Dr. Ramnik Parekh,MBBS, DIM, DIH (London),

FIAOH (Hon), FCGP (Hon)

Director:UnitedHealth Parekh TPA P. Ltd.

Matrix Medicare P. Ltd.

Business Excellence (BE) is about developing and strengthening the management systems and processes of an organization to improve performance and create value for stakeholders.

• BE is much more than having a quality system in place.BE is about achieving excellence in everything that anorganization does (includingleadership, strategy, customer focus, informationmanagement, people and processes) and mostimportantly achieving superior business results.

“If you want to run a company that is sustainable beyond your life time, then yes, you should go ahead and adopt business excellence”.Kenny Yap, CEO, Qian Hu Corporation Lt, The first SME to win the Singapore Quality Award in 2004

“Person, group or organisation that has a direct or indirect stake or interest in the organisation because it can either affect the organisation or be affected by it. Examples of external stakeholders are owners (shareholders, customers, suppliers, partners, government agencies and representatives of the community or society.

Examples of internal stakeholders are its peopleor groups of people.”

-European Foundation for Quality Management (EFQM)(2010).

Excellent organisations share a common set of beliefs. These beliefs captured a shared set of fundamental concepts that excellent organisations held to be true & committed themselves to be guided by. This set of eight beliefs were common to all of the excellent organisations.

Visionary leadership

Customer-driven excellence

Organizational and personal learning

Valuing workforce members and partners

Agility

Managing for innovation

Management by fact

Societal responsibility

Focus on results and creating value

Systems perspective

Focus on the future

Human Resource Planning

Employee Engagement

Employee Learning and Development

Employee Well-Being and Satisfaction

Employee Performance and Recognition

In order to excel, the organisation should develop and tap the full potential of its employees at the individual, team based and organisational levels.

Fairness and equality among employees must be practised and people at every level should be involved and empowered to make changes.

Employees should be cared for, rewarded and recognised so that they are motivated to perform to their best ability and stay committed to the organisation.

Evolution and Health

If an organization is seeking to improve their health and

safety performance, there is evidence to support

adoption of a healthy workplace strategy which

integrates efforts focused on:

• physical work environment (traditional health and safety);

• personal health resources (enabling healthy worker

lifestyle practices);and

• organizational culture (creating a positive work

environment that enables employee engagement and

the integration of health and safety behaviours).

A healthy workplace is one that enables physical, mental and social

well-being of employees by engaging employees in a meaningful way

to create healthy, supportive working conditions. The working

conditions addressed by a healthy workplace fall under three key

elements:

1. conditions of the physical work environment;

2. conditions that support and enable positive personal health practices;

and

3. conditions that foster a supportive organizational culture.

The three elements of a healthy workplace intersect one another. All three

elements need to be addressed to achieve a truly healthy workplace

Health is the Greatest Wealth: The key to future economic prosperity and

business excellence ...

– The European Network Enterprise Health , 2008

Organisations are today confronted with a wide range of challenges:

The contribution of employees to the value added factor has never

been more important.

As their workforces grow older, many companies may well face

problems replacing their essential skills and experience.

Health plays a crucial role in facing up to the new challenges. One of

the key mainstays of economic and social development

Not only the basis for personal well-being but also the foundation for

productivity, innovation and social cohesion.

Health not only governed by personal patterns of behaviour and

people's resources, but it also embraces living and working conditions.

To have optimal performance, an organization needs to make a conscious effort to

create the culture and work environment that will best enable employees to work

safely, while creating high quality outputs in efficient timelines.

When employees feel respected, valued and satisfied in their jobs and the physical

work environment is safe, they are likely to be more committed and productive in

their work.

Creating healthy work environments & making health a top business priority

creates:

increased employee satisfaction, motivation and productivity, and

in-turn decrease employee turn-over, absenteeism and insurance costs.

Positive conditions to attract and retain the best and the brightest talent.

Conditions to ensure a foothold in a competitive market place.

• In 2007, Dofasco (a steel plant taken over by AcelorMittal) : By

supporting worker healthy lifestyle practices, there was opportunity to

reduce lost time injury by 46%.

• MDS Nordian reduced sick day usage to 4 days per year, compared to 7.4

days on average.

• Delta Hotels decreased employee turnover to 19-22% compared to 40-

60% in their sector.

• Irving Paper decreased short-term disability costs by over 50% in 5 yeas,

with a savings of over $80,000.

• Prudential Insurance showed a 46% decrease in benefit expenses.

• Coors Brewing Company showed an 18% drop in absenteeism.

• At one company: an obesity management campaign, decreased 7 out of 10

health risks, reduced health care expenditures by $184,582 and saw

productivity improvements of $127,173.

