BUSINESS MARATHON ASCENSION

TOWARDS

EUROPEAN EXCELLENCE

EXPERIENCE, RESULTS

AND PROSPECTS

Petro KALYTA,

President of Ukrainian Association for Quality, President of Club of Quality Leaders of the Central and Eastern European Countries,

Honorary President of International Guild of Quality Professionals, Member of the EOQ General Assembly

Q

www.uaq.org.ua

France, Germany, Austria, Finland… 40-50

Norway 84

Latvia, Poland, Czech Republic… 10-20

Monaco

Switzerland, Luxemburg… 70-80

Ukr

Russia

Belarus

GROSS NATIONAL INCOME

(per capita)

Thousand $

2

10

6

3

183

2 Moldova

Potential possibility to increase competitiveness and improve quality of life in Europe

Professor V. Lapidus (Russia)

RUSSIAN COMPANIES

IN COMPARISON WITH WORLD LEADERS:

PRODUCTIVITY-

UP TO 10 TIMES LOWER,

DEFECTIVENESS –

UP TO 1000 TIMES HIGHER !

(analogously in other CIS’s countries)

3

4

SCALE AND LEVELS

OF ORGANIZATIONAL EXCELLENCE

1000

0

400

500

600

700

800

900

300

200

100

Points

Companies

Developed European Countries

СIS countries

300-450

150-250

550-650

700-800

Total

LEADERS

LEADERS

Total

CONSEQUENCES OF “IMPERFECTION”

5

HIGH COST PRICE

AND LOW PRODUCTIVITY

UNPAID TAXES

AND DEFICIT OF BUDGET

UNPRODUCTIVE OUTLAY

OF RESOURCES

LOW COMPETITIVENESS

CONTRACTUAL DEFAULT

IMPOVERISHMENT OF CITIZENS

WHO LOST THEIR WORKPLACES

OR EARN PALTRY WAGES

ENVIRONMENGTAL POLLUTION,

SOCIAL TENSION etc.

DELIVERY OF HAZARDOUS PRODUCTS

AND VIOLATION OF CUSTOMER’S RIGHTS

IMPERFEC

TION

Maturity

levels

“Generations” of organizational relations

4th

Evident social

orientation

And continuous

system

improvement

(above standards)

4th

3rd

Local target

management

systems.

Standards

3rd 2nd Quality of

products.

Standards

2nd 1st Product safety.

Technical

regulation

1st

- Illegal delivery

of products

6

GLOBAL TRENDS IN MANAGEMENT

7

Developed countries Post-soviet countries

History:

Saturated market.

Competition

History:

Deficit market.

Lack of competition

QUALITY QUANTITY

FUNDAMENTAL DIFFERENCES BETWEEN

DEVELOPED AND POST-SOVIET

COUNTRIES

MANAGEMENT

SYSTEM

Ukraine,

counting on a one inhabitant,

has less quality management systems on ISO 9000 in comparison with:

- China - in three and a half times,

- Italy – almost in 40 times!

At the same time, at the experts’ opinion,

only a small part of such systems in Ukraine are really operating.

8

THE EUROPEAN QUALITY CHARTER:

IMPLEMENTATION OF ISO 9000

is the FIRST STEP towards

Total Quality Management (TQM )

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the state of organization that defines its ability to set and achieve goals to satisfy interested parties

• Level of business excellence is the measurand characterizing the degree of long-term satisfaction of interested parties in the dynamics (is determined according to the methodology on the 1000-point scale, where 1000 points corresponds to the ideal)

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•Business excellence is

the process of transition from the achieved to higher level of excellence

• Motivation for improvement is

to create a comfortable environment, differentiated by level of perfection (the higher the level of perfection, the more comfortable environment), where:

• Comfort environment is conditions, which provide conveniences for business as well as the psychological satisfaction of socially responsible organizations.

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• Improvement is

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CONCEPTS OF EXCELLENCE

(EFQM version 2009)

• Achieving Balanced Results

• Adding Value for Customers

• Leading with Vision, Inspiration and Integrity

• Managing by Processes

• Succeeding through People

• Nurturing Creativity and Innovation

• Building Partnership

• Taking Responsibility for a Sustainable Future

The EFQM Excellence Model

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1.IDENTIFICA-TION OF STRENGTHS AND AREAS FOR IMPROVEMENT

3.DEVELOPMENT OF INNOVATIVE PROGRAM OF IMPROVEMENT

4.FULFILLMENT OF A PROGRAM

2.ACQUIRE NEW KNOWLEDGE

MODEL-BASED MECHANISM OF IMPROVEMENT

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RADAR

15

100

200

300

400

500

600

700

800

BEST COMPANIES OF

EUROPE

BEST COMPANIES

OF POST-SOVIET

COUNTRIES

Level in accordance

with ISO 9001

550-650

700-800…

250-300

SCALE AND LEVELS

OF BUSINESS

EXCELLENCE

900

1000

Score

Ideal

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ASSESSMENT

USING THE EFQM EXCELLENCE MODEL

It is a unique integrated diagnostics, allowing to know

the real level of excellence of the organization, its strengths

and areas for improvement

Helps for decision making:

- оn development of improvement program;

- оn the acquisition of knowledge about the best practice;

- оn participation in the National Quality Award and/or Quality Tournament of the Central and Eastern Europe etc.

