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World-Class Best Practices
Examples of Key Lessons Learned and Direct Links to All
Published Baldrige and Singapore Business Winners
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• The Evolution of Excellence . . . how what worked well before has
changed and what is needed to succeed today
• The value and the limitations of various business excellence
techniques and tools in accelerating organizational improvement
• The role of innovation in accelerating organizational improvement
• Direct access to actionable best practices information from
international award winning organizations
• A demonstration of an Integrated System of Best Practice Processes
for all key processes in most international and national award Criteria.
• The role of Business Excellence Consulting (RE: APO BE Consulting
course) in accelerating organizational improvement
APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS 2013
Best Practice Knowledge Sharing Objectives
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Achieving Competitive Excellence
Achieving competitive excellence requires first understanding what excellence actually is. This is challenging because the definition of excellence is always changing and becomes progressively more difficult to achieve.
If we take a look back over the decades, we can see why this is true and maybe learn something more about better approaches to pursuing organizational excellence.
APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013
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Accelerating Improvement Progression – 1950s
Era Excellence
Focus Methodologies
Process
Focus
1950’s Perception Slogans, Anecdotal
Quotes from CEOs Existing
Accelerating Improvement Benefits
Organizations would advertise and claim to have high quality
products and services even when they did not have high
quality products and services. And this worked to an extent . . .
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Perception and Reality
A wise mentor once told me:
“The only real quality is perceived quality.”
My learning is that perception is a requirement for being competitive in the marketplace but it cannot be sustained without real quality which is caused by total organizational excellence
APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013
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Accelerating Improvement Progression – 1960s
Era Excellence
Focus Methodologies
Process
Focus
1950’s Perception Slogans, CEO Anecdotal Quotes Existing
1960’s How to Improve Cost Reduction, Gurus,
Culture Change, Teams Existing
Accelerating Improvement Benefits
• Dr. Juran focus: Cultural change with ‘Managerial Breakthrough’
• Kaoru Ishikawa focus: Teamwork using ‘Quality Circles’
• Dr. Feigenbaum focus: Total Integrated Management Systems
• Dr. Deming focus: Use of Statistical Process Control
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Quality Gurus APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT PROGRESSION 2013
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Accelerating Improvement Progression – 1970s
Era Excellence
Focus Methodologies
Process
Focus
1950’s Perception Slogans, CEO Anecdotal Quotes Existing
1960’s How to Improve Waste Cost Reduction, Gurus, Focus
on Cultural Change, Use of Teams Existing
1970’s Continuous
Improvement
Gurus, SPC, Process
Variation Reduction Existing
Accelerating Improvement Benefits
• A total Japanese quality image turnaround occurred and
Quality Gurus (e.g., Dr. Deming) became exceedingly popular
• Philip Crosby published ‘Quality is Free’ – which was a
breakthrough in terms of engaging business leaders
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Accelerating Improvement Progression – 1980s Era Excellence Focus Methodologies Process Focus
1950’s Perception Slogans, CEO Anecdotal Quotes Existing
1960’s How to Improve Waste Cost Reduction, Gurus, Focus on
Cultural Change, Use of Teams Existing
1970’s Continuously Improve Gurus, SPC, Proc. Variation Reduction Existing
1980’s TOTAL
Improvement
TQM, SPC, Japan Trips, 6
Sigma, Baldrige Criteria Existing
Accelerating Improvement Benefits
Dr. Curt Reimann wrote the ‘Baldrige Criteria’ balancing
perspectives of experts and requiring validation of an effective
systems approach with superior results as a prerequisite for
winning
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Accelerating Improvement Progression – 1990s
Era Excellence
Focus Methodologies
Process
Focus 1950’s Perception Slogans, CEO Anecdotal Quotes Existing
1960’s How to Improve Cost Reduction, Gurus, Culture Change, Teams Existing
1970’s Continuously Improve Gurus, SPC, Process Variation Reduction Existing
1980’s Total Improvement TQM, SPC, Japan Trips, Six Sigma, Baldrige Existing
1990’s World-Class
Excellence
TQM, Baldrige, EFQM, Asia,
ISO, 6 Sigma, Benchmarking
Existing
+ New
Accelerating Improvement Benefits
• The Baldrige Award Criteria were rapidly adopted and/or
modified by many other countries worldwide
• A dramatic shift in focus from improving existing processes to
replacing them with new and more capable processes occurred
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Accelerating Improvement Progression – 2000’s
Era Excellence
Focus Methodologies
Process
Focus 1950’s Perception Slogans, CEO Anecdotal Quotes Existing
1960’s How to Improve Cost Reduction, Gurus, Culture Change, Teams Existing
1970’s Continuous Improve Gurus, SPC, Proc. Variation Reduction Existing
1980’s Total Improvement TQM, SPC, Japan Trips, Six Sigma, Baldrige Existing
1990’s World-Class
Excellence
Baldrige Criteria, ISO, 6 Sigma, Process Maps Existing
TQM, Benchmark, Reengineering, Best
Practices, Process Models Existing + New
2000’s
to now
TOTAL
Excellence
Lean Six Sigma, Systems of
Integrated Best Processes
Existing +
New
Accelerating Improvement Benefits
Business and Award Models based on similar Integrated
Processes and Systems that enable world-class excellence
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Major Business Excellence Models Are they really different?
