Business Excellence has been characterised by a nine generic criteria which are applicable to any organization regardless of size. By using these criteria an organization can evaluate its strengths and weaknesses and identify opportunities for improvement. The criteria are related as shown in the graphic.
Business performance cannot only be measured in financial terms. All business
impacts people, customers and society in different ways and it is the result of
such performance that is key to its excellence. Business performance is the product of
five enablers, Leadership, People, Policy and Strategy, Partnerships & Resources and Processes. For organization to demonstrate excellence there has to be a direct relationship between the results achieved and the enablers that caused them, hence the connections between all the criteria. The figures shown in the model relate to the percentages allocated for scoring purposes when assessing organizations for the European Quality Award.
How leaders develop and facilitate the
achievement of the mission and vision, develop values required for long term
success. How leaders implement these via appropriate actions and
behaviours, and are personally
involved in ensuring that the organization's management system is developed and
implemented. Evidence is needed of how leaders:
- visibly demonstrate their commitment to excellence and continuous improvement
- support improvement and involvement by providing appropriate resources and assistance
- are involved with customers, suppliers and other external
- recognise and appreciated people's efforts and achievements.
2. Policy and Strategy
How the organization implements its mission and
vision via clear stakeholder focused strategy, supported by relevant policies,
plans, objectives, targets and processes. Evidence is needed of how policy and strategy are:
- based on information which is relevant and comprehensive
- communicated and implemented
- regularly updated and improved.
How the organization manages, develops and
releases the knowledge and full potential of its people at an individual, team
based and organization-wide level. How it plans these activities in order to
support its policy and strategy and the effective operation of its processes. Evidence is needed of how:
- people resources are planned and improved
- people capabilities are sustained and developed
- people and teams agree targets and continuously review performance
- people are involved, empowered and recognised
- people and the organization have an effective dialogue
- people are cared for
Partnerships & Resources
How the organization plans and manages its external
partnerships and internal resources in order to support its policy and strategy
and the effective operation of its processes. Evidence is needed of:
- how financial resources are managed
- how information resources are managed
- how supplier relationships and materials are managed
- how buildings, equipment and other assets are managed
- how technology is managed.
How the organization designs, manages and improves its
processes in order to support its policy and strategy and fully satisfy, and
generate increasing value for, its customers and other stakeholders. Evidence is needed of how
processes key to the success of the organization:
- are identified
- are systematically managed
- are reviewed and targets set for improvement
- are improved using innovation and creativity
- are changed and the benefits evaluated.
These criteria are concerned with what an
organization has achieved and is achieving. An organization uses a number of key parameters to measure its performance. For each of these, excellence is assessed relative to the
organization's business/service environment and circumstances, based on information which sets out:-
- the organization's actual performance
- the organization's own targets and, wherever possible,
- the performance of competitors
- the performance of 'best in class' organizations.
For each of the results criteria, evidence is required of the extent to which they cover the range of the
organization's activities and of the relative importance of the parameters presented.
What the organization is achieving in relation
to its external customers. Results and the relevance of the measures used should be presented to cover:
- the customers' perception of the organization's products, services and customer relationships (75%)
- additional measures relating to the satisfaction of the
organization's customers (25%).
What the organization is achieving in relation to
its people. Results and the relevance of the measures used should be presented to cover:
- people's perception of the organization (75%)
- additional measures relating to people satisfaction (25%).
What the organization is achieving in relation to
local, national and international society as appropriate. Results and the relevance of the measures used should be presented to cover:
- society's perception of the organisation (25%)
- additional indicators of the organisation's impact on society (75%).
Key Performance Results
What the organisation is achieving in relation to its planned
performance. Results and the relevance of the measures used should be presented to cover:
- financial measures of the organization's performance (50%)
- additional measures of the organization's performance (50%)
In addition to the nine criteria, there are eight principles characterise excellent organizations. These provide a vision which organizations should strive to realize through continual improvement.
1. Results orientation
Excellence is dependent upon balancing and
satisfying the needs of all relevant stakeholders (this includes the people
employed, customers, suppliers and society in general as well as those with
financial interests in the organization).
2. Customer focus
The customer is the final arbiter of product and service
quality. Customer loyalty, retention and market share gain are best optimized
through a clear focus on the needs of current and potential customers..
3. Leadership and consistency of purpose
The behaviour of an organization's leaders
creates a clarity and unity of purpose within the organization and an
environment in which the organization and its people can excel.
Management by Processes & Facts
Organizations perform more effectively when all
inter-related activities are understood and systematically managed and decisions
concerning current operations and planned improvements are made using reliable
information that includes stakeholder perceptions.
People Development & Involvement
The full potential of the organization's people is
best released through shared values and a culture of trust and empowerment which
encourages the involvement of everyone.
Learning, Innovation & Improvement
Organizational performance is maximized when it
is based on the management and sharing of knowledge within a culture of
continuous learning, innovation and improvement.
An organization works more effectively when it
has mutually beneficial relationships, built on trust, sharing of knowledge and
integration, with its partners
8. Public responsibility
The long term interest of the organization and its people
are best served by adopting an ethical approach and exceeding the expectations
and regulations of the community at large.