business excellence - bma-bangalore. coffeeday. ... • the notion of excellence was ultimately...
TRANSCRIPT
Business Excellence
By Anantha AgasthyaBMA Feb 2014
What is the purpose of Business
What is common and what groups can we make here
Raja Mills
GK ValeInfosys
Coffee Day
LIC Housing
ITI
Why do we not say Business Perfection?
What is excellence?
• The notion of excellence was ultimately bound up with the notion – of the fulfillment of purpose or function: the act of living up to one's full potential.
• Art, sculpture and literature give examples of how excellence can be demonstrated.
• Example: Belur and Halebid temples,
Some history in the quest for Business Models for excellence
•Businesses as monopolistic traders – Maximizing profits and opportunities for profits•Push for good quality – Search for alternatives ‐ competition•Push for good and better sources and cheaper sources •Earliest Business laws – Sales and contracts , Customs duties •Business changed from craftsmen and raw material supplies to Industry ‐ Industrial revolution – Maximize production•Exploitation of labour – Oliver twist – French revolution and Socialistic thought•Resistance to exploitation
Some history in the quest for Business Models for excellence
•Scientific Management , Motivation theories – Increasing productivity•Corporatization of business‐ Stock exchanges – Ownership and administartion of business •Expansion of capacities for war •Military purchases – Quality assessment and systems approach – Quality control •Post second world war – Japan’s quality success – Deming and Juran•Deming’s award – TQM , In search of excellence,•Malcolm Baldridge Award, EFQM and other versions•Ethics , Governance, Risk Management, Sustenance
What is Business Excellence?
• Business Excellence is often described as outstanding practices in managing the organisation and achieving results, all based on a set of fundamental concepts or values.
• These practices have evolved into models for how a world class organisation should operate.
• These models have been developed and continue to evolve through extensive study of the practice and values of the world’s highest performing organisations.
EFQM model
• Business excellence, as described by the European Foundation for Quality Management (EFQM), refers to
“Outstanding practices in managing the organization and achieving results, all based on a set of eight fundamental concepts.”
Six process enablers
• Leadership • Policy and Strategy • People • Partnerships and Resources • Processes
– Customer Results – People Results – Society Results
• Key Performance Results
Eight concepts of EFQM model
• Results orientation, • Customer focus,• Leadership and constancy of purpose, • Management by processes and facts,• People development and involvement, continuous learning,
• Innovation and improvement; • Partnership development, and • Public responsibility.
Fundamental Beliefs
Results OrientationExcellence is achieving results that delight all the organisation's stakeholders.
Customer FocusExcellence is creating sustainable customer value.
Leadership and Constancy of PurposeExcellence is visionary and inspirational leadership, coupled with constancy of purpose.
Management by Processes and FactsExcellence is managing the organisation through a set of interdependent and interrelated systems, processes and facts.
Fundamental beliefs
People Development and InvolvementExcellence is maximising the contribution of employees through their development and involvement.
Continuous Learning, Innovation and ImprovementExcellence is challenging the status quo and effecting change by utilizing learning to create innovation and improvement opportunities.
Partnership DevelopmentExcellence is developing and maintaining value‐adding partnerships.
Corporate Social ResponsibilityExcellence is exceeding the minimum regulatory framework in which the organization operates and to strive to understand and respond to the expectations of stakeholders in society.
Assessment of Processes
•Approach •Deployment•Learning•Integration
Assessment of results
• Levels, • Trends,• Comparisons, and• Integration
5 stages of maturity (from CMM)
• Initial (chaotic, ad hoc, individual heroics) ‐ the starting point for use of a new or undocumented repeat process.
• Repeatable ‐ the process is at least documented sufficiently such that repeating the same steps may be attempted.
• Defined ‐ the process is defined/confirmed as a standard business process, and decomposed to levels 0, 1 and 2 (the last being Work Instructions).
• Managed ‐ the process is quantitatively managed in accordance with agreed‐upon metrics.
• Optimizing ‐ process management includes deliberate process optimization/improvement.
Business excellence models are frameworks
They can help to:• focus thought and action in a more systematic and structured way that should lead to increased performance.
• The models are holistic in that they focus upon
• all areas and dimensions of an organisation, and
• in particular, factors that drive performance.
Conclusion
• To sustain businesses, we need to develop an ARETE (excellence) mindset at all levels in all domains
• Excellence enhances our competitiveness as a nation
• Business Excellence builds in an integrated approach
• But in needs a long term stamina for leadership and Boards
Arete
• Business excellence is about thoughtful actions (contemplative )
• It is not about Impulsive, reactive actions in the business world
• Creating a capacity for contemplative action is the challenge
Built to Last
• Built to Last, the defining management study of the nineties, showed how great companies triumph over time and
• how long‐term sustained performance can be engineered into the DNA of an enterprise from the very beginning.
But what about the company that is not born with great DNA?
• How can good companies, mediocre companies, even bad companies achieve enduring greatness?
Three Gs to Four Gs
Harish Manwani , COO Unilever :• Earlier paradigm was Business model was Growth, which is– Consistent– Competitive– ProfitableLeading to share holder value– Fourth G growth which is responsible (Economic value + Social value)Make MONEY AND Do Good (Not an or)
Leadership
• Business have to define new models • Values and purpose are the drivers of software of the new companies
• Brands at the forefront of social change
End of Presentation
Thank you