World-Class Best Practices. Examples of Key Lessons Learned and Direct Links to All Published Baldrige and Singapore Business Winners

Transcription

1 World-Class Best Practices Examples of Key Lessons Learned and Direct Links to All Published Baldrige and Singapore Business Winners

2 APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS 2013 Best Practice Knowledge Sharing Objectives 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

3 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013 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.

4 Accelerating Improvement Progression 1950s Excellence Era Focus 1950 s Perception Methodologies Slogans, Anecdotal Quotes from CEOs Process Focus 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...

5 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013 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

6 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

7 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT PROGRESSION 2013 Quality Gurus

8 Accelerating Improvement Progression 1970s Era Excellence Focus Methodologies Process Focus 1950 s Perception Slogans, CEO Anecdotal Quotes Existing 1960 s How to Improve 1970 s Continuous Improvement Waste Cost Reduction, Gurus, Focus on Cultural Change, Use of Teams Gurus, SPC, Process Variation Reduction Existing 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

9 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

10 Era Accelerating Improvement Progression 1990s 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 Accelerating Improvement Benefits Existing + New 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

11 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 TQM, Benchmark, Reengineering, Best Practices, Process Models Existing 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

12 Major Business Excellence Models Dubai MRM Are they really different? Baldrige Singapore EFQM

13 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013 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

14 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013 The Improvement Puzzle Awards Excellence Criteria Six Sigma Systems Integration Knowledge Management Lean Audits, Tests, Inspection Benchmarking TQM ISO, Accreditation Continuous Improvement P-D-C-A Best Practices Workforce Engagement 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

15 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013 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]

16 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013 SLOW BOAT to EXCELLENCE Whack-a-Mole Syndrome

17 APO:TQI ACCELERATING ORGANIZATIONAL IMPROVEMENT 2013 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?

18 APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS 2013

19 Leadership Process Organizational Performance Management Communication Effectiveness Organizational Sustainability Priority Determination & Decision Making Fiscal Accountability-Transparency Core Competencies Determination Governance Process Leadership System Succession Planning Strategy Development Strategic Action Plan Formulation Key Work Processes Determination Process-System Design-Innovation Implementation Improvement Action Process Operations System Strategic Planning System Resource Allocation and Redirection Strategic Sourcing Risk Assessment Strategic Assessment Supplier and Partner Management Strategic Resource Commitment Process Requirements Determination Workforce Engagement Management Workforce Engagement Assessment Recruit, Hire, Place, and Retain Career Progression Learning and Development Workforce Performance Review Work Environment Improvement Workforce Performance Management Workforce Management System Analysis Knowledge Sharing Total Integrated Excellence System Knowledge Management System Customer Management System Evaluation Benchmarking and Comparison Strategy Deployment Strategic Assumptions Development Customer Relationship Management Product Service Features Determination Customer Support Complaint Management Customer and Market Segmentation Customer Satisfaction Determination Knowledge Management Information Hardware and Software Design Data, Information and Knowledge Reliability Performance & Knowledge Measures Selection & Use

20 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.

21 APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS Leadership Criteria for Performance Excellence 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?

22 APO:TQI BEST PRACTICE KNOWLEDGE SHARING & ACCESS Leadership Criteria for Performance Excellence 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?

23 Best Practices Examples of Key Lessons Learned and Direct Links

24 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

25 Leadership Excellence Benefits

26 APO:TQI EXCELLENCE in LEADERSHIP 2013 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

27 Leadership Accelerating Improvement Benefits 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 Optimizes Leaders Capabilities and Preserves Value of Effective Leaders... Video 7 Winners

28 Leadership Best Practices from Business Excellence Winners FOOD PROCESSING RETAIL DEFENSE ELECTRIC Cargill Corn Milling Wing Tai Asia Retail Lockheed Martin Yokogawa Electric CONSUMER PRODUCTS Nestle Purina PACKAGING Teckwah EXPORTER Qian Hu Corporation PETROLEUM DynMcDermott Petroleum SEMICONDUCTORS MANUFACTURING HOSPITALITY MANUFACTURING Avi-Tech Electronics Baxter Conrad Hotel Honeywell FINANCIAL Caterpillar Financial RESEARCH & DEVELOPMENT VACSP AEROSPACE Boeing Aerospace BEST PRACTICES from All BUSINESS WINNERS

29 Leadership Best Practices from Public Sector Excellence Winners 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

30 Leadership Best Practices from Education Excellence Winners 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

31 APO:TQI LEADERSHIP EXCELLENCE BENEFITS 2013 Key Life Learning 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 CEOs Benefits Video