Baldrige
EFQM Singapore
Dubai MRM
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Accelerating Improvement Progression
• Compliance → continuous improvement
• Gurus teach → learn from excellent organizations
• Continuous improvement → breakthrough
• Breakthrough improvement → innovation
• Innovation → ???
• Benchmarks → best practices → best processes
• Best processes → integrated best processes system
• Major awards → frameworks of common processes
25 years of assessments supports common processes and systems
APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013
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TQM
Audits, Tests,
Inspection
P-D-C-A
Awards
Excellence
Criteria
Lean
Systems Integration Knowledge
Management
ISO, Accreditation
Benchmarking
Continuous
Improvement
Best Practices
Workforce Engagement
Six Sigma
The Improvement Puzzle
APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013
It is not only knowing which improvement techniques are best . . . it is the decision logic of knowing which to use and when to use them
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Fastest Rate of Improvement
There are many valuable concepts, approaches and tools for accelerating improvement. However, one must be careful when using them to not lose perspective of the one factor that enables your organization to become the best if you are not the best now or to continue to be the best if you already are the best:
Having the fastest rate of improvement
[3M Lesson Learned]
APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013
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SLOW BOAT to EXCELLENCE
‘Whack-a-Mole’ Syndrome
APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013
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Fastest Rate of Improvement
Achieving and sustaining the fastest rate of improvement requires having an integrated system of “Best Processes”.
So, why not look at the Baldrige Framework from a different perspective?
Why not look at the Baldrige Framework from the perspective of its processes?
APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013
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APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS 2013
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Leadership Process
Leadership
System
Strategic
Planning
System
Process
Operations
System
Knowledge
Management
System
Customer
Management
System
Workforce
Management
System
Total
Integrated
Excellence
System
Recruit, Hire, Place, and Retain
Learning and Development
Career Progression
Priority Determination & Decision Making
Succession Planning
Organizational Performance Management
Governance Process
Fiscal Accountability-TransparencyCommunication Effectiveness
Workforce Performance Management
Workforce Engagement Management
Workforce Performance Review
Supplier and Partner Management
Implementation
Process Requirements Determination
Core Competencies Determination
Key Work Processes Determination
Process-System Design-Innovation
Improvement Action
Information Hardware and Software Design
Customer Satisfaction Determination
Customer and Market Segmentation
Product Service Features Determination
Knowledge Management
Knowledge Sharing
Performance & Knowledge Measures Selection & UseData, Information and Knowledge Reliability
Benchmarking and Comparison
EvaluationAnalysis
Work Environment Improvement
Workforce Engagement Assessment
Strategic Sourcing
Strategy Deployment
Resource Allocation and Redirection
Strategic Resource Commitment
Strategic Action Plan Formulation
Risk Assessment
Complaint Management
Strategic Assessment
Strategy Development
Strategic Assumptions Development
Customer Relationship Management
Organizational Sustainability
Customer Support
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Baldrige Best Process DNA
Until 1988, the understanding of the importance of
integrating processes and systems resided in only
a few organizations. General Electric was one of
the earliest to think and function using a totally
integrated systems approach.
Dr. Armand Feigenbaum was one of those
responsible for this at GE and he made it the topic
of his Doctoral Degree from MIT. In 1968, he
founded General Systems Company which
provides consulting in this methodology worldwide.
