“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

Motivation for

adopting the BE

Framework for

business

sustainability

Constraints

Opportunities

Demands

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REACT

RE-PLAN

RESUME

3 Stages - 3Rs

Factors Affecting – Business Excellence

Methods/ Systems Productivity

Technology Management

4

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

• 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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7

Vis

ion

Alignment

Mission

Vis

ion

Mission

Focus all Efforts, Energy & Resources

Business Excellence enables Business Success

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?

MALAYSIA BUSINESS EXCELLENCE FRAMEWORK

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

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.)

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

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

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.)

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

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

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)

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

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

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

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:

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)

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

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

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

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)

In Conclusion

ACTIVE LEADERSHIP, ORG CONTEXT, QUALITY & INNOVATION MANAGEMENT

Business Excellence Enabling

Sustainability

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TERIMA KASEH

Thank you