32 APO:TQI LEADERSHIP EXCELLENCE 2013 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

33 Strategic Planning Excellence

34 Strategy Best Practices from Business Excellence Winners FOOD PROCESSING RETAIL DEFENSE ELECTRIC Cargill Corn Milling Wing Tai Asia Retail Lockheed Martin Yokogawa Electric CONSUMER PRODUCTS Nestle Purina PACKAGING Teckwah EXPORTER Qian Hu Corporation PETROLEUM DynMcDermott Petroleum SEMICONDUCTORS MANUFACTURING ELECTRONICS MANUFACTURING Avi-Tech Electronics Baxter Motorola Honeywell FINANCIAL Caterpillar Financial RESEARCH & DEVELOPMENT VACSP AEROSPACE Boeing Aerospace BEST PRACTICES from All BUSINESS WINNERS

35 APO:TQI EXCELLENCE in STRATEGY 2013 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

36 Strategic Planning Competitive Excellence Benefits 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 What Line-of-Sight Strategy Alignment Looks Like

37 APO:TQI STRATEGIC PLANNING EXCELLENCE 2013 Strategy Misalignment

38 APO:TQI STRATEGIC PLANNING EXCELLENCE 2013 Partially Aligned Strategy

39 APO:TQI STRATEGIC PLANNING EXCELLENCE 2013 Line-of-Sight Strategy Alignment

40 APO:TQI EXCELLENCE in STRATEGIC PLANNING 2013 Alignment (aka, Line of Sight, Integration) What does alignment look like in a worldclass organization? [Telkom Example]

41 APO:TQI EXCELLENCE in STRATEGIC PLANNING 2013 Automated Strategic Integration Strategic objectives Strategic action plans Strategic advantages/challenges Core competencies Mission, Vision, Values Performance measures

42 APO:TQI EXCELLENCE in STRATEGIC PLANNING 2013 Key Learning Achieving organization-wide strategic alignment can be done using one sheet of paper. (link)

43 APO:TQI EXCELLENCE in STRATEGY ONE PAGE INTEGRATION 2013

44 APO:TQI STRATEGY EXCELLENCE 2013 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

45 Customer Focus Excellence

46 Customer Best Practices from Business Excellence Winners FOOD PROCESSING RETAIL DEFENSE ELECTRIC Cargill Corn Milling Wing Tai Asia Retail Lockheed Martin Yokogawa Electric CONSUMER PRODUCTS Nestle Purina PACKAGING Teckwah EXPORTER Qian Hu Corporation PETROLEUM DynMcDermott Petroleum SEMICONDUCTORS ELECTRONICS HOSPITALITY MANUFACTURING Avi-Tech Electronics Motorola Conrad Hotel Honeywell FINANCIAL Caterpillar Financial RESEARCH & DEVELOPMENT VACSP AEROSPACE Boeing Aerospace BEST PRACTICES from All BUSINESS WINNERS

47 APO:TQI EXCELLENCE in CUSTOMER FOCUS 2013 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

48 What Customers tell you is important is often not what is really important, Multiple listening methods agreeing are used to validate Customer Focus Competitive Excellence Benefits 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

49 APO:TQI CUSTOMER FOCUS EXCELLENCE 2013 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.

50 APO:TQI CUSTOMER FOCUS EXCELLENCE 2013 Customer-Driven Excellence [Competitive Excellence Core Value] If I had asked my customers what they wanted, they d have said a faster horse. Henry Ford

51 APO:TQI CUSTOMER EXCELLENCE 2013 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

52 Knowledge Management Excellence

53 Knowledge Best Practices from Business Excellence Winners FOOD PROCESSING MANUFACTURING DEFENSE ELECTRIC Cargill Corn Milling Baxter Lockheed Martin Yokogawa Electric CONSUMER PRODUCTS Nestle Purina PACKAGING Teckwah EXPORTER Qian Hu Corporation PETROLEUM DynMcDermott Petroleum SEMICONDUCTORS DAIRY ELECTRONICS MANUFACTURING Avi-Tech Electronics PEA Dairy Farm Motorola Honeywell FINANCIAL Caterpillar Financial RESEARCH & DEVELOPMENT VACSP AEROSPACE Boeing Aerospace BEST PRACTICES from All BUSINESS WINNERS

54 APO:TQI EXCELLENCE in KNOWLEDGE MANAGEMENT 2013 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

55 APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013 Knowledge Progression The plural of opinion is not knowledge. [Dr. Donald Berwick]

56 APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013 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]

57 Everything requires knowledge every decision, every process, every thought Knowledge Management Competitive Excellence Benefits 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, userfriendly info systems Knowledge shared internally and with key partners