As a result of assessment company can receive recognition certificate

of its level of excellence

EXTENSIVE AND INTENSIVE

DEVELOPMENT OF THE COMPANY

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Level of excellence,

scores

Time

100

1000

500

800

600

400

200

0

300

700

900

CONTINUOUS

PURPOSEFUL

IMPROVEMENT

UNSYSTEMATIC EPISODICAL

DEVELOPMENT

(BY THE MAP, WITH COMPASS)

(WITHOUT THE MAP)

Recognised for Commitment to Excellence in

Europe

On the way towards

Excellence in the country

Recognised for Excellence in the country

Recognised for Excellence in

Europe 4*

Finalist of the National Quality

Award

Winner of the

National Quality Award

Laureate of the CEEC Quality

Award

Finalist of the EFQM

Excellence Award

Winner of the

EFQM Excellence

Award

Prize Winner of the EFM Excellence

Award

Winner of the CEEC Quality

Award

650

550

500

400

300

200

Beginning towards

Excellence in the country

Laureate of the National Quality

Award

Finalist of the CEEC Quality

Award

100

450

Business Marathon ASCENCION TOWARDS

EUROPEAN EXCELLENCE

Recognised for Excellence in

Europe 3*

Recognised for Excellence in

Europe 5*

300

400

450

500

550

750

18

0

NATIONAL ACTION

ACHIEVE EUROPEAN RECOGNITION

ACTIONS THAT PROMOTES DEVELOPMENT

OF MOVEMENT IN UKRAINE

• Informational promotion of concepts and EFQM Excellence Model

• Training of enterprises’ specialists and experts on excellent organizations

• Actions on quality management, CSR and Sustainable Development

•Ukrainian Charter “For Business Excellence and Quality”

• Ukrainian National Quality Award

• Club of Quality Leaders of Ukraine

• Promotion of companies – winners of National Quality Award

* Support of Ukrainian NGOs 19

• Informational promotion of the EFQM concepts, model and levels of excellence, Stairs of Excellence of UAQ including in the framework of WAQ project;

• Actions on quality, management, CSR and sustainable development including International project “Constellation of Quality”;

• International Quality Tournament of the CEEC;

• Club of Quality Leaders of the CEEC;

• Promotion of companies – winners of the CEEC Quality Award including Album “Central and Eastern Europe. Leaders of Quality”;

* Support of EOQ and EFQM.

ACTIONS THAT PROMOTES DEVELOPMENT

OF MOVEMENT IN THE CEEC

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MAIN RESULTS ACHIEVED IN UKRAINE

• More than 40 companies – winners of Ukrainian National Quality Award achieved European recognition:

• 41 companies became holders of EFQM certificates “Recognised for Excellence in Europe”;

• 22 companies became winners of International Quality Tournament of the CEEC,

• 8 of them are prize winners of the Tournament

• 2 companies became finalists of the EFQM Excellence Award (only in the CIS up to 2008)

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MAIN RESULTS ACHIEVED IN THE CEEC REGION

• 53 companies from Belarus, Hungary, Kazakhstan, Lithuania, Russia, Romania, Ukraine, Azerbaijan and Tajikistan took part in the Quality Tournament of the CEEC;

• As a result of 8 Tournaments about 40 companies from 9 сountries received EFQM certificate “Recognised for Excellence in Europe” (including more than 20 companies with 5 stars);

• 48 companies became winners of the Tournament;

• 22 companies became Winners of the CEEC Quality Award;

• 8 companies – participants of Business Marathon became finalists of the EFQM Excellence Award and two of them received status of Prize Winner of this Award.

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23

BEST PRACTICE OF LEADING COMPANIES

FROM THE CIS’s COUNTRIES

* Stavropol State Agrarian University (Russia), PRIZE

WINNER of the EFQM Excellence Award

* Medicina (Russia), PRIZE WINNER of the EFQM

Excellence Award

* Vodokanal St.Petersburg (Russia), Finalist of the

EFQM Excellence Award

* LUKOIL-Permnefteorgsintez (Russia), Finalist of the

EFQM Excellence Award

* Brovary RBD 50 (Ukraine), Finalist of the EFQM

Excellence Award

* Sandora (Ukraine), Finalist of the EFQM Excellence

Award

EXTENSIVE AND INTENSIVE

DEVELOPMENT OF ECONOMY

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Number of enterprises

“Widthway” and “upwards”

development (intensive)