Johnson + Johnson (3.8 : 1)

Union Pacific Railroad (4 : 1)

Citibank (4.56 : 1)

Pepsi-cola, Motorola, Dupont (1.9-6.1 : 1)

Companies with HIGH employee engagement saw:

13.2% improvement in net income growth

19.2% improvement in operating income

27.8% improvement in Earnings per Share

Companies with LOW employee engagement saw:

3.8% decline in net income

32.7% decline in net income growth

11.2% decline in EPS

(Source: ISR. 664,000 employees world wide, one-year study, 2006)

Business

PerformanceEmployee

Engagement

Most economic gains have been from advances in technology

As pace of technology has slowed, more focus on human capital

Human capital now one of few remaining differentiation's for competitive

advantage

• Rising costs of healthcare

• More people living longer

• And maybe staying in work

longer

• We have become obese

• More epidemics

• Increasing average age of workforce

• Fewer full-time employees

• Post baby-boom deficit of skilled

employees

• Continuing shift of healthcare

costs from state to private sector

The world has been changing

Business

Performance

Personal

Performance

&

Productivity

EngagementHealth

Modifiable risk factors such as smoking, lack of exercise, alcohol

use, poor nutrition, obesity and hypertension increase an

employer’s healthcare expenditures by 25% and are currently

estimated to account for 2.1% GDP.

It is estimated that in India productive years of life lost to

cardiovascular disease alone will almost double between 2000

and 2030.

Around 17% of males and 15% of females above the age of

15years have a Body Mass Index of above 25.

Reducing just one health risk increases an employee’s on the job

productivity by 9% and cuts absenteeism by 2%.

Major Non Communicable Diseases (NCDs) like Cardiovascular

Diseases, Diabetes, Cancer and Chronic Respiratory Diseases

contribute to 53% of all projected deaths and 44% of Disability

Adjusted Life Years in India.

Over 2005 – 2015 while deaths from infectious diseases, maternal

and perinatal conditions and nutritional deficiencies are expected to

decrease by 15%, deaths from NCDs are expected to increase by

18% and most significantly deaths from diabetes are expected to

increase by 35%.

India by 2015 is projected to lose US$237 billion in national income

on account of deaths due to CVDs, stroke and diabetes.

Organizations invest an average of US$ 290 in labor costs to generate

US$ 1,000 in revenue. By helping employees work longer and have

more productive lives, organizations can protect this asset in the face of

growing labor shortages globally.

Workers with chronic disease are cause as much as 400% more

Productivity losses than the cost of treating chronic disease.

Examples:disability, unplanned absences reduced workplace

effectiveness, increased accidents and negative impacts on work

quality or customer service.

Depression, as well as fatigue and sleeping problems – conditions or

risks that are often co-morbid with chronic diseases – have the largest

impact on productivity. As with healthcare costs, more risk factors

multiply the losses in productivity.

Reliance Industries Limited’s

CASHe Concept

Change Agent for Safety, Health & Environment

To inculcate best practices in the field of occupational health and safety, an innovative idea was introduced in 2003 by RIL medical team i.e“CASHe” (Change Agent for Safety, Health & Environment).

This innovative project with a proactive preventive approach comprising team work of Medical, Safety, Environment and technical department has established a landmark in the field of occupational Health.

Through CASHe program, Reliance experience proves that occupational health pays for itself and does not require additional investments for controlling workplace hazards

CASHe

Philosophy A model and initiative for development of OHS at manufacturing

sites of Reliance

Started with pilot project at seven RIL sites, now extending to 12

sites, Oil & Gas business & offices also.

As per our HSE policy, we at Reliance believe that

• Safety of a person overrides all production targets.

• All injuries, occupational illness as well as safety &

environment incidents are preventable.

• Reliance shall strive to be a leader in the field of

management of Occupational health, safety & environment.

To achieve these objectives we have to focus on

prevention because prevention is not only better but

cheaper than cure.

Employee Engagement

and Involvement• To bring about a positive change and continual improvement in

occupational health practices so as to prevent morbidity and

mortality due to Occupational hazards, resulting in hazard free

environment for our employees and contract workers from the

grass roots to the highest level.

• To achieve fruitful project execution, the CASHe team in

consultation with project coordinator developed a strategy which

includes

• A road map like detail action plan,

• Weekly review meetings,

• Awareness and attitude change towards OHSE through shop

floor & intranet portal trainings,

• CASHe booklets distribution,

• Monthly progress reviews,

• Medical surveillance and periodic workplace monitoring.

