Control of risk prevention
MANAGEMENT OF RISKS
Risk Management Steps:
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PROCESSES AND STRUCTURESSustainable Production System - Principles and Factors
BUILDING STRUCTURE MECHANICAL EQUIPMENT MANAGEMENT
NetworkingEfficiency-enhancing technologies
Open to innovation and change
Flexibility and variability Total cost of ownershipFocus on increasing productivity
Performance and health-promoting work space concepts
Emission reduction,closed-circuit circulation
Cost-benefit optimization
Efficient use of resources Extension of useful lifeSustainability impact and reporting
Renewable energy sources Low resource consumption Transparency and credibility
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7. Results (350 pts.)
7.1 Leadership Result (70 Points)
7.2 Customer Result (70 Points)
7.3 Process Result (70 Points)
7.4 Workforce Result (70 Points)
7.5 Financial and Market (70 Points)
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Evaluating Processes - four factors
• Approach (A): How do you accomplish your organization’s work? How effective are your key approaches?
• Deployment (D): How consistently are your key processes used in relevant parts of your organization?
• Learning (L): How well have you evaluated and improved your key approaches? How well have improvements been shared within your organization?
• Integration (I): How well do your approaches align with your current and future organizational needs? How well are processes and operations harmonized across your organization?
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Evaluating Results (LeCTI)
• Levels (Le): What is your current performance?
• Trends (T): Are the results improving, staying the same, or getting worse?
• Comparisons (C): How does your performance compare with that of other organizations, or with benchmarks or industry leaders?
• Integration (I): Are you tracking results that are important to your organization and that consider the expectations and needs of your key stakeholders? Are you using the results in decision making?
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ISO 9001:2015 Quality Management System
ISO 9001:2015 Quality Management Model
Organization and its context (4)
Customer Requirements
Customer Satisfaction
Products and services
Results of the QMS
Needs and expectations of relevant interested parties (4)
Leadership(5)
Performance evaluation
(9)
Support & Operation
(7,8)
Planning(6)
Improvement(10)
Plan Do
CheckAct
Plans & targets set
Set direction
Workforce trained & engaged
Performance
tracked &
reported
Quality, innovation, technology &
improvement integrated into work
management & practices31
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ISO 22000: 2018 - Food safety management systems
ISO 37001: 2016 Anti-bribery management systems
ISO 37101: 2016 Sustainable development in communities --
Management system for sustainable development
ISO 41001:2018: Facility management – Management systems
ISO 55001: 2014: Asset Management
ISO 21001:2018: Management system for educational organizations
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Control
Organisation Context / Organisation Profile
Assess
ISO 9001 /JCI etc
Various MSSs,
Processes &
Performance Mgmt
Total Leadership Commitment
Improve
Foundation
Sustained success- Taking a BE framework holistic approach
BE Framework, QMS ISO
9001:2015, ISO 9004:2018,
MSSs /JCI/ISO 56002: 2019
Best Practices, IQC,
CI tools, Innovation
Project, Kaizen,
Lean, 6 Sigma etc
• ISO 9004 provides guidance on how to achieve sustained success 33
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Regulatory Compliance
BPR / 6 Sigma
Lean /Kaizen /
Benchmarking/
Design Thinking/
CPI Tools
PE
/
ISO
9004/
GRI-
G4 /
Stds
SDGs
Basic Standard to Business Excellence / Sustainability Mgmt
Regulatory Compliance
Efficiency Best Practices / System Improvement/
Innovation Strategy / Business Continuity &
resiliency planning / Leveraging Technology
EffectivenessISO9001 2015 QMS
Sustaining the Business Excellence Journey
Innovation Management
ISO 56002 :2019 BE Framework
BE FrameworkBE Awards
Holistic & Niche
ExcellenceBE Awards
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If you can't describe what you are doing as a process,
you don't know what you are doing.
Deming
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“It’s not enough to do your best. First you have to know what to do. Then you can do your best.”
—Dr. Edward Deming
Effective BE is knowing What Matters Most
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Adoption of BE Framework
• Step 1: Organizational Profile
• What is important to your organization? Context
• Step 2: Process Categories (Categories 1-6)
• How does your organization accomplish its work?
• Step 3: Results (Category 7)
• How does your organization perform?
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Sustainability Through BE
• View BE as a journey (“Race without a finish line”)
• Recognize that success takes time
• Create a “learning organization”• Leaders engaged and set the pace
• Strategy & Planning
• Execution of plans
• Periodic assessment of performance progress
• Revision of plans based on assessment findings
• Agility
• Adopt ISO MSSs e.g. 9001, 14001, 45001, BCM, CPI
• Use BE Framework assessment and feedback
• Seek and share best practices (internal benchmarking)
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In Conclusion
ACTIVE LEADERSHIP, ORG CONTEXT, QUALITY & INNOVATION MANAGEMENT
Business Excellence Enabling
Sustainability
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TERIMA KASEH
Thank you