58 APO:TQI RESULTS EXCELLENCE 2013 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

59 APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013 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

60 Workforce Engagement Excellence

61 APO:TQI EXCELLENCE in WORKFORCE FOCUS 2013 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

62 APO:TQI KNOWLEDGE MANAGEMENT EXCELLENCE 2013 Key Life Learning 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

63 Workforce Focus Competitive Excellence Benefits 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 Core Value: Having Fun

64 Workforce Best Practices from Business Excellence Winners FOOD PROCESSING RETAIL DEFENSE ELECTRIC Cargill Corn Milling Wing Tai Asia Retail Lockheed Martin Yokogawa Electric CONSUMER PRODUCTS Nestle Purina PACKAGING Teckwah EXPORTER Qian Hu Corporation PETROLEUM DynMcDermott Petroleum SEMICONDUCTORS MANUFACTURING HOSPITALITY MANUFACTURING Avi-Tech Electronics Baxter Conrad Hotel Honeywell FINANCIAL Caterpillar Financial RESEARCH & DEVELOPMENT VACSP AEROSPACE Boeing Aerospace BEST PRACTICES from All BUSINESS WINNERS

65 APO:TQI WORKFORCE EXCELLENCE 2013 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

66 Operations Focus Excellence

67 Operations Best Practices from Business Excellence Winners FOOD PROCESSING RETAIL DEFENSE ELECTRIC Cargill Corn Milling Wing Tai Asia Retail Lockheed Martin Yokogawa Electric CONSUMER PRODUCTS Nestle Purina PACKAGING Teckwah EXPORTER Qian Hu Corporation PETROLEUM DynMcDermott Petroleum SEMICONDUCTORS ELECTRONICS MANUFACTURING MANUFACTURING Avi-Tech Electronics Motorola Baxter Honeywell FINANCIAL Caterpillar Financial RESEARCH & DEVELOPMENT VACSP AEROSPACE Boeing Aerospace BEST PRACTICES from All BUSINESS WINNERS

68 APO:TQI EXCELLENCE in OPERATIONS FOCUS 2013 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

69 APO:TQI OPERATIONS FOCUS EXCELLENCE 2013 Systems Perspective [Excellence Core Value] To develop a complete mind... realize that everything connects to everything else. [Leonardo Da Vinci]

70 APO:TQI OPERATIONS FOCUS EXCELLENCE 2013 Systems Perspective [Competitive Excellence Core Value] A bad system will defeat a good person every time. [Dr. Edwards Deming]

71 Everything is a process or part of a process and Systems are integrated groups of processes Operations Focus Competitive Excellence Benefits Well-designed processes, systems Sustainability assurance Continuous process improvement Customer and supplier partnering Productivity from waste reduction Approach to achieve innovation Problem resolution and prevention

72 APO:TQI COMPETITIVE VALUE of INNOVATION 2013 Managing for Innovation Isaac Newton - Thomas Edison - Henry Ford - Wright Brothers - Steve Jobs 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

73 APO:TQI OPERATIONS EXCELLENCE 2013 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

74 Key Life Learning Over the course of the past 60 years, the improvement methodology used by most excellent organizations is: Plan Do Check Act

75 Results Excellence

76 Results & Benchmarks from Business Excellence Winners FOOD PROCESSING RETAIL DEFENSE ELECTRIC Cargill Corn Milling Wing Tai Asia Retail Lockheed Martin Yokogawa Electric CONSUMER PRODUCTS Nestle Purina PACKAGING Teckwah EXPORTER Qian Hu Corporation PETROLEUM DynMcDermott Petroleum SEMICONDUCTORS MANUFACTURING HOSPITALITY MANUFACTURING Avi-Tech Electronics Baxter Conrad Hotel Honeywell FINANCIAL Caterpillar Financial RESEARCH & DEVELOPMENT VACSP AEROSPACE Boeing Aerospace BEST PRACTICES from All BUSINESS WINNERS

77 APO:TQI RESULTS EXCELLENCE 2013 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

78 Competitive Excellence Benefits for Results Accountability to balanced and superior performance for all stakeholders 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

79 Business Excellence Consulting The Principles for Accelerating Business Excellence Improvement

80 Transforming Assessment Feedback into Performance Excellence Assessment Feedback Reports only address Phases 1 and 2 of Organizational Improvement

81 Transforming Assessment Feedback into Performance Excellence

82 Transforming Assessment Feedback into Performance Excellence

83 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

84 The Profound Difference Between Change and Improvement 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

85 Total Integrated Excellence System Total Integrated Excellence System Link

86 APO:TQI APPLICATION PREPARATION BEST PRACTICES 2013 Closing Agenda Questions Thank You Final Announcements