STEPPING ON THE SPRINGBOARD TO SUSTAINABLE ENTERPRISE EXCELLENCE

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1 STEPPING ON THE SPRINGBOARD TO SUSTAINABLE ENTERPRISE EXCELLENCE PROFESSORS RICK EDGEMAN & JACOB ESKILDSEN INTERDISCIPLINARY CENTER FOR ORGANIZATIONAL ARCHITECTURE AARHUS UNIVERSITY, DENMARK SUSTAINABLE ECONOMIC DEVELOPMENT & BUSINESS EXCELLENCE THROUGH QUALITY, ENVIRONMENT & SAFETY OCTOBER 2012 COLOMBO, SRI LANKA

2 Well-Known Excellence Models: EFQM & BALDRIGE

3 ASSESSMENT EFQM EXCELLENCE MODELS: BALDRIGE 9 AREAS ASSESSED W.R.T. 33 CRITERIA 7 AREAS ASSESSED W.R.T. 17 CRITERIA

4 Well-Known Excellence Models: EFQM & BALDRIGE SEE Definition & Basic Business Model

5 SEE: SUSTAINABLE ENTERPRISE EXCELLENCE Sustainable Enterprise Excellence is a consequence of balancing both the competing and complementary interests of key stakeholder segments, including society and the natural environment, to increase the likelihood of superior and sustainable competitive positioning and hence long-term enterprise success. This is accomplished through an integrated approach to organizational design and function emphasising innovation, operational, customer-related, human capital, financial, marketplace, societal, and environmental performance. CR 2 O: CONTINUOUSLY RELEVANT & RESPONSIBLE ORGANIZATIONS

6 ORGANIZATIONAL DESIGN & AGILITY: Strategy & Arrangement of Human Capital & Infrastructure Oriented toward a Common Aim ORGANIZATIONAL DESIGN & AGILITY: Strategy & Arrangement of Human Capital & Infrastructure Oriented toward a Common Aim CUSTOMER SEGMENTS: Groups of People and Enterprises with Similar Needs or Requirements with which the Enterprise would like to Engage SOCIETAL SUSTAINABILITY ECOLOGICAL SUSTAINABILITY COST STRUCTURE: Cost Elements Required of the Enterprise in its Production, Service Delivery, Procurement, Organizational, Marketing & Sales Processes OFFERINGS: Anything Offered for Exchange by the Enterprise to its Stakeholder Segments for Economic Gain INNOVATION FOR SUSTAINABILITY (SOCIO-ECOLOGICAL INNOVATION) SEE BUSINESS MODEL SUSTAINABLE INNOVATION FINANCIAL SUSTAINABILITY REVENUE STREAMS: Integrated Strategies & Actions that Transform Inputs into Financial, Social, or Ecological Capital with Economic Value VALUE CHAIN: Integrated Strategies & Actions that Transform Inputs into Financial, Social, or Ecological Capital with Economic Value

7 Well-Known Excellence Models: EFQM & BALDRIGE SEE Definition & Basic Business Model Complex & Simplified SEE Models

8 FORESIGHT RESULTS PEOPLE, PARTNERSHIPS & TECHNOLOGY COMPLEX SEE MODEL 20 Areas Evaluated On 56 Criteria PROCESS UNGC TEN PRINCIPLES STRATEGY & Sustainability Innovation Change Strategy Organization and Design Triple Bottom Line Integration GOVERNANCE IMPLEMENTATION Needs Identification and Implementation Human Capital Competence-Building Innovation for Sustainability Sustainable Innovation Proactive Knowledge Building & Transfer Change Diagnosis Design & Change Mgt. and Implementation UNGC Compliance and Promotion Human Capital Partnerships and Supply Chain Design & Change Implementation Innovation Sustainability: Financial Sustainability: Societal Sustainability: Environmental & EXECUTION REFINEMENT

9 The Ten Principles of the United Nations Global Compact (UNGC) PRINCIPLE HR 1 HR 2 L 3 L 4 L 5 L 6 DESCRIPTION: Businesses Should: Support and respect the protection of internationally proclaimed human rights. Make sure that they are not complicit in human rights abuses. Uphold freedom of association and effective recognition of the right to collective bargaining. Uphold the elimination of all forms of forced and compulsory labor. Uphold the effective abolition of child labor. Uphold the elimination of discrimination with respect to employment and occupation. E 7 E 8 E 9 AC 10 Support a precautionary approach to environmental challenges. Undertake initiatives to promote greater environmental responsibility. Encourage development and diffusion of environmentally friendly technologies. Work against corruption in all its forms, including extortion and bribery. HR: Human Resources L: Labor E: Environment AC: Anti-Corruption

10 UNGC TEN PRINCIPLES PEOPLE, PARTNERSHIPS & TECHNOLOGY FORESIGHT Simplified SEE Model 16 Areas Evaluated On 20 Criteria PROCESS IMPLEMENTATION STRATEGY & SUSTAINABILITY ORGANIZATIONAL DESIGN & AGILITY INNOVATION & INTELLIGENCE CHANGE STRATEGY & RESPONSIBILITY GOVERNANCE INNOVATION FOR SUSTAINABILITY SUSTAINABLE INNOVATION RELEVANCE OF INNOVATION AND SUSTAINABILITY PROCESSES HUMAN CAPITAL ORGANIZATION FOR INNOVATION & SUSTAINABILITY HUMAN CAPITAL NEED FOR COMPETENCE BUILDING NEED FOR DESIGN & CHANGE DIAGNOSIS & IMPLEMENTATION RESULTS SUSTAINABILITY HUMAN CAPITAL SUPPLY CHAIN & PARTNERSHIPS / UNGC FINANCIAL INNOVATION REFINEMENT KNOWLEDGE AND INTELLIGENGE GAP IDENTIFICATION & EXECUTION