Development mainly “in width”

(extensive)

100

1000

500

800

600

400

200

0

300

700

900

”The more perfect the company,

the more comfortable for it to

exist in the state”

”Better conditions to all”

Level of excellence,

scores

25

MECHANISMS OF ECONOMIC

DEVELOPMENT

IMPROVEMENT OF CONDITIONS

TO ALL ORGANIZATIONS

(BASIS)

ADDITIONAL

IMPROVEMENT ON CRITERION

”LEVEL OF BUSINESS EXCELLENCE”

(SUPERSTRUCTURE)

NATIONAL

STRATEGIC TASK

CARDINAL DEVELOPMENT OF

NATIONAL MOVEMENT

FOR BUSINESS EXCELLENCE

AND QUALITY

All “forest” of organizations of the country should

go to the “qualitative” growth and not just

separate “trees”

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WHAT IS REQUIRED FROM THE GOVERNMENT?

SUPPORT OF THE MOVEMENT AND PROMOTION OF INVOLVEMENT

“THE WILL”:

MECHANIZMS OF MOTIVATION

“TO KNOW”:

SYSTEM OF GENERALIZATION AND DISTRIBUTION OF BEST PRACTICE

“TO BE ABLE”:

INFRASTRUCTURE OF PROFESSIONAL SUPPORT

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• SYSTEM OF AWARDS

(evidence of Respect)

• ”EASY” STATE CONTROL

(evidence of Trust)

• STATE PROTECTION (including from raiders)

• PREFERENCES to organizations which improve their performance

MECHANISMS OF MOTIVATION

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Recognised for Commitment to Excellence in

Europe

On the Way Towards

Excellence in the Country

Recognised for Excellence in the Country

Recognised for Excellence

in Europe 4*

700

650

550

500

400

300

200

Beginning Towards

Excellence in the Country

100

450

PK

Recognized

for Excellence

in Europe 5*

400

450

500

550

Recognised

for Excellence

in Europe 3*

Finalist of the National Quality Award

Laureate of the National Quality Award

Winner of the National Quality Award

Finalist of the CEEC

Quality Award

Laureate of the CEEC

Quality Award

Winner of the CEEC

Quality Award

Finalist of the EFQM Excellence

Award

Prize Winner of the EFQM Excellence

Award

Winner of the EFQM Excellence

Award

AWARDS -

INCREASING

CONTROL –

REDUCTION

PROTECTION -

STRENGTHENING

PREFERENCES -

INCREASING

A C P P

300

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MOTIVATION TO

IMPROVEMENT

(the more perfect the company, the more comfortable for it to exist in the state)

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MANAGEMENT SYSTEM AS THE BASE OF CSR AND

SUSTAINABLE DEVELOPMENT SUSTAINABLE

DEVELOPMENT (SOCIETY,

ECOLOGY,

ECONOMY)

(DREAM)

CORPORATE

SOCIAL

RESPONSIBILITY (SOCIETY,

ECOLOGY,

ECONOMY)

BUSINESS

EXCELLENCE (SOCIETY,

ECOLOGY,

ECONOMY)

(BASIC TOOL)

Aim

Realization

Charitable Foundations

(special tool)

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LEVEL of management system improvement

LEVEL

of corporate social

responsibility

LEVEL

of financial and

other

effectiveness

ORGANIZATION’S EXCELLENCE

GLOBAL PROJECT

YOUTH CREATIVE MOVEMENT

“QUALITY RELAY RACE”

The project was developed in 2011 as a part of the WAQ project “Emotional tools for quality promotion”.

Main organizers of the project:

- WAQ (in the person of the leader of project “Emotional tools for quality promotion”);

- International Guild for Quality Professionals;

- Club of Quality Leaders of the CEEC;

- Ukrainian Association for Quality and Ukrainian Club of Quality Leaders.

The purpose of the project is to unite separate children and youth organizations and to direct them to the tasks of improvement quality of life.

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GLOBAL PROJECT

YOUTH CREATIVE MOVEMENT

“QUALITY RELAY RACE”

Main tasks of the global project:

• to promote youth in their participation in processes of sustainable development;

• to change their philosophy in the direction of strengthening the creative component and reduce the striving for consumption;

• to intensify the social orientation of youth and youth organizations;

• to create conditions for development of youth leadership abilities and willingness for team-work;

• to create motivation system for continuous improvement and willingness to take responsibility;

• to support the transformation of confrontation and conflict power into the energy of creativity and partnership.

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WINNING TOGETHER!

UKRAINIAN ASSOCIATION FOR QUALITY

Address: 02002, Ukraine, Kiev, Mykilsko-Slobidska Str.,6-D

Тel.: +38 044 541 0532; +38 050 358 8068 (mob.)

Е-mail: quality@quality.kiev.ua ; kalyta@uaq.org.ua

www. uaq.org.ua

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