GEMS: A NEW IDEA FOR QUALITY IMPROVEMENT

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1 GEMS: A NEW IDEA FOR QUALITY IMPROVEMENT Prof. Gopal K Kanji Kanji Quality Culture Ltd., Sheffield Technology Parks, Arundel Street, Sheffield, S1 2NS, England, UK; tel: , quality@gopal-kanji.com Keywords Global Excellence Measurement system (GEMS), Systems approach, Stakeholders, Critical success factors, Structure Equation Modelling,. Abstract Traditional Business Excellence approach in quality has been regarded increasingly as inward looking, inefficient and unable to drive appropriate actions for improvement in organisations, thus being of limited value for their stakeholders. The architecture of Business Excellence deals with a set of systems, stakeholders, critical success factors and structural equation modelling to create a holistic, reliable and comprehensive measurement model. Such architecture can be found in Global Excellence Measurement System (GEMS) The main advantage of Global Excellence Measurement System (GEMS) is in providing integration and alignment among the various business systems behaviours and measures. Such integration comes from two main features: its foundation on the systems behaviour which incorporates critical success factors of all the stakeholders, and the use of a sound structural equation modelling (SEM) approach. In this paper the author will first of all demonstrate the Architecture of Business Systems Behaviour of GEMS and then, with the help of empirical evidence from the public and service sectors, will display the integration and alignment among the various organisational behaviour systems and measures of quality for the improvement of the organisation. 1

2 GEMS: A NEW IDEA FOR QUALITY IMPROVEMENT Prof. Gopal K Kanji Kanji Quality Culture Ltd. Sheffield Technology Parks, Arundel Street, Sheffield, S1 2N S quality@gopal-kanji.com

3 Traditional Business Excellence (BE) BE has been regarded as: -inward looking -inefficient -limited value for their stakeholders Modern BE must deal with: - Organisational Behaviour Systems -Stakeholders Needs -Critical Success Factors - Holistic Measurement Model

4 Business Systems Behaviour Such an approach can be found in Global Excellence Measurement System (GEMS) It is Holistic and based on critical success factors for the Stakeholders It is reliable & Valid and uses Business Systems Behaviour It suggests improvement strategy and improvement opportunities

5 Global Excellence Measurement Systems (GEMS) GEMS Critical success Factors Stakeholders Systems Approach Structure Equation Modelling

6 Why Systems Approach? -Organisations behave as organisms -Made of highly interdependent factors -They must work together to achieve the organisations overall aim -Deals with scientific methods i.e. Hypothesize, Design a Control experiment, Collect data & Analyze

7 For the Managers This Means: 1) Define the organisation as business systems 2) Establish the Systems Objectives 3) Identify Systems Behaviour 4) Develop Measurement Systems 5) Measure the active Systems Behaviour and systems performance (business excellence)

8 Description of a typical healthcare delivery system Funding HEALTHCARE BOARD Social policy issues Values and guidelines Hospital Management Board / Group Environmental constraints goals CD1 CD2 CD3 procedures Business resources Plan Clinical Divisions policies and targets Patient with need met or health condition improved Patient with unmet need Technical skill Knowledge Interpersonal interaction Support Directorates Key support processes and key management processes Healthier communities System Assessment and Review

9 Fig.3: Stakeholders for health care System in a Hospital SUPPLIERS Equipment Pharmaceutical Universities INTERNAL Administrators Doctors Nurses Physician Paramedics Other Staff HEALTH CARE STAKEHOLDER CUSTOMERS Patient Families Communities Tax Payers Insurance Co. GPs & others REGULATORS Government Health Authorities Local Authorities Accreditation Org. Financial Institute Etc.

10 GEMS Structural Diagram GEMS allows performance to be compared longitudinally over time and also against other competitors. It has a single number (Index) that reflects the organization s s performance Critical Successes factors for both KBEM & KBS are given in the GEMS structural diagram

11 GEMS Structural Diagram

12 Structural Equation Modelling (SEM) Is used to test the causal relationships that form GEMS It combines the measurement model and the structural equation approach to provide indices & statistical analysis. It evaluates performance of the system to deliver meaningful results in terms of causal relationships and structure

13 Stakeholders Assessments (Pre) % Staff Patients Accreditation Bodies Index Government Authorities

14 Stakeholders Assessments (Post) % Pre Intervention Post Intervention Staff Patients Accreditation Bodies Stakeholders Government Authorities

15 Overall Performance % Pre Intervention Post Intervention Index

16 Conclusions Provides a set of criteria for assessing the organisation s s strengths and weaknesses to focus on improvement Suggests resource allocation and strategic planning to prosper even in a turbulent environment Gives a reliable and solid basis for performance measurement Indicates Managerial Accountability