11 Well-Known Excellence Models: EFQM & BALDRIGE SEE Definition & Basic Business Model SPRINGBOARD to SEE Complex & Simplified SEE Models

12 UNGC/ SIMILAR PRINCIPLES FORESIGHT ORGANIZATIONAL DESIGN INNOVATION & CHANGE PEOPLE, PARTNERSHIPS & TECHNOLOGY HUMAN CAPITAL INNOVATION FINANCIAL RELEVANCE OF & CAPACITY FOR GENERAL & SUSTAINABLE INNOVATION INNOVATION FOR SUSTAINABILITY & RELEVANCE SPRINGBOARD TO SEE STRATEGY & PROCESS IMPLEMENTATION 6 NEWS COMPASSES + 6 SWOT PLOTS AGILITY & CHANGE INTELLIGENCE / KNOWLEDGE TRANSPARENCY, RESPONSIBILITY & SUSTAINABILITY GOVERNANCE CONTEXT SPECIFIC HUMAN CAPITAL COMPETENCE (BUILDING) & AGILITY DESIGN & CHANGE DIAGNOSIS, READINESS & IMPLEMENTATION: IMPROVEMENT, INNOVATION & SUSTAINABILITY RESULTS & SUSTAINABILITY REFINEMENT & EXECUTION

13 Well-Known Excellence Models: EFQM & BALDRIGE SPRINGBOARD to SEE Assessment: THE NEWS REPORT SEE Definition & Basic Business Model SPRINGBOARD to SEE Complex & Simplified SEE Models

14 GENERIC SPRINGBOARD NEWS COMPASS N Greater Maturity = Larger Area GENERIC NEWS COMPASS W E S

15 STRENGTHS: Context specific characteristics of the enterprise with respect to the assessed area that provide an advantage or that position it well for innovation, financial, societal, or environmental improvement. INTERNALITIES WEAKNESSES: Characteristics of the enterprise with respect to the assessed area that place it at a relative disadvantage or that position it poorly for improvement. Sustainable Enterprise Excellence SWOT Plot EXTERNALITIES OPPORTUNITIES: Context specific externalities that provide opportunities that can contribute to enhanced innovation, financial, societal, or environmental performance. THREATS: Context specific externalities that pose challenges to the enterprise with respect to innovation, financial, societal, or environmental performance.

16 Springboard to SEE NEWS Compass Point Elements NEWS COMPASS DIRECTION N E W S N E W S N E W S N E W S N E W S N E W S COMPASS DIMENSION STRATEGY & GOVERNANCE Transparency, Responsibility and Sustainability Intelligence & Knowledge Building & Acquisition Organizational Design: Human Capital Organizational Design: Innovation & Change PROCESS IMPLEMENTATION & EXECUTION Relevance of & Capacity for Specific & Sustainable Innovation Design & Change Diagnosis, Readiness & Implementation Context Specific Human Capital Competence Building & Agility Innovation for Sustainability & Relevance FINANCIAL PERFORMANCE RESULTS Sustainability Investment & Return Supply / Value Chain & Other Performance Improvement Human Capital Investment & Return R&D: Return on & Reinvestment in Innovation SUSTAINABILITY PERFORMANCE RESULTS Financial Societal Human Capital / Other Environmental INNOVATION PERFORMANCE RESULTS Innovation for Sustainability Other Context Specific Innovation Business Model Innovation Sustainable Innovation HUMAN CAPITAL PERFORMANCE RESULTS Innovation Capacity & Performance Context Specific & General Competence & Agility Strategic & Tactical Continuous Improvement Sustainability Intelligence & Performance

17 FORESIGHT STRATEGY & GOVERNANCE PROCESS IMPLEMENTATION & EXECUTION FINANCIAL SUSTAINABILITY INNOVATION HUMAN CAPITAL

18 Strategy & Governance Innovation Performance Financial Performance Sustainability Performance Human Capital Performance Process Implementation & Execution

19 STRATEGY & GOVERANCE PROCESS IMPLEMENTATION & EXECUTION FINANCIAL SUSTAINABILITY INNOVATION HUMAN CAPITAL

20 INTEGRATED & ALIGNED SEE SWOT PLOT NARRATIVE STRATEGY & GOVERANCE PROCESS IMPLEMENTATION & EXECUTION FINANCIAL SUSTAINABILITY INNOVATION HUMAN CAPITAL

21 + Themes such as sustainability, innovation, and organizational design the connection of these to assessment areas should be strongly integrated into NEWS Compass Values and SWOT Plot Narratives Springboard to SEE NEWS Report

22 Well-Known Excellence Models: EFQM & BALDRIGE SPRINGBOARD to SEE Assessment: THE NEWS REPORT THANK YOU SEE Definition & Basic Business Model SPRINGBOARD to SEE Model Complex & Simplified SEE Models