Result in terms of

Safety & Health

• A Resounding Success: from 2003 to till date nearly 1300

projects are completed

• A significant improvement across the sites in Awareness

and attitude towards compliance with OHSE

• Attitude of workers towards work practices,

• Use of PPEs and

• Importance of Housekeeping.

• Benefits of CASHe are outstanding. There were many

valuable projects which helped for workplace improvement

• CASHe program also helped significantly in construction &

designing of new projects.

Celebrating

ParticipationFor last 10 years intersite competition of CASHe was held at

various RIL sites and awards were distributed under various

categories :

Best CASHe Trophy -

• Major sites

• Polyester sites, E & P

Best Site Trophy

• Major site

• Polyester site, E & P

Special(Appreciation) Prizes

• Best Innovative Project

• Best Ergonomic Project

• Best Inspired Project (copied from any other plant /

site, credit should be given to the source)

PLUS National and International Recognition

In reality CASHe initiatives are not any cost expensive

instead these are the cost beneficiary.

In first implementation of CASHe program in 2003-04

earning 4,00,000 US $ against investment of 20,000

US $ and this is continuous gain till date.

Cost

50% 75% 88% 100%

Improvement

Attitude

correction

TrendingTarget

Engineering /

Investment

Awareness

Improving Workplace

Hindustan Unilever Limited’s

Vitality Index Concept

HUL

Experience

Approach:

Our Assets – Our Brands and Our People

Both Assets Need to Embody Vitality

They raised questions:

Is there a surrogate for Personal Vitality?

Can we measure something as holistic as Health with

reasonable accuracy?

Are there a few important factors to enable us to make a

Reasonable Assessment of Health?

Answer: “VITALITY INDEX”

a Surrogate for Personal Vitality

A Composite of 4 carefully chosen Critical Health Determinants

Tested and validated with a small sample within the

organisation

HUL

Experience

HUL

Experience

HUL

Experience

Tobacco

Use

Unhealthy

diets

Physical

Inactivity

Harmful

Use of

Alcohol

Cardio-

vascular

Diabetes

Cancer

Chronic

Respiratory

HUL

Experience

Covering 150000

employees

HUL

Experience

• Periodical medical evaluation

– <35 years: once in three years

– 36-45 years once in two years

– > 45 once every year or if in the red zone

• Components

– Clinical evaluations, biochemical tests

– Specific investigations like Mammography, Pap smear (>35

years)

– PSA testing (>50 years)

– CT angiography – preventive angioplasties

• Nutritional Menu and counseling

• Prevention of substance abuse e.g. smoking

• Intranet based monitoring and health education.

HUL

Experience

The question is no longer whether companies should invest in comprehensive workplace health promotion, but how best to design, implement and evaluate these programs for optimal results. Interventions don’t need to be large to make a difference.

“People want to stay with organizations that have a demonstrated ability – and an ongoing process – to retain good people. The moment individual contributors who have the respect of their peers walk out the door, others are more inclined to follow.”

Towers Perrin Global Workforce Study – Canada 2005

Step One: Gain „Demonstrable‟commitment

• To ensure there is buy-in from senior leadership, unions,

and other key stakeholders.

Step Two: Form a committee – „Shared Leadership‟

• To plan and implement a healthy workplace strategy.

Step Three: Do a needs assessment

• To determine key organizational issues, as well as the

needs and wants of employees and management.

Step Four: Analyze the results

• To prioritize issues identified by the needs assessment and problem-solve solutions.

Step Five: Develop a workplace health plan

• To have a 3 to 5 year healthy workplace strategy, and to

identify a clear vision of the intended outcome.

Step Six: Develop program action plans

• To choose evidence-based activities and assign

responsibilities/actions that logically align with the

vision/strategy.

Step Seven: Review and evaluate

• To recognize success and identify opportunities for

improvement.

Dr. T. Rajgopal, Hindustan Unilever Ltd.

Dr. R. Rajesh, Reliance Industries Ltd.

Prof. Dr. Dr. h.c. Mult. Rita Süssmuth, President of the

European Network Enterprise for Health

“Achieving Business Excellence –Health, Well-Being and Performance” –Publisher Bertelsmann Stiftung, BKK Bundesverband

“Healthy Workplaces: Journey to Excellence”- Health and Safety, Ontario, Canada, 2011

“Implementing Business Excellence – A guidebook for SMEs”-Dr. Robin Mann,Musli Mohammad, Ma Theresa A. Agustin for

Asian Productivity Organisation

European Foundation for Quality Management

“Business Excellence Framework” – Singapore Quality

Awards Organisation

William Hesketh LEVER(Port Sunlight)

“If we leave the human factor out of our

business calculations, we shall fail every

time”

Thank You