EFQM Excellence Model and Fundamental Concepts of Excellence. Taras Kalyta Ukrainian Association for Quality

Transcription

1 EFQM Excellence Model and Fundamental Concepts of Excellence Taras Kalyta Ukrainian Association for Quality 1

2 Thank Lithuania for strong and constant support of Ukraine in different period of our history! It is important for us!

3 EFQM Excellence Model Model of "ideal" organization and methods, which allow to compare real organizations with this "ideal" Based on experience and vision of the most successful organizations within Europe and outside Focused on organizations seeking to continuous improvement and not just to compliance with certain standards Can be used for: Self-assessment and self-improvement of organizations activity; External assessment and recognition of the organization s levels (through competitions and certification schemes); General understanding of modern approaches, trends and fitches in management 3

4 EFQM Model and System Management Standards STANDARDS (ISO 9001, 14001, 50001, etc.) Description of good status of organization (achievable) Requirements EFQM MODEL Description of ideal organization (non-achievable) Good practices 2 point scale (confirm or not) 1000 point scale Output of audit: non-conformities Output of assessment: strength and areas for improvement Describe part of management system (quality, environment, etc.) More focus on hard factors and approaches Describe holistic management system More balanced: hard and soft factors, approaches and results 4

5 My Experience with the Model Assessor of the EFQM Excellence Award for 13 years: Work within high-class international teams Assessment of leading companies from Spain, Switzerland, Turkey, Hungary, Greece, Slovakia, Russia, Ukraine Consulting, training, diagnostic about the Model in Ukraine, Azerbaijan, Belorussia, Georgia, Kazakhstan, Russia; including 4 finalists and prize-winners of the EFQM Excellence Award: Stavropol State Agrarian University Clinic Medicina Vodokanal of Sankt-Petersburg (water supply and water disposal) Lukoil-Permnefteorgsistem (oil refinery) 5

6 EFQM Excellence Model Three integrated components of the Model: The Fundamental Concepts of Excellence Structure of criteria and criteria parts RADAR logic 6

7 Self-Assessment Using the Model Regular analysis of organization s activity to identify strengths and areas for improvement Could be conducted without the Model but Model provide possibility for analysis through comparing with ideal ; deep, demanding and holistic analysis Team, cross-functional work important task is cross-learning and development of common view and understanding 7

8 External assessment - opportunities for Lithuanian organizations National Quality Award International Tournament of the Central and Eastern European Countries EFQM certification system Levels of Excellence EFQM Excellence Award 8

9 Fundamental Concepts of Excellence Excellence is: Adding Value for Customers Creating a Sustainable Future Developing Organisational Capability Harnessing Creativity & Innovation Leadership: Vision, Inspiration & Integrity Managing with Agility Succeeding through the Talent of People Sustaining Outstanding Results (without priorities) 9

10 Basic Idea of All Concepts Each division at all levels laboratory for research, seeking and development of best ways to fulfill work in its area of responsibility; key part of its work experiments in this area Ever unsuccessful experiment is important it creates new knowledge about process; collecting, analysis and using of such knowledge are important tasks of all people For people such experiments are most important and interesting part of their job, issue of inspiring and drive, chance to use own talents Documents, approved be top management: it is not detailed instruction for employees to follow, it is framework for creative seeking of best way of working 10

11 Leadership: Vision, Inspiration & Integrity Excellent organizations have leaders who shape the future and make it happen, acting as role models for its values and ethics, inspiring people for achievements. 11

12 Leadership: Vision, Inspiration & Integrity Management through vision: What organization the leaders dream to see in 10 years? What will it differ from the present one? Common understanding of the proposed vision for the future by all employees Inspiring vision, causing the employees willing to work to achieve it Changes that create value for all stakeholders - not only for shareholders Vision that can be specified for different units/processes/functions 12

13 Leadership: Vision, Inspiration & Integrity Leader (employee) understands and shares the vision. What can he/she do to achieve it? The right to set targets for improvement Opportunity to experiment on and look for the best ways to do the work (including the right to mistake) The power to make changes to existing working procedures (including to review documents in which they are described) Opportunity to use the resources to improve their operations (financial resources, infrastructure, working time, etc.) 13

14 Leadership: Vision, Inspiration & Integrity Management through inspiration: What leaders do if they wish to implement certain changes within the organization To issue an order for mandatory transition to the new scheme of work OR Explain the purpose of changes to people To empower people to change their work To provide people with resources to change their work To provide people with knowledge they need to change the work To motivate people for searching and implementation new ways of working Which of these options can inspire employees? 14