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Criteria for Performance Excellence
1 Leadership
1.1 Organizational Leadership Process _______________________________________________________________________________________________________________________________________________________
_____________
a. Senior Leadership Direction
(1) How do senior leaders set and deploy organizational values,
short- and longer-term directions, and performance expectations?
How do senior leaders include a focus on creating and balancing
value for customers and other stakeholders in their performance
expectations? How senior leaders communicate organizational
values, directions, and expectations through your leadership
system, to all employees, and to key suppliers and partners? How
do Senior Leaders ensure 2-way communication on these topics?
APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS 2013
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Criteria for Performance Excellence
1 Leadership
1.1 Organizational Leadership Process _______________________________________________________________________________________________________________________________________________________
_____________
a. Senior Leadership Direction
(1) How do senior leaders set and deploy organizational values,
short- and longer-term directions, and performance expectations?
How do senior leaders include a focus on creating and balancing
value for customers and other stakeholders in their performance
expectations? How senior leaders communicate organizational
values, directions, and expectations through your leadership
system, to all employees, and to key suppliers and partners? How
do Senior Leaders ensure 2-way communication on these topics?
APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS 2013
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Best Practices Examples of Key Lessons Learned and Direct Links
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APO:TQI BUSINESS WINNERS EXCELLENCE VIDEOS 2013
Baldrige Business Winners Videos
• Nestle Purina
• Lockheed Martin
• Cargill Corn Milling
• Medrad Medical Equipment
• DynMcDermott Petroleum
• Mesa Manufacturing
• Premier GPO
• 3M
• Merrill Lynch Financial
• Xerox
• Solectron
• Ritz Carleton
• AT&T
• Granite Rock
• Texas Instruments
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Leadership Excellence Criteria
Senior Leaders’ Roles, Governance & Citizenship
1.1 Senior Leadership __ (70 pts.)
• Vision and Values
• Legal and Ethical Behavior
• Creating a Sustainable Organization
• Workforce Communication
• Action Accomplishment
1.2 Governance & Societal Responsibilities __ (50 pts.)
• Governance System
• Senior Leaders’ Performance Evaluation
• Regulatory Compliance
• Societal Well-Being and Community Support
APO:TQI EXCELLENCE in LEADERSHIP 2013
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Sets and communicates organizational values
Leaders role model values
Keeps focus on sustainability
Organizational learning and leader development
Governance accountability and transparency
Leader performance evaluation and improvement
Exemplary legal, ethical behavior
Community support
Leadership Accelerating Improvement Benefits
Optimizes Leaders’ Capabilities and Preserves Value of Effective Leaders . . . Video 7 Winners
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FOOD PROCESSING
Cargill Corn Milling
RETAIL
Wing Tai Asia Retail
DEFENSE
Lockheed Martin
ELECTRIC
Yokogawa Electric
CONSUMER PRODUCTS
Nestle Purina
PACKAGING
Teckwah
EXPORTER
Qian Hu Corporation
PETROLEUM
DynMcDermott Petroleum
SEMICONDUCTORS
Avi-Tech Electronics
MANUFACTURING
Baxter
HOSPITALITY
Conrad Hotel
MANUFACTURING
Honeywell
FINANCIAL
Caterpillar Financial
RESEARCH & DEVELOPMENT
VACSP
AEROSPACE
Boeing Aerospace
BEST PRACTICES from All
BUSINESS WINNERS
Leadership Best Practices from Business Excellence Winners
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Urban Redevelopment
Authority
PUB Singapore Water Agency
Ministry of Manpower
Inland Revenue Authority of Singapore
Best Practices from All Public Sector Winners
City of Coral Springs
City of Irving,
Texas
Singapore Civil Defence Force
Subordinate Courts of Singapore
Leadership Best Practices from Public Sector Excellence Winners
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University of Wisconsin - Stout
Montfort College of Business
Richland College
Anglo-Chinese School
(Independent)
Best Practices from All
Education Winners
Institute of Technical Education
Hwa Chong Institution (HCI)
Montgomery School System
Raffles Institution
Leadership Best Practices from Education Excellence Winners
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Leaders must:
– Support an integrated and systematic
approach to excellence
– Understand what they support
– Convince the workforce and other
stakeholders they support and
understand – and do it every day
APO:TQI LEADERSHIP EXCELLENCE BENEFITS 2013
Key Life Learning
CEOs Benefits Video
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Leadership Best Processes Models
Leadership Processes: __
• Effective Communication
• Fiscal Accountability and Transparency
• Governance System
• Leadership Process __
• Organizational Performance Management
• Organizational Sustainability
• Priority Determination and Decision Making
APO:TQI LEADERSHIP EXCELLENCE 2013
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FOOD PROCESSING
Cargill Corn Milling
RETAIL
Wing Tai Asia Retail
DEFENSE
Lockheed Martin
ELECTRIC
Yokogawa Electric
CONSUMER PRODUCTS
Nestle Purina
PACKAGING
Teckwah
EXPORTER
Qian Hu Corporation
PETROLEUM
DynMcDermott Petroleum
SEMICONDUCTORS
Avi-Tech Electronics
MANUFACTURING
Baxter
ELECTRONICS
Motorola
MANUFACTURING
Honeywell
FINANCIAL
Caterpillar Financial
RESEARCH & DEVELOPMENT
VACSP
AEROSPACE
Boeing Aerospace
BEST PRACTICES from All
BUSINESS WINNERS
Strategy Best Practices from Business Excellence Winners
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Strategic Planning Excellence Criteria
Strategic and action planning and plan deployment
2.1 Strategy Development __ (40 pts.)
• Strategic Planning Process
• Strategy Considerations (e.g., SWOT)
• Strategic Objectives
• Strategic Challenges and Advantages
• Balancing Stakeholder Needs
2.2 Strategy Implementation __ (45 pts.)
• Action Plan Development and Implementation
• Resource Allocation
• Strategy Performance Measures and Projections
APO:TQI EXCELLENCE in STRATEGY 2013
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Balances short & long-term views
Aggressive goal setting
Work is aligned with strategy
Proactively addresses risk
Goals for market and customer needs
Stakeholder involvement
Sustainability and core competencies focus
Plan implementation and organizational agility focus
Strategic Planning Competitive Excellence Benefits
What Line-of-Sight Strategy Alignment Looks Like
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Strategy Misalignment
APO:TQI STRATEGIC PLANNING EXCELLENCE 2013
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Partially Aligned Strategy
APO:TQI STRATEGIC PLANNING EXCELLENCE 2013
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‘Line-of-Sight’ Strategy Alignment
APO:TQI STRATEGIC PLANNING EXCELLENCE 2013
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Alignment (aka, ‘Line of Sight’, Integration)
What does alignment look like in a world-class organization?
[Telkom Example]
APO:TQI EXCELLENCE in STRATEGIC PLANNING 2013
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Automated Strategic Integration
• Strategic objectives __
• Strategic action plans __
• Strategic advantages/challenges __
• Core competencies __
• Mission, Vision, Values __
• Performance measures __
APO:TQI EXCELLENCE in STRATEGIC PLANNING 2013
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Key Learning
Achieving organization-wide strategic alignment can be done using one sheet of paper.
(link)
APO:TQI EXCELLENCE in STRATEGIC PLANNING 2013
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APO:TQI EXCELLENCE in STRATEGY – ONE PAGE INTEGRATION 2013
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Strategy Best Processes Models Strategy Processes: __
• Alignment of Plans and Targets
• Annual Operating Plan Formulation
• Plan Deployment
• Plan Formulation
• Resource Allocation and Redirection
• Risk Management
• Strategic Assessment Development
• Strategic Assumptions
• Strategic Resources Commitment
• Strategic Sourcing
• Strategy Development __
APO:TQI STRATEGY EXCELLENCE 2013
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FOOD PROCESSING
Cargill Corn Milling
RETAIL
Wing Tai Asia Retail
DEFENSE
Lockheed Martin
ELECTRIC
Yokogawa Electric
CONSUMER PRODUCTS
Nestle Purina
PACKAGING
Teckwah
EXPORTER
Qian Hu Corporation
PETROLEUM
DynMcDermott Petroleum
SEMICONDUCTORS
Avi-Tech Electronics
ELECTRONICS
Motorola
HOSPITALITY
Conrad Hotel
MANUFACTURING
Honeywell
FINANCIAL
Caterpillar Financial
RESEARCH & DEVELOPMENT
VACSP
AEROSPACE
Boeing Aerospace
BEST PRACTICES from All
BUSINESS WINNERS
Customer Best Practices from Business Excellence Winners
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Customer Focus Excellence Criteria
How You Listen to the Voice of Your Customers, Build Relationships, and Identify Opportunities for Innovation
3.1 Voice of the Customer __ (40 pts.)
• Listening to Current and Potential Customers
• Satisfaction and Engagement Determination
• Satisfaction Relative to Competitors Determination
• Dissatisfaction Determination
3.2 Customer Engagement __ (45 pts.)
• Service Offerings Identification and Innovation
• Customer Support
• Customer Segmentation
• Relationship Management including Complaint Management
APO:TQI EXCELLENCE in CUSTOMER FOCUS 2013
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Deep market knowledge
Consider customer needs, requirements
Multiple forms of customer support
Customer culture integrated in workforce
Multiple customer listening methods
Effective complaint resolution
High customer engagement and satisfaction
Effective analysis and use of customer data
Customer Focus Competitive Excellence Benefits
What Customers tell you is important is often not what is really important, Multiple listening methods agreeing are used to validate
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Key Life Learning
Do not assume that what customers tell you directly and in surveys is important to them . . .
is really what is important to them.
APO:TQI CUSTOMER FOCUS EXCELLENCE 2013
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Customer-Driven Excellence [Competitive Excellence Core Value]
“If I had asked my customers what they wanted, they’d have said a faster horse”.
APO:TQI CUSTOMER FOCUS EXCELLENCE 2013
Henry Ford
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Customer Best Processes Models
Customer Processes: __
• Complaint Management
• Customer Relationship Management __
• Customer Satisfaction and Engagement Determination
• Customer Segmentation and Knowledge Determination
• Customer Support Management
• Features Determination
APO:TQI CUSTOMER EXCELLENCE 2013
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FOOD PROCESSING
Cargill Corn Milling
MANUFACTURING
Baxter
DEFENSE
Lockheed Martin
ELECTRIC
Yokogawa Electric
CONSUMER PRODUCTS
Nestle Purina
PACKAGING
Teckwah
EXPORTER
Qian Hu Corporation
PETROLEUM
DynMcDermott Petroleum
SEMICONDUCTORS
Avi-Tech Electronics
DAIRY
PEA Dairy Farm
ELECTRONICS
Motorola
MANUFACTURING
Honeywell
FINANCIAL
Caterpillar Financial
RESEARCH & DEVELOPMENT
VACSP
AEROSPACE
Boeing Aerospace
BEST PRACTICES from All
BUSINESS WINNERS
Knowledge Best Practices from Business Excellence Winners
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Measurement, Analysis and Knowledge Management Excellence Criteria
How You Select, Analyze, Manage, Improve Data and Use
it to Improve Your Organizational Performance
4.1 Performance Measurement, Analysis, Improvement_ • Performance Measures Selection, Alignment
• Comparison and Customer Data
• Best Practice Sharing
• Continuous Improvement and Innovation
4.2 Mgmt. of Information, Technology, Knowledge __
• Knowledge Management
• Data and Information Availability
• Hardware and Software Capability and Emergency Availability
APO:TQI EXCELLENCE in KNOWLEDGE MANAGEMENT 2013
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Knowledge
Progression
APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013
“The plural of opinion is not knowledge.” [Dr. Donald Berwick]
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Key Knowledge Learning
Ensure that data and information are:
– Complete
– Correct
– Converted into Knowledge
– Shared appropriately
– Immediately available
– Readily usable
[Site Visit and Tata Examples]
APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013
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Use of fact-based decision making
Selection and use of actionable data
Performance measures aligned
Wide accessibility of data and information
Analytical capabilities
Benchmarking of processes & results
Reliable, secure, user-friendly info systems
Knowledge shared internally and with key partners
Knowledge Management Competitive Excellence Benefits
Everything requires knowledge – every decision, every process, every thought
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Business Best Practice Metrics
Results Items Best Practice Metrics
7.1 Product, Service, Process & Strategy Results 7.1 Business Metrics
7.2 Customer-Focused Results 7.2 Business Metrics
7.3 Workforce-Focused Results 7.3 Business Metrics
7.4 Leadership and Governance Results 7.4 Business Metrics
7.5 Financial and Market Results 7.5 Business Metrics
APO:TQI RESULTS EXCELLENCE 2013
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Knowledge Best Processes Models
Knowledge Processes: __
• Analysis
• Benchmarking and Comparison
• Data-Information-Knowledge Reliability
• Evaluation
• Information Hardware and Software Design
• Knowledge Creation
• Knowledge Management __
• Knowledge Sharing
• Performance & Knowledge Metrics Selection/Use __
APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013
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Workforce Focus Excellence Criteria How an Organization Engages, Develops, and Manages Its
Workforce and Builds an Effective Workforce Environment
5.1 Workforce Environment __ (40 pts.)
• Workforce capability and capacity
• New members recruitment, hiring, retraining
• Work accomplishment management
• Workforce members capability and capacity change preparation
• Workforce Policies and Benefits
5.2 Workforce Engagement __ (45 pts.)
• Workforce performance engagement
• High-performance, open communication, engagement culture
• Assessment of workforce engagement
• Workforce and leader development
APO:TQI EXCELLENCE in WORKFORCE FOCUS 2013
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• Employees do not start every morning wanting to be unhappy
• Determine the causes of their dissatisfaction and take ownership
• Work with employees to fix the causes of dissatisfaction while also balancing the needs of all stakeholders
APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013
Key Life Learning
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Workforce satisfaction and
engagement
Reward for high performance
Training, education and development
Individual and organizational learning linked
Workforce capability, capacity
management
Safe, secure and supportive work
climate
Workforce Focus Competitive Excellence Benefits
Core Value: Having Fun
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FOOD PROCESSING
Cargill Corn Milling
RETAIL
Wing Tai Asia Retail
DEFENSE
Lockheed Martin
ELECTRIC
Yokogawa Electric
CONSUMER PRODUCTS
Nestle Purina
PACKAGING
Teckwah
EXPORTER
Qian Hu Corporation
PETROLEUM
DynMcDermott Petroleum
SEMICONDUCTORS
Avi-Tech Electronics
MANUFACTURING
Baxter
HOSPITALITY
Conrad Hotel
MANUFACTURING
Honeywell
FINANCIAL
Caterpillar Financial
RESEARCH & DEVELOPMENT
VACSP
AEROSPACE
Boeing Aerospace
BEST PRACTICES from All
BUSINESS WINNERS
Workforce Best Practices from Business Excellence Winners
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Workforce Best Processes Models
Workforce Processes: __
• Career Progression
• Employee Performance Management
• Employee Performance Review
• Learning and Development
• Recruitment
• Succession Planning
• Workplace Environment Improvement
• Workforce Management and Engagement __
• Workforce Engagement/Satisfaction Determination
APO:TQI WORKFORCE EXCELLENCE 2013
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FOOD PROCESSING
Cargill Corn Milling
RETAIL
Wing Tai Asia Retail
DEFENSE
Lockheed Martin
ELECTRIC
Yokogawa Electric
CONSUMER PRODUCTS
Nestle Purina
PACKAGING
Teckwah
EXPORTER
Qian Hu Corporation
PETROLEUM
DynMcDermott Petroleum
SEMICONDUCTORS
Avi-Tech Electronics
ELECTRONICS
Motorola
MANUFACTURING
Baxter
MANUFACTURING
Honeywell
FINANCIAL
Caterpillar Financial
RESEARCH & DEVELOPMENT
VACSP
AEROSPACE
Boeing Aerospace
BEST PRACTICES from All
BUSINESS WINNERS
Operations Best Practices from Business Excellence Winners
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Operations Focus Excellence
How you design, manage, improve your key systems and processes to
achieve organizational success, sustainability, emergency readiness
6.1 Work Systems __ (45 pts.)
• Systems Design and Innovation
• Systems Performance Requirements Determination
• Systems Implementation
• Systems Cost Control
6.2 Work Processes __ (40 pts.)
• Process Design and Innovation
• Process Performance Requirements Determination
• Process Implementation
• Supply Chain Management
• Process Improvement
APO:TQI EXCELLENCE in OPERATIONS FOCUS 2013
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Systems Perspective [Excellence Core Value]
“To develop a complete mind . . . realize that everything
connects to everything else.”
[Leonardo Da Vinci]
APO:TQI OPERATIONS FOCUS EXCELLENCE 2013
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Systems Perspective [Competitive Excellence Core Value]
“A bad system will defeat a good person every time.”
