Views on 2030Dr. Robin Mann,DirectorCentre for Organisational Excellence ResearchNew ZealandMarch 2012
Introduction1. Mega Challenges2. Professional Benchmarking3. Technology and Benchmarking4. Conclusion
In 2009/11 a comprehensive study wasundertaken on business excellence in 5 countriesIndia, Japan,Singapore, Taiwan& Thailand CEO Interviews Section 3 - Business Excellence Profile 3.1 Which statement most accurately describes your knowledge of business excellence? If the survey is being completed by a team substitute “I” for “we”. Tick the one that applies A Low understanding - My company has undertaken an assessment against a business excellence framework but I (we) had little involvement in the process. B Basic understanding - My company has undertaken an assessment against a business excellence framework and I was (we were) involved in the process. C Good understanding - My company has undertaken an assessment against a business excellence framework and I was (we were) involved in the process. I have (we have) attended a training course on business excellence. D Very good understanding - My company has undertaken an assessment against a business excellence framework and I was (we were) involved in the process. I am (we are) trained business excellence assessors. Discussion groups E Other – please specify: Survey at workshops
The study researched the value andimpact of business excellence in Asia
What are the main current and emerging challenges facing companies in your country?• Meeting requirements of multiple standards (country, regional and international) adds to our costs base. In many cases these standards could be integrated/reduced. (Japan)• Demand reduction is facing Japan through a shrinking population and changing demographics (Japan)• World financial crisis (Singapore)• Cultural and social integration/harmony/race/nationalities/mobile workforce/aging population (Singapore)• Diseases (Swine flu/epidemics) (India)• Fraud/Money laundering (India)• Cost of energy (Thailand)• Lack of skilled workers (Thailand)• Government Policy and trade tax (particularly with China) (Taiwan)• Environmental issues (Green house effect, CO2 eliminated, climate, green products, recycling)) (Taiwan)
Will BE help companies to meet these challenges? If not, how does the BE model or use of the model need to change?Business excellence is appropriate for addressing all challenges as it helps companies to identifywhat are the main issues/problems they are facing so that they can then be addressed. The modelsprovide an objective means to identify key challenges. (Japan)Business excellence helps companies to address macro challenges at themicro level. Therefore Category 2, Strategic Planning helps to address thefinancial crisis, Category 4, People, helps to address cultural and social issues,Category 5, Processes, helps to address legal requirements and internationalstandards, and Category 1.3, Leadership and social responsibility, helps toaddress environmental issues. (Singapore)Yes, business excellence helps companies to address these challenges via prompting them toaddress such issues in their strategy. Business excellence is all encompassing (India)The challenges are addressed through business excellence as it provides a strategic framework foraddressing them. Through its emphasis on benchmarking it encourages best practices to be foundto help companies to progress (Thailand)
Which business excellence support services that are not currently provided (or which need to enhanced) would be of tremendous benefit to companies?• Not a well structured and coordinated benchmarking/best practice sharing activity. Requires a central body - at the moment it is just left to individual companies (Singapore)• Require best practice examples that are both business excellence category and industry specific (Japan)• Benchmarking data and services are required (India)• We want a website for knowledge sharing (India)• National benchmarking (Thailand)• Need to have a forum for sharing business excellence knowledge/ lessons learned/ best practices from all award winners (Taiwan)
The 2009/2010 APO study showed that a significantly greater proportion of awardwinners used the tools shaded in yellow than non-award winners. These tools includedKnowledge Management and Benchmarking – both essential for effective best practicelearning and implementation. Measurement,Leadership Strategy Customer Workforce Operations Analysis & Planning Focus focus Focus Knowledge ManagementCorporate Social Enterprise Risk Service & Employee Supply Chain Knowledge Responsibility Management & Product Engagement Management Management Programme Business Innovation Survey Continuity Essential for best practice Management learning & implementation Corporate Customer Employee Lean Governance Balanced Relationship Performance Benchmarking Progressing Management Scorecard Management Management Customer Quality Business Leadership Strategic Suggestion Excellence Self Alliances Satisfaction Management Development Survey Scheme Systems Assessment Programme Action Plan Service Training & Improvement Performance Succession ( Resources, Measurement Planning Standards Development Teams Financial, HR) InformationManagement By SWOT Analysis Customer Employee Plan-Do-Check-Action CollectionWalking About Segmentation Induction (PDCA) Cycle & Analysis (MBWA) Strategy Process Communication Starting Vision, Plan Market Recruitment & Mapping & (Objectives/ Research Selection Platforms for Mission and Documentation 8 goals) Staff Values & Non-Staff
return of >$250,000 for 20% of respondentsreturn of<$10,000for 28% ofrespondents
Why do some projects fail?• 25% had received no training in benchmarking• 30% do not use a benchmarking methodology• 30% do not develop a project plan e.g. poorly defined aims, stakeholders not identified etc.• 35% do not undertake a cost/benefit analysis
There needs to be a greater awareness and understanding of benchmarkingBenchmarks showing the performance levels of otherorganisations do not help other organisations tounderstand what practices or innovations they need toimplement to improve.
Best practices. There is no point inidentifying “best practices” if they are not going to be implemented 12
There are many types of benchmarking services that can be provided Assessment Facilitated Benchmarking obtaining ideas and best practices - benchmarking surveys surveys (not facilitated) Awareness of benchmarking Best practice BenchmarkingImprovement seminars benchmarking certification 1-day training – 2 days Desk-top Partnering Benchmarking Best practice Best practice sharing visits Benchmarking workshops conferences Consortium Benchmarking Benchmarking - studies clubs websites
Recommendation One –There is a need for Professional Benchmarking- Certified training providers- Certified trainees- Institute for benchmarking professionals
Recommendation Two –We need to review how we can use technologymore effectively for benchmarking purposesYears to reach 50 million users: 38 years 13 years 4 years 9 months to reach 100 million..
Informatics – how information is managed – is the No1 technology issue that needs to be solved“The quantity of information now available isunprecedented in human history, and the rate of informationgeneration continues to grow exponentially. Yet, the sheervolume of information is in danger of creating more noisethan value, and as a result limiting its effective use.Innovations in how information is organized, mined andprocessed hold the key to filtering out the noise and usingthe growing wealth of global information to addressemerging challenges” Global Agenda Council on Emerging Technologies, Global Agenda Summit 2011 in Abu Dhabi
Benchmarking websites can play a key part in sortingthrough the noise and providing reliable and relevantbenchmark data and best practices to organisations.
The BPIR.com has databases rich with information that can be searched by business excellence model criteria
However, users are now moving away from static information and demanding instant answers through networking
Websites today and in the future need to facilitate bestpractice sharing – e.g. Enable organisations to upload their best practices as a text file, photo or video
The world is getting smaller... Faster communication... Faster travel... People are becoming more global than nationalMore and more benchmarking will be undertaken at a national level. Global competitiveness index, Quality of Life Index, Control of Corruption, Political Stability, Government Effectiveness, Customer Service in the Public Sector, Ease of Doing Business, Registering Property, Obtaining Construction Permits, Paying Taxes.
Through benchmarking… Rank Xerox took 8 years to become world class in the 1980’s Boeing Aerospace Support took 3 years to become world class 2000 to 2003
Benchmarking can play a key part in addressing today’s and tomorrow’s great challenges poverty, pollution, global warming, terrorism, diseases, aging population, fraud…..But…We need to benchmarking effectively
Final message from Dr Robert Camp – the father of benchmarkingBest practice pursuit through benchmarking is:• A strategic strength when practiced• A fatal weakness if not pursued• A critical tool for how you run your organization