15 Leadership: Vision, Inspiration & Integrity Management through integrity: Leaders should adhere to the same rules and values, compliance with which they expect from employees Common values and principles that determine behavior of employees ("what is good and what is bad") are defined Leaders consciously committed to these values and principles Leaders demonstrate expected behavior by personal example ("do as I do") Leaders act transparent, giving employees the opportunity to assess compliance with the values Leaders enable employees to act in accordance with values, encourage and support such behavior 15

16 Harnessing Creativity & Innovation Excellent organizations generate new values and achieve success through continual improvement and systematic innovation by harnessing the creativity of their stakeholders 16

17 Harnessing Creativity & Innovation Improvement at all levels: Each employee has two functions: execution of processes and process improvement (including innovation) Each unit is the improvement team and every manager is the team leader Improvement activity consists of two components: active search for improvement opportunities (not just spontaneous ideas) implementation of found opportunities The main focus on improvements at lower levels: what we can do by ourselves (by own powers and resources) - own PDCA cycle Improvement acceleration system (their sound bringing to upper levels) 17

18 Harnessing Creativity & Innovation Systematic approach to creativity and innovation Creative abilities of staff and other stakeholders - business resource of organization that is actively managed and used Ability to direct creative potential at achieving the priority goals of the organization Ensuring the emergence of creative ideas when it is necessary, where it is necessary and on the topic, which is necessary ; the use of a structured approach for these purposes At any improvements - the aspiration not to repeat the standard solutions, and to create own unique solution, which would be the hallmark and competitive advantage In many cases the task is to generate and analyze new knowledge about the process, a deeper understanding of the process 18

19 Harnessing Creativity & Innovation Improvement process Problems or possibilities for improvement Deliberated opportunities for improvement Voiced opportunities for improvement Registered opportunities for improvement Discussed opportunities for improvement Opportunities for improvement by which solution is made Opportunities for improvement by which solution is implemented Opportunities for improvement by which solution is standardized and its sustainability is ensured The process should be reliable, fast, focused on the positive and innovative solutions; appropriate procedures should be determined 19

20 Succeeding through the Talent of People Excellent organizations value their people and create a culture of empowerment for the achievement of both organizational and personal goals 20

21 Succeeding through the Talent of People Talent Management: Each employee has a talent (what he/she can do especially well) Management tasks: To understand talents of each employee To find ways to apply the employee s talents for the benefit of the organization To create conditions that allow employees to use their talents in the work To motivate employees to use their talents in the work (including the ability to be proud of them) Learn how to assess and develop talent Attitude not as to a subordinators but as a partner 21

22 Succeeding through the Talent of People Conditions for use the employees talents: Maximum empowerment Employee participation in development of rules and regulations of their work Comprehensive system of personnel development covering all of their competence Possibility of employees self-organization (self-initiation of projects, team building, information exchange, etc.) Attention to personal goals, objectives, dreams of employees Individual approach to each employee (e.g., individualized system of motivation) 22

23 Managing with Agility Excellent organizations are widely recognised for their ability to identify and respond effectively and efficiently to opportunities and threats. 23

24 Managing with Agility Ability to identify opportunities and threats in the environment quickly and to respond in a timely manner by revising: strategy budget processes and documents that they are regulated by organizational structure and the documents that it is regulated by performance indicators system of remuneration, including bonuses, etc. 24

25 Managing with Agility Flexible resources Ability to provide changes with resources (adapt existing, attract new): staff competence; contracts with suppliers and partners; technology, including IT; equipment and other infrastructure; information and knowledge. 25

26 Managing with Agility The role of processes Processes exist in order to be reviewed: to define the current point when reviewing the order of the work modeling of different options for changes to plan and assess changes from the standpoint of crossfunctional process, not separate units to standardize the revised order of work This requires the ability to review quickly and flexibly the documented description of processes (as a way to quick change the order of work) 26

27 Adding Value for Customers Excellent organizations consistently add value for customers by understanding, anticipating and fulfilling needs, expectation and opportunities. 27

28 Adding Value for Customers Not just providing of products and services for customers, but: Creating unique value for customers Solving the problems of consumers Realization of customers dreams New experience for customers Optimization of customers processes For this purpose it is important to achieve a deep understanding of customers and their processes best achieved through joint activities 28

29 Adding Value for Customers Work with customer values: study and understand customer values consider customer values at designing of products and services communicate customer values when promoting products ensure the creation of customer values in the process of production and services track the values received by customers 29

30 Adding Value for Customers Understanding the customers: To analyze not own process, but the process of customer To analyze not customer perception of what we used to do, but its problems, needs and experience For example, to understand: What is really important for customers? How customers use our products or services? What are the problems and difficulties encountered by customers while using a product or service? How they are solved? How customers make a decision on the use of products and services? How they choose suppliers? 30