[Dr. Edwards Deming]
APO:TQI OPERATIONS FOCUS EXCELLENCE 2013
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Well-designed processes, systems
Sustainability assurance Continuous process
improvement
Customer and supplier partnering
Productivity from waste reduction
Problem resolution and prevention
Approach to achieve innovation
Operations Focus Competitive Excellence Benefits
Everything is a process or part of a process and Systems are integrated groups of processes
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Managing for Innovation
If innovation is defined as new and not adopted then it appears:
• Innovation is a good business strategy if it succeeds
• Innovation is unknown (to the public) when it fails
• Most attempts to innovate fail
• Most people are not innovators at a global level
• Most innovations did not come from an environment conducive to innovation . . . but some do [3M Example]
• Personal perseverance and visionary leadership are often the key drivers of successful innovation
• Thomas Edison: “Genius = 1% inspiration + 99% perspiration”
• Paul: “Innovation = 1% inspiration + 99% Innovation Process
APO:TQI COMPETITIVE VALUE of INNOVATION 2013
Isaac Newton - Thomas Edison - Henry Ford - Wright Brothers - Steve Jobs
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Operations Best Processes Models
Operations (Process Management) Processes: __
1. Core Competencies Determination
2. Implementation Process
3. Improvement Action
4. Process Control and Sustainability
5. Process Customization and Acceptance
6. Process Design, Innovation, Development and Delivery __
7. Process Requirements Determination
8. Process Simplification
9. Process Training
10. Processes (Key) Determination
11. Supplier and Partner Management
APO:TQI OPERATIONS EXCELLENCE 2013
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Key Life Learning
Over the course of the past 60 years, the improvement methodology used by most excellent organizations is:
Plan – Do – Check – Act
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Results Excellence
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FOOD PROCESSING
Cargill Corn Milling
RETAIL
Wing Tai Asia Retail
DEFENSE
Lockheed Martin
ELECTRIC
Yokogawa Electric
CONSUMER PRODUCTS
Nestle Purina
PACKAGING
Teckwah
EXPORTER
Qian Hu Corporation
PETROLEUM
DynMcDermott Petroleum
SEMICONDUCTORS
Avi-Tech Electronics
MANUFACTURING
Baxter
HOSPITALITY
Conrad Hotel
MANUFACTURING
Honeywell
FINANCIAL
Caterpillar Financial
RESEARCH & DEVELOPMENT
VACSP
AEROSPACE
Boeing Aerospace
BEST PRACTICES from All
BUSINESS WINNERS
Results & Benchmarks from Business Excellence Winners
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Business Best Practice Metrics
Results Items Best Practice Metrics
7.1 Product, Service, Process & Strategy Results 7.1 Business Metrics
7.2 Customer-Focused Results 7.2 Business Metrics
7.3 Workforce-Focused Results 7.3 Business Metrics
7.4 Leadership and Governance Results 7.4 Business Metrics
7.5 Financial and Market Results 7.5 Business Metrics
APO:TQI RESULTS EXCELLENCE 2013
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Excellent process, product, service, strategic, workforce, customer,
financial, governance, societal results
Improvement trends for key measures
Results integrated to mission, goals, strategy, stakeholders, processes
Use comparisons/ benchmarks
Results are actionable to improve performance and sustainability
Competitive Excellence Benefits for Results
Accountability to balanced and superior performance for all stakeholders
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Business Excellence Consulting
“The Principles for Accelerating
Business Excellence Improvement”
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Transforming Assessment Feedback into Performance Excellence
Assessment Feedback Reports only address Phases 1 and 2 of
Organizational Improvement
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Transforming Assessment Feedback into Performance Excellence
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Transforming Assessment Feedback into Performance Excellence
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Managing Change
• Create the environment
• Set the expectations and inspire the minds
• Control the pace of improvement and the limits
of authority
• Gain acceptance by communicating, listening,
and actively participating
• Most importantly, understand the profound
difference between change and improvement
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Change and improvement
are not the same thing
Not all changes are improvement
But, all improvements involve change
Every process or system is designed to achieve
results
Performance is a property of a process or
system
Better results require a better process or system
. . . they therefore require change
The best process/system yields the most improvement
Best performance requires best
processes/systems
The core best processes / systems are common for
all organizations
The Profound Difference Between Change and Improvement
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Total Integrated Excellence System
Total Integrated Excellence System Link
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Closing Agenda
• Questions
• Thank You
• Final Announcements
APO:TQI APPLICATION PREPARATION BEST PRACTICES 2013