31 Adding Value for Customers Invention of new value for customers: Based on the understanding of dreams, problems and values of customers It is expedient to make it together with customers (let's dream together) The whole range of products, services, actions and approaches aimed at creating value for customers The creative process focused on the generation of new knowledge and solutions Creation of unique offers that are significantly different from offered by competitors 31

32 Developing Organisational Capability Excellent organizations enhance their capabilities by effectively managing change within and beyond the organizational boundaries. 32

33 Developing Organisational Capability Understanding capabilities of organization: What can organization provide from the point of: technical characteristics of products; level of variability of important product characteristics; timing of orders execution; costs of orders execution; flexibility in fulfillment of individual requirements etc. combinations of abovementioned capabilities How well the organization understands these capabilities, set and achieve goals for their improvement 33

34 Developing Organisational Capability Common value chain Value chain for all stakeholders, including both the organization and its partners: suppliers organization - dealers schools - universities - organization training institutions organization - charities addressees of charitable contribution The overall goal is the ability to achieve maximum results at the outcome of the chain: quality, time, flexibility, cost, variability - summary The best variant to achieve a common goal is the teamwork to improve the chain as a whole Benefits can be divided for all participants (if they are transparent, honest and trustworth) 34

35 Developing Organisational Capability Value chain improvement Identification and management of cross-processes Joint analysis of the chain (costs, variations, defects, etc.) Common improvement projects and joint project teams Joint activity of management on the analysis of information and decision-making Common plans and programs Optimization of the work, financial and material flows assignment Free exchange of knowledge and their joint use is the basis for such a partnership 35

36 Creating a Sustainable Future Excellent organizations have a positive impact on the world around them by enhancing their performance whilst simultaneously advancing the economic, environmental and social conditions within the communities they touch 36

37 Creating a Sustainable Future Sustainable future of the organization Factors affecting the long-term success of the organization (for decades): Sufficient number of potential customers who are interested in these products and services Sufficient number of different categories of resources, the ability to access them Sufficient number of potential employees with necessary competencies and values Sufficient number of potential suppliers and partners who can meet requirements of organization A society where the organization can sustainably operate and develop 37

38 Creating a Sustainable Future Identifying of factors of the future (risks and opportunities) that may affect the sustainability of the organization - for example, demographic and social situation in the region, availability of raw materials and suppliers, the industry's image in society Creative search for opportunities to influence these factors: Do not harm Do better This is not charity due to surplus of resources, this is a part of the organization management system: part of the general organization strategy; part of the organization's processes; part of the organizational competencies and capabilities 38

39 Creating a Sustainable Future Sustainable future of society is a condition for sustainable future of the organization Understanding of the world (industry, city, region, country, etc.) in which the organization wants to exist Characteristics of the world from the viewpoint of: social (including - demographic) environmental economic Consideration of the effects on the world s future in the planning and execution of all organization activities (not just special initiatives) 39

40 Creating a Sustainable Future Ways of the organization's impact on the sustainable future of society Overall business culture and business style (honesty, ethics, transparency) Personnel management, development and motivation Interaction with government authorities Product design and development Selection of suppliers and procurement Advertising, interaction with customers Environmental impact 40

41 Sustaining Outstanding Results Excellent organizations achieve sustained outstanding results that meet both the short and long term needs of all their stakeholders, within the context of their operating environment. 41

42 Sustaining Outstanding Results Whether the organization is able to measure what is important for it: Mission and vision implementation Strategy implementation Effectiveness of key processes and approaches Availability of key competencies Competitive advantage and the factors that they provide Satisfaction and loyalty of key stakeholders 42

43 Sustaining Outstanding Results Development of a measurable indicators tree based on the mission, vision and strategy A tree, which includes all measured parameters in the organization: Processes monitoring indicators Financial indicators Information on stakeholder satisfaction, Common reporting and performance analysis system Each manager has a set of indicators, the analysis, understanding and management of which he is responsible for For key indicators - the use of external comparisons for their deeper understanding 43

44 Sustaining Outstanding Results What are indicators used for? Target setting and planning of improvement activities (any target is the start of improvements) Additional tool for analysis and decision-making based on the analysis Internal and external benchmarking, defining the best practice Identification of risks and risk management Establishing priorities Reporting to stakeholders Very carefully, and not as a main goal - to determine salaries, premiums, bonuses, etc. 44

45 RADAR Logic RESULTS How does organization identify results, which it wish to achieve ASSESSMENT AND REFINEMENT How does organization ensure that possibilities for improvement of approaches are identified and implemented DEPLOYMENT How does organization ensure that approaches are realized as they have been designed APPROACHES How does organization design approaches, it has to follow to achieve results 45

46 Thank you for attention! Taras Kalyta Ukrainian